Yemen: HSA Foods-01/Ras-Isa
Case Tracker
Complaint Overview
An individual
Air and water pollution, risk of disasters, violation of national laws and Performance Standards.
Project Information
$75 million loan
Synopsis
IFC has an active investment of US$75 million in Hayel Saaed Anam Group’s processing operations in Yemen (HSA Foods). According to HSA Group’s website, HSA Foods is part of the Group’s manufacturing activities and produces necessity foods such as flour, sugar and dairy products. It is comprised of six Yemeni companies:
i) National Dairy and Food Company Taiz
ii) National Dairy and Food Company Hodaida
iii) Yemen Company for Sugar Refining
iv) Yemen Company for Flour Mills and Silos Aden
v) Yemen Company for Flour Mills and Silos Al Hodaida
vi) Al Hodaida Flour Mills Co. Limited
IFC’s investment will be directed to finance the permanent working capital needs of HSA Foods. IFC has also engaged in associated advisory services in two key areas: energy and water efficiency solutions and gender diversity.
An individual submitted a complaint in relation to Yemen Company for Sugar Refining. The complainant raises environmental and social concerns including:
i) marine water pollution through waste disposal, coal combustion and sugar refining processes
ii) potential landslides and land subsidence caused by the company’s waste water discharge into the soil
iii) air pollution resulting from transporting ashes to an HSA-owned subsidiary in open trucks
iv) damage to the complainant’s professional reputation.
Additionally, the complainant owns a plot of land close to the project’s location, which might be affected by the issues raised in the complaint.
The complaint was found eligible for further assessment on April 20, 2021, and an assessment of the complaint was conducted.
During the assessment, the complainants and the company agreed to engage in a voluntary dialogue process to try and resolve the dispute. The assessment report is available in English and Arabic under the "Case Documents" section below.
A Dispute Resolution process is ongoing.
Status as of November 24th, 2021