Compliance Advisor/Ombudsman (CAO), for IFC & MIGA, World Bank Group Workshop

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

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

3. What is the CAO? • Independent Accountability Mechanism • Addressesconcerns 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 World Bank Group Board President World Bank Group IFC MIGA Private sector client Private sector client Private sector client Project-affected communities

5. IFC & MIGA Policies www.ifc.org/sustainability • 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. Eligibility: Filing a Complaint 1. IFC or MIGAproject 2. Social & environmentalissues 3. People believe they are or may be impactednegatively by the project • NGOs can file on behalf of affected peoples • Confidentiality • Any language

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

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

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

10. Current CAO Cases TURKEYStandard Profil & Assan Aluminum (Manufacturing – auto parts & aluminium) GEORGIABTC Pipeline Vale-04/05(Oil pipeline) RUSSIARusskiy Mir-03(Oil storage and transportation) KAZAKHSTANLukoil Overseas-03 (Oil & gas field) NICARAGUANicaragua Sugar Estates (Sugar ethanol plant) PHILIPPINESAmbuklao-Binga(Hydropower – dam project) ECUADORInteragua (Water infrastructure) KENYAPan African Paper Mills (Pulp and paper mill) INDONESIAWilmar Group(Oil palm production) PERUAgrokasa(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: • 1000+ 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

12. Recent CAO Outcomes: Philippines • 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

14. Ombudsman: How we work • Information Sharing • Assisted Negotiation / Mediation • Joint Fact-Finding • Community Monitoring • Consultation and Dialogue • Build on customary methods of resolving disputes • 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 15

16. Summary • CAO is independent accountability mechanism for IFC and MIGAprojects • “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

17. Useful links IFC www.ifc.org/projects IFC social & environmental policies www.ifc.org/enviro MIGA www.miga.org/projects

18. Contact CAO www.cao-ombudsman.org Office of the CAO 2121 Pennsylvania Avenue NW Washington, DC 20433 USA Email: cao-compliance@ifc.org Tel: + 1 202 458 1973 Fax: + 1 202 522 7400