Cairo Metro Line 3 (Phase 3)

Complaint

The complaint concerns the “Cairo Metro Line 3 (Phase 3)” project in Egypt, financed by the European Investment Bank (EIB). The promoter of the project is the National Authority of Tunnels (NAT) and the construction contractor is an Egyptian French joint Venture (so called EFJV), led by Vinci Construction. End of December 2021, the EIB-CM has received a complaint from a few employees (including former employees) of EFJV regarding a series of allegations of misuse of authority manifesting into falsification of documents, psychological violence, sexual harassment and retaliation within a department of EFJV, as well as dysfunctional governance and grievance mechanism within the joint venture.

EIB-CM action

After conducting a review of available information, the EIB-CM has decided to undertake a compliance review in relation to the raised allegations with the applicable regulatory framework, in particular how the EIB has reviewed, validated and monitored the implementation of labour conditions requirements at NAT, especially those that refer to contractors working conditions.

In addition, the EIB-CM reviewed the actions taken by the EIB from the moment of receiving the complaint. In particular, the EIB-CM followed up on how these actions have contributed in the grievance investigation and resolution by EFJV and NAT respectively, and whether these actions comply with the regulatory framework and international good practice.  NAT, which also received the complaint via its grievance mechanism, had set up an investigation committee.

Conclusion

The EIB-CM performed its compliance review and found that EIB actively participated to the monitoring and found no evidence of maladministration from the Bank.

Outcome

The EIB-CM issued four suggestions for improvement to EIB to follow up with NAT for addressing the shortcomings identified in their own reporting as well as in the investigation committee report. These suggestions for improvement covered: i) actions foreseen following the commission report, ii) the contractor grievance mechanism, iii) reporting quality on working conditions & workers grievances, and iv) training plans in relation to gender based violence and harassment in the workplace. The suggestions for improvement were expected to be implemented by the end of the first semester of 2024.

Monitoring

As part of the monitoring, the EIB-CM was informed about the implementation of these suggestions for improvement. The EIB operational services had monitored and requested improvements to the project considering the EIB-CM’s conclusions and suggestions. A letter from the promoter confirmed that a grievance mechanism had been set up and was now in place at contractor level. Furthermore, policies related to gender-based violence have been developed and were being applied. At last, the EIB operational services shared evidence of improved quality of reporting about the contractor environmental and social activities. The promoter significantly enhanced its regular reporting to the EIB, more particularly the information about incidents at work, trainings and workers grievances (including the number of grievances over time, their nature and whether they are closed or open). The EIB-CM closed the monitoring process for this case end Q3 2023.