Pakistan: Karot Hydro-03/Jhelum River
Labor union, with the support of national and international trade union federations
Working conditions and terms of employment, freedom of association, grievance mechanism
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 representatives of Building and Wood Workers International (BWI) and the Pakistan Federation of Building and Wood Workers (PFBWW), on behalf of Awami Labour Union - China Three Gorges Corporation Karot Power Company Limited. The complainants claim adverse impacts on around 3,000 project workers of KPCL, including violations of IFC Performance Standard 2 on workers’ organizations, health and safety, working conditions and terms of employment, grievance mechanism, retrenchment, and concerns related to the use of security forces under IFC Performance Standard 4.
CAO found the complaint eligible for further assessment in August 3, 2020. During the assessment, a consensus could not be reached with regard to engaging in dispute resolution. 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 under "View Documents" below.
This case has been referred to CAO’s Compliance function for an appraisal of IFC's environmental and social performance regarding the project. The appraisal will determine whether or not a compliance investigation is merited.
Status as of April 8, 2021