CAO Cases

Arne Hoel, The World Bank

Middle East & North Africa

Egypt / Alex Dev Ltd-01/Wadi al-Qamar

Complainant
Confidential
Date Filed
April 09, 2015
Concerns
Pollution, community health and safety, labor issues, compliance with national legislation and IFC standards, EIA, consultation and information disclosure
Case Status
Open - Compliance
 

Synopsis

Complaint 

Titan Group, an existing IFC client, is seeking to expand its Egyptian operations, which consist of two entities: Beni Suef Cement Company (BSCC) and Alexandria Portland Cement Company (APCC). The plants have a combined production capacity of 3.5 million tons per annum (mtpa) and are engaged in an investment program to add a second integrated cement production line of 1.5 mtpa in BSCC and various debottlenecking investments in both plants.

 

According to IFC, the project with Titan Group for the expansion of their cement manufacturing in Egypt (#27022) was a EUR 80 million equity investment in Titan’s investment holding company Alexandria Development Limited (ADL).

 

In April 2015, a complaint was lodged with CAO by Wadi al-Qamar community members who live in close proximity to APCC along with current or former employees of APCC through the Egyptian Initiative for Personal Rights (EIPR), a local NGO. The complaint raises issues regarding the proximity of the plant to residential areas and the effects plant pollution has on community health and safety.  Other issues raised include compliance with national legislation, labor issues, and lack of information disclosure and community consultation, among others.

 

CAO Action

CAO found the complaint eligible for further assessment in April 2015 and an assessment trip was conducted in September 2015. During the assessment there was a lack of consensus amongst the parties to engage in a CAO facilitated dispute resolution process. In accordance with CAO’s Operational Guidelines, the case was referred to CAO’s Compliance function.

 

A compliance appraisal was completed in July 2016. The appraisal concludes that the complaint raises substantial issues related to IFC's appraisal and supervision of the environmental and social impacts of the project. CAO found that a compliance investigation is warranted, and the Terms of Reference for the compliance investigation were published on September 2, 2016.  In January 2017, CAO released a communique outlining its investigation process, including a CAO site visit to Egypt which happened in the same month.

 

All documents relating to this case are available under "View Documents" below.

 

Status

The compliance investigation is underway.

 

Status as of November 9, 2017

Project information

Institution
IFC
Project Name & Number
Alex Dev Ltd 27022
Department
Global Manufacturing & Services
Company
Alexandria Development Limited (ADL)
Sector
Manufacturing
Region
Middle East & North Africa
Country
Egypt
Environmental Category
B
Commitment
80 million euros

Case Tracker

Ombudsman

  • Eligible: Completed
  • Assessment Period: Transferred

Compliance

  • Under Appraisal: Completed
  • Under Audit: In Process