Pakistan: Karot Hydro-07/Jhelum River

Date Filed
13 Aug 2022
Status
Open
Phase
Dispute Resolution (DR)
Country
Pakistan

Case Tracker

Eligibility
August 13, 2022-August 26, 2022
Eligibility
Assessment
Assessment
Dispute Resolution
Mediation
Status as of May 05, 2023
Compliance
CURRENT Status
Mediation (DISPUTE RESOLUTION)
Status as of May 05, 2023

Complaint Overview

Complainant

Labor union president at the Karot Hydro Power Project

Concerns

Labor related issues

Cross-Cutting Issues
Labor

Project Information

Region
Middle East
Institution
IFC
Name & Number
IFC Project # 36008, 34062
Company
Karot Power Company Limited (KPCL)
Sector
Infrastructure
Department
Infrastructure
Commitment

A loan of up to US$100 million and 15 percent equity investment for US$125 million.

Synopsis

Project Overview

IFC has an active project with Karot Power Company Limited (KPCL), a special-purpose vehicle incorporated in Pakistan and majority owned by China Three Gorges South Asia Investment Limited (CSAIL). The project involves providing a long-term corporate loan facility of up to US$100 million to support the construction, operation, and maintenance of a 720MW run-of-the-river hydropower plant being developed on the Jhelum River in Pakistan. 

Complaint

The complainant is the president of a labor union at the Karot Hydro Power Project. The main issues raised in his complaint is a lack of access to the project site to carry out his labor union activities and inadequate treatment of workers.  

CAO Action

CAO found the complaint eligible for assessment on August 26, 2022. At the request of the complainant, the complaint was referred to IFC in accordance with paragraph #39 of the CAO’s Policy.

On December 14, 2022, the complainant requested for the complaint to be referred back to the CAO and end engagements with IFC. CAO’s assessment formally began on December 15, 2022.

During the assessment process, the complainant and the Karot Power Company Limited (KPCL) representatives expressed an interest in engaging in a CAO dispute resolution process to address the issues raised in the complaint. In accordance with the CAO Policy, the case will now be handled by CAO’s Dispute Resolution function.

The assessment report is available in English and Urdu in the "Case Documents" section below.

Status

The dispute resolution process is ongoing. 

Status as of May 05, 2023.

Case Documents

  • Assessment

    Assessment Report(s)
    CAO Assessment Report - Karot Hydro-07/Jhelum River
    May 05, 2023
    English
    CAO Assessment Report - Karot Hydro-07/Jhelum River
    CAO Assessment Report - Karot Hydro-07/Jhelum River
    May 05, 2023
    Urdu
    CAO Assessment Report - Karot Hydro-07/Jhelum River
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