Zenata Urban Development

The Zenata Urban Development Project in Morocco covers the development of a new eco-city located between Casablanca and Mohammedia (the “Project”). In September 2014, the EIB approved a loan of up to €150 million for a total Project cost estimated at €800 million. The resettlement required for the purposes of the Project affects more than 40,000 people, approximately 70% of whom are low-income people scattered across 17 informal settlements that are to be dismantled under the “Villes sans Bidonvilles”, Morocco’s national program (the “VSB”).  

In view of the above, and in line with the EIB Environmental and Social Standards, the EIB required the promoter to develop a resettlement policy framework and a Resettlement Action Plan (“RAP”). The RAP, which was validated by the EIB, describes the resettlement program, the different categories of Project Affected Persons (“PAPs”), their entitlements and corresponding compensations, and the livelihood restoration measures.

The complaint contains several allegations about various issues related to the resettlement process. Major allegations concern the:

• long transition period between the demolition of the PAPs’ informal settlements and their resettlement into new apartments in the defined relocation area;
• lack of compensation for the transition costs associated with the resettlement process;
• lack of compensation, during the transition period, for PAPs who carried out informal activities in the informal settlements.

One of the main issues identified by the EIB Complaints Mechanism (EIB-CM) relates to the limited gap analysis performed between the VSB and the requirements of the EIB Environmental and Social Standards (the “E&S Standards”). The VSB, which is the referential for the original resettlement of the dwellers affected by the Project, is not fully compliant with the E&S Standards. Consequently, the implementation of the resettlement activities as per the VSB resulted in non-compliances of the Project with the E&S Standards, such as the absence of compensation for the transition period between the demolition of existing houses and the reinstallation in the new apartments, including for the PAPs who carried out informal activities.

The EIB-CM Conclusions Report indicates that, in relation to some allegations, the EIB-CM found maladministration attributable to the EIB. This results from shortcomings in how the EIB conducted the appraisal and monitoring of the Project, specifically in relation to areas of non-compliance with the E&S Standards applicable to the Project. Accordingly, the EIB-CM in its Conclusions Report, recommends that the Bank informs the promoter in writing about the Project non-compliances with the E&S Standards and agrees on a corrective action plan, developed by the promoter with the support from the relevant institutions involved in the resettlement program, to bring the project back into compliance.

In line with its mandate, the EIB-CM will be monitoring the implementation of the recommendations.