CAO Audit of IFC Investment in Coastal Gujarat Power Limited, India

Coastal Gujarat Power Limited (CGPL or the company) is building, and will operate a 4,000MW ‘ultra mega’ imported coal and supercritical technology based power plant at the port city of Mundra in the state of Gujarat in India. The project will source imported coal from mines of Indonesia and other countries. IFC’s is investing in the project through an A Loan of US$450 million. In June 2011, a complaint representing various potentially affected fishing communities was filed with the CAO. The complaint raises issues related to the project’s social and environmental impact on fishing communities, specifically: deterioration of water quality and fish populations, blocked access to fishing and drying sites, forced displacement of fishermen, community health impacts due to air emissions, and destruction of natural habitats, particularly mangroves. The complainants also believe the impacts to their fishing communities were not adequately identified and mitigated, and the cumulative impact of the project was not adequately assessed. See also: CAO found IFC made serious lapses in funding Tata coal plant; President Kim rejects expert findings, thwarts further action