CAO Cases

Arne Hoel, The World Bank

Middle East & North Africa

Egypt / Egyptian Indian Polyester Company - Sokhna-01/India

Complainant
Several former employees
Date Filed
October 27, 2016
Concerns
Labor - severance
Case Status
Closed
 

Synopsis

Project Overview
The IFC project with the Egyptian Indian Polyester Company (EIPET) comprises the establishment of a 420,000 tons per annum greenfield Polyethylene Terephthalate (PET) resin plant in the Eldorado Integrated Development and Free Zone S.A.E. in Ain Sokhna, Egypt.  EIPET is a joint venture between South Asian Petrochem Limited, an Indian based manufacturer of PET which merged with its holding company Dhunseri Tea & Industries, and the Egyptian Petrochemical Holding Company, an agency of the Government of Egypt. IFC’s commitment to the project is $35 million A Loan and up to $65 million in syndicated B Loan.

 

Complaint
In October 2016, CAO received a complaint from several former employees of EIPET who raised concerns that the company did not meet its obligation, to pay their complete salary and severance, as agreed on termination of their employment contracts.

 

CAO Action
CAO found the complaint eligible for further assessment in December 2016.

 

The assessment process began in January 2017, during which bilateral meetings were held with the complainants and the company.  Both sides indicated an interest in engaging in a dispute resolution process to try and resolve the issue. There was no dispute by the company that funds were owed to the complainants and the company showed an eagerness to resolve the issue.

 

CAO facilitated information sharing between the parties after which the company with the consent of the complainants requested to have direct discussions to attempt to resolve the issue. Attempts by the EIPET to pay the complainants, through the assistance of the company’s bankers CIB, were unsuccessful. The company then sought assistance from its majority shareholders, Dhunseri Petrochem Ltd. As a result, an agreement was reached the parties which saw the company through Dhunseri Petrochem Ltd, paying all outstanding monies owed to the complainants.

 

In April 2017, CAO received an email from the complainants confirming that the matter had been resolved and all outstanding amounts had been paid. This was confirmed by the EIPET in an email to the CAO in May 2017.  

 

Status
The complaint has been resolved and the case is now closed.

 

Status as of June 20, 2017


Note: A CAO assessment does not entail a judgment on the merits of complaints. Rather, the aim is to listen to people's concerns, understand the different perspectives, and gauge whether it is possible to address the concerns in a collaborative process.

Project information

Institution
IFC
Project Name & Number
Egyptian Indian Polyester Company – Sokhna 28878
Department
Global Manufacturing & Services
Company
Egyptian Indian Polyester Company SAE
Sector
Plastics & Rubber
Region
Middle East & North Africa
Country
Egypt
Environmental Category
B
Commitment
$35 million A Loan and up to $65 million in syndic

Case Tracker

Ombudsman

  • Eligible: Completed
  • Assessment Period: Completed
  • Facilitating Settlement: Completed
  • Monitoring/Close-out: Closed

Compliance