Yemen: HSA Foods-01/Ras-Isa

Date Filed
05 Apr 2021
Status
Open
Phase
Dispute Resolution (DR)
Country
Yemen

Case Tracker

Eligibility
April 05, 2021-April 20, 2021
Eligibility
Assessment
April 20, 2021-November 19, 2021
Assessment
Dispute Resolution
Mediation
Status as of November 24, 2021
Compliance
CURRENT Status
Mediation (DISPUTE RESOLUTION)
Status as of November 24, 2021

Complaint Overview

Complainant

An individual

Concerns

Air and water pollution, risk of disasters, violation of national laws and Performance Standards. 

Cross-Cutting Issues
Resource Efficiency Biodiversity Air Water Private / Personal Property Damage

Project Information

Region
Middle East & North Africa
Institution
IFC
Name & Number
HSA Foods Yemen 43466
Company
Hayel Saeed Anam (HSA) Group
Sector
Agribusiness
Department
Manufacturing, Agribusiness & Services
Category
B
Commitment

$75 million loan

Synopsis

Project Overview

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.

Complaint

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.

CAO Action

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.

Status

A Dispute Resolution process is ongoing.

 

Status as of November 24th, 2021

Case Documents

  • Dispute Resolution

    Assessment Report(s)
    Yemen: HSA Foods-01 Assessment Report
    Nov 19, 2021
    English
    Yemen: HSA Foods-01 Assessment Report
    مسودة تقرير تقييم مكتب المحقق/ المستشار لشؤون التقيد بالأنظم ة
    Nov 19, 2021
    العربية
    مسودة تقرير تقييم مكتب المحقق/ المستشار لشؤون التقيد بالأنظم ة