Pakistan: Karot Hydro-03/Jhelum River

Date Filed
06 Jul 2020
Status
Open
Phase
Compliance
Country
Pakistan

Case Tracker

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

Complaint Overview

Complainant

Labor union, with the support of national and international trade union federations

Concerns

Working conditions and terms of employment, freedom of association, grievance mechanism

Cross-Cutting Issues
Access to Information Policy

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 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 Action

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.

Status

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

Case Documents

  • Dispute Resolution

    Complaint
    Complaint letter to CAO
    Jul 06, 2020
    English
    Complaint letter to CAO
    Assessment Report(s)
    CAO Assessment Report Pakistan Karot-03
    Mar 01, 2021
    English
    CAO Assessment Report Pakistan Karot-03
    IFC's Response to CAO's Assessment Report
    Mar 23, 2021
    English
    IFC's Response to CAO's Assessment Report