Ukraine: MHP-01/Vinnytsia Oblast

Date Filed
05 Jun 2018
Status
Open
Phase
Dispute Resolution (DR)
Country
Ukraine

Case Tracker

Eligibility
Eligibility
Assessment
Assessment
Dispute Resolution
Mediation
Compliance
CURRENT Status
Mediation (DISPUTE RESOLUTION)

Complaint Overview

Complainant

Community members of Olyanystya, Zaozerne, and Kleban (Confidential)

Concerns

Air, land, and water pollution; foul odors; information disclosure and consultation; violation of national laws and PS

Cross-Cutting Issues
Risk Management Labor Resource Efficiency Community Health and Safety Air Land Water Children Women Coercion Private / Personal Property Damage Public Infrastructure Damage Industry Standards and Certifications Access to Information Policy

Project Information

Region
Europe & Central Asia
Institution
IFC
Name & Number
MHP Corporate Loan 34041
Company
Myronivsky Hliboproduct Publichne AT
Sector
Agribusiness
Department
Manufacturing, Agribusiness & Services
Category
B
Commitment

US$100 million A Loan, US$75 million B Loan

Synopsis

Project Overview

According to IFC, Myronivsky Hliboproduct Publichne AT (MHP) (“the Company”) is a vertically integrated poultry producer in Ukraine. In 2013 the Company produced 472,800 tons of chicken meat and harvested around 2 million tons of crops. The Project involves providing a long term corporate loan facility of up to US$250 million to support the Company’s expansion plans in Ukraine and refinance its Eurobond maturity falling due in 2015.

Complaint

In June 2018, CAO received a complaint from local community members in Olyanystya, Zaozerne, and Kleban villages, with support from CEE Bankwatch Network/Center for Environmental Initiatives “Ecoaction” (a Ukrainian NGO) and Accountability Counsel (a US NGO), regarding IFC’s investment in Myronivsky Hliboproduct Publichne AT (MHP) in Ukraine.  The complaint raises concerns about impacts from dust, noise, and odors, as well as concerns, that the company’s operations cause air, water, and soil pollution, and deplete water resources. Additional issues raised in the complaint include: improper community consultation; lack of information disclosure; occupational health and safety; and poor working conditions.

In addition to filing a complaint to CAO, the Complainants submitted a complaint to the European Bank for Reconstruction and Development’s (EBRD) Project Complaint Mechanism (PCM). EBRD is also an investor in MHP.

CAO Action

CAO found the complaint eligible in June 2018 and began an assessment of the complaint. During the assessment, the Complainants and the Company agreed to engage in a voluntary dialogue process to try and resolve the dispute. As agreed by the parties, CAO and PCM are jointly facilitating the dialogue process, which is underway. 

On January 20, 2020, the parties signed a Joint Statement outlining the efforts and progress made to date in the mediation process. The document is available in English and Ukrainian under “View Documents" below.

In June 2020, the parties invited qualified experts to submit Calls for Proposals for an independent study on damage to homes and buildings. See links below for more details.

In April 2021, the parties signed a second joint statement outlining agreements reached in the mediation process concerning access to information and communication.

Status

A dispute resolution process is underway. 

Status as of April 30, 2021 

Case Documents

  • Dispute Resolution

    Complaint
    Letter of complaint
    Jun 05, 2018
    English
    Letter of complaint
    Letter of complaint
    Jun 05, 2018
    Ukrainian
    Letter of complaint
    Assessment Report(s)
    CAO Assessment Report - Ukraine/MHP-01
    Jan 31, 2019
    English
    CAO Assessment Report - Ukraine/MHP-01
    CAO Assessment Report - Ukraine/MHP-01
    Jan 31, 2019
    Ukrainian
    CAO Assessment Report - Ukraine/MHP-01
    IFC's Response to CAO's Assessment Report
    Jan 01, 2018
    English
    IFC's Response to CAO's Assessment Report
    Agreement(s)
    Joint Communique - Ukraine/MHP-01
    Jan 20, 2020
    English
    Joint Communique - Ukraine/MHP-01
    Joint Communique - Ukraine/MHP-01
    Jan 20, 2020
    Ukrainian
    Joint Communique - Ukraine/MHP-01
    Joint Statement - Ukraine/MHP-01
    Apr 30, 2021
    Ukrainian, English
    Joint Statement - Ukraine/MHP-01
  • Invitations for Expressions of Interest
    Call for Proposals for Joint Fact Finding Study
    Jun 22, 2020
    English
    Call for Proposals for Joint Fact Finding Study
    Технічне завдання
    Jun 22, 2020
    Ukrainian
    Технічне завдання
    Call for Proposals - Impacts on Houses
    Jun 10, 2020
    English & Ukrainian
    Call for Proposals - Impacts on Houses
    Terms of Reference Damage to Roads and Houses
    Sep 28, 2019
    English
    Terms of Reference Damage to Roads and Houses
    Технічне завдання
    Sep 28, 2019
    Ukrainian
    Технічне завдання
    Terms of Reference Environmental impacts
    Sep 28, 2019
    English
    Terms of Reference Environmental impacts
    Технічне завдання (екологічний вплив)
    Sep 28, 2019
    Ukrainian
    Технічне завдання (екологічний вплив)