On May 16, 2024, the World Bank’s Board of Executive Directors approved a Management Action Plan in response to an independent Inspection Panel investigation of the Bolivia: Santa Cruz Road Corridor Connector Project (San Ignacio–San Jose). The Panel's investigation was prompted by a Request for Inspection filed on December 19, 2022, by four leaders of Chiquitano Indigenous People organizations in the Chiquitania region of eastern Bolivia.
The project is designed to improve transport accessibility along the road corridor between the towns of San Ignacio de Velasco and San José de Chiquitos in the Santa Cruz region. It includes upgrading approximately 208 kilometers of existing road connecting the two municipalities through road paving, construction of bypasses and bridges. The project also supports environmental and social instruments' implementation and supervision, providing training and technical assistance to the Bolivian Highway Administration (Administradora Boliviana de Carreteras). Additionally, it funds feasibility studies and bidding documents for upgrading roughly 300 kilometers of road between San Matias and San Ignacio de Velasco. This section is part of the Bi-Oceanic Corridor intended to diversify and expand production, trade, services, and job creation. Approximately 125,000 people will directly benefit from this project; among them are 51 percent poor individuals and 62 percent indigenous descendants.
The project is financed through an IBRD-Loan of US$200 million and an IDA-Credit of US$30 million. It is implemented by the Bolivian Highway Administration.
The Request for Inspection raised concerns about potential impacts resulting from the road upgrade. These concerns included threats to land and livelihoods through illegal occupation of land, ineffective implementation of the Indigenous Peoples Plan (IPP), lack of meaningful consultations on the Project, weaknesses in overall working conditions, and risks related to sexual exploitation, abuse, and harassment towards indigenous women and girls in the project area.
The Panel’s investigation primarily focused on concerns stemming from inadequate management of construction-related impacts on communities adjacent to the road works. The report identified insufficient identification and/or mitigation of impacts on water resources, issues with establishing borrow pits, providing timely compensation for acquired land, and inadequate implementation of road safety measures.
The World Bank has agreed with the Government of Bolivia and consulted with the affected communities on an Action Plan that details how they will work together to address the Panel’s findings. The Board approved this plan yesterday. The Government of Bolivia has confirmed its commitment to implement the plan while the World Bank will support and monitor its implementation.
Inspection Panel Chairperson Mark Goldsmith stated, “The Panel is reassured that most of its findings are being addressed, or are intended to be addressed through the Management Action Plan." He added his appreciation for the Requesters' trust and courage in bringing their concerns forward.
The Board recognized the importance of the Project to Bolivia and its significant development benefits for vulnerable and indigenous communities. It stressed learning from implementation challenges and continuing capacity support to ABC. The Board also commended Management for successfully incorporating lessons from previous Bank-financed road projects while addressing gender-based violence risks in the project.
CarlosFelipe Jaramillo, World Bank Vice President for Latin America and the Caribbean, said, “The Santa Cruz Road Corridor Connector Project is strategically important to support Bolivia’s efforts to reduce inequality and poverty." He emphasized that they are working closely with the Bolivian government to strengthen roads sector capacity to address environmental and social issues.
Management will report annually to the Board on progress in implementing the MAP.
For a full copy of the Inspection Panel Report and Management Report and Recommendation, please visit: https://www.inspectionpanel.org