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 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. Following the CAO Policy, IFC management may request that the Board of IFC review CAO’s decision to investigate within 10 business days from the date the appraisal report is circulated, which was May 12, 2022. The terms of reference for the investigation has been released.
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, amongst other issues. A summary of the analysis related to each issue is available in English and Arabic, in the appraisal reports accessible via the “Case Documents” section below this page.
A compliance appraisal process has been completed, with reports released in Arabic and English. This case is now under compliance investigation.
Status as of May 31, 2022