Independent Accountability Mechanism for IFC & MIGA, World Bank Group
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1 Independent Accountability Mechanism for IFC & MIGA, World Bank Group Meeting with Civil Society Organizations in Accra, Ghana December 14, 2017
2 What is CAO? Independent accountability mechanism ( grievance mechanism ) for IFC and MIGA the private sector arms of the World Bank Group CAO addresses complaints from communities affected by IFC and MIGA projects The goal of CAO s work is to improve environmental and social project outcomes
3 Why was CAO Created? 50 Years is Enough : Pressure on World Bank Group in 1990s due to problem projects and perceived lack of accountability CAO was established in 1999 to provide redress for local communities impacted by IFC and MIGA projects Today, all multilateral banks have Independent Accountability Mechanisms (IAMs)
4 Where CAO Interacts Channel for projectaffected people to raise concerns at highest level of decision-making
5 IFC & MIGA: Members of the World Bank Group IBRD IDA IFC MIGA ICSID International Bank for Reconstruction and Development International Development Association International Finance Corporation Multilateral Investment Guarantee Agency International Centre for Settlement of Investment Disputes Loans to middle-income and credit-worthy low-income country governments Interest-free loans and grants to governments of poorest countries Finance for private sector development Guarantees of foreign direct investment noncommercial risks Conciliation and arbitration of investment disputes 5
6 IFC/MIGA Environmental and Social Commitments 1 RISK MANAGEMENT Anticipate risks, avoid, minimize and compensate for any impacts. 2 LABOR Treat workers fairly and provide safe and healthy working conditions. 3 Promote energy efficiency, use RESOURCE EFFICIENCY resources sustainably, and cut greenhouse emissions. 4 COMMUNITY Protect local communities from worksite accidents and other project-related dangers. 5 LAND RESETTLEMENT Avoid involuntary resettlement and minimize the impact on those displaced. 6 BIODIVERSITY Protect biodiversity and ecosystems. 7 INDIGENOUS PEOPLES Protect the rights, dignity, and culture of indigenous populations. 8 CULTURAL HERITAGE Protect cultural heritage and promote equitable sharing of related benefits. POLICY ON ENVIRONMENTAL AND SOCIAL SUSTAINABILITY 6 POLICY ON ACCESS TO INFORMATION
7 What Complaints Can CAO Accept? 1. IFC or MIGA project 2. Environmental and social issues 3. People who believe they are, or may be, impacted by the project Any format and any language CSOs often support communities in filing complaints
8 How CAO Works Achieving remedy Dialogue Clients and communities Determining IFC/MIGA compliance IFC/MIGA project impacts Independent advice Improving performance
9 Who files complaints to CAO? Profile of Complainants, FY2017 Percentages do not add up to 100% because three complaints were filed by more than one type of organization. The category for individuals and community members denotes complaints filed without the support of another organization.
10 Complaints by Region, FY cases in 28 countries
11 Complaints by Sector, FY2017
12 Environmental and social issues raised by complainants, FY2017
13 CAO Cases in Sub-Saharan Africa Cameroon & Chad: Chad-Cameroon Oil Pipeline Guinea: Nedbank/Siguiri gold mine Kenya: Bidco (Consumer goods manufacturing) South Africa: Lonmin/Marikana mine Togo: Lomé Port Development Uganda: Bujagali Hydropower Project Uganda: Agri-Vie/New Forests Company (commercial forestry)
14 The complaint process in more detail Achieving remedy Dialogue Clients and communities Determining IFC/MIGA compliance IFC/MIGA project impacts Independent advice Improving performance
15 Complaint Assessment Objectives: Develop understanding of the issues & engage all stakeholders: community, private sector client, government, IFC/MIGA teams Develop trust with the parties: no judgement on merits of complaint at this stage What it involves: Stakeholder mapping; conflict assessment Explain different CAO processes and ensure informed decision making Allow parties an opportunity to select process they want to initiate (Dispute Resolution or Compliance)
16 Dispute Resolution can be beneficial in: Empowering parties to determine outcomes Dispute Resolution Providing a voluntary process Exploring creative solutions Building relationships Achieving remedy
17 CAMEROON Chad-Cameroon Pipeline Project Construction of 1070 km pipeline to transport crude oil from Chad to floating facility 11-km off the Cameroon coast with IFC support. CAO has convened parallel mediation processes since 2012 on complex set of issues including environmental and health impacts, HIV/AIDS, and loss of livelihood. By 2014, agreements on four individual complaints. By 2017, agreements with communities of fishermen, indigenous peoples, and farmers. CAO will continue monitoring implementation of these three community agreements over the coming months.
18 Focus is on IFC/MIGA performance Compliance Appraisal identifies which complaints merit investigation - Serious environmental and social concerns? - Systemic importance? Drawing on international expertise How IFC/MIGA has implemented its commitments Understand underlying causes to any gaps
19 UGANDA Bujagali Hydropower Project Bujagali is run-of-the-river power plant on Nile River with 100-kilometer transmission line. $750 million public-private partnership by Bujagali Energy Limited. $130 million IFC loan, $115 million MIGA guarantee, and financing from World Bank, African Development Bank, and European Investment Bank. CAO received 8 complaints from communities and individuals over the past 16 years. Numerous alleged harms including: lack of worker compensation, wages, and benefits; inadequate land displacement compensation; crop loss; and inadequate biodiversity protection. IFC re-financing project and complainants hopeful that resettlement and worker-related compensation will be resolved.
20 Advisory Work Important resource for learning Improving performance of IFC/MIGA
21 CONTACT US Compliance Advisor Ombudsman (CAO) 2121 Pennsylvania Avenue NW Washington, DC 20433, USA Phone: Fax: Learn more about our work this year at CAO-AR17.org
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