1 1
Promoting transparency and
trust by strengthening
community E&S monitoring
PERU LNG’s Pipeline Participatory
Monitoring Program
2
PERU LNG
• Peruvian company formed by Hunt Oil
Company (50%), SK (20%), Repsol-YPF
(20%), Marubeni (10%)
• The Melchorita LNG Plant is located on
the coast 170 km south of Lima. It
includes a process train, two LNG
storage tanks, and a marine terminal.
• A 34” 408 km pipeline transports the
natural gas from the highlands of Peru
(Ayacucho) to the LNG Plant.
• Total investment: US$ 3.8 billion, the
largest private investment to date in
Peru. The project has financing from
IFC, IDB, US-Exim, K-Exim and SACE.
ECUADOR COLOMBIA
BRAZIL
B
O
L
I
V
I
A
CHILE
Lima Lima
PERU
PACIFIC
OCEAN
LPG Plant LEGEND
New Gas Pipeline to LNG Plant
LNG
EXPORTS
Cryogenic Plant
Lake
Titicaca Pisco
Compression Station #2
& NGL Pump Station #3 LNG Plant
Pampa Melchorita
Existing Gas Pipeline to Lima
Existing Condensate Pipeline to LPG Plant
Camisea
Gas Fields
ECUADOR COLOMBIA
BRASIL
B
O
L
I
V
I
A
CHILE
Lima Lima
PERU
Pacifico
Océano
Planta de GLP
Ducto nuevo para la planta de LNG
EXPORTS
Lago Titicaca
Pisco
Planta de LNG
Pampa Melchorita
Ducto existente de gas a Lima
Ducto existente de líquidos para la planta de GLP
Camisea
Campos de
Gas
LNG
Malvinas
Planta
Criogénica
3
• A 408 km gas pipeline from the
department of Ayacucho in the
Andes to the Pacific coast.
• Pipeline traverses 22 districts: 9 in
Ayacucho; 4 in Huancavelica; 8 in
Ica; and 1 in Lima.
• Within area of direct influence: 35
rural communities, 30 annexes, 26
localities, and 12 associations
The PERU LNG Pipeline
5
• A project of this magnitude raises concerns and creates expectations.
• Accurate and timely information is crucial to clear any doubts.
• To respond to concerns and proactively interact with Stakeholders, PERU LNG designed a set of Key Social Management Plans in line with line with IFIs standards:
1. Stakeholder Engagement Plan
2. Grievance Management Procedure
3. Rural Andean Community Management Strategy
4. Pipeline Compensation Management Program
5. Local Hiring & local Purchasing Procedure
6. Conflict Resolution Procedure
The need of extensive interaction and consultation
• These are implemented by PLNG’s Community Relations team through visits, workshops, meetings and other activities.
6
EXTENSIVE
INTERACTION &
CONSULTATION
WITH
STAKEHOLDERS
LOCAL
HIRING AND
PURCHASE
PLAN
GRIEVANCE
MANAGEMENT
PROCEDURE
STAKEHOLDER
ENGAGEMENT
PLAN
PIPELINE
COMPENSATION
MANAGEMENT
PLAN
E&S
INVESTMENT
PROGRAM
CONFLICT
RESOLUTION
PROCEDURE
ANDEAN
COMMUNITY
MANAGEMENT
STRATEGY
Consistent and coordinated approach
to stakeholders
Timely information about PLNG
activities and potential impacts.
Opportunities to stakeholders to
voice their opinion and concerns.
Opportunities for discussion
concerning measures proposed.
Active involvement of stakeholders in the
oversight of Company Performance
Integrate Community participation
into PLNG’s assurance process.
Build trust among monitors and
communities they represent.
Guarantee that Community concerns
are effectively addressed.
+
Building a constructive relation with stakeholders
+
7
• PERU LNG began implementing PMSAP in 2008.
• Involves the participation of local community monitors.
• Local monitors supervise the fulfillment of commitments to care for the land, water bodies, soil, plants and animals in the area.
• This program is being implemented in 35 communities along the pipeline Right-of-Way.
Participatory E&S Monitoring Program (PMSAP)
8
PMSAP Specific Objectives
• Integrate community participation into Company assurance processes.
• Build trust among monitors and communities.
• Ensure community concerns are addressed.
• Use Community feedback to improve performance.
9
• Design and implementation by a respected independent organization
(Local NGO: ProNaturaleza www.pronaturaleza.org)
• Carried out on a voluntary basis with:
–Communities
–Local authorities
–Civil society
–Government
Development of PMSAP
10
Implementation of PMSAP
Program implemented in the following phases:
Program
Design Program
Validation
Selection of
Monitors
Training of
Monitors Field
Monitoring
Present
Results to
Community
1 2 3 4 5 6
11
1. Program Design Phase
• Program divided into 3 geographic spreads.
• Specific social and environmental monitoring protocols developed.
• Processing of Monitoring Results:
–User-friendly database
–Action tracking
12
2. Program Validation
• Informative meetings held with local communities
– Review of proposed design of program
– Implementation of specific objectives
• Regular meetings to ensure clear understanding of program and respond to program expectations
13
3. Monitor Selection
• Monitors selected by communities.
• Number of monitors based on amount of community land affected by the Project.
• Monitor selection criteria:
–Fluent in Spanish & Quechua
–Minimum high school education
–Respected by the community
–Not a local authority
• Women and young people encouraged to seek nomination.
Monitors gender distribution:
38% Women 62% Men
Monitors average age:
32
14
4. Monitor Training Phase
• Review program objectives, monitor roles, and necessary commitment.
• Continued training provided:
–Construction/Ops processes
–Use of monitoring protocols and equipment
–Social and environmental commitments
–Potential impacts of specific activities
–Measurements and record keeping
• 84 monitors passed training and selected.
15
5. Field Monitoring
• Pilot exercise prior to full mobilization:
–Validate protocols and test field equipment
–Evaluate interview protocols and visit work fronts
–Assess interaction between monitors, Company, and contractors.
• Monitors in field 10 days every month with Program Implementing Partner
22
5. Field Monitoring: Results processing
180
145
39
2 0
Findings 2011
POSITIVE
OBSERVATION
ALERT
RISK
EMERGENCY
Positive Observation Alert Risk Emergency
128
82
28
2 0
38
30
50 03
19
0 0 05 6 5
0 00 0 0 0 06 5
0 0 0
Findings 2011 by Area
GEOTECHNICAL ENVIRONMENTAL OPERATIONS CC. RR. SOCIAL INVESTMENT THIRD PARTY
67%
7%
17%
4%
0%
5%
Findings 2011 - San Miguel / Kp0+000 - Kp51+633
GEOTECHNICAL
ENVIRONMENTAL
OPERATIONS
CC. RR.
SOCIAL INVESTMENT
THIRD PARTY
66%
23%
0%10%
0% 1%
Findings 2011 - Ayacucho / Kp51+633 - Kp210+003
GEOTECHNICAL
ENVIRONMENTAL
OPERATIONS
CC. RR.
SOCIAL INVESTMENT
THIRD PARTY
45%
29%
22%
2% 0%
2%
Findings 2011 - Ica / Kp210+003 - Kp404+003
GEOTECHNICAL
ENVIRONMENTAL
OPERATIONS
CC. RR.
SOCIAL INVESTMENT
THIRD PARTY
95
2431
1926
55
21
38
12
23
0
22
75
14 147
11
33
611
1 3 05
20
1017
12 1522
15
27
11
20
0
17
Evolución de hallazgos - 2011
Total 2011 Positivas Negativas
25
Conclusions
• Monitors are providing the Project timely and valuable information, guaranteeing community concerns are addressed.
• Independent Operator ensured effective community participation.
• Community receives accurate information on social and environmental performance; inaccurate perceptions are addressed.
26
• Monitors feel confident, better informed, communicate more efficiently and are gaining respect of community.
• Community involvement has promoted transparency.
• Positive impacts viewed as outweighing negative impacts, preventing social conflict.
Conclusions
27
• Continue with monitoring through operations, adapting monitoring protocols to this new phase.
• Improve the Data Base and Record Keeping system.
• Develop a webpage to disclose monitoring results to the general public and validate it with Communities.
Next Steps…