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

Date Filed
12 Mar 2020
Status
Open
Phase
Dispute Resolution (DR)
Country
Haiti

Case Tracker

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

Complaint Overview

Complainant

Farmers from the Ouanaminthe Special Economic Zone

Concerns

Economic dislocation, loss of livelihood, waste management

Cross-Cutting Issues
Land Resettlement Land Social Order / Conflict Loss of Life Loss of Livelihoods

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

IFC has 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 supports CODEVI in an expansion program which consists of 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 will be undertaken in two new buildings to be constructed on land already owned by Grupo M at CODEVI.

Complaint

The complaint was submitted to CAO by a local individual on behalf of 174 farmers’ households in the Special Economic Zone of Ouanaminthe. The complaint raises concerns regarding the economic displacement of the complainants due to CODEVI’s construction of their facilities in the Special Economic Zone in 2002. According to the complaint, despite commitments made in a ‘social compensation plan’, they have yet to receive their replacement land and did not obtain adequate compensation for their crops. The complaint also alleges improper waste disposal by CODEVI, leading to pollution.

CAO Action

CAO found the complaint eligible in April 2020 and conducted an assessment of the complaint. During the assessment, the Complainants and the Company agreed to engage in a voluntary dialogue process to try and resolve the dispute. CAO’s assessment report is available in English and Creole under "View Documents" below.

Status

A dispute resolution process in underway.

Status as of January 20, 2020

Case Documents

  • Dispute Resolution

    Complaint
    Haiti / Grupo M and CODEVI II-01
    Mar 12, 2020
    English
    Haiti / Grupo M and CODEVI II-01
    Assessment Report(s)
    CAO Assessment Report - Haiti
    Dec 01, 2020
    English
    CAO Assessment Report - Haiti
    CAO Assessment Report - Haiti
    Dec 01, 2020
    Creole
    CAO Assessment Report - Haiti
    IFC Formal Response
    Dec 01, 2020
    English
    IFC Formal Response