1 Compliance Advisor/Ombudsman (CAO), for IFC & MIGA, World Bank Group Workshop Marrakech, Morocco, July 2009

What is the World Bank Group? 2 WORLD BANK PRESIDENT Robert B. Zoellick World Bank Group Board International Finance Corporation (IFC) Multilateral Investment Guarantee Agency (MIGA) International Development Association (IDA) International Bank for Reconstruction & Development (IBRD) Funding to government projects Funding to private sector projects

3 What is the CAO?  Independent Accountability Mechanism  Addresses concerns of people affected by IFC/MIGA projects -CAO is a ‘grievance mechanism’ -Independent -Reports to World Bank Group President  Goal = enhance social & environmental project outcomes

4 Accountability structure at IFC and MIGA IFCMIGA President World Bank Group Project-affected communities World Bank Group Board Private sector client

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 5

Eligibility: 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 6

Where does CAO interact? Private sector client Project-affected communities Private sector client Ombudsman Private sector client

Where does CAO interact? IFC MIGA Ombudsman Compliance Private sector client Project-affected communities Private sector client Ombudsman Private sector client

Where does CAO interact? IFC MIGA Ombudsman Compliance Advisory President & Management Private sector client Project-affected communities Private sector client Ombudsman Private sector client

10 Current CAO Cases GEORGIA BTC Pipeline Vale-04/05 (Oil pipeline) KAZAKHSTAN Lukoil Overseas-03 (Oil & gas field) RUSSIA Russkiy Mir-03 (Oil storage and transportation) INDONESIA Wilmar Group (Oil palm production) ECUADOR Interagua (Water infrastructure) KENYA Pan African Paper Mills (Pulp and paper mill) NICARAGUA Nicaragua Sugar Estates (Sugar ethanol plant) TURKEY Standard Profil & Assan Aluminum (Manufacturing – auto parts & aluminium) PHILIPPINES Ambuklao-Binga (Hydropower – dam project) PERU Agrokasa (Export crops)

11 Recent CAO Outcomes: Indonesia  Global palm oil trading company  Plantations cleared people’s land was this legal? will they be compensated ?  CAO convened dialogue and assisted community with negotiations OUTCOMES:  villagers had equal place at negotiations  Short-term moratorium on palm oil expansion  Financial compensation & return of land  Funds made available for local enterprises  IFC due diligence under audit

Recent CAO Outcomes: Philippines 12 Complaint from indigenous leaders Privatization of 2 hydropower plants Government expropriated land 60 years ago; lack of local benefits CAO facilitated multi-party agreement OUTCOMES  Agreement between community leaders, local government & power company June 2009  Land use rights returned = new Cultural Heritage Site  Social development funds for livelihood programs (tourism, agriculture, infrastructure etc)

13 Recent CAO Outcomes: Turkey  Complaint by Turkish trade union regarding workers’ right to freedom of association OUTCOMES  Improved visibility of labor standards in workplace  Training for company management and workers in IFC’s labor standard  Labor audit 6 months after training

Ombudsman: How we work  Information Sharing  Assisted Negotiation / Mediation  Joint Fact-Finding  Community Monitoring  Consultation and Dialogue  Build on customary methods of resolving disputes 14  Information Sharing  Assisted Negotiation / Mediation  Joint Fact-Finding  Community Monitoring  Consultation and Dialogue  Build on customary methods of resolving disputes

15 Compliance: How we work  Compliance audit of IFC/MIGA’s due diligence - not the company  Investigation by independent panel of experts  Report goes to President, Management & public – audit kept open until issues addressed

Summary  CAO is independent accountability mechanism for IFC and MIGA projects -“Grievance mechanism”  Helps resolve concerns of project- affected communities -Improve outcomes on the ground  CAO strives to be neutral, fair, and transparent -Confidentiality -Language is not a barrier -Use independent mediators and experts 16

Useful links IFC IFC social & environmental policies MIGA 17

Contact CAO Office of the CAO 2121 Pennsylvania Avenue NW Washington, DC USA Tel: Fax: