Local revenue management & social accountability around extractive industry projects in Latin America

In response to a specific request of an IFC client in the mining sector, the Enhancing Local Benefits program from the LAC Office for Advisory Services (PEP) initiated an advisory service project on revenue management and social accountability at the sub-national level in 2006. Based on the lessons derived from this pilot experience, two extractive industry-wide advisory service programs are currently under implementation in Peru and Colombia. Together the two programs aim at reaching directly around 70 municipalities that receive benefits due to revenue-sharing arrangements in both countries.

The aim of these programs is to help local communities take advantage of the extractive industry related resources they receive. The programs have been structured in a manner that allows for IFC to collaborate with several oil, gas and mining investment companies, both IFC and non-IFC clients, eager to support local revenue management improvements in their area of influence.

We would like to share the experience gained through the design and implementation of these two programs and invite you to discuss the lessons and findings and to provide us with critical feedback. In the session, we will be addressing the following questions:

• What were the main results and lessons from the pilot project?
• What are the tools developed to scale up this type of intervention? 
• What has been the role of diverse private companies like Newmont, Ecopetrol, Petrotesting and Rio Tinto on this interventions? 
• What is the cost of these interventions and how does it become sustainable? 
• Which aspects of the approach and tools developed could be of relevance for other resource rich countries in other regions? 
• How can this experience contribute to EITI implementation? 

For more information on the ELB program, please see http://www.ifc.org/ifcext/lacsmefacility.nsf/Content/ELB

To download presentation, please click here.