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    Reference: SG/E/2021/16
    Received Date: 09 July 2021
    Subject: Malawi NRWB Water Efficiency
    Complainant: Confidential
    Allegations: Alleged damages to property caused during the implementation of the project. No assessment report nor compensation list were allegedly released.
    Type: E - Environmental and social impacts of financed projects
    Suggestions for improvement: no
    Admissibility*
    Assessment*
    Investigation*
    Dispute Resolution*
    Consultation*
    Closed*
    26/07/2021
    18/01/2022
    22/08/2022
    22/08/2022

    * Admissibility date reflects the date the case was officially registered. All other dates pertain to the date in which a stage was completed.

    Case Description

    In July 2021, members from three communities in Northern Malawi complained regarding the social impact of an EIB-financed project of the Northern Region Water Board (NRWB). The main issues raised in the complaint concern stakeholder engagement, compensation and damages to properties. In January 2022, the Complaints Mechanism issued the initial assessment report and proposed to proceed with collaborative dispute resolution. Given the complexity of the case, three processes were carried out by the Complaints Mechanism with the support of two local facilitators.

    Process A: Kazando
    Main dates and status

    Dispute resolution: 26 July 2022
    Closed: 26 July 2022
    Follow-up: Ongoing

    The process with the Kazando community was concluded after a third dialogue session facilitated by the Complaints Mechanism took place in July 2022. The parties reached an agreement on five items: (i) installation of three communal water points, (ii) payment of the remaining compensations to 13 households, (iii) rehabilitation of a hall to-be-used as a health centre in Kazando as part of the promoter’s corporate social responsibility efforts, (iv) maintenance of some roads in Kazando and (v) assessment of the damage to structures and payments. The Complaints Mechanism issued two interim monitoring reports on 15 December 2022 and 15 March 2024. It continues to monitor the two action points that remain open.

    Process A: Chipambo and Geisha
    Main dates and status

    Dispute resolution: 22 August 2022
    Closed: 22 August 2022
    Follow-up: 15 December 2022

    The process with the Chipambo and Geisha communities was concluded in July 2022 with the withdrawal of the complaints. Despite this withdrawal, various concrete actions have been agreed as an outcome of earlier stages of the dialogue. In addition, the promoter undertook various steps to address the issues raised by the affected community members, which the Complaints Mechanism monitored until full implementation. The dispute resolution report was issued on 22 August 2022 and the monitoring report on the promoter’s actions was issued on 15 December 2022.

    Process B
    Main dates and status

    Dispute resolution: 3 May 2022
    Closed: 3 May 2022
    Follow-up: No

    Process B concerned cracks on a house that, according to its owner, were caused by the project. As part of a joint fact-finding exercise, in February 2022, the owner and the promoter agreed to accept the finding of an independent engineer. The parties jointly chose the engineer, who inspected the cracks. The engineer concluded that it cannot be established that the excavation works resulted in the alleged damage to the house. As previously agreed, the parties accepted the findings of the third-party engineer.