Compliance Advisor Ombudsman

Complaint

Nicaragua Sugar Estates Limited (NSEL) is the owner of an agro-energy complex located northwest of Managua, in the department of Chinandega. This IFC-financed project seeks to expand NSEL’s production and processing of sugarcane. In March 2008, the Center for International Environmental Law lodged a complaint with CAO on behalf of 673 residents of communities in the departments of León and Chinandega and former NSEL employees. The complaint raised the following concerns:

1. Health impacts on local communities including Chronic Renal Insufficiency (CRI) & respiratory problems as a result of sugarcane burning;

2. Labor and working conditions such as rights of association and restrictions to forming a union;

3. Inappropriate land acquisition in relation to indigenous communities;

4. Offsite environmental impacts including water contamination, air pollution and pesticide effluence;

5. IFC compliance with performance standards, policies and procedures.

CAO Action

Since February 2009, CAO has convened a dialogue table which is using a collaborative process to address the concerns of community members and NSEL.  The parties have so far agreed on a framework to support an independent study to investigate the cause of CRI and explore options to improve care for those suffering of CRI in Chichigalpa. Alongside the dialogue table, CAO has assisted community members from Goyena and Abangasca to address concerns together with the company.

CRI scoping study

A critical concern for the parties was to understand the cause of CRI through a credible and independent investigation. Therefore, CAO facilitated an open, competitive selection process with the dialogue participants, who selected Boston University by consensus to conduct a scoping study. The study, which Boston University presented to the parties in December 2009, concluded that there was some association between some occupations (including agriculture and mining) and the prevalence of CRI in the Pacific zone of Nicaragua. It is not known whether this association is causal.

In early 2010, after the parties agreed on next steps regarding the scientific work, Boston University started implementation of suggested activities.

Improved care for the community

The parties have continued to meet at the dialogue table to discuss how best to address the medical needs of community members suffering of CRI. Since June 2009, NSEL has committed to provide up to 1,800 members of ASOCHIVIDA with basic food provision, as well as educational packages for over 1,545 children. This support will be given for two years.  In addition, a business development expert has been providing support to the parties since January 2010 to help identify income generating activities.

Status

Participants of the dialogue table on CRI are due to meet in Leon, Nicaragua, September 1-2, 2010, to further discuss recommendations and conclusions of Boston University's Industrial Hygiene/Occupational Health Assessment, which was presented to participants on August 30, 2010. The scientific team will discuss the assessment with the parties, address questions, and agree jointly on next steps. A facilitator’s summary of the meeting will be available shortly after.

Click below to view the full Boston University health assessment, "Evaluating Potential Hazards Associated with Chemicals and Work Practices at the Ingenio San Antonio (Chichigalpa, Nicaragua)".