CAO Cases

Arne Hoel, The World Bank

Sub-Saharan Africa

Uganda / Bidco Bev. & Det.-03/ Kalangala

Complainant
National Association of Professional Environmentalists (NAPE)
Date Filed
January 13, 2017
Concerns
Environmental damage, compensation for expropriated land and loss of livelihood.
Case Status
Closed
 

Synopsis

Project Overview
IFC has an active project with Bidco Africa, a Kenyan private limited liability company, which is one of East Africa’s leading manufacturers and distributors of fast moving consumer goods. The loan of up to US$36.5 million will support the US$46 million expansion of Bidco Africa. Specifically, the proceeds of the loan will be used for the construction and operation of new facilities to expand Bidco’s production capacity in Kenya.

 
Complaint

The complaint was filed by the National Association of Professional Environmentalists (NAPE) on behalf of the Bugala Farmers, located in the Kalangala District, Bugala Island, Lake Victoria, Uganda. The complaint raises concerns about Bidco Africa's operations in Uganda, through Bidco Uganda and Oil Palm Uganda Ltd (OPUL), a subsidiary of Bidco Uganda. The concerns relate to environmental damage, due to deforestation for the purposes of growing palm oil plantations, compensation for expropriated land, impacts on agricultural activities, and loss of livelihood.  


CAO Action
During assessment, the complainants and the company stated their preference to engage with one another through CAO-facilitated dialogue, therefore the complaint was referred to CAO’s Dispute Resolution function. As a result of CAO’s dispute resolution process, the parties reached an agreement in August 2017 to address the complaint issues. The agreement has been kept confidential at the parties’ request.

CAO monitored the implementation of the agreement, as agreed by the parties, and upon completion of the monitoring phase, CAO issued a conclusion report in January 2018. The report summarizes the dispute resolution process, and marks the closure of the case. See “view documents" for documents related to this case.

 

Status
The case is now closed following monitoring of the agreement reached by the parties.

 
Status as of March 6, 2018



Project information

Institution
IFC
Project Name & Number
Bidco Bev & Det 33385
Department
Global Manufacturing & Services
Company
BIDCO AFRICA LIMITED
Sector
F-Al - Other food
Region
Sub-Saharan Africa
Country
Kenya
Environmental Category
B
Commitment
US$23 million A loan and up to $13.5 million B loa

Case Tracker

Ombudsman

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

Compliance