STAKEHOLDERS, PARTICIPATION AND BENEFIT SHARING: APPROACH TO MIDDLE YEYWA

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1 STAKEHOLDERS, PARTICIPATION AND BENEFIT SHARING: APPROACH TO MIDDLE YEYWA ADVANCING SUSTAINABILITY IN RENEWABLE ENERGY Yangon, October 2018 Dr. Stephen Sparkes Vice President, International Power 1

2 CONTENTS Stakeholder engagement Acceptance and participatory planning Benefit-sharing 2

3 Stakeholder Engagement Dialogue situation Exchange of ideas Mutual Respect and trust Both sides listening and talking Implies doing things together as partners Implies mutual understanding and benefits It is NOT a one-way event: 3

4 Understanding the Hydropower Context Examples of high environmental and social impacts Lack of dialogue between stakeholders lack of trust History of forced relocation and conflict in potential investment areas Fear of resettlement and loss of resources and livelihoods Lack of benefit-sharing for remote areas impacted by hydropower 4

5 Basic Project Design Features 160m arch with centrally located crest spillway of 2 bays and a left bank spillway with 3 bays The underground powerhouse complex with MW vertical axis Francis turbines with a total installed capacity of 735 MW 70 km long and narrow reservoir that will be around m at the dam; 11 km 2 with a total volume of 400 million m access road, approach road upgrades and 300 m replacement bridge 5

6 Village locations 6 Villages on right bank: ca. 4,000 inhabitants 2-3 villages on left bank: ca. 2,300 inhabitants Northern areas to be investigated One bridge Dirt roads to villages but main road paved Difficult access to river 6

7 Understanding the Context for Middle Yeywa Pre-feasibility/Scoping Study of the Project Area in Verified low-level of social impacts - Possible relocation of a few structures/ houses along road corridors but no resettlement - Security concerns on left bank - Ethnic minority group but well integrated into local economy Challenging resettlement in Upper Yeywa Project ongoing 7

8 Stakeholder Analysis Stakeholder Goal Method Timing Villages in area of influence Inform and obtain info and cooperation Village meetings for input into planning Start at Scoping and continue Village leaders Inform and obtain info and cooperation Formal and informal discussions for input Start at Scoping and continue Local Government Inform Meetings As required State Government Inform and coordinate with gov t programs Formal and individual meetings Regular updates MoEE and MoNREC Ongoing dialogue for support Formal and individual meetings Regular updates SSA South Inform Informal meetings As required Lenders/Embassy Inform Meetings As required NGOs Inform and coordinate with programs Public Meeting and individual meetings Part of EIA process or as required 8

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10 First Meetings during Scoping Study Introduce the project - Main features and location Overview of expected impacts - No resettlement - Very limited loss of land - Dust and noise issues Note all concerns and expectations - Interest in paid work and training - Request for improved roads and electricity People generally positive after being told of low impacts 10

11 Discussions with Village Leaders Goals: - Gather data on village and confirm information and statistics - Further clarifications about impacts - Listen to concerns and more detailed expectations - Assess experience in dealing with outside interventions Outcomes: - Positive attitudes - Confirms general socio-economic conditions and integrated status - Reconfirms expectations for improved infrastructure 11

12 Meetings with Local and State Government Goals: - General information about all aspects of the project - Obtain support and cooperation - Obtain detailed information about government programs and activities in the project area, as well as plans Outcomes: - Good atmosphere and cooperation interest in project plans - Obtained overview of ongoing and planned infrastructure development activities and ways to coordinate efforts 12

13 Grievance Process: Avoiding early problems 13

14 NGOs and Middle Yeywa Operational NGOs - Meeting to inform about the project and to find out about their programs - Generally sceptical to hydropower but possible cooperation in areas of conservation SAVE THE NAMTU RIVER Advocacy NGOs - Principally opposed to hydropower development in Myanmar - Shan opposition groups based in Thailand and in Europe - Protests, media campaign and letters to Norwegian government - Consider proactive media actions 14

15 Participatory Approach to Planning Important to establish a dialogue with all key stakeholders Projects need trust and cooperation in order to manage risks especially when there are security considerations Need to establish the Feedback Loop show views are taken seriously Aim is to come to an agreement on moving forward together Introduction to the project Assess options (project context) Review and draft mitigation Finalize in draft EIA Concerns and Expectations Confirm expectations Comments to mitigation 15

16 Challenges of Benefit-Sharing Legal requirement for expropriation with correct land documents No system for determining production loss or usufruct traditions Compensation based on fixed rates below market estimates Long battles in the courts as stakeholders challenge rates Lack of sustainability in legal approach not compliant with IFC 16

17 Case Study 1: Albania (Devoll) Two plants on the Devoll river with a total production of 729 GWh (256 MW) Loss of agricultural land and livelihoods for 637 households 50% of income derived from farming Complex history of ownership and 80% without documents Rates based on ca. 3 years of harvest and could not be challenged in courts 17

18 Additional Mitigation for Devoll Restoration program based on production estimates based on recovery cost Consultations to consider package options : vineyards, trees, olive groves, vegetables, livestock and machinery Tailored solutions to match labour, resources, skills, etc. Monitoring of restoration process to ensure restoration 18

19 Case Study 2: Political Challenges in Peru Long history of confrontation with central government and extraction industries - No benefit-sharing mechanism Volatile political situation especially before local elections Target for ambitious politicians - You vote for me and you will get more benefits from the project - Can lead to protests and blockages How to deal with this? - Work to build board support in communities - Elicit support from local and national government agencies - Recourse to the courts for ruling 19

20 CSR Programs Consultation planning process with all communities after acquisition Identification of needs and support options to establish good relations Ongoing assessment of results and follow-up with communities 20

21 Case Study 3: Indian Requirements Indian law stipulates in Himalchal Pradesh: - 2% of investment costs - 2.5% of profit during operation - Other legal requirements for forestry and water release Challenges of dealing with local government: - Technical competence - Equitable distribution of funds - Ensuring funds reach impacted communities - Accountability Distribution of winter clothes at old age home; support for Dewali ceremony 21

22 Case Study 4: Indigenous People as Investment Partners Challenges in obtaining acceptance with indigenous peoples related to land and resource rights Partnerships with First Nation groups funding for investments and dividends Seeks consensus on resource use Respect for traditional rights Creates employment opportunities and social benefits Ensure revenue in long-term for communities, investors and gov t 22

23 Situation for Middle Yeywa No institutionalize benefit-sharing mechanism but tradition for project to have social development program Project to negotiate a solution with stakeholders (villagers/gov t) Necessary to obtain support and cooperation from local stakeholders - Eliminate risk of protests and delays - Ensure benefits - Important source of information about the security situation 23

24 Proposed Community Development Imitative Relatively low impacts allow for larger development program Based on detailed consultations with communities and government Draft EIA to focus on: - Rural roads - Rural electricity - Water Supply - Maintenance during Operation

25 THANK YOU 25