Board approves Independent Review Mechanism’s recommendations and the Management Action Plan for Modern Mills Project in Mali

25/05/2018
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On April 26, 2018, the Board of Directors of the African Development Bank Group approved compliance recommendations of the Independent Review Mechanism (IRM) on the «Diversification of Activities of the Modern Mills of Mali” (M3). The compliance review report was approved with a mitigation action plan prepared by the Bank’s Management. The Board authorized the preparation of the compliance review report in its meeting on 23 November 2016 following the registration of a complaint by persons affected by the M3 project.

The IRM's recommendations and the implementation of Management’s Action Plan will address grievances raised by complainants about land grabbing by the project in Sanamadougou and Sahou villages. Furthermore, some of the people who lost their land and property were not compensated while others received inadequate or symbolic payments.

The Board instructed the Bank's management to work with the client, the Government of Mali and the villagers in a participatory process to ensure appropriate compensation or resettlement of affected persons by the project, taking into consideration the recommendations of a taskforce set up by the Prime Minister of Mali in December 2014.

With respect to non-compliance, the Board requested Management to intensify staff training on the Bank's risk management policies and other instruments. The Board urged Management to ensure that information provided for project approvals involving sensitive issues such as land acquisition, lease, or relocation of people are accurate. Management must also ensure that the assurances given to the Board are appropriately monitored.

The IRM will monitor the implementation of the Action Plan and report progress to the Board annually.

The M3 project was approved by the Board on September 17, 2014 for a Euro16.8 million loan granted in local currency (FCFA), with co-financing from the government  (CFAF 10.8 billion), other banks (CFAF 25.2 billion) and  the West African Development Bank (CFAF 7 billion).