Since 2013, IFC has supported the Government of Jordan’s efforts to develop its renewable energy sector. In 2018, IFC invested in Baynouna Solar Energy Company to develop, build, and operate the country’s largest single solar power plant. Baynouna is majority-owned by Masdar, a renewable energy company which, at the time of the investment, was owned by the Government of Abu Dhabi’s Mubadala Development Company. The approximately 242 Megawatt peak (MWp) solar plant is located 30 kilometers southeast of Jordan’s capital Amman.

CAO received a complaint in February 2020, nine months before the plant became operational, from 66 members of the Al Balqa tribes, some of whom are itinerant herders. The complainants stated that the project land belongs to their tribes, whose members have used the site for hundreds of years to cultivate barley for fodder and graze livestock. As the land’s customary owners and users, they claim that IFC and the client improperly excluded them from project-related stakeholder engagement. They also alleged that their land rights were violated, resulting in the loss of livelihoods, assets, and access to land and natural resources, and that Baynouna failed to provide them with project-related development benefits and opportunities.

After finding the complaint eligible in March 2020, CAO conducted an assessment during which the parties agreed to participate in a dispute resolution process to address the issues raised in the complaint. CAO issued an assessment report (available in Arabic and English) and transferred the case to dispute resolution in August 2020.

Despite the efforts of the parties to resolve the issues through dispute resolution, a final agreement was not reached. In February 2022, CAO issued a dispute resolution conclusion (available in Arabic and English) report and transferred the case to its Compliance function for appraisal of IFC’s performance.

In May 2022, CAO completed its compliance appraisal (available in Arabic and English) and initiated an investigation regarding the issues raised in the complaint, particularly concerning land-based livelihoods and access to land and natural resources. 

CAO finalized its compliance investigation (available in Arabic and English) in October 2024 and submitted its report to the IFC Board. The investigation found that IFC failed to comply with its Sustainability Framework during both pre-investment due diligence and project supervision, leading to harm for local communities, particularly Bedouin herders and Al Balqa tribal groups.

Specifically, CAO found that IFC’s Environmental and Social (E&S) due diligence was not commensurate with the project’s scale. Despite evidence of land use by herders, IFC did not collect the necessary social baseline data, assess land use and traditional rights, or consult with affected communities, some of which were not identified as stakeholders and were not consulted.

During supervision, IFC did not ensure that its client developed a Stakeholder Engagement Plan or effectively addressed grievances. The grievance mechanism was inadequate, with insufficient documentation. As a result, herders faced harm related to economic displacement without proper compensation or livelihood restoration and lost access to traditionally owned land.

On April 3, 2025, the IFC Board approved IFC’s Management Action Plan (MAP) in response to CAO’s investigation. The MAP includes the development of a social impact assessment by IFC’s client to provide conclusive information on project-affected people and, as needed, identify adequate and feasible mitigation measures aligned with applicable Performance Standard requirements. If the social impact assessment finds economic displacement resulting from the project, IFC’s client will develop and implement a livelihood restoration plan. Additionally, in response to CAO recommendations based on this and other cases, IFC also updated its Environmental and Social Review Procedure in January 2025 to strengthen internal guidance and controls to ensure that, prior to Board approval of a project, E&S risks and impacts of an investment are identified and analyzed in a timely manner to meet policy requirements.

IFC management will supervise implementation of the MAP. IFC and CAO issued a joint press release on April 08, 2025.