IFC has an active project with Karot Power Company Limited (KPCL), a special-purpose vehicle incorporated in Pakistan and majority-owned by China Three Gorges South Asia Investment Limited (CSAIL). The project involves the construction, operation, and maintenance of a 720MW run-of-the-river hydropower plant being developed on the Jhelum River in Pakistan.

In August 2022, CAO received a complaint submitted by the president of one of the labor unions at the Karot Hydro Power Project, citing concerns related to lack of access to the project site to carry out his labor union activities and; lack of collaboration of the company to organize a referendum to elect the collective bargaining agent (CBA), which will represent the workers. 

In August 2022, CAO found the complaint eligible. At the complainants’ request, the case was referred to IFC, to address the issues raised in the complaint, in accordance to the CAO Policy (Para. 39). 

In December 2022, the complainants asked to resume the CAO process and end their engagement with IFC. CAO then conducted an assessment, completed in May 2023. During the assessment, both the complainant and KPCL expressed interest in participating in a CAO dispute resolution process to address the issues raised in the complaint.

The dispute resolution process began in May 2023. In July and August 2023, CAO facilitated in-person capacity-building sessions with the complainant and the company to prepare both parties for engagement in the process. 

The first joint session took place in October 2023, during which the parties reached an interim agreement on the complainant’s access to the project site to conduct labor union activities. Between October 2023 and December 2024, the complainant accessed the site on 11 occasions, meeting with KPCL’S management and engaging with workers.

In December 2024, the parties reached a full settlement agreement through dispute resolution and agreed that CAO would monitor its implementation for six months. The parties issued a Joint Statement, available in English.

On June 12, 2025, during the final monitoring session, the parties expressed their satisfaction with the agreement’s implementation and jointly agreed to close the case. The Dispute Resolution Conclusion Report is available in English and Urdu.