Session Description
Project impact assessments are focussed on construction, operations and sometimes closure, with the expectation that project – community relationships, project ownership and investment profiles will remain constant throughout. Community confidence in projects is often enhanced by owning/operating companies with strong ESG arrangements, the participation of International Finance Institutions and the relationships which develop early in project preparation. In reality, construction teams and contractors leave, projects change ownership, and the financing of projects changes. This solution room session will focus on the risks to communities when project actors change, whether due to demobilisation, or changes in ownership or lenders. Specifically, it will consider three scenarios: end of construction resulting in contractor demobilisation; planned and unplanned lender exit; and change of company ownership, with a view to capturing lessons on how these changes impact communities and their relationships with the project. Building on this, the solution room will then consider the extent to which existing safeguards including impact assessments, loan agreements, community agreements and good practice guidance, are sufficient to manage these predictable risks. The session will be hosted by three social performance specialists, who bring deep experience in lender finance, social safeguards, responsible exit and closure planning.
Session Summary
Project changes are often under-analysed through impact assessments. This session will capture lessons on community safeguarding prompted by project changes caused by changing relationships, financing or ownership, and reflect on how good practice, loan and community agreements need updating to better manage these risks.
Additional Information
This session will be jointly facilitated by 3 co-chairs: Amy Sexton (SLR); Debbie Cousins (EBRD) and Liz Wall (Shared Resources).
Session Chair
Amy Sexton
SLR
Australia
Session Co-chair
Liz Wall
Shared Resources
Australia