Compliance Advisor/Ombudsman Independent Recourse Mechanism for the International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency (MIGA) The World Bank Group

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Compliance Advisor/OmbudsmanIndependent Recourse
Mechanismfor the International Finance
Corporation (IFC) and Multilateral Investment
Guarantee Agency (MIGA)The World Bank Group
2
CAO responds to complaints on private sector
projects in the World Bank Group

• CAO addresses complaints from people affected by
  IFC/MIGA projects
• CAO is a grievance mechanism
• Independent
• Reports to World Bank Group President
• Goal enhance social environmental project
  outcomes

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Dispute resolution corporate accountability

• Risk management
• Reduce reputational financial risk
• Avoid litigation
• Corporate-community relations
• Social license to operate is important

• Social and environmental management
• Best practices
• Sends strong signal to investors and markets

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Conflict different types, shapes and forms
TURKEYLabour conflict (Global Manufacturing
Services)
GuatemalaLand conflict (Oil Gas Mining
Chemicals)
KAZAKHSTANEnvironmental conflicts (Oil Gas
Mining Chemicals)
PHILIPPINES Land conflict (Infrastructure)
ECUADORWater conflict (Infrastructure)
DRCSecurity Conflcit (Oil Gas Mining Chemicals)
PERU Environmental conflict (Oil Gas Mining
Chemicals)
INDONESIA Land conflict (Agribusiness)
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The Kilwa Incident a case history

• Anvil Mining a copper mine in eastern DRC with
  MIGA risk guarantees.
• On 14 October reports of a limited local uprising
  and agitation, company personnel evacuated.
• Anvil implicated
• DRC military use return flights from evacuation
  and obtain use of Anvil vehicles during their
  assault.
• Military supress an uprising in Kilwa, up to 100
  civilian deaths.
• CAO investigation Voluntary Principles on
  Security Human Rights and deeper community
  relations are key opportunities.

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Three cues to greater conflict predictability

• A Country/ host context

B Project impacts
C Client capacity
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5 substantive project review questions
1. What is the status of host country governance?
5. Are there appropriate grievance channels?
C
B
D
Project
A
4. How experienced is the client and project team?
2. Has the project met credible
social/environmental standards?
3. Is there a conflict analysis?
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• www.cao-ombudsman.org