The IFC project with the Egyptian Indian Polyester Company (EIPET) comprises the establishment of a 420,000 tons per annum greenfield Polyethylene Terephthalate (PET) resin plant in the Eldorado Integrated Development and Free Zone S.A.E. in Ain Sokhna, Egypt.  EIPET is a joint venture between South Asian Petrochem Limited, an Indian based manufacturer of PET which merged with its holding company Dhunseri Tea & Industries, and the Egyptian Petrochemical Holding Company, an agency of the Government of Egypt. IFC’s commitment to the project is $35 million A Loan.

In October 2016, CAO received a complaint from several former employees of EIPET who raised concerns that the company did not meet its obligation, to pay their complete salary and severance, as agreed on termination of their employment contracts.

CAO found the complaint eligible for further assessment in December 2016.

The assessment process began in January 2017, during which bilateral meetings were held with the complainants and the company.  Both sides indicated an interest in engaging in a dispute resolution process to try and resolve the issue. There was no dispute by the company that funds were owed to the complainants and the company showed an eagerness to resolve the issue.

CAO facilitated information sharing between the parties after which the company with the consent of the complainants requested to have direct discussions to attempt to resolve the issue. Attempts by the EIPET to pay the complainants, through the assistance of the company’s bankers CIB, were unsuccessful. The company then sought assistance from its majority shareholders, Dhunseri Petrochem Ltd. As a result, an agreement was reached the parties which saw the company through Dhunseri Petrochem Ltd, paying all outstanding monies owed to the complainants.

In April 2017, CAO received an email from the complainants confirming that the matter had been resolved and all outstanding amounts had been paid. This was confirmed by the EIPET in an email to the CAO in May 2017.