Proparco's purpose is to promote private enterprise initiative in developing and emerging countries as a contribution to sustainable growth and a lasting improvement in the living conditions of the local population. In order to achieve sustainable progress, Proparco sets high standards for its own business as well as for its clients. Nevertheless, during the course of investment, projects might have unexpected or unmitigated adverse impacts.
To ensure individuals, groups, communities or other parties who believe to be adversely affected by a project financed or managed by Proparco the right to be heard and the right to complain, Proparco set an Independent Complaints Mechanism (hereafter also: the ‘Mechanism’ or ‘ICM’).
The Mechanism provides stakeholders with a tool to seek alternative ways to resolve disputes between stakeholders and Proparco’s clients. At the same time the Mechanism strengthens the implementation of and adherence to Proparco’s own policies and procedures even further by providing a feed-back loop for Proparco.
The Independent Complaints Mechanism consists of an Independent Expert Panel (hereafter also: the ‘Panel’ or ‘IEP’) that is supported by Proparco’s Complaints Office. The Independent Expert Panel consists of a group of three persons with environmental, social, legal and financial expertise. The Panel is fully independent of Proparco. It decides whether a complaint is admissible, responds to the complainant, is responsible for a dispute resolution or a compliance review and reports on individual complaints. The Complaints Office is a function performed by Proparco employees, which registers and acknowledges receipt of complaints, coordinates adequate fulfillment of the complaints process and provides practical support to the Panel.
The Mechanism is a joint initiative with DEG - Deutsche Investitions und Entwicklungsgesellschaft and FMO - Netherlands Development Finance Company.