Representatives of Nepal’s Indigenous Yakthung (Limbu) communities affected by the Pathivara cable car project have urged the Board of Directors of the International Finance Corporation (IFC) – the private lending arm of the World Bank Group – to question the IFC’s account of its involvement and handling of its advisory services in the controversial project. They have raised several areas of concern following the closure of investigation into their complaint in relation to the IFC’s advisory services for the project by the Compliance Advisor Ombudsman (CAO) – the accountability mechanism of the IFC – on 31 July.
In a letter to the IFC Executive Directors, the complainants, their legal counsel – Lawyers’ Association for Human Rights of Nepalese Indigenous Peoples (LAHURNIP), and their advisors – Asia Indigenous Peoples Network on Extractive Industries and Energy (AIPNEE) and Recourse – have stressed that although the CAO case has been closed and cannot be appealed, serious questions remain about IFC’s role in the project and its handling of information about its involvement.
The letter points to four issues: the IFC’s relationship with Dream Hills, its involvement in the Pathivara cable car, when project-related impacts began, and IFC’s failure to disclose information about its advisory work.
IFC’s involvement with Pathivara cable car
According to the letter, Pathivara was added to the list of cable car projects being considered under IFC’s advisory engagement with Dream Hills, which is wholly owned by the chairman of IME Group – one of the largest Nepali conglomerates – after the Project Services Agreement was signed in October 2022.
The IFC subsequently carried out environmental and social screening and commissioned a technical study specifically for Pathivara between March and September 2023. The IFC spent more than US$150,000 on the advisory engagement. The IFC claims it shared none of these studies with its client – and it is on this basis that the CAO closed the case.
The screening identified risks including security and human rights concerns, as well as gaps related to compensation, livelihood restoration, relocation support and resettlement planning.
Yet when asked in February 2025 whether the IFC’s four cable car projects included Pathivara, IFC just stated that the upstream engagement was not with Pathivara Darshan Mukumlung Cable Car Ltd.
The letter has also challenged the IFC and the CAO statements that Dream Hills was not the project developer. Dream Hills’ own website describes the company as developing several tourism and mobility projects, including the Pathivara Cable Car.
Impacts and lack of disclosure
The complainants have further disputed the claim that project construction only began after IFC’s engagement ended in August 2024. They say project preparation, including tree felling, land clearance and violent repression of Indigenous communities, was already taking place around the period of the IFC’s engagement. They say evidence of human rights abuses, land clearance and forest felling was provided to the CAO.
The CAO found “preliminary indications of IFC non-compliance” with its Access to Information Policy. The policy requires projects to be disclosed within 60 days, but IFC took 670 days to publicly disclose the advisory project, only about a month before its engagement ended.
However, the IFC said the project had not been disclosed earlier because its client had not approved disclosure. The complainants have pointed out that the CAO itself has stated that disclosure is not contingent on client consent.
Questions for the IFC Board
The complainants, their legal counsel and advisors have thus asked IFC Executive Directors to seek answers to four questions from the IFC:
- Why does the IFC claim that Dream Hills was not the project developer?
- Why did the IFC deny that it was involved in the Pathivara cable car project?
- Why did the IFC fail to disclose information in accordance with its own Access to Information Policy?
- Why did the IFC carry out work on Pathivara at the request of its client, but say that none of the work was shared with that client?
The complainants, their legal counsel and advisors will be attending the Annual Meetings of the International Monetary Fund and the World Bank Group in Bangkok in October and will continue to urge IFC Board members to raise these questions with the IFC.




