Egypt: Benban Solar-07
Former employee at the Benban Solar Park.
Labor issue; dismissal from employment.
From IFC, $225 million. From MIGA, 12 guarantees.
Benban Solar Park is a 36 square-kilometer area composed of 32 operational energy-generating power plants that are operated by different companies near the village of Benban in Egypt.
IFC is part of a consortium of nine international banks, providing a debt package totaling $653 million—of which $225 million is financed by IFC. This capital supports the construction of 13 of the 41 solar power plants that make up the Benban Solar Park.
MIGA is supporting either equity sponsors or lenders—and in some cases, both—in 12 active projects in the Benban Solar Park. Of these 12 projects, three are financed by the IFC-led consortium, and nine by a consortium led by the European Bank for Reconstruction and Development (EBRD).
On December 2 2022, CAO received a complaint from a former security guard from the SWAT Security and Guards Company, a subcontractor for the Benban Solar Park. The complainant alleged that despite working for SWAT for three years; he did not receive a contract renewal offer in a timely manner and was forced to resign. The complainant claims that this occurred as a reprisal for submitting a complaint through the grievance mechanism of the entity managing the Solar Park, Benban Solar Developers Association (BSDA).
CAO found the complaint eligible in December 2022 and completed the assessment process in April 2023.
The issues raised in the complaint were found to be eligible to open a case at CAO on December 2, 2022. CAO began an assessment of the issuses raised in the complaint on January 10, 2023.
During the assessment process, the complainant and the Benban Solar Park representatives expressed an interest in engaging in a CAO dispute resolution process to address the issues raised in the complaint. In accordance with the CAO Policy, the case will now be handled by CAO’s Dispute Resolution function.
The assessment report is available in English and Arabic in the "Case Documents" section below.
The dispute resolution process is ongoing.
Status as of April 11, 2023.