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 providing a long-term corporate A loan facility of up to US$100 million to support the construction, operation, and maintenance of a 720MW run-of-the-river hydropower plant being developed on the Jhelum River in Pakistan. According to IFC, preconstruction started in early 2016, and project construction commenced formally in December 2016. KPCL appointed two companies to act as the EPC contractor: TGDC, responsible for engineering and construction, and China Machinery Engineering Corporation (CMEC) responsible for procurement. The project achieved commercial operations on June 29, 2022.

In February 2026, CAO received a complaint from a former employee of TGDC who was working at KPCL’s facilities. The complaint raises concerns about restrictions on workers’ freedom of movement at the KPCL project site, revocation of site access resulting in early termination of employment, ineffective grievance mechanism and discriminatory treatment.

In May 2026, CAO found the complaint eligible for assessment. During the assessment process, there was no agreement between the parties to proceed with a CAO-facilitated dialogue process. In accordance with the CAO Policy, the case was transferred to the Compliance function for appraisal to determine whether an investigation of IFC’s environmental and social performance is warranted in relation to the issues raised in the complaint. The Assessment Report is available in English.