Promoting transparency and trust by strengthening community E&S monitoring. PERU LNG s Pipeline Participatory Monitoring Program

Transcription

1 1 Promoting transparency and trust by strengthening community E&S monitoring PERU LNG s Pipeline Participatory Monitoring Program

2 PERU LNG Peruvian company formed by Hunt Oil Company (50%), SK (20%), Repsol-YPF (20%), Marubeni (10%) Océano PACIFIC Pacifico OCEAN ECUADOR COLOMBIA The Melchorita LNG Plant is located on the coast 170 km south of Lima. It includes a process train, two LNG storage tanks, and a marine terminal. A km pipeline transports the natural gas from the highlands of Peru (Ayacucho) to the LNG Plant. LNG EXPORTS LNG LEGEND New Gas Pipeline to LNG Plant PERU Lima Planta LNG de Plant LNG Pampa Pampa Melchorita Existing Gas Pipeline to Lima Planta LPG de Plant GLP Pisco Existing Condensate Pipeline to LPG Plant Camisea Campos Gas Fields de Gas Ducto existente de gas a Lima Ducto nuevo para la planta de LNG Ducto existente de líquidos para la planta de GLP BRASIL BRAZIL Malvinas Planta Criogénica Cryogenic Plant Compression Station #2 & NGL Pump Station #3 Lago Lake Titicaca CHILE B O L I V I A 2 Total investment: US$ 3.8 billion, the largest private investment to date in Peru. The project has financing from IFC, IDB, US-Exim, K-Exim and SACE.

3 3 The PERU LNG Pipeline A 408 km gas pipeline from the department of Ayacucho in the Andes to the Pacific coast. Pipeline traverses 22 districts: 9 in Ayacucho; 4 in Huancavelica; 8 in Ica; and 1 in Lima. Within area of direct influence: 35 rural communities, 30 annexes, 26 localities, and 12 associations

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5 The need of extensive interaction and consultation A project of this magnitude raises concerns and creates expectations. Accurate and timely information is crucial to clear any doubts. To respond to concerns and proactively interact with Stakeholders, PERU LNG designed a set of Key Social Management Plans in line with line with IFIs standards: 1. Stakeholder Engagement Plan 2. Grievance Management Procedure 3. Rural Andean Community Management Strategy 4. Pipeline Compensation Management Program 5. Local Hiring & local Purchasing Procedure 6. Conflict Resolution Procedure These are implemented by PLNG s Community Relations team through visits, workshops, meetings and other activities. 5

6 Building a constructive relation with stakeholders Consistent and coordinated approach to stakeholders Active involvement of stakeholders in the oversight of Company Performance GRIEVANCE MANAGEMENT PROCEDURE STAKEHOLDER ENGAGEMENT PLAN CONFLICT RESOLUTION PROCEDURE EXTENSIVE INTERACTION & CONSULTATION WITH STAKEHOLDERS PIPELINE COMPENSATION MANAGEMENT PLAN ANDEAN COMMUNITY MANAGEMENT STRATEGY + E&S INVESTMENT PROGRAM LOCAL HIRING AND PURCHASE PLAN 6 Timely information about PLNG activities and potential impacts. Opportunities to stakeholders to voice their opinion and concerns. Opportunities for discussion concerning measures proposed. + Integrate Community participation into PLNG s assurance process. Build trust among monitors and communities they represent. Guarantee that Community concerns are effectively addressed.

7 7 Participatory E&S Monitoring Program (PMSAP) PERU LNG began implementing PMSAP in Involves the participation of local community monitors. Local monitors supervise the fulfillment of commitments to care for the land, water bodies, soil, plants and animals in the area. This program is being implemented in 35 communities along the pipeline Right-of-Way.

8 PMSAP Specific Objectives Integrate community participation into Company assurance processes. Build trust among monitors and communities. Ensure community concerns are addressed. Use Community feedback to improve performance. 8

9 9 Development of PMSAP Design and implementation by a respected independent organization (Local NGO: ProNaturaleza Carried out on a voluntary basis with: Communities Local authorities Civil society Government

10 10 Implementation of PMSAP Program implemented in the following phases: Program Design Program Validation Selection of Monitors Training of Monitors Field Monitoring Present Results to Community

11 1. Program Design Phase Program divided into 3 geographic spreads. Specific social and environmental monitoring protocols developed. Processing of Monitoring Results: User-friendly database Action tracking 11

12 12 2. Program Validation Informative meetings held with local communities Review of proposed design of program Implementation of specific objectives Regular meetings to ensure clear understanding of program and respond to program expectations

13 3. Monitor Selection Monitors selected by communities. Number of monitors based on amount of community land affected by the Project. Monitor selection criteria: Fluent in Spanish & Quechua Minimum high school education Respected by the community Not a local authority Monitors gender distribution: 38% Women 62% Men Monitors average age: 32 Women and young people encouraged to seek nomination. 13

14 14 4. Monitor Training Phase Review program objectives, monitor roles, and necessary commitment. Continued training provided: Construction/Ops processes Use of monitoring protocols and equipment Social and environmental commitments Potential impacts of specific activities Measurements and record keeping 84 monitors passed training and selected.

15 5. Field Monitoring Pilot exercise prior to full mobilization: Validate protocols and test field equipment Evaluate interview protocols and visit work fronts Assess interaction between monitors, Company, and contractors. Monitors in field 10 days every month with Program Implementing Partner 15

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22 Field Monitoring: Results processing 39 Findings POSITIVE OBSERVATION ALERT RISK EMERGENCY Findings 2011 by Area GEOTECHNICAL ENVIRONMENTAL OPERATIONS CC. RR. SOCIAL INVESTMENT THIRD PARTY Positive Observation Alert Risk Emergency Findings San Miguel / Kp Kp Findings Ayacucho / Kp Kp % 4% 5% 0% 10% 0% 1% 7% 17% 67% GEOTECHNICAL ENVIRONMENTAL OPERATIONS CC. RR. 23% 66% GEOTECHNICAL ENVIRONMENTAL OPERATIONS CC. RR. SOCIAL INVESTMENT SOCIAL INVESTMENT THIRD PARTY THIRD PARTY Findings Ica / Kp Kp % 0% Evolución de hallazgos Total 2011 Positivas Negativas 22% 2% 45% GEOTECHNICAL ENVIRONMENTAL OPERATIONS 55 29% CC. RR. SOCIAL INVESTMENT THIRD PARTY

23 23 6. Presentation of Results to the Community

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25 25 Conclusions Monitors are providing the Project timely and valuable information, guaranteeing community concerns are addressed. Independent Operator ensured effective community participation. Community receives accurate information on social and environmental performance; inaccurate perceptions are addressed.

26 26 Conclusions Monitors feel confident, better informed, communicate more efficiently and are gaining respect of community. Community involvement has promoted transparency. Positive impacts viewed as outweighing negative impacts, preventing social conflict.

27 27 Next Steps Continue with monitoring through operations, adapting monitoring protocols to this new phase. Improve the Data Base and Record Keeping system. Develop a webpage to disclose monitoring results to the general public and validate it with Communities.

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30 30 Thank you.