Jordan: Masdar Baynouna-01/East Amman

Date Filed
11 Feb 2020
Status
Open
Phase
Dispute Resolution (DR)
Country
Jordan

Case Tracker

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

Complaint Overview

Complainant

Community member

Concerns

Environmental & social management, stakeholder engagement and redress, livelihood, employment

Cross-Cutting Issues
Risk Management Community Health and Safety Coercion

Project Information

Region
Middle East & North Africa
Institution
IFC
Name & Number
Masdar Jordan 39339
Company
Baynouna Solar Energy Company
Sector
Infrastructure
Department
Infrastructure
Category
B
Commitment

US$97.25 million A and B loans

Synopsis

Project Overview

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.

Complaint

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 Action

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.

Status

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

Case Documents

  • Dispute Resolution

    Complaint
    Complaint Jordan: Masdar Baynouna-01
    Feb 01, 2020
    English
    Complaint Jordan: Masdar Baynouna-01
    Assessment Report(s)
    CAO Assessment Report Jordan
    Aug 01, 2020
    English
    CAO Assessment Report Jordan
    CAO Assessment Report Jordan
    Aug 01, 2020
    Arabic
    CAO Assessment Report Jordan
    IFC Formal Response - Jordan
    Aug 01, 2020
    English
    IFC Formal Response - Jordan