Haiti: Grupo M and CODEVI II-01/Zone Franche de Ouanaminthe

Date Filed
12 Mar 2020
Status
Open
Phase
Compliance
Country
Haiti

Case Tracker

Eligibility
Eligibility
Assessment
Assessment
Dispute Resolution
Dispute Resolution
Compliance
Appraisal
October 19, 2023-April 17, 2024
Investigation
Status as of April 17, 2024
CURRENT Status
Investigation (COMPLIANCE)
Status as of April 17, 2024

Complaint Overview

Complainant

Farmers from the Ouanaminthe Special Economic Zone.

Concerns

Economic dislocation, loss of livelihood, waste management.

Cross-Cutting Issues
Risk Management Land Resettlement Land Social Order / Conflict Unfulfilled Commitments Loss of Livelihoods Access to Information Policy

Project Information

Region
Latin America & the Caribbean
Institution
IFC
Name & Number
Grupo M and CODEVI II 34687
Company
Grupo M SA
Sector
Manufacturing
Department
Manufacturing, Agribusiness & Services
Category
B
Commitment

US $20 million A Loan and Internal cash generation

Synopsis

Project Overview

At the time CAO received the complaint, IFC had an active project in Haiti with Grupo M and its fully owned subsidiary CODEVI – one of the largest garment manufacturing operations in the Central America and Caribbean region. The project supported CODEVI in an expansion program that included the construction of a new facility for the assembly of woven garments and the acquisition of specialized machinery for dry garment assembly and processing operations. The project was to be undertaken in two new buildings to be constructed on land already owned by Grupo M at CODEVI.

Complaint

In March 2020, a complaint was submitted to CAO in relation to the project by a local individual on behalf of 174 farmers’ households residing in and near Ouanaminthe, Haiti. The complaint raised concerns regarding the economic displacement of the complainants due to CODEVI’s construction of their facilities in 2002. According to the complaint, despite commitments made in a ‘social compensation plan’, they had yet to receive the replacement land committed to them and had not obtained adequate compensation for their losses. The complaint also alleged improper waste disposal by CODEVI, leading to pollution.

Action

In April 2020, CAO found the complaint eligible and conducted an assessment. During the assessment, the complainants and the company agreed to engage in a voluntary dialogue process to try to resolve the dispute.

Throughout 2021, CAO engaged the parties in several online activities, including technical training for the complainants, capacity-building sessions to clarify questions related to the dispute resolution process, and the use of technology in the process. The parties initiated a discussion about the ground rules to guide their engagement, which were first discussed separately and online in early 2022.

Once COVID-19 travel restrictions and security measures were lifted, CAO met with the parties in person in May 2022 and facilitated bilateral and joint meetings. During these meetings, the parties continued their conversations regarding the content of the ground rules document but were unable to reach agreement on that matter. From June 2022 to April 2023, CAO continued to work with the parties virtually to discuss the areas of disagreement.

Despite the parties' efforts to resolve the issues raised in the complaint, the parties could not reach an agreement. At the request of the complainants, and in accordance with the CAO Policy, in October 2023 the case was transferred to CAO’s Compliance function for appraisal. The Dispute Resolution Conclusion Report is available in English and Creole.

In April 2024, CAO completed its compliance appraisal. The appraisal report is available in English and Creole.

Status

The case is now under compliance investigation. 

Status as of April 17, 2024.

Case Documents

  • Complaint
    Letter of Complaint
    Mar 12, 2020
    English
    Letter of Complaint
    Assessment Report
    Assessment Report
    Dec 01, 2020
    English
    Assessment Report
    Assessment Report
    Dec 01, 2020
    Haitian Creole
    Assessment Report
    IFC Response to CAO Assessment Report
    Dec 01, 2020
    English
    IFC Response to CAO Assessment Report
  • Conclusion Report
    Conclusion Report
    Oct 19, 2023
    English
    Conclusion Report
    Conclusion Report
    Oct 19, 2023
    Haitian Creole
    Conclusion Report
  • Compliance

    Appraisal Report
    Compliance Appraisal Report
    Apr 01, 2024
    English
    Compliance Appraisal Report
    Compliance Appraisal Report
    Apr 01, 2024
    Haitian Creole
    Compliance Appraisal Report
  • Mailchimp Survey

     

    We Value Your Feedback

    Thank you for visiting CAO’s new website. Help us improve your experience by taking our short survey.

    Give Feedback No thanks