Nicaragua: Nicaragua Sugar Estate Limited-01/León and Chinandega

Date Filed
01 Mar 2008
Status
Closed
Phase
Dispute Resolution (DR)
Country
Nicaragua

Case Tracker

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

Complaint Overview

Complainant

Center for International Environmental Law (CIEL) on behalf of local residents

Cross-Cutting Issues
Labor Resource Efficiency Community Health and Safety Indigenous Peoples Air Land Water

Project Information

Region
Latin America & the Caribbean
Institution
IFC
Name & Number
Nicaragua Sugar Estates Limited S.A. 25331
Company
Nicaragua Sugar Estates Limited
Sector
Agribusiness
Department
Manufacturing, Agribusiness & Services
Category
B
Commitment

$25 million (A Loan) & $30 million (B Loan)

Synopsis

Complaint

Nicaragua Sugar Estates Limited (NSEL) is the owner of an agro-energy complex located northwest of Managua, in the department of Chinandega. This IFC-financed project seeks to expand NSEL’s production and processing of sugarcane. In March 2008, the Center for International Environmental Law lodged a complaint with the CAO on behalf of 673 residents of communities in the departments of León and Chinandega and former NSEL employees. The complaint raised the following concerns:

1. Health impacts on local communities including Chronic Kidney Disease (CKD) & respiratory problems as a result of sugarcane burning;

2. Labor and working conditions such as rights of association and restrictions to forming a union;

3. Inappropriate land acquisition in relation to indigenous communities;

4. Offsite environmental impacts including water contamination, air pollution and pesticide effluence;

5. IFC compliance with performance standards, policies and procedures.

CAO Action

Since March 2008, CAO worked with ASOCHIVIDA, an association of 2,000 former sugarcane workers and their families, and Nicaragua Sugar Estates Limited (NSEL) to address concerns related to the health, environmental, and livelihood impacts of sugarcane production on NSEL’s workforce and on local communities. Of particular concern to the local residents and former NSEL workers involved in filing the complaint was a potential linkage between the companies’ sugarcane production activities and a high incidence of Chronic Kidney Disease (CKD) in its workforce.

Following CAO’s assessment of the complaint, the parties agreed to work together to address the issues, and a CAO dialogue process commenced in 2009.  After three years, a final agreement was reached in 2012 between ASOCHIVIDA and NSEL. The agreement includes provisions relating to improvements in direct medical care and medical facilities for sufferers of CKD; the development of income-generation projects for households impacted by the disease; and continued support for independent research by Boston University School of Public Health into the causes of the disease. 

From 2012 to 2015 CAO monitored implementation of the agreement and looked for opportunities to support parties’ efforts to see a transition towards a public policy response according to the scale of the problem and to be led by national and international institutions with the appropriate mandate. In 2013, PAHO took up a decisive role, and now with a regional mandate to address CKD its new representative in Nicaragua has taken an active stance, supporting various initiatives in close coordination with the Ministry of Health and in cooperation with all stakeholders. The results of the dialogue process represented an important milestone for PAHO’s efforts.  

After verifying implementation of all action items of the 2012 agreement, CAO’s dispute resolution intervention has come to an end and the case is now closed. While CKD in Central America is becoming a priority for national and international public health institutions, and scientists continue to advance in the search for the causes, NSEL and ASOCHIVIDA representatives continue to meet regularly and work together to devise solutions that can address the severe needs of families affected by CKD.

 A detailed Conclusion Report with a summary of the dispute resolution process and all the outcomes achieved, including reports describing the methods, results, and conclusions for each of the studies conducted by Boston University can be found accessed via the “View documents” link below.

 

Status

After monitoring the agreed actions, CAO released its Conclusion Report in August 2015.  The case is now closed.

In 2020, several years after CAO’s intervention concluded, the parties continue to collaborate and designed a joint strategy to prevent the spread of the COVID-19 pandemic among ASOCHIVIDA members, staff and their communities.  The parties have published a joint statement about this effort which can be viewed at the link below.

Status as of April 30, 2020

Case Documents

  • Dispute Resolution

    Assessment Report(s)
    Breakdown of Aid Provided by NSEL Through CAO Process
    Apr 01, 2012
    English
    Breakdown of Aid Provided by NSEL Through CAO Process
    CAO Media Statement
    Jan 26, 2012
    English
    CAO Media Statement
    Nota de Prensa
    Jan 26, 2012
    Spanish
    Nota de Prensa
    CAO Communique
    Apr 01, 2011
    English
    CAO Communique
    Comunicado CAO
    Apr 01, 2011
    Spanish
    Comunicado CAO
    Assessment Report, Regarding Community and Civil Society concerns
    Dec 04, 2008
    English
    Assessment Report, Regarding Community and Civil Society concerns
    Assessment Report, Regarding Community and Civil Society concerns
    Dec 01, 2008
    Spanish
    Assessment Report, Regarding Community and Civil Society concerns
    IFC's Response to Assessment Report
    Jan 29, 2009
    English
    IFC's Response to Assessment Report
    Agreement(s)
    Closing Agreement for CAO Mediation between ASOCHIVIDA and NSEL
    Jun 28, 2012
    English
    Closing Agreement for CAO Mediation between ASOCHIVIDA and NSEL
    Acuerdo de cierre de la mediación de la CAO
    Jun 28, 2012
    Spanish
    Acuerdo de cierre de la mediación de la CAO
    Summary Report
    Aug 01, 2012
    English
    Summary Report
    Informe Sumario
    Aug 01, 2012
    Spanish
    Informe Sumario
    Biomarkers of Early Kidney Damage in Nicaraguan Adolescents
    Jun 01, 2012
    English
    Biomarkers of Early Kidney Damage in Nicaraguan Adolescents
    Biomarcadores de daño renal temprano en adolescentes Nicaragüenses
    Jun 01, 2012
    Spanish
    Biomarcadores de daño renal temprano en adolescentes Nicaragüenses
    BIOLOGICAL SAMPLING REPORT
    Apr 26, 2012
    English
    BIOLOGICAL SAMPLING REPORT
    INFORME DE MUESTREO BIOLÓGICO
    Apr 26, 2012
    Spanish
    INFORME DE MUESTREO BIOLÓGICO
    COHORT PILOT STUDY REPORT
    Jan 30, 2012
    English
    COHORT PILOT STUDY REPORT
    INFORME DEL ESTUDIO PILOTO DE COHORTE
    Jan 30, 2012
    Spanish
    INFORME DEL ESTUDIO PILOTO DE COHORTE
    CHRONIC KIDNEY DISEASE IN NICARAGUA
    Dec 01, 2011
    English
    CHRONIC KIDNEY DISEASE IN NICARAGUA
    ENFERMEDAD RENAL CRÓNICA EN NICARAGUA
    Dec 01, 2011
    Spanish
    ENFERMEDAD RENAL CRÓNICA EN NICARAGUA
    Medical Needs Assessment of the Chichigalpa Community Health Center and Dialysis Options
    May 01, 2011
    English
    Medical Needs Assessment of the Chichigalpa Community Health Center and Dialysis Options
    Evaluación de las necesidades médicas del centro de salud de Chichigalpa
    May 01, 2011
    Spanish
    Evaluación de las necesidades médicas del centro de salud de Chichigalpa
    Facilitator Summary
    Jan 21, 2011
    English
    Facilitator Summary
    Resumen del Facilitador
    Jan 21, 2011
    Spanish
    Resumen del Facilitador
    Facilitator Summary
    Nov 12, 2010
    English
    Facilitator Summary
    Resumen del Facilitador
    Nov 12, 2010
    Spanish
    Resumen del Facilitador
    Facilitator Summary
    Sep 02, 2010
    English
    Facilitator Summary
    Resumen del Facilitador
    Sep 02, 2010
    Spanish
    Resumen del Facilitador
    Water sampling report
    Aug 24, 2010
    English
    Water sampling report
    Evaluacion de Muestras de Agua
    Aug 24, 2010
    Spanish
    Evaluacion de Muestras de Agua
    Industrial Hygiene/Occupational Health Assessment
    Aug 30, 2010
    English
    Industrial Hygiene/Occupational Health Assessment
    Informe de Evaluación de Higiene Industrial/Salud Ocupacional
    Aug 30, 2010
    Spanish
    Informe de Evaluación de Higiene Industrial/Salud Ocupacional
    Facilitator Summary
    Jun 04, 2010
    English
    Facilitator Summary
    Resumen del Facilitador
    Jun 04, 2010
    Spanish
    Resumen del Facilitador
    Scoping Study Epidemiology of Chronic Kidney Disease in Nicaragua
    Dec 02, 2009
    English
    Scoping Study Epidemiology of Chronic Kidney Disease in Nicaragua
    Scoping Study Epidemiology of Chronic Kidney Disease in Nicaragua
    Dec 02, 2009
    English
    Scoping Study Epidemiology of Chronic Kidney Disease in Nicaragua
    Estudio de Alcance Epidemiología de Enfermedad Renal Crónica en Nicaragua
    Dec 01, 2009
    Spanish
    Estudio de Alcance Epidemiología de Enfermedad Renal Crónica en Nicaragua
    Estudio de Alcance Epidemiología de Enfermedad Renal Crónica en Nicaragua
    Dec 01, 2009
    Spanish
    Estudio de Alcance Epidemiología de Enfermedad Renal Crónica en Nicaragua
    Facilitator’s Summary, Dialogue Process on Chronic Renal Insufficiency
    Dec 02, 2009
    English
    Facilitator’s Summary, Dialogue Process on Chronic Renal Insufficiency
    Facilitator’s Summary, Dialogue Process on Chronic Renal Insufficiency
    Dec 02, 2009
    Spanish
    Facilitator’s Summary, Dialogue Process on Chronic Renal Insufficiency
    Dialogue Process on Chronic Renal Insufficiency: Facilitator's Summary
    Oct 16, 2009
    English
    Dialogue Process on Chronic Renal Insufficiency: Facilitator's Summary
    Dialogue Process on Chronic Renal Insufficiency: Facilitator's Summary
    Oct 16, 2009
    Spanish
    Dialogue Process on Chronic Renal Insufficiency: Facilitator's Summary
    Needs Assessment
    Oct 01, 2009
    English
    Needs Assessment
    Needs Assessment
    Oct 01, 2009
    Spanish
    Needs Assessment
    Dialogue Process on Chronic Renal Insufficiency:
    Sep 30, 2009
    English
    Dialogue Process on Chronic Renal Insufficiency:
    Dialogue Process on Chronic Renal Insufficiency:
    Sep 30, 2009
    Spanish
    Dialogue Process on Chronic Renal Insufficiency:
    Progress Report
    May 15, 2009
    English
    Progress Report
    Informe Sobre Avances/Actualizacion del caso
    May 15, 2009
    Spanish
    Informe Sobre Avances/Actualizacion del caso
    Facilitator's Summary of dialogue meeting on CRI
    Apr 30, 2009
    English
    Facilitator's Summary of dialogue meeting on CRI
    Proceso de Dialogo sobre Insuficiencia Renal Cronica Resumen del Facilitador
    Apr 30, 2009
    Spanish
    Proceso de Dialogo sobre Insuficiencia Renal Cronica Resumen del Facilitador
    Facilitator's Summary of first three dialogue meetings on CRI
    Apr 03, 2009
    English
    Facilitator's Summary of first three dialogue meetings on CRI
    Proceso de Dialogo sobre Insuficiencia Renal Cronica Resumen
    Apr 03, 2009
    Spanish
    Proceso de Dialogo sobre Insuficiencia Renal Cronica Resumen
    Terms of Reference
    Mar 01, 2009
    English
    Terms of Reference
    Terms of Reference
    Mar 01, 2009
    Spanish
    Terms of Reference
    Framework Agreement for Dialogue on Chronic Renal Failure
    Nov 20, 2008
    English
    Framework Agreement for Dialogue on Chronic Renal Failure
    Acuerdo Marco para el Dialogo sobre Insuficiencia Renal Cronica
    Nov 20, 2008
    Spanish
    Acuerdo Marco para el Dialogo sobre Insuficiencia Renal Cronica
    Ombudsman Conclusion Report
    Apr 01, 2010
    English
    Ombudsman Conclusion Report
    Informe de Conclusion del Ombudsman
    Apr 01, 2010
    Spanish
    Informe de Conclusion del Ombudsman
    CAO Conclusion Report
    Aug 01, 2015
    English
    CAO Conclusion Report
    CAO Conclusion Report
    Aug 01, 2015
    Spanish
    CAO Conclusion Report
    Joint Statement from the Parties - COVID-19 Measures
    Apr 01, 2020
    English, Spanish
    Joint Statement from the Parties - COVID-19 Measures