29 June 2010
The IFC's current Performance Standards for Social and Environmental and Information Disclosure issues have a number of weaknesses in policy and application. BIC recommends three broad categories for change and provides projects that illustrate these needs.
I. Increased disclosure of revenue and contracts for the extractive industry are necessary
ARICOM, Russia
BIC recommends enhanced contract disclosure for the extractive industry
According to BIC partner CSOs, for this project there is a “lack of documentation in Russian. (Furthermore) the Bank Information Center sent a letter to Aricom on the 24th of September, 2007 inquiring about revenue transparency disclosure mandated in paragraph 22 of the Sustainability Policy. In a letter post-dated on the 17th of October, Aricom replied that the information...requested is not publicly available.”
Click here to read more about this project.
KARACHAGANAK, Kazakhstan
Increase requirements for revenue disclosure in the extractive industry
The Kazakh government recently filed a lawsuit against Karachaganak Petroleum Operating to claim over $700 million in penalty fees. Recent audits show the company has produced oil and condensate above its legal and contractual limit since at 2004. Earlier disclosure and oversight could have revealed this illegal revenue and environmental hazard.
Click here to read more about this project. (Crude Accountability website)
CAMISEA, Peru 
According to analysis conducted by the World Resources Institute and BIC with the support of an OxFam America grant, while this project improves public access to information, those administering the project fall short of Peruvian law. This shortcoming disempowers citizens who would like to hold their government accountable for project revenue and externalities.
Click here to read more about this project. (OxFam America website)
II. Reporting on development outcomes must be improved
PANDO-MONTELIRIO, Panama
To effectively evaluate projects, capture both positive and negative development outcomes
“The ANAM (Autoridad Nacional del Ambiente-Health and Environmental Authority Ministry)… evaluates each (dam) project individually, leaving (out) the consideration of the cumulative impacts of multiple projects on a same river…Many of the studies (have) included the plagiarism of information from other studies, that have been presented for projects in other rivers in very distant places.”
Letter from Civil Society Organizations about Pando-Montelirio-English.
Letter from Civil Society Organizations about Pando-Montelirio-Spanish.
KUMTOR, Krygyzstan
Sensitive projects should be subject to independent project assessments
“Several accidents have occurred in the mine. In May 1998, nearly two tons of cyanide and sodium hypochloride spilled, poisoning the Barskoon river and leaving several people dead and hundreds seeking medical treatment. In July 1998, 70 litres of nitric acid spilled, and in January 2000, a mine truck dumped 1.65 tons of ammonium nitrate. In July 2002, a Kyrgyz worker was buried in the collapse of a 200 metre high pit wall at the mine.”
Click here to read more about this project. (CEE Bankwatch website)
BUJAGALI, Uganda
Communities affected by this dam have seen few positive results. Those who rely on fishing and proxitimity to roadways have been relocated to an inconvenient location miles away. The exterior walls of the new homes built for displaced villagers have begun to form deep exterior cracks after a only few years. Affected communities also say they were promised a connection to the electrical grid, but that has not materialized.
Click here to read more about this project.
YANACOCHA, Peru
Independent assessments of controversial topics, like the Yanacocha mining project, allow the affected community, the IFC, and governments to make improvements when designing and implementing future projects based on past weaknesses and strengths. This report is an example of both positive and negative development outcomes, and an unbiased independent assessment of a sensitive project.
Click here to read more about this project.
III. The FPIC principle and Broad Community Support for risky projects
LAFARGE, Bangladesh
Projects involving Indigenous People should require their consent
“Transfer of land to anyone other than a local tribal (citizen) has always been a controversial issue in the state; let alone land transfer to a company…Mortgaging local land by a foreign company to foreign banks has made it even more contentious.”
Click here to read more about this project.
SIHANOUKVILLE AIRPORT II, Cambodia
Broad Community Support for projects should be sought and measured regularly
“Safeguard plans including those required by IFC Performance Standards and Guidance Notes have not been disclosed. Technically, these documents were never developed… safeguard requirements had not been satisfied and were never presented to the community.”
Click here to read more about this project. (BIC Asia department report on Airport II, pdf document)
OMAR EFFENDI, Egypt
“There is one feature of the early retirement system that has been stressed…by…IFC's guidelines which is to make the early retirement system VOLUNTARY. But according to hassles (actually documented ones) with workers, workers had to take that option.”
Click here to read more about this project.
TATA MUNDRA, India
"Historical and cultural sites; defense installations; and places of historical, religious, or cultural importance are in and around the area. The surrounding areas within a 10 km radius have several rural communities. The villages nearest to the project site boundaries are Tunda, Wandh, Kandagara, and Nana Bhadiya. Most of them being cattle rearing communities (gauchar), fishing communities have lost both their livelihoods and access to livelihoods."
Click here to read more about this project.