Compliance Advisor/Ombudsman (CAO),
for IFC & MIGA, World Bank Group
Workshop
Marrakech, Morocco, July 2009
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What is the World Bank Group?
World Bank Group Board
WORLD BANK PRESIDENT
Robert B. Zoellick
International
Bank for
Reconstruction &
Development
(IBRD)
International
Development
Association
(IDA)
International
Finance
Corporation
(IFC)
Multilateral
Investment
Guarantee
Agency (MIGA)
Funding to
Funding to
government projects
private sector projects
2
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
3
Accountability structure at IFC and MIGA
World Bank Group Board
President
World Bank Group
IFC
Private
sector client
MIGA
Private
sector client
Project-affected
communities
Private
sector client
4
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
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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
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Where does CAO interact?
Private
sector client
Private
sector client
Private
sector client
Ombudsman
Project-affected
communities
Where does CAO interact?
IFC
MIGA
Compliance
Private
sector client
Private
sector client
Private
sector client
Ombudsman
Project-affected
communities
Where does CAO interact?
President &
Management
IFC
Advisory
MIGA
Compliance
Private
sector client
Private
sector client
Private
sector client
Ombudsman
Project-affected
communities
Current CAO Cases
TURKEY
GEORGIA
Standard Profil
& Assan Aluminum
(Manufacturing – auto parts
& aluminium)
RUSSIA
BTC Pipeline Vale-04/05
Russkiy Mir-03
(Oil storage and
transportation)
(Oil pipeline)
KAZAKHSTAN
NICARAGUA
Lukoil Overseas-03
(Oil & gas field)
Nicaragua Sugar Estates
(Sugar ethanol plant)
PHILIPPINES
ECUADOR
Interagua
(Water infrastructure)
KENYA
Pan African Paper Mills
(Pulp and paper mill)
Ambuklao-Binga
(Hydropower – dam
project)
INDONESIA
Wilmar Group
(Oil palm production)
PERU
Agrokasa
(Export crops)
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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
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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)
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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
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Ombudsman: How we work






Information
Information Sharing
Sharing
Assisted
Assisted Negotiation
Negotiation // Mediation
Mediation
Joint
Joint Fact-Finding
Fact-Finding
Community
Community Monitoring
Monitoring
Consultation
Consultation and
and Dialogue
Dialogue
Build
Build on
on customary
customary methods
methods of
of resolving
resolving
disputes
disputes
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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
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Summary
 CAO is independent accountability
mechanism for IFC and MIGA projects
- “Grievance mechanism”
 Helps resolve concerns of projectaffected 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
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Useful links
IFC
www.ifc.org/projects
IFC social & environmental policies
www.ifc.org/enviro
MIGA
www.miga.org/projects
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Contact CAO
www.cao-ombudsman.org
Office of the CAO
2121 Pennsylvania Avenue NW
Washington, DC 20433
USA
Email: [email protected]
Tel: + 1 202 458 1973
Fax: + 1 202 522 7400
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