Jordan: Masdar Baynouna-01/East Amman

Date Filed
11 Feb 2020
Status
Open
Phase
Compliance
Country
Jordan

Case Tracker

Eligibility
Eligibility
Assessment
Assessment
Dispute Resolution
Mediation
September 09, 2020-February 08, 2022
Compliance
Appraisal
February 11, 2022-May 10, 2022
CURRENT Status
Mediation (DISPUTE RESOLUTION)
September 09, 2020-February 08, 2022

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 the assessment section in the "Case Documents" section below this page. 

Despite the efforts of all parties involved to resolve the issues raised in this complaint, a final agreement was not reached. In February 2022, CAO released a conclusion report and transferred the case to Compliance. The conclusion report is available in Arabic and English under the Dispute Resolution section of the "Case Documents" section below this page. 

A compliance appraisal process was completed under the CAO Policy and the report was finalized on May 10, 2022. CAO has determined that a compliance investigation is warranted regarding the issues raised in the complaint, particularly concerning land-based livelihoods and access to land and natural resources, among other issues.

Status

CAO has concluded its compliance appraisal process with a decision to conduct a compliance investigation in response to the complaint. Following the CAO Policy, IFC management may request that the Board of IFC review CAO’s decision to investigate the case within 10 business days from the date the appraisal report was circulated, which was May 12, 2022. If a request to review is received from IFC, CAO will post a notice on this page, stating that its decision to investigate is subject to the review of the IFC Board. The review request or the appraisal report will not be published until the Board review process is complete. If IFC management does not file a review request within this period, CAO will publish the appraisal report and proceed with the investigation.

 

Status as of May 13, 2022

Case Documents

  • Complaint & Eligibility

    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
  • Conclusion Report
    DR Conclusion Report - Jordan Masdar
    Feb 11, 2022
    English
    DR Conclusion Report - Jordan Masdar
    تقرير ختامي لحل النزاعا ت فيما يتعل ق باستثمار مؤسس ة التمويل الدولية IFC ف يشركة مصدر/ بينونة للطاق ة الشمسية ف ي الأرد ن
    Feb 11, 2022
    عربى
    تقرير ختامي لحل النزاعا ت فيما يتعل ق باستثمار مؤسس ة التمويل الدولية IFC ف يشركة مصدر/ بينونة للطاق ة الشمسية ف ي الأرد ن