Chile: Sociedad Hidromaule-01/San Clemente

Date Filed
27 Oct 2014
Status
Closed
Phase
Compliance
Country
Chile

Case Tracker

Eligibility
Eligibility
Assessment
Transferred
Assessment
Dispute Resolution
Compliance
Appraisal
Closed
CURRENT Status
Appraisal (COMPLIANCE)
Closed

Complaint Overview

Complainant

Members of the Rodriguez family

Concerns

Land acquisition process, compensation, due diligence

Cross-Cutting Issues
Risk Management Land Resettlement Land

Project Information

Region
Latin America & the Caribbean
Institution
IFC
Name & Number
Hidromaule 25568
Company
Hidromaule S.A
Sector
Infrastructure
Department
Infrastructure
Category
B
Commitment

US$ 9.7 million A Loan

Synopsis

Complaint

IFC has an active project with Hidromaule S.A., a start-up hydropower generation company owned by an Italian-Chilean consortium of professionals with experience in the hydropower generation industry. The company’s initial project, Lircay, is a 20 Megawatt run-of-river hydropower project located along the Lircay River in the VII Region of Chile, approximately 30 km to the northeast of the city of Talca. 

The complaint was submitted to CAO filed by a local individual on behalf of himself and several members of his family.  The complaint raises concerns about the land acquisition process in the Lircay project, claiming that some owners were not properly recognized or compensated for two tracts of land used for the project. Irregularities around the land acquisition and environmental permitting processes are also cited.

CAO Action

CAO found the complaint eligible for further assessment in November 2014. During the assessment, although the complainants expressed willingness to engage in a CAO facilitated dispute resolution process, the Company however indicated a preference for the case to be handled by CAO Compliance function. In accordance with CAO's Operational Guidelines, the case was referred to CAO Compliance for appraisal of IFC's environmental and social performance with regard to the project. 

In June 2015, CAO published a Compliance appraisal report regarding IFC's investment in Hidromaule. CAO has determined that an investigation was not merited and has closed the case.

Status

CAO's Compliance appraisal report, providing a full description of CAO's decision with regard to this case, is available under "View Documents" below. As of June 25, 2015, CAO has closed the case with no further action.

Status as of June 25, 2015

Case Documents

  • Dispute Resolution

    Complaint
    Hidromaule-01 Complaint
    Dec 01, 2014
    Spanish
    Hidromaule-01 Complaint
    Assessment Report(s)
    CAO Assessment Report Hidromaule
    May 01, 2015
    English
    CAO Assessment Report Hidromaule
    CAO Assessment Report Hidromaule
    May 01, 2015
    Spanish
    CAO Assessment Report Hidromaule
    IFC Formal Response to Hidromaule Assessment
    Apr 28, 2015
    English
    IFC Formal Response to Hidromaule Assessment
  • Appraisal Report(s)
    CAO Compliance Appraisal Report Hidromaule
    Jun 25, 2015
    English
    CAO Compliance Appraisal Report Hidromaule
    CAO Compliance Appraisal Report Hidromaule
    Jun 25, 2015
    Spanish
    CAO Compliance Appraisal Report Hidromaule