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Today, the Independent Expert Panel (IEP) published a compliance review of FMO's investment in the Sendou power plant in Senegal. The investigation follows a complaint issued by two different Complainant groups, the environmental NGOs Takkom Jerry together with Lumière Synergie pour le Développement, and the Collectif des communautées de Bargny.
Although the IEP recognizes considerable improvements by both FMO and the Sendou project company since the start of the project, it also identifies certain omissions by FMO during the due diligence phase prior to the project in 2009. According to the IEP, certain Environmental & Social items, especially community engagement, could have been considered more carefully by FMO.
Moreover, in its report the IEP issued three concrete recommendations, i.e.:
In its Management Response to the IEP's report, FMO indicates how it will deal with the IEP's recommendations. FMO acknowledges that, during the due diligence phase held during 2009, some key Environmental & Social items should have been considered more carefully and contextual risk should have been better analysed. FMO has incorporated the lessons learned from this and other projects into believes that the project company is on the right track with the strong support of the stakeholders, the Senegalese Government and the Lenders, and is taking the necessary actions in order to make the project, once operational, fully compliant with the applicable standards.
FMO's Management Board wishes to express its appreciation for the efforts made by the Independent Expert Panel in researching and understanding the project and for the elaborated report that they produced.
FMO commits to make good use of the report to continuously improve the way investment decisions are made and projects are executed in a sustainable manner. At the end of the day, it is in the mandate of FMO to empower entrepreneurs in developing countries to build a better world.
About the Independent Expert Panel
FMO has implemented an Independent Complaints Mechanism which allows external parties to file a complaint concerning projects financed by FMO.
Please visit the website for more information about the Independent Expert Panel