Compliance Advisor Ombudsman (CAO) is the independent

recourse and accountability mechanism for the International Finance

Corporation (IFC) and Multilateral Investment Guarantee Agency (MIGA),

World Bank Group

Compliance Advisor Ombudsman (CAO) Independent Recourse & Accountability Mechanism

for IFC & MIGA

CSO Orientation, Spring Meetings

April 8, 2014

Meg Taylor

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What is the Compliance Advisor Ombudsman (CAO)?

CAO addresses complaints from people affected by World Bank Group private sector projects (IFC/MIGA)

• Independent

• Provides public accountability & grievance redress

• Reports to World Bank Group President

Goal = enhance social & environmental project outcomes

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Where does CAO interact?

IFC MIGA

Project-affected

communities

World Bank Group Board

Private sector client

Private sector client

Private sector client

PRESIDENT Jim Kim

Board members

are accountable to citizens of their nations

CAO provides a direct channel of

accountability for project-

affected people

What complaints are eligible?

1. Project IFC or MIGA is participating in, or actively considering

2. Complaint raises social & environmental concerns related to that project

3. Complainant believes they are affected negatively by these concerns

Important points:

- CAO does not make a judgment on the merits of the issues raised in the complaint when finding it eligible for assessment

- CSOs can file a complaint on behalf of affected people

- Any language

- Confidentiality, where requested

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How does CAO work? 3 core functions focused on outcomes

Project-level remedy

Work with IFC/MIGA clients and affected communities to help improve outcomes on the ground

Collaborative, problem solving approaches

IFC/MIGA performance

Investigations of IFC environmental and social performance

Involves independent verification & experts

Systemic concerns

Independent advice to President and senior management on systemic issues, environmental and social trends, policy concerns

Practical advice is drawn directly from CAO case experience

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COMPLIANCE

DISPUTE RESOLUTION (Ombudsman)

ADVISOR

1.

3.

2.

IFC Policy Framework informs CAO’s work

IFC Policy on Environmental and Social Sustainability

IFC Performance Standards 1-8:

1. Assessment and Management of Environmental and Social Risks and Impacts

2. Labor and Working Conditions

3. Resource Efficiency and Pollution Prevention

4. Community Health, Safety, and Security

5. Land Acquisition and Involuntary Resettlement

6. Biodiversity Conservation and Sustainable Management of Living Natural Resources

7. Indigenous People

8. Cultural Heritage

IFC Policy on Access to Information

Access the policies at: www.ifc.org/sustainability 6

Overview of CAO’s caseload

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Currently managing 48 active cases in 19 countries

Complaints by region 2000 – 2014: - Latin America (31%); Central Asia (29%); Asia region (22%); Africa (16%) Middle East (1%)

•Numbers reflect level of awareness, knowledge of projects, cultural barriers?

Complaints by sector 2000 – 2014: - Extractives (47%), infrastructure (20%), agribusiness (13%), manufacturing 12%

•Resource intensive sectors (i.e. land and water use)

Types of environmental & social issues: Project due diligence & supervision; consultation & disclosure; socio-economic benefits; pollution; land take & settlement; water security; labor & working conditions; Indigenous Peoples

Summary of key points

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CAO provides independent recourse for communities affected by IFC and MIGA projects

CSOs can file a complaint on behalf of an affected individual or community

Dispute resolution between affected communities, companies and other stakeholders

Compliance oversight of IFC/MIGA environmental and social performance

Confidentiality for complainants, where requested

Monitoring of case outcomes to ensure agreements are implemented and/or compliance findings remediated

All CAO reports are made public at www.cao-ombudsman.org

www.cao-ombudsman.org

Contact us

www.cao-ombudsman.org

www.facebook.com/CAOoffice Twitter - @CAOoffice

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CAO CASE EXAMPLES

CAO Dispute Resolution work in Nicaragua: Nicaragua Sugar Estates Ltd

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Complaint to CAO March 2008:

Chronic Kidney Disease among sugarcane cutters – claim caused by exposure to agrichemicals

Claim company strongly denied

Parties deadlocked in a cycle of recrimination and denial

Outcomes:

Independent medical study

Livelihood and health care initiatives benefiting 2,000 community members (food aid, renal clinic, new housing, microcredit fund)

Status: Monitoring implementation of agreements which includes a number of community projects

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CAO Compliance Investigation: Dinant, Honduras

April 2012: CAO initiates compliance investigation of IFC’s investment in Dinant after concerns raised by CSOs about forced evictions, violence and deaths on & around Dinant palm oil plantations in the Aguan valley.

Jan 2014: CAO releases highly critical findings of IFC non-compliances which receives widespread external attention and press.

WBG Board demands robust actions to address CAO findings and lessons learned from IFC.

Calls for independent investigation in Honduras into credible allegations of deaths.