Social Sustainability in the Hydropower Sector Richard English, PhD Principal Environment and Social Development Special

1. Social Sustainability in the Hydropower Sector Richard English, PhD Principal Environment and Social Development Specialist South and East Asia Regions, International Finance Corporation Power Summit 2008 September 24, Kathmandu, Nepal

4. IFC’s Vision That poor people have the opportunity to escape poverty and to improve their lives • IFC is a social enterprise, a development finance institution that fosters economic growth in developing countries through investments and advisory services • IFC demonstrates the profitability of investments in emerging markets, encouraging further investment by private sector financiers • IFC accepts substantial business risks,going where other investors are unwilling to

5. IFC’s Sustainability Policy Framework REQUIREMENTS IMPLEMENTATION Disclosure Policy Environmental and Social Review Procedure IFC - INSTITUTIONAL Sustainability Policy 8 Performance Standards • 8 Guidance Notes • Environmental, Health & Safety Guidelines • Good Practice Materials CLIENT – PROJECT LEVEL

6. Overview Performance Standards • PS 1: Social & Environmental Assessment and Management System • PS 2: Labor and Working Conditions • PS 3: Pollution Prevention and Abatement • PS 4: Community Health, Safety & Security • PS 5: Land Acquisition and Involuntary Resettlement • PS 6: Biodiversity Conservation and Sustainable Natural Resource Management • PS 7: Indigenous Peoples • PS 8: Cultural Heritage

8. Social “Flashpoints” • Land acquisition • Physical displacement • Livelihood risk • Cultural heritage • Labor Influx • Risks to public health and safety • Cost of goods & services/Inflation • Threats to community resources • Employment

9. Managing Social Risk CONSTRUCTION • Disclosure and Consultation • Documentation (who, what, where) • Community liaison • Local procurement of goods & services • Grievance redressal at the project level • Early demonstration of tangible benefits • Secure labor camps • Traffic management OPERATION • Community liasion • Participation and development, not philanthropy

10. Stakeholders: Upside

11. Stakeholders: Downside

12. Thank You www.ifc.org/sustainability