Myanmar: Myanma Awba Group Company Ltd.-01/Myanmar

Date Filed
04 Oct 2017
Status
Open
Phase
Compliance
Country
Myanmar

Case Tracker

Eligibility
Eligibility
Assessment
Assessment
Dispute Resolution
Mediation
Transferred
Compliance
Appraisal
Investigation
CURRENT Status
Investigation (COMPLIANCE)

Complaint Overview

Complainant

Local individual and group

Concerns

Water, community health, community consultation/stakeholder engagement, information disclosure, compliance with IFC Performance Standards

Cross-Cutting Issues
Risk Management Resource Efficiency Community Health and Safety Land Resettlement Labor Land Water Access to Information Policy

Project Information

Region
East Asia & the Pacific
Institution
IFC
Name & Number
Myanma Awaba Group Company Ltd. 35880
Company
Myanma Awaba Group Co. Ltd.
Sector
Agribusiness
Department
Manufacturing, Agribusiness & Services
Category
B
Commitment

USD$ 10 million Convertible C Loan

Synopsis

Project Overview

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).

Complaint

In October 2017, CAO received a complaint submitted by a local individual and group, citing 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.

CAO Action

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.

Status

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

 

Case Documents

  • Complaint
    Complaint Letter
    Oct 04, 2017
    English
    Complaint Letter
    Addendum to the Complaint
    Feb 20, 2018
    English
    Addendum to the Complaint
    Complaint Letter
    Oct 04, 2017
    Burmese - မြန်မာဘာသာ
    Complaint Letter
    Addendum to the Complaint
    Feb 20, 1028
    Burmese - မြန်မာဘာသာ
    Addendum to the Complaint
    Assessment Report(s)
    CAO Assessment Report
    Jun 01, 2018
    English
    CAO Assessment Report
    CAO Assessment Report
    Jun 01, 2018
    Burmese - မြန်မာဘာသာ
    CAO Assessment Report
    IFC's Response to CAO Assessment Report
    May 30, 2018
    English
    IFC's Response to CAO Assessment Report
  • Conclusion Report
    CAO Dispute Resolution Conclusion Report
    Jun 01, 2020
    English
    CAO Dispute Resolution Conclusion Report
    CAO Dispute Resolution Conclusion Report
    Jun 01, 2020
    Burmese - မြန်မာဘာသာ
    CAO Dispute Resolution Conclusion Report
  • Compliance

    Appraisal Report
    Appraisal Report for CAO Investigation
    Oct 07, 2020
    English
    Appraisal Report for CAO Investigation
    Appraisal Report for CAO Investigation
    Oct 07, 2020
    Burmese - မြန်မာဘာသာ
    Appraisal Report for CAO Investigation
    Terms of Reference
    Terms of Reference for CAO Investigation
    Nov 15, 2020
    English
    Terms of Reference for CAO Investigation
    Terms of Reference for CAO Investigation
    Nov 15, 2020
    Burmese - မြန်မာဘာသာ
    Terms of Reference for CAO Investigation
  • Mailchimp Survey

     

    We Value Your Feedback

    Thank you for visiting CAO’s new website. Help us improve your experience by taking our short survey.

    Give Feedback No thanks