Colombia: Alqueria-01/Cajicá

Date Filed
11 Apr 2013
Status
Open
Phase
Dispute Resolution (DR)
Country
Colombia

Case Tracker

Eligibility
Eligibility
Assessment
Assessment
Dispute Resolution
Mediation
Monitoring
Compliance
CURRENT Status
Mediation (DISPUTE RESOLUTION)

Complaint Overview

Complainant

Family association, owners of an adjacent farm

Concerns

Environmental pollution (water, soil, noise and air)

Cross-Cutting Issues
Resource Efficiency Biodiversity Air Land Water

Project Information

Region
Latin America & the Caribbean
Institution
IFC
Name & Number
Alqueria 28492
Company
Alqueria
Sector
Agribusiness
Department
Manufacturing, Agribusiness & Services
Category
B
Commitment

$15 million A loan and $5 million equity

Synopsis

Project Overview

Alqueria is the third-largest dairy company in Colombia. It processes milk and sub-products into dairy products such as UHT milk, flavored milk, cream and yoghurt (through a joint venture with Danone), as well as fruit beverages from concentrate. IFC has extended a $15 million A loan and $5 million in equity to expand production capacity across the company’s plants; to incur capital expenditure aimed at gaining efficiencies and cost reduction; and to generate incremental working capital.

Complaint

In April 2013, a complaint was lodged by owners of a farm adjacent to the company’s plant in Cajica raising concerns related to pollution, include industrial discharges to rivers and other local water resources, soil pollution, noise pollution, inadequate disposal of toxic residues, and air emissions.

CAO Action

CAO found the complaint eligible for further assessment in April 2013 and an assessment was conducted in July 2013. Based on discussions held with the stakeholders during the CAO Assessment, the complainants and company agreed to work with CAO's Dispute Resolution function to try to resolve the issues raised in the complaint using a collaborative approach. The assessment process is documented in CAO's Assessment Report, which is available, along with IFC's response, under the "Case Documents" section below this page.}

The parties have been actively engaged in a CAO dispute resolution process to address the complaint since September 2013. In June 2017, Alqueria reached an agreement with the owners of the Golpe de Agua farm, which is adjacent to the  Alqueria plant, addressing the issues raised in the complaint. CAO is overseeing the implementation of the signed agreement, which is confidential at the choice of the parties. Since December 2017, the parties have been following up closely on progress made regarding noise mitigation measures, including structured engineering for implementation of those measures.

CAO has been in contact with the parties to follow up on the commitments. Some operational challenges—coupled with the impact of the pandemic and social unrest in Colombia—contributed to delays in the implementation of the agreement in recent years. Due to internal changes, a new team took over the case in November 2021. Between November 27 and December 3, 2021, CAO undertook a trip to Bogota and Cajica to hold meetings with the parties, visit the plant and farm, and facilitate a joint monitoring meeting. As a result of the trip, the parties renewed their commitment to move forward with the prompt implementation of the agreed actions regarding noise mitigation and agreed upon the next steps.

Status

CAO is monitoring the implementation of the signed agreement, which is confidential at the parties' request. In November 2021, CAO facilitated a meeting during which the Parties renewed their commitment to move forward with the implementation of the agreed actions regarding noise mitigation and agreed on the next steps. Several joint meetings have taken place with the parties in the last few months to move the process forward.

 

Status as of February 7, 2022

Case Documents

  • Complaint & Assessment

    Complaint
    Letter of Complaint, Alqueria, Colombia
    Apr 10, 2013
    English
    Letter of Complaint, Alqueria, Colombia
    Assessment Report(s)
    CAO Assessment Report
    Aug 01, 2013
    English
    CAO Assessment Report
    CAO Assessment Report
    Aug 01, 2013
    Spanish
    CAO Assessment Report
    Alqueria Project #28492, IFC Response
    Sep 01, 2013
    English
    Alqueria Project #28492, IFC Response