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Kazakhstan - Karachaganak I (LUKoil Overseas)

Issue

On August 30, 2006, CAO Ombudsman closed the mediation of the Karachaganak complaint dated September 10, 2004 and transferred it to CAO Compliance for appraisal.

CAO Compliance concluded in its appraisal report dated April 17, 2007, that the issue regarding IFC compliance with its requirements related to emissions to air merited an audit.  The audit was commissioned on June 1, 2007 and audit report published on April 25, 2008.

Background

The CAO received a complaint regarding the impact of the Karachaganak project on villagers’ health and quality of life, particularly related to the effects of emissions to air and quality of drinking water. The complaint was filed by villagers in Berezovka, Kazakhstan.

CAO Findings

CAO Compliance determined that the issue related to emissions to air fulfilled the criteria for further investigation in the form of an audit of IFC. CAO Compliance determined that the other issues related to the complaint did not fulfill the criteria for further investigation in the form of an audit.

The audit report, published on April 25, 2008, found IFC to be out of compliance:

Stack emissions: The audit found the monitoring program and data reported on stack emissions insufficient in order to verify compliance with IFC requirements.

Ambient air quality: The audit found the monitoring program and data reported on ambient air quality insufficient in order to verify compliance with IFC requirements.

The full audit and appraisal reports are available below.

Current Status

In cases where IFC is found to be out of compliance, CAO Compliance will keep the audit open and monitor the situation, until actions taken by IFC assure the CAO that IFC will move back into compliance.

The audit remains open and will be monitored by the CAO. The CAO will make public any change in the status of the audit.

Documents

CAO Audit of IFC, Karachaganak Project, Case of Residents in the Village of Berezovka

English/pdf; Russian/pdf

IFC Formal Response to CAO Audit Report, Karachaganak Project

English/pdf; Russian/pdf

CAO Appraisal for Audit of IFC, Karachaganak Project, Case of Residents in the Village of Berezovka

English/pdf; Russian/pdf

Terms of Reference for Audit of IFC, Karachaganak Project, Case of Residents in the Village of Berezovka

English/pdf

Last updated: 04/30/2008