The Pangue Hydroelectric Project involved a series of proposed hydroelectric dams on the upper BioBio River, Chile. In August 2000, a Pehuenche individual who had been resettled by the Panque Project lodged a complaint with the CAO alleging that he had not been sufficiently compensated as a result of his resettlement. IFC held 2.5 percent of the equity interest in the Pangue Project from October 1993 until divestment in July 2002.

CAO Ombudsman visited the region the subject of this claim in June 2001 in order to determine whether the complaint was amenable to resolution through a negotiated process.