Myanmar: Myanma Awba Group Company Ltd.-01/Myanmar
Local protesting group to the Myanma Awba Chemical Pharmaceutical Factory
Water, community health, community consultation/stakeholder engagement, information disclosure, compliance with IFC Performance Standards
IFC has an active project with Myanma Awba Group Company Ltd., a group of companies in Myanmar focused on development in the agricultural sector. IFC is committing a USD$ 10 million Convertible C Loan for the expansion of Awba’s core business, including the construction of additional fertilizer warehouse storage facilities and fertilizer distribution stations, the acquisition of a second chemical license for Myanma Awba Group’ to construct a new agrochemical formulation plant in an industrial zone next to the existing Government Hmawbi pesticide factory, equipment (bottling and packaging machinery), warehouse storage facilities and working capital (ESRS).
The complaint was submitted to CAO by a local individual on behalf of himself and a local protesting group living in the vicinity of Awba’s new agrochemical plant. The complaint raises concerns about the project's impact on local water sources, including creeks and artisanal wells, lack of consultation with local communities prior to and during the construction of the factory, and lack of information disclosure regarding the project. Additionally, the complaint questions the project permitting process and compliance with IFC policies and standards. The complaint also raises concerns regarding health impacts on local community members who worked in the existing Government pesticide factory adjacent to the company’s newly constructed plant.
In November 2017, CAO found the complaint eligible and conducted an assessment. During the assessment, the parties agreed to engage in a dispute resolution process to address the issues, which commenced in March 2018. However, the dialogue process broke down as there was no longer a clear and unanimous mandate from any of the communities to proceed with dispute resolution. In accordance with CAO’s process, the case was referred to CAO’s Compliance function for appraisal of IFC’s environmental and social performance in June 2020.
In October 2020, CAO completed its compliance appraisal of the case which raised questions concerning IFC’s environmental and social review and supervision of the project, particularly about two pesticide plants, Myanmar Pesticide Industry (MPI) and Hmawbi Agricultural Inputs Complex (HAIC). CAO concluded that an investigation was warranted. CAO’s appraisal report, available in English and Burmese, also includes the Terms of Reference defining the scope of the investigation.
In September 2023, CAO completed its compliance investigation and submitted its report to the Board. IFC Management is now required to submit a management report, including a Management Action Plan (MAP) to the Board within 50 business days. Once the Board approves IFC’s MAP, CAO will publish the investigation report and IFC’s management report, including the MAP.
CAO’s investigation report in English and Burmese will be made available following Board review and approval of IFC’s MAP.
Status as of September 20, 2023