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 European Investment Bank (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's main allegation is that the compensation proposed (half standard lot under the VSB program) is not sufficient to cover the losses incurred by the closure of the complainant's business and the demolition of her beach house (“cabanon”), developed on concessional state land. The complaint also alleges lack of transparency and guarantees about eligibility to reinstallation. The EIB Complaints Mechanism (EIB-CM) referred to the RAP and the EIB Environmental and Social Standards in handling the complaint.

With regard to the business activity, given contradictory information and evidence, the EIB-CM was not able to confirm that the complainant suffered any loss or is in fact eligible for compensation under the RAP or according to judgements of the court. The EIB-CM cannot substitute itself to judgments of judicial authorities. However, should the interpretation and implementation of the judgement be in favor of the complainant, the complainant could request the local committee in charge of eligibility decisions (“Comité Local de Suivi” or “CLS”), to review the case once more.

With regard to the beach house, the compensation offered by the project is in line with the RAP. In the specific case of the complainant, the alternative compensation in nature proposed under the RAP is of higher economic value than the expropriation indemnity, and gives access to the ownership of a plot and a decent housing (considering the small household size).

With regard to the allegation of lack of transparency and guarantees about the eligibility to reinstallation, a compliance review for similar allegations has been performed (cases SG/E/2022/11A, 11C et 18) and the conclusions report published (see https://www.eib.org/en/about/accountability/complaints/cases/zenata-urban-development-sg-e-2022-11a). This allegation has therefore not been handled for this case.

The EIB-CM's work consisted mostly in analyzing the case of the complainant, the expropriation file, the complainant’s rights under the RAP, the decisions of the CLS about eligibility, and to verify and share information between the complainant and the promoter. These exchanges allowed the complainant to have access to all the information relevant to the case. During the case assessment, the complainant declared it was willing to accept the alternative compensation foreseen by the RAP. In line with its policy and as confirmed by the complainant, the EIB-CM considers the problem as solved. On this basis, in line with its procedures, the EIB-CM finds that a compliance investigation to determine whether there is maladministration by the EIB is not justified and decides to close the complaint with the publication of a conclusions report.