CAO Cases

Arne Hoel, The World Bank

Latin America & the Caribbean

Haiti / Grupo M and CODEVI II-01/Zone Franche de Ouanaminthe

Complainant
Farmers from the Ouanaminthe Special Economic Zone
Date Filed
March 12, 2020
Concerns
Economic dislocation, loss of livelihood, waste management
Case Status
Open - Ombudsman
 

Synopsis

Project Overview 

IFC has an active project in Haiti with Grupo M and its fully owned subsidiary CODEVI, one of the largest garment manufacturing operations in the Central America and Caribbean region. The project supports CODEVI in an expansion program which consists of the construction of a new facility for the assembly of woven garments and the acquisition of specialized machinery for dry garment assembly and processing operations. The project will be undertaken in two new buildings to be constructed on land already owned by Grupo M at CODEVI.

 

 

Complaint 

The complaint was submitted to CAO by a local individual on behalf of 174 farmers’ households in the Special Economic Zone of Ouanaminthe. The complaint raises concerns regarding the economic displacement of the complainants due to CODEVI’s construction of their facilities in the Special Economic Zone in 2002. According to the complaint, despite commitments made in a ‘social compensation plan’, they have yet to receive their replacement land and did not obtain adequate compensation for their crops. The complaint also alleges improper waste disposal by CODEVI, leading to pollution.

 

 

CAO Action

CAO found the complaint eligible for further assessment in April 2020 and has begun an assessment of the complaint. 

 

 

Status

The assessment is ongoing.

 

Status as of May 8, 2020


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.


Project information

Institution
IFC
Project Name & Number
Grupo M and CODEVI II 34687
Department
Manufacturing & Services
Company
Grupo M SA
Sector
Garment and Apparel
Region
Latin America & the Caribbean
Country
Haiti
Environmental Category
B
Commitment
US $20 million A Loan and Internal cash generation

Case Tracker

Ombudsman

  • Eligible: Completed
  • Assessment Period: In Process

Compliance