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Esso Highlands Limited

Papua New Guinea LNG Project Community Support Strategy Attachment 1 Community Support Strategy Action Plan PGGP-EH-SPENV-000018-029

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CONTENTS 1.0 INTRODUCTION ........................................................................................................... 4 2.0 COMMUNITY SUPPORT STRATEGY ACTION PLAN .................................................. 5 2.1 2.2 3.1 3.2 3.3 3.4 3.5 3.6 Strategic Framework.............................................................................................. 5 Action Plan Components ....................................................................................... 9 Community Development Support Plan ............................................................... 10 National Content Plan.......................................................................................... 10 Resettlement Framework..................................................................................... 10 Contractor Management Plans ............................................................................ 11 Stakeholder Engagement Plan ............................................................................ 11 Community Health, Safety and Security Plan ...................................................... 11

3.0 Company Social Management Plans ........................................................................... 10

4.0 Roles and Responsibilities ........................................................................................... 12 5.0 Supporting Research ................................................................................................... 13 6.0 Implementation Summary ............................................................................................ 14 7.0 Monitoring and Evaluation Plan.................................................................................... 20 8.0 Reporting ..................................................................................................................... 24

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ACRONYMS BDG CDSP CGP CHSSMP CIP CSS CSSAP EPC ESMP HIIP IDG IFC ILG LBD LLG LNG MTDP OGA PALO PG PIIM PNG RAP RPF SCI SEP Business Development Grants Community Development Support Plan Community Grievance Procedure Community Health, Safety and Security Management Plan Contractor Implementation Plan Community Support Strategy Community Support Strategy Action Plan Engineer and Procure Contract Environmental and Social Management Plan (Construction) High Impact Infrastructure Projects Infrastructure Development Grants International Finance Corporation Incorporated Landowner groups Local Business Development Local Level Government Liquefied Natural Gas Medium Term Development Plan Oil and Gas Act Project Area Landowner Provincial Government Project Induced In-migration Papua New Guinea Resettlement Action Plan Resettlement Policy Framework Strategic Community Investment Stakeholder Engagement Plan

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1.0

INTRODUCTION

The Papua New Guinea (PNG) Liquefied Natural Gas (LNG) Project (the Project) is an integrated development that includes gas production and processing facilities in the Southern Highlands and Western Provinces of PNG, including liquefaction and storage facilities with capacity of 6.6 million tons per year. Over the life of the Project, it is expected that over nine trillion cubic feet of gas will be produced and sold, and the investment for the initial phase of the Project, excluding shipping costs, is estimated at US$15 billion. Unlocking value from the extensive gas resources of the Southern Highlands region has the potential to benefit PNG communities by: Transforming the economy of PNG; Boosting Gross Domestic Product and export earnings; Provide a major increase in government revenue and royalty payments to landowners; Creating employment opportunities during construction and operations; and Providing a catalyst to further gas-based industry development.

It is anticipated that the Projects benefits will spread throughout PNGs economy as the government applies earnings from its share of Project revenues to social and economic programs. These programs have the potential to improve the quality of life of Papua New Guineans by reinforcing essential services and enhancing the countrys productivity. Benefits will also flow through the economy as the wages of Project staff are spent and as suppliers provide a range of goods and services to the Project. Landowners stand to gain from Project royalties and equity dividends through the Benefit Sharing Agreements as defined in the Oil and Gas Act (1998) and from improved social and economic infrastructure. The Project has developed a Community Support Strategy (CSS) with the purpose of: mitigating impacts that may contribute to community tension and conflict, promoting the development of conditions conducive to enhancing the livelihoods of communities in the Project Impact Area. More specifically the CSS describes how the Project intends to develop and implement a range of community-focused initiatives that will promote the development of conditions conducive to establishing and maintaining a stable operating environment and in doing so, mitigate business risk. Consistent with ESMP preparations for the Operations Phase, the CSS and its associated plans will be revised to reflect actions needed during operations. This Community Support Strategy Action Plan (CSSAP) follows on from the CSS by outlining the Strategic Framework for community support, and summarising the roles, responsibilities and timelines of implementation activities, as described in the social management plans which support the CSS.

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2.0 2.1

COMMUNITY SUPPORT STRATEGY ACTION PLAN Strategic Framework

The CSSAP Strategic Framework aligns the strategic actions of the Project with the development priorities of local communities, civil society and government. A key element is the flow and distribution of Project-related benefits to enable the creation of shared benefits. The Strategic Framework recognizes that, the project will complement and reinforce these benefit flows in traditional ways such as employment, creation of new supply chains, procurement of services, payment of taxes, etc. The Project also has the opportunity to create shared value by applying its business competencies within the context of local communities priorities, including capacity building, livelihood development, skills transfer, and local business development (Figure 2.1).

Figure 2.1: Strategic Framework Based on Shared Benefits

The Strategic Framework guides the design of individual approaches differing in forward execution based on geographic context and Project phase. (Figure 2.2). This is the essence of the Strategic Framework, and is addressed in individual plans.

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Are a s of gre a te st pote nt i a l im p a c tdu e to a c ti v itie s a nd dura ti o n of c ons tr u c ti o n a nd ope ra i ton s

P a l nt S t ie

2009-2014
th ro u g h to o p e ra t io ns Ko m o Ai f ri e ld HGCP He a v y Ha ul R oa d We l l Pa ds Qu a rri e s Ro a d s Re s e ttl em ent Tra ff ic an d Co n s tr u cti o n ac t i vi ti e s w i th inc o mm un i ti es Du s t & No s i e Di s ru p ti onof w a te rs u pp lie s and o th e r s o ci a l a c ti v it ie s In -m iga r ti on In c e r a s edc a sh e co no my M ag r in alz i e dc o mm unt i y g ro up s In fl a ti o n o fg o o ds an ds ev r c i e s

2009-2012
Cl e a i rn g , d igg in g a ndla y in g o f p ipe lin e So u t h e rn L o gs i ti c s Ro u te Lin kn i g n i t o e xs i ti n g fa c ii l ti e s a t Go be Ba rg n i gac ti v i ti e s i n th e Om a ti De t la

2011-2012
Offs h o re p p i ei lne Co m m un i ti es m i pa ct s a t lan d fa lls it e s a t Pl a nt Si te a n d Om a ti D elt a ony l

2009-2014
th ro u g h to o p e ra t io ns L NG Fa c il it y i nc l ud ing j e tt y a n d o ff sh o re l o adi ng te rm ina l

Pro je ct Ac tivitie s

Po ten tial Pro je ct Imp acts

Tra n s ie n ti m pa c t d u ri ngc e l ai rn g , tr en c hn i gan d lay in g o fp p i e - n o a re a m i p ac te d fo rl o ng er t hen 6 -8 m on th s Lim i te d m i p ac t o nc o mm unt iie s wi th s o me tra n s ie n t e co n om ic ds i ru p ti onandlm i t ied dis pa l ce m ent In -m iga r ti on t o e co no mc i a ndlo gs i ti c s ta t io ns su c has k k i oi r, f u rt h e ri n c re a se d t h ro ughop en ing of o l gs i t ic s ro u te s In c e r a s edpe r ss u e r o n sta t io ns s u c ha s ki ko ri to p ro v id e s o ci a l a n d o th e rs e v r c i e s In c e r a s e d tra ffi c o n O m at i De t l a Wa t e rwa ys re s u l ti nginds i ru p ti onof i lv ei lho o d a cti v i ti es s u ch as f i sh n i g Lim i te d p e ri o d o fi n c re a se dc a s h -f l o wi n t he co mm unt iie s Co m p en s at io n fo r d is u r pt i o n o fe c on om ic ac t i vi ti e s an d lm i t ie d re s e tl e me nt De v e lop m e n t o fk e y U m be r la l L an c os t o und e rta k e wo k r fo ra l m i it edpei ro d o f ti m eas pip eln i eis la id t h ro ug h th e i ra re a Co m m un it y c ap ac i ty b u id l in g a ndde ve lop me n to f p a rt nes r hp i s Fo c us oned uc a ti o n , cu l t u re a n d o l ca l e c on om ic De v e lop m e n t Ac t i vi ti e s fo rc o m m un it y dev eo l p m en t Su p p o rt a n d e nha n ce e xs i ti nga c ti v it ie s pe r v iou sy l und e rta ke n b y OS L

Tra n s ie n ti m pa ct t o co mm unt iie s lm i it ed t o Lan d fa ll, O ma ti De l ta and C aut io n Ba y Tra n s ie n td s i ru p ti onof fi sh i n g n i t he O m at i De l ta a n d Ca u ti o n Ba y Te m poa r ry d s i ru p ti onof mo ve m en t o n wa te rwa y s a t Om a ti

Tra ff ic an d co n s tr uc t ion ac t i vi ti e s Te m poa r ry d u s t an d n oi se polut ion Te m poa r ry d i s ru p ti onof wa te rs u ppl ie s a n d o th er so c ia l a c ti vi ti e s In -m iga r ti on In c e r a s edc a sh e co no my M ag r in ali ze dc o mm uni ty g ro u ps In fl a ti o n o fg o o ds an d s ev r i ce s Di s ru p ti onof f i sh i ng ac t i vi ti e s du e to n o -g o z on es Bu s i ne s s an d L ANCO dev el op m en t t o i nc e r a se ec o no mi c b en e fi t to co mm uni ti e s Wo rk fo c r ede v el op me nt a n d tra i ni ng Co m m un it y c ap ac i ty bui ldi ngan d d ev elo pm ent of p a rtn e rsh i ps In c e r a s eds o ci a l re s il ie n ce th ro u g h co m mu nit y h ea l th , edu c at io n a n d o th e rs o c ia l p ro g a r m s Fo c u se d i n f o rm a ti on s hai rn g e ve n ts Im p o r v em e n t o fl o ca l ec o no mi c a ct iv i ti e s to im po r v e f oo d po r du ct ionat re a so n abl e p ri ce s

Co m p en s at io n a ndLv i ei lh ood Re s t o ra t ion Bu s n i e s s an dLan c ode ve lo pm ent to n i ce r a s eec on om ic be nef it t o co mm unt iie s Wo rkfo c r ede v eo l p me n ta n d tra i n in g Co m m un it y ca p a ci ty b u id l in g a nd d e ve o l p m en t o f p a rtn e rsh i p s In c e r a s e d so c i a l re s ii le nc e th ro ughc om mu nit y h ea l th , edu c at io n a n d o th e rs o c ia l p ro g a r m s Fo cu s edinf o rm a ti ons h a ri ng ev e nt s Im p o r ve m e n to f l o ca l e co no mc i ac t iv i ti e s to i m p ro ve f oo d p ro d uc t io n a t re a so n a be l pi rce s

Co m pen sa ti o n f or ec o no mc i dis pa l ce m ent Co m m un it y c ap ac i ty bul idn i gan d dev eo l p m en t o f p a rt nes r hp i s In c e r a s eds o ci a l re s l ie i nc e t h ro ugh co mm unt iy he alt h, edu c at io n a n d o th er so cia l po r ga r m s Fo c u se d i n f o rm a ti on s hai rn g e ve n ts Im p o r v em e n t o fl o ca l ec o no mc i a ct iv i ti e s to im po r v e f oo d p ro d uc t io n a t re a so n abe l p ri ce s

CSS Re sp o n s e

Figure 2.2 Overview of spatial distribution of Project Activities, Impacts and CSS Response during Construction

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Key project stages are as follows: Commencement of construction (start-up employment, ramp-up of procurement and supply contracts, increases in the circulation of cash in what have traditionally been subsistence communities) Peak construction (employment, procurement and supply contracts, transition from subsistence to cash-based economies) Commencement of operations (small increase in skilled work-force) Royalty payments and disbursement of equity dividends

Distribution of benefits streams by the Government of PNG via the Benefits Sharing Agreement (equity dividends, development levies, infrastructure and business development grants, etc) is staged over the life of the project (Figure 2.3 and Figure 2.4).

Figure 2.3: Landowner Benefits Architecture The largest components of the benefits distribution process are the direct responsibility of State, Provincial and Local Government (seed capital, project grants, development levies, etc). Benefits then flow through the communities via formal and informal mechanisms to eligible recipients (Figure 2.4 & Annex A).

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Figure 2.4: Project Benefits Impact Pyramid

The CSSAP and its components recognizes the potential disparities in the formal and informal project benefit distribution patterns and the effect this has on maintaining a stable operating environment. These potential distortions may manifest in a variety of forms and present an opportunity for a strategic response (Table 2.2):
Table 2.2: Strategic Framework Drivers
Characteristic Spatial variability Description Distributed benefits may appear to favor some communities over others, thereby creating or accentuating real or perceived inequities, or exacerbating existing tensions or creating new ones. Where the benefit flows do not cascade through the various layers of the community to reach the intended recipients. Project Strategic Response Spread project opportunities across the boundaries, recognizing the concepts of fairness and transparency.

Hierarchical and stratified community structures

Target community investments projects towards the base of the Benefits Pyramid (Figure 2.4), ensure that information is shared, and adopt inclusive dialogue and consultation processes. Sequence and tailor community investment projects to reflect project phases, i.e., ramp-up of construction workforce, rapid reduction in employment at the end of construction, transition into operations, flow of royalties, etc.

Temporal variability

Where the formal and informal distribution of benefits will fluctuate over time creating surges of cash in subsistence, largely non-cash communities, resulting in unrealistic expectations that benefits will continue to flow or missed opportunities to build capacity and establish sustainable developments. Where the project has identified a need to mitigate an unavoidable impact, or the potential for an impact, arising from a construction-related activity.

Impact Mitigation

Develop and implement Contractor and Company Management Plans. Monitor and evaluate for effectiveness.

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2.2

Action Plan Components

This CSSAP is a summary of the actions planned to implement initiatives and mitigation measures described in the social management plans that make up the CSS (Figure 2.5). The CSSAP also includes an implementation timeline, a description of roles and responsibilities and mechanism for external reporting. Further details may be found in the individual plans. The CSSAP fulfils a number of Company policies and standards, complies with relevant local laws, and meets the requirements of international standards.

COMMUNITY SUPPORT STRATEGY

COMMUNITY SUPPORT STRATEGY ACTION PLAN


Community Development Support Plan
Strengthen social resilience Local economic development Capacity building

National Content

Workforce development Business development Strategic community investment

Resettlement Framework

Resettlement planning Resettlement and compensation Livelihood restoration Camp management Labour and working conditions Community infrastructure Procurement and supply Community health and safety Community engagement Consultation Issues identication Planned and targeted engagement Grievance and issues management Sector improvements Poverty related disease program Respiratory diseases Vector related diseases Sexually transmitted infections

Contractor Implementation Plans

Stakeholder Engagement

Community, Health, Safety and Security Plan

Figure 2.5: Community Support Strategy Social Management Plans

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3.0

COMPANY SOCIAL MANAGEMENT PLANS

Six Company Social Management Plans describe how the Project will address and mitigate a range of potential impacts as well as promote opportunities for economic and social benefit. The major thrusts of each plan are summarised below. 3.1 Community Development Support Plan

The CSS identified a range of assessments required to develop additional community support initiatives that complement or reinforce measures covered in the Company and Project Contractor Environmental and Social Management Plans. These included: A livelihood assessment of communities assets and vulnerabilities; An institutional review, and An industry review.

These assessments were undertaken during the first half of 2010 and led to the development of the Community Development Support Plan (CDSP). The CDSP completes the suite of plans making up the CSS. The CDSP outlines implementation activities and initiatives to achieve the following objectives: Provide opportunities for sustainable development benefits in a culturally appropriate manner; and Avoid or reduce the risk of indirect adverse social impacts on Papua New Guinean communities during Project construction and production. National Content Plan

3.2

Through the National Content Plan the Company supports development of local jobs, economic growth and improvements in the standard of living. The Company will achieve this largely through its requirements of Engineering Procurement and Construction (EPC) contractors in relation to the training and hiring of qualified PNG citizens and the use of local suppliers during the construction phase and similar activities by the Company itself during the 30-year production phase. Recognizing the needs of communities affected by the Project, and the obligations of the Employment of Non-Citizens Act and the Oil and Gas Act, the National Content Plan focuses its efforts on three main areas: Workforce Development - Training and employing PNG citizens during the construction and production phases of the PNG LNG Project; Supplier Development - Increasing local suppliers business skills to help them qualify for contracts with the PNG LNG Project and other projects; Strategic Community Investments - Voluntary investments in education, health, sustainable livelihoods and environment. Resettlement Policy Framework

3.3

The PNG LNG Resettlement Policy Framework (RPF) outlines the goals, principles, and procedures employed for all physical and economic displacement associated with land access for the PNG LNG Project. The Framework includes: Resettlement goals and principles; The legal and regulatory framework for compensation and other support measures;

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Planning and implementation procedures, including a framework for the participation of people affected by displacement; Eligibility criteria, entitlements, organisational structure and resources planning for implementation of compensation and other support measures; Grievance redress mechanisms; Monitoring and evaluation processes; Indicative schedule with funding mechanisms for planning, implementing, and monitoring/evaluating resettlement.

Individual Resettlement Action Plans (RAPs) are prepared for discrete Project areas that require physical and/or have potential economic displacement. All RAPs are consistent with the RPF and address the specific conditions, characteristics, and needs of the particular people affected by displacement, as well as outlining the actions required to implement the resettlement of households. 3.4 Contractor Management Plans

Contractor Management Plans describe the Projects position with respect to a range of mitigation measures designed to avoid or reduce social impacts during construction. These mitigation measures are to be adopted by the Contractor (and its sub-contractors) with respect to: Camp Management; Labour and Working Conditions; Community Infrastructure; Community Impacts; Procurement and Supply; Community Health and Safety, and Community Engagement.

The division of responsibility between Company and Contractor (and its sub-contractors) is stated in the Plan and further defined in the Contractor Implementation Plans (CIP) prepared by the Contractors. 3.5 Stakeholder Engagement Plan

The Stakeholder Engagement Plan (SEP) describes the process whereby the Projects stakeholders will be engaged and informed of project information as well as how their issues are recorded. The plan also covers how stakeholder engagement performance will be monitored, reported and evaluated and describes the Community Grievance Procedure. 3.6 Community Health, Safety and Security Plan

The Company Community Health, Safety and Security Management Plan (CHSSMP) describes actions that will be undertaken by the Project to manage potential risks and impacts to the Project Impact Area relating to Community health. The CHSSMP provides for specific monitoring and evaluation plans based on the findings in the Health Impact Assessment. Workplace Safety and Project Security are managed by other parts of the project organisation.

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4.0

ROLES AND RESPONSIBILITIES

Several teams work closely with the Project Management Teams and report to the Project Executive. The responsibilities of these teams relating to the CSS are as follows: National Content Team Supporting, monitoring/evaluating the implementation of local workforce development. Supporting, monitoring/evaluating the implementation of local business development. Identifying and implementing projects from Strategic Community Investments.

Development Support Construction of resettlement housing Business Development Strategic Community Infrastructure Projects Rapid Implementation Projects (small community projects under <US$5,000).

Land and Community Affairs Ongoing dialogue with communities. Identifying issues, grievances and concerns within the Project Impact Area communities1, and facilitate appropriate responses and feedback. Identifying and executing additional studies, surveys, consultation and disclosure activities associated with the CSS Implementing overall mitigation measures related to the implementation of the CSS; Ongoing monitoring and evaluation of the CSS activities across the various teams; Providing guidance and direction to other teams to implement the CSS.

Project Teams Ongoing communication with communities. Implementing mitigation measures as described in the ESMP Identifying issues, grievances and concerns within the Project Impact Area communities.

Public and Government Affairs Consultation with Government departments to support the implementation of the CSS and coordinating the involvement of the various Government levels where appropriate.

Refer to PNG LNG EIS (2009)

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5.0

SUPPORTING STUDIES

There are several studies to support the CSS. These include the Project Induced Inmigration Study (PIIM) and the Fisheries Study. The PIIM Study consolidates baseline information collected on the naturally occurring phenomenon of migration, assesses the risk of project-induced in-migration and describes a series of management actions. The PIIM Study was completed in July 2010. The Project is undertaking fish catch landing surveys at each of the four villages surrounding the LNG plant site - Porebada, Papa, Lea Lea and Boera. The purpose of these surveys is to monitor catch data, such as number, size, weight and species caught, to understand the importance of fisheries for household consumption and for market. The data collected will be assessed against the baseline data collected in 2008.This will be of value in evaluating any potential future claims concerning commercial or artisanal fishing and determining an appropriate type and level of compensation if warranted. Fish catch landing surveys started in July 2010.

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6.0

IMPLEMENTATION SUMMARY

The following table (Table 6.1) presents a summary of the key elements of each of the plans that collectively represent the means whereby the CSS will be implemented (Figure 2.1). The table effectively forms the core of the CSSAP. Additional supporting information is presented in the individual plans, including monitoring and evaluation elements

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Table 6.1: Implementation Summary (Budgets associated with the actions provided below are contained within the individual plans)
Action # National Content Plan NCP 1 Workforce Development NCW1 POM Construction Training Facility (CTF) First Quarter 2010 1st Quarter 2010 2nd Quarter 2011 4th Quarter 2011 1st Quarter 2010 3rd Quarter 2010 to 2013 November 2009 to 2012 Complete Ongoing Ongoing Complete Contractor A modern purpose-built trade training facility that can be used beyond the life of the PNG LNG Project. Current forecast is for 2500 trained job-ready workers during construction A modern multi purpose training facility to train construction workers for the HGCP. Forecast 200 trained craftsmen during construction Trained PNG citizen trainers to staff the POM CTF facility Up to150 Qualified PNG citizen operations & maintenance personnel 35 PNG citizen graduates given first-hand training in EM Project delivery skills LANCOs supported according to National Content Plan Umbrella Lancos delivering significant value of services to EPC contractors & sharing profits with stakeholders & communities Facility able to assess PNG companies, complete gap analysis and deliver targeted training, capacity building and facilitate access to finance beyond the end of the PNG LNG Project Managing and implementing partner able to assist development of local businesses beyond the life of the Project Database able to allow PNG businesses to register interest and capacity and access information on EPC/Sub-contractors/EHL Business Opportunities National Content Plan July 2009 Complete EHL National Content Plan Key Activities Timing Status Resources Deliverables

NCW 2 NCW 3 NCW 4 NCW 5 NCW 6 NCW 7

Training of workers at the POM Construction Training Facility (CTF) Juni Construction Training Facility Training of Employees at Juni Train-the-trainer program for POMCTF Training of Production Phase trainees

Ongoing Complete

Contractor Contractor EPC4 Contractor Contractor Global Operations, EHL and BTPO EHL

On the job training for 35 graduates embedded with the Project Local Business Development NCB 1 Develop capacity of Lancos

2010 to 2013

Ongoing

Enterprise Centre and EHL EHL

NCB 2

Facilitate agreements with Lancos to provide services and support to Project Establish an Enterprise Centre (EC)

2010

Complete

NCB 3

2010

Complete

EHL

NCB 4

Identify Enterprise Centre implementing partner Develop a supplier database

IBBM chosen in December 2009 Implemented in Dec 2009, continually updated.

Complete

EHL

NCB 5

Ongoing

Contractor

Community Development Support

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Action # CDS 1 CDS 2 CDS 3 CDS 4 CDS 5 CDS 6 CDS 7

Key Activities Sustainable livelihood assessment Stakeholder consultation and visioning and institutional assessment Industry / sector analysis Establishing community development group Engagement of Vulnerable Communities Community Development Support Programs and Budget Planning Implementation of Community Development Support Programs: Community capacity building Strengthening social resilience Local economic development Sep-10

Timing

Status Complete Complete Complete Complete Ongoing Complete Ongoing

Resources Contractor Contractor Contractor EHL EHL EHL EHL

Deliverables Sustainable Livelihood Framework Assessment Stakeholder Consultation findings for Community Development Support Industry Sector Analysis Report Agreement on terms of reference, roles and responsibilities Programs identified to be inclusive of vulnerable communities Community Development Program finalization and budget allocation September, 2010 Internal Execution Plan, September, 2010; Implemented Programs and Projects

July 2010 March 2011 Sep-10 Ongoing 2009-2013 September, 2010 May, 2010 - onwards

CDS 8

First 5-year business plan for community development during operations

Dec-13

EHL

5-year Community Development Support Plan for operations phase

Strategic Community Investment SCI 1 Infrastructure & investment program to support Education Health Communities Delivery of a program of Rapid Implementation Projects Development of Resettlement Policy Framework (RPF) Resettlement Actions Plans and Community Resource Plans Resettlement implementation Livelihood restoration and monitoring and evaluation Jan 2010 onwards Ongoing EHL Program of targeted projects benefiting communities throughout the Project Impacted Area

SCI 2 Resettlement RPF 1 RPF 2 RPF3 RPF 4

September 2010 onwards

Ongoing

EHL

Program of small projects benefiting communities throughout the Project Impacted Area Resettlement Policy Framework Resettlement Action Plans & Community Resource Plans Resettlement and compensation of impacted households within the Project area Re-instatement of livelihoods of resettled households; and monitoring reports

October, 2009 October 2009 - 2011 Oct-09 2010-2013

Complete Complete Ongoing Ongoing

Contractors & EHL Contractors & EHL Contractors & EHL Contractors & EHL

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Action # Stakeholder Engagement

Key Activities

Timing

Status

Resources

Deliverables

Stakeholder Communication Coordination Committee SE-CCC1 SE-CCC2 Development of Stakeholder Engagement Coordination Team (SECT) Jul-10 Meeting held monthly Complete Complete EHL EHL Signed Charter SCCC Meeting minutes and follow-up Actions and activities

Incorporated in the broader brief of the Strategic Communication Coordination Committee (SCCC) Communication Materials SE-CM1 Development of information materials

Ongoing

Ongoing

EHL

Range of communication outreach materials to support general and activity-specific awareness Venue list, engagement reports/data

SE-CM2

SE-CM3

Establishing venues to provide regular, scheduled community meetings and feedback opportunities General Information and Project-specific awareness campaigns, Open Houses, Q&As etc. Development of Q & A's for subject and construction specific activities Develop and implement a Community Outreach Program

2012

Ongoing

EHL

2013

Ongoing

EHL

Information visits, community awareness Meetings. EHL and EPC-approved briefing material

SE-CM4

Ongoing

Ongoing

EHL

SE-CM5

Ongoing

Ongoing

EHL

Monthly LNG Plant Site newsletter Broadcast schedule for radio programs

Stakeholder Database Development SE-DB1 Develop and populate interim Stakeholder Engagement Database L&CA-specific Information Management System set up. Incorporating earlier standalone data October 2009 August 2010 In use Complete Contractors Database containing stakeholder records, issues and responses collected during campaigns Integrated application

SE-DB2

Complete

Contractors and EHL

Enabling Activities SE-EA1 Grievance Procedure SE-GP1 Develop community grievance procedure Roll-out - Mar 2010 Complete Contractors and EHL Procedure aligned with Stakeholder Engagement Plan commitment Team training on Project and related social program activities Ongoing Ongoing as required EHL Appropriate visual aids and multi-media material

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Action # SE-GP2 SE-GP3

Key Activities Printing and distribution of carbonated forms Implement Grievance System

Timing Completed and in use Jan 2010 - 2014

Status Complete Ongoing

Resources EHL EHL

Deliverables Pre-printed, carbonated forms Initial staff recruitment and training Set up IMS grievance module Grievance register and close-out reports Grievance Coordinators in field locations

Community Health CH1 Fact finding: program evaluation of organizations, agencies, services Development of Terms of Reference for all Environmental Health Assessments (EHA) Sponsorship agreement in place External Review October 2009 December 2010; then ongoing October 2009 December 2010 Sept Dec 2010 October 2009 December 2010 Ongoing Contractor Field reports

CH2 CH3 CH4

Complete Complete Complete

Contractor Contractor Contractor

Terms of References developed Sponsorship agreement Selection of program providers; Agreement with providers regarding program measurements

CH5

Program implementation

October 2009 - end of production

Ongoing

Contractor

Monitoring reports per EHA

Project & Contractor Management Plans (Construction) PP-C1 PP-C2 PP-C3 PP-C4 PP-C5 Social Management and Construction Implementation Plans Project personnel and EPC contractors training on the Social Management Plans Training and alignment workshops (social programs and construction) Implementation of social management plans Monitoring of Project Social Management Plans / Contractor Implementation Plans (CIPs and SMPs) Nov 10 November December 2009 November March 2010 December 2014 Commencing March 2010 Complete Complete Complete Ongoing Ongoing EHL Contractor Contractor EHL EHL Approved Plans Training materials, training sessions, workshops Training materials, training sessions, workshops Mitigation measures defined in individual plans Ongoing monitoring activities per individual plans

In-migration Risk Assessment CSS-IM1 CSS-IM2 In-migration impact assessment 3rd Quarter 2010 3rd Quarter 2010 Complete Complete Contractor Contractor Scope of Work Document Final draft to social programs team for internal & external review

Complete Project Induced In-Migration (PIIM) Study

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Action # CSS-IM3

Key Activities Internal social programs review of PIIM study, proposed action program & address PIIM study limitations Finalize Project PIIM Action Plan Implementation of PIM Action Plan and Monitoring and Evaluation

Timing 4th Quarter 2010

Status Complete

Resources EHL

Deliverables Project Management Team review of Project position/ strategy for PIIM

CSS-IM4 CSS-IM5 Fisheries Study FS-1 FS-2

2nd Quarter 2011 2011-2013

Complete Ongoing

EHL EHL

Project PIIM strategy and action plan Complete project PIIM strategy

Monitoring and evaluation scope of work for fisheries Monitoring fish catch landing: LNG Plant Site villages Monitoring fish catch, waterways use and river traffic Omati River

Sep-09 July 2010 September 2012 September2011

Complete Ongoing

Contractor

Scope of work document Monthly data capture reports and analysis

Contractor and EHL EHL

FS-3

Ongoing

Fish catch monitoring survey, waterways use and Omati River traffic study

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7.0

MONITORING AND EVALUATION PLAN (CONSTRUCTION PHASE)

Note: Progress from individual CSS Plans will be summarized and included in the Projects Environmental and Social Quarterly Report
Element Parameter /Criteria Physical capital Water sources Housing Financial Capital Income Expenditure Human capital Education and literacy Health Social Capital Domestic violence Gender equity Access to services Vulnerability Community Capacity Building and Partnerships Number of Land and Community Affairs officers visits to the field noting community group representation; women, youth elders, etc to facilitate consultative community development planning. Number of CDS projects implemented Quarterly Community Development Forum Meetings Quarterly 2010 from Q3 Community Development Support Team EHL: L&CA Contractor Interface and Compliance Quarterly 2010 from Q3 L&CA field work EHL: L&CA Frequency of Reporting Done initially as part of household registration then annually Method Monitoring Responsibility EHL: Medicine and Occupational Health

Community Health, Safety and Security Management

Integrated Health & Demographic Surveillance System (iHDSS)

Community Development Support (CDS)

Strengthening Social Resilience Personal Viability Training People trained Trainees reporting increased capacity to manage income Protection, promotion and maintenance of culture Activities undertaken that aim to protect, promote and maintain culture Quarterly 2010 from 4Q Quarterly 2011 from Q1 L&CA field work Service Provider reports, questionnaires, and follow-up surveys EHL: L&CA Contractor Interface and Compliance

L&CA field work Service Provider reports (if applicable)

EHL: L&CA Contractor Interface and Compliance

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Element

Parameter /Criteria Traditional stories disseminated to libraries in the Project area

Frequency of Reporting

Method Community Committee reporting

Monitoring Responsibility

Improved access to learning and education Functional adult literacy courses run in the Project area People supported to undertake distance education across the Project area

Quarterly 2011

from

Q1

L&CA field work Service Provider reports (where applicable) Community Committee reporting

EHL: L&CA Contractor Interface and Compliance

Local Economic Development Enhance value-chain activities including post-harvest processing and marketing Projects aimed at improving post-harvest processing and marketing Projects partnering with established private sector Improved subsistence livelihood systems Local information sessions on existing and innovative technologies to improve agricultural practices Projects aimed preservation at home-economics and household food Quarterly 2011 from Q1 L&CA field work Service Provider reports (where applicable) Community Committee reporting EHL: L&CA Contractor Interface and Compliance Team Quarterly 2011 from Q1 L&CA field work Service Provider reports (where applicable) Community Committee reporting EHL: L&CA Contractor Interface and Compliance Team

Local Economic Development Opportunities Projects to support informal and formal businesses including mentoring People especially women assisted to develop business plans Project Induced InMigration Project will monitor potential Project induced in-migration based on the PIIM Study.

Quarterly 2011

from

Q1

Service Provider reports (where applicable) Supported by L&CA and business development officers field work

EHL: L&CA Contractor Interface and Compliance Team

Annual

Coordinated with demographic health survey

EHL: L&CA Contractor Interface and Compliance Team EHL: National Content Manager

National Content

Workforce Development Number of people trained Number of people employed

Quarterly

National content reports

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Element Business Development

Parameter /Criteria

Frequency of Reporting

Method

Monitoring Responsibility

Total spend in-country Total number of vendors used in-country.

Resettlement

Compensation payment tracking against plan Actual number of houses resettled or compensated vs planned number (avoidance). Ongoing input/ output monitoring of resettlement activities 1. Verify internal RAP implementation plans 2. Interview a random sample of affected people in open-ended discussion to assess their knowledge and concerns regarding the resettlement process, and rehabilitation measures. 3. Observe public consultations with affected people at the village or town level. 4. Check grievance issues and the functioning of grievance redress mechanisms by sample of affected people. 5. Survey the standards of living of the affected people (and of an unaffected control group where feasible) before and after implementation of resettlement to assess whether the standards of living of the affected people have been maintained.

Quarterly

Compensation payment progress monitoring

EHL: In-Field Resettlement Monitoring Coordinator

Quarterly

Random sample of 20% of households resettled (review of compensation payment process to provide assurance that payments are timely, appropriate - meet criteria, etc)

EHL: In-Field Resettlement Monitoring Coordinator

Fisheries

Monitoring Plans for fisheries activities in the Caution Bay/ LNG Plant Site and Omati River sections of the offshore pipeline right of way will be dependent upon the outcomes of the fisheries surveys. Number and category of grievances raised by stakeholders within each community or village Number of grievances responded to Number of specific information sessions and awareness programs with stakeholders.

Bi-annual

Village based surveys

EHL: L&CA Contractor Interface and Compliance EHL: L&CA

Stakeholder Engagement

Quarterly

Audit (documentation and interview). Actual process is in accordance with Stakeholder Engagement Plan

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Element

Parameter /Criteria

Frequency of Reporting Monthly reports EHL management to

Method

Monitoring Responsibility EHL: L&CA.

Grievance Mechanism

Participation: The target is to channel 100% of grievances (except those related to worker issues) through this procedure, before grievances reach the media or the courts. Target 75% resolution of grievances (from the Projects perspective) within 30 days, dealing directly with the person raising the grievance.

Monitor implementation of the response and corrective action of both Company and Contractor grievances.

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REPORTING

Reports will be provided to project management and the Lenders Independent Environmental and Social Consultant quarterly audits, as well as to external stakeholders, (per social management plan requirement), and will be disclosed via dialogue with the communities in the Project Impact Area. Summary progress reporting will be included in the Projects quarterly environmental and social report.

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ANNEX A: Community factors potentially affecting benefit distributions


Characteristic
Historical legacy, or past actions that have created mistrust among the local population

Comment
The source of the historical mistrust can be varied in response to environmental damage, land disputes, compensation expectations, unmet commitments, corrupt practices, nontransparent behaviour, and/or alleged human rights abuses Without specific measures to ensure their inclusion, the most vulnerable groups can be excluded from, or be underrepresented in, the development process. When this happens, the interests and opinions of these groups are likely to be overlooked, resulting in marginalization Some communities can be stratified, with power structures dominated by traditional elites who influence or control most of the community decisions regarding resource use and management. While these elites can provide important support by helping to mobilize community participation and engaging with the Project, they may also distort decision making and capture funds and resources. This undermines representation, participation, and fairness in the distribution of benefits, and can lead to perceptions of bias in the allocation of resources

Inclusion of women and vulnerable groups, where certain cultural norms and values may not favour participation or exclude women and other groups from decision making Leaders, who may distort decision making and capture resources for their own use

Conflict and post-conflict settings, where the need for community investment is great but the risks include aggravating existing tensions or sparking new conflicts over community investment resources Governance issues, including corruption and lack of capacity or political will

The measure of effective engagement may not necessarily be the absence of conflict and disagreement but, rather, the ability of the different parties to maintain a constructive dialogue.

Government can serve as an effective partner, contributing to strong local participation, accountability, and the long-term sustainability of community development efforts. Conversely, the potential for good governance can be hindered by a variety of factors. Vested interests, for example, can pose major difficulties for engaging government stakeholders, especially where government representatives or traditional authorities fear community-led planning processes might threaten their status quo. The power dynamics between elected and traditional authorities can also cause governance challenges. Other issues that relate to local governance include historical distrust between government authorities and communities, lack of resources and institutional capacity, patronage politics, and lack of political will. Poor governance can go hand in hand abuses and security issues, impacting the ability of a company to build productive relationships with local stakeholders.

Weak local organizations, requiring upfront capacity building before community investment

Experience has shown that even where there are local NGOs and community-based organisations, these organizations can lack capacity, accountability, transparency, or appropriate representation. Community-based organisations in particular are often informal in structure and tend to reflect the power structures and cultural values of their communities. This can make it difficult for them to adopt new approaches, such as participation and inclusion that may run counter to traditional practices.

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