Ukraine: MHP-01/Vinnytsia Oblast
Community members of Olyanystya, Zaozerne, and Kleban (Confidential.)
Air, land, and water pollution; foul odors; information disclosure and consultation; violation of national laws and PS.
US$100 million A Loan, US$75 million B Loan
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.
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 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.
In June 2020, the parties invited qualified experts to submit Calls for Proposals for an independent study on damage to homes and buildings.
In April 2021, the parties signed a second joint statement outlining agreements reached in the mediation process concerning access to information and communication.
Despite the efforts of all parties involved to resolve the issues raised in this complaint, a final agreement was not reached. In February 2022, CAO released a conclusion report and transferred the case to Compliance. The conclusion report is available in English and Ukrainian on this page.
After suspending casework in Ukraine in March 2022 due to the war, CAO recommenced work on this case on October 17, 2022 in consultation with stakeholders. The compliance appraisal is in process.
Status as of October 17, 2022