Pakistan: Karot Hydro-02/Jhelum River
Severance pay, discrimination against local workers
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.
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 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.
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