Dispute Resolution, FY2017

21

DISPUTE RESOLUTION

CASES HANDLED

in

15

COUNTRIES

FULL OR PARTIAL
AGREEMENTS REACHED IN OVER

75%

OF CASES

2

CASES CLOSED

after implementation
of agreements

3

CASES TRANSFERRED
to compliance

Through dispute resolution, CAO works to resolve issues raised in a complaint using a collaborative problem-solving approach. This voluntary process provides opportunities for affected communities and the IFC or MIGA client to engage directly with one another to address environmental and social concerns related to a project.

This year, communities together with IFC and MIGA clients all over the world reached significant agreements and milestones through voluntary dispute resolution processes facilitated by CAO. CAO handled 21 cases in varying stages of dialogue in FY2017, with 75 percent of these reaching partial or full agreement, or settlement monitored by CAO. This included agreements in Cambodia, Chad, and Mongolia.

The road to agreement involves effort and commitment by the parties. This work continues after the agreements are signed and the focus moves to implementation and monitoring. Throughout the process, CAO helps provide the appropriate structure and support to the parties. As the parties work to address challenges together, their relationships are often transformed. These elements, and more, are explored below.

Facilitating Dialogue

Laying the groundwork

CAO moved six cases through the preparatory phase of dialogue this year, working jointly with communities and companies to develop a platform for effective engagement. This work includes identifying a skilled mediator, determining who the parties will mandate as their representatives, and what principles should guide their engagement. Commonly called “ground rules,” these principles cover aspects such as confidentiality, information sharing, and use of media. During this early engagement, community and company representatives experience the potential of working together and often start to build trust.

CAO also worked to build the capacity of the parties in 11 cases (see box 1). This included preparing them for joint meetings, and conducting training in communication and negotiation. These activities often continue throughout the dialogue process.

Ways CAO helped the parties get started this year:

Morocco | Community and company representatives met to exchange information and hear one another’s perspectives, and agreed to engage in a mediated process. Learn More

Bangladesh | CAO provided separate capacity building workshops to the parties to increase their understanding of facilitated negotiation and draw up ground rules. Learn More

Indonesia | The parties met in the presence of a local religious leader to exchange views and agree on a way to resolve concerns related to a hydropower project. Learn More

Finding Solutions Through Dialogue

Once ground rules, scope, and structure are agreed, dialogue can start. Core elements of a dialogue process are that it is voluntary, and the parties — working with a mediator (see box 2) — control design of the process and share responsibility for the outcomes. CAO remains committed to supporting the dialogue provided there is good faith among the parties and satisfactory progress. During this process, relationships are often built that long outlast CAO’s involvement and exit.

Six cases reached partial or interim agreements this year, and a further seven were fully settled.

Dialogue is ongoing in two cases, and and three where the parties did not reach agreement were transferred to compliance. One of these was in South Africa, where CAO worked with the women of Marikana and Lonmin, a large platinum producer. Through separate and joint meetings, the parties agreed on principles to guide their interaction, including confidentiality, good faith, and respect. While agreement regarding the issues raised in the complaint was not reached, the preparatory stages were important in providing a platform for the parties to interact.

Interim Agreements Reached

Six cases reached partial or interim agreements this year. Highlights include:

Albania | The parties reached interim agreements including an independent study to assess seismic activity and joint monitoring trips to assess environmental impacts of an oil and gas development. Learn More

Nicaragua | A joint agreement was signed in January 2017 between former workers and Montelimar, a sugar producer. Agreed actions include provision of health care and livelihood support to former workers affected by chronic kidney disease. Learn More

Case Highlight

Cambodia

Representatives of the community, company, government, and CAO shake hands in recognition of an agreement reached at Nye Village, Ratanakiri, May 2017 (CAO).

Significant agreements were reached in Cambodia this year, including the return of spirit mountains and implementation of an earlier agreement to restore water sources and roadways.

Progress in Cambodia as Indigenous Communities and Company Reach Agreements in Land Dispute

A landmark agreement builds on previous progress: Significant agreements were reached in Cambodia this year, where CAO is mediating a dispute between a company operating rubber plantations and indigenous communities in Ratanakiri Province. Following a series of CAO-facilitated meetings, representatives of 11 affected villages, the company, and representatives of nongovernmental organizations (NGOs) issued a Joint Statement setting out agreements to address some of the concerns raised in the complaint, including the return of spirit mountains and implementation of an earlier agreement to restore water sources and roadways. The parties agreed to cooperate with the government of Cambodia to enable the full implementation of the Joint Statement and to continue working together through the CAO process to address remaining issues.

A government working group is assisting the parties: The agreements have led to joint field trips of the parties with local authorities, NGO advisors, and CAO to learn about the boundaries of company and village lands. The provincial government has established a working group to help implement the agreements. CAO’s work facilitating the dialogue process is continuing, and the parties meet regularly to discuss resolution of outstanding issues.

Significant agreements were reached in Cambodia this year, including the return of spirit mountains and implementation of an earlier agreement to restore water sources and roadways.
Of the 21 cases in dispute resolution this year, 10 have reached full settlement.

Settlement and Monitoring

The resolution of issues leading to a signed agreement often builds on sustained efforts by the parties. These efforts continue as the parties work together to implement agreed actions, and overcome early hurdles. Capacity building often continues for community and company representatives because the skills required for implementing an agreement may differ from those needed during the dialogue process. At this stage, CAO also discusses with the parties under what terms CAO can responsibly exit.

Understandably, not all cases are resolved. Parties may decide to stop their voluntary engagement at any point in the process for different reasons. In those situations, a case is transferred to CAO’s compliance function. Of the 21 cases in dispute resolution this year, 10 have reached full settlement. For complex agreements, monitoring can take over a year. Three cases were in monitoring throughout the year.

Of the 21 cases in dispute resolution this year, 10 have reached full settlement.
Box 1.

Capacity Building

CAO helps the parties prepare for joint meetings and often carries out formal workshops to help parties build skills.

CAO’s capacity building work aims to address power imbalances to the extent possible and ensure that parties can participate in the dialogue process. CAO supported the parties with capacity building in 11 cases this year. In most instances, these activities were conducted both for community and company representatives.

In Cameroon, where CAO has been facilitating three parallel local mediation processes to address a complaint related to the Chad-Cameroon Pipeline, capacity building efforts have been tailored to the specific needs of the complainants. For example, CAO provided training in 11 villages to help set up a system of communication with the community leaders representing them in the dialogue process.

In Indonesia, CAO held a joint training workshop to strengthen communication between the company and the local community to address a complaint related to the Rajamandala hydropower project. The training allowed the parties to agree on a framework for continued communication and collaboration, which was a key element of the parties’ settlement agreement.

In Mongolia, CAO has provided training on negotiation, conflict resolution, communication skills, and joint fact-finding to all the parties involved in dialogue related to the Oyu Tolgoi mine. The joint fact-finding activities, which involved independent experts, were instrumental in helping the parties work through disagreements around project impacts.

(Above) Members of the Tri-Partite Council meet with the Joint Fact Finding experts in Mongolia, October 2016 (CAO).

11 dialogue processes involved capacity building of the parties this year.

Case Highlight

Mongolia

A flock of sheep and goats at a herder camp near the Oyu Tolgoi mine site (Felix Davey/CAO).

The dialogue process has resulted in the establishment of a Tri-Partite Council involving herders, local government, and company representatives.

Transformational Cooperation between a Mining Company and Nomadic Herders in Mongolia

Comprehensive agreements reached by parties: Comprehensive agreements were reached this year in Mongolia, where CAO has been facilitating a dialogue process to address complaints from local nomadic herders regarding the Oyu Tolgoi mine. The mine, which is operated by Rio Tinto and supported by IFC and MIGA, is one of the largest copper and gold mines under development in the world. The parties have tackled issues together related to water, resettlement, economic displacement, human and animal health, cultural heritage, and impacts to rangeland, among others. Outcomes include improved access to information, herders’ ability to tour and inspect the mine site, access to grazing land inside the mine license area, and compensation and livelihood support programs.

Strengthening local capacity and structures to address issues: Capacity building has been an important aspect of the four-year process and contributed directly to its outcomes (see box 1). Two joint fact-finding processes, conducted by independent experts to assess a river diversion and socioeconomic impacts, were important in this respect. The dialogue also resulted in the establishment of a Tri-Partite Council involving herders, local government, and company representatives, which meets regularly to address current and emerging issues.

Communicating shared outcomes and monitoring implementation: In June 2017, representatives of the herders, Rio Tinto, the Mongolian government, Accountability Counsel (an NGO that supported the herders in the dialogue process), and IFC took part in IFC’s 2017 Sustainability Exchange in Colombia to share experiences of transforming conflict into collaboration through the CAO process. CAO is now monitoring implementation of the agreements.

The dialogue process has resulted in the establishment of a Tri-Partite Council involving herders, local government, and company representatives.

Case Highlight

Chad and Cameroon

A moral leader addresses a community meeting at which the agreement is read aloud and explained, Chad, January 2017 (CAO).

Agreement was reached between the company and Bagyeli indigenous peoples who live alongside the pipeline, including company support for cultivation on land identified through a participatory mapping exercise.

Settlements Reached in Chad and Cameroon

Agreement in Chad sees the company committing to community development projects: A CAO dialogue process in Chad has been addressing a complaint filed in 2011 on behalf of over 20,000 local farmers and other community members affected by the Chad-Cameroon oil pipeline and upstream development. The affected communities and project operator, Esso Chad, Inc., an Exxon subsidiary, have sought joint solutions on land use, compensation, access to jobs, environmental impacts, and sustainable development through the CAO process. In January 2017, the parties signed a final agreement, which commits to ongoing engagement and community development projects. The company also committed to immediate steps, including the rehabilitation of roads, bridges, and wells, and compensation for some affected groups.

Agreements in Cameroon benefit local fishermen and indigenous peoples: In a parallel CAO dispute resolution process in Cameroon regarding the pipeline and export terminal, parties reached agreements securing company support for a fishing cooperative, building on previous agreements enabling fishermen from the town of Kribi access to secure waters near the export terminal. Agreement was also reached between the company and Bagyeli indigenous peoples who live alongside the pipeline, including company support for cultivation on land identified through a participatory mapping exercise. CAO is monitoring implementation of agreements in both countries.

Agreement was reached between the company and Bagyeli indigenous peoples who live alongside the pipeline, including company support for cultivation on land identified through a participatory mapping exercise.
Data Snapshot

2

agreements include

COMPANY GRIEVANCE

MECHANISMS

5

agreements include

COMMUNITY DEVELOPMENT

PROJECTS

7

agreements include

ONGOING ENGAGEMENT

STRUCTURES

Other Agreements Reached

Bangladesh | Company and community representatives signed a settlement agreement in December 2016 to address a complaint regarding an IFC-supported power plant, including commitments to conduct joint monitoring and physical works to decrease noise. Learn More

Colombia | Agreement was reached in June 2017 between Alquería, one of the largest dairy companies in Colombia, and owners of an adjacent farm to address a complaint about industrial pollution. CAO is monitoring implementation. Learn More

Egypt | A labor dispute related to a polyester manufacturer in Egypt resulted in an agreement for former workers to receive full pay and benefits owed to them after their employment contracts were terminated. The parties reached resolution within six months and CAO closed the case in May 2017. Learn More

Indonesia | CAO facilitated successful negotiation and resolution of a land dispute related to construction of the MIGA-supported Rajamandala hydropower project in Java. Community and company representatives agreed on a framework for regular communication. The case was resolved within eight months and closed in January 2017. Learn More

Morocco | Bilateral meetings between local complainants and a poultry producer in Morocco led to agreement on a five-year plan to implement community development projects. A community-company dialogue committee has been established that will meet at least once a year. Learn More

Uganda | CAO is monitoring implementation of land compensation agreements related to the Bujagali hydropower project. Most payments to some 500 claimants have been paid by the Uganda Electricity Transmission Company Limited (UETCL). IFC is updating its Resettlement Handbook, which will reflect learning from CAO cases, including Bujagali. Learn More

Uganda | CAO is monitoring agreements reached between two affected communities and the New Forests Company to implement resettlement and local development projects. A local development coordinator is working closely with both communities to provide expertise on resettlement, governance, and activities to generate income. CAO’s mediator meets monthly with the parties. Learn More

Box 2.

Expanding CAO’s Mediator Network through Technology

One of CAO’s biggest challenges is finding local mediators with the capacity to mediate between communities and the private sector in a development context.

To fill this gap, CAO has conducted workshops for over 120 mediators worldwide since 2013 to help improve capacity and identify professionals to support its work. This year, CAO launched a pilot screening program to expedite identification of these professionals. Using an online platform and purpose built competency criteria, CAO successfully screened 18 mediators from the Asia region. These mediators then participated in a joint training in Myanmar in May 2017 hosted by CAO with the European Investment Bank (EIB) and European Bank for Reconstruction and Development (EBRD) accountability mechanisms. CAO has also collaborated with donor organizations to create a program where less experienced mediators can observe or “shadow” more seasoned professionals, to ensure that when CAO exits there is local capacity to assist the parties with ongoing dialogue efforts.

(Above) Mediators from the Asia region gather for a CAO training in Myanmar hosted with EBRD and EIB, May 2017 (CAO).

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