CAO Cases

Arne Hoel, The World Bank

South Asia

India / Tata Tea-01/CAO Vice President Request

CAO Vice President Request
Date Filed
May 01, 2012
Labor issues and worker health, safety, and security
Case Status
Open - Compliance



This case relates to labor related aspects of IFC's investment in Amalgamated Plantations Private Limited (APPL), a company which manages tea plantations in the Northeast of India.


The compliance appraisal of IFC's investment in APPL was initiated by the CAO Vice President in May 2012 based on unresolved concerns submitted by the International Union of Food Workers (IUF) to IFC's Communication Portal for Performance Standard 2 (PS2).  Concerns in relation to the investment were triggered by incidents on two APPL plantations in 2009/10 which led to disputes with unions representing APPL workers.


CAO Action

CAO concluded its appraisal of the case in January 2013. Having held discussions with the IFC team and reviewed relevant documentation, CAO has questions as to the extent of implementation of IFC's policies and procedures, in particular requirements to:


• conduct an Environmental and Social (E&S) review that is “commensurate with the level of social and environmental risks” of the project (Policy on Social and Environmental Sustainability, 2006, para. 13);


• assess whether the client's E&S Assessment meets the requirements of PS1, and if not request that the client undertake additional assessment(s) (Sustainability Policy, 2006, para 17);


• identify any gaps between the client's assessment, the Performance Standards in the Environmental and Social Review Summary (ESRS), and where gaps exist, develop an Environmental and Social Action Plan (ESAP) to close these gaps (E&S Review Procedure, 2006, para. 3.2.12);


• ensure that Annual Monitoring Reports (AMRs) provide adequate information to assess the client's performance against the requirements of the investment agreement and the Performance Standards; and that


• follow up to ensure that the root causes of serious incidents are being investigated and appropriate corrective action is taken to prevent reoccurrence (E&S Review Procedure, 2009, para 6.2.8).


At a more general level, CAO finds that this case demonstrates challenges in the assessment and supervision of PS2 risks that emerge from the nature of the relationships between an IFC client, its workers and the unions that represent them. Thus, in accordance with its Operational Guidelines, CAO will develop Terms of Reference for a compliance audit/investigation with regard to the following issues:


• whether IFC exercised due diligence in its review and supervision of the PS2 risks attached to the Project;

• whether IFC policies, procedures and staffing structures provide a robust framework for the advancement of the objectives of PS2 in its clients; and

• whether IFC policies and procedures provide sufficient guidance to staff on how to respond effectively to complaints regarding clients' E&S performance.


While CAO has assumed for the purposes of the current appraisal that the E&S review process should have been conducted under IFC's 2006 Sustainability Framework, this question will remain open as part of the compliance audit/investigation.



CAO's appraisal report and terms of reference for a compliance investigation are available at the link below. CAO has another case open under its compliance function related to IFC's investment in APPL. Details of that case (India/Tata Tea-02/Assam) can be found through the link at the bottom of this page. The terms of reference posted under this cover both cases.


The Compliance Investigation is ongoing. The CAO Compliance team completed a field visit to APPL plantations in August 2015, including meetings with workers and management. CAO is preparing its investigation report in relation to this case.


Status as of September 09, 2015

Project information

Project Name & Number
Tata Tea 25074
Amalgamated Plantations Private Limited (APPL)
South Asia
Environmental Category
$7.87m Equity

Case Tracker



  • Under Appraisal: Completed
  • Under Audit: In Process

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