Egypt: Benban Solar-07
Former employee at the Benban Solar Park.
Labor issue; dismissal from employment.
From IFC, $225 million. From MIGA, 12 guarantees.
Benban Solar Park is a 36 square-kilometer area composed of 32 operational energy-generating power plants that are operated by different companies near the village of Benban in Egypt.
IFC is part of a consortium of nine international banks, providing a debt package totaling $653 million—of which $225 million is financed by IFC. This capital supports the construction of 13 of the 41 solar power plants that make up the Benban Solar Park.
MIGA is supporting either equity sponsors or lenders—and in some cases, both—in 12 active projects in the Benban Solar Park. Of these 12 projects, three are financed by the IFC-led consortium, and nine by a consortium led by the European Bank for Reconstruction and Development (EBRD).
On December 2 2022, CAO received a complaint from a former security guard from the SWAT Security and Guards Company, a subcontractor for the Benban Solar Park. The complainant alleged that despite working for SWAT for three years; he did not receive a contract renewal offer in a timely manner and was forced to resign. The complainant claims that this occurred as a reprisal for submitting a complaint through the grievance mechanism of the entity managing the Solar Park, Benban Solar Developers Association (BSDA).
The issues raised in the complaint were found to be eligible to open a case at CAO on December 2, 2022. CAO began an assessment of the issuses raised in the complaint on January 10, 2023 and has begun an assessment of the complaint.
An assessment of this case is ongoing.
Note: The CAO assessment process does not entail a judgment on the merits of the complaint; rather, it seeks to understand the facts and empower those involved to make informed decisions on how to address the issues raised.
Status as of March 7, 2023.