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BRIEF August 12, 2020

External Review of IFC/ MIGA Environmental & Social (E&S) Accountability, including CAO’s Role and Effectiveness

The External Review of IFC’s/MIGA’s Environmental and Social Accountability including CAO’s Role and Effectiveness (the External Review) was requested by the CODE on behalf of the Boards of IFC and MIGA. Terms of Reference were issued in June 2019.

An independent group of six experts in private sector development, multilateral institutions, and environmental and social sustainability recently conducted and completed an External Review (the Review Team). The Review Team was headed by Mr. Peter Woicke. A draft report was provided in May 2020 to IFC, MIGA and CAO for their comments. The final report on the ‘External Review of IFC’s / MIGA’s E&S Accountability including CAO’s Role and Effectiveness: Report and Recommendations’ was submitted on June 9, 2020 (Final Review Report).

As established in the Board’s approved Terms of Reference, the objectives of the External Review were to evaluate, provide high-level recommendations, taking into consideration costs and benefits to all stakeholders, and enable the IFC and MIGA Boards to make decisions with respect to:

i.               The optimal governance arrangement for the CAO in light of the purpose of each of its functions (Dispute Resolution, Compliance and Advisory);

ii.              (a) The role and effectiveness of CAO, including its Operational Guidelines (2013), against the requirements of its mandate and TOR, and Operational Guidelines (2013); (b) IFC and MIGA’s responsiveness to concerns regarding adverse E&S impacts of the business activities of their clients; (c) Impacts that current CAO processes have on stakeholders, including communities, clients and governments, as well as on IFC and MIGA operations, policies, and risk profile; and (d) uptake of learning from CAO’s work at the level of IFC and MIGA’s policies, standards and practices;

iii.            Any needed calibrations to CAO’s complaint’s handling processes or operational guidelines to fulfil its role and improve overall effectiveness and efficiency;

iv.             Any needed calibrations to IFC/MIGA’s complaint’s response including ways in which IFC and MIGA respond to CAO processes as well as to other complaints or concerns not related to CAO; and;

v.              Any need to develop complaint/grievance mechanisms through which project-affected people and communities may raise concerns directly with IFC/MIGA Management.

The External Review Report was prepared by the Review Team in order to facilitate and inform the IFC and MIGA Boards’ consideration of the IFC’s and MIGA’s E&S accountability framework, including CAO’s role and effectiveness.

IFC, MIGA and CAO and their respective Boards have not adopted, approved or endorsed any part of the External Review Report or its recommendations and consideration of the Report and its recommendations is continuing.

Neither the External Review Report nor its recommendations create any duty or obligation of IFC, MIGA, its Boards of Directors, or CAO, and no part of the Report may be used, copied or reproduced for any purpose, including in any administrative or judicial proceeding, without prior written consent.

The Board is publishing the External Review Report and therefore invites interested parties to submit their comments and observations about this report by September 12.  The information collected during this public comment period will inform the Board’s deliberations. Comments can be provided on the following Comments page and will be treated as confidential. By accepting to provide comments, parties acknowledge and accept the foregoing.