Jordan: Masdar Baynouna-01/East Amman
Environmental & social management, stakeholder engagement and redress, livelihood, employment
According to IFC, Baynouna Solar Energy Company (the Company) is mandated to develop, finance, construct, operate and maintain a greenfield renewable project in Jordan with a capacity of 200MWac, approximately 242 MWp solar photovoltaic (PV) plant 30km southeast of Amman, Jordan (the Project). The Company signed a Power Purchase Agreement to sell all electricity generated by the PV plant, with the Jordanian National Electric Power Company (NEPCO) for a 20 year period. IFC’s investment consists of senior A and B loans of up to US$97.25 million to the Company to support the development, financing, construction, operation, and maintenance of the Baynouna PV plant. Baynouna’s majority shareholder is renewable energy company Masdar, which holds 70% interest in the company.
In February 2020, CAO received a complaint from a local community member in East Amman, Jordan, regarding IFC’s investment in the Project. The complaint raises a wide range of environmental and social concerns in relation to the Project, including how the Company carried out and implemented the stakeholder engagement plan (SEP), the Environmental and Social Impact Assessment (ESIA), and the Environmental and Social Management System (ESMS). Additional issues raised in the complaint relate to the Company’s failure to set up an effective project-level grievance mechanism, to appoint a “Community Liaison Officer” selected by the community members, and to provide employment opportunities and livelihood restoration to the local community.
CAO found the complaint eligible in March 2020 and began 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 Arabic under "View Documents" below.
A dispute resolution process is underway.
Note: A CAO assessment does not entail a judgment on the merits of complaints. Rather, the aim is to listen to people's concerns, understand the different perspectives, and determine what options are available to address the complaint through CAO's Dispute Resolution and Compliance functions.
Status as of September 15, 2020