The document outlines findings and recommendations regarding the impacts of oil and gas operations in Myanmar, focusing on stakeholder engagement, community grievances, and human rights issues. Key findings highlight inadequate engagement practices, a lack of effective grievance mechanisms, and the need for clearer policies around land acquisitions and labor rights. The report calls for improved transparency, community participation, and adherence to international standards to enhance responsible business practices in the sector.

1. Final Version

2.  About MCRB and SWIA
 Part I: Findings
◦ Project Level Impacts
 Stakeholder Engagement, Grievance Mechanisms
& Community Livelihoods
 Land
 Labour
 Security
 Ethnic Minorities/Indigenous Peoples
 Environment
◦ Cumulative Impacts
◦ Sector-Wide Impacts
 Part II: Suggested Actions – Ideas for Recommendations to
Government, Business & Civil Society
◦ Stakeholder Engagement, Grievance Mechanisms
& Community Livelihoods
◦ Land
◦ Labour
◦ Security
◦ Ethnic Minorities/Indigenous Peoples
◦ Environment
◦ Cumulative Impacts
◦ Sector-Wide Impacts: Contracting/PSCs, EIAs and Permitting

3.  Chatham House rule: what is said here will
not be attributed
 What is said here will not be considered a
commitment
 A summary of the meeting will be produced
and included on our website, without
attribution of comments to particular
participants

4. Current core
funders:
• UK Department
for International
Development
• DANIDA (Danish
development aid)
• Norway
• Switzerland
• Netherlands
• Ireland
www.myanmar-responsiblebusiness.org
15 Shan Yeiktha Street,
Sanchaung, Yangon
Tel/Fax: 01 510069
Founders:
Objective: To provide an effective and legitimate
platform for the creation of knowledge, capacity
and dialogue concerning responsible business in
Myanmar, based on local needs and
international standards, that results in more
responsible business practices.

5. Human rights
based
Uses a human rights lens to consider project impacts
and policy & legal frameworks
Wider audience
than project
EIA/SIA/ESIA
Government and Parliamentarians, business, local
communities, civil society, and workers and trade
unions
Aims to shape
policy, law and
projects
Examine the national context, national frameworks,
the legal contracts (where available) and business
practices. Identify what actions will help shape or
impede better human rights outcomes for the sector
Information goes
into the public
domain
Project human rights impact assessments (HRIA)
(when done) are typically confidential. The rationale
behind the SWIA is to make the document a public
good, with the aim of improving practices and
outcome of business investment for the population
of Myanmar.
3 Levels of
Analysis
Looks at the impacts of the sector and to do this
uses three levels of analysis: aggregate, cumulative
and project levels

6.  The UN Guiding Principles on Business and Human Rights
(“the Guiding Principles” or “UNGP”)
 The safeguard policies of international financial institutions
(Asian Development Bank and World Bank Group), and in
particular, the IFC Performance Standards and Environmental,
Health and Safety (EHS) Guidelines (as these are specifically
designed for private sector projects).
 The OECD Guidelines on Multinational Enterprises (which
apply to companies domiciled in an OECD or MNE declaration
adherent country and operating in Myanmar)
 The UN Global Compact is based on the same core
international standards as others, but does not provide as
specific guidance so less reference is made to it.

8. 1st round of field visits: Nov-Dec 2013
A. Yenangyaung and Chauk (Magway
Division)
B. Ngape Township (Magway Division)
C. Minbu Township (Magway Division)
2nd round of field visits: Dec-Jan 2014
D. Rakhine State (Ann and Kyauk Phyu
townships
E. Shan state (Namtu and Namkham
townships)
F. Tanintharyi Division (Dawei and
Yebyu townships)

9. • Local Communities
- Women
- Seniors
- Schools
- Local vendors
- Local businesses
- Community Leaders
• Employees
• Daily Wage-earners
• Company managers
• Other local stakeholders
- Civil society groups
- Health Workers
- Local educated persons
- Media
- Politicians
- Religious Leaders
- State/ Township Authority
- Transport workers: Taxi/Trishaw/Horse cart
- Suppliers
At national level (mostly non structured discussions):
 Minister of Energy and MOGE, MOECAF
 30 meetings with local and international O&G companies
and their supply chains
At field level
295 interviews conducted – 214 individually and another 81
interviewed as part of focus group discussions
We are not attributing our findings to particular places,
companies, or individuals and we do not intend to list
specific stakeholders with whom we have engaged.

10. Communities who are potentially
affected by oil and gas operations,
covering 16 issue areas including
(but not limited to): consultation,
participation, labour, land,
environment, conflict, security,
children’s rights and women’s rights.
Managers of oil and gas companies
and its suppliers, covering issues
such as labour, health and safety and
community impacts (including issues
related to security, land
management, environmental health
and safety, ethical business practices
and customer protection).
Employees of oil and gas companies
and suppliers’ employees, which
covers issues related to working
conditions and health and safety of
workers.
External stakeholders, with
questions related to the impacts of
oil and gas operations for local or
national authorities, NGOs,
international organizations,
journalists, political parties, schools
and monasteries.

11.  HRIA is still an emerging approach globally; sector-wide
(human rights) impact assessment has been an experiment
 Limited local capacity to conduct human rights impact
assessments (HRIA)
 Focus on existing projects, rather than prospective projects.
 Varying levels of cooperation locally from companies and
authorities.
 Limited research time, only six locations and no off-shore
visits, but still representative of the sector.
 Complex and changing national policy environment.
 Not possible to conduct worker interviews off-site in every
instance.

12.  Consultation on part of the DRAFT SWIA
◦ Final SWIA will be more extensive, include more analysis of
Myanmar context.
Indicative table of contents for the final SWIA Report;
(The March 2014 consultation draft covers the chapters in green)
 Executive Summary
 Introduction
 Sector Description
 National context
 Project level context
 Collective/Cumulative context
 Recommendations
 Annexes:
◦ Process & Methodology
◦ Land Acquisition
March 2014 Consultation Draft available at:
http://www.myanmar-
responsiblebusiness.org/news/oil-and-gas-
swia-draft-for-consultation.html

15. Project Level
Impact Summaries

16.  Key finding: Engagement is not standard practice; mostly
absent or inadequate
◦ Communities not informed about forthcoming projects at all
or informed but not consulted
• ….or local authorities used as proxy for communities
◦ Little information shared, or little idea about how to get
further information or answers to questions
◦ Where once this was accepted by communities (through fear
or…), increasingly it is not
 Some good examples of on-going engagement to build on
 Communities want:
 more direct contact with the company, rather than local
authorities or MOGE
 focal points to turn to for information

17.  Key finding: Grievance mechanisms: largely absent or misunderstood
◦ In most cases, fledgling community grievance processes, with a long way to
go
◦ Little ability to access and obtain remedies
 Key finding: Frequent inability of communities to obtain compensation for
impacts to livelihoods caused by road and site construction
 Key finding: Farmers had difficulty in securing compensation or changes in
operations to address destruction or impairment of agricultural fields by waste
runoff and water use from operations.
 Key finding: Difficulty for communities to establish claim or obtain
compensation for longer-term impacts to livelihood (farmers & fishermen)
◦ Lack of baseline information makes it very difficult for communities and
companies to establish validity of claims – who gets the benefit of the doubt?
 Communities want:
◦ Grievance/complaints mechanisms that they can trust and which deliver
responses

18.  Key finding: given the limited range of unskilled labour
opportunities, particularly post construction period, there is high
local competition for unskilled labour opportunities
 Key finding: Very little local (i.e. from local villages) procurement of
goods or services was observed
 Key finding: Mixed picture on infrastructure; missed opportunities
to improve community infrastructure at the same as building
project infrastructure
 Key finding: Appreciation of health facilities where provided, but
not common; mixed picture on education
Communities want:
 Concrete sharing of benefits – particularly through longer term,
steady employment & infrastructure

19.  Key finding: Social investment programmes are a growing trend, but
not always developed appropriately - philanthropy, dictated by the
company without interaction with communities
◦Where they are done in consultation with communities, mostly
appreciated (preferred to government provision of services)
◦Risk of dependency on company provision of education, health
◦Risk that Government & companies do not see social investment as
strategic link to project but instead philanthropy
Communities want:
 Concrete sharing of benefits – particularly through longer term,
steady employment & infrastructure

20. Project Level
Impact Summaries

21.  Key finding: Land is often the most important asset for rural
communities – acquisition or damage can have long-term
impacts
◦ Widespread concern in the country about land grabs
 Key finding: Legal basis and process for voluntary and
involuntary land acquisition and use is unclear – for communities
and companies
◦ Complex and contradictory land laws that do not match reality
on the ground
 Key finding: Land acquisition processes take place with little
consultation and sometimes even less due process
◦ Lack of information provided about who is acquiring, under
what legal basis, process for acquisition, basis for
compensation
 Key finding: Lack of transparency and documentation
◦ About rates offered for land and crops, lump sums offered
with no breakdown, inconsistency in compensation
◦ Paperwork not in a language communities can understand –
and sometimes then taken away

22.  Key finding: Payments in cash without offers of in-kind land
◦ For land-based livelihoods, land compensation is preferred
option
◦ Communities often have little experience or access to banks
 Key finding: Compensation for economic displacement is
inconsistent but important
 Key finding: Conflict over lack of compensation for land in lease
areas ‘owned by the state/MOGE’
◦ also leading to inability to get registration document for farmed
land to use as collateral
 Communities want:
• Protection from acquisitions that do not involve any due
process
• Recognition of lands customarily owned or used
• Clear rules and processes for any expropriation and
involuntary resettlement, including options for land-based
compensation

23. Project Level
Impact Summaries

24.  Key finding: wide variation in respect for labour rights, often
dependent on how far down the value chain
◦ highest risk among workers in lower-skilled, lower paid, manual
labour positions working on a temporary or irregular basis
◦ workers are keen to have work so not speaking out about what can
be exploitative working conditions
 Key finding: predictable mismatches between:
◦ local employment requirements under FDI law & skill set among
Myanmar nationals
◦ demand for employment & local skill set
◦ local community perception of “local” employment and company /
legal definition
 Key finding: only nascent labour unions and lack of awareness of
labour rights
◦ With some exceptions, lack of worker-management frameworks for
engagement
 Key finding: equal employment and non-discrimination will require
pro-active attention with respect to women, ethnic minorities and
disabled

25.  Key finding: basic protections for workers (written contract,
defined working conditions, living wage …) often lacking in
sub-contractors (Myanmar & foreign)
 Key finding: wide use of recruitment agencies and directly
hired temporary workers with few protections
◦ Some recruitment agencies taking large % of fees, leaving
workers with even less than what would pass for min
wage; no contracts, making late payment
 Key findings: Rigorous control of working conditions at
operators is not consistently carried through to business
partners
 Communities & workers want:
• Concrete sharing of benefits – particularly through longer term,
steady employment
• Information about their labour rights
• Basic protections – like written contracts, information about benefits
owed, overtime worked

26. Security
Project Level
Impact Summaries

27.  Key finding: No concerns expressed about company security
guards; only ordinary incidents recounted
◦ Many companies make a point of hiring security guards
from the local community but also contracting out through
third party providers
 Key finding: Tensions with Oil Field Area police but around
accusations of theft rather than abuse
 Key finding: No concerns expressed directly about military,
but this needs to be put in context
◦ Communities still expressing fear of complaining directly
about military

28.  Key finding: Given the increasing freedom of expression in
the country (though noting continuing concerns of detention
of protestors) there is a potential for increased protests
around O&G projects, for which local authorities and
companies may be unprepared.
 Key finding: Concerns expressed by women due to large
numbers of male workers in areas of project, concern focused
on “foreign” men
 Key finding: Impacts of closure of marine areas for security
purposes on fishing communities
 Communities want
• To be able to express themselves without fear about
incoming or on-going projects
• Basic feeling of security – without seemingly random
“requests” or actions from security forces

29. Ethnic Minorities /
Indigenous Peoples
Project Level
Impact Summaries

30.  Key finding: Ethnic identity is an important dynamic in
Myanmar society that will play out in many ways in relation
to extractive sector policy and projects
 Key finding: There is increasing attention to the
application of indigenous peoples rights in relation to
extractive sector projects in Myanmar
 Key finding: Ethnic minority groups are among some of the
most at risk in Myanmar, with potential to be
disproportionately affected by O&G projects.
 Key finding: There has been little consultation, much less
deeper engagement that could be considered free, prior
and informed consent, with ethnic minority groups

31. Environment
Project Level
Impact Summaries

32.  Key findings: Mixed picture on resolving and addressing damage
caused by construction or project activity.
◦ Issues were left to linger for months unaddressed, causing
frustration and tension
 Key finding: Impacts on crops even outside 50ft cordon zone, e.g.
erosion, water flow blocked by pipeline, leakage or seepage from
wells with varying compensation
 Key findings: Communities lack information on environmental
impacts of O&G operations and the potential consequences for
human health, food production and livelihoods.
◦ They perceive adverse effects but often are not getting relevant
information or explanations
 Key findings: a general decrease in fish available to local fishermen
in their traditional fishing grounds, associated with the arrival of
O&G operations and associated infrastructure
◦ Neither the local communities nor (apparently) the companies
operating in the area have any baseline data on fishing
populations as a basis for verifying impacts.

34. Key finding: Institutional Overload Key finding: Social
• of local/regional capacity to
effectively consider EIA and
monitor EMP, especially for
managing cumulative impacts
• of existing social services due to
a rapid influx of people seeking
work (e.g. childcare, healthcare
and education)
• of labour inspection capacity to
deal with multiple operators,
especially for offshore
• of local ports resulting in
displacement of local fishermen,
disruption of humanitarian
operations
• Overloading the labour market,
increasing competition for
workers, attracting workers from
less-well paid but important
government services
• Competition for workers drives
up wages and inflation
• Successive construction in the
same areas repeatedly disrupts
the same communities
• Successive land acquisitions
within an area rapidly diminishes
land available for local
populations.
• Influx of predominantly male
workers attracts sex workers,
exploitation of at risk groups and
potential increase in crime

35. Key finding: Environmental Key finding: Procedural
• Increases in pollutant concentrations
in local water/ soil/sediments, or
their bioaccumulation
• Reduced water quality (e.g. pollution
discharge into rivers) and water
quantity from multiple users all
taking a modest amount of water
• Traffic congestion, road degradation
and increased dust from multiple
projects
• Reduced fish catch/marine mammals
disrupted from increased boat traffic
for offshore (noise, congestion,
pollution)
• Increases in pollutant concentrations
in offshore areas due to offshore
operations (tanker discharges,
discharges from operations)
• Consultation overload of local
communities if EIA consultations
all done at once, causing fatigue
and confusion. Offshore
projects should be subject to
joint EIAs. Depending on how
close together onshore projects
are, may need coordinated
impact assessment approach.
• Wasted resources of having
numerous EIAs looking at the
same areas but without
considering the cumulative
impacts of their operations.
Joint EIAs would avoid this.

37. Positive
Gas revenues = largest source of foreign income for
Government, with a peak of 6.5 % of GDP projected in
2014/15
Will prompt the further development of a small, but highly
skilled workforce
Future gas discoveries earmarked for domestic use to
address widespread electricity shortages
Potential to spread improved standards and practices in
many areas if international operators apply international
standards in their own operations, require of their sub-
contractors
SE
Sector Wide Impacts:

38. Negative Mitigation?
Weak / absent legal and regulatory framework with strong
potential to lead to externalisation of environmental &
social costs on Myanmar society
References to appropriate international
standards in regulatory and contracting
framework
Overreliance on one sector / Dutch disease at a time
when there is a recognised need to diversify and
strengthen agriculture & manufacturing
Donor support to agriculture,
manufacturing, revising tax structure
Potential to exacerbate corruption already prevalent in the
country
Oil for Development Programme
EITI, new anti-corruption law
New access to resources attracts significant investors with
an interest in maintaining business as usual, undermining
move towards more transparent governance
Transparent bidding & contracting
processes, requirement to register
beneficial ownership, full EITI
implementation
Long-running conflicts between Union government and
several ethnic states reignite over failure to agree on
sharing of revenues; and/or lack of revenue sharing with
States/Divisions leads to continuing tensions and
conflicts over access to benefits from extractive projects
Negotiations on constitutional changes
Peace Process
Ineffective local employment, local contracting and social
investments exacerbates tensions with community over
access to benefits
Strong local employment and local
contracting
Clear agreements with communities
Sector-Wide Impacts

39. 1.On a sector-wide basis (rather than a project-specific basis)…
 Do these findings sound appropriate?
 Have we missed key issues?
 Have we misdiagnosed?
2.What are the key recommendations you would suggest – for the
Government and for companies operating in the sector and
other stakeholders?
 Why change current law and practice?
 Who needs to act on those recommendations?
 How should law and practice change – including by reference to
relevant international standards & good practice? Have we got the
right standards – additions or comments on relevance?
 What other initiatives are relevant to achieving better outcomes in
the O&G sector that could be linked to or built on?

40. PART II

42. To ensure that individuals and communities
are able to voice their concerns without fear
of punishment or retribution
To strengthen access to, and efficiency of,
options for remedies for project affected
people
To build social investment programmes with
communities rather than for them that help
provide benefits to offset impacts
To balance adverse impacts with benefits,
short and long-term

43. Relevant International Standards
 IFC Performance Standard 1 – Assessment and Management of Environmental and Social
Risks and Impacts
 IFC Performance Standard 4 – Community Health, Safety and Security
 IFC Performance Standard 5 – Land Acquisition and Involuntary Resettlement
 UN Guiding Principles on Business and Human Rights (especially principles 29-31).
Good Practice
 IPIECA, Human rights due diligence process: a practical guide to implementation for oil
and gas companies
 IPIECA “Community Engagement”
 European Commission, Oil & Gas Sector Guide on Implementing the UN Guiding
Principles;
 IFC Stakeholder Engagement: A Good Practice Handbook for Companies Doing Business
in Emerging Markets”
 IPIECA Guide on Local Content
 IIED’s Shared Value, Shared Responsibility on opportunities in the extractive sector’s
complex supply chains
 EI Sourcebook, Good Practice Note on Community Development Agreements
 Other?

44.  Proactively invest time and patience in ongoing and
meaningful engagement with communities
throughout the project cycle, in accordance with
industry best practice and international standards
 This is necessary in view of distrust of the Government,
MOGE and business, and most communities’ lack of
experience in working with companies
 Build on opportunities of the forthcoming EIA
Procedure to incorporate international good
practices on consultation
 Clear agreement with MOECAF, MOGE, local government,
and companies about who has responsibility for what
aspect of the EIA consultations and how they are made
transparent

45.  “One-stop shop” for all issues concerning a project - for info,
grievances, emergencies
 whether concern is about sub-contractors, third party providers, other
companies working on the project
 Develop operational level grievance mechanisms that provide
accessible, effective processes to address and resolve
concerns
 Develop social investment programmes with communities
that are built on work plans, budgets, mutual accountability
 Use the opportunity of social investment programmes to develop
much more systematic planning of quality project infrastructure
 Promote small business and entrepreneurship programmes to
improve ability of local business to provide goods & services

46.  Mercy Corps work on Inclusive Natural Resource Management
(USAID)
 World Bank Community Driven Development programme
 Action Aid Fellows programme?
 PACT programmes on livelihoods and microfinance?
 Other iNGO work on livelihoods and community development
SMEs and business strengthening
 ILO programme on entrepreneurship support, using the
Sustaining Competitive and Responsible Enterprises (SCORE)
and Start and Improve Your Business (SIYB)
 ADB programme on Skills Development for Inclusive Growth;
 Building Markets
 Advancement and Development through Entrepreneurship
Programs and Training ADEPT programme

47. Land

48.  Longer term: Improve protection of land
owners and users (with both formal and
customary title) while providing more
certainty for business access and use
 Shorter term: Ensure that land acquisition
processes follow international standards
 Avoid exacerbating conflict or unresolved
legacy issues

49. Relevant International Standards
FAO Voluntary Guidelines on the Responsible Governance of
Tenure of Land, Fisheries and Forests
IFC Performance Standard 1 on Assessment and Management of
Environmental and Social Risks and Impacts
IFC Performance Standard 5 on Land Acquisition and Involuntary
Resettlement
 OHCHR, Basic Principles and Guidelines on Development-based
Evictions and Displacement
 FAO Guidelines on Compulsory Acquisition of Land and Compensation
Good Practice
◦ IFC, Handbook for Preparing a Resettlement Action Plan
 ADB, Handbook on Resettlement, A Guide to Good Practice
 Others?

50.  Establish clarity for O&G companies and communities around
process and legal basis for:
 designating oil field areas & areas covered by bids,
 processes for voluntary and involuntary land acquisition by the
government and O&G companies inside and outside those areas,
 rules and compensation rates for land, housing, crops, other
assets and for access to assets
 Apply international standards for EIA and involuntary acquisition
and resettlement until the land law and policy framework is
clarified and improved.
 This will help to ensure that rights are protected and basic due
process steps are followed
 Provide for access to judicial review for land claims
 Develop clear laws with defined limits on expropriation

51.  Carry out enhanced due diligence, with particular attention to
legacy and potential conflict issues, as access to land and
natural resources for carrying out extractive operations has
often been a source of conflict
 When land is expropriated, compensate for both physical and
economic displacement, preferably with alternative land
 Improve transparency in the management of land
compensation and resettlement processes to reduce
opportunities for corruption, make sure payments get to right
persons
 EIAs for O&G projects should identify options to minimise
land acquisition and use, and explore other options, such as
leasing land, and provide for return of any unused land

52.  Land Core Group
 ILO Forced Labour Complaint Mechanism
 Others?

53. Labour

54.  Ensure that forthcoming labour law and practice
is in line with the ILO Core Labour Standards
 Ensure that international health & safety
standards are applied
 Protect workers from exploitation in the supply
chain, including temporary & migrant workers
 Maximise the employment benefits of a growing
O&G sector

55. Relevant International Standards
ILO Declaration on Fundamental Rights and Principles at Work
IFC Performance Standard 2 – Labour and Working Conditions
 IFC Environmental, Health and Safety Guidelines for Offshore
Oil & Gas Development and Onshore Oil & Gas Development
(as appropriate); see also for contractors not providing
technical support: IFC General EHS Guidelines
Good Practice
 IFC/EBRD: Good Practice Note: Workers’ accommodation:
processes and standards
 Other?

56.  Apply relevant international standards in onshore and
offshore operations, in the absence of updated national
standards on health & safety in the O&G sector
• Many Myanmar labour laws are being updated.
International standards provide a solid basis for sound
worker-management relationships that respect the rights of
workers
• Given the vulnerability of temporary and migrant workers,
pay particular attention to the contract conditions for these
workers when engaging them directly or through business
partners supplying or using temporary workers, applying
international standards as part of the contractual
agreement.
 Provide an operational level grievance mechanism for workers
and their organisations to raise workplace concerns
 Develop a long-term education and wider skills upgrading
programme, but start early

57.  ILO programme on providing advice on labour
legislation and labour market governance.
 Comprehensive Education Sector Review (CESR)
technical and vocational education and training
(TVET) sector group
 GIZ TVET programmes
 ILO Decent Work Programme and work on forced
labour
 Other?

58. Security

59.  To ensure that human rights standards are
applied to all security – public & private,
backed up by appropriate training and
guidance
 To ensure that individuals and communities
are able to voice their concerns without fear
of punishment or retribution
 To reduce fear of public security forces

60. Relevant International Standards
 Voluntary Principles on Security and Human Rights
 IFC Performance Standard 4: Community Health, Safety and
Security
 International Code of Conduct for Private Security Service
Providers
Good Practice:
 Voluntary Principles Implementation Guidance Tools

61.  Adopt a conflict sensitive approach and carry out enhanced
due diligence to understand the high risk operating
environment, with a particular focus on
legacies for communities around land, conflict and distrust
of the authorities
inter-ethnic and inter-communal tensions, particularly in
Rakhine state
 Build trust and mutual understanding between local
authorities, companies and communities by jointly discussing
issues relating to security concerns
 Be prepared to respond to community, civil society concerns,
demonstrations in a manner that respects freedom of
expression and assembly

62.  Build on existing good practice and Myanmar security sector
reform and draw on international initiatives such as the Voluntary
Principles on Security and Human Rights, with a particular focus
on
 improving human rights awareness by public and private sector
security forces involved with O&G projects
 establishing pre-emptive contacts with local authorities,
including the police, to discuss security assessments and
appropriate human rights-sensitive responses
 carrying out careful due diligence on security companies
including those used by sub-contractors
 prioritizing members of local communities for security jobs &
ensure decent work conditions
 Consider joint approach to Government to support further
training of security forces
 Revise Oil Field Areas (OFA) security measures (Article 144) that
affect freedom of movement, livelihoods and other human rights

63.  EU Crowd Management Training of Myanmar
Police Force

64. Ethnic Minorities/
Indigenous
Peoples

65. There is a need to recognise the cultural
and other specificities of indigenous
peoples/ethnic minority groups and adopt
special measures to safeguard them in the
context of O&G operations
There is a need to be sensitive and
responsive to the prevalent view in the
ethnic states/self-administered areas that
they see very little benefit from O&G
extraction in their areas

66. Relevant International Standards
 UN Declaration on the Rights of Indigenous Peoples
 IFC Performance Standard 7 on Indigenous Peoples
Other Guidance
UN Special Rapporteur on Indigenous Peoples, Extractive
Industries and Indigenous Peoples, 2013
IPIECA, Indigenous Peoples and the oil and gas industry:
context, issues and emerging good practice
Global Compact, Business Reference Guide to the UN
Declaration on Indigenous Peoples
Others?

67.  Wherever possible, engage directly with ethnic
groups, seeking their free, prior and informed
consent, while being careful not to undermine or
contradict on-going peace processes
 Build on the current discussions on
Constitutional change to explore effective
options for revenue sharing between the Union
government and States/Divisions
 At the project level, seek to develop specific
agreements with ethnic minority groups
impacted by the project

68.  Spectrum and Oxfam work on FPIC?
 Mercy Corps work on Inclusive Natural
Resource Management (USAID)
 Peace Nexus, Karen State?
 Others?

69. Environment

70.  To address current gaps in the legal framework of
environmental controls and bring them in line with
international standards
 To build corresponding government capacity
 To ensure that there is a contractual requirement
for environmental compliance that provides a basis
for liability for environmental damage

71. Relevant International Standards
 IFC Performance Standard 3: Resource
Efficiency and Pollution Prevention
 IFC Performance Standard 4: Community
Health, Safety and Security
 IFC Performance Standard 6: Biodiversity
Conservation and Sustainable Management of
Living Resources
 World Bank Group Environmental, Health and Safety
Guidelines for Offshore Oil & Gas Development and
Onshore Oil & Gas Development

72.  Require O&G operations to operate to international
standards (including IFC Performance Standards),
including through contractual requirements
 Require a new or updated E(S)IA and EMP as operations
evolve
 There is currently a lack of clarity as to whether there is only one
requirement for an ESIA at the beginning of the PSC
 The EIA/ESIA requires a robust focus on social issues, including
human rights
 Provide a focal point for information about operations
and inform local communities of emergency planning
procedures
 Carry out joint environmental monitoring between
companies & communities, as a way of building
community confidence and competence in
understanding the potential impacts of O&G operations

73.  Total/Wildlife Conservation Society/Forestry
Department partnership
 NGOs working on water and sanitation
projects (WASH)
 Other?

75. To ensure that forthcoming EIA Regulations
and Procedures address cumulative impacts
and that there is the capacity to assess and
manage cumulative impacts
To ensure appropriate planning of relevant
public services at a regional level

76. Good Practice
IFC, Good Practice Handbook on Good Practice
Handbook, Cumulative Impact Assessment and
Management: Guidance for the Private Sector in
Emerging Markets (2013)
OHCHR, Cumulative Human Rights Impacts –
Discussion Document
Global Compact, Human Rights and Business
Dilemma Forum, Cumulative Impacts
Other?

77.  Build on processes and (good and bad) lessons learned for SEZ in vicinity
of existing or planned O&G operations
 A specific exchange of project-level EIAs in a targeted area to identify
key concerns highlighted across the EIAs that would be a start in
identifying potential cumulative impacts
 Commission joint baseline studies in key areas where there will be
multiple O&G activities, such as offshore seismic activities
 Agree to a coordinated, joint approach to consultation with relevant
stakeholders to avoid repeating consultations with the same
stakeholders
 Joint agreement on a coordinated response to the cumulative impacts of
highest concern to stakeholders
 Develop a collaborative (and collaboratively funded) social investment
programme that responds to the cumulative impacts of highest concern
to stakeholders
 Collaboration on use of training budget (identified in PSC) to build
longer-term training programme with wider set of Gov officials, beyond
MOGE – including for regional/local officials who must manage collective
impacts

78.  Work on National Energy Policy – does this
consider cumulative impacts?
 Work on regional governance and
development plans, capacity-strengthening
for local government?
 Work on ESIAs that will also focus on
cumulative impacts (ADB, others?)
 International Alert programme on building
peace in Kyaukphyu SEZ

80.  Build requirements for responsible
investment into approval processes for O&G
projects
 Use existing international standards
 Improve transparency

81. Relevant International Standards
IFC Performance Standards
Extractive Industries Transparency Initiative (EITI) 2013
Standard
IFC Policy on Environmental and Social Sustainability,
2011, clauses 50-52 on contract transparency for
extractive projects
UN Convention against Corruption
Good Practice
IPIECA Guide on Local Content
IIED’s Shared Value, Shared Responsibility
Other?

82. Bidding & tendering:
 Use the process of registration of qualified providers and the
process of approval by Myanmar Investment Commission to
require information on policies and management systems for
environmental, social, human rights, health & safety,
community engagement
 provide more transparency around award of licenses, beneficial
ownership and contract transparency in line with EITI
requirements
Environmental Impact Assessment (EIA)
 Ensure that the Environmental Impact Assessment (EIA)
Procedure clearly includes social and human rights issues
 Ensure that companies have the time to conduct effective
consultation, and at appropriate stages in the project cycle
Myanmar Investment Commission License
 Ensure that relevant clauses (as recommended below for
inclusion in the PSC) are reflected in the MIC license

83. Reference international Standards
Require compliance with recognised and identified international
standards on environmental and social performance as part of the PSC
(IFC Performance Standards and EHS Guidelines) (clause 17.2 e and 17.2
ee).
Include clear allocation of responsibility and assignment of liability for
environmental and social impacts (clause 17.2 w))
Include references to specific international standards on EIAs and
ensure that social issues are covered in the EMP (clause 17.2 (bb))
Local Content / Employment
Require compliance with international standards when employing
(section 15 & 17.2 u))
Revise the local content provisions to provide for more specificity
(clause 17.2 o))
Exclude strikes from the definition of force majeure (clause 20.2)
Strengthen Social Investment provisions
Revise the “CSR” requirements of the PSC, requiring a social
investment programme within the Work Programme and budget (clause
17.2 dd)) but without a predetermined target spend.
Remedy
Require companies to put operational level grievance mechanisms in
place

84. Transparency
 Clarify that the contract will be made public and is not subject to the
secrecy provisions (clause 27.5)
 Strengthen the anti-bribery and corruption provisions in accordance
with the newly adopted law on anti-bribery and corruption (for
example modifying 17.2 q)
 Add provisions on monitoring & reporting on environmental, social and
human rights issues
Arbitration
 Exclude future changes in the social and environmental legal
framework from coverage under the stabilisation clause (clause 27.7)
 Require that all arbitration hearings and decisions are open to the
public, decisions are made publicly available and third party
interventions will be permitted (clause 22.2).
Capacity Building
 Permit the training funds to be spent on a wider group of government
departments involved with Petroleum Operations (clause 15.2)

85.  Myanmar EITI
 US Commercial Law Development Program
(Department of Commerce)
 Norwegian Oil for Development programme
in Myanmar
 Others?

86.  Summary of the meetings on MCRB website (Chatham House rule)
 Revision of impact summary drafts (if necessary) and update of slidepack with suggested
actions following consultations
 Deadline for written comments (in English or Burmese) to Thithi.thein@myanmar-
responsiblebusiness.org/info.mcrb@gmail.com with a subject line of “O&G SWIA
Consultation Draft Feedback” by 30 April 2014. These will be posted on the MCRB
website with each commentator’s submitted name and organisation unless you tell us
that you do not want your comments posted on our website.
 Additional information on linked initiatives is also welcome by the same timeframe.
 Submission of these documents to government for discussion
 Completion of additional chapters
 Publication on MCRB website
 Multistakeholder discussions on areas for action