Environmental and Social Challenges Fund for Africa
In January 2007, MIGA launched a trust fund to provide technical advice to overseas investors in Africa. The fund, launched with support from the Japanese government, is open on a case-by-case basis to investors already receiving MIGA guarantees or being considered for support for existing or possible projects in MIGA member countries in Africa.
Through the trust fund, investors can receive expert advice from MIGA and from special consultants hired by the fund. The goal is to ensure that investors comply with MIGA’s environmental and social policies; are able to assess a project’s environmental or social impacts; and receive best-practice advice on issues such as resettlement and local community benefits.
For example, the fund is currently supporting work on implementation of the Voluntary Principles on Security and Human Rights (see toolkit - English, French) with a mining company, and on the development of an environmental health and safety management plan for a fast-expanding manufacturing company that has outgrown its original management systems.
Projects undertaken by the fund are triggered by requests from clients or prospective clients, or from MIGA’s staff. Following a request—and the client’s agreement to consider involvement by the fund—MIGA evaluates what type of support it can provide. This evaluation usually involves a visit to the project site; trust fund support typically involves providing expert consultants to work with the client on the specific tasks identified in the site visit.
When a project gets the go-ahead for trust fund support, a letter of agreement is drawn up between MIGA and the client, defining the work to be done, as well as the roles and responsibilities of the client company, MIGA, and the consultant. Clients also make a contribution to the work, for example by providing on-site assistance to MIGA and the consultant and/or a financial contribution to project costs. The client’s contribution is defined through agreement with MIGA on a case-by-base basis.
For Interim Report on Trust Fund Progress and Outcomes click here.
For further information about the fund, or to discuss possible projects for trust fund support, please contact:
Deniz Baharoglu
Environmental and Social Challenges Trust Fund, MIGA
1818 H Street, NW
Mail Stop U12-1203
Washington, DC 20433
t. 1.202.458-9598
dbaharoglu@worldbank.org
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