Complaint > Ficohsa-01/ CAO Vice President Request

Compliance Review: English

...Financial Intermediaries, and suggest the need for a reassessment of IFC’s approach to the identification and management of environmental and social risk in its financial markets business. IFC has issued a formal response to CAO’s investigation. CAO will monitor IFC actions in response to the CAO findings and issue a monitoring report within the next year. Full details in relation to this report are available at: www.cao-ombudsman.org Contact in Washington, DC: Emily Horgan, CAO Communications S...

Complaint > Real LRIF-01/Coban

Monitoring: English

...Financial Intermediaries,8 IFC has strengthened their internal procedures for appraising and supervising financial intermediary investments. Regarding private equity funds, in its response to CAO’s investigation report, IFC noted improvements it has made regarding fund selection, disclosure and supervision of fund subprojects, legal requirements for E&S non-compliance, and contextual risk analysis. However, IFC’s response did not commit to take any action with its client regarding project level ...

Complaint > Vizhinjam-01/Kerala

Appraisal: CAO Compliance Appraisal Report of Vizhinjam 01 to 03, June 01, 2015

...financial review).  Phase II involved implementation, including Request for Proposal preparation, marketing, and bidding processes. The Financial Advisory Services Agreement (FASA – dated November 2009) between IFC and the client stated that IFC would assume overall oversight of the client’s consultants and that IFC-hired consultants would direct the development of the Environmental Impact Assessment (EIA) for the port, a requirement for the project to proceed under Indian law. In March...

Complaint > Vizhinjam-02/Kerala

Appraisal: CAO Compliance Appraisal Report of Vizhinjam 01 to 03, June 01, 2015

...financial review).  Phase II involved implementation, including Request for Proposal preparation, marketing, and bidding processes. The Financial Advisory Services Agreement (FASA – dated November 2009) between IFC and the client stated that IFC would assume overall oversight of the client’s consultants and that IFC-hired consultants would direct the development of the Environmental Impact Assessment (EIA) for the port, a requirement for the project to proceed under Indian law. In March...

Complaint > Vizhinjam-03/Kerala

Appraisal: CAO Compliance Appraisal Report of Vizhinjam 01 to 03, June 01, 2015

...financial review).  Phase II involved implementation, including Request for Proposal preparation, marketing, and bidding processes. The Financial Advisory Services Agreement (FASA – dated November 2009) between IFC and the client stated that IFC would assume overall oversight of the client’s consultants and that IFC-hired consultants would direct the development of the Environmental Impact Assessment (EIA) for the port, a requirement for the project to proceed under Indian law. In March...

Complaint > Wilmar Group-01/West Kalimantan

Compliance Review: President Zoellick's Response to Forest People's Programme regarding suspension of new IFC investments in palm oil, August 28, 2009

...financial institutions, civil society, and indigenous peoples' organizations. Possible areas of focus include: promotion of fair labor practices; promotion of best practices in land tenure/community consultation in association with leading palm oil producing firms; improvement of the enabling environment at the sub-regional level to encourage more widespread adoption of RSPO standards; promotion of RSPO to regional financial institutions; and promotion of ...

Complaint > Real LRIF-01/Coban

Appraisal: English

...Financial Intermediary FMO Netherlands Development Finance Company FPIC Free, Prior and Informed Consultation IFC International Finance Corporation LRIF Latin Renewables Infrastructure Fund, LP MIGA Multilateral Investment Guarantee Agency PS Performance Standards (IFC) REAL Real Infrastructure Capital Partners, LLC SII Summary of Investment Information Compliance Appraisal Report – Real ...

Complaint > Vizhinjam-01/Kerala

Compliance Review: Terms of Reference for CAO compliance investigation, Vizhinjam - December 02, 2015

...financial intermediary would be of relevance in the context of CAO’s compliance mandate. The complaints CAO received three complaints about the project. The first complaint was filed in August 2012 by representatives of affected communities, and raised concerns about the design of the port project, its socio-economic and environmental impacts on tourism and fishing activities, and about IFC’s due diligence for the project and stakeholder consultation activities. The second complaint was filed in...

Complaint > Vizhinjam-02/Kerala

Compliance Review: Terms of Reference for CAO compliance investigation, Vizhinjam - December 02, 2015

...financial intermediary would be of relevance in the context of CAO’s compliance mandate. The complaints CAO received three complaints about the project. The first complaint was filed in August 2012 by representatives of affected communities, and raised concerns about the design of the port project, its socio-economic and environmental impacts on tourism and fishing activities, and about IFC’s due diligence for the project and stakeholder consultation activities. The second complaint was filed in...

Complaint > Vizhinjam-03/Kerala

Compliance Review: Terms of Reference for CAO compliance investigation, Vizhinjam - December 02, 2015

...financial intermediary would be of relevance in the context of CAO’s compliance mandate. The complaints CAO received three complaints about the project. The first complaint was filed in August 2012 by representatives of affected communities, and raised concerns about the design of the port project, its socio-economic and environmental impacts on tourism and fishing activities, and about IFC’s due diligence for the project and stakeholder consultation activities. The second complaint was filed in...

Complaint > Alex Dev-01/Wadi al-Qamar

Compliance Review: English

...financial intermediary investment. Compliance Investigation Process and Preliminary Timeline The preliminary time schedule is for CAO to have a draft compliance Investigation Report ready by May 2017. A draft Investigation Report will be circulated to IFC senior management and all relevant IFC departments for factual review and comment. IFC comments should be submitted in writing to CAO within 20 working days of receipt by IFC. Upon receiving comments from IFC on the consultation draft, CAO Comp...

Complaint > India Infrastructure Fund-01/Dhenkanal District

Compliance Report: English

...Financial Intermediary Investments IFC classifies its investments in IDFC and the Fund as financial intermediary (FI) investments. As explained by IFC, a key purpose of its FI investments is to “strengthen domestic capital markets at a scale of enterprise that is smaller than would be possible through IFC direct investments” (Sustainability Policy (2006), para. 27). FI investments account for almost half of IFC’s new commitments each year. This business has grown rapidly in recent years and amou...

Complaint > Niger Delta Contractor Revolving Credit Facility-01/Niger Delta

Eligibility: Assessment Report, August 2001

...financial sector. The concept for a credit facility around oil contractors was first muted some three years ago and was discussed and consulted on for some two years before Board approval, though not with the direct involvement of IFC Lagos. IFC project preparation: The Facility was prepared in line with the procedures for a financial intermediary. As IFC has repeatedly stated the project preparation would appear to be in compliance and the categorization of the project would appear to be correc...

Complaint > Ficohsa-01/ CAO Vice President Request

Appraisal: CAO Compliance Appraisal of IFC investments in Banco Ficohsa - December 4, 2013

...Financial Intermediary (FI) client, (b) IFC’s approach to the assessment of the client’s capacity to manage and mitigate these risks; and, (c) the measures that IFC required of the client to ensure appropriate management of E&S risk. At appraisal, IFC is required to review “the business of its FI clients to identify activities where the FI could be exposed to social and environmental risk as a result of its investments.”8 IFC’s E&S requirements are expected to be “proportional to the level of po...

Complaint > Bujagali Energy-04/Bujagali

Compliance Report: English

...financial support for the project.8 At the same time, several NGOs voiced opposition to the project and filed complaints with the Inspection Panel for the World Bank (IPN) and with CAO. This led to an IPN investigation,9 and a CAO assessment process.10 In 2003, citing financial difficulties, AESNP withdrew from the original project. As a result, GoU, with the assistance of the World Bank, initiated an international bidding process to identify a new private sector sponsor for the project. In 2005...

Complaint > CIFI-01/Hidro Santa Cruz

Appraisal: English

...Financial Intermediary HSC Hidro Santa Cruz, S.A. IFC International Finance Corporation NGO Non-Governmental Organization Norfund Norwegian Investment Fund for Developing Countries PS Performance Standards (IFC) SEMS Social and Environmental Management System SPI Summary of Proposed Investment CAO Compliance Appraisal Report, IFC Investment in CIFI – Hidro Santa Cruz, Guatemala 5 Overview of the Compliance Appraisal Process When CAO receives a complaint about an IFC or ...

Complaint > Bujagali Energy-04/Bujagali

Appraisal: Appraisal of IFC investment in Bujagali Energy (IFC Project #24408) and MIGA guarantee of World Power Holdings (MIGA Project #6732), Uganda, (CAO Complaints 04 and 06), April 8, 2015

...financial markets and advisory. CAO assesses how IFC/MIGA assured itself/themselves of the performance of its business activity or advice, as well as whether the outcomes of the business activity or advice are consistent with the intent of the relevant policy provisions. In many cases, however, in assessing the performance of the project and IFC’s/MIGA’s implementation of measures to meet the relevant requirements, it will be necessary for CAO to review the actions of the client and verify outco...

Complaint > Bujagali Energy-06/Bujagali

Appraisal: Appraisal of IFC investment in Bujagali Energy (IFC Project #24408) and MIGA guarantee of World Power Holdings (MIGA Project #6732), Uganda, (CAO Complaints 04 and 06), April 8, 2015

...financial markets and advisory. CAO assesses how IFC/MIGA assured itself/themselves of the performance of its business activity or advice, as well as whether the outcomes of the business activity or advice are consistent with the intent of the relevant policy provisions. In many cases, however, in assessing the performance of the project and IFC’s/MIGA’s implementation of measures to meet the relevant requirements, it will be necessary for CAO to review the actions of the client and verify outco...

Complaint > Real LRIF-01/Coban

Compliance Report: English

...Financial Intermediary Investments With the objective of supporting sustainable capital market and financial sector development, IFC has developed a significant program of indirect investment through financial intermediaries (FIs). IFC’s investment in the Fund was an FI investment. Through these investments “IFC helps strengthen domestic capital and financial markets that support economic development at a scale of activity that is smaller than would be possible through direct FI investments.” 16...

Complaint > India Infrastructure Fund-01/Dhenkanal District

Management Response: IFC's Response to CAO Compliance Investigation Report: India Infrastructure Fund

...Financial Intermediaries (FIs) investments can increase the reach and impact of IFC's environmental and social standards. There have been important lessons for IFC in this regard and our learnings from IIF and from the 2011 CAO FI sector audit have led to substantial and continuous improvement in IFC capacity, processes and expertise needed to manage these risks, as detailed below. When first considering whether to work with a fund, WC agrees with CAO that establishing its commitment and capacit...