Ecuador: Pronaca Covid-01

Date Filed
05 Apr 2025
Status
Open
Phase
Assessment
Country
Ecuador

Case Tracker

Eligibility
April 06, 2025-April 29, 2025
Eligibility
Assessment
Status as of April 30, 2025
Assessment
Dispute Resolution
Compliance
CURRENT Status
Assessment
Status as of April 30, 2025

Complaint Overview

Complainant

Community members, and Confederación de Nacionalidades Indígenas del Ecuador (CONAIE) 

Concerns

Water contamination from the client's wastewater discharges; air pollution; community health and safety risks; impacts on Indigenous communities; livelihood impacts; and a lack of information.

Cross-Cutting Issues
Air

Project Information

Region
Latin America & the Caribbean
Institution
IFC
Name & Number
IFC Project No. 41934
Company
Procesadora Nacional de Alimentos, C.A. (PRONACA)
Sector
Agribusiness & Forestry
Category
B
Commitment

USD $50 million A Loan 

Synopsis

Project Overview

PRONACA is one of the largest food producers in Ecuador, operating an integrated supply chain that includes feed production, animal farming, meat processing, and distribution to retailers and consumers. The stated objective of IFC’s financing was to provide liquidity to PRONACA during the COVID-19 pandemic to help sustain its operations and employment, thereby supporting food security in Ecuador. Specifically, IFC’s loan was intended to fund the company’s working capital requirements, as well as selective capital expenditures necessary to maintain and expand PRONACA’s production, processing, storage, and distribution capacity, with a focus on its pork and poultry business lines.

According to IFC’s public disclosures, PRONACA operates through an extensive footprint of more than 115 sites, including farms, processing plants, storage facilities, and distribution centers, which are spread across approximately 10 provinces in Ecuador.

Complaint

In April 2025, CAO received a complaint filed by individuals living near the project sites, along with CONAIE (Confederación de Nacionalidades Indígenas del Ecuado), an organization representing Indigenous communities in Ecuador. The complaint was also submitted with support from the Coordinadora Ecuatoriana para la Defensa de la Naturaleza y del Ambiente (CEDENMA), the Bank Information Center (BIC), and Friends of the Earth (FOE).

The community members raised concerns related to water contamination from the client’s wastewater discharges; air pollution caused by odors from the client’s farms; community health and safety risks; impacts on Indigenous communities; livelihood impacts due to effects on the tourism industry; and a lack of information sharing by IFC and the client regarding their operations, among other issues.

Action

In April 2025, CAO found the complaint eligible and initiated an assessment.

Status

The case is under assessment.

Status as of June 25, 2025

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