Pitfalls and Pipelines - Philippine Indigenous Peoples Links

Chapter 2.1: Local Community Assistance
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(IFC). The IFC’s Policy on Social and Environmental
Sustainability requires such financing apply only to projects
that have proven “broad community support.” In practice,
however, this has not always worked out. The IFC provided
a US$45 million loan to Glamis Gold for its proposed mine in
Sipacapa, Guatemala. Yet the Mayan indigenous community
rejected the mine in May 2005 with a 98.5 percent popular
vote. Although the IFC’s own board of directors criticized
the IFC for relying solely on information from the company
in deciding on the loan, the IFC did not withdraw from the
project, despite the clear lack of “broad community support”
established by the referendum. 12
Then there are various activities a community can undertake,
outside of court action, to force the company to deal with
community concerns. These activities focus on ensuring that
the company has correctly implemented all the rules and permits.
These activities should protect the local environment,
will create more time to organize, but also by causing delay
will cost the company money, and therefore should persuade
them to the negotiating table or possibly to leave the area.
There will be various stages of licensing that provide opportunities
for intervention. The main one will be around the EIA,
but make sure that all the relevant documents are fully read at
all stages, and seek expert advice.
As noted in Chapter 1.1, there will be opportunities to
challenge what is in the EIA. Be particularly aware of what
is missing, especially with regard to cultural issues such as
sacred sites, or sites of archaeological or cultural significance.
As an EIA often requires proof of social acceptance, make
ensure that meetings are free and fair so that a lack of such
acceptance is clearly noted. In a case in the Philippines, where
there were concerns that such a process would be rigged in
favor of the company, the community stopped the meetings
taking place by blockading the meeting area through sheer
weight of numbers. This technically invalidated the process,
and presented irrefutable proof that there is no social license
to operate. 13 There should be opportunities to lobby government
officials to follow up on any omissions or mistakes in the
EIA. If there are any illegalities in how the EIA was prepared