Egypt: Egyptian Indian Polyester Company- Sokhna-02
Labor- unpaid wages
$35 million A Loan
The IFC project with the Egyptian Indian Polyester Company (EIPET) comprises the establishment of a 420,000 tons per annum greenfield Polyethylene Terephthalate (PET) resin plant in the Eldorado Integrated Development and Free Zone S.A.E. in Ain Sokhna, Egypt. EIPET is a joint venture between South Asian Petrochem Limited (SAPL), an Indian based manufacturer of PET which merged with its holding company Dhunseri Tea & Industries, and the Egyptian Petrochemical Holding Company (Echem), an agency of the Government of Egypt. IFC’s commitment to the project is $35 million A Loan.
In August 2017, CAO received a complaint from a former worker of EIPET raising concerns about unpaid wages and the company’s obligations to fulfill the terms of his consultancy contract, particularly with regards to due notice and termination.
CAO found the complaint eligible for further assessment in October 2017, and initiated its assessment. During CAO’s assessment of the complaint, the parties agreed to engage in a dialogue process to address the issues. CAO Assessment Report is available under “View Documents” below.
As a result of CAO’s dispute resolution process, the parties reached an agreement in July 2018 to address the issues of concern raised in the complaint. The agreement has been kept confidential at the parties’ request. CAO monitored the full implementation of the agreement.
Upon completion of the monitoring phase, CAO issued a conclusion report in January 2019 which summarizes the dispute resolution process and marks the closure of the case. See “View Documents” for documents related to this case.
Status as of January 15, 2019.