Pakistan: Karot Hydro-02/Jhelum River

Date Filed
24 Aug 2019
Status
Open
Phase
Compliance
Country
Pakistan

Case Tracker

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

Complaint Overview

Complainant

Former employee

Concerns

Severance pay, discrimination against local workers

Cross-Cutting Issues
Labor Water Discrimination

Project Information

Region
South Asia
Institution
IFC
Name & Number
Karot Hydro 36008
Company
Karot Power Company Limited (KPCL)
Sector
Infrastructure
Department
Infrastructure
Category
A
Commitment

$100 million loan

Synopsis

Project Overview

IFC has an active project with Karot Power Company Limited (KPCL), a special-purpose vehicle incorporated in Pakistan and majority owned by China Three Gorges South Asia Investment Limited (CSAIL). The project involves providing a long-term corporate loan facility of up to US$100 million to support the construction, operation and maintenance of a 720MW run-of-the-river hydropower plant being developed on the Jhelum River, in Pakistan. 

Complaint

The complaint was submitted to CAO by a former employee of the Karot project. The complaint raises concerns about lack of payment of exit wages, as well as discrimination against local workers in relation to access to drinking water, conditions of accommodations and transportation at the project site. Irregularities about employment contracts and salary increases are also mentioned.

CAO Action

CAO found the complaint eligible for further assessment in August 3, 2020. During the assessment CAO lost contact with the Complainant and was unable to re-establish communication and advance the assessment process. Since a CAO dispute resolution process requires voluntary agreement to participate by the Complainant(s) and the IFC client, this case was referred to CAO’s Compliance function, in accordance with CAO’s Operational Guidelines.

CAO’s assessment report is available in English and Urdu under the "Case Documents" section below.  

Status

A compliance appraisal is ongoing under the 2013 Operational Guidelines.

The Karot Hydro 02 and 03 cases have been merged.

 

Status as of October 7, 2020

Case Documents

  • Dispute Resolution

    Assessment Report(s)
    CAO Assessment Report Pakistan
    Nov 01, 2020
    English
    CAO Assessment Report Pakistan
    CAO Assessment Report Pakistan
    Nov 01, 2020
    Urbu
    CAO Assessment Report Pakistan
    IFC's Response to CAO's Assessment Report
    Nov 20, 2020
    English
    IFC's Response to CAO's Assessment Report