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PublicDisclosureAuthorizedPublicDisclosureAuthorizedPublicDisclosureAuthorizedPublicDisclosureAuthorized

BenefitSharingin

WorldBankOperations

PrioritizingDevelopmentforLocalCommunities

····ci·tizenEngagement

·o·&socialAccountability

BenefitSharing

inWorldBankOperations

PrioritizingDevelopmentforLocalCommunities

SocialSustainabilityandInclusionGlobalPracticeTheWorldBankGroup

May2024

CoverImage:DanMeyers|Unsplash

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©2024InternationalBankforReconstructionandDevelopment/TheWorldBank1818HStreetNWWashingtonDC20433Telephone:202-473-1000Internet:

ThisworkisaproductofthestaffofTheWorldBankwithexternalcontributions.Thefindings,interpretations,andconclusionsexpressedinthisworkdonotnecessarilyreflecttheviewsofTheWorldBank,itsBoardofExecutiveDirectors,orthegovern-mentstheyrepresent.

TheWorldBankdoesnotguaranteetheaccuracy,completeness,orcurrencyofthedataincludedinthisworkanddoesnotassumeresponsibilityforanyerrors,omis-sions,ordiscrepanciesintheinformation,orliabilitywithrespecttotheuseoforfail-uretousetheinformation,methods,processes,orconclusionssetforth.Thebound-aries,colors,denominations,andotherinformationshownonanymapinthisworkdonotimplyanyjudgmentonthepartofTheWorldBankconcerningthelegalstatusofanyterritoryortheendorsementoracceptanceofsuchboundaries.

NothinghereinshallconstituteorbeconstruedorconsideredtobealimitationuponorwaiveroftheprivilegesandimmunitiesofTheWorldBank,allofwhicharespecif-icallyreserved.

RIGHTSANDPERMISSIONS

Thematerialinthisworkissubjecttocopyright.BecauseTheWorldBankencourages

disseminationofitsknowledge,thisworkmaybereproduced,inwholeorinpart,fornoncommercialpurposesaslongasfullattributiontothisworkisgiven.

Anyqueriesonrightsandlicenses,includingsubsidiaryrights,shouldbeaddressedtoWorldBankPublications,TheWorldBankGroup

1818HStreetNW,Washington,DC20433,USA;fax:202-522-2625;e-mail:

pubrights@.

ATTRIBUTION

Pleasecitetheworkasfollows:WorldBank.2024.BenefitSharinginWorldBankOperations:PrioritizingDevelopmentforLocalCommunities.Washington,DC:WorldBank.

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TableofContents

Foreword 6

ExecutiveSummary 7

UnderstandingBenefitSharing 8

ApproachestoBenefitSharingAcrossSectors 11

BenefitSharingintheBank’sPortfolio:CaseStudiesandLessonsLearned 13

Conclusions 20

1.Introduction 21

2.UnderstandingBenefitSharing 23

2.1KeyFactorsinBenefitSharingMechanisms 25

2.2BenefitSharinginWorldBankPoliciesandStandards 30

2.3WhyBenefitSharingIsImportantfortheWorldBank 31

3.SectoralApproachestoBenefitSharinginWBGProjects 34

3.1ResettlementandRehabilitationPolicies 34

3.2ExtractiveIndustries 35

3.3Hydropower 40

3.4OtherRenewables(Solar,Wind,Geothermal) 43

3.5ForestryandLandUse 45

3.6OtherSectors 48

4.BenefitSharingintheBank’sPortfolio:CaseStudiesandLessonsLearned 49

4.1CaseStudyCharacteristics 52

4.2InsightsfromtheCaseStudies 54

5.Conclusions 70

References 75

Endnotes 80

4

ListofTables

Table1.CriteriatoEvaluateBenefitSharingMechanisms 41

Table2.CaseStudiesandApproachestoBenefitSharing 49

Table3.TheProsandConsofDifferentStructuresforBenefitSharinginProjects 66

Table4.Examplesofindicatorsandresultsofbenefitsharingprojects 68

Table5.PotentialApproachestoBenefitSharing,bySectorandProjectImpacts 72

ListofFigures

Figure1.KeyRationalesforBenefitSharing 24

Figure2.Compensation,LivelihoodRestoration,andBenefitSharing 27

Figure3.WBGRenewableEnergyFinanceCommitmentsinFiscal2018–2020 42

Figure4.BenefitSharingApproachesacrossCaseStudies 53

ACKNOWLEDGMENTS

PreparationofthisreportwasledbyErikJohnson,GlobalLeadforCitizenEngagementandSocialAccountabilityintheSocialSustainabilityandInclusion(SSI)GlobalPractice,

withFedericaCimatoasthemainauthorandMarionDavisaseditor.Theworkwascar-riedoutundertheguidanceofLouiseCord,GlobalDirectorofSSIandIngoWiederhofer,PracticeManagerofSSI.

Inconductingcasestudyresearch,theteamisgratefulforinputsprovidedbyCarlosTomasPerez-Brito,CarolineMarySage,ManinderS.Gill,SusanWong,DmytroGlazkov,LuizaNora,BryanLand,KatherineAnneO’Gara,JemimaT.Sy,FionaJCollin,KaoriOs-hima,JanellePlummer,MortenLarsen,RogerShotton,EmcetOktayTas,SarahKeener,GaiaHatzfeldt,ChristopherGilbertSheldon,JossesMugabi,AdrianHowardCutler,RemiPelon,GabrielaEncaladaRomero,NeetaHooda,LaurenciaKarimiNjagi,NorahKipwola,MoezCherif,NadiaTaobane,HarikaMasud,andMariaV.Arsenova.

Theteamhasalsobenefitedenormouslyfromthediscussionswithandfeedbackfromourpeerreviewers:PravinKarki,ChaogangWang,RachelPerks,aswellasadditionalre-viwers,JanmejaySinghandPremKhanal.

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Foreword

Governments,investors,anddevelopmentpartnerscontinuetograpplewiththechal-lengeofmobilizingandsustainingcommunitysupportforlargescaleinfrastructureandnaturalresourcedevelopmentprojects.Historically,suchprojectshaveoftenhaddis-ruptiveimpactsoncommunities,includingdisplacingpeoplefromtheirhomesandlive-lihoods,disruptinganddiminishingaccesstoandavailabilityofnaturalresourcesandalteringtheenvironment.Suchoutcomesarenotinkeepingwithsustainabledevel-opmentobjectives,andinvestorsandcommunitiesareeagertoidentifynewmeanstocollaboratetowardmutuallybeneficialoutcomes.

Benefitsharingapproachesareonetoolavailabletohelpalignsuchprojectswiththeinterestsofcommunitiesandimprovedevelopmentoutcomes.Sincefirstinitiatedintheearly2000s,suchapproacheshaveevolvedwithapplicationacrossmanysectors.

ThispaperisthefirstWorldBankreportthatlooksatexperiencesapplyingbenefitshar-ingapproachesacrossmultiplesectors,providing12in-depthcasestudiesincludinginhydropower,solarpower,mining,electricitytransmissionandforestryoveraperiodoftwentyyears.Thisanalysisoffersarangeoflessonsonthedesignandimplementationofbenefitsharingagreements,notablytheimportanceof(i)aligningthetimingofben-efitsharingactivitiestothatofprojectimplementationtobuildconfidenceamonglocalstakeholdersandavoidgapsintheprovisionofbenefitsifthereareconstructiondelays;(ii)designingappropriatemanagementmechanismsforfunds,includingbuildinglocalca-pacitytoenabletheeffectiveandtransparentuseoffunds;and(iii)ensuringthescopeofbenefitsharingmechanismsalignwithprojectimpacts.

Thisreportisparticularlytimelygiventhegrowingimportanceofbenefitsharinginthe

contextofeffortstorespondtoclimatechange,includinginlargescalerenewableen-ergyinfrastructureprojectssuchashydro,solar,geothermalandwindpower,butalsointheresponsibleminingofmineralsforcleanenergytechnologyandthedesignofnewinstrumentssuchassocialintegrityprovisionsforvoluntarycarboncreditswhichaimtorehabilitateandprotectforests.

TheSocialInclusionGlobalPracticecontinuestosupportsectorsacrosstheBankinengag-ingwithcommunitiestoensuretheybenefitfromdevelopment.Wehopethatthisreportwillconnectthelessonsfrompastengagementstothedesignofnewinitiatives,tomoreeffectivelyandsustainablybuildcommunitysupportforinvestmentsinachangingworld.

NikolasMyint,PracticeManager,Global,SocialInclusionGlobalPractice

VaralakshmiVemuru,PracticeManager,EuropeandCentralAsia,SocialInclusionGlobalPractice

6

ExecutiveSummary

Largeinfrastructureprojectsandinvestmentsinminingandotherextractiveindustriescantransformacountry’seconomy.However,experiencearoundtheworldhasshowntheimpactsofsuchprojectsarenotevenlydistributed.Whilethebenefitsmayaccruetothecountryasawhole,ortoaspecificsectororregion,negativeimpactstypicallyfalldisproportionatelyonlocalcommunities,includingdisplacement,lossofaccesstokeyresources,anddisruptionoflivelihoodsandoftraditionalpractices.

Inanefforttomitigatenegativeimpacts,manyprojectsincludecompensationandliveli-hoodrestorationtoaffectedpeople,aswellasinvestmentsinlocalinfrastructureandsup-portfornewlivelihoods.Thesemeasuresareimportant,butithasbecomeclearinrecentdecadesthatcommunitiesdeservemore—andthatitisintheinterestofprojectstodobettertoavoidfuelingoppositionthatdrivesdelays,increasedcosts,andevenconflicts.

Theconceptof“benefitsharing”emergedfromthisrecognition.Thoughthereisnosin-gledefinitionoftheterm,indevelopment,itisgenerallyunderstoodasaframeworkforgovernmentsandprojectproponentstomaximizeandequitablydistributebenefitsamongstakeholders,withspecialattentiontopeoplewhoareadverselyaffected.Whileimpactmitigationeffortstrytoensurethatprojectsdonoharm,benefitsharingseekstodelivervaluetoprojecthostcommunities.

Benefitsharingcanhelpincreasesocialacceptanceofprojects,enhancetheiroverallsocio-economicbenefits,helpthemmakeamorelastingimpact,andhelpensurea“justtransition”inthecontextofinvestmentsincleanenergyandlow-carbondevelopment.Theseaspectsareparticularlyrelevantatthismomentinhistorywheremosteconomies

aroundtheworldhavemadepledgestoinvestinagreenenergytransitionandeconom-icrecoveryaftertheCOVID-19pandemic.

Aimingtoadvanceknowledgeofbenefitsharingandpromoteitseffectiveimplementa-tionacrosstheWorldBankGroup(WBG),theSocialSustainabilityandInclusionGlobalPracticeconductedanin-depthstudyin2021toassesshowbenefitsharingisreflectedinWBGpoliciesandguidelinesandhowitcontributestoachievingWBGobjectives,todistillinsightsfromWBGprojectsindifferentsectorsandregions,andtoproviderecom-mendationsfortheWBG’sfuturework.

Thisreport,whichalsoincludesdetailedcasestudies,isthefirstcomprehensivereviewofbenefitsharingconductedwithintheBank;previousstudieshavefocusedonspecificsectorsonly.Thegoalistoprovideabroaderperspective,drawingontheexperiencesandinsightsofWBGspecialistsacrosssectorsandcountries,andtoinvitereflectionandfurtherdiscussiononoptionsfortheBank’sfutureengagement.

7

UnderstandingBenefitSharing

Majorprojects,nomatterhowbeneficialoverall,candramaticallyaffectthelivesandlivelihoodsofpeopleinthesurroundingarea.Localcommunitiesoftenrelyontheland,bodiesofwater,forests,andothernaturalresources.Whetherornottheyhaveformalownershiprights,theystandtolosefromgivingupthoseresources,andtheyaregen-erallywarytodosounlesstheycanseeclearbenefits.

Theideathatthebenefitsofactivitiesshouldbesharedequitablyhasbeenadvancedinseveralcontextsoverthedecades.Indevelopmentprojects,benefitsharingmecha-nismshavethreekeyrationales,whichareofteninterconnected,asshowninFigureES-1:economic—toprovideeconomicbenefitstoabroadrangeofstakeholders;equity—toensure“nooneisleftbehind,”withparticularsupportforthosewhomightbeadverselyaffectedbyaproject,aswellaspoorandmarginalizedhouseholdswhomightotherwisefinditdifficulttoaccessbenefits;andriskmanagement—toobtainlocalbuy-inandthusgainasociallicensetooperate.

Equity

Nooneleftbehind

FigureES-1.KeyRationalesforBenefitSharing

Economic

Sharingofeconomicbenefits

Benefit-sharing

RiskManagement

Sociallicensetooperate

TheWorldBankembracedbenefitsharinginrecognitionofseriousshortcomingsintheresettlementandrehabilitationplansincludedinmanyofitsprojects.From1986to1993,theBankfinancedprojectsthatresettled2millionpeople.Amajorstudyofresettlementprojectsfoundthatitwasmorecommonforaffectedpeople’sincometodecline—byasmuchas40percent—thantobefullyrestored,andthatbestresultswereachievedwhenprojectsenabledresettledpeopletoshareinsomeoftheimmediatebenefits,suchasjobopportunities.

Overtime,theWBGhasbroadeneditsperspectiveonbenefitsharing,recognizingitasawaytomaximizethesustainabledevelopmentimpactofprojects.That,inturn,requiresmovingbeyondmitigationandcompensationtopursuemoreequitableoutcomes,work-ingdirectlywithaffectedcommunities.

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Keyfactorsinbenefitsharingmechanisms

Thereisnoone-size-fits-allapproachtobenefitsharing.Thespecificdesignofeachmechanismshouldbetailoredtothelocalcontext,aswellastothemainobjectives.Still,therearecommonelementsandsomebestpracticesacrosssectors:

Geographicreach:Benefitsharingmechanismstypicallytargetnotjustindividualsdi-rectlyaffectedbyaproject,butthebroaderprojectinfluencearea,recognizingthatimpactscanbefar-reaching.Forinstance,beneficiariescanincludepeoplewhoarelos-ingaccesstonaturalresourcesorforgoingnon-pricedenvironmentalservices(suchasbiodiversity,ortherecreationalorculturalvalueofaparticularplace).Itcanalsoincludepeoplewhoareaffectedindirectlyorthroughcumulativeeffects,orwhocannoteasilyaccessthebenefits(e.g.duetogendernorms,ortolimitedliteracy).

Sourcesandusesoffunds:Benefitsharingcanoccuratanypointinthelifecycleofaproject,andinvolvemonetarytransfersorawiderangeofin-kindbenefits,suchascapacitybuilding,localinfrastructure,orpreferentialhiring.Importantly,benefitsharingcaneitherbeavoluntaryapproachofprojectdevelopersandinvestorsorprescribedbynationallawsorregulations.Beforeaprojectisoperational,fundsforbenefitshar-ingmaycomefromtheprojectcapitalbudgetorfromacorporatesocialresponsibilitybudget.Duringoperation,theymaycomefromtaxes,royalties,and/orprojectequityparticipation.Insomecontexts,specialfundsmaybesetuptoprepareforaproject’seventualend,aimingtoensurea“justtransition”—forexample,todiversifyacommuni-ty’seconomyinanticipationofamine’splannedclosure.

Benefitsharingvs.mitigationmeasures:Whilecompensationandlivelihoodrestorationfocusonoffsettingoravoidingnegativeimpacts,benefitsharingaimstomakelocalcommunitiesbetter-offthantheyusedtobe.Inpractice,thetwomaybeintertwined,asbenefitsharingprogramsaresometimesdesignedasextensionsofmitigationmeasures,

butwhilemitigationmeasuresaretypicallyshort-livedandfocusedonpeoplewhoaredirectlyaffectedbyaproject,benefitsharingcanreachabroaderpopulationandin-volvecontinuousengagementwithcommunitiesthroughoutthelifeoftheproject.

FigureES-2.Compensation,LivelihoodRestoration,andBenefitSharing

Livelihood

Enhancement

e.g.

community

infrastructure

inbroader

projectarea

BenefitSharing

Toshareproject

benefitswitha

widerrangeof

stakeholders,

beyondthose

ressetled/displaced,throughoutthe

lifeoftheproject

LandRent

e.g.landrental

revenuesthoughthelife

oftheproject

Compensation

One-offpaymentstoresettled/

physically

displacedpeopletocompensate

forthelossassetsandlanddueto

theproject

LivelihoodRestoration

Torestore

livelihoodsand

livingstandardsof

resettled/displacedpeoplewholost

incomesources

orotherlivelihoodmeansdueto

project

9

Benefitsharinganddifferentprojectstakeholders:Throughwell-designedbenefitsharingmechanisms,localcommunitiesbecomepartnersinaproject,withastakeinitstimelyandeffectivecompletion.Thismeanstheirinterestsarealignedwiththoseofthegovernmentanddevelopers.Forgovernments,benefitsharingprovidesaframeworkforembeddingsocialequity,humandevelopment,andsustainabilityobjectivesintoin-vestmentsandmaximizingdevelopmentbenefits.Forboththepublicandprivatesector,benefitsharingisalsoimportantforriskmitigation.Forlocalcommunities,inturn,itcanprovideempowermentandagency,strengtheninstitutions,buildcapacities,expandop-portunities,andimprovelocalinfrastructureandservices,amongotherbenefits.

BenefitsharinginWorldBankpoliciesandstandards

Citizenengagementandsocialinclusionarecentralbothtobenefitsharing,andtotheWorldBank’sapproachtoachievingitsstrategicgoalsofpovertyreductionandsharedprosperity.Inparticular,theSocialSustainabilityandInclusionGlobalPracticeoftheWorldBank,createdin2019,promotescommunityempowermentandcommunity-drivendevel-opmentprogramsthatcombineagencyandeconomicempowerment.Benefitsharingac-tivitiesthusfitwellwiththeBank’sagendaonsocialsustainabilityandinclusion.

BenefitsharingisnotexplicitlymandatedbytheBank’sEnvironmentalandSocialFrame-work,launchedin2018,buttheframework’sspiritandobjectivesareconsistentwiththoseofbenefitsharing.Moreover,activitiesbeyondmitigation,topromotethesustainablede-velopmentofproject-affectedcommunities,arenowrequired.Bankstaffaredirectedtoworktonotonly“donoharm,”butmaximizedevelopmentgains,andinthiscontext,theyareaskedtoconsiderbenefitsharingarrangements.However,thisapproachissupportedmainlyinthecontextofresettlement,andforaffectedIndigenousPeoples.

Anotablegapthatwarrantsfurtherattentionisthat,althoughallWBGprojectsareap-

praisedaheadoftimetoassesstheeconomiccostsandbenefitsexpectedtoresultfromprojectimplementation,conventionalcost-benefitanalysestypicallydonotdisaggre-gatetheinformationtodeterminehowdifferentsegmentsofthepopulationmightgainorlose.Guidanceisneededonhowtoassesstheasymmetriccostsbornebypeopleinprojecthostcommunitiesrelativetothosewhoreceiveproject-generatedgoodsandservices(e.g.electricity,watersupply,etc.).

WhybenefitsharingisimportantfortheWorldBank

Bysupportinglocaldevelopment,promotingequitableaccesstoprojectbenefits,andaidinginprojectriskmanagement,benefitsharingcanplayanimportantroleinhelpingtheBankachieveitsstrategicobjectivesofpovertyreductionandsharedprosperity.Itcanhelpensurethatprivatesectoractivitiessupportsustainableandinclusiveeconomic

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development,whilereducingthelikelihoodofprojectdelaysandcostoverruns.Moregenerally,benefitsharingisawaytoexpandtheinclusivenessofinvestments.AndastheWBGsupportscountriesinashifttolong-termdecarbonization,consistentwiththeParisAgreementandtheSustainableDevelopmentGoals,benefitsharingcanhelpen-sureajusttransition.Notably,othermultilateralbanksalsoincreasinglysupportbenefitsharingintheprojectstheyfinance.

ApproachestoBenefitSharingAcrossSectors

BenefitsharingwasfirstmentionedinWBGpoliciesin1990,inthecontextofinvoluntaryresettlements.TheWorldBankhaslongrecognizedthatpeoplewhoareforcedtomovetoclearthewayforaprojectbearadisproportionatecostandshouldatleastbemadewhole,thoughinmostsectors,itisonlysincethemid-2000sthatbenefitsharingap-proacheshavegraduallybeenadoptedinWBG-supportedprojects.

EXTRACTIVEINDUSTRIES

Extractiveprojectscandisproportionatelyaffectlocalpeople,typicallywellbeyondthedirectprojectimpactarea.Notonlymaytheybedisplacedand/orloseaccesstolandandassets—whichisaddressedthroughmitigationandrestorationmeasures—buttheymayexperiencelong-termimpacts,suchasairandwaterpollution,degradedecosys-tems,andnoise.However,extractiveprojectscanalsogeneratelargebenefits,includinglargenumbersofjobs,aswellasimprovedlocalinfrastructure(waterandpowersupply,roads)thatisneededbytheprojects,butcanbeusedbylocalcommunities,too.

TheWBGhasstronglysupportedbenefitsharinginextractiveprojectsforalmosttwodecades.Manycountrieslegallyrequiresomeformofrevenuesharinginextractiveproj-

ects,whichisusuallycollectedbythenationalgovernmentandredistributedtosubna-tionalentitiesorcommunities.Therevenuescanbevolatile,however,subjecttofluctua-tionsincommodityprices,posingchallengesforbenefitsharing.Itisalsorecognizedascrucialtosetasidefundstosupportcommunitieswhenminesareclosed.

HYDROPOWER

Alongwithextractiveindustries,hydropoweristhesectorwherebenefitsharinghasre-ceivedthemostattention,yetthishasnotalwaystranslatedintoeffectivebenefitsharingmechanismsontheground.In2000,theWorldCommissiononDamsrecommendedthatadverselyaffectedpeopleberecognizedasfirstamongthebeneficiariesoftheproject,anda2002WorldBankreportonbenefitsharingproposedthatalongwithcompensatinglocalcommunitiesforquantifiablelosses,projectsshareprofitsgeneratedoverthelongterm,providingdevelopmentbenefitsthatmorethanoffsetanynonquantifiablelosses.

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Sincethen,theBank,theInternationalFinanceCorporation(IFC),andothershavepub-lishedextensiveguidanceandcasestudiestohelpprojectfunders,governments,andtheprivatesectordesigneffectivebenefitsharingmechanisms.Akeyinsightisthatitiscrucialtotailorthemtolocalcircumstances.

OTHERRENEWABLES(SOLAR,WIND,GEOTHERMAL)

Assolar,wind,andotherrenewableenergytechnologieshavematured,theyhavebe-comeincreasinglyattractiveoptionsforsustainabledevelopmentconsistentwithcoun-tries’climategoals.Yettheseprojects,too,haveunevenlydistributedcostsandbenefits.Thus,asinvestmentsinthissectorarescaleduparoundtheworld,thereisagrowingrecognitionoftheneedtoincorporatelocalbenefitsharing.

TheIFChasrecommendedthatprivatedeveloperstakeaprojectlife-cycleapproachtosharingbenefits,withsupportfromtheoutset,throughoperations,todecommissioning.TheSustainableRenewablesRiskMitigationInitiative,ajointeffortbytheBankandinter-nationalpartners,haspublishedguidelinesthatincludekeystepsgovernmentscantaketomaximizeprojects’socioeconomicbenefits,suchaslocalhiring,localcontent,andeco-nomicdevelopment.TheBankandtheIFC’sexperiencehashighlightedtheimportanceofgovernmentinvolvementtomaximizetheimpactofbenefitsharingmeasures.

FORESTRYANDLANDUSE

Whilesomeprojectsinthissectorsharebenefitsbygivingcommunitiessomeofthevaluethatiscommerciallyextracted,othersinvolveperformance-basedpaymentstolocalcommunitiesforcontributingtoobjectivessuchascarbonemissionreductionsorenvironmentalservices.

ManydevelopingcountriesparticipateinReducingEmissionsfromDeforestationandforestDegradation(REDD+)programs,forinstance,whichusebenefitsharingtoincen-tivizelocalcommunitiestosustainablymanagenaturalresourcesandactivelyprotectand/orrestoreforests.Nationalgovernmentstypicallyreceivepaymentsandthenpro-videmonetaryornon-monetarybenefitstovariousstakeholderswhocontributedtotheirachievingthedesiredgoal.Importantly,intheseprojects,thebenefitssharedareentirelyfromcarbonfinance,andtheylastonlyforthedurationofprojectfinancing.

OTHERSECTORS

TheWorldBankhasalsosupportedbenefitsharinginprojectsinothersectorsnotdis-cussedabove,includingsomefeaturedincasestudiesforthisreport,buttheredoesnotappeartobeanycorrespondingsectoralframeworks,policies,oranalyticalworkonbenefitsharing.

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BenefitSharingintheBank’sPortfolio:CaseStudiesandLessonsLearned

FromMarchthroughJuly2021,WorldBankspecialistsacrossdifferentsectors,includingenergy,extractiveindustries,watermanagement,transport,public-privatepartnerships,andsocialdevelopment,wereaskedtohelpidentifysuitablecasestudiesforthisreport.Basedontheirsuggestions,12casestudieswerechosenforreview,covering15projects(inonecasestudy,involvinganelectricitytransmissionlineacrossfourcountries,eachcountryhasitsownbenefitsharingmechanism).Theselectionaimstoprovideagoodsampleofactivitiesacrosssectorsandgeographicareas,buttheoptionswerelimitedbytherelativelyfewoperationswithbenefitsharingactivitiesintheBank’sportfolio.TableES-1summarizestheprojects’keyfeatures.

TableES-1.CaseStudiesandApproachestoBenefitSharing

Casestudy

Description

Approachtobenefitsharing

Energy(electricitytransmission)

1.CentralAsia-South

AsiaElectricity

TransmissionandTradeProject(CASA-1000)

andfourassociatedcommunitysupport

projects(CSPs)in

Afghanistan,Pakistan,KyrgyzRepublicandTajikistan

Electricitytransmissionlineacrossfourcountries;CSPsfundedineachcountrytosupportlocaldevelopment(standaloneprojects)

Benefitsharingbefore/during

constructionandduringoperationsRuralelectrification

Subgrantsforlocalprojects

Capacitybuildingandmobilization

Community-drivendevelopmentapproachBeneficiarycommunitieswithincorridorofimpactbutthecoveragevariesbycountry

Extractiveindustries

2.Miningandthe

PNGSustainable

DevelopmentProgram,PapuaNewGuinea

(PNGSDP)

BenefitsharingfundlinkedtotheoperationoftheOkTedicoppermine

Benefitsharingduringoperationandbeyond

Twoseparateendowmentfunds:one

duringoperationsandonelong-term,

post-mineclosure.Afterchange,only

long-termfundisavailabletoPNGSDP.

FundsprojectsintheWesternProvince

(wheretheoperationislocated)andbeyond

Energyandextractiveindustries

3.TechnicalAssistance

forCapacity

Developmentin

HydropowerandMiningSector,LaoPDR

TAwithsubcomponenttosupportthedraftingofguidelinesforthe

implementationofabenefitsharingtypemechanism—theCommunityDevelopment

Fund—andtheModelMineralDevelopmentAgreement;

however,thesewerenotformallyadoptedbythegovernment

TAtostrengthenexistingregulation

onbenefitsharingandimprovethe

enablingenvironmentforprivatesectorinvestment

13

Casestudy

Description

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