STAKEHOLDER ENGAGEMENT & BENEFIT SHARING:

Transcription

1 STAKEHOLDER ENGAGEMENT & BENEFIT SHARING: A RISK MANAGEMENT APPROACH ABHISHEK SINGH In Partnership with:

2 BACKGROUND 1. Hydropower projects generate Substantial Benefits; including electricity generation, flood control, irrigation, fisheries, industrial and domestic water supply, navigation, recreation, tourism, taxes, royalties, and profits to companies. 2. Hydropower Projects may result in a wide range of adverse impacts on local communities such as involuntary displacement of significant numbers of people, loss of livelihoods, damage to species and habitats, and altered aquatic and riparian ecosystems. 3. The traditional compensation alone is usually not sufficient to mitigate all the adverse impacts; 4. Mismatch in stakeholder expectations/demands often results in Project delays or abandonment, Reputational damage, Lack of user acceptance, Exposure to legal action and Security Concerns 5. The equitable distribution of benefits is often a contentious issue. 2

3 BENEFIT SHARING & MECHANISMS Local benefit sharing in hydropower projects is a systematic efforts by project proponents to sustainably benefit local communities affected by hydropower investments Monetary benefit sharing means sharing part of the monetary flows generated by the operation of the hydropower projects with local communities; Direct payments/revenue sharing; Preferential electricity rates; Payments for environmental or ecosystem services; Community development fund; Equity sharing; Non-monetary benefit sharing mechanism include; Improved infrastructure; Support for health and education programs;, Improved access to fisheries and forests/ Watershed management; Employment. 3

4 ENABLING ENVIRONMENT Key Enabling Conditions include: Government Policies and the legal and regulatory framework; Corporate Social Responsibility strategies of the Company; Capacities of local communities; Stakeholder engagement and Transparent Communication Mechanisms; Challenges include; Reconciling Goals of stakeholder (Developers, Project Affected and Local Communities and the State); Ensuring Involvement and Building Consensus amongst Local Communities and Stakeholders; and Ensuring the Accountability of Agencies Entrusted with Benefits Redistribution 4

5 STAKEHOLDER ENGAGEMENT No magic number for consultations. The idea to have an affective and structured process, which is regular and documented Consult everyone, but engage the most important stakeholders in terms of impacts and influence. Local language and knowledge is key- many ice breaking tools and methods depend upon using these skills. Training and use local community members is a great strategy The clients are most worried about raising expectations through consultation and engagement Be prepared to listen! Stakeholders want to be heard and not always told! 5

6 CONSIDERATIONS Consultants/project proponents going with the intention of getting people to participate in their programmes. Cannot demand participation, but need to enable participation. Assuming that stakeholders are constant! Actually they changing and negotiating all the time. Need to take ownership of this sensitive aspect of the project. Choose and Pick approach of engagement may backfire. Staying neutral is important; Have a functional and effective Grievance Redress Mechanism 6

7 STAKEHOLDER ENGAGEMENT MATRIX- IFC APPLICABILITY CRITERIA All business activities Business activities where there are Affected Communities* (Note: In most cases, the requirement for an External Communications Procedure may be met through the Grievance Mechanism) CORE REQUIREMENTS External Communication Procedure: Client to implement a procedure to receive, screen, and address communications from the public, document responses, and adjust the management program. (a) Stakeholder Identification and Analysis (i.e. Stakeholder Mapping) (b) Stakeholder Engagement Planning: - Stakeholder Engagement Plan (SEP) required where adverse impacts on communities are likely - Stakeholder Engagement Framework (For corporate investments and projects where exact location of the project is unknown, but reasonably expected to have adverse impacts) (c) Information Disclosure (d) Consultation: two-way dialogue; ongoing through project cycle (e) Grievance Mechanism (g) Ongoing reporting to communities on Client s Action Plans Business activities with (potentially) significantly adversely affected communities (Note: in such cases, a social specialist should be assigned to the project) Informed Consultation and Participation (ICP): Requires a more in-depth, inclusive process leading to the client incorporating views of Affected Communities (both men and women) into decision-making and documenting the process. Broad Community Support (BCS): IFC is responsible for establishing BCS for the project. BCS verification should be undertaken by a social specialist using the updated BCS matrix and procedure found in Rules and Tools 7