Provincial Investment Monitoring in Lao PDR Poverty- Environment Initiative (PEI ), April 2011 Monitoring as a key investment management activity.

Provincial Investment Monitoring in Lao PDR

Poverty-Environment

Initiative (PEI), April 2011

Monitoring as a key investment management activity

Approved Investments

Monitoring Basic Impact/risk monitoring

Compliance monitoring

Investment data collection

Scope of PEI monitoring framework

Interdepartmental monitoring activity:

• Planning and Investment (DPI)

• Industry & Commerce

• Agriculture and Forestry (PAFO)

• Water Resource s and Environment (WREO)

• Land Management (NLMO)

• Labor and Wellfare

Scope of PEI monitoring framework

Approved Investments

Monitoring

social impacts

environmental impacts

economic impacts

Types of monitoring and data: investment data

Investment data collection

(e.g. name of company, type of business, local jobs created, tax revenues generated)

Compliance monitoring

(does the company follow the concession, IEE/ESIA or other contractual agreements)

Agreements contain measures to protect communities and the environment

Agreements often build on lessons learnt and intend to avoid bad impact that has happened before.

Types of monitoring and data: compliance

Impact/risk monitoring

(are impacts/risks on the environment and the local people notable)

Poor people strongly rely on the environment since natural resources remain an important source of livelihood.

Health of the environment links to the well being of local people.

Types of monitoring and data: impacts and risks

Possible consequences for economic development:

A continuing degradation of natural resources can also impede economic development of the province.

main investment sectors depend on the natural resource base.

Dependence on natural resource base

General Information Company information name, address, licences, type of business, concession size, ESIA/IEE

Project location address, GPS, proximity to communities

Investment data Financial data capital, revenues, expenses

Taxes different types of taxes, tax exemptions

Social Employment domestic, international, female staff on different levels.

Training/knowledge transfer staff training provided

Working conditions average salaries, leave regulations, availability of contracts, social security

Health and security safety and health protection, accidents, access to water and sanitation, HIV or drug abuse prevention

Types of data

Types of data

Community Contribution to community (infrastructure, training), community issues (concession boundary encroachment, food security)

Environment Resources water usage, energy sources, green technologies

Land productive area, boundaries, forest/wetland clearings, clearing or displacement of agricultural land

Soil signs of erosion

Water signs of bad water quality, wastewater facilities, distances between areas with use of chemicals to water bodies

Air Dust, burning, air pollution control

Biodiversity protected areas, signs of illegal hunting, wildlife as main resource

Waste disposal of oil, chemicals or medical waste, rubbish management, sewage disposal

Risk storage and handling of hazardous materials

Compliance check compliance check against a project specific list of all agreementsCompensationsOther agreements

Types of data

Constraints of the monitoring

• Does not cover impact monitoring where specific equipment for analysis is needed

• Can only assess basic social and environmental impacts, without specific reference to regulatory standards.

• Covers mostly indicators that can be assessed on a one-time spot check (some questions need to be asked to the community to assess past and current situations)

Data-base

Investments

Law Concession

IEE/ESIA

Monitoring

Development plans and priorities

social impacts

environmental impacts

economic impacts

assumptions, actions

changing conditions

Learning, adaptation

immediate action

Analysis/reporting

Data entry

Investment monitoring data and support for investment decisions

Investment Management Cycle

Identify criteria for quality investments

Investment promotion, calling list

Evaluation of investment applications, incl. ESIA

Contract negotiations and approval

Monitoring

Enforcement of relevant laws and agreements

Data analysis

Learning, adaptation

Support for investment decisions

What is the contribution of monitoring data to sustainable management of investments?

1. Identification of sustainable investments monitoring can show that some sectors or

management standards may have less social and environmental impacts than others

Help to focus on good quality investments and to promote them specifically – what types of management and social responsibility standards create quality?

2. Identification of shortcomings in investments to inform better management

Example: the monitoring can show that investors are not providing adequate protective equipment for staff or that they are not complying with contract/concession agreements.

This information can lead to changes in investment management (new conditions for investors)

Support for investment decisions

3. Assessment if investments are effectively contributing to strategies and plans

Contribute important data towards Monitoring & Evaluation requirements at the Central level to assess progress and achievements of the NSEDP

Over time this data contributes to evaluation of provincial investment strategies and development goals

Support for investment decisions

Monitoring data for Investment planning

?Which types of investments have proved to:

• have generated added value to local socio-economic development

• to be also environmentally sustainable

Monitoring data for Investment planning

Monitoring data contributes to effective management of investments

and supports identification of quality investments

Preparation

Pre-monitoring protocol:• What actions do you need to take before going to

do the monitoring? (i.e. announcement, authorization)

• What do you need to bring with you?• Preparation for compliance monitoring

you need to know the investor agreements put together project specific list of agreements

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5 steps of investment monitoring

5 steps of investment monitoring

Monitoring / site visit

• Project data collection• Compliance check• Impact and risk assessment• Talk to community members

Different team members have different areas of expertise

Monitoring supports the mandate of the different departments

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5 steps of investment monitoring

Follow-up and enforcement of compliance

Possible situations that should trigger action:

• non compliance• immediate threat to the environment• immediate threat to the health of people

Identify questions and tresholds in the monitoring form that will trigger action

Identify mechanism for reporting and enforcement of compliance and laws

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5 steps of investment monitoring

Data entry into database4

Make information accessible for all involved line ministries

Data analysis and reporting

Assessing data for provincial Monitoring & Evaluation and for development planning

PEI/UNDP/IPD to develop guidance to how to analyze data and assess cumulative impact of investments in the province

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5 steps of investment monitoring

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3 main goals of investment monitoring

control of compliance23 get data for reporting and data analysis

for further development planning

assessment of impacts and identification of risks

2 main benefits of monitoring for the province

Protect communities and the environment from negative impacts. 1Monitoring data contributes to effective management of investments and supports identification of sustainable investments

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