CAO Cases

Arne Hoel, The World Bank

Europe & Central Asia

Ukraine / MHP-01/Vinnytsia

Complainant
Community members of Olyanystya, Zaozerne, and Kleban (Confidential)
Date Filed
June 05, 2018
Concerns
Air, land, and water pollution; foul odors; information disclosure and consultation; violation of national laws and PS
Case Status
Open - Ombudsman
 

Synopsis

Project Overview  

According to IFC, Myronivsky Hliboproduct Publichne AT (MHP) (“the Company”) is a vertically integrated poultry producer in Ukraine. In 2013 the Company produced 472,800 tons of chicken meat and harvested around 2 million tons of crops. The Project involves providing a long term corporate loan facility of up to US$250 million to support the Company’s expansion plans in Ukraine and refinance its Eurobond maturity falling due in 2015.

 

Complaint 

In June 2018, CAO received a complaint from local community members in Olyanystya, Zaozerne, and Kleban villages, with support from CEE Bankwatch Network/Center for Environmental Initiatives “Ecoaction” (a Ukrainian NGO) and Accountability Counsel (a US NGO), regarding IFC’s investment in Myronivsky Hliboproduct Publichne AT (MHP) in Ukraine.  The complaint raises concerns about impacts from dust, noise, and odors, as well as concerns, that the company’s operations cause air, water, and soil pollution, and deplete water resources. Additional issues raised in the complaint include: improper community consultation; lack of information disclosure; occupational health and safety; and poor working conditions.

 

In addition to filing a complaint to CAO, the Complainants submitted a complaint to the European Bank for Reconstruction and Development’s (EBRD) Project Complaint Mechanism (PCM). EBRD is also an investor in MHP.

 

CAO Action

CAO found the complaint eligible in June 2018 and began an assessment of the complaint. During the assessment, the Complainants and the Company agreed to engage in a voluntary dialogue process to try and resolve the dispute. As agreed by the parties, CAO and PCM will jointly facilitate the dialogue process. CAO's assessment report is available in English and Ukrainian under "View Documents" below.

 

Status

A dispute resolution process is underway.

 

 

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 determine what options are available to address the complaint through CAO's Dispute Resolution and Compliance functions.


Status as of February 4, 2019

Project information

Institution
IFC
Project Name & Number
MHP Corporate Loan 34041
Department
Agribusiness
Company
Myronivsky Hliboproduct Publichne AT
Sector
Poultry Farming
Region
Europe & Central Asia
Country
Ukraine
Environmental Category
B
Commitment
US$100 million A Loan, US$75 million B Loan

Case Tracker

Ombudsman

  • Eligible: Completed
  • Assessment Period: Completed
  • Facilitating Settlement: In Process

Compliance