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 the construction, operation, and maintenance of a 720MW run-of-the-river hydropower plant being developed on the Jhelum River in Pakistan.

In August 2022, CAO received a complaint submitted by the president of one of the labor unions at the Karot Hydro Power Project, citing concerns related to lack of access to the project site to carry out his labor union activities and; lack of collaboration of the company to organize a referendum to elect the collective bargaining agent (CBA), which will represent the workers. 

In August 2022, CAO found the complaint eligible. At the complainants’ request, the case was referred to IFC.

In December 2022, the complainant requested the resumption of the CAO process and to end their engagement with IFC. CAO conducted an assessment, which was completed in May 2023. During the assessment process, the complainant and KPCL expressed their interest in engaging in a CAO dispute resolution process to address the issues raised in the complaint.

In July and August 2023, CAO conducted in-person capacity-building sessions with the complainant and the company to prepare them for a dispute resolution process.

In October 2023, the parties held their first joint session to resolve the issues raised in the complaint. During this joint session, the parties reached an interim agreement on access to the project site to carry out labor union activities.

In May 2024, CAO continued to monitor the implementation of the interim agreement and formally transferred the case to dispute resolution monitoring.