CAO 2018 Annual Report

OUR MISSION

CAO’s mission is to serve as a fair, trusted, and effective independent accountability mechanism and to improve the environmental and social performance of IFC and MIGA, members of the World Bank Group.

Foreword from the President of the
World Bank Group, Jim Kim

As the World Bank Group works to increasingly leverage the resources of the private sector, the role of CAO is more important today than ever before. CAO plays a critical role in helping the Bank Group listen to the voices that we most need to hear, and with their participation, bring practical solutions to the communities we serve around the world.

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Introduction from the
Compliance Advisor Ombudsman (CAO)

With casework spanning 32 countries, CAO has had a productive year. Our 2018 annual report speaks to our continued focus on delivering solutions, accountability, and learning across the CAO functions to improve IFC and MIGA project outcomes for local communities.

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YEAR IN REVIEW

This year, CAO handled 55 cases in 32 countries. More than half of these cases were in monitoring or closed by the end of the year. CAO accepted 14 new complaints, including its first from Myanmar. In dispute resolution, 76 percent of cases have reached full or partial settlement. This includes new agreements reached in Albania, Cambodia, and Cameroon, and previous settlements being monitored. CAO published 6 new compliance investigations related to mining, infrastructure and manufacturing projects, and issued new advice on supply chains.

CAO also took steps to fortify its global network of mediators, engaged 300 organizations from 40 countries through outreach, and operationalized its approach to threats and reprisals to address complainant safety. Journey through highlights from CAO’s year below.

officials looking at a GPS in a tropical forest

A land department official of the Government of Cambodia takes a GPS point during the joint land demarcation exercise conducted to demarcate areas for return to the communities, Ratanakiri Province, Cambodia, March 2018 (CAO).

AT A GLANCE: DISPUTE RESOLUTION AGREEMENTS

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Pie Chart of dispute resolution agreements data

JULY
2017

DISPUTE RESOLUTION

Cambodia: Company Commits to Return Spirit Mountains to Indigenous Communities

Progress was made in a CAO dialogue process in Cambodia to address a land dispute related to rubber plantations. The plantation operator, HAGL, agreed in dialogue with community members from 11 affected villages and civil society representatives to return spirit mountains and implement an earlier agreement to restore water sources and roadways.

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In the Kribi community, a new fuel pump has been installed as an outcome from the dialogue process. This will improve the fishing cooperative's access to fuel for their boats, and in turn, help sustain their livelihoods.

AT A GLANCE: CASES BY REGION

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Vecto image of the continent of Africa and data

DISPUTE RESOLUTION

Cameroon: Communities and Company Implement Agreements Related to Chad-Cameroon Oil Pipeline

Following settlement of complaints from three communities, CAO visited Cameroon to discuss next steps with the affected communities and project operator, an ExxonMobil subsidiary. CAO is monitoring implementation of agreements. A new fuel pump has been installed that will benefit a fishing community in Kribi.

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AUGUST
2017

COMMUNICATIONS & OUTREACH

Outreach: CAO Launches Africa Outreach Initiative

CAO kicked off its Africa outreach initiative with a three-day workshop in Cote d'Ivoire, co-hosted with the African Development Bank's accountability mechanism. The workshop engaged private sector and civil society from 10 West African countries. CAO also conducted outreach in Ghana, Nigeria, Senegal, South Africa, and Tanzania during FY2018.

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Participants complete a group exercise during a workshop in Abidjan, Cote d'Ivoire, which engaged 30 civil society representatives from 10 West African countries, August 2017 (CAO).

Civil society representatives connecting from the IFC office in Dakar, Senegal participate in an outreach video conference with CAO and Inspection Panel staff, March 2018 (Photo: Aly Sagne).

COMPLIANCE

Armenia: Compliance Investigation Related to IFC-supported Gold Mine

CAO’s investigation responded to two complaints filed by communities living near the Amulsar gold mine in southern Armenia. The investigation found shortcomings in IFC’s review of environmental and social risks associated with the mine’s exploration phase, and gaps in how project impacts on local tourism and communities were assessed.

READ THE INVESTIGATION REPORT

AT A GLANCE: ENVIRONMENTAL AND SOCIAL CONCERNS RAISED IN COMPLAINTS TO CAO

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CAO facilitates a joint mediation session in Bangladesh between community and company representatives to discuss issues and potential solutions to address a complaint about a power plant.

AT A GLANCE: CASES BY SECTOR

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SEPTEMBER
2017

DISPUTE RESOLUTION

Bangladesh: Mediation Process Mitigates Community Health Concerns Related to Power Plant

CAO concluded its mediation and monitoring work related to the IFC-supported United Ashuganj Energy Limited gas power plant in Bangladesh, after observing full implementation of agreements between the company and affected community members. The process addressed concerns regarding impacts of noise and pollution from the plant.

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OCTOBER
2017

DISPUTE RESOLUTION

Film: CAO Debuts Film Short Documenting Outcomes from Dialogue Process in Nicaragua

CAO released a short film, Building Hope and Health through Dialogue, documenting outcomes of a complex mediation process between a major sugar producer in Nicaragua supported by IFC and former workers suffering from chronic kidney disease. The film was shown during a CAO policy session during the World Bank Group Annual Meetings.

WATCH THE FILM

A former sugarcane cutter and board member of ASOCHIVIDA, a local organization of former workers suffering from chronic kidney disease in Chichigalpa, Nicaragua, February 2014 (Felix Davey/CAO).

ASOCHIVIDA Board members meet with the CAO mediation team and the independent team of experts from Boston University School of Public Health, February 2014 (Felix Davey/CAO).

COMPLIANCE

Guatemala: Investigation of Indigenous Peoples Concerns regarding Santa Rita Hydropower Project

CAO’s investigation responds to a complaint from indigenous communities impacted by the Santa Rita hydropower project in Guatemala, and addresses concerns that the project does not meet IFC’s requirements for Free, Prior, and Informed Consent, among other issues. The investigation found shortcomings in IFC’s review and supervision of the investment.

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AT A GLANCE: COMPLIANCE MONITORING

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vector graphics for compliance cases data

Meeting between a group of people and officials

CAO's mediation team meets with community members during the assessment of a new complaint from Myanmar, March 2018 (CAO).

AT A GLANCE: ASSESSMENT

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NOVEMBER
2017

ASSESSMENT

Myanmar: CAO Receives First Complaint from Communities in Myanmar

CAO received a complaint from communities in Myanmar living near a new agrochemical plant operated by an IFC client. The complaint concerns project impacts on local water sources, and community consultation and information disclosure regarding the project. During CAO’s assessment, the parties agreed to engage in dispute resolution, which is now underway.

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DECEMBER
2017

COMPLIANCE

Uganda: Investigations of labor and land concerns related to the Bujagali Energy project

CAO released two investigations regarding the Bujagali hydropower project in Uganda, which is supported by IFC and MIGA. The investigations, released by CAO in December 2017 and January 2018, address labor and land complaints arising from construction of the project and transmission line. IFC has committed to undertake remedial steps to address shortcomings identified in the CAO reports.

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CAO visits the Bujagali hydropower project in Uganda as part of investigation activities, January 2017 (CAO).

AT A GLANCE: CASES BY INSTITUTION

While IFC projects account for the majority of CAO’s caseload, CAO is addressing complaints related to the Bujagali hydropower project in Uganda and Oyu Tolgoi mine in Mongolia, both joint IFC/MIGA projects.

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vector bar graphic for IFC and Miga data

AT A GLANCE: NEW COMPLIANCE INVESTIGATIONS

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Vector graphic for compliance investigations data

JANUARY
2018

COMPLIANCE

India: CAO Releases Investigation Related to Port Development in Kerala

CAO’s investigation considers issues raised in three complaints from tourism businesses and residents living near the Vizhinjam multi-purpose seaport in Kerala, India. IFC provided Advisory Services to support development of the project.

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FEBRUARY
2018

DISPUTE RESOLUTION

Uganda: Resolution of Land Dispute in Forestry Sector Following Mediation

CAO concluded a dispute resolution process in Uganda after monitoring implementation of agreements reached between the New Forests Company and the Mubende affected community after they were displaced from forestry reserves. With support from the company, the community has resettled on land they own, and are cultivating crops and initiating small development projects. The company also supported a new school house and community clinic, among other outcomes.

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A community school built as part of the parties' implementation of agreements in Mubende, Uganda, August 2017 (CAO).

The Mubende community celebrates during the case closure ceremony at Kampendu, Uganda, September 2017 (CAO).

DISPUTE RESOLUTION

Albania: Community-Company Agreements related to Oil Production and Exploration Project

In Albania, local communities and Bankers Petroleum, a former IFC client, reached agreement through a CAO mediation process to address a complaint about the impacts of an oilfield. CAO is monitoring implementation of agreements to address concerns about community health and safety, contamination of irrigation networks, and seismic tremors.

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A company representative presents during a community-company roundtable meeting, May 2016 (CAO).

AT A GLANCE: DISPUTE RESOLUTION MONITORING

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During CAO's assessment, many stakeholders offered ideas for addressing labor concerns and improving the overall cotton sector in Uzbekistan. (Photo: World Bank/Yosef Hadar).

AT A GLANCE: PROFILE OF COMPLAINANTS

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MARCH
2018

DISPUTE RESOLUTION

Uzbekistan: Parties Agree to Dispute Resolution to Address Complaint about Forced Labor in Cotton Supply Chain

A complaint to CAO was filed in 2016 on behalf of Uzbek human rights monitors and alleged victims of forced labor in the cotton sector. The complaint concerns the supply chain of a cotton manufacturer and commercial bank supported by IFC. Following an extended assessment phase, the parties agreed to address the complaint through a CAO dialogue process, which is now underway.

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APRIL
2018

COMMUNICATIONS & OUTREACH

Focus on Financial Intermediaries: Financial Sector Transparency

CAO hosted a policy discussion on transparency and accountability in the banking sector with representatives from IFC, Citibank, and Oxfam International to discuss emerging good practice in financial sector transparency. CAO also participated in two separate workshops in FY18 related to environmental and social risk management convened by the Chinese Banking Association and Dutch Banking Association. CAO continues to monitor IFC actions to address findings from its audit of IFC investments in global financial intermediaries (FIs).

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Panel members address audience questions during a CAO session on financial sector transparency, which took place as part of the World Bank Spring meetings, Washington, D.C., April 2018 (CAO).

Reprisals: CAO Approach to Threats and Reprisals

CAO launched its Approach to Responding to Concerns of Threats and Incidents of Reprisals in CAO Operations during the World Bank Group Spring Meetings. For the launch, CAO hosted a closed multi-stakeholder roundtable on the topic of reprisals with guest of honor Zeid Ra-ad Al Hussein, United Nations High Commissioner for Human Rights. CAO’s Approach was developed in response to concerns voiced by human rights groups regarding complainant safety, and to address operational challenges in CAO cases.

LEARN ABOUT THE APPROACH

CAO Vice President, Osvaldo L. Gratacós (left), and roundtable guest of honor, Zeid Ra-ad Al Hussein, United Nations High Commissioner for Human Rights, Washington, D.C., April 2018 (CAO).

AT A GLANCE: COMPLIANCE APPRAISALS

CAO completed 10 compliance appraisals in FY18.

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Vector graphics to represent compliance cases

MAY
2018

COMPLIANCE

Chile: Appraisal of IFC Investment in the Alto Maipo Hydropower Project

CAO concluded a compliance appraisal of two complaints regarding IFC’s investment in the Alto Maipo hydropower project in the Maipo River basin near Santiago, Chile. The appraisal determined that the case merited an investigation, which is ongoing.

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Participants at the joint outreach event CAO co-hosted in Durban, South Africa, May 2018 (CAO).

COMMUNICATIONS & OUTREACH

South Africa: CAO Participates in International Association for Impact Assessment (IAIA) Annual Conference

CAO partnered with other IFI accountability mechanisms to host a plenary session on accountability in international development finance, participated in technical sessions on mediation and participatory impact assessments, and organized an outreach event for South African civil society.

LEARN ABOUT THESE EVENTS

JUNE
2018

ADVISORY

Advisory Work: Supply Chain Opportunities and Risks

CAO released a new series of advisory memos on supply chain business opportunities and risks. CAO developed the series based on insights from CAO cases, and inputs from external experts and IFC staff. The series comprises three memos with recommendations for IFC and MIGA focused on supply chain risk analysis, policies and performance standards related to supply chains, and voluntary standards and certification.

LEARN ABOUT CAO’S SUPPLY CHAIN WORK

CAO's advisory memos on supply chain business opportunities and risk are now available on CAO's website, www.cao-ombudsman.org

COMMUNICATIONS & OUTREACH

Video: New Animated Video Explains CAO’s Work

CAO produced a two-minute animated video to explain who CAO is and how it works. The video is available in English, French, and Spanish.

WATCH THE ANIMATED VIDEO

This short animated video introduces viewers to CAO's work. To learn more about CAO's work, visit CAO's website, www.cao-ombudsman.org

DISPUTE RESOLUTION

Kenya: CAO Hosts Global Mediator Summit

CAO’s Mediator Summit brought together 27 mediators from 19 countries working on CAO dispute resolution cases to explore issues, challenges, and best practices. The Summit was held in Kenya and included staff from CAO’s Washington-based Dispute Resolution team.

LEARN ABOUT CAO’S GLOBAL NETWORK OF MEDIATORS

Participants at CAO's second global Mediator Summit which was convened as part of efforts to continually improve CAO's dispute resolution work, Kenya, June 2018 (CAO).

CASELOAD & DATA

Case Management: Majority of Cases in Monitoring or Closed

At the end of the fiscal year, 57 percent of cases were in monitoring or closed following dispute resolution or compliance processes. CAO carried 48 cases into Fiscal Year 2019.

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