The Publisher has kindly invited me to share a NEW tool for managing conflict in sustainable development projects. “What’s different” is that the OHADAC Conflict Management Committee Rules ( see https://www.carohadac.org/services/conflict-management-committee.html?langue=en) provide for Stakeholder engagement with Owners and Contractors from a project’s inception to its’ conclusion.
The absence of stakeholder engagement has brought more than a few investment projects to sudden and expensive halts. Whether it was hydroelectric power transmission lines in North America, a wind farm project in Norway, or an extraction project in Peru, the failure of investors and states to work with affected stakeholder communities early and often has doomed or delayed projects that are, at least arguably, in the economic interests of those self-same communities. Critics of the current mega projects approach argue that a combination of self-serving, barely understandable (to Stakeholders) impact statements, short timelines for “discussion” and limited follow-up, remove a projects’ “social license to operate”. The OHADAC Conflict Management Committee Rules (“CMC Rules”) provide a different path.
The CMC Rules work with a variant of the standing dispute board, with the CMC managing both traditional owner/contractor issues as well as stakeholder grievances. The project owner and contractor each select a member of the Committee, with the CARO Centre, administrator of the CMC Rules, appointing the third, presiding member of the Committee. CARO’s remit differs from the standard, as it is charged with balancing the need for engineering, project management and ESG expertise on the CMC. CARO intends to develop a roster of experienced neutrals with those skills in mind. The CARO / OHADAC Center supported the design and drafting of the CMC Rules and hired Elise Groulx to lead the effort to build this framework; this would help better explain the name (CARO CMC RULES). Even though the CARO is based in Guadeloupe, in the Caribbean, the application and implementation of the CMC Rules are not limited to this jurisdiction and the Caribbean and can be used anywhere in the world. The type of conflicts that are targeted here include disputes on bad work practices such as poor working conditions, lack of real opportunities of advancement, sexual violence and harassment, severe income inequalities, security issues, conflict over access to land and mineral resources, non-compliance with resettlement programmes previously agreed upon, air, water and land pollution as well as toxic wastes.
The CMC Rules provide that the CMC should be in place before project commencement, and should be provided with any impact statements and other information necessary to assist the CMC in fulfilling its’ mission. The first order of business for the CMC is to convene one or more organisational meetings. What differs from the traditional dispute board model is the attention given to stakeholders, as the organisational meeting agenda includes the development of a stakeholder engagement plan. That plan provides a way forward for both contracting parties and stakeholders, with commitments monitored by the CMC, and a grievance process provided for.
Whether presented with an issue between the Owner and Contractor, or one involving Stakeholders, the CMC’s procedural approach is similar. Active dialogue comes first, and can continue right up to the time when, as its’ last means of motivating settlement, the CMC may issue written, non-binding recommendations. Where settlement doesn’t occur after a CMC recommendation is issued, the CMC Rules provide for mediation as a last resort.
The drafters believe that the OHADAC Conflict Management Committee Rules can be effectively utilised in a wide variety of project settings, including energy and renewable energy (wind, solar, hydro-electric), infrastructure, extraction, deforestation, and mega-construction projects such as sports facilities.
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