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This case concerned West LB’s financing of a pipeline in Ecuador. The Complaint alleged that the project sponsors had violated environmental and human rights, and were violating four World Bank criteria for the project.
The primary owner of the West LB was the regional state Nordrhein-Westfalen. There were a number of public hearings on the issue before it was filed as a Complaint. West LB stated that as precondition of their financing, the project must strictly follow the internationally accepted environmental standards of the World Bank.
In October 2003, the German NCP rejected the case, citing the lack of an investment nexus. The NCP also argued that the OECD “Code of Liberalisation of Capital Movements” requires “investments which give the possibility of exercising an effective influence on the management thereof” in order for an investment nexus to exist. Greenpeace was considering asking for a formal clarification by the OECD Investment Committee about the eligibility of the Complaint.
OECD Watch case story page: http://oecdwatch.org/cases/Case_32