IFC has an active project with Hidromaule S.A., a start-up hydropower generation company owned by an Italian-Chilean consortium of professionals with experience in the hydropower generation industry. The company’s initial project, Lircay, is a 20 Megawatt run-of-river hydropower project located along the Lircay River in the VII Region of Chile, approximately 30 km to the northeast of the city of Talca. 

The complaint was submitted to CAO filed by a local individual on behalf of himself and several members of his family.  The complaint raises concerns about the land acquisition process in the Lircay project, claiming that some owners were not properly recognized or compensated for two tracts of land used for the project. Irregularities around the land acquisition and environmental permitting processes are also cited.

CAO found the complaint eligible for further assessment in November 2014. During the assessment, although the complainants expressed willingness to engage in a CAO facilitated dispute resolution process, the Company however indicated a preference for the case to be handled by CAO Compliance function. In accordance with CAO's Operational Guidelines, the case was referred to CAO Compliance for appraisal of IFC's environmental and social performance with regard to the project. 

In June 2015, CAO published a Compliance appraisal report regarding IFC's investment in Hidromaule. CAO has determined that an investigation was not merited and has closed the case.