Yemen: HSA Foods-01/Ras-Isa
Air and water pollution, risk of disasters, violation of national laws and Performance Standards.
IFC has an active investment of US$75 million in Hayel Saaed Anam Group’s processing operations in Yemen (HSA Foods). According to HSA Group’s website, HSA Foods is part of the Group’s manufacturing activities and produces necessary foods such as flour, sugar, and dairy products. It is comprised of six Yemeni companies:
i) National Dairy and Food Company Taiz
ii) National Dairy and Food Company Hodaida
iii) Yemen Company for Sugar Refining
iv) Yemen Company for Flour Mills and Silos Aden
v) Yemen Company for Flour Mills and Silos Al Hodaida
vi) Al Hodaida Flour Mills Co. Limited
IFC’s investment will be directed to finance the permanent working capital needs of HSA Foods. IFC has also engaged in associated advisory services in two key areas: energy and water efficiency solutions and gender diversity.
An individual submitted a complaint in relation to Yemen Company for Sugar Refining. The complainant raises environmental and social concerns including:
i) marine water pollution through waste disposal, coal combustion, and sugar refining processes
ii) potential landslides and land subsidence caused by the company’s wastewater discharge into the soil
iii) air pollution resulting from transporting ashes to an HSA-owned subsidiary in open trucks
iv) damage to the complainant’s professional reputation.
Additionally, the complainant owns a plot of land close to the project’s location, which might be affected by the issues raised in the complaint.
The complaint was found eligible for further assessment on April 20, 2021, and an assessment of the complaint was conducted.
During the assessment, the complainants and the company agreed to engage in a voluntary dialogue process to try and resolve the dispute. The assessment was concluded in November 2021.
Between December 2021 and November 2022, CAO facilitated two joint meetings and several online bilateral meetings with the complainant and the company.
As a result of the voluntary dispute resolution process, the parties reached and signed a full settlement agreement on 11 November 2022. In accordance with CAO’s policy, the case was moved to dispute resolution monitoring. In August 2023, the conclusion report was released, and the case is now closed.
All case-related documents, including CAO's Assessment Report and Dispute Resolution Conclusion Report, are available in English and Arabic in the "Case Documents" section below.
The dispute resolution process and monitoring has concluded. The case is now closed.
Status as of August 10, 2023