Pakistan: Karot Hydro-03/Jhelum River

Date Filed
06 Jul 2020
Status
Open
Phase
Compliance
Country
Pakistan

Case Tracker

Eligibility
Eligibility
Assessment
Assessment
Dispute Resolution
Compliance
Appraisal
Investigation
Status as of January 24, 2022
CURRENT Status
Investi3gation (COMPLIANCE)
Status as of January 24, 2022

Complaint Overview

Complainant

Labor union, with the support of national and international trade union federations

Concerns

Working conditions and terms of employment, freedom of association, grievance mechanism

Cross-Cutting Issues
Access to Information Policy

Project Information

Region
South Asia
Institution
IFC
Name & Number
Karot Hydro 36008
Company
Karot Power Company Limited (KPCL)
Sector
Infrastructure
Department
Infrastructure
Category
A
Commitment

$100 million loan

Synopsis

Project Overview

IFC has an active project with Karot Power Company Limited (KPCL), a special-purpose vehicle incorporated in Pakistan and majority owned by China Three Gorges South Asia Investment Limited (CSAIL). The project involves providing a long-term corporate loan facility of up to US$100 million to support the construction, operation and maintenance of a 720MW run-of-the-river hydropower plant being developed on the Jhelum River, in Pakistan.

Complaint

The complaint was submitted to CAO by representatives of Building and Wood Workers International (BWI) and the Pakistan Federation of Building and Wood Workers (PFBWW), on behalf of Awami Labour Union - China Three Gorges Corporation Karot Power Company Limited. The complainants claim adverse impacts on around 3,000 project workers of KPCL, including violations of IFC Performance Standard 2 on workers’ organizations, health and safety, working conditions and terms of employment, grievance mechanism, retrenchment, and concerns related to the use of security forces under IFC Performance Standard 4.

CAO Action

The complaint was found eligible for further assessment on August 3, 2020. During the assessment, the company indicated a willingness to engage in a dispute resolution process, while the complainants expressed their preference for undergoing a compliance process. In April 2021, the case was referred to our Compliance function for an appraisal, in line with our 2013 Operational Guidelines.

Status

A compliance appraisal was completed under the 2013 Operational Guidelines, based on the transitional arrangements agreed upon in the adoption of the 2021 CAO policy. CAO conducted a preliminary analysis of the concerns raised by the complainants regarding labor issues. A summary of the analysis related to each issue is available in the appraisal report. The report is published in English and Urdu, accessible via the “Case Documents” section below this page. 

Status as of January 27, 2022 

Case Documents

  • Dispute Resolution

    Complaint
    Complaint letter to CAO
    Jul 06, 2020
    English
    Complaint letter to CAO
    Assessment Report(s)
    CAO Assessment Report Pakistan Karot-03
    Mar 01, 2021
    English
    CAO Assessment Report Pakistan Karot-03
    IFC's Response to CAO's Assessment Report
    Mar 23, 2021
    English
    IFC's Response to CAO's Assessment Report
  • Appraisal Report(s)
    Compliance Appraisal Report - Karot Hydro-03/Jhelum River
    Jan 24, 2022
    English
    Compliance Appraisal Report - Karot Hydro-03/Jhelum River
    Compliance Appraisal Report - Karot Hydro-03/Jhelum River
    Jan 24, 2022
    Urdu
    Compliance Appraisal Report - Karot Hydro-03/Jhelum River