47598 IMPLEMENTATION OF THE MANAGEMENT RESPONSE TO THE EXTRACTIVE INDUSTRIES REVIEW January, 2009 Implementationof the ManagementResponseto the ExtractiveIndustriesReview Table of Contents Abbreviations andAcronyms...................................................................................................... i ExecutiveSummary................................................................................................................... 1 I.INTRODUCTION................................................................................................................. 4 I1 KEY DEVELOPMENTS INTHE EXTRACTIVEINDUSTRIESSECTOR..................... . 4 I11.IMPLEMENTATIONOF the MANAGEMENT RESPONSE........................................... Renewable Energy............................................................................................................... 5 5 Global Initiatives.................................................................................................................. 6 10 EnsuringCommunitiesBenefit FromE1........................................................................... Governance........................................................................................................................ 12 MitigatingEnvironmentaland Social Risk........................................................................ 14 IV.WBG E1FinancingFY2008.............................................................................................. 14 ChadCameroonPipelineProject-Environmentaland Social Monitoring...................... 17 V OTHER ISSUES................................................................................................................ . 17 Addressing StakeholderConcems/Evaluation.................................................................. -17 WBG E1Advisory Group.................................................................................................. Publications........................................................................................................................ 18 18 VI. Conclusions and Challenges.............................................................................................. 19 ANNEXES ............................................................................................................................... 20 ANNEX A Summary of CommitmentsinEIRMR........................................................ - 20 ANNEX B - WBG ExtractiveIndustries Financing-FY2008......................................... 21 ANNEX C - Summary ExpectedDevelopment Impacts of IFCProjectsFY2008...........23 ANNEX D - Summary o f Objectives of IBRD-IDAE1ProjectsFY2008........................ 27 ANNEX E SummaryE1ProjectComplaints/Requestsfor Audit/Inspection inFY200829 ANNEX F -- EITIwork program- countryportfolio summary......................................... 31 i ABBREVIATIONS AND ACRONYMS AAA Analytic and Advisory Activities ASM Artisanal and Small-scale Mining CAO Compliance Advisor/Ombudsman CAS Country Assistance Strategy CASM Communities and Small-Scale Mining CODE Committee on Development Effectiveness CommDev Oil, Gas andMiningSustainable Community Development Fund DFID Department for International Development EE Energy Efficiency E1 Extractive Industries EIR Extractive IndustriesReview EITI Extractive IndustriesTransparency Initiative EITAF Extractive IndustriesTechnical Assistance Facility EITAG Extractive IndustriesTechnical Advisory Group FY Fiscal Year (ending June 30thfor the WBG) GGFR Global Gas FlaringReduction Partnership GHG Greenhouse Gas GRICS World Bank Institute Governance Indicators HGA Host Government Agreement HIPC Heavily IndebtedPoor Country HIV/AIDS Human Immunodeficiency Virus/Acquired Immune Deficiency Syndrome IBRD International Bank for Reconstruction and Development I C M M International Council on Miningand Metals IDA International Development Association IEA International Energy Agency IFC International Finance Corporation IGA Inter-government Agreement IMF International Monetary Fund IUCN World Conservation Union LICUS Low-income Countries Under Stress MDGs Millennium Development Goals MIGA MultilateralInvestment Guarantee Agency MR Management Response to the Extractive Industries Review New-RE Renewable Energyexcluding hydro with capacity more than 1OMW NGO Nongovernmental Organization OECD Organization for Economic Co-operation and Development OED Operations Evaluation Department OEG Operations Evaluation Group OEU Operational Evaluation Unit PRSP Poverty Reduction Strategy Paper RE RenewableEnergy SPI Summary of Project Information SME Small and Medium Enterprises TA Technical Assistance UJV Unincorporated Joint Venture UN United Nations UNEP UnitedNations Energy Program WBG World Bank Group EXECUTIVESUMMARY This is the Fourth annual report on implementation of the Management Response to the Extractive Industries Review. It overviews progress achieved and further information about World Bank Group (WBG) activities related to the extractive industries andprojects it supported. Sector Background Through the end o f FY2008, commodity prices fell sharply and while some commodity prices (iron ore, coal, copper, fertilizers) remain above long term levels, many others are now back down to near pre boom levels., Continuing uncertainty in financial markets and slowing economic growth i s likely to lead to a further fall in prices. For investors and governments, the turn around from only a year ago has been rapid and substantial. Lower prices will lead to less government revenues for resource exporting countries going forward, but in the case of oil importing countries in particular, lower oil prices will mean sharply lower import costs. For investors, the profitability o f existing projects and the attractiveness o f new investments have fallen, and, in a number o f cases, access to finance has become a significant constraint. Projects are likely to be delayed and investment levels will fall. Brent Oil Price ($/bbl) 2008 1404 An ~ 80 O0i 1 1-Apr 1-May 1Jun 1Jul 1 - A q i S e p 1-0d i - ~ o v Progress in Implementation of the Management Response to the Extractive Industries Review The WBG has continued to implement the Management Response to the Extractive IndustriesReview (EIR, Annex A). It continues to carefully assess the expected benefits o f its engagement in the sector and the capacity to mitigate risks to these benefits. Duringthe year, a renewed focus on the issue of governance and Extractive Industries (EI) was announced by the launch o f an initiative intended to focus on addressing issues along the whole o f the E1value chain (from the process by which resources are allocated through to the management and spending o f revenues derived from extractive industries production). The WBG i s now working with partners including governments to realize this, and in this respect has carried out "diagnostic" missions to a selected number o f countries, These are expected in some cases to lead to further work with governments to address particular issues that were identified. Global Initiatives As apart of its approach to helping ensure sustainable E1development, the WBG leads or supports a number o f global initiatives addressedat specific E1issues: -2- Extractive Industries Transparency Initiative (EITI). The WBG strongly supports the implementation o f the Extractive IndustriesTransparency Initiative (EITI) that continues to have a positive impact in the area o f transparency about oil, gas and mining sector payments to governments. To date, thirty one countries have formally adopted EITI. The World Bank in particular helps support the initiative through: (a) administration of the EITI Multi-Donor Trust Fund that provides support to governments to implement EITI; (b) support to civil society to enable them to participate effectively inthe multi-stakeholder process; and, (c) assisting the EITI Secretariat inits coordination function andby serving as an observer on the EITIBoard. Petroleum Governance Initiative (PGI). In October 2006, the WBG signed a Memorandum o f Understanding with the Norwegian Government for a joint Petroleum Governance Initiative (PGI) inthe context o fNorway's Oil for Development agenda. The PGI i s based upon the thematic pillars o f Governance, Environment, and Community Development, and works at both the global and country-specific levels. With the assistance o f PGI funding, work i s being coordinated in a growing number o f countries, including: Ghana, Uganda, Sudan, West Bank-Gaza and Yemen. Global Gas Flaring Reduction Partnership (GGFR). The GGFR brings together industry, government and other stakeholders with the objective o f reducing gas flaring world wide. The partnership continued to make progress inincreasing awareness o f gas flaring and working with stakeholders to mitigate it. Key highlightsinFY2008 included five new countries joining GGFR. Inthe case of two significant gas flaring countries, Nigeria and Russia, the GGFR was able to help with practical steps to advance the cause o f gas flaring reduction in these countries. In Nigeria it helped support the "Nigeria Flare Reduction Committee" established by oil operators and the government as a venue to agree on a clear execution plan to reduce flaring. Inthe case o f Russia, the GGFR sponsored a study on associated gas utilization containing recommendations to help guidepolicy decisions and plans inthat country. Communities and Small Scale Mining (CASM). Artisanal and small-scale mining(ASM) involves very large numbers o fpeople globally, and often raises complex social and environmental issues. Higher commodity prices and the move o fmany poor people into ASM in recent years have increased interest inCommunity and Small Scale Miners(CASM), a multi- stakeholder approach supported by the World Bank to promote more viable livelihoods within communities and rural areas where ASM is significant. Working with others to address these issues and to help ensure that such miningi s sustainable i s a focus o f World Bank mining activities, especially inAfrica. Engagement with Stakeholders In addition to its formal initiatives, the WBG continued to actively reach out to stakeholders in FY2008 in a number o f ways. The WBG E1Advisory Group met in November 2008. In addition, as part of its approach to extending engagement across the E1value chain the WBG will bring together a new Technical Advisory Group to advise about related issues. This group will meet for the first time in mid January 2009. The WBG also has an active program o f engagement with civil society and others about extractive industries issues generally and on specific issues. It i s planning an "Extractive Industries Week" in March 2009 to bring staff and others together to discuss key issues, for example. -3 - Supportfor Renewable Energy The WBG increased its funding for renewable energy (RE) and energy efficiency (EE) projects and programs indeveloping countries inFY2008 by 87 percent. Total RE and EE commitments for the 2008 fiscal year endingJune 30, 2008 reached nearly US$2.7 billion. The WBGhas exceededits commitmentmade at the InternationalRenewable Energies Conference in Bonn, Germany in2004, to scale up financial support for "new" RE and EEprojects by 20 percent per year between fiscal years 2005 and 2009. From FY2005 to FY2008, the WBG has committed about US$3.7 billion, compared with the Bonntarget o f US$1.3 billion for the same time period. Continued Demandfor WBGExtractive Industries Financing WBG extractive industry financing inFY2008 grew by a third to US$1,030 million. IFC investments accounted for 80% o f the total, with the remainder coming from IBRD/IDA. Latin America, with close to 60% o f the total, was the most important region (primarily due to Peru LNG) with the balance spread amongst the other regions. IBRD/IDA programs focused on government capacity building and policy support, environmental remediation, and gas and energy distribution. In keeping with its mandate to push for cleaner sources of energy, gas related investmentsaccounted for nearly 60% o f IFC financing, oil for one third and mining for the remainder. Smaller and local companies accounted for the larger number o f IFC investments, with projects inIDA countries apriority. IFC tracks the benefits generated by its E1 projects as part of IFC's Development Outcome Tracking System (DOTS) exercise, Incalendar year 2007, for example, its E1portfolio i s estimated to have contributed over US$8 billion to government revenues and created or sustained over 71,500 jobs in 2007 directly or indirectly. Virtually all o f these companies engaged inthe development o f local communities, spending about US$lO9 million on activities inthis area. Linkages to local businesseswere strong with total spending on goods purchased from local and national suppliers o f about US$5.2 billion. Challenges Looking Forward Looking forward, the WBG i s likely to face demands to help address E1 challenges arising from the changed market environment, Countries facing sharp falls in E1revenues and a drop in interest by companies in new investments may look to the World Bank for assistance. Even investors with good long term development projects may find appropriate financing more difficult to obtain given developments in financial markets and increased uncertainty about commodity prices. IFC/MIGA will have a substantial countercyclicalrole to play inthis respect. The WBG's new approach to helping countries address issues along the whole o f the E1 value chain, referred to as "EITI++", has the promise to help countries make better use o f their natural resources, but will require strong country ownership and partnerships between the WBG, governments and other stakeholders to successfully implement and make a difference for countries and their citizens. A new Extractive IndustriesTechnical Assistance Facility (EI-TAF) beingset up by the WBG is intended to help inthis respect byproviding support quickly to meet urgent demands for assistance. 4 Implementationof the ManagementResponseto the ExtractiveIndustriesReview I.INTRODUCTION 1.01 This is the Fourth report' to the Board on progress in implementing the Management Response (MR) to the reports of the Extractive Industries Review (EIR) and the WBG's (WBG) own evaluations2. The report summarizes WBG activities in the extractive industries (oil, gas and mining- EI) inFY2008, and reviews progress inthe MR implementation. 11.KEYDEVELOPMENTSINTHE EXTRACTIVEINDUSTRIES SECTOR COMMODITY PRICESFALLSHARPLY 2.01 Commodity prices that had in some cases already come off recent highs have fallen sharply as the financial crisis has impacted the outlook for demand growth following a time of strong supply growth. 2.02 Looking forward, as the financial crisis hits the real economy, demand will fall and prices could fall further. China will be critical with the risk o f a period of slower, less resource intensive growth there helping keep prices down for some time. Longer term, demand for commodities i s likely to continue to be strong in developing countries and prices will recover, with the timing uncertain. Inthe case o f oil, prices will also depend to a large extent on OPEC's capacity to reinin supply inthe face o f a fall indemand and some expected growth innon-OPEC production. In the oil sector, state controlled companies control close to eighty percent o f oil reserves with private investors increasingly concentrated in the most difficult countries and areas. As prices fall and capacity is shut in by OPEC to try and support prices, governments are likely in some instances to be reluctant to invest innew capacity that may only be needed when the economy picks up again. 2.03 E1 share prices have plummeted since July 2008, especially for smaller companies, as commodity prices have started to come down. Oil companies' shares have generally fallen less than miningcompanies whose prices are down more than 70% in some cases since July lSt 2008. 2.04 Lower commodity prices, lower profits, and lower equity values for E1 companies, despite some offset from lower input costs, will lead to the postponement o f projects - especially those with large capital costs and long payback periods. Costs which have been pushedup inthe last few years by shortages o f skilled personnel and equipment, and higher steel and other material prices, are likely to come down but with a lag. Governments will receive lower tax revenues than expected and will face more difficult negotiations when it comes to new projects. The third updatewas SecM2008-0044,IDA/SecM200-0061, IFC/SecM2008-0008,MIGA/SecM2006-0005. The WBG Management Response to the Reports o f The Extractive Industries Review; The Independent Evaluations by OEDIOEGIOEU; The CAO Review. (R2004-0165/1, IFC/R2004-0180/1,MIGA/R2004-0053/1) -5- There are already signs that some governments are considering reductions in taxes to help encourage continued investment despite the fall inprices. 2.05 Smaller companies without good cash flows are already finding it difficult to access finance to continue exploration and appraisal programs. Further consolidation in the industry is likely as companies with producing and profitable businesses take over companies who have been more severely impacted by falling prices. Targets will include particularly those companies that are shut out o f financial markets and have no access to cash flows but that have attractive long-term concessions. 111.IMPLEMENTATIONOF THE MANAGEMENTRESPONSE 3.01 Since the third report on implementation o f the Management Response, further progress has been made in the implementation o f its commitments. Annex A summarizes progress on specific objectives. RENEWABLE ENERGY 3.02 The WBG increased its funding for renewable energy (RE) and energy efficiency (EE) projects and programs in developing countries in FY2008 by 87 per cent3. Total RE and EE commitments for the year ending June 30, 2008 reached nearly US$2.7 billion. The commitments by the WBG, including Carbon Finance operations and co-financing support from the Global Environment Facility (GEF), were made up o f the following: Table 3.1 WBG Commitmentsfor Renewable Energy and Energy Efficiency in FY 2008 Commitments inFY2008 (millions o f U S dollars) Source of hnds New Renewable Hydro > lOMW Energy Total Energy Efficiency World Bank 272 625 719 1,616 - IBRDADA 117 601 624 - GEF 90 0 55 - CarbonFinan 65 24 40 IFC -- 115 361 473 OwnFunds 72 361 473 Carbon Financ 39 0 0 - GEF 4 0 0 MIGA 88 21 0 110 Total 476 1,007 1,192 2,675 1Note: Some columns may not add up exactly due to rounding I 3.03 Renewable energy and energy efficiency investments made up 35 percent o f total WBG energy commitments for the year (up from 13 percent per year on average in the early 1990s) with 95 projects in 51 countries, as well as two cross-border projects. In 2004, at the International Renewable Energies Conference in Bonn, Germany, the WBG committed to For further information see www.WorldBank.org/energy -6- increase its financial support for new renewable energy and energy efficiency projects by 20 percent per year between fiscal years 2005 -2009, compared to a baseline commitment o f US$209 million. From then until the end o f FY2008, the WBG more than exceeded that goal, committing cumulatively close to US$3.7 billion to such projects, compared with an implied commitment goal o f US$1.3 billion. 3.04 The WBG's strategic framework for climate change and development4 that was considered by the Board in FY2009 provides an overall framework for the WBG activities inE1 and climate change. E1projects will be included in pilots that are beingundertaken to measure portfolio greenhouse gas emissions and that are looking at the issues relating to the use o f shadow costs inproject economic analysis. The approach to climate change and development in so far as E1 specifically are concerned will be further considered as a part o f a proposed new WBG EnergyStrategy. GLOBAL INITIATIVES 3.05 The WBG i s leading or actively involved with the implementation o f four global initiatives. Extractive Industries Transparency Initiative 3.06 The WBG continues to strongly support the implementation o f the Extractive Industries Transparency Initiative (EITI) through (a) administration o f the EITI Multi-Donor Trust Fund, (b) support to civil society, and (c) assisting the EITI Secretariat inits coordination function and serving as an observer on the EITIBoard. 3-07 Since inception, the EITI principles have become a well-established and recognized standard for resource revenue transparency. At the country level, 31 developing countries have formally adopted EITI (see Annex F). The EITI Board has formally declared 23 o f these as "candidate" countries for EITI and i s awaiting information from another 8 countries - and a further 9 countries are at early stages of dialogue or sign-up steps. A full list of these countries and their status i s shown in Annex F. Ten of these countries (six o f them in Africa) have advanced in their EITI implementation to the stage o f having issued one or more EITI Reports. Norway became the first Part Iresource-rich country to announce that it will adopt EITI. In addition, the WBG i s working with 6 other countries which are in dialogue about possibly adopting EITI. 3.08 When the Multi-Donor Trust Fund (MDTF) work program began in 2005, the initial focus of the EITIteam and the MDTF was on outreach to help support the initial set o f countries to implement EITI as national processes. As the take-up of EITI grew, the EITI portfolio o f countries grew substantially, and the global EITI architecture solidified (EITI Board formed and Secretariat launched inOslo), the emphasis o f the EITIteam and MDTF work also evolved. The World Bank work program i s no longer mainly about outreach to new countries but also includes: (i)active implementation support to a growing volume o f countries; (ii) focused support to countries to meet EITI Secretariat goals such as the intense pre-validation exercise o f Development and Climate Change A Strategic Framework for the World Bank Group (SecM2008-0375) For more information on the EITIsee www.eitransparenw.org -7- late 2007 (to get countries to become candidate countries); and (iii) a proactive effort to expand global knowledge and learning, leveraging the accumulated implementation lessons/experiences within the EITIteam and MDTF. 3.09 These strategic goals remain, but, in view o f the validation deadlines established by the EITI Board (early 2010 inmost cases), the two key challenges the EITIteam expects to address over the coming 12-18 months will include: (i)urgent technical assistance, especially for countries issuing their first EITI reports, to help countries be ready for-and actually fund and undertake-the validation process within the two-year deadline; and in this respect (ii) specifically target proactive assistance to slower-moving countries. In addition, the EITI team will focus on very close coordination, internally and with countries, with any parallel work on the value chain agenda. Inparallel, the team will also need to be responsive to meetingdemand from new countries interested in EITI or wishing to adopt EITI, and continuing the program o f global knowledge and learning activities. In this respect, the World Bank i s working actively with and helping increase the capacity of other international institutions such as Africa Development Bank and Asia Development Bank so that they can work effectively with countries inimplementingEITIintheir regions. 3.10 From January lSt, 2007, IFC required all E1investors it supports to make public payments to government from their operations. During 2008, it followed up with investors to review the practice and as a result, it has set up a web-site to facilitate ready access to the informationmade public by companies for the year ended December 2007. In addition, from January 2009, IFC will clarify its requirements for clients and will require disclosure in a more consistent form for all companies. Inrecent years, other institutions, such as OPIC and EBRD, have followed IFC's lead and IFC has provided advice to them inthis respect. Petroleum GovernanceInitiative (PGI) 3.11 InOctober 2006, the WBG signed a Memorandum ofUnderstanding with the Norwegian Government for ajoint Petroleum Governance Initiative (PGI) inthe context o fNorway's Oil for Development agenda. The PGI i s based upon the thematic pillars o f Governance, Environment, and Community Development, and works at both the global and country-specific levels. The total level o f support from Norway i s planned to be some US$9 million over the first three years (to end-FY2009). 3.12 Activities currently being supported under the Governance pillar focus on country-level coordination o f technical assistance with the aim o f ensuring coordination o f WBG and Norwegian support inthe petroleum sector. This i s a priority becausethe WBG and Norway are by far the largest providers of technical assistance to developing countries in the petroleum sector. With the assistance of PGI funding, work i s being coordinated in a growing number o f countries, including: Ghana, Uganda, Sudan, West Bank-Gaza and Yemen. Work under the Environment pillar encompasses: a survey o f environmental management systems for oil and gas, a strategic assessment o f the social and environmental challenges o f offshore oil development in Mauritania, and preparation o f a tool-kit for safe abandonment o f petroleum fields and mines. 3.13 The Community Development pillar activities have been focused on increasing the capacity o f local municipalities to manage oil revenues in Colombia, and development o f an online information clearinghouse on community development in relation to the extractive -8- industries. The PGI is using IFC's Oil, Gas and Mining Sustainable Community Development Fund(CommDev - see page 12) as avehicle for its engagement inthis area. Global GasFlaring ReductionPartnership (GGFR) 3.14 The GGFR continued to make progress in increasing awareness of gas flaring and working with stakeholders to mitigate it. Key highlights in FY2008 include Nigeria and Russia, the two largest flaring countries, taking steps to address gas flaring. The GGFR facilitated the "Nigeria Flare Reduction Committee" which has beenestablished by the oil operators inNigeria and the government as a venue for dialogue and cooperation to agree on a clear execution plan for implementing Nigeria's Associated Gas Utilization Plan to reduce flaring. The GGFR- sponsored study on "Associated Gas Utilization in Russia" contains key recommendations that could help guide policy decisions and plans inthat country. GGFR i s currently working with the MinistryofNatural Resources and Environment (MNRE) to improve the reliability of associated gas data inRussia and develop its flare reduction policies. 3.15 In 2008, membership of the GGFR initiative has increased. New country members include the first two Middle Eastern countries to join the initiative, Iraq and Qatar, as well as Azerbaijan, Uzbekistan and Gabon. The public visibility o f the GGFR partnership has increased substantially, particularly in mainstream media such as The Wall Street Journal, The Financial Times, The Economist, and the InternationalHeraldTribune. 3.16 The GGFR partnership has also become a focus for new small-scale natural gas conversion and transportation technology developers. The GGFR and Methane to Markets Partnership (US EPA) jointly organized a forum on flare reduction and gas utilization in Amsterdam in December 2008. This forum highlighted the use o f innovative small-scale gas utilization technologies in addition to discussing methods to improve natural gas market development and institutingregulatory and operational best practices. 3.17 Looking forward, the partners involved in the GGFR partnership will consider the extension o f the initiative into a third Phase given the need to continue addressing the issue generally and emerging work programs that cannot be completed before end 2009. Based on satellite imaging, the level o f global flaring in2006 was 157 bcm, a decline o f 5 bcm from 2005 and a further decline o f 10 bcm took place in 2007. This recent downward trend contrasts with the 2000 to 2005 period in which global flaring remained relatively flat. The GGFR core team believes that the trend in flared associated gas on a barrel o f oil equivalent basis (flaring intensity) may be the best indicator o f overall progress on gas flaring reduction as it takes into account the level o f oil production. In this connection, the graph below, which shows a significant downward trend inflaring intensity, i s encouraging -9- Figure3.1 FlaringIntensityper Barrelof OilProduced-PercentChangefrom 1996 Flaring intensity: OA change from 1996 0% -5% --15% 10% -20% -25% ' -30% -35% -40% I 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 +Global --ilt-Partner countries Communities and Small Scale Mining (CASM) 3.18 Artisanal and small-scale mining (ASM) remains a focus o f Bank mining activities, especially in Africa. Higher commodity prices and the move o f many poor people into ASM in recent years have increased interest in CASM. In June 2007, the G8, in a joint statement about development and EIs, expressed its support for CASM. Established in 2001, CASM contributes to the reduction o f poverty and the promotion o f moreviable livelihoods within communities and rural areas where ASM i s significant, through social, economic, and environmental changes. CASM's objectives are fully aligned with the MillenniumDevelopment Goals. 3.19 The major themes developed during FY2008 and continued into FY2009 include (a) large-scale mining and ASM conflicts; (b) gender; and (c) certification and fair trade. CASM's global activities include (i)advocacy, awareness building, and fundraising; (ii) networking and coordination o f ASM development programs; (iii) dissemination o f best practiceshowledge (6 new publications); and (iv) actively buildingpartnerships with other developmental agencies and the private sector (more than 40 public, private, and civil society entities are associated with CASM, including major private mining associations). Regionally, CASM activities are implemented through networks in Africa, AsidPacific, and China. Regional CASM networks support government ASM policies, knowledge sharing, and grass roots development programs. 3.20 The 8th Annual CASM Conference was held in Brasilia, Brazil from October 6th-12th, 2008. The number and diversity o f participants increased again in 2008, with over 300 participants, ranging from Mining Ministries, to NGOs, to Donors, to Small-scale Miners, from 40 different countries convened to discuss "Digging to Deliver Development". Emerging issues that were discussed included how climate change and food security will impact ASM. 3.21 DuringFY2008, CASM continued to receive strong support from existing donors such as the UK Department for InternationalDevelopment(second year o f a 2 year grant of US$885,000 with additional funds committed for FY2009); the Government o f Denmark (annual allocation o f US$lOO,OOO); and, the WBG (annual allocation o f US$200,000). However, broader donor support remains one o f CASM's key challenges. -lo-. GOVERNANCE Managing IssuesAcross theEI Value Chain 3.22 The World Bank and other development partners have been working closely with developing countries on the sustainable management o f oil, gas, and mineral resources for many years. However, faced with volatile commodities prices that until recently have been generating unprecedented revenues, there has beengrowing consensus on the need to step-up efforts, taking a more comprehensive and integrated approach particularly to the governance issues relating to EI. Accordingly, the World Bank President announced during the Spring Meetings a renewed focus by the WBG on helping countries ensure sustainable development from their extractive industries. A key component of the new approach ("EITI++"), is the need for resource producing countries to take a more consistent and comprehensive approach to the management o f issues along the whole o f the E1"value chain": from how investors access exploration and development rights and under what conditions they develop resources; to the collection o f taxes; to how revenues are accounted for and distributed among various levels o f government; and, to their sound management anduse. Figure3.2: E1Value Chain resources operations o f taxes and management, sustainable allocation utilization 3.23 Working with governments, the World Bank has completed a number o f "diagnostic" missions to countries such as Colombia, Guinea, Madagascar, Mauritania, and Mozambique in order to test out the proposed approach in practice. The lessons o f these missions are being reviewed and in some cases it i s expected that new programs with governments to address key issues identifiedwill beundertaken. Demandfor Rapid ResponseAdvisory Assistance 3.24 One immediate outcome o f the missions has beento confirm that the World Bank needs more and better tools to assist countries in managing their natural resource sectors well. Particularly, inrecent years, given the prospect o f robust long term demand for commodities, the World Bank has received a growing number o f requests from governments in Africa and elsewhere for rapid assistance as they have to deal with higher levels o f interest ininvestment in their oil, gas and miningsectors at a time o f volatile prices. 3.25 Governments need rapid access to experts who can help them establish appropriate fiameworks for investments and to evaluate proposals that will be fair and hence more sustainable and robust to changes in circumstances and government, including the review o f feasibility studies and environmental and social reviewshmpact assessments. Offers to invest may be very complex and involve significant government commitmentsrelating to infrastructure, for example. Poorly constructed agreements and frameworks may also result in the environmental and social/community framework in which development takes place being inadequate and resulting in excessive costs or damages to the host country and communities. Assistance may also be required to prepare for and assist innegotiations and in order to transfer -11- needed capacity and skills to government officials. While the World Bank i s well equipped to respond to resource-rich countries' needs along most o f the E1value chain, existing instruments are inadequate to provide this rapid-response advisory assistance that is being sought. ProposedExtractive Industries TechnicalAssistance Facility 3.26 Inorder to meet such urgent demands for assistance, the WBG's Oil, Gas, and Mining Policy and Operations Unit (COCPO)6 will establish and manage a global facility to provide the resources to meet this demand in a responsive and flexible way. The Extractive Industries Technical Assistance Facility (EI-TAF) will respond primarily to requests for rapid response advisory services from E1 countries in regard to transactions, contract reviews/negotiations, licensing rounds/concession arrangements, including the appropriate environmental and sociallcommunity framework to guide development, and/or sector policy decisions requiring urgent attention (including identifyingkey longer term capacity buildingheform programs). 3.27 As a part o f the overall approach, advisory teams comprised o f international, regional, and national experts (geophysicists, geologists, petroleum and mining engineers, financial experts, environmental and social development specialists, lawyers, etc.) would be assembled (pre-qualified, to the extent feasible, in a database o f accredited vendors). Wherever feasible, simplified procurement procedures would be used. Appropriate confidentiality, risk mitigation provisions, and discharge o f liability will be devised to protect the World Bank, consultants, and recipient countries. 3.28 The EI-TAF will also use a limited amount o f its resources on knowledge management. It will: (i)provide an early framework o f good practices and discussion o f issues that may be relevant for governments faced with the task o f making resources available (including exploration rights) to private investors. This (public good) framework will be updated periodically, and will provide an initial guide to governments as well as providing a fkamework for World Bank staff who are involved in rapid assistance to governments using the facility; (ii) the EI-TAF shall from time to time draw lessons from its experiences in financing assistance to governments and make these available in a format that can help others; and, (iii) on a selective basis, commission work that i s urgently needed to inform governments and others about particular issues that come under the objectives o f the EI-TAF. To date, a number o f countries have indicated that they will likely support the facility. Extractive Industries TechnicalAdvisory Group 3.29 To provide additional inputs to WBG thinking about governance issues in resource rich countries, the World Bank has asked a group o f academics and other thinkers on the issues to join a group to provide advice in this respect. The group will complement the existing WBG Extractive Industries Advisory Group that was set up following the Management Response to the Extractive Industries Review, and whose remit covers a much broader area o f E1 issues, including for example, environmental and community issues. The new group met for the first time inJanuary 2009. 6COCPO also manages the CASM, EITIand GGFRprograms for the WBG -12- ENSURING COMMUNITIES BENEFITFROM E1 The Oil, Gas and Mining Sustainable Community Development Fund (CommDev) 3.30 CommDev i s a source o f knowledge and funding for practical capacity building, training, technical assistance, implementation support, awareness-raising, and tool development for community development efforts integrally linked to extractive industry projects. CommDev serves as an integral component o f an extractive industry project, enhancing, accelerating, and extending the value-added support given to communities beyond the compliance requirements o f IFC investment projects and World Bank loans. 3.31 As of November 2008, CommDev has funded 15 technical assistance projects since inception valued at nearly $3 million. Another 14 projects are in the pipeline. In addition to projects reported last year, examples o f CommDev projects include Colombia (Participatory Monitoring of MiningRoyalties), Global (Tool for Capturing the Incremental Benefit and Cost o f Social Investment), Guyana (Public Health Pilot Training Program), Guinea (Scoping study to Increase Access to Finance in Mining Communities), Mali (Participatory Process for Planning Mine Closure), Peru (Community Participatory Monitoring around Peru LNG), and Russia (Foundation Capacity Building). All projects funded by CommDev generate public goods for broad distribution. Box 3.1 Commdev Support to Address ArtisinalMininginthe DemocraticRepublicof Congo InKolwezi inKatanga, DemocraticRepublic o fCongo, CommDev engaged with the large scale mining sector, local government, NGOs, and other stakeholders to develop an integrated approach to artisanal and small scale mining that provides a strategic roadmap with a set o f practical recommendations to be implementedjointly by companies, government, civil society and artisanal miners. Followingeight months o f research and consultation, a multi- stakeholder strategy has been developed for a peaceful transition to broad-based economic development and improved governance inKolwezi. This Roadmap emphasizes the multi-facetednature o f the issues surrounding artisanal mining and proposes a series o f initiatives accordingly: economic development, governance promotion, alternative livelihoods development, training and employment, promotion o f safe and regulated artisanal mining, protection o f vulnerable groups, elimination o f child labor, and focused infrastructure development. Based on these recommendations, several new initiatives have since been separately funded by the private and public sectors, including activities related to the eradication o f child labor, mining code dissemination, and the rehabilitation o f the formerly renowned local mininginstitute. The local government has also made progress implementing actions towards a legal and safe artisanal mining environment. 3.32 CommDev i s aiming to change the way community development projects are implemented.Itis usingleverage to require increasedparticipationo f stakeholders, greater definition o fmonitoring and evaluation frameworks, more practical tool development, increased use o f local counterparts (intwo cases previously trained by WBI), as well as buildingon existing internal and external expertise. Ithas also developed an information clearinghouse about community development inthe extractive industries that i s has now been inoperation for one year (see Box 3.2). -13- Box 3.2 The Extractive Industries Information Clearinghouse Inresponse to growing demand for community development guidance by E1companies, one year ago CommDev launched its online Information Clearinghouse, a repository o f CommDev's knowledge, case studies, tools, and research collected from its network o f internal and external community development practitioners. I t is the primary vehicle through which CommDev will disseminate information and engage practitioners to share experience. The Clearinghouse is designed to be a resource for key stakeholders - companies, communities and localhegional governments - in this sector. CommDev.org has established itself as a "go to" resource for information and knowledge - through its partners and own experience - on grappling with community development issues in extractive industries. In 2008, approximately 200,000 people visited the site. The latest statistics show that nearly 600 users visit the site every day, with an average duration o f 11 minutes per visitor. The hits on this site show a steady increase over the last year, tripling innumber over 9 months. The countries registering the greatest number of users are the United States, United Arab Emirates, Great Britain, Argentina, Germany, Canada, South Africa, China, India, Australia, Saudi Arabia and Nigeria. With over 2,000 resources available, this knowledge - through selective and thoughtful application - should contribute to "raising the bar" on how community development i s implemented and establish a more sustainable, technically-grounded foundation for long-term socio-economic development in communities impacted by EI. It offers a Resource Center organized into 22 key topic areas, a set o f tool kits that give users the guidance to practically implement projects, and numerous links and case studies, all chosen to respond to the requests for assistance from stakeholders. CommDev is now buildingan interactive platform that will be an important vehicle for creating a network o fpractitioners to share concrete ideas, approaches, issues, and successes. Gender Issues 3.33 The Extractive Industries and Gender Program developed by the World Bank's Oil, Gas and Mining Policy Division (COCPO) i s progressing well. A guide, based on research carried out inPeru, will soon be published and piloted inthe private sector. The Guide focuses primarily on improving development impacts for women in communities near extractive industries operations rather than women in the company workforce and provides clear practical suggestions about what companies can do to improve their practices and mainstream gender through their operations. Related activities include a publication on Gender and Extractive Industries emphasizing both the development and business case for gender mainstreaming. 3.34 A two day International Workshop on Mining, Gender and Sustainable Livelihoods was held jointly with the Australian National University (ANU). The main objective o f the conference was to explore and analyze a range o f complex and interconnected questions and issues relating to mining, gender and sustainable livelihoods. Another workshop was held during `the annual Community and Small Scale Mining (CASM) conference on gender, in-migration and indigenous people. Funds have been mobilized for the preparation o f a framework to address gender issues in artisanal and small scale mining (ASM) and in particular to help reduce and mitigate the health and safety risks and potential social harm to women associated with ASM. -14- I Workingwiththe PrivateSector to helpWomenBenefit morefromMining CommDev is working with Lonmin, a platinum mine in South Africa, to promote workforce transformation and community development. One key focus o f IFC's work is to help Lonmin meet its Women in Mining targets as required by the South African Mining Charter. Since the program began in October 2007, Lonmin has hired over 500 additional women, thereby increasing its female workforce by 42%. IFC is currently working with Lonmin on 13 Women in Mining initiatives including building female change houses, updating policies and procedures, and implementing an alternative job placement system for pregnant women who work underground. MITIGATINGENVIRONMENTAL SOCIALRISK AND 3.35 A number of the key recommendations inthe Management Responsewere subsequently reflected in IFC's new Policy and Performance Standards on Social and Environmental Sustainabilitythat came into effect in April 2006. IFC reported to the IFC Board on progress on the first 18 months of application in December 20077. It i s intended to report back to the Board on implementation over the three years since the Standards introduction at end FY2009. A process of independentreview will then beginto consider what policy updates are requiredinthe first half o f FY2010. The Performance Standards have now been adopted by more than 60 "Equator Banks" (including institutions such as export credit agencies) as the basis for their financing activities including activities inthe extractive industries. 3.36 As of April 30, 2007, new versions of the WBGEnvironmental,Health, and Safety (EHS) Guidelines have been in use. The new EHS Guidelines were developed as part o f a two and a half year review process, and are intended to be `living documents' that will be updated on a regular basis going forward. As part o f this update process, new "Mining" guidelines were finalized inDecember 2007 andjoin four other updated guidelines specifically for the extractive industries: Offshore Oil and Gas Development, Onshore Oil and Gas Development, LNG Facility and Base Metal Smeltingand Refining. IV. WBG E1FINANCINGFY2008 4.01 The overall volume of WBG E1financing inFY2008 was US$ 330 million, an increase over FY2007 o f 33%8. IFC investments accounted for 80% of the total financing volume, with the remainder split between IBRD (7%) and IDA (13%). LatinAmerica with close to 60% of the total was the most important region (primarily due to Peru LNG) for overall WBG financing in FY2008 with the balance spread amongst the other regions. IFC's Policy and Performance Standards on Social and Environmental Sustainability and Disclosure Policy: Progress Report on the first 18 Months o f Application, December 14", 2007. IFC/SecM2007-0052 Details provided inAnnex B. -15- Graph 4.1 WBGEI Financing By Institution FY1999-08 : 1 lzoo, ElBRDllDA OlFC WMIFA~ 1000 800 600 400 200 0 -99 w o o wo1 M 0 2 -03 FY04 M 0 5 M 0 6 -07 w 0 8 4.02 The growth in the volume o f funding in FY2008 was driven by an increase in IFC lending and in particular the financing o f US$300 million to support the Peru LNG project. By sub sector, fundingwas concentrated inthe gas sector, arelatively clean source of energy. Table 4.1 WBGFY2008 Financing by Sub-Sector IBRDLDA 4.03 IBRD/IDA financed 10 programs in FY2008 for a total of US$210.5 million. These programs were often part of larger projects with a range o f objectives. None o f the programs were to support investment directly in new extractive capacity although the $75 million financing in Egypt was intended to broaden the use o f natural gas as a substitute for more valuable Liquefied Petroleum Gas (LPG). Objectives o f the other financings included government capacity building and policy support, environmental remediation and energy distribution across a number o f countries inAfrica, MENA, ECA and East Asia. IFC 4.04 InFY2008, IFC committed 24 E1financings for a total of US$819.8 million for its own account o f which 8% was for mining, 58% for gas and the balance o f 34% for oil. Almost all o f IFC's financing in terms o f numbers and about 60% in terms o f US$ volumes was with smaller international and local companies, IFC's largest single financing was its financing o f the Peru Includes IDNIBRDblend countries - See Annex B -16- LNG liquefaction plant to support the development of the first LNG project in Peru and Latin America. 4.05 Some o f the expected development impacts o f IFC investments in the Oil, Gas and MiningSectorsin2008 are: These companies will create or preserve 4,648 direct jobs; Over the same period they will contribute about US$l billion to government revenues; Spend approximatelyUS$4 million on community development activities; and, Make a strong contribution to development o f the domestic economy through linkages with local supplier. The total value o f goods and services purchased i s expected to be inexcess o f US$550 million. 4.06 These benefits complement the contributions made by existing IFC portfolio companies inthe Oil, Gas, Mining and Chemicals Industries. An aggregation of results undertaken as part o f IFC's Development Outcome Tracking System (DOTS) exercise indicates that, collectively, the companies in IFC's oil, gas and mining portfolio contributed over US$8 billion to government revenues and created or sustained over 71,500 jobs in 2007 directly or indirectly. Virtually all these companies engaged inthe development of local communities, spending about US$109 million on activities inthis area in2007. Linkages to local businesseswere also strong, with total spending on oods and services purchased from local and national suppliers of about US$5.2billionin2007 18. Box 4.1 provides examples o f projects being supported by IFC where it i s working with investors to enhance the local development impact of their projects. Box 4.1 Examples of Projects where Investors, with IFC's Assistance are Working to Broaden Local Development Impacts Ahafo GoldMineDevelopment,Ghana In2007, IFCjoined our client, NewmontMining,to launchaprogramthat offers sustainable economic opportunities to communities affected by Newmont's operations in Ahafo, Ghana. As o f December 2008, new supplier contracts worth $8.9 million have been awarded to 125 local MSMEs and 47 local entrepreneurs have completed the first stage o f a mentoring program focused on management and technical productivity. Other income-generating opportunities have been identified and developed in egg production, vegetable farming, and pottery and brick production. Our efforts have strengthened the local business association and built the capacity o f 19 local trainers; and activities for women's economic participation, HIViAIDS awareness, and other health-related education will soon be launched. While communities benefit from the supplier contracts, local governments report a 35 percent increase intheir tax revenue base over previous years. Cairn India Oil Development,Rajastan India IFC has been engaged with Cairn since 2004 through several investments and assistance with local economic development programs. IFC i s currently partnering with Cairn on an Enterprise Center, a rural dairy development project, and a child and maternal health initiative in one o f India's least developed states, Rajasthan. The programs draw heavily on IFC's experience implementing similar programs in Chad and Azerbaijan. As o f December 2008, results included: 1,800 women and children being reached by the program child and maternal health program; 781 farmers benefiting from the diary project; and, over 3,200 (1,200 women) receiving skills training by the Enterprise Center. lo hrther informationseeIFC's AnnualReportfor theyear endedJune30th2008 (Pages78 and79). For -17- CHAD CAMEROON PIPELINE PROJECT ENVIRONMENTAL SOCIAL MONITORING - AND 4.07 Following the World Bank's exit from the Chad-Cameroon Oil and Pipeline Project in September, 2008, IFC has continued to supervise the environmental and social impacts of the project inboth countries, including most recently through a supervision visit inNovember 2008 to the OilfieldDevelopment Area (OFDA) inKome. 4.08 The purpose of the latest supervision trip was to follow up on the implementation of the Land Use Management Action Plan (LUMAP), as well as the continuing infill drilling program, which was initiated to maintain production levels. The project has drilled, as o f July 2008, a total o f 227 additional wells in the past 12 months, including 116 during the first 2 quarters o f 2008. IFC monitors this ongoing infillprogram closely as it will continue to significantly affect previously impacted villages and individual households currently undergoing additional mitigation measures through the LUMAP. IFC has requested the development o f a Cumulative Environmental and Social Impact Assessment (CESIA) for the Infill Program. It i s expected that the first draft ofthe CESIA will be available bythe end of January 2009. 4.09 The major issue affecting the Cameroon portion of the project is the current difficult financial situation o f FEDEC (Foundation for Environment and Development). The Foundation was set up as a mechanism to mitigate pipeline impacts along the pipeline corridor. FEDEC provides funding, from the initial seed money provided by Cameroon Oil Transport Company (COTCO), to the three implementing agencies for programs for the indigenous people in the Lolodorf - Kribi corridor and the two offset parks, Campo Ma'an and M'Bam D'Jerem. FEDEC's capital i s depleting due to, among other factors, higher than expected costs of implementing the programs. IFC has been working with the World Bank, COTCO, and FEDEC to address this issue inorder to arrive at a sustainable solution. 4.10 A proposal for an Action Plan is currently being negotiated to (i) review the existing to two Park's Management Plans and budgets including the operational plans o f the World Wildlife Fund/Wildlife Conservation Society and compare these with the original EMP budgets to establish a more realistic estimate o f the cost o f the park components; (ii)develop a long term Indigenous Peoples Plan; and, (iii)based on the previous items, to design and implement an institutional strengthening, capacity building and fundraising strategy for FEDEC. The objective would be to improve FEDEC's capacity to deliver on its long term role regarding the environmental and social compliance o f the project, as well as the larger role FEDEC aspires to as a National Environmental Foundation. V. OTHERISSUES ADDRESSINGSTAKEHOLDER CONCERNS/EVALUATION 5.01 During FY2008, the CAO's office received three new complaints about IFC Extractive Industries projects, and continued working on two from FY2007. Two complaints were received inrespect ofthe BTC project. Inone case, agreement was reachedbetweenthe company andthe complainant, and, in the other case, the dispute i s now the subject o f the Georgian courts. CAO Compliance i s considering if an audit i s warranted. -18- 5.02 In addition, CAO Compliance disclosed the Audit Report related to the first complaint related to the Karachaganak project in Kazakhstan. This complaint was carried over from FY 2007. The audit remains open under monitoring. Inthe case of the second complaint received in FY2007, the CAO closed the case duringFY2008 and referred the complainant to the CAO audit o f IFC related to the first complaint. In the case o f a third complaint concerning the Karachaganak project, the CAO Ombudsman i s conducting an assessment. During the year the CAO's office issued Advisory Notes on three areas relevant to EI: Participatory water monitoring, grievance mechanisms, and on improving development impact at the local level. 5.03 The Inspection Panel did not receive any requests for inspection in connection with extractive industries projects in FY2008. In respect o f a request for inspection from 2007 concerning the West Africa Gas Pipeline, an Inspection report was delivered to the Board in April 2008 and a Management ResponseinJune 2008. For moreinformation see Annex E. 5.04 The WBG's Independent EvaluationGroup (IEG) continued with their regular program o f evaluation o fproject outcomes. Lessons learned are applied to new operations. Inthe case of IBRD/IDA, individual project reviews are accessible via (http://www.worldbank.orsdieg).Inthe case o f IFC, a general analysis o f its development results includingE1 rojects, i s incorporated into its Independent Evaluation o f IFC's Development Results2008 . IP 5.05 In2008, the World Bank Group's IndependentEvaluationGroup (IEG) conducted an evaluation12o f how well the World Bank Group has supported public and private clients intheir efforts to achieve greater environmentalsustainability. Among the findings o f the review was that IFC's E1projects had an Environmental and Social Effects (ESE) success rate o f 74%, higher thanthe IFC average, and suggestinggood client supervision and careful IFC appraisal and supervision. The report's recommendations included that IFC and MIGA should also be concerned with and measure more fully the aggregate and supply chain impact-beyond individual project performance-ofprojects with large environmental dimensions-for example, inoil, gas, mining, energy, or agribusiness projects inhighbiodiversityregions. WBGE1ADVISORYGROUP 5.06 The fourth meeting o f the WBG Extractive Industries Advisory Group was held in Washington in November 2008. The record note o f the meeting i s accessible at http://www.worldbank.ordomnc. Issues discussed at the meeting included the activities of the WBG inFY2008, Transparency inEI, EITI++, Mineral Certification Schemes, the IFC approach to Broad Community Support, and developments inmininginMadagascar. PUBLICATIONS 5.07 Bank staff carried out selective policy research work on E1related issues. Some recent publications (available at www.worldbank.org/ogmc) have included: Coping with Oil Price Volatility (ESMAP Publication Energy Security Special Report 005/08) 11Accessible at: http://www.ifc.org/ifcext/ieg.nsDAttachmentsByTitle/IEDR2008FullReport/$FILE/IEDR+CompletetReport.pdf l2Environmental Sustainability. An Evaluation ofWorld Bank Group Support. IEG2008 -19- Democratic Republic o f Congo: Growth with Governance inthe Mining Sector (WB 43402- ZR) Implementing the Extractive Industries Transparency Initiative: Lessons from the Field. (World B a M E I T I ) VI. CONCLUSIONSAND CHALLENGES 6.01 The WBG has continued to implement the specific requirements o f the Management Response to the Extractive Industries Review (Annex A), and to focus on sustainable outcomes for its activities with government and at the community and project levels. It continues to carefully assess the expectedbenefits o f its engagement ineach specific case, inparticular with a view o f the risks to these benefits and the capacity to mitigate these. 6.02 As it entered FY2008, some o f the most urgent issues confronting the WBG inextractive industries were how to help countries manage the resources boom- interms o f large increases in revenues, increased interest in investment and in concerns about the fairness o f contracts and sharing o f the benefits o f the boom. At the end o f the year and continuing to the present, the short term market outlook has changed markedly - demand and prices have fallen, tax and other revenues will follow and some anticipated investments are going to be delayed. In contrast to concerns about recovering a fair share o f project's benefits, it may be that countries will start to be faced by companies wishing to renegotiate contracts signed in a period o f higher prices because lower prices, cost increases and higher taxation have made them unviable. The WBG has a significant countercyclical role to play inhelping its client countries and the private sector duringthis period. 6.03 At the same time, the longer term fundamentals remain in place despite volatile prices and the potential for some permanent demand destruction caused by the period o f high prices that the world has gone through. There is huge potential demand for E1 from developing countries that i s likely to result in continuing demand growth over the long term. Prices will eventually recover even though they may fall further in the short term. New resources will continue to need to be found and brought on stream in developing countries. This will present great opportunities and challenges for countries to ensure that E1development i s carried out in a sustainable manner and long term benefits are realized for the country and its people. For the WBG, the proposed approach o f considering issues in a consistent way along the whole o f the "E1 Value Chain" offers an opportunity to work with government and other stakeholders more effectively. -20- ANNEXES ANNEX A Summary of CommitmentsinEIRMR - I Summary of CommitmentsinEIRMR I Commitment ProcesdActions Renewable Energy: 20% pagrowth ininvestmentfor new-RE and EE New-RE and EE commitments in FY2008 were US$1668 million. From July 2004 through June 2008, such commitments totaled US$3.7 billion compared with the Bonn goal of US$1.3 billion Enhanceinternational cooperationinREand EE Continuingactiveengagementwith international community. Enhancementof reporting WBG RE & EEProgressfor 2007 published October2008.2008 Report will bepublished December2008 Governance: Address relevant E1issues inCASs for resourcerich LICUS and CAS guidance notesoperational.E1issues covered inFY2007 countries CASslCPSs/ISNs.EITI++ approachto assessment of whole valuechain Review of governancerisks inprojects&review of Governance issues beingconsideredinproject appraisal and design use of governanceindicators New E1TAF will be operational from CY2009 Mitigation insignificant new projects Being appliedas needed Disclosureof assessment of governance Governance assessmentreferencedinIFC Summaryof Project Information Transparency: Requirement for significant new projects & for all FromJanuary I"2007, all new E1investments havedisclosed payments to new projects within two years government. Compliancereviewed,new web site set up to help review and IFC requirements to berefinedfrom January 2009 Support country led transparency work Continued strong IBRDiIDA support for and momentumof EFI Benefiting the Poor: Requireprojectsto benefit localpeople andhave Carehl assessments andjudgmentsbeing applied broadcommunity support Work with sponsors to broadendevelopment impact Being done routinely SME programs Extensive experiencenow being gained ina number of projects Application ofpoverty indicators Initial results being reviewed & consolidatedwith new IFC Development Tracking System(DOTS) - sector results inIFC Annual Report Support for capacity building Applied as appropriate Sustainabledevelopment facility New SustainableCommunity DevelopmentFundk l l y operational Support for ASM program Ongoing CASM initiative supportedby new DFID and other financing Mitigating Social and Environmental Risk: Revision of IFC guidelines addressing E1issues New EHS guidelinesfor E1now operational- Finalguideline for mining (submarine andriver tailings disposal, cyanideetc) published in 2008 Review of no-go issues Issue reviewed on revisionof IFC safeguards. PerformanceStandard 6 addressesissue - not no-go zones but no-go circumstances" " 0 IBRDiIDA guidance on new project categorization Guidancenote issuedinDecember2005 Disclosure: Disclosureof expectedproject benefits Addressed inrevisedIFC Disclosurepolicy review - E1project expected development impacts now being disclosed in SPIs &tracked Annual disclosureof project impacts by investors. Investorsbeing encouragedto disclose inappropriateform Protecting Rights of People: Prior informedconsultation RequirementinSustainablePolicy & PerformanceStandard- with additional guidance inGuidanceNotes. New IFC good practice guide on stakeholder engagementissuedMay 2007 Broad community support for projects As above Requirements about use of securityforces Requirements now inIFC Performance Standard4 Review core labor standards Requirements now inIFC Performance Standard 2 - IFC Q&A on ILO 169 for privatesector issuedMarch2007 Broaderhumanrights issues WBG emphasison understandinglink with development IFC toolkit being - OngoingLearning and Review: Establishmentof Advisory Group 0 Fourth meetingheldNovember 24-2Sh,2008. Recordnotepublished 0 Additional policy advisory group establishedto meet inJanuary 2009 Annual review ofprogress This i s the fourth report 0 Lessonsof review ofjoint IFCiBank Department WBG activities inE1continueto be focused injoint IFC/Bank Department for Oil, Gas, Mining andChemicals -21- ANNEX B WBGExtractive IndustriesFinancing-FY2008 - Table 1: IFC Extractive Industries Financing - FY2008 Project Country Sector US%m Description Block Z1 Peru OiWGas 19.50 Gas development, transportation, processing and conversion (2 investments) to power FEEC China C B M China Mining 19.25 Coal bed methane evaluation (2 investments) Geopark RI L A C Gas 5.OO Capital Strengtheninghmproved corporate governance for Region local producer IPR Egypt Egypt OiUGas 10.00 Exploration, appraisal and development o f four oil fields in the Western Desert o f Egypt Kalukundi Equity DRC Mining 3.58 Feasibility study and exploration for cobalt and copper mining Lydian World Mining 3.29 Exploration, feasibility study and E&S impact assessment o f (3 investments) mineral resource properties inKOSOVO, Armenia and Turkey Maple Energy Peru OiVGas 10.00 Exploration and production of crude oil and natural gas Melrose Resources World OiliGas 35.00 Oil and gas production M S W Power Indonesia Mining 5.00 Constructionand operation o f a mine-mouthcoal-fired power plant inIndonesia - mining component PAE I1 Argentina Oil/Gas 150.00 Exploration, development and production o f oil and gas Pan American 2 Mexico Mining 4.33 Exchange o f IFC Loan rights for share warrants Peru L N G Peru Gas 300.00 Development, construction and operation o f LNG plant Punj Upstream India Oil/Gas 27.87 Acquiring four onshore drillingrigs to serve oil & gas companies operating inIndia QGOG Rigs Brazil Oil 50.00 Constructionand operation o f an offshore drilling rig ROCH Argentina Oil/Gas 17.00 Oil and gas production and exploration Salamander Indonesia OiUGas 50.00 Oil and gas production and exploration inSoutheast Asia Schahin Rigs Brazil Oil 50.00 Construction and operation o f an offshore drilling rig Simandou I1 Guinea Mining 30.00 Exploration for iron ore mining Vostok (2 investments) Russian Gas 30.00 Gas production investment Fed. 1TOTALIFC 819.82 I -22- Table 2: IBRD/IDA Extractive Industries Financing - FY2008 Project Country Sector US$m Description IBRD Natural Gas Connections Egypt, Arab OiliGas 75.00 To switch consumption o f liquefied Project Republic petroleum gas (LPG) for natural gas IDA* NaturalResources and Ghana Mining 5.80 To implementreforms inthe inter-related EnvironmentalGovern. sectors o f forestry and wildlife, mining, Development Policy Operation and environ. protection ARP I Contaminated Sites - Azerbaijan Oil/Gas 26.82 To curtail environmental degradation inthe RehabilitationProject Absheron Peninsula ARP 111-Large Scale Oil Azerbaijan OiliGas 60.00 To improve effectiveness inenvironmental Polluted Land Clean Up management o f oil polluted land inthe Absheron Peninsula Energy Sector Recovery Senegal 12.00 To ensure a sustained and sound long term Development Policy Operation development o f electricity services and supply o fpetroleumproducts for Senegal Mining Sector Institutional Mongolia Mining 9.30 To develop policy, fiscal, legal, regulatory Strengthening TA and institutional framework for the mining sector Second Mining Sector Papua New Mining 17.00 To mitigate health and safety risks for Institutional Strengthening TA Guinea artisanal & small scale miners Economic Management and Central Mining 1.58 To strengthen public finance management, Governance Reform African and to improve transparency inthe mining Development Policy Operation Republic sector Public and Natural Resources Sao Tome and OiYGas 1.20 To improve accountability, and strengthen Management Development Principe governance inthe oil sector Policy Operation Energy Emergency Tajilustan 1.88 Increase the volume and reliability o f the nationalenergy supply TOTAL I D A 135.58 TOTAL IBRD/IDA 210.58 TOTAL WBG 1030.40 * IncludingIDNIBRD Blend -23- ANNEX C Summary ExpectedDevelopmentImpactsof IFC Projects FY2008 - BlockZ1 (Two investments) Block Z1 i s an integrated gas-to-power project in northwest Peru, near the border with Ecuador. The project will produce gas from gas reserves offshore and generate electricity for the growing demand for electricity in northern Peru. It will support the monetization o f stranded natural gas reserves in Peru and will create regional markets for natural gas. The production and sale of gas will provide an important source of revenue to the country through royalties and taxes and create direct new employment opportunities. It will also substitute for more expensive and polluting imports of diesel and fuel oil, help reduce transmission constraints by reversing the flow of electricity from South to North, and in addition make sizeable annual contributions to local community development FEEC China CBM The project i s to complete an exploration program, including completion o f the feasibility study and Social and Environmental Impact Assessment (SEIA) documentation, for coal bed methane (CBM) development and production in China. Development benefits at the gas production stage include environmental and associated health benefits from cleaner energy inwhat i s largely a coal fired economy. For China as the world's third largest net importer o f oil, the project will increase energy security. The project will also increase employment and fiscal revenues (royalties, taxes, and through government ownership interests in CBM production). Geopark (Rights Issue) IFC's original investment in FY2007 was to support Geopark, a small independent South American exploration and production company with producing assets in both Argentina and Chile. The project was to finance a portion o f the company's capital expenditure program which aims to increase oil and gas production, Through the development o f its existing blocks and acquisition o f adjacent blocks, the company will help meet domestic oil and gas requirements. It will thereby help Argentina and Chile maximize the use of their natural resources by developing much needed oil and gas reserves and increasing the recovery factor o f marginal fields. It will provide full-time employment, support local communities and suppliers, and generate benefits for the national and local governments. IPR Egypt IPR i s a small independent oil and gas company engaged in the development o f oil fields in Egypt.The project consists o f the continued development, appraisal and exploration activities in six oil concessions located inthe Western Desert and the Gulf o f Suez. It i s expected to result in benefits to the government through revenue payments and production sharing. It will also create local employment and help develop the local oil services industry through its spending on local goods and services. KalukundiEquity Africo Resources Limited (ARL)i s a listedjunior Canadian mineral exploration and development company and a sponsor o f the Kulukundy Cobalt-Copper project. The proposed IFC investment will contribute to on-going exploration activities to convert resources to reserves, on-going feasibility study work, and the up-grading o f the environmental and social impact assessmentsto international standards for the Kalukundi Project. The project i s expected to contribute to local economy through payments to Government, suppliers and employees, and to community development through funding o f social development programs. It i s also expected to provide -24- direct and indirect employment opportunities for local community and demonstration effects in terms o f the application o f IFC environments and social standards. Lydian (Three investments) The project i s the continued exploration o f Lydian Resource Company's mineral properties in Kosovo, Armenia and Turkey, including feasibility studies, environmental and social impact assessments and other preparatory activities. Potential development impacts at the mine production stage include employment, foreign currency exports, and taxes and royalties at the federal, regional and local levels. Maple Energy Maple Energy i s an independent, privately-held integrated energy company with assets and operations focused in Peru. The project involves hrther exploration and development in the company's hydrocarbon concession, and, the possible future development o f a green field ethanol project. The project will increase Peru's indigenous sources o f energy through extending production levels in currently producing fields and the monetization o f stranded natural gas reserves, gas liquids and oil, in the central east area o f Peru. It may also lead to new hydrocarbon discoveries. Production o f bio-ethanol, if it progresses, will boost the agricultural sector in Piura and produce a renewable, less polluting fuel. The production and sale of hydrocarbons and ethanol will both provide an important source o f revenue to the country through royalties and taxes, and skilled employment opportunities for Peruvians. Melrose Resources Melrose i s an oil and gas exploration and production company with a balanced portfolio of producing assets, development projects and exploration interests in Bulgaria, Egypt, France and the United States. The project is expected to contribute benefits inthe form of employment, taxes for government and the local supply o f oil and gas inEgypt and Bulgaria. Inaddition, the project will help supporting local communities and suppliers inthe area o fproject operations. M S W Power The project i s to construct, own and operate a 60MW (2x30MW) mine-mouth coal-fired power plant in South Kalimantan, Indonesia, including a captive coal mine. The project will sell its capacity and energy to PT Adaro Indonesia under a 13-year Power Purchase Agreement. It plans to sell excess electricity to the local power grid and will thereby provide much-needed electricity generation capacity to address continuing supply shortages inthe grid system in Kalimantan. The project will also generate benefits for local communities and suppliers as well as taxes for government. PAE I1 Pan American Energy L L C i s the second largest oil and gas producer inArgentina and has blocks located in the four major hydrocarbon basins - Golfo San Jorge, Austral, Neuquina and Northwest. The project will help finance the continued development and production o f the Cerro Dragon block in the Golfo San Jorge basin, which represents approximately half of the company's total production. The project will help alleviate the current gas shortage inArgentina, will contribute to the employment growth, significant payments o f tax revenues to both the federal and regional governments, purchases from local and national suppliers, and investment in social and community development. Pan American 2 (Exchange of IFC loan rightsfor share warrants) IFC's original investment in 2003 was to finance L a Colorada silver mine inMexico, sponsored by the PanAmerican Silver Corporation. The project involvedthe rehabilitation and expansionof -25- an existing underground silver mine; the installation o f a processing plant; the clear out of environmental and health hazards associated with the former operation; the provision o f clean water, electricity, and other services to local citizens; and an SME component whose objective was to stimulate local sourcing of products and services, maximize the project's developmental impact and the quality o f the project procurement. It was also expected to provide direct and indirect employment and help support a community ina remote and poor region. PeruLNG The project consists of the development, construction and operation o f the first LNG liquefied natural gas plant in Latin America. The project consists o f a green field liquefaction train (the LNG Plant) and related marine facilities at Pampa Melchorita south of Lima, as well as a natural gas pipeline. The project will support the development and strengthening o f the country's natural gas infrastructure and be a significant new source o f exports for Peru. It will also contribute tojob creation and to community development programs. A majority o f Peru LNG's exports are planned to go to Mexico where they will help replace fuel oil for electricity generation with cleaner gas. PunjUpstream A newly formed Indian oilfield services company, Punj Upstream, has been established by Punj Lloyd Limited (PLL) to participate in the opportunities afforded by the Indian exploration and production sector. IFC will provide early-stage funding for the new company to acquire four onshore drilling rigs to service cater to private and national oil and gas companies operating in India. Punj Upstream will set a new standard for exploration and production policies and procedures for drilling service companies by being the first Indian oilfield services company to adopt IFC's Environmental and Social Performance Standards. It will increase private sector participation in the oil and gas sector and promote competition. The project will also increase employment and the purchases o f goods and services from local suppliers. The project will also contribute to decreasing the miss-match between potential supply and demand o f oil inIndia. QGOGRigs The project involves development and production o f an offshore drilling rig inBrazil. It will help develop the energy sector, strengthen the oil and gas support infrastructure in Brazil, and will promote domestic private sector participation in the oil and gas industry. The project will also generate increasing local linkage benefits, provide local employment and training, and help develop local skills indeep offshore rigoperation. ROCH ROCH i s a small Argentinean oil and gas exploration and production company with hydrocarbon assets in central and southern Argentina. IFC will provide financing to the company for further exploration and development in its hydrocarbon concessions and for potential acquisition o f new hydrocarbon assets. It will contribute to alleviation o f a tight gas market in Argentina by increasing local supply.The project will also benefit the local economy through local purchasing, the creation and preservation o f local employment, and through increased payments o f taxes and royalties to the Federal and Provincial Governments. Salamander (Three investments) Salamander i s rapidly-growing independent oil and gas company founded in 2005 and exclusively focused on Southeast Asia and involved in production, development, appraisal and exploration activities. The project i s expected to cover the expenditure needs and will support the development o f natural gas reserves, which will promote the use o f a cleaner fuel in the region. The Project will have a sustaining impact on existing employment levels, contribute to the -26- creation o f new jobs, to Central and Local Government Revenues and i s expected to have a positive impact on national and regional economic activity through the purchasing o f equipment, products and services. Through its operation and exploration activities the project i s also expected to promote competition and attract FDIinfrontier countries. Schahin Rigs The project finances the construction o f an offshore drilling rig in Brazil. It will help strengthen the oil and gas support infrastructure in Brazil, and will promote domestic private sector participation in the oil and gas industry. It will widen the number o f players active in this sector will also generate linkages to local suppliers and increase local employment and training, and help develop local skills inthe offshore oil sector. SimandouI1(First investment in FY2007) IFC will provide further equity financing for the exploration o f various high grade iron ore resource targets within a 110 km long zone in the Simandou Mountain Range in the Eastern Region o f Guinea. The project will contribute to continued exploration activities and completion o f a feasibility study for the resource's development. Duringthis exploratiodappraisal phase the net impacts will be relatively limited but will include employment and training opportunities at exploration camps and purchases from local suppliers. Inaddition, the sponsor i s undertaking an education and literacy program to be implemented in the impacted and affected villages. Other social investment projects inthese areas will also be undertaken. Vostok (Two investments) Vostok i s a small independent oil and gas company operating in one o f Russia's frontier regions, close to the border with Kazakhstan. IFC will finance a project expected to help company's strategy to grow into a sizeable upstream operator, focusing primarily on the development of natural gas properties. The project will enhance the availability o f cleaner fuel in the region, which i s currently dependent on coal for power generation. It will promote competition and private sector participation in the gas sector, which i s currently dominated by the state-controlled Gazprom. In addition, the project will generate benefit by sustaining and increasing local employment, increasing central and local government revenues, and creating community support programs. -27- ANNEX D Summaryof Objectivesof IBRD-IDA E1ProjectsFY2008 - Azerbaijan The development objective o f the ARP I - Contaminated Sites Rehabilitation Project i s to support the Environmental State Program (ESP) to curtail environmental degradation in the Absheron Peninsular, by assisting in decontamination of former iodine production sites and the development of a strategy for remediatiodcontainment o f Naturally Occurring Radioactive Materials (NORM) contaminated sites. The project will also support development o f institutional capacity for the cleanup o f former oil production sites and the development of rehabilitation and redevelopment plans for a specific oil production site. The development objective o f the ARP III-Large Scale Oil Polluted Land Clean Up Project i s to improve (i) SOCAR'S capacity and effectiveness in environmental management and in cleaning up of oil polluted land in the Absheron Peninsula, and (ii) quality of soil conditions in oil the polluted lands cleanedup under the project. CentralAfrican Republic The Economic Management and Governance Reform Grant (EMGRG) supports the implementation o f the Central African Republic (CAR'S) Poverty Reduction Strategy Paper. This grant focuses on two main policy areas: (i) strengthening public finance management; and (ii) improving public sector and economic governance, including enhancing transparency in the mining sector. This operation directly supports two pillars o f the PRSP: (i) promoting good governance and the rule o f law (second pillar); and (ii) rebuilding and diversifying the economy (thirdpillar). In addition, it will assist the Government in attaining some o f the Highly Indebted Poor Countries (HIPC) completion point triggers and will provide much. needed external resources to ensure timely payment o f public sector salaries and external debt service. Egypt,Arab Republic of The development objective o f the Natural Gas Connections Project i s to (i)contribute to the Government's program o f switching from consumption o f liquefied petroleum gas (LPG) to natural gas through investment in new natural gas connections; and, (ii)exploit the scale economies in transportation o f natural gas relative to LPG in very densely populated areas, thereby reducing the cost o f gas provision. Ghana ThisNatural Resources and Environmental GovernanceDevelopment Policy Operation supports the Government o f Ghana as it implements reforms under its Natural Resources and Environmental Governance (NREG) program, This first DPO focuses on a set o f policies and reforms inthe inter-related sectors o f forestry and wildlife, mining, and environmental protection intended to (a) ensure predictable and sustainable financing o f the forest and wildlife sectors and effective forest law enforcement; (b) improve miningsector revenue collection, management, and transparency; (c) address social issues in forest and mining communities; and (d) mainstream environment into growth through strategic environmental assessment, environmental impact assessment, and development o f a climate change strategy. The DPO series may also assist the Government as it addresses the emerging oil sector. Mongolia The development objective for this first phase of the Mining Sector Institutional Strengthening Technical Assistance Project i s to assist the Government develop hrther the policy, fiscal, legal, regulatory and institutional framework for the mining and extractive sector that meets the needs -28- o f government, industry, and civil society. This includes assisting the operation o f Erdenes MGL L L C move to good international practice appropriate for a commercial entity. Papua New Guinea The development objective o f the Second Mining Sector Institutional Strengthening Technical Assistance Project i s to improve the benefits from Extractive Industries (EI) to the national budget and to mining affected communities and to mitigate mining's health and safety risks for artisanal and small scale miners(ASM).This will be achieved through improving effectiveness o f key E1sector institutions, supporting E1communities to be better able to monitor the delivery of community programs and services, empowering disadvantaged groups including women and youth in extractive industries affected areas, improving accountability o f the sector and for management and use o f mining-related revenues. The primary target groups are the institutions involved in the mining sector, the communities in the vicinity o f large-scale and artisanallsmall scale miningoperations and the recipients and managers o f miningbenefits streams. Sao Tome and Principe The Public and Natural Resource Management Development (PNMD) Policy Operation supports policy measures aimed principally at improving accountability, effectiveness, and level o f public resources, and strengthening governance in the oil sector. I t will also support the authorities' efforts to initiate the preparation o f a new PRSP based on updated information on oil prospects and in depth analysis o f growth diversification options. The operation will support government policy actions to (a) improve public expenditure efficiency through better budget preparation, execution, and control; (b) enhance the tax regimes and assure a stronger impact of public expenditures on poverty; and (c) raise the standard o f petroleum sector governance in line with international standards o f transparency and the Extractive Industries Transparency Initiative (EITI). Senegal The objective o f the Energy Sector Recovery Development Policy Operation i s to ensure a sustained and sound long term development o f electricity services and supply o f petroleum products for Senegal. To achieve this, the operation comprises (a) financial support to the Power Utility of Senegal) (SENELEC) - to restore by end CY2009 its financial equilibriumand Government to allow the power utility o f Senegal - Societe Nationale d'Electricite (National to meet standard financial ratios and credit worthiness; and, (b) policy measures aimed at ensuring that the electricity sub-sector and the downstream hydrocarbon sub-sector develop and operate inan efficient and transparent way with adequate governance. Tajikistan The development objective o f the Energy Emergency Recovery Loan Project i s to urgently increase the volume and reliability of the national energy supply (including gas), especially inthe winter seasonby supporting the implementation o f the Recipient's Energy Emergency Mitigation Plan (EEMAF'). These objectives will be realized through: increasing to the extent possible thermal and heat energy supply from existing assets in the shortest possible timeframe and initiating institutional and technical measures to increase the amount and reliability o f energy supplied to the population duringthe next two winter seasons. The World Bank will also continue to provide technical and policy advice as needed, including to help the Government manage priority needs to enable better reservoir management at Nurek Reservoir to avoid similar crises in the future. -29- ANNEX E Summary E1Project ComplaintsDZequestsfor Audit/InspectioninFY2008 - A. Summary E1ProjectRelatedComplaintsDZequestsfor Audit Handledby CAO The CAO's received three new complaints concerning Extractive Industries in FY2008 and closed one complaint that was unresolved in the previous fiscal year and continues to monitor IFC response on a second complaint that was carried over from FY2007: 1. Baku-Tbilisi-Ceyhan (BTC) Pipeline. InAugust o f 2007, the CAO received a complaint from residents o f Vale, who claimed that following the completion o f the pipeline project BTC Co. did not meet previously agreed land restoration commitments. CAO encouraged direct meetings between BTC Co. and the complainants. After two meetings an agreement has been signed by the parties in June 2008. The parties concurred that the complaint will remain open untilthe agreement hasbeenimplemented. 2. Baku-Tbilisi-Ceyhan (BTC) Pipeline. In February 2008, the CAO received a complaint filed on behalf of villagers inNaokhrebi, Akhalsikhe District, regarding the residents' landrights. InApril, the CAO Specialist OmbudsmantraveledtoNaokhrebito discuss options for resolution. During this visit both parties presented documents which contradicted the opposing party's assertions regarding ownership o f the land in dispute. The case i s now being considered in the Georgian courts. Although, the complainant offered an out-of-court settlement, BTC Co declined the offer on grounds that it would set a precedent for other claims. The complaint has been transferredto CAO Compliance for appraisal to determine whether an audit i s warranted. 3. Lukoil Overseas (Karachaganak gadoil development). CAO disclosed the audit report related to the first complaint together with IFCs official response. The audit remains open under monitoring. 4. Lukoil Overseas (Karachaganak gadoil development). InApril 2007, the CAO received a second complaint on behalf o f a local community who had concerns about health and safety. After evaluation by CAO Compliance. Due to the similarity o f the issues, CAO Compliance referred the complainant to its ongoing audit o f IFC in relation to the fist Lukoil Overseas case and closed this appraisal inJanuary 2008. 5. Lukoil Overseas (Karachaganak gadoil development). InMay 2008, the CAO received a third complaint on behalf of a local community with concerns about health and safety and who wanted relocation o f the village (this issue did not fulfill the criteria for an audit in the first two complaints). The complaint met the criteria for eligibility and an ombudsman assessment i s ongoing. B. Requestsfor Investigationof IBRD/IDA projects receivedby the InspectionPanel The Inspection Panel did not receive any requests for inspection inrespect o f extractive industries inFY2008. Inthe case ofthe West Africa Gas Pipeline (#40) inthe previous fiscal year the Panel recommended to the Board that it carry out an inspection. The Board approved the Panel's recommendation and the Panel has conducted its investigation. The report o f this investigation was submitted by the Panel to the Board in April o f 2008 and the response by the Management, after requesting an extension o f the deadline, on June 30 of 2008. -30- Further information about complaints can be accessed at httu://www.cao-ombudsman.org/. and http://web.worldbank.orrr/WBSITE/EXTERNAL/EXTINSPECTIO~ANEL/O,,menuPK:64 1320 57-parrePK: 64130364-piPK: 64132056-theSitePK:3 80794.00.html 33 I 0 5 f UW Ot; JH CUlL,a, biz 011W a0UUmJVal0 P al U U P ------t.- ZC .- 1 1m >w m-0 P m U-0 mUP s -.- L3 E" mci vi