CAO Cases

Arne Hoel, The World Bank

Latin America & the Caribbean

Colombia / Alqueria-01/Cajica

Complainant
Family association, owners of an adjacent farm
Date Filed
April 11, 2013
Concerns
Environmental pollution (water, soil, noise and air)
Case Status
Open - Ombudsman
 

Synopsis

Complaint
Alqueria is the third-largest dairy company in Colombia. It processes milk and sub-products into dairy products such as UHT milk, flavored milk, cream and yoghurt (through a joint venture with Danone), as well as fruit beverages from concentrate. IFC has extended a $15 million A loan and $5 million in equity to expand production capacity across the company’s plants; to incur capital expenditure aimed at gaining efficiencies and cost reduction; and to generate incremental working capital.

 

In April 2013, a complaint was lodged by owners of a farm adjacent to the company’s plant in Cajica raising concerns related to pollution, include industrial discharges to rivers and other local water resources, soil pollution, noise pollution, inadequate disposal of toxic residues, and air emissions.

 

Action
CAO found the complaint eligible for further assessment in April 2013 and an assessment was conducted in July 2013. Based on discussions held with the stakeholders during the CAO Assessment, the complainants and company agreed to work with CAO's Dispute Resolution function to try to resolve the issues raised in the complaint using a collaborative approach. The assessment process is documented in CAO's Assessment Report, which is available, along with IFC's response, under "View Documents" below.


The parties have been actively engaged in a CAO dispute resolution process to address the complaint since September 2013. In June 2017, Alqueria reached an agreement with the owners of the farm Golpe de Agua, which is adjacent to the company’s operations, addressing the issues raised in the complaint. CAO is overseeing the implementation of the signed agreement, which is confidential at the choice of the parties. In December 2017, the parties agreed to hold monthly meetings to learn about and discuss progress made. They have held three monitoring meetings since, and in the next monthly monitoring meeting the parties will learn about the detailed engineering design to implement noise mitigating measures 

  

Status
CAO is overseeing the implementation of the agreement signed by the parties, which is confidential at the choice of the parties. In December 2017, the parties agreed to hold monthly meetings to learn about and discuss progress made. They have held three monitoring meetings since.

 

Status as of March 19, 2018

Project information

Institution
IFC
Project Name & Number
Alqueria 28492
Department
Global Manufacturing & Services
Company
Alqueria
Sector
Agribusiness
Region
Latin America & the Caribbean
Country
Colombia
Environmental Category
B
Commitment
$15 million A loan and $5 million equity

Case Tracker

Ombudsman

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

Compliance