Nigeria: Eleme Fertilizer-02/Port Harcourt

Date Filed
16 Nov 2023
Status
Closed
Phase
Compliance
Country
Nigeria

Case Tracker

Eligibility
November 22, 2023-December 20, 2023
Eligibility
Assessment
January 02, 2024-May 08, 2024
Assessment
Dispute Resolution
Compliance
Appraisal
May 09, 2024-September 10, 2024
CURRENT Status
Appraisal (COMPLIANCE)
May 09, 2024-September 10, 2024

Complaint Overview

Complainant

Branch chairman of the local labor union of the company

Concerns

Labor Issues

Cross-Cutting Issues
Discrimination IFC/MIGA Due Diligence Industry Standards and Certifications Loss of Livelihoods Unfulfilled Commitments

Project Information

Region
Africa
Institution
IFC
Name & Number
Project #30967, #40420 & #47723
Company
Indorama Eleme Fertilizer and Chemicals (IEFCL)
Sector
Manufacturing
Department
Manufacturing, Agribusiness & Services
Category
B
Commitment

US$285mn IFC A loan; US$870mn in mobilization of B/parallel loans; IFC B2 loans under IFC’s MCPP” of up to US$95mn.   

Synopsis

Project Overview

IFC has several active projects with Indorama Corporation and Chemicals (Indorama) and is leading a debt financing package to Indorama Eleme Fertilizer and Chemicals (IEFCL), part of Indorama, for the construction of a third urea fertilizer line (“Line 3”). In 2016, IFC supported the construction of the first urea fertilizer facility (“Line 1”) and the second urea fertilizer line (“Line 2”), located at the same site as Line 1 in Port Harcourt, Nigeria. In 2024, IFC committed to finance Line 3.

Complaint

In November 2023, CAO received a complaint submitted by the branch chairman of the local labor union of IEFCL, citing concerns related to working conditions and terms of employment, workers organizations, non-adherence to the Collective Bargaining Agreement, unfair termination, retaliation, lack of a functional grievance mechanism, and occupational health and safety.

Action

In January 2024, CAO found the complaint eligible for assessment. During CAO's assessment, there was no consensus among the parties to participate in a dispute resolution process, and the complaint was transferred to the Compliance function for appraisal. CAO's Assessment Report is available in English.

In August 2024, CAO completed a compliance appraisal. While CAO concluded that there are preliminary indications of Harm or potential Harm to contractor workers related to some complaint issues, CAO did not identify preliminary indication of IFC’s noncompliance with its environmental and social standards. Accordingly, CAO decided not to conduct a compliance investigation. CAO’s Appraisal Report is available in English

Status

Case closed after compliance appraisal. 
Status as of September 10, 2024. 

Case Documents

  • Assessment Report
    Assessment Report
    May 08, 2024
    English
    Assessment Report
  • Compliance

    Appraisal Report (s)
    Appraisal Report
    Aug 21, 2024
    English
    Appraisal Report
  • 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