IFC has an active project consisting of the development, design, financing, construction, operation and maintenance of the 500MW Zarafshan wind power plant located in the Navoi region of Uzbekistan under the terms of a 25-year Power Purchase Agreement with the JSC National Electric Grid of Uzbekistan (NEGU), the state-owned single buyer and off-taker. The wind power plant will comprise of up to 111 wind turbine generators.

In July 2023, the CAO received a complaint submitted by a resident and landlord of the property where the cement batching plant for the project is operating in the Tamdy district, Uzbekistan. The complaint cited concerns related to the following issues: i. heavy machinery used by the project spilling waste/oil on his land and damaging his property; ii. government authorities fined the complainant for the oil spillage on his land; iii. environmental impacts of the construction work, such as dust distributed by the turbines, making it impossible for animals to feed and graze in the area, as the plants are covered with dust; iv. impact on animal health, with unfenced trenches that pose a danger to animals; and v. economic loss suffered by the complainant, who lost eighteen sheep and one horse due to the aforementioned situations and adverse impacts on his land. This land, utilized for animal breeding purposes, serves as the main source of his economic subsistence.

In October 2023, CAO found the complaint eligible and conducted an assessment. During the assessment process, the complainant and the IFC client expressed an interest in engaging in a CAO-facilitated dispute resolution process to resolve the issues raised in the complaint using a collaborative approach.

On January 19, 2024, the parties agreed on the ground rules to guide the mediation process. Between January and March 2024, CAO facilitated two joint meetings and several online and in-person bilateral meetings with the complainant and IFC's client.

On March 2024, as a result of the voluntary dispute resolution process, the parties reached and signed a full settlement agreement. In accordance with the CAO Policy, the case was transferred to dispute resolution monitoring. The parties agreed that CAO will monitor the implementation of the settlement agreement until December 31, 2024.