1. Provincial Investment Monitoring in Lao PDR Poverty- Environment Initiative (PEI ), April 2011 Monitoring as a key investment management activity

2. Approved Investments Monitoring Basic Impact/risk monitoring Compliance monitoring Investment data collection Scope of PEI monitoring framework

3. Interdepartmental monitoring activity: Planning and Investment (DPI) Industry & Commerce Agriculture and Forestry (PAFO) Water Resource s and Environment (WREO) Land Management (NLMO) Labor and Wellfare Scope of PEI monitoring framework Approved Investments Monitoring social impacts environmental impacts economic impacts

4. Types of monitoring and data: investment data Investment data collection (e.g. name of company, type of business, local jobs created, tax revenues generated)

5. Compliance monitoring (does the company follow the concession, IEE/ESIA or other contractual agreements)  Agreements contain measures to protect communities and the environment  Agreements often build on lessons learnt and intend to avoid bad impact that has happened before. Types of monitoring and data: compliance

6. Impact/risk monitoring (are impacts/risks on the environment and the local people notable)  Poor people strongly rely on the environment since natural resources remain an important source of livelihood.  Health of the environment links to the well being of local people. Types of monitoring and data: impacts and risks

7. Possible consequences for economic development: A continuing degradation of natural resources can also impede economic development of the province.  main investment sectors depend on the natural resource base. Dependence on natural resource base

8. General InformationCompany informationname, address, licences, type of business, concession size, ESIA/IEE Project locationaddress, GPS, proximity to communities Investment dataFinancial datacapital, revenues, expenses Taxesdifferent types of taxes, tax exemptions SocialEmploymentdomestic, international, female staff on different levels. Training/knowledge transferstaff training provided Working conditionsaverage salaries, leave regulations, availability of contracts, social security Health and securitysafety and health protection, accidents, access to water and sanitation, HIV or drug abuse prevention Types of data

9. CommunityContribution to community (infrastructure, training), community issues (concession boundary encroachment, food security) EnvironmentResourceswater usage, energy sources, green technologies Landproductive area, boundaries, forest/wetland clearings, clearing or displacement of agricultural land Soilsigns of erosion Watersigns of bad water quality, wastewater facilities, distances between areas with use of chemicals to water bodies AirDust, burning, air pollution control

10. Biodiversityprotected areas, signs of illegal hunting, wildlife as main resource Wastedisposal of oil, chemicals or medical waste, rubbish management, sewage disposal Riskstorage and handling of hazardous materials Compliance checkcompliance check against a project specific list of all agreements Compensations Other agreements Types of data

11. Constraints of the monitoring Does not cover impact monitoring where specific equipment for analysis is needed Can only assess basic social and environmental impacts, without specific reference to regulatory standards. Covers mostly indicators that can be assessed on a one-time spot check (some questions need to be asked to the community to assess past and current situations)

12. Data- base Investments Law Concession IEE/ESIA Monitoring Development plans and priorities social impacts environmental impacts economic impacts assumptions, actions changing conditions Learning, adaptation immediate action Analysis/ reporting Data entry

13. Investment monitoring data and support for investment decisions

14. Investment Management Cycle Identify criteria for quality investments Investment promotion, calling list Evaluation of investment applications, incl. ESIA Contract negotiations and approval Monitoring Enforcement of relevant laws and agreements Data analysis Learning, adaptation

15. Support for investment decisions What is the contribution of monitoring data to sustainable management of investments? 1. Identification of sustainable investments  monitoring can show that some sectors or management standards may have less social and environmental impacts than others  Help to focus on good quality investments and to promote them specifically – what types of management and social responsibility standards create quality?

16. 2. Identification of shortcomings in investments to inform better management  Example: the monitoring can show that investors are not providing adequate protective equipment for staff or that they are not complying with contract/concession agreements.  This information can lead to changes in investment management (new conditions for investors) Support for investment decisions

17. 3. Assessment if investments are effectively contributing to strategies and plans  Contribute important data towards Monitoring & Evaluation requirements at the Central level to assess progress and achievements of the NSEDP  Over time this data contributes to evaluation of provincial investment strategies and development goals Support for investment decisions

18. Monitoring data for Investment planning ? Which types of investments have proved to: have generated added value to local socio-economic development to be also environmentally sustainable

19. Monitoring data for Investment planning Monitoring data contributes to effective management of investments and supports identification of quality investments

20. Preparation Pre-monitoring protocol: What actions do you need to take before going to do the monitoring? (i.e. announcement, authorization) What do you need to bring with you? Preparation for compliance monitoring  you need to know the investor agreements  put together project specific list of agreements 1 5 steps of investment monitoring

21. Monitoring / site visit Project data collection Compliance check Impact and risk assessment Talk to community members  Different team members have different areas of expertise  Monitoring supports the mandate of the different departments 2

22. 5 steps of investment monitoring Follow-up and enforcement of compliance Possible situations that should trigger action: non compliance immediate threat to the environment immediate threat to the health of people  Identify questions and tresholds in the monitoring form that will trigger action  Identify mechanism for reporting and enforcement of compliance and laws 3

23. 5 steps of investment monitoring Data entry into database 4  Make information accessible for all involved line ministries

24. Data analysis and reporting Assessing data for provincial Monitoring & Evaluation and for development planning  PEI/UNDP/IPD to develop guidance to how to analyze data and assess cumulative impact of investments in the province 5 5 steps of investment monitoring

25. 1 3 main goals of investment monitoring control of compliance 2 3 get data for reporting and data analysis for further development planning assessment of impacts and identification of risks

26. 2 main benefits of monitoring for the province Protect communities and the environment from negative impacts. 1 Monitoring data contributes to effective management of investments and supports identification of sustainable investments 2