Managing risk and maintaining license to operate: Participatory planning and monitoring in the extractive in the extractive industries A training module - PowerPoint PPT Presentation

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Managing risk and maintaining license to operate: Participatory planning and monitoring in the extractive in the extractive industries A training module

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Title: Managing risk and maintaining license to operate: Participatory planning and monitoring in the extractive in the extractive industries A training module


1
Managing risk and maintaining license to
operateParticipatory planning and monitoring
in the extractive in the extractive industriesA
training module
2
Training module overview
  • Session 1 Participatory approaches to
    corporate-community relations in the extractive
    industries context, concepts, benefits and risks
  • Session 2 Participatory planning and monitoring
    tools and mechanisms for the project cycle
  • Session 3 Key focus areas, challenges and
    success factors
  • Session 4 Understanding diverse perspectives

3
Participatory planning and monitoring
  • Session 1
  • Participatory approaches to
  • corporate-community relations in the
  • extractive industries
  • context, concepts, benefits and risks

4
Key concepts for a shared vocabulary
  • What do the following terms mean to you?
  • Participation
  • Engagement
  • Accountability
  • Social license to operate

5
The natural resource context
Groups Questions for discussion
Community representatives What are common problems for communities? What kinds of changes tend to occur in communities around extractive operations?
Company representatives What are common problems for communities? What kinds of changes tend to occur in communities around extractive operations?
Other stakeholders (eg donors, INGOs) What are common social, political and environmental characteristics of localities where extractive companies have operations?
Government (local and national) What are common social, political and environmental characteristics of localities where extractive companies have operations?
6
Common characteristics of the local context
  • Weak local governance
  • Legacy of conflict
  • Struggles over distribution of the benefits of
    extractive development
  • Uncertain land tenure
  • Perceived lack of legitimacy of the laws and
    regulations which govern MNC activity
  • Varied institutions of culture and history in
    isolated areas
  • Complicated network of relationships within
    communities
  • Population migration into economic zone of
    opportunity
  • Companies as de facto governance and/or service
    providers

7
Implications for companies, communities and
governments
  • Participatory approaches mean a shift in
  • Corporate culture and roles
  • Strategic thinking
  • Business practices and communication
  • To achieve
  • Jointly defined problem and solution
  • Shared resources and responsibilities
  • Leveraged cash, expertise, systems and networks

8
Features of participatory approaches
  • Source of expertise
  • Time scale of parties
  • Accommodates changing conditions, changing needs,
    priorities and changing expectations.
  • Actions and implementation are collaborative
    responsibility is shared
  • Long term process, but indicators of progress and
    co-monitoring can demonstrate achievements.

9
Spectrum of Community-Company Engagement
10
Participatory approaches
  • How might a participatory approach help you in
    your work?
  • How might a participatory approach hinder you in
    your work?

11
Benefits and risks
  • What potential benefits and risks can you see
    from taking a participatory approach
  • From a company perspective?
  • From a community perspective?

12
Potential benefits for companies
  • Improve / maintain local social license to
    operate
  • Enhance employee morale, satisfaction, motivation
    and retention
  • Reduce risk of conflict and delays / ensure
    stable operating environment
  • Prospect of faster permitting and approvals
  • Reduce risk of global criticism and reputational
    damage
  • Help obtain project financing
  • Ensure more effective use of corporate resources
  • Help meet regulatory requirements for local
    benefit from extraction
  • Local knowledge can complement and enhance
    technical expertise
  • Increase productivity

12
13
Potential benefits for communities
  • Greater voice in planning and decision-making.
  • More likely that development outcomes meet the
    needs and aspirations of local communities.
  • Sustainability and increased self reliance, and
    strengthened local institutions over time.
  • Access to resources, including new ideas,
    technology, skills.
  • Potentially stronger economic base, which could
    contribute to rural capital formation.

13
14
Risks and challenges
  • For companies
  • Building shared understanding requires
    significant investment of time and resources
  • Relinquishing control over how resources are
    allocated can be counter-intuitive and
    uncomfortable
  • Higher cost outlays which may not be recoverable
  • Obligation schedules and procurement concerns
  • Different expectations and language
  • Requires skills and capacity for working across
    cultures and with communities
  • For communities
  • Building shared understanding and trust requires
    significant investment of time
  • Expected benefits are not clear, and are usually
    only realized after many social and economic
    costs have already been borne by communities
  • Risk of being co-opted into appearing to
    support something they do not
  • Changing power relationships
  • Losing independence and ability to criticise
  • Different expectations and language

14
14
15
Participatory planning and monitoring
  • Session 2
  • Participatory planning and monitoring tools and
    mechanisms for the project cycle

16
The project cycle
Construction
Operations
Expansion
Feasibility
Divestment
Exploration
Legacy
Concessions negotiations
E n g a g e m e n t
17
Range of participatory tools and mechanisms
  • Participatory planning
  • Community forums
  • Good neighbor agreement
  • Community suggestion boxes
  • Participatory budgeting
  • Community scorecards
  • Citizen report cards
  • Community monitoring
  • Training and capacity building, access to
    information, and mutually agreed-upon metrics for
    monitoring are integral to each of the tools.

18
Tools and mechanisms on the spectrum of
participation
Increasing levels of participation and community
impact
Nonparticipation
Co-planning and monitoring
  • No shared understanding
  • Lack of legitimacy
  • No power sharing
  • Create linkages with different actors to open
    information flows
  • Naming, shaming and faming
  • Stakeholders are co-decision makers
  • Industrial sabotage, hostage taking
  • Company ignoring local knowledge
  • Civil society organization
  • Register complaints with local authorities

Description
  • Co-planning committees and partnerships
  • Community forums
  • Co-budgeting
  • Co-evaluation
  • Co-monitoring
  • Community monitoring
  • Community scorecards
  • Citizen report cards
  • Good Neighbor Agreements
  • Training/ hiring/ sourcing strategies
  • Information sharing
  • Community suggestion boxes
  • Heightened security
  • Third party facilitation stakeholder engagement

Tools
19
Tools and mechanisms in the project cycle
  • Information meetings
  • Co-monitoring
  • Contract negotiations

Exploration
Co-monitoring, measurement and verification
Legacy
Partner of choice
  • ESIA
  • Sourcing

Feasibility
  • Company responsibility for unforeseen consequences
  • Co-identification of issues and indicators
  • Co-target setting hiring, sourcing, training
  • Roles responsibilities agreements
  • Closure planning
  • Information sharing
  • Local skills training programs
  • Contract and concessions negotiations
  • Advocacy tools, accountability tools, and
    community capacity to hold company accountable
    for unforeseen consequences

Expansion
Divestment
Construction
  • Employment and training
  • Sourcing and procurement
  • Infrastructure access
  • Environmental restoration
  • Sustainable livelihoods
  • Transfer of assets

Operations
  • Employment and training
  • Sourcing and procurement
  • Community monitoring
  • Community reviews
  • Good neighbor agreements
  • Suggestion box
  • Interest group committees and forums
  • Community scorecard
  • Participatory sustainability planning and
    budgeting
  • Citizen report card
  • Co-budgeting
  • Support community forums
  • Company scorecard
  • Evaluation
  • Citizen report card

20
Applying tools to case examples
  • What is the priority?
  • Which tool or tools would best address the
    priority?
  • How would it work?
  • At which points in the project cycle might it be
    useful?

21
Discussion questions
  • Which tools / mechanisms might be useful in your
    context?
  • At which stages in the project cycle?
  • What are the benefits and risks at each stage?

22
Participatory planning and monitoring
  • Session 3
  • Key focus areas, challenges and success factors

23
Critical focus areas
  • Employment / hiring locally and training
  • Sourcing and procurement / supply chain
  • Intra-household dynamics and the family
  • Access to infrastructure
  • Environment

24
Case example exercise
  • What factors might promote success or limit
    impact?
  • How viable might this mechanism be in your
    context?
  • What might the benefits and risks be in your
    context?
  • How could it be modified / adapted to better fit
    your context?

25
Challenges and success factors
  • Understanding the many actors
  • Multiple realities
  • Power relations and equity participation
  • Bias towards science
  • Trust
  • Style of communication

26
Possible diagnostic questions
  • What stage of the cycle is the project in?
  • How robust are local governance institutions?
  • How organised is civil society?
  • How cohesive is the local community?
  • How high is standard of living in local
    community?

27
Exercise
  • Conduct preliminary diagnostic for particular
    district or region
  • Select candidate PPM mechanism
  • Design basic strategy for introducing mechanism
  • Assess risks
  • Develop key performance indicators

28
Participatory planning and monitoring
  • Session 4
  • Understanding diverse perspectives

29
Multiple actors in the extractives context
Local-Global Interactions
Local Media, internet
Partner Corporations
State company
Operating company
Financing institutions
Federal Ministry
Local businesses
Economic
Environment
Society
Local government
Local NGOs
Intl media, bloggers
Donor Community
Community people
Other - individuals
Internatl Stake- holders
29
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