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Nicaragua - Sugar Estates Limited S.A.

Complaint
In March 2008, the Center for International Environmental Law filed a complaint on behalf of communities in León and Chinandega, Nicaragua, regarding the impacts of Nicaragua Sugar Estates Limited (NSEL). The complaint raises concerns about impacts to the health, environment, and livelihoods of community members, and about IFC’s compliance with its Performance Standards, its Policy on Social and Environmental Sustainability, its Disclosure Policy, and its Environmental and Social Review Procedures. The complaint contains 673 signatures from residents of the two communities.  
   
Background

In October 2006, the IFC approved a $55 million loan to finance expansion of NSEL’s production and processing of sugarcane. The Project seeks to enable NSEL to acquire up to 2,482 hectares of additional land for sugarcane cultivation, improve efficiency and maximize capacity of its existing sugar mill, purchase equipment for mechanical harvesting and invest in plantation infrastructure and maintenance, install more efficient irrigation systems, and construct an ethanol plant to produce and export ethanol.

Eligibility

The complaint meets the required criteria for CAO assessment: 1) it pertains to an IFC/MIGA project, 2) the issue(s) raised in the complaint address the environmental and social impacts of IFC/MIGA investments, and 3) the complainant(s) would be affected if the social and/or environmental impacts raised in the complaint occurred.

Current Status

The CAO Ombudsman has undertaken an assessment of the complaint and will begin working with the parties to discuss options for resolution.

   

 

 

 

Last updated: 04/11/2008