Early Warning System

Countries

Nicaragua

Geographic location where the impacts of the investment may be experienced.

Specific Location

Región Autónoma de la Costa Caribe Norte (RACCN), la Región Autónoma de la Costa Caribe Sur (RACCS),

Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.

Financial Institutions

Green Climate Fund (GCF)

International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.

Project Status

Proposed

Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.

Bank Risk Rating

Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."

Voting Date

Nov 12, 2020

Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.

Borrower

Central American Bank for Economic Integration (CABEI)

A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.

Sectors

Agriculture and Forestry
Climate and Environment
Law and Government

The service or industry focus of the investment. A project can have several sectors.

Investment Type(s)

Grant, Loan

The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.

Investment Amount (USD)

$ 64.00 million

Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.

Loan Amount (USD)

$ 37.90 million

Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.

Grant Amount (USD)

$ 26.10 million

Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.

Project Cost (USD)

$ 115.69 million

Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.

Bank Documents

Funding proposal

Corporate Actor Documents

Primary Source

Original disclosure @ GCF website

Updated in EWS Oct 21, 2020

Disclosed by Bank Jun 23, 2020

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Project Description

If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the proposing entity: The Project seeks to reduce emissions generated by deforestation, forest degradation and livestock, while increasing carbon stocks in the Caribbean Region of Nicaragua. Its objective is to generate benefits for local communities through sustainable and productive land uses.

The project's risk level has been rated as “high” due to the work with indigenous communities and non-indigenous settlers, and the social conflict in the project region.

The project has three main components:
• Conserve and produce for life: Investments for the sustainable restoration of the landscape and the management of natural resources. This stage will involve providing communities and farmers with skills, technical assistance, incentives, and market access to improve their livelihoods while restoring and conserving natural resources.
• Good government: Strengthening of regional and local environmental authorities, including the governments of indigenous territories. This stage includes the facilitation of dialogue mechanisms to improve the business climate, aiming at sustainable investment by the private sector.
• Development of capacities for the productive restoration of the landscape and the conservation of forests: Training and capacity building for technical personnel, tools and instruments for environmental monitoring. This stage also includes awareness campaigns and public environmental education.

Contact Information

This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

CABEI has a redress mechanism available at: https://www.resguarda.com/BCIE/inicio/bcie_es.html