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 claimed adverse impacts on an estimated 3,000 project workers of KPCL, including violations of IFC Performance Standard 2 (PS2) on workers’ organizations, health and safety, working conditions, terms of employment, grievance mechanism, retrenchment, and concerns related to the use of security forces under IFC Performance Standard 4 (PS4).

On August 3, 2020, the complaint was found eligible for further assessment. During the assessment, the company indicated a willingness to engage in a dispute resolution process, while the complainants expressed their preference for undergoing a compliance process. In April 2021, the case was referred to the Compliance function for appraisal, in line with the 2013 Operational Guidelines.

A compliance appraisal was completed under the 2013 Operational Guidelines, based on the transitional arrangements agreed upon in the adoption of the 2021 CAO Policy. CAO conducted a preliminary analysis of the concerns raised by the complainants regarding labor issues. A summary of the analysis related to each issue is published in the Appraisal Report, available in English and Urdu.