European CM Investment Complaints ,I Bank Mechanism Route E42o Frasnes-lez-Couvin - Brly RTE Project Complaint SG/E/2o14/o2 Belgium Complaints Mechanism - Complaints Mechanism - Complaints Mechanism - Complaints Mechanism CONCLUSIONS REPORT 13 December 2018 EIB Complaints Mechanism Prepared by Complaints Mechanism Damir Petrovic Complaints Officer Alfredo Abad Deputy Head of Division Sonja Derkum Head of Division Complaints Mechanism External Distribution Complainant Borrower/Promoter Internal Distribution Management Committee Secretary General Inspector General Relevant EIB departments Confidentiality waived: Yes1 1 In his email sent on 19 August 2015, the complainant waived the tight to confidentiarty requested in the complaint submitted on 22 January 2014. 2 Route E420 Frasnes-Iez-Couvin - Braly RTE The EIB Complaints Mechanism The EIB Complaints Mechanism is designed to provide the public with a tool enabling alternative and pre-emptive resolution of disputes in cases in which members of the public feel that the EIB Group has done something wrong, i.e. if they consider that the EIB has committed an act of maladministration. When exercising the right to lodge a complaint against the EIB, any member of the public has access to a two-tier procedure, one internal — the Complaints Mechanism Division (EIB-CM) — and one external — the European Ombudsman (EO). Complainants that are not satisfied with the EIB-CM’s reply have the opportunity to submit a confirmatory complaint within 15 days of receipt of that reply. In addition, complainants who are not satisfied with the outcome of the procedure before the EIB-CM and who do not wish to make a confirmatory complaint have the right to lodge a complaint of maladministration against the EIB with the EQ. The EQ was ‘created” by the Maastricht Treaty of 1992 as an EU institution to which a citizen or an entity may appeal to investigate an EU institution or a body on the grounds of maladministration. Maladministration means poor or failed administration. This occurs when the EIB Group fails to act in accordance with the applicable legislation and/or established policies, standards and procedures, fails to respect the principles of good administration or violates human rights. Some examples, as set out by the European Ombudsman, are: administrative irregularities, unfairness, discrimination, abuse of power, failure to reply, refusal to provide information, unnecessary delay. Maladministration may also relate to the environmental or social impacts of the EIB Group’s activities and to project cycle-related policies and other applicable policies of the EIB. The EIS Complaints Mechanism is designed not only to address non-compliance by the EIB with its policies and procedures but also to endeavour to solve the problem(s) raised by complainants such as those regarding the implementation of projects. For further and more detailed information regarding the EIB Complaints Mechanism, please visit our website: httx//www.eib.orq/aboutIaccountabiIity/complaints/index.htm 3 EIB Complaints Mechanism Table of Contents EXECUTIVE SUMMARY 5 1. COMPLAINT (ALLEGATIONS AND CLAIMS) 6 2. BACKGROUND INFORMATION 6 3. REGULATORY FRAMEWORK 8 4. WORK PERFORMED 10 5. SPECIFIC ALLEGATIONS FINDINGS, CONCLUSIONS AND RECOMMENDATIONS 10 5.1 General overview of the appraisal and monitoring 10 5.2 Effectiveness of the project 11 5.3 Studied alternatives 14 5.4 Environmental impact 16 6. SUMMARY OF THE CONCLUSIONS AND RECOMMENDATIONS 20 LIST OF ABBREVIATIONS 23 4 Route E420 Frasnes-Iez-Couvin - BrüIy RTE EXECUTIVE SUMMARY This report concerns a complaint regarding the EIB-financed motorway section between Frasnes lez-Couvin and Braly on motorway route E420 in Belgium (hereinafter: the project). The complaint consists of three allegations concerning the following: • effectiveness of the project; • studied alternatives; • environmental impact. After conducting the review, the EIB’s Complaints Mechanism (EIB-CM) concludes that the project is in line with the project applicable standards with respect to the allegations made. With respect to the role of the EIB, the EIB-CM concludes that the allegations are ungrounded. The EIB carried out a project appraisal in line with its procedures, covering the issues raised in the complaint. The EIB also formulated a number of specific conditions, such as (i) a written authorisation from the competent authority for nature conservation (Form A) and (ii) finalisation of all ongoing disputes, and checked the fulfilment of these conditions prior to the first disbursement of funds. The EIB continues to monitor whether the project has a significant impact on the environment in line with the contractual arrangements between the EIB and the promoter. Once collected, the EIB should also receive information on traffic flows, which should confirm whether the project is effective. In light of, the above, the EIB-CM concludes that its inquiry did not identify any instances of maladministration by the EIB. Therefore, the El B-CM does not make any specific recommendations and considers the case closed. 5 EIB Complaints Mechanism 1. COMPLAINT (ALLEGATIONS AND CLAIMS) 1.1 In January 2014, the EIB’s Complaints Mechanism (EIB-CM) received a complaint from an individual (hereinafter: the complainant). The complaint concerns the motorway section between Frasnes-lez-Couvin and Brüly on route E420 in Belgium (hereinafter: the project)2. The complaint consists of three allegations concerning the project, which is financed by the EIB. The allegations, as submitted by the complainant, are presented in Table I below. The allegations presented in Table 1 are analysed in Section 5 of this report. TABLE I — SUMMARY OF THE ALLEGATIONS Allegation Summary of the allegation received from the complainant It is claimed that the project would not be an effective alternative to the existing North-South routes in Europe. By way of illustration, a trip between Rofferdam and Marseille would be longer by an hour using the Effectiveness of the E420 compared to the current route through Liege due to the following: project Brussels Ring congestion; N5 road section between Charleroi and Fraire is lined with dwellings and, therefore, it is impossible to turn this section into a motorway. The lack of a study on the origin/destination of the traffic further contributes to the uncertainty of the project’s effectiveness. The Walloon Environmental Council for Sustainable Development . (Conseil wallon do l’environnement pour le developpement durable) Studied alternatives . (CWEDD) has issued unfavourable opinions because appropnate alternatives have not been studied. The full impact of the project on the environment is uncertain. For example, the works around the Ry de Rome will result in channelling of Environmental impact the river and destruction of the valley, therefore, destroying the priority habitat protected under the Habitats Directive. It would not be possible to compensate for this destruction. 1 .2 In his complaint, the complainant calls for the cessation of further works and reconsideration of the project and its alternatives, taking into account cost, environmental and traffic issues. 2. BACKGROUND INFORMATION 2.1 The project promoter is the Walloon Region’s Company for Financing Infrastructure Projects (Société régionale wallonne de financement complémentaire des infrastructures) (SOFICO) (hereinafter: the promoter)3. The project consists of the construction of 13.8 km of new 2x2 motorway. The project is located between Frasnes-lez-Couvin and Bruly in the municipality of Couvin in the Walloon region of Belgium (see the red square superimposed on Picture 1). 2 htto://www.eib.orojen/projectslpipelines/oioeline/20120103, accessed on 7 November2018. http:utwww.soflco.orMrl 6 Route E420 Frasnes-lez-Couvin - BrOly RTE PICTURE I — LOCATION OF THE PROJECT The project involves the upgrading of the existing Belgian National road N5, which stretches out from Brussels via Charleroi and passes through Couvin before reaching the Belgian/French border at BrOly. The project is part of the European route E420 that ends in Reims in France4. 2.2 The project is being implemented in three phases (see Picture 2), namely: • Phase 1 consisting of a 2x2 motorway bypass around the town of Couvin — works started in October 2011 and this section has been in operation since October 2017; • Phase 2 consisting of a 2x2 motorway link between the Couvin bypass (Phase 1) and the Belgian/French border — works started in August 2015 and are expected to be completed by mid-2019; • Phase 3 consisting of a 2x2 motorway link between the Couvin bypass (Phase 1) and Frasnes-lez-Couvin, situated just north of the town of Couvin — works started in October 2016 and should be completed by mid-20205. httos://ipfs.io/ipfs/QmxoyDiziW3WknFiJnKLwHpnL72vedxiQkDDPl mX\No6uco/wiki/Eurocean route E420.html, accessed on 7 November 2018; Environmental and Social Data Sheet (E5DS). htto://www.sofico.orglfr/cha%c3%AEnons-manpuants/contoumement-autoroutier-de-couvin, accessed on 7 November 2018. 7 EIB Complaints Mechanism PICTURE 2— THE PROJECT CONSTRUCTION PHASES tj I 8t881IQ*t Couwi 2.3 The total cost of the project is EUR 161 million; the EIB is part-financing all three phases of the project with a loan of EUR 80 million. The EIB and the promoter signed the finance contract in March 2014. The Region of Wallonia is the guarantor for the project. 3. REGULATORY FRAMEWORK Work of the EIB-CM 3.1 The EIB-CM is tasked with addressing complaints concerning alleged maladministration by the EIB6. Maladministration means poor or failed administration. This occurs when the EIB fails to act in accordance with the applicable legislation and/or established policies, standards and procedures. Maladministration may also relate to the environmental or social impacts of EIB’s activities7. Any person or group who alleges that there may be a case of maladministration within the EIB can lodge a complaint8. For each admissible complaint, the EIB-CM prepares a conclusions report9. 8 Section II, § 3 and 4 and Section III, § 1.4 of the European Investment Bank Complaints Mechanism Principles, Terms of Reference and Rules of Procedure fCMPTR).