Global Trends and Emerging Guidance on Project-Level Grievance Mechanisms in the Mining Industry
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1 Arne Hoel/The World Bank Arne Hoel/The World Bank CSRM Seminar, University of Queensland Global Trends and Emerging Guidance on Project-Level Grievance Mechanisms in the Mining Industry January 27, 2010 Compliance Advisor-Ombudsman (CAO) for IFC and MIGA World Bank Group 1
2 What is the office of the CAO? CAO addresses complaints from people affected by IFC/MIGA projects - Accountability & grievance mechanism - Independent - Reports to World Bank Group President Goal = enhance social & environmental project outcomes 2
3 Accountability at IFC and MIGA World Bank Group Board President World Bank Group IFC MIGA Private sector client Private sector client Private sector client Project-affected communities 3
4 learned How we work: 3 roles CAO OMBUDSMAN dialogue conflict assessment problem-solving CAO COMPLIANCE audits IFC/MIGA social & environmental performance lessons lessons learned CAO ADVISOR independent advice to World Bank Group President and management 4
5 CAO focus = predictability, accountability, outcomes Predictability: Predictable process, clear timelines, easy to understand & communicate Accountability: Focus on professional dispute resolution & audits of IFC/MIGA performance Outcomes: Tangible outcomes for communities and project sponsors; insights and lessons learned for IFC 5
6 IFC & MIGA Policies Policy on Social and Environmental Sustainability Performance Standards 1-8: 1. Social and Environmental Assessment and Management 2. Labor and Working Conditions 3. Pollution Prevention and Abatement 4. Community Health, Safety and Security 5. Land Acquisition and Involuntary Resettlement 6. Biodiversity Conservation/Natural Resource Management 7. Indigenous People 8. Cultural Heritage Policy on Disclosure of Information 6
7 Filing a Complaint 1. IFC or MIGA project 2. Social & environmental issues 3. People believe they are or may be impacted negatively by the project - NGOs can file on behalf of affected peoples - Confidentiality - Any language 7
8 Current CAO Cases NICARAGUA Nicaragua Sugar Estates (Sugar ethanol plant) TURKEY Standard Profil & Assan Aluminum (Manufacturing auto parts & aluminium) CAMBODIA Cambodia Airport II (airport development) COLOMBIA Buenaventura (Container terminal) ECUADOR Interagua (Water infrastructure) PHILIPPINES Ambuklao-Binga (Hydropower dam project) PERU Agrokasa (Export crops) CHILE Aconcagua (Hydropower) ARGENTINA Orion (Pulp and paper mill) SRI LANKA Rainforest Ecolodge (Ecotourism) INDONESIA Wilmar Group (Oil palm production) 8
9 Global context: Why is private sector adopting ADR? Corporate-community relations Social license can you do business without it? Risk management Reputational & financial risks - Conflict = real bottom line costs - Avoid litigation Env & social best practice Investors, consumers, citizens, markets demand best practice 9
10 What is a grievance mechanism (GM)? 10
11 4 Phases of Development Phase 1: Define scope and determine goals Phase 2: Design Phase 3: Implement Phase 4: Monitor, report, and learn 11
12 Phase 1: Define scope and determine goals Do you need a GM? Scope of grievances: - employment, payment (goods, services), contractors, environment (water, air), land, health, safety Type of grievances: - individual complaints? root causes? systemic change? Value to company and to community: - Predictable & equitable - Systematic rather than ad hoc - Trusted and seen as fair - Transparent - Timely & tangible outcomes 12
13 Phase 2: Design Key issues Define zone of impacts (direct and indirect) Understand social structures - Decision-making authorities (traditional, appointed, & elected) - Traditional means to resolving disputes? Create a safe space Start early in project cycle 13
14 Phase 2: Typical Design Elements Receive complaint Screen for eligibility Accept or reject? Develop an approach - what tools? Implement Monitor & evaluate outcomes Communicate and learn 14
15 Phase 3: Implement Institutionalize: Integrate into company decision-making & management systems Capacity building, competence training for staff Engage: Consultative processes with community Tools = participatory monitoring; joint factfinding; dialogue tables 15
16 Phase 3: Tools? Example: Participatory Water Monitoring, Minera Yanacocha, Peru 16
17 Background: Minera Yanacocha, Peru Largest gold mine in Latin America Category A project IFC interest = 5% equity Complainants = Residents of Yanacocha Issues = Mercury spill (water contamination, lack of consultation, benefit sharing) 17
18 Yanacocha outcomes for community 5 year engagement = built skills of community to deal with the issues: Durable dialogue (community roundtable) Participatory water monitoring program - Provided a place at the table for marginalized communities 18
19 Outcomes - Joint fact-finding, participatory monitoring, dialogue roundtable Dialogue means: We are all different, we all have part of the answer,and together we have the solution. The motto of the Mesa de Diálogo y Consenso CAO-Cajamarca 19
20 Phase 4: Monitor, report, and learn Predictability of process - Building trust with community Delivering and showing results - Meaningful, equitable, transparent Learning from lessons - Tackling systemic issues, improving grievance mechanism, and the project 20
21 21
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