PEOPLE OF LEÓN AND CHINANDEGA’S COMPLAINT REGARDING THE OPERATIONS OF NICARAGUA SUGAR ESTATES LIMITED S.A. INTERNATIONAL FINANCE CORPORATION PROJECT 25331

A formal complaint submitted to the Office of the Compliance Advisor Ombudsman on March 31, 2008, by community members and former employees regarding the operations of Nicaragua Sugar Estates Limited, S.A. (NSEL). The complainants allege that the International Finance Corporation (IFC) failed to comply with its own social and environmental sustainability policies when approving a $55 million loan (Project 25331) to NSEL for sugarcane production and ethanol plant construction.

• The complainants report an epidemic of Chronic Renal Insufficiency (CRI) among NSEL sugarcane workers and nearby residents, with estimates suggesting 1,000 affected workers in Chinandega. They attribute this to exposure to pesticides, temperature stress, and dehydration, noting that NSEL refuses to renew contracts for workers whose creatinine levels exceed 1.4 mg/dL.
• NSEL is accused of interfering with the formation of independent labor unions at the San Antonio Sugar Mill in Chichigalpa. The complaint alleges that the company selects union leaders and has retaliated against organizers through firing and harassment, leading to a February 2008 investigation by the International Labour Organization (ILO).
• The IFC is alleged to have miscategorized Project 25331 as a Category B project, despite evidence of diverse and irreversible impacts. The complainants argue it should be a Category A project due to the scale of health impacts, groundwater depletion, and the impact on indigenous lands.
• The document claims NSEL failed to conduct a proper Social and Environmental Assessment (SEA) and failed to disclose project documents locally. While the IFC website stated documents were available at the mayor's office in Chichigalpa, investigators found the mayor and staff were unaware of the loan and had no such documents.
• NSEL's agricultural practices are reported to cause severe environmental degradation, including the depletion of groundwater for irrigation and the contamination of drinking water with pesticides. The city council of Quezalguaque passed a resolution predicting the Quezalguaque River would run dry within four to five years due to NSEL's activities.
• The complaint asserts that NSEL has negatively impacted the indigenous Sutiaba communities of Abangasca and Goyena through land leasing and pesticide drift, yet NSEL falsely claimed in its Environmental and Social Review Summary (ESRS) that it had never impacted Sutiaba indigenous lands.
• NSEL is accused of violating occupational health and safety standards by failing to provide adequate personal protective equipment (PPE), potable water to prevent dehydration, and facilities for showering. The complaint also notes the employment of children aged 15 or younger in dangerous field work.
• The document alleges that NSEL improperly manages hazardous waste, specifically by burying used pesticide containers in a "toxic cemetery" or burning them with sugarcane prior to harvest, in violation of IFC Performance Standard 3.
• The IFC is accused of failing to conduct due diligence on NSEL's track record, ignoring a history of administrative orders from the Nicaraguan Ministry of the Environment and Natural Resources (MARENA) and public protests regarding environmental contamination.

APA

Center for International Environmental Law (2008). PEOPLE OF LEÓN AND CHINANDEGA’S COMPLAINT REGARDING THE OPERATIONS OF NICARAGUA SUGAR ESTATES LIMITED S.A. INTERNATIONAL FINANCE CORPORATION PROJECT 25331. https://www.ciel.org/wp-content/uploads/2015/05/NSEL_Complaint_31Mar08.pdf

Chicago

Center for International Environmental Law. PEOPLE OF LEÓN AND CHINANDEGA’S COMPLAINT REGARDING THE OPERATIONS OF NICARAGUA SUGAR ESTATES LIMITED S.A. INTERNATIONAL FINANCE CORPORATION PROJECT 25331. 2008. https://www.ciel.org/wp-content/uploads/2015/05/NSEL_Complaint_31Mar08.pdf.

Wikipedia

{{cite report |author=Center for International Environmental Law |title=PEOPLE OF LEÓN AND CHINANDEGA’S COMPLAINT REGARDING THE OPERATIONS OF NICARAGUA SUGAR ESTATES LIMITED S.A. INTERNATIONAL FINANCE CORPORATION PROJECT 25331 |date=31 March 2008 |url=https://www.ciel.org/wp-content/uploads/2015/05/NSEL_Complaint_31Mar08.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{centerforinternationalenvironmentallaw2008people, author = {{Center for International Environmental Law}}, title = {{PEOPLE OF LEÓN AND CHINANDEGA’S COMPLAINT REGARDING THE OPERATIONS OF NICARAGUA SUGAR ESTATES LIMITED S.A. INTERNATIONAL FINANCE CORPORATION PROJECT 25331}}, institution = {Center for International Environmental Law}, year = {2008}, month = mar, url = {https://www.ciel.org/wp-content/uploads/2015/05/NSEL_Complaint_31Mar08.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }