Cambodia: PSBC-02

Date Filed
22 Aug 2023
Status
Open
Phase
Compliance
Country
Cambodia

Case Tracker

Eligibility
August 22, 2023-November 16, 2023
Eligibility
Assessment
November 17, 2023-May 23, 2024
Assessment
Dispute Resolution
Compliance
Appraisal
Status as of May 29, 2024
CURRENT Status
Appraisal (COMPLIANCE)
Status as of May 29, 2024

Complaint Overview

Complainant

Confidential

Concerns

Social and Environmental Impacts

Cross-Cutting Issues
Land Resettlement Loss of Livelihoods

Project Information

Region
East Asia & the Pacific
Institution
IFC
Name & Number
IFC Project #35461
Company
Postal Savings Bank of China PSBC
Sector
Financial Markets
Category
FI
Commitment

USD$56.6m equity investment 

Synopsis

Project Overview

The PSBC Equity Project comprises an IFC investment in the Postal Savings Bank of China (PSBC) to promote financial services to communities, Small and Medium-sized Enterprises (SMEs), and Agriculture/Rural/Farmers (ARF) customers.

Complaint

In August 2023, CAO received a complaint in relation to a range of social and environmental impacts regarding the Lower Sesan 2 Hydropower project in Cambodia.

The complaint alleges that PSBC is exposed to the Lower Sesan Dam through financial links with Huaneng Lancang River Hydropower. According to the complaint, Lower Sesan 2 is 51% owned by Hydro Lancang International Energy, which is wholly owned by Huaneng Lancang River Hydropower.

CAO Action

In November 2023, CAO found the complaint eligible for assessment. In February 2024, in accordance with Paragraph 56 (2) of the CAO Policy, CAO Management granted an extension of the assessment deadline until May 23, 2024.

During the assessment process, the complainants expressed interest in a CAO-facilitated dialogue with the Lower Sesan 2 Project owner. On their end, PSBC disagreed with CAO’s eligibility decision and expressed that there were no material financial links between PSBC and Hydro Lancang International Energy, the project owner. However, they were open to CAO contacting the project owner and did not oppose CAO facilitating a dialogue process between the project owner and the complainants. CAO's attempts to contact the project owner were unsuccessful. As a result, the case will proceed to a compliance appraisal to determine if a compliance investigation is warranted.

The Assessment Report is available in English and Khmer.

Status

The case is currently in compliance appraisal.

Status as of March 29, 2024.

Case Documents

  • Complaint & Assessment

    Assessment Report
    Assessment Report
    May 29, 2024
    English
    Assessment Report
    Assessment Report
    May 29, 2024
    Khmer
    Assessment Report
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