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Home > Archives for Press release

Press release

Complaints on controversial motorway project in Bosnia and Herzegovina trigger EBRD inquiry as forced expropriations begin in South Mostar

Local residents who stand to be affected by the section of the Corridor Vc planned between Mostar and Pocitelj in Bosnia and Herzegovina (BiH) submitted a complaint to the EBRD in January 2020. In response, the Bank’s Independent Project Accountability Mechanism (IPAM) acknowledges in its report that the selection of the route might have excluded and marginalised local communities and plans further investigation [1].

Building the motorway in the valley would in particular impact the property and livelihoods of Serb war returnees, who have rebuilt their lives in the south Mostar area in the last two decades. Vujadin Berberović, president of the Serb returnee association in Mostar, described in conversation with Bankwatch [2] how after the war he started to rebuild his family’s burnt down vineyard: “Five years ago, all this was interrupted with the first information that the potential route of Corridor Vc could pass through this beautiful valley.” Berberović, who recently passed away, was deeply involved in the fight to get the community’s voices heard among decision-makers [3].

IPAM’s report stressed that “particularly relevant to the investigation would be to identify if the Client took the necessary actions to ensure that Serb returnees were not disadvantaged in the resettlement process, were fully informed and aware of their rights and were able to benefit from the resettlement opportunities and benefits”. According to the Bank’s safeguards policy, ethnic minorities should have been treated as vulnerable groups that require additional protection and consultations. 

In February 2021 the Bank approved its latest contribution to the Corridor Vc project – a EUR 60 million loan. The decision was made despite the ongoing assessment of the complaints, which contain serious allegations about the way the bank and JP Autoceste, the Federation of BiH’s road company, have been sidelining the local communities, in breach of the EBRD’s standards.

A recent Bankwatch report [4] described how company representatives have trespassed on affected people’s property, and organised public presentations only after the final route had been selected – a far cry from the meaningful public participation required by EBRD policy. In an earlier assessment published by the EBRD’s accountability mechanism, both the Bank and JP Autoceste commented that the route selection was a done deal and further public consultations would be unlikely to reverse the decision [5].

The selection of the current route, moved from an uninhabited ridge into the valley south of Mostar, where it would run through villages and fertile agricultural land, was not properly consulted with the local communities, nor justified.

The EBRD’s Accountability Mechanism’s report states that it is not clear ”if the final design is ready nor whether studies and surveys have been initiated, however it is relevant to say that due to limitations faced during the appraisal, these studies need to be undertaken prior to start of construction”.

Amna Popovac, a representative of local complainants said: “Recent developments on the ground show that the EBRD and JP Autoceste are not waiting for the investigation to take its course, but moving ahead to inflict irreparable harm on local communities by starting expropriation procedures. We are convinced the IPAM will eventually recommend that the EBRD and JP Autoceste should listen to the local communities and reconsider the alternative route.”

Fidanka Bacheva-McGrath, Bankwatch EBRD policy officer said, “IPAM has already identified that a number of studies on the risk and adverse impacts to the health and safety of the affected communities had to be undertaken prior to start of construction, however, they were missing. In addition IPAM found that the project may have caused, or may be likely to cause, direct or indirect and material harm to local people. In view of this, the EBRD should suspend project implementation until IPAM concludes its investigation and the additional studies are done and consulted with affected people.”

 

The Bankwatch report is available here: Connecting or Dividing? The South Mostar section of Corridor Vc in Bosnia and Herzegovina

 

For more information

Fidanka McGrath

EBRD policy officer, CEE Bankwatch Network

Email: fidankab@bankwatch.org

Mobile: +359 87 730 3097

 

Amna Popovac

Representative of local complainants

Email: amna.popovac@gmail.com

Mobile: +38761130717

 

Notes for editors

[1] Compliance Assessment Report from the EBRD’s Independent Project Accountability Mechanism, 27 April 2021 https://www.ebrd.com/work-with-us/projects/ipam/2020/06.html 

[2] Video “At a crossroads – Corridor Vc motorway project”
https://www.youtube.com/watch?v=cpwxjlA7Cn8&ab_channel=Bankwatch 

[3] Vujadin Berberović, local activist who campaigned against Corridor Vc in Bosnia and Herzegovina, passes away https://bankwatch.org/press_release/vujadin-berberovic 

[4] Connecting or Dividing? The South Mostar section of Corridor Vc in Bosnia and Herzegovina https://bankwatch.org/publication/connecting-or-dividing-the-south-mostar-section-of-corridor-vc-in-bosnia-and-herzegovina 

[5] Assessment Report from the EBRD’s Independent Project Accountability Mechanism, January 2021 https://www.ebrd.com/work-with-us/projects/ipam/2020/06.html 

 

Nature ignored in European recovery funding, say campaign groups

Member States plan pitiful amounts of spending from the €672 billion Recovery and Resilience Facility (RRF) to protect and preserve nature, in spite of EU requirements and the generally poor state of biodiversity across the continent, say civil society groups ahead of Thursday’s meeting of European environmental ministers.  

Although the EU has planned an ambitious Biodiversity Strategy for 2030 and set a target of 37 per cent spending within the RRF on climate and nature protection measures, Member States are completely neglecting such projects in their draft recovery plans, the groups outlined in a position paper sent to ministers before the 18 March Council.   

For example, Bulgaria’s green pillar, the part of the plan outlining proposals for environmental and climate spending, foresees just 0.72 percent for biodiversity which is even less than in a previous draft. The Polish plan also calls for the adoption of a special act on anti-drought investments in Poland, which contains new rules that would actually undermine the protection of Poland’s biodiversity and water resources. This lack of attention to biodiversity protection is all the more alarming given that the European Environmental Agency estimates 81 per cent of habitats in Europe are in a poor state.  

While Member States have until 30 April to finalise their recovery plans, many have yet to open the plans to public consultation and publish key information about what types of programmes they plan to fund. Thursday’s Environment Council is an opportunity for ministers to take a leading role in the further development of these plans in order to make them a powerful tool for catalysing the transformation of EU economies.  

Daniel Thomson, EU policy officer for biodiversity with CEE Bankwatch Network, said ‘After decades of underinvestment and neglect, biodiversity and nature conservation must be the priority in building back better. Yet Member States are completely overlooking the potential of EU recovery funds. Many draft plans do not include a single measure to address the failing health of nature,  despite the golden opportunity to finally start investing in improvements.’  

Gabriel Schwaderer, Director of EuroNatur, said ‘The National Recovery and Resilience Plans are expected to deliver on environmental objectives, yet we wonder how the EC has assessed them and what role the EU Taxonomy plays and will play in the future. We need a reliable tool with transparent criteria – especially to avoid greenwashing.’  

For more information contact 
Daniel Thomson EU policy officer for biodiversity CEE Bankwatch Network: daniel.thomson@bankwatch.org  
Anja Arning Head of Communications EuroNatur: anja.arning@euronatur.org

EU bank failing on transparency and openness, warns civil society

The analysis ¹ comes as part of the first commenting window that closed today during the ongoing review of the Bank’s new Transparency Policy.² It follows an EU court ruling³  confirming that NGOs must be able to hold the Bank accountable for its decisions. As the financial arm of the EU, the EIB is required to guarantee the right to access information held by public bodies and to conduct its work as openly as possible while ensuring civil society participation. 

The groups’ findings match the rankings of the 2020 Aid Transparency Index, an annual measure of transparency for the world’s major development agencies, which placed the EIB 28 of 47 institutions with a grade of only 58 of 100 points.

The analysis shows the new draft Transparency Policy fails to address serious shortcomings in the EIB’s current policy and practice.

The EIB provides almost no information about its environmental and social due diligence before approving a loan, denying the public the right to know on what basis it made such a financing decision. Even after a loan decision is made, many documents of public interest are kept confidential by the EIB instead of just being published.   

The new policy is particularly lax when it comes to requiring Bank clients to provide information. In particular, the EIB uses various intermediaries – commercial banks, state development banks and private equity funds – to help reach smaller clients than it could otherwise attract. 

Such lending has doubled in the last 15 years, in 2020 accounting for almost 40 per cent of the Bank’s operations. In spite of this volume, the Bank requires no information for this type of financing to be made available, prompting the European Parliament to call for this review of the transparency policy.

In light of these, the groups are urging the EIB to amend the draft Transparency Policy before final approval at the end of 2021, pending the adoption from its 27 EU Member State shareholders.

Anna Roggenbuck, policy officer with CEE Bankwatch Network, said, “It is outrageous that the EIB still sticks out among other development institutions when it comes to transparency. The Bank should start publishing environmental and social documents in advance of project approval in order to give civil society, especially people impacted by its projects, an opportunity to express their opinions directly to the Bank. Transparency is a two-way street, meaning the Bank should be ready to listen and engage in a dialogue. So far the EIB is not up to the task.”

Xavier Sol, Director with Counter Balance, said, “We urge EIB management and shareholders to raise the bar on transparency. The draft Transparency Policy proposed by the Bank is problematic, so prompt action is needed to make sure that the EIB becomes a more accountable and democratic institution. It is high time that the ever increasing macroeconomic responsibilities of the EIB are matched by an offensive on transparency. If not, decisions impacting people and regions will continue behind closed doors”

Sebastian Bechtel, ClientEarth lawyer, said, “One of the EU’s top courts has just confirmed that NGOs must be able to hold the EIB accountable where it fails to comply with environmental law. But to do so, NGOs must have access to the right information and the EIB must proactively inform civil society about the underlying rationale of its decisions. Unfortunately, the EIB’s draft transparency policy falls short here – suggesting a possible failure to recognise both the gravity of this judgment and the vital role of civil society in fulfilling the European Green Deal.”

 

For more information contact:

Anna Roggenbuck

Policy officer, CEE Bankwatch Network

annar@bankwatch.org

+48-509970424

 

Xavier Sol

Director at Counter Balance

xavier.sol@counter-balance.org

+32 473 223 893

 

Notes 

[1] The analysis is submitted as a joint contribution to the EIB transparency review: LINK

[2] https://consult.eib.org/consultation/tpconsultation-2020-en/ 

[3] CaseT-9/19 ClientEarth v EIB 

How are CEE governments planning to use EU funds for the transition of coal regions? New Bankwatch report gives journalists tools to monitor the process

CEE Bankwatch Network has been actively involved in the development of the TJTP process since it was announced in January 2020 and is today publishing an analysis of six plans in central and eastern European countries: Bulgaria, the Czech Republic, Estonia, Hungary, Romania and Slovakia. 

For each country, the formal process of preparing the TJTP is outlined. Then, Bankwatch experts in each country analyse the functioning of the working groups tasked with drawing up the TJTPs, pointing out how they might improve their processes; the quality of participation, including how much the voices of locals are included, is assessed; timelines, sometimes too rushed to generate a meaningful process, are analysed too. 

At the end, the paper includes recommendations for national authorities and the European Commission, based on the three biggest threats to the quality of the TJTPs: poor participation, a disproportionate influence of the industry, and a narrow focus on job creation (instead of a more holistic approach focused on the redevelopment of the region). 

Each of the six countries has its own section detailing the formal process, followed by dedicated sections for each topic related to implementation of the TJTP design process. This document can be a useful tool for any journalist who wants to monitor from the start how regions and governments are planning to use the new EU money coming into coal regions. Questions persist about the management of the process, the overwhelming influence of corporations, or the superficial manner in which locals are asked for input.

“We’ve been keeping an eye on just transition plans from the start in all the countries in the region and, now that we’re fully in the planning process, we’re starting to get worried,” Alexandru Mustață, Bankwatch Just Transition coordinator, says. “The process is rushed and some governments are pushing specific interests without taking into account all voices from the regions.”

“This means there is a risk that countries will only submit a list of projects which can spend public money quickly – instead of using this process to create solid strategies for the redevelopment of these communities, with buy-in from locals and which would serve as guidance for decades to come.”

For more information, contact: 

Alexandru Mustață, Just Transition coordinator

Email: alexandru.mustata AT bankwatch.org 

Tel.: +40726770808   

Vujadin Berberović, local activist who campaigned against Corridor Vc in Bosnia and Herzegovina, passes away

In October 2020, a Bankwatch fact-finding mission monitoring the social and environmental impacts of the section of the Corridor Vc project south of Mostar met with Mr Berberović to learn about the ramifications the project could have for his own property in the village of Ortiješ and to hear about the concerns of other community members.

The news about Mr Berberović’s passing on Sunday, February 7, came as a shock to us, and we wish to send heartfelt condolences to his family and friends. We stand with you in this difficult time, and will continue to do our utmost to amplify your concerns about the Corridor Vc project to decision-makers.

Mr Berberović fled the area during the 1990s war, but rebuilt his life in the village of Ortijes after returning with his family, caring for his vineyard, following in the footsteps of his ancestors.

When we met him, Mr Berberović was visibly distraught by the prospects of his precious vineyard being destroyed by the currently planned route of the motorway project, as well as by his experience fighting to make his and the community’s voices heard among decision-makers. His perseverance is an inspiration.

We are grateful to have had the opportunity to speak to Mr Berberović himself and thankful for his help, enabling us to meet with other community members concerned about the project. Their testimonies informed the report Bankwatch released just last week.

Bankwatch continues to stand with the community to demand justice for Mr Berberović and all local residents affected by the project.

Read also:

Connecting or Dividing? The South Mostar section of Corridor Vc in Bosnia and Herzegovina 


Bankwatch je duboko potresen saznanjem o smrti Vujadina Berberovića, predsjednika Udruženja povratnika Srba u Mostar, Bosna i Hercegovina, koji je odigrao ključnu ulogu u mobilizaciji svoje zajednice da bi osigurao da i lokalni stanovnici budu ravnopravni sudionici u razvoju projekta koridora Vc.

U oktobru 2020. Bankwatch delegacija koja je radila na utvrđivanju činjenica o socijalnim i okolišnim uticajima dionice projekta Koridor Vc južno od Mostara, sastala se s g. Berberovićem kako bi prikupila više informacija o posljedicama koje bi projekt mogao imati za njegovo vlastito imanje u selu Ortiješ i razgovarala sa sa ostalim članovima zajednice o njihovim strahovima.

Vijest o smrti gospodina Berberovića u nedjelju, 7. februara, bila je za nas šok i želimo uputiti iskreno saučešće njegovoj obitelji i prijateljima. Stojimo uz vas u ovom teškom vremenu i nastavit ćemo činiti sve što možemo kako bismo vaše brige i strahove vezane za projekt Koridor Vc približili donositeljima odluka.

Gospodin Berberović je morao napustiti svoj dom tokom rata devedesetih, ali je obnovio svoj život u mjestu Ortiješ nakon povratka 1998. s obitelji, brinući se o svom vinogradu, slijedeći korake svojih predaka.

Kad smo ga upoznali, g. Berberović je bio vidno zabrinut za budućnost svog dragocjenog vinograda, kojem je prijetilo uništenje trenutno planiranom trasom projekta autoceste. Ali on je već imao iskustvo u borbi da se njegovi i glasovi zajednice čuju među donositeljima odluka. Njegova ustrajnost je nadahnuće.

Zahvalni smo što smo imali priliku lično razgovarati sa gospodinom Berberovićem i zahvalni na njegovoj pomoći, omogućujući nam sastanak s ostalim članovima zajednice koji su zabrinuti zbog projekta. Njihova svjedočenja dopunila su izvještaj koji je Bankwatch objavio prošle sedmice.

Bankwatch i dalje stoji uz zajednicu tražeći pravdu za g. Berberovića i sve lokalne stanovnike pogođene projektom.

Secrecy surrounding €672 billion in EU recovery funding jeopardises building back better

A survey of how the spending plans [1] are being prepared in 20 countries finds that almost no one is opening the plans to public scrutiny, nor are these being subjected to strategic environmental assessments, both of which are required by EU law. 

Treaties like the Aarhus Convention on Access to Information, Public Participation in Decision-Making and Access to Justice in Environmental Matters [2], to which each EU Member States is a party, require public participation for any plan, programme or policy related to the environment, including financial and budgetary plans, such as the recovery and resilience plans. 

Last week the European Commission issued guidance on the preparation of the plans that recommended Member States consult civil society over the investment list, which are due in April. In a follow-up letter [3] to Commission Vice-Presidents Timmermans and Dombrovskis, the groups outlined how hastily brushing aside these legal requirements will imperil the EU’s own goal of becoming a net-zero emitter of greenhouse gases by 2050.

 

 

 

Read more about the survey here.

 

Raphael Hanoteaux, EU funds policy officer at CEE Bankwatch Network, said, “Recovery cannot come without resilience, so member states must plan to build back better. Investments in small-scale renewables, energy efficiency and a socially-just transition away from carbon heavy-industries are the types of community-focused projects that can move Europe forward. The Commission should press Member States to open the planning process and include the voices pushing for such funding.”

 

Markus Trilling, Finance and Subsidies Policy Coordinator at Climate Action Network (CAN) Europe, said “Member States are making investment decisions today which will shape our economies for decades. Now is the time to ensure these investments help us in the needed transformation towards a better society for all. This can not happen with citizens left outside, which is why public consultation processes are part of Europe’s legislative framework. ”

 

For more information contact :

 

Raphael Hanoteaux

EU policy officer

CEE Bankwatch Network

+32 496 205 903

raphaelh@bankwatch.org

 

Markus Trilling 

Finance and Subsidies Policy Coordinator

Climate Action Network (CAN)  Europe 

markus@caneurope.org

 

Notes 

[1] The assessment of the plans is available here: LINK 

[2] https://live.unece.org/fileadmin/DAM/env/pp/documents/cep43e.pdf 

[3] See the letter to the commission vice-presidents here: LINK

 

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