Is AIIB's complaint mechanism failing affected communities?

Detailed summary

The AIIB has a grievance redress mechanism for people affected by projects it finances. But those seeking to file a complaint face significant hurdles. Critics say reforms and greater transparency are needed.

For members of the Indigenous Sasak community on the Indonesian island of Lombok, the conflict over their land is not over.

For them, a tourism and infrastructure project co-financed by the Asian Infrastructure Investment Bank (AIIB) is a source of frustration, as they believe it has led to the expropriation of their land and destruction of their livelihoods.

In late September, they officially filed a complaint with the bank. It remains unclear whether this complaint will lead to an independent investigation.

The AIIB, which finances major infrastructure projects across Asia, has a mechanism in place to deal with such complaints.

Individuals who suffer adverse effects from the bank-financed projects may, under certain conditions, file a complaint with the institution.

However, access to this process — known as the Project Complaints Mechanism (PPM) — remains controversial.

According to a report by The Diplomat, a magazine that covers political and economic developments in Asia, none of the 45 complaints listed on the AIIB's website had been deemed admissible as of mid-September.

The bank acknowledged that "no cases have passed the PPM's eligibility assessment," but it stressed that it is "only part of the story."

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Opening of the article, excerpted from DW Business. To read the rest, open the article on the publisher's site.