Ecuador's Galapagos Debt-for-Nature Swap Under Investigation by IDB Oversight Body

The Inter-American Development Bank's oversight body is examining complaints from local groups regarding a debt-for-nature swap for Ecuador's Galapagos Islands. The groups allege a lack of transparency and community engagement. The landmark $1.6 billion swap aims to fund environmental projects but is facing scrutiny over policy compliance.

The Inter-American Development Bank's oversight body is scrutinizing a record 'debt-for-nature' swap by Ecuador for its Galapagos Islands to determine if it breached policies, following complaints from local groups.

The Independent Consultation and Investigation Mechanism (MICI) is investigating concerns about inadequate information and community engagement in the $1.6 billion debt swap, which aimed to fund environmental projects. Despite global attention, 24 groups are frustrated by their exclusion from decisions and the pending disbursement of conservation funds.

MICI will assess the complaint by October's end, potentially escalating the matter to the IDB Executive Board for a full investigation. The decision could lead to policy changes to enhance transparency and community involvement in future transactions.

(With inputs from agencies.)