Kyrgyz Republic: Plato-01/Bishkek

Date Filed
07 Apr 2015
Status
Closed
Phase
Compliance
Country
Kyrgyz Republic

Case Tracker

Eligibility
Eligibility
Assessment
Transferred
Assessment
Dispute Resolution
Compliance
Appraisal
Closed
CURRENT Status
Appraisal (COMPLIANCE)
Closed

Complaint Overview

Complainant

Former employee

Concerns

Unlawful termination of work, withheld compensation

Cross-Cutting Issues
Labor

Project Information

Region
Europe & Central Asia
Institution
IFC
Name & Number
Plato 32583
Company
T.C. PLATO MESLEK YUKSEKOKULU
Sector
Health and Education
Department
Manufacturing, Agribusiness & Services
Category
B
Commitment

$6 million Quasi-Equity Investment

Synopsis

Complaint

IFC has an active project with T.C. Plato Meslek Yuksekokulu (Plato), a Turkish private education provider which started operations in 2009 with two vocational education institutes; Plato College for Higher Education in Istanbul, Turkey and Plato University of Management and Design in Bishkek, Kyrgyzstan. IFC’s investment in Plato aims to support the company’s expansion in Turkey, Central Asia (Kyrgyzstan and Kazakhstan), and in the Middle East/North Africa region (likely Egypt and/or other countries depending on opportunities). The total project cost is estimated at US$ 12 million and the IFC’s investment is quasi-equity of US$ 6 million.

The complaint was lodged by a former employee of the Plato University in Bishkek. The complaint raises concerns around the circumstances of the employee’s termination in the context of the liquidation of the University in Bishkek. 

CAO Action

CAO found all the complaint eligible for further assessment in April 16, 2015. During the assessment, the parties did not agree to engage in a CAO facilitated dispute resolution process. Hence, in accordance with CAO's Operational Guidelines, the case was referred to CAO Compliance for appraisal of IFC's environmental and social performance with regard to the project. The case was referred to the CAO Compliance function on June 26, 2015.

While CAO has identified questions as to IFC’s appraisal and supervision of its investment in the Company, given the nature of the complaint, CAO finds that a compliance investigation is not the appropriate response in this instance. CAO's view is that, absent aggravating circumstances, disputes between an employer and individual employees around issues of pay and benefits will not raise substantial concerns regarding the E&S outcomes of an IFC investment such that would merit a CAO compliance investigation. As a result, in accordance with its Operational Guidelines, CAO has decided to close this case.

Status

CAO's Compliance appraisal report, providing a full description of CAO's decision with regard to this case, is available under "View Documents" below. As of July 29, 2015, CAO has closed the case with no further action.

Status update as of August 03, 2015

Case Documents

  • Dispute Resolution

    Assessment Report(s)
    CAO Assessment Report
    Jun 26, 2015
    English
    CAO Assessment Report
    IFC Formal Reponse
    Jun 19, 2015
    English
    IFC Formal Reponse
  • Appraisal Report(s)
    CAO Compliance Appraisal Report
    Jul 29, 2015
    English
    CAO Compliance Appraisal Report