Final Version

About MCRB and SWIA Part I: Findings ◦ Project Level Impacts

Stakeholder Engagement, Grievance Mechanisms & Community Livelihoods

Land Labour Security Ethnic Minorities/Indigenous Peoples Environment

◦ Cumulative Impacts ◦ Sector-Wide Impacts

Part II: Suggested Actions – Ideas for Recommendations to Government, Business & Civil Society ◦ Stakeholder Engagement, Grievance Mechanisms

& Community Livelihoods ◦ Land ◦ Labour ◦ Security ◦ Ethnic Minorities/Indigenous Peoples ◦ Environment ◦ Cumulative Impacts ◦ Sector-Wide Impacts: Contracting/PSCs, EIAs and Permitting

Chatham House rule: what is said here will not be attributed

What is said here will not be considered a commitment

A summary of the meeting will be produced and included on our website, without attribution of comments to particular participants

Current core funders: • UK Department

for International Development

• DANIDA (Danish development aid)

• Norway • Switzerland • Netherlands • Ireland

www.myanmar-responsiblebusiness.org 15 Shan Yeiktha Street, Sanchaung, Yangon Tel/Fax: 01 510069

Founders:

Objective: To provide an effective and legitimate platform for the creation of knowledge, capacity and dialogue concerning responsible business in Myanmar, based on local needs and international standards, that results in more responsible business practices.

Human rights based

Uses a human rights lens to consider project impacts and policy & legal frameworks

Wider audience than project EIA/SIA/ESIA

Government and Parliamentarians, business, local communities, civil society, and workers and trade unions

Aims to shape policy, law and projects

Examine the national context, national frameworks, the legal contracts (where available) and business practices. Identify what actions will help shape or impede better human rights outcomes for the sector

Information goes into the public domain

Project human rights impact assessments (HRIA) (when done) are typically confidential. The rationale behind the SWIA is to make the document a public good, with the aim of improving practices and outcome of business investment for the population of Myanmar.

3 Levels of Analysis

Looks at the impacts of the sector and to do this uses three levels of analysis: aggregate, cumulative and project levels

The UN Guiding Principles on Business and Human Rights (“the Guiding Principles” or “UNGP”)

The safeguard policies of international financial institutions (Asian Development Bank and World Bank Group), and in particular, the IFC Performance Standards and Environmental, Health and Safety (EHS) Guidelines (as these are specifically designed for private sector projects).

The OECD Guidelines on Multinational Enterprises (which apply to companies domiciled in an OECD or MNE declaration adherent country and operating in Myanmar)

The UN Global Compact is based on the same core international standards as others, but does not provide as specific guidance so less reference is made to it.

1st round of field visits: Nov-Dec 2013 A. Yenangyaung and Chauk (Magway Division) B. Ngape Township (Magway Division) C. Minbu Township (Magway Division) 2nd round of field visits: Dec-Jan 2014 D. Rakhine State (Ann and Kyauk Phyu townships E. Shan state (Namtu and Namkham townships) F. Tanintharyi Division (Dawei and Yebyu townships)

• Local Communities - Women - Seniors - Schools - Local vendors - Local businesses - Community Leaders

• Employees • Daily Wage-earners • Company managers

• Other local stakeholders - Civil society groups - Health Workers - Local educated persons - Media - Politicians - Religious Leaders - State/ Township Authority - Transport workers: Taxi/Trishaw/Horse cart - Suppliers

At national level (mostly non structured discussions): Minister of Energy and MOGE, MOECAF 30 meetings with local and international O&G companies

and their supply chains At field level 295 interviews conducted – 214 individually and another 81 interviewed as part of focus group discussions

We are not attributing our findings to particular places, companies, or individuals and we do not intend to list specific stakeholders with whom we have engaged.

Communities who are potentially affected by oil and gas operations, covering 16 issue areas including (but not limited to): consultation, participation, labour, land, environment, conflict, security, children’s rights and women’s rights.

Managers of oil and gas companies and its suppliers, covering issues such as labour, health and safety and community impacts (including issues related to security, land management, environmental health and safety, ethical business practices and customer protection).

Employees of oil and gas companies and suppliers’ employees, which covers issues related to working conditions and health and safety of workers.

External stakeholders, with questions related to the impacts of oil and gas operations for local or national authorities, NGOs, international organizations, journalists, political parties, schools and monasteries.

HRIA is still an emerging approach globally; sector-wide (human rights) impact assessment has been an experiment

Limited local capacity to conduct human rights impact assessments (HRIA)

Focus on existing projects, rather than prospective projects.

Varying levels of cooperation locally from companies and authorities.

Limited research time, only six locations and no off-shore visits, but still representative of the sector.

Complex and changing national policy environment.

Not possible to conduct worker interviews off-site in every instance.

Consultation on part of the DRAFT SWIA ◦ Final SWIA will be more extensive, include more analysis of

Myanmar context.

Indicative table of contents for the final SWIA Report; (The March 2014 consultation draft covers the chapters in green) Executive Summary Introduction Sector Description National context Project level context Collective/Cumulative context Recommendations Annexes: ◦ Process & Methodology ◦ Land Acquisition

March 2014 Consultation Draft available at: http://www.myanmar-responsiblebusiness.org/news/oil-and-gas-swia-draft-for-consultation.html

Project Level Impact Summaries

Key finding: Engagement is not standard practice; mostly

absent or inadequate ◦ Communities not informed about forthcoming projects at all

or informed but not consulted • ….or local authorities used as proxy for communities

◦ Little information shared, or little idea about how to get

further information or answers to questions

◦ Where once this was accepted by communities (through fear or…), increasingly it is not Some good examples of on-going engagement to build on

Communities want:

more direct contact with the company, rather than local authorities or MOGE

focal points to turn to for information

Key finding: Grievance mechanisms: largely absent or misunderstood ◦ In most cases, fledgling community grievance processes, with a long way to

go ◦ Little ability to access and obtain remedies

Key finding: Frequent inability of communities to obtain compensation for

impacts to livelihoods caused by road and site construction Key finding: Farmers had difficulty in securing compensation or changes in

operations to address destruction or impairment of agricultural fields by waste runoff and water use from operations.

Key finding: Difficulty for communities to establish claim or obtain compensation for longer-term impacts to livelihood (farmers & fishermen) ◦ Lack of baseline information makes it very difficult for communities and

companies to establish validity of claims – who gets the benefit of the doubt?

Communities want: ◦ Grievance/complaints mechanisms that they can trust and which deliver

responses

Key finding: given the limited range of unskilled labour opportunities, particularly post construction period, there is high local competition for unskilled labour opportunities

Key finding: Very little local (i.e. from local villages) procurement of goods or services was observed

Key finding: Mixed picture on infrastructure; missed opportunities

to improve community infrastructure at the same as building project infrastructure

Key finding: Appreciation of health facilities where provided, but not common; mixed picture on education

Communities want: Concrete sharing of benefits – particularly through longer term,

steady employment & infrastructure

Key finding: Social investment programmes are a growing trend, but not always developed appropriately - philanthropy, dictated by the company without interaction with communities ◦Where they are done in consultation with communities, mostly appreciated (preferred to government provision of services) ◦Risk of dependency on company provision of education, health ◦Risk that Government & companies do not see social investment as strategic link to project but instead philanthropy

Communities want: Concrete sharing of benefits – particularly through longer term,

steady employment & infrastructure

Project Level Impact Summaries

Key finding: Land is often the most important asset for rural communities – acquisition or damage can have long-term impacts ◦ Widespread concern in the country about land grabs

Key finding: Legal basis and process for voluntary and involuntary land acquisition and use is unclear – for communities and companies ◦ Complex and contradictory land laws that do not match reality

on the ground

Key finding: Land acquisition processes take place with little consultation and sometimes even less due process ◦ Lack of information provided about who is acquiring, under

what legal basis, process for acquisition, basis for compensation

Key finding: Lack of transparency and documentation ◦ About rates offered for land and crops, lump sums offered

with no breakdown, inconsistency in compensation ◦ Paperwork not in a language communities can understand –

and sometimes then taken away

Key finding: Payments in cash without offers of in-kind land ◦ For land-based livelihoods, land compensation is preferred

option ◦ Communities often have little experience or access to banks

Key finding: Compensation for economic displacement is

inconsistent but important

Key finding: Conflict over lack of compensation for land in lease areas ‘owned by the state/MOGE’ ◦ also leading to inability to get registration document for farmed

land to use as collateral

Communities want: • Protection from acquisitions that do not involve any due

process • Recognition of lands customarily owned or used • Clear rules and processes for any expropriation and

involuntary resettlement, including options for land-based compensation

Project Level Impact Summaries

Key finding: wide variation in respect for labour rights, often dependent on how far down the value chain ◦ highest risk among workers in lower-skilled, lower paid, manual

labour positions working on a temporary or irregular basis ◦ workers are keen to have work so not speaking out about what can

be exploitative working conditions Key finding: predictable mismatches between: ◦ local employment requirements under FDI law & skill set among

Myanmar nationals ◦ demand for employment & local skill set ◦ local community perception of “local” employment and company /

legal definition Key finding: only nascent labour unions and lack of awareness of

labour rights ◦ With some exceptions, lack of worker-management frameworks for

engagement Key finding: equal employment and non-discrimination will require

pro-active attention with respect to women, ethnic minorities and disabled

Key finding: basic protections for workers (written contract, defined working conditions, living wage …) often lacking in sub-contractors (Myanmar & foreign)

Key finding: wide use of recruitment agencies and directly hired temporary workers with few protections ◦ Some recruitment agencies taking large % of fees, leaving

workers with even less than what would pass for min wage; no contracts, making late payment

Key findings: Rigorous control of working conditions at

operators is not consistently carried through to business partners

Communities & workers want: • Concrete sharing of benefits – particularly through longer term,

steady employment • Information about their labour rights • Basic protections – like written contracts, information about benefits

owed, overtime worked

Security

Project Level Impact Summaries

Key finding: No concerns expressed about company security guards; only ordinary incidents recounted ◦ Many companies make a point of hiring security guards

from the local community but also contracting out through third party providers

Key finding: Tensions with Oil Field Area police but around accusations of theft rather than abuse

Key finding: No concerns expressed directly about military, but this needs to be put in context ◦ Communities still expressing fear of complaining directly

about military

Key finding: Given the increasing freedom of expression in the country (though noting continuing concerns of detention of protestors) there is a potential for increased protests around O&G projects, for which local authorities and companies may be unprepared.

Key finding: Concerns expressed by women due to large

numbers of male workers in areas of project, concern focused on “foreign” men

Key finding: Impacts of closure of marine areas for security purposes on fishing communities

Communities want • To be able to express themselves without fear about

incoming or on-going projects • Basic feeling of security – without seemingly random

“requests” or actions from security forces

Ethnic Minorities / Indigenous Peoples

Project Level Impact Summaries

Key finding: Ethnic identity is an important dynamic in Myanmar society that will play out in many ways in relation to extractive sector policy and projects

Key finding: There is increasing attention to the application of indigenous peoples rights in relation to extractive sector projects in Myanmar

Key finding: Ethnic minority groups are among some of the most at risk in Myanmar, with potential to be disproportionately affected by O&G projects.

Key finding: There has been little consultation, much less deeper engagement that could be considered free, prior and informed consent, with ethnic minority groups

Environment

Project Level Impact Summaries

Key findings: Mixed picture on resolving and addressing damage caused by construction or project activity. ◦ Issues were left to linger for months unaddressed, causing

frustration and tension

Key finding: Impacts on crops even outside 50ft cordon zone, e.g. erosion, water flow blocked by pipeline, leakage or seepage from wells with varying compensation

Key findings: Communities lack information on environmental impacts of O&G operations and the potential consequences for human health, food production and livelihoods. ◦ They perceive adverse effects but often are not getting relevant

information or explanations

Key findings: a general decrease in fish available to local fishermen in their traditional fishing grounds, associated with the arrival of O&G operations and associated infrastructure ◦ Neither the local communities nor (apparently) the companies

operating in the area have any baseline data on fishing populations as a basis for verifying impacts.

Key finding: Institutional Overload Key finding: Social • of local/regional capacity to

effectively consider EIA and monitor EMP, especially for managing cumulative impacts

• of existing social services due to a rapid influx of people seeking work (e.g. childcare, healthcare and education)

• of labour inspection capacity to deal with multiple operators, especially for offshore

• of local ports resulting in displacement of local fishermen, disruption of humanitarian operations

• Overloading the labour market, increasing competition for workers, attracting workers from less-well paid but important government services

• Competition for workers drives up wages and inflation

• Successive construction in the same areas repeatedly disrupts the same communities

• Successive land acquisitions within an area rapidly diminishes land available for local populations.

• Influx of predominantly male workers attracts sex workers, exploitation of at risk groups and potential increase in crime

Key finding: Environmental Key finding: Procedural • Increases in pollutant concentrations

in local water/ soil/sediments, or their bioaccumulation

• Reduced water quality (e.g. pollution discharge into rivers) and water quantity from multiple users all taking a modest amount of water

• Traffic congestion, road degradation and increased dust from multiple projects

• Reduced fish catch/marine mammals disrupted from increased boat traffic for offshore (noise, congestion, pollution)

• Increases in pollutant concentrations in offshore areas due to offshore operations (tanker discharges, discharges from operations)

• Consultation overload of local communities if EIA consultations all done at once, causing fatigue and confusion. Offshore projects should be subject to joint EIAs. Depending on how close together onshore projects are, may need coordinated impact assessment approach.

• Wasted resources of having numerous EIAs looking at the same areas but without considering the cumulative impacts of their operations. Joint EIAs would avoid this.

Positive Gas revenues = largest source of foreign income for Government, with a peak of 6.5 % of GDP projected in 2014/15 Will prompt the further development of a small, but highly skilled workforce Future gas discoveries earmarked for domestic use to address widespread electricity shortages Potential to spread improved standards and practices in many areas if international operators apply international standards in their own operations, require of their sub-contractors

SE Sector Wide Impacts:

Negative Mitigation?

Weak / absent legal and regulatory framework with strong potential to lead to externalisation of environmental & social costs on Myanmar society

References to appropriate international standards in regulatory and contracting framework

Overreliance on one sector / Dutch disease at a time when there is a recognised need to diversify and strengthen agriculture & manufacturing

Donor support to agriculture, manufacturing, revising tax structure

Potential to exacerbate corruption already prevalent in the country

Oil for Development Programme EITI, new anti-corruption law

New access to resources attracts significant investors with an interest in maintaining business as usual, undermining move towards more transparent governance

Transparent bidding & contracting processes, requirement to register beneficial ownership, full EITI implementation

Long-running conflicts between Union government and several ethnic states reignite over failure to agree on sharing of revenues; and/or lack of revenue sharing with States/Divisions leads to continuing tensions and conflicts over access to benefits from extractive projects

Negotiations on constitutional changes Peace Process

Ineffective local employment, local contracting and social investments exacerbates tensions with community over access to benefits

Strong local employment and local contracting Clear agreements with communities

Sector-Wide Impacts

1.On a sector-wide basis (rather than a project-specific basis)…

Do these findings sound appropriate? Have we missed key issues? Have we misdiagnosed?

2.What are the key recommendations you would suggest – for the

Government and for companies operating in the sector and other stakeholders? Why change current law and practice? Who needs to act on those recommendations? How should law and practice change – including by reference to

relevant international standards & good practice? Have we got the right standards – additions or comments on relevance?

What other initiatives are relevant to achieving better outcomes in the O&G sector that could be linked to or built on?

PART II

To ensure that individuals and communities are able to voice their concerns without fear of punishment or retribution To strengthen access to, and efficiency of, options for remedies for project affected people To build social investment programmes with communities rather than for them that help provide benefits to offset impacts To balance adverse impacts with benefits, short and long-term

Relevant International Standards IFC Performance Standard 1 – Assessment and Management of Environmental and Social

Risks and Impacts IFC Performance Standard 4 – Community Health, Safety and Security IFC Performance Standard 5 – Land Acquisition and Involuntary Resettlement UN Guiding Principles on Business and Human Rights (especially principles 29-31).

Good Practice IPIECA, Human rights due diligence process: a practical guide to implementation for oil

and gas companies IPIECA “Community Engagement” European Commission, Oil & Gas Sector Guide on Implementing the UN Guiding

Principles; IFC Stakeholder Engagement: A Good Practice Handbook for Companies Doing Business

in Emerging Markets” IPIECA Guide on Local Content IIED’s Shared Value, Shared Responsibility on opportunities in the extractive sector’s

complex supply chains EI Sourcebook, Good Practice Note on Community Development Agreements Other?

Proactively invest time and patience in ongoing and meaningful engagement with communities throughout the project cycle, in accordance with industry best practice and international standards This is necessary in view of distrust of the Government,

MOGE and business, and most communities’ lack of experience in working with companies

Build on opportunities of the forthcoming EIA Procedure to incorporate international good practices on consultation Clear agreement with MOECAF, MOGE, local government,

and companies about who has responsibility for what aspect of the EIA consultations and how they are made transparent

“One-stop shop” for all issues concerning a project - for info, grievances, emergencies whether concern is about sub-contractors, third party providers, other

companies working on the project

Develop operational level grievance mechanisms that provide accessible, effective processes to address and resolve concerns

Develop social investment programmes with communities that are built on work plans, budgets, mutual accountability Use the opportunity of social investment programmes to develop

much more systematic planning of quality project infrastructure Promote small business and entrepreneurship programmes to

improve ability of local business to provide goods & services

Mercy Corps work on Inclusive Natural Resource Management (USAID)

World Bank Community Driven Development programme Action Aid Fellows programme? PACT programmes on livelihoods and microfinance? Other iNGO work on livelihoods and community development SMEs and business strengthening ILO programme on entrepreneurship support, using the

Sustaining Competitive and Responsible Enterprises (SCORE) and Start and Improve Your Business (SIYB)

ADB programme on Skills Development for Inclusive Growth; Building Markets Advancement and Development through Entrepreneurship

Programs and Training ADEPT programme

Land

Longer term: Improve protection of land owners and users (with both formal and customary title) while providing more certainty for business access and use

Shorter term: Ensure that land acquisition processes follow international standards

Avoid exacerbating conflict or unresolved legacy issues

Relevant International Standards FAO Voluntary Guidelines on the Responsible Governance of Tenure of Land, Fisheries and Forests IFC Performance Standard 1 on Assessment and Management of Environmental and Social Risks and Impacts IFC Performance Standard 5 on Land Acquisition and Involuntary Resettlement OHCHR, Basic Principles and Guidelines on Development-based

Evictions and Displacement FAO Guidelines on Compulsory Acquisition of Land and Compensation

Good Practice ◦ IFC, Handbook for Preparing a Resettlement Action Plan ADB, Handbook on Resettlement, A Guide to Good Practice Others?

Establish clarity for O&G companies and communities around process and legal basis for: designating oil field areas & areas covered by bids, processes for voluntary and involuntary land acquisition by the

government and O&G companies inside and outside those areas, rules and compensation rates for land, housing, crops, other

assets and for access to assets

Apply international standards for EIA and involuntary acquisition and resettlement until the land law and policy framework is clarified and improved. This will help to ensure that rights are protected and basic due

process steps are followed Provide for access to judicial review for land claims

Develop clear laws with defined limits on expropriation

Carry out enhanced due diligence, with particular attention to legacy and potential conflict issues, as access to land and natural resources for carrying out extractive operations has often been a source of conflict

When land is expropriated, compensate for both physical and

economic displacement, preferably with alternative land

Improve transparency in the management of land compensation and resettlement processes to reduce opportunities for corruption, make sure payments get to right persons

EIAs for O&G projects should identify options to minimise land acquisition and use, and explore other options, such as leasing land, and provide for return of any unused land

Land Core Group ILO Forced Labour Complaint Mechanism Others?

Labour

Ensure that forthcoming labour law and practice is in line with the ILO Core Labour Standards

Ensure that international health & safety standards are applied

Protect workers from exploitation in the supply chain, including temporary & migrant workers

Maximise the employment benefits of a growing O&G sector

Relevant International Standards ILO Declaration on Fundamental Rights and Principles at Work IFC Performance Standard 2 – Labour and Working Conditions IFC Environmental, Health and Safety Guidelines for Offshore

Oil & Gas Development and Onshore Oil & Gas Development (as appropriate); see also for contractors not providing technical support: IFC General EHS Guidelines

Good Practice IFC/EBRD: Good Practice Note: Workers’ accommodation:

processes and standards Other?

Apply relevant international standards in onshore and

offshore operations, in the absence of updated national standards on health & safety in the O&G sector

• Many Myanmar labour laws are being updated. International standards provide a solid basis for sound worker-management relationships that respect the rights of workers

• Given the vulnerability of temporary and migrant workers, pay particular attention to the contract conditions for these workers when engaging them directly or through business partners supplying or using temporary workers, applying international standards as part of the contractual agreement.

Provide an operational level grievance mechanism for workers and their organisations to raise workplace concerns

Develop a long-term education and wider skills upgrading programme, but start early

ILO programme on providing advice on labour legislation and labour market governance.

Comprehensive Education Sector Review (CESR) technical and vocational education and training (TVET) sector group

GIZ TVET programmes ILO Decent Work Programme and work on forced

labour Other?

Security

To ensure that human rights standards are applied to all security – public & private, backed up by appropriate training and guidance

To ensure that individuals and communities are able to voice their concerns without fear of punishment or retribution

To reduce fear of public security forces

Relevant International Standards Voluntary Principles on Security and Human Rights IFC Performance Standard 4: Community Health, Safety and

Security International Code of Conduct for Private Security Service

Providers

Good Practice: Voluntary Principles Implementation Guidance Tools

Adopt a conflict sensitive approach and carry out enhanced due diligence to understand the high risk operating environment, with a particular focus on legacies for communities around land, conflict and distrust

of the authorities inter-ethnic and inter-communal tensions, particularly in

Rakhine state

Build trust and mutual understanding between local authorities, companies and communities by jointly discussing issues relating to security concerns

Be prepared to respond to community, civil society concerns, demonstrations in a manner that respects freedom of expression and assembly

Build on existing good practice and Myanmar security sector reform and draw on international initiatives such as the Voluntary Principles on Security and Human Rights, with a particular focus on improving human rights awareness by public and private sector

security forces involved with O&G projects establishing pre-emptive contacts with local authorities,

including the police, to discuss security assessments and appropriate human rights-sensitive responses

carrying out careful due diligence on security companies including those used by sub-contractors

prioritizing members of local communities for security jobs & ensure decent work conditions

Consider joint approach to Government to support further training of security forces

Revise Oil Field Areas (OFA) security measures (Article 144) that affect freedom of movement, livelihoods and other human rights

EU Crowd Management Training of Myanmar Police Force

Ethnic Minorities/ Indigenous

Peoples

There is a need to recognise the cultural and other specificities of indigenous peoples/ethnic minority groups and adopt special measures to safeguard them in the context of O&G operations There is a need to be sensitive and

responsive to the prevalent view in the ethnic states/self-administered areas that they see very little benefit from O&G extraction in their areas

Relevant International Standards UN Declaration on the Rights of Indigenous Peoples IFC Performance Standard 7 on Indigenous Peoples Other Guidance UN Special Rapporteur on Indigenous Peoples, Extractive Industries and Indigenous Peoples, 2013 IPIECA, Indigenous Peoples and the oil and gas industry: context, issues and emerging good practice Global Compact, Business Reference Guide to the UN Declaration on Indigenous Peoples Others?

Wherever possible, engage directly with ethnic groups, seeking their free, prior and informed consent, while being careful not to undermine or contradict on-going peace processes

Build on the current discussions on Constitutional change to explore effective options for revenue sharing between the Union government and States/Divisions

At the project level, seek to develop specific agreements with ethnic minority groups impacted by the project

Spectrum and Oxfam work on FPIC? Mercy Corps work on Inclusive Natural

Resource Management (USAID) Peace Nexus, Karen State? Others?

Environment

To address current gaps in the legal framework of environmental controls and bring them in line with international standards

To build corresponding government capacity To ensure that there is a contractual requirement

for environmental compliance that provides a basis for liability for environmental damage

Relevant International Standards IFC Performance Standard 3: Resource

Efficiency and Pollution Prevention IFC Performance Standard 4: Community

Health, Safety and Security IFC Performance Standard 6: Biodiversity

Conservation and Sustainable Management of Living Resources

World Bank Group Environmental, Health and Safety Guidelines for Offshore Oil & Gas Development and Onshore Oil & Gas Development

Require O&G operations to operate to international standards (including IFC Performance Standards), including through contractual requirements

Require a new or updated E(S)IA and EMP as operations evolve There is currently a lack of clarity as to whether there is only one

requirement for an ESIA at the beginning of the PSC The EIA/ESIA requires a robust focus on social issues, including

human rights Provide a focal point for information about operations

and inform local communities of emergency planning procedures

Carry out joint environmental monitoring between companies & communities, as a way of building community confidence and competence in understanding the potential impacts of O&G operations

Total/Wildlife Conservation Society/Forestry Department partnership

NGOs working on water and sanitation projects (WASH)

Other?

To ensure that forthcoming EIA Regulations and Procedures address cumulative impacts and that there is the capacity to assess and manage cumulative impacts

To ensure appropriate planning of relevant

public services at a regional level

Good Practice IFC, Good Practice Handbook on Good Practice Handbook, Cumulative Impact Assessment and Management: Guidance for the Private Sector in Emerging Markets (2013) OHCHR, Cumulative Human Rights Impacts – Discussion Document Global Compact, Human Rights and Business Dilemma Forum, Cumulative Impacts Other?

Build on processes and (good and bad) lessons learned for SEZ in vicinity of existing or planned O&G operations

A specific exchange of project-level EIAs in a targeted area to identify key concerns highlighted across the EIAs that would be a start in identifying potential cumulative impacts

Commission joint baseline studies in key areas where there will be multiple O&G activities, such as offshore seismic activities

Agree to a coordinated, joint approach to consultation with relevant stakeholders to avoid repeating consultations with the same stakeholders

Joint agreement on a coordinated response to the cumulative impacts of highest concern to stakeholders

Develop a collaborative (and collaboratively funded) social investment programme that responds to the cumulative impacts of highest concern to stakeholders

Collaboration on use of training budget (identified in PSC) to build longer-term training programme with wider set of Gov officials, beyond MOGE – including for regional/local officials who must manage collective impacts

Work on National Energy Policy – does this consider cumulative impacts?

Work on regional governance and development plans, capacity-strengthening for local government?

Work on ESIAs that will also focus on cumulative impacts (ADB, others?)

International Alert programme on building peace in Kyaukphyu SEZ

Build requirements for responsible investment into approval processes for O&G projects

Use existing international standards

Improve transparency

Relevant International Standards IFC Performance Standards Extractive Industries Transparency Initiative (EITI) 2013 Standard IFC Policy on Environmental and Social Sustainability, 2011, clauses 50-52 on contract transparency for extractive projects UN Convention against Corruption Good Practice IPIECA Guide on Local Content IIED’s Shared Value, Shared Responsibility Other?

Bidding & tendering: Use the process of registration of qualified providers and the

process of approval by Myanmar Investment Commission to require information on policies and management systems for environmental, social, human rights, health & safety, community engagement

provide more transparency around award of licenses, beneficial ownership and contract transparency in line with EITI requirements

Environmental Impact Assessment (EIA) Ensure that the Environmental Impact Assessment (EIA)

Procedure clearly includes social and human rights issues Ensure that companies have the time to conduct effective

consultation, and at appropriate stages in the project cycle Myanmar Investment Commission License Ensure that relevant clauses (as recommended below for

inclusion in the PSC) are reflected in the MIC license

Reference international Standards Require compliance with recognised and identified international standards on environmental and social performance as part of the PSC (IFC Performance Standards and EHS Guidelines) (clause 17.2 e and 17.2 ee). Include clear allocation of responsibility and assignment of liability for environmental and social impacts (clause 17.2 w)) Include references to specific international standards on EIAs and ensure that social issues are covered in the EMP (clause 17.2 (bb)) Local Content / Employment Require compliance with international standards when employing (section 15 & 17.2 u)) Revise the local content provisions to provide for more specificity (clause 17.2 o)) Exclude strikes from the definition of force majeure (clause 20.2) Strengthen Social Investment provisions Revise the “CSR” requirements of the PSC, requiring a social investment programme within the Work Programme and budget (clause 17.2 dd)) but without a predetermined target spend. Remedy Require companies to put operational level grievance mechanisms in place

Transparency Clarify that the contract will be made public and is not subject to the

secrecy provisions (clause 27.5) Strengthen the anti-bribery and corruption provisions in accordance

with the newly adopted law on anti-bribery and corruption (for example modifying 17.2 q)

Add provisions on monitoring & reporting on environmental, social and human rights issues

Arbitration Exclude future changes in the social and environmental legal

framework from coverage under the stabilisation clause (clause 27.7) Require that all arbitration hearings and decisions are open to the

public, decisions are made publicly available and third party interventions will be permitted (clause 22.2).

Capacity Building Permit the training funds to be spent on a wider group of government

departments involved with Petroleum Operations (clause 15.2)

Myanmar EITI US Commercial Law Development Program

(Department of Commerce) Norwegian Oil for Development programme

in Myanmar Others?

Summary of the meetings on MCRB website (Chatham House rule)

Revision of impact summary drafts (if necessary) and update of slidepack with suggested actions following consultations

Deadline for written comments (in English or Burmese) to Thithi.thein@myanmar-responsiblebusiness.org/info.mcrb@gmail.com with a subject line of “O&G SWIA Consultation Draft Feedback” by 30 April 2014. These will be posted on the MCRB website with each commentator’s submitted name and organisation unless you tell us that you do not want your comments posted on our website.

Additional information on linked initiatives is also welcome by the same timeframe.

Submission of these documents to government for discussion

Completion of additional chapters

Publication on MCRB website

Multistakeholder discussions on areas for action