Investigation of IFC’s Environmental and Social Performance Related to Cement Plant Investment in Egypt, 10 January 2017

The Compliance Advisor Ombudsman (CAO), the independent accountability mechanism for the International Finance Corporation (IFC), a member of the World Bank Group, is conducting a compliance investigation related to IFC’s investment in the Alexandria Portland Cement Company (APPC), part of Titan Group… A CAO team is in Egypt this week to conduct informational interviews with the relevant local stakeholders. “The investigation is ongoing in coordination with the parties involved. The focus is IFC’s performance, not the client, and CAO has made no determination at this stage regarding IFC’s compliance with its environmental and social requirements related to the project.” said Osvaldo Gratacós, CAO and Vice President of the World Bank Group… The investigation was initiated following a complaint to CAO about the project’s environmental and social impacts. IFC’s support for Titan Group involves the expansion of Titan’s Egyptian operations, including the Alexandria Portland Cement Company (APCC). IFC holds an equity investment of €80 million in Titan’s holding company, Alexandria Development Limited (ADL). A complaint was filed to CAO in April 2015 by community members living in close proximity to the cement plant and former employees of APCC, with assistance from local civil society organizations. The complaint raised concerns about the effects of the plant on community health and safety, compliance with national legislation, labor issues, information disclosure, and community consultation.