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Transparency in the infrastructure and natural resources sector is essential for a variety of reasons. For one thing, the transparency landscape is changing with new digital technologies and democratization of data. This is shifting the value proposition that companies bring to the table. At the same time, more than ever, the public is demanding industries and governments to be transparent. IFC Sustainable Infrastructure Advisory’s transparency builds on over 13 years of government capacity building experience in improving transparency of natural resource revenues and water use in countries like Colombia, Mongolia, and Peru. Our work focuses on facilitating access to and enabling the use of information for civil society, industry and governments to improve natural resources investment processes, promote social accountability and demonstrate how natural resource wealth contributes to reducing poverty and boosting shared prosperity. IFC’s work on transparency continues to expand globally to promote action-oriented public discourse around open data and its innovative re-use for solving social problems and improving social license to operate.
Using open data and offline approaches, we catalyze multi-stakeholder dialogue and engagement amongst industry, government, digital entrepreneurs, media, local leaders, youth, and women to improve transparency in natural resources. We also help to build the capacity of infomediaries and local leaders to improve the access, adaptation and dissemination of data, and develop tools and guidelines for companies to leverage existing data better. To do this, we develop national and subnational level data assessment frameworks, guidelines and case studies, as well as knowledge products that capture global transparency trends and advance best practices.
This program is an IFC-led initiative, funded by the BHP Foundation, in collaboration with the World Bank. The goal is to enhance multi-stakeholder benefit sharing from investment in natural resources through effective disclosures and data use practices. D2D is designed to develop, test and disseminate new approaches aimed at improving information disclosure and data dissemination strategies. It currently is being piloted in Colombia, Ghana, Guinea, Mongolia, Peru, and Sierra Leone.
In Colombia, in partnership with Transparency and Accountability Initiative, IFC is developing a sector-specific data assessment framework for monitoring mining royalties to determine the data challenges and barriers related to transparency and mining revenue management at the national and subnational levels. It responds to companies’ needs to identify the data demands in the areas of operations in order to better engage with communities and infomediaries on benefit-sharing.
In Ghana, IFC is engaging with tech-savvy young entrepreneurs to unlock the potential of data from the natural resource industry and build solutions for information challenges to help address social challenges. The initiative brings together companies, communities, and civil society as well as individuals with digital skills to work collaboratively on supporting local economic development in the areas of oil, gas and mining projects.
In Mongolia, we focus on improving the use and dissemination strategies of subnational mining revenue and water data. Leveraging the groundbreaking Voluntary Code of Practice: Minerals Industry and Water Management work conducted by IFC, the D2D program will partner with companies, the local innovation hub, and universities to deliver capacity building activities for local infomediaries.
In Peru, IFC works with the Ministry of Energy and Mines and industry on innovative data strategies for the newly established Information Management Committees in mining communities. We also support citizens’ surveillance committees in charge of participatory budgeting, and promote multi-stakeholder dialogue on disclosure and re-use of data.
For the past 13 years, IFC transparency projects in Latin America aimed to help local governments and their populations be more transparent in the use of resources and have better-targeted local investment fueled by increased participation and dialogue with communities.
This initiative focused on the most active, rural and remote mining regions in Peru to help build the capacity of government and local leaders in seven municipalities. The Municipal staff was trained in investment management and introduced to transparency and accountability practices to increase dialogue and community participation.
The MIM (Improving Municipal Investment, from its name in Spanish) initiative was implemented in 31 municipalities of Peru with participation of approximately 50 civil society institutions representing eight regions of the country. MIM promoted an informed dialogue between citizens and their local authorities to help increase the impact of public investment on local development.
Peru LNG improved municipal investment management in three municipalities located in the direct area of influence of LNG’s pipeline. The initiative focused on capacity building that promoted the improvement of municipal investment management practices and a social accountability component supporting local CSOs in undertaking a systematic monitoring of municipal investments.
Together with the Colombia Royalty Monitoring Ecopetrol, the School of Public Administration (ESAP), and the Colombian Petroleum Association (ACP), and several oil companies, IFC joint efforts to strengthen the Regional Royalty Committees (CSIRs) in 6 regions: Arauca, Cordoba, Huila, Magdalena Medio, Meta and Sucre. The project strengthened social control capacities of the Committees and facilitated the incorporation of effective monitoring and social control methodologies of local royalty investments.
institutions participating in D2D Working Groups
municipalities improved their Municipal Good Governance (MIM) Index ranking
of investments were prioritized through the participatory budgeting process (Apurimac Revenue Management)
D2D Program. IFC established 3 Natural Resource Data Working Groups for dialogue, transparency, and innovation around natural resource data in Peru, Ghana, and Mongolia. These groups were comprised of high-level representatives from private and public sectors, civil society, academia, and digital entrepreneurs.
Apurimac Revenue Management, Peru: The intervention helped increase social accountability (as measured by IFC’s Social Accountability Index) and gave the population a voice to express their opinions and to monitor municipal investment. 69% of the municipalities’ expenditures are aligned with the population’s needs, and 74% of investments were prioritized through the participatory budgeting process.
MIM Peru: The percentage of the population that considered that their municipality provided information regarding municipal investment rose from 12 to 22%. 24 municipalities improved their Municipal Good Governance Index ranking, resulting from a better response to the population needs, and an improved accountability on the use of resources. 27 municipalities responded to more than 12,000 questions from the population, demonstrating their openness and willingness to provide information.
Peru LNG: The understanding of royalties increased from 8.1% to 18.2% and of municipal investment increased from 36.0% to 45.8%; Knowledge of rights to request information increased from 29.7% to 38.2%; The perception of the usefulness of the information provided by municipalities has increased from 33.6% to 41.9%
Colombia Royalty Monitoring: 6 CSIRs involved were capable of monitoring ongoing projects financed by royalties. The proportion of citizens aware of their right to request and obtain information on royalties’ investment increased by 5% in the regions targeted by the CSIRs. The population of target municipalities reported increased and improved access to information on royalty investments in their localities.