zoellick_ifc_9feb09-d18c8a2d9b15972e.pdf
Summary
A letter from the Center for International Environmental Law (CIEL) to World Bank Group President Robert Zoellick alleging that the International Finance Corporation's (IFC) Agribusiness Department improperly interfered in a Compliance Advisor Ombudsman (CAO) case involving an ethanol project in Nicaragua.
Key insights
- CIEL alleges that the IFC Agribusiness Department improperly interfered in a pending CAO complaint by issuing a response on January 29, 2009, containing inaccurate public statements. CIEL claims these actions prioritize the reputation of the IFC and its clients over the mission to reduce poverty, and requests a retraction of the response, an inquiry into its preparation, and the appointment of an overseer for the Department's activities in the case.
- The dispute concerns an IFC-financed ethanol plant and sugarcane fields operated by Nicaragua Sugar Estates Limited (NSEL). Local communities reported an epidemic of chronic renal insufficiency (CRI) resulting in thousands of deaths, which they believe is linked to NSEL's activities. CIEL asserts that the IFC funded these activities without considering the epidemic or community concerns, despite the fact that no scientific studies yet prove whether CRI is or is not related to NSEL's operations.
- CIEL argues that the Agribusiness Department's response to the CAO's Stakeholder Assessment Report jeopardized sensitive negotiations between communities and NSEL regarding health services and an epidemiological study. Specifically, CIEL claims the Department falsely stated the CAO found no clear causal connection between NSEL/the sugar industry and CRI, whereas the CAO actually stated there were simply no studies proving such a link. Furthermore, the Department allegedly implied the CAO had made compliance findings, which CIEL notes is impossible as the case is still in the ombudsman phase.
- CIEL suggests this incident is symptomatic of a broader pattern where IFC staff do not support the CAO process and discourage clients from cooperating. The letter claims that despite assurances from IFC Executive Vice President and CEO Lars Thunell in 2006 that community and environmental protections would not be weakened during safeguard policy revisions, the lack of due diligence and subsequent interference in this case proves the opposite.
Cite the original document
- APA
- Center for International Environmental Law (n.d.). zoellick_ifc_9feb09-d18c8a2d9b15972e.pdf. https://www.ciel.org/wp-content/uploads/2015/05/Zoellick_IFC_9Feb09.pdf
- Chicago
- Center for International Environmental Law. zoellick_ifc_9feb09-d18c8a2d9b15972e.pdf. n.d. https://www.ciel.org/wp-content/uploads/2015/05/Zoellick_IFC_9Feb09.pdf.
- Wikipedia
- {{cite press release |author=Center for International Environmental Law |title=zoellick_ifc_9feb09-d18c8a2d9b15972e.pdf |url=https://www.ciel.org/wp-content/uploads/2015/05/Zoellick_IFC_9Feb09.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @misc{centerforinternationalenvironmentallawndzoellickifc9feb09d18c8a2d9b15972epdf, author = {{Center for International Environmental Law}}, title = {{zoellick\_ifc\_9feb09-d18c8a2d9b15972e.pdf}}, publisher = {Center for International Environmental Law}, url = {https://www.ciel.org/wp-content/uploads/2015/05/Zoellick_IFC_9Feb09.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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