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 complainants are eight community members of the Azad Jammu and Kashmir (AJK) community. The main issues raised in their complaint relate to unfair hiring practices at the Company; discrimination in hiring practices against local populations because of their community of origin; lack of transparency in the recruitment process; and incidents of unfair dismissal and forced resignation of those who were employed.

CAO found the complaint eligible for assessment in June 2022. At the request of the complainant, the complaint was referred to IFC in accordance with paragraph #39 of CAO’s Policy.

On March 27, 2023, the complainant requested for the complaint to be referred back to the CAO. CAO’s assessment formally began on March 28, 2023.

During CAO’s assessment, both parties expressed an interest in engaging in a dispute resolution process to address the issues raised in the complaint. In accordance with the CAO Policy, the complaint will now be handled by CAO’s Dispute Resolution function.

The assessment report and other related documents can be found in the “Case Documents” section below.