Collaboration for responsibledevelopment of port and mining facilitiesin Southern MadagascarWorld Bank, WashingtonOctober 9th, 2007

Discussion Points

BackgroundConstruction of infrastructure, mine & portSocial IssuesLand acquisition, Community, HIV/AIDS/STDs, Collaboration with PICEnvironmental Issues

Discussion Points

BackgroundConstruction of infrastructure, mine & portSocial IssuesLand acquisition, Community, HIV/AIDS/STDs, Collaboration with PICEnvironmental Issues

Anosy Region and Project Location

Mine Flowsheet750 000 Tpy 25 000 Tpy~ 1 110 000 TpyMSPRutile15 000 Tpy

Discussion Points

BackgroundConstruction of infrastructure, mine & portSocial IssuesLand acquisition, Community, HIV/AIDS/STDs, Collaboration with PICEnvironmental Issues

Discussion Points

BackgroundConstruction of infrastructure, mine & portSocial IssuesLand acquisition, Community, HIV/AIDS/STDs, Collaboration with PICEnvironmental Issues

Primary focus areasResources / PartnershipsHealthQMM, Community & HIV/AIDS/STDsLand Acquisition & DUP ProcessEmploymentTesting, training & local recruitmentLocal procurement & SMEsMigration & Inflation ManagementPIC/Government Cooperation

CommunitiesCommunities affected by the Rio Tinto/QMM project

Resources / PartnershipsPartnerships:Education Clairefontaine, CISCO, UNDP, UNICEFHealth USAID, PSI, Local CommunesHIV/AIDS/STDs USAID, GTZ, CNLS, PSI, Intl HIV/AIDS AllianceMalaria PMI, USAID, CNLPTraining UNDP, PIC, Min. of Education, USAIDSMEs & Micro-Financing USAID, ICAR, BNI, RgionUrban Sanitation CARE, PIC, World Bank, RgionPower, Potable Water, Solid waste PIC, World Bank, Min. of Energy & Mines

HealthQMM:Health within the QMM organisationRecruitment of Intl SOS and establishment of a clinic for employees and their dependents at the permanent camp Protocol, procedures and partnerships for the reduction and prevention of malaria, as well as common intestinal ailmentsPartnership with GTZ and CNLS for the prevention of HIV/AIDS/STDs within QMM and contractor organisations

HealthCommunity:Community Health Objectives 2006 though 2008Ensure the effectiveness of prevention programmes for relatively frequent ailments and diseases in FtD (e.g. malaria and mosquito-borne diseases, dysentery, infantile diarrhea, et al)Contribute to regional public health support (building capacity)Direct community investments (community clinics)Continue to promote public health in neighboring communities (direct community investment)

HealthHIV/AIDS/STDs:Follow-up action on HIV/AIDS/STD prevention:In partnership with: Intl HIV/AIDS Alliance, GTZ, PSI, UNDPTraining of peer educators: 14 employees trained to date, with refreshers and more in-depth training planned.HIV/AIDS/STD training consultant: Peter AdamsImplementation of the CLLS plan (Local HIV/AIDS awareness and prevention council)Capacity building for CSW AssociationDirect community investments (VCT clinics: 3 in place and 1 pending)Voluntary testing campaign, including QMM management in October 2007

Main Community Health Partnersw/ Region w/ PIC support

Land Acquisition & the DUP ProcessDUP (Dclaration dUtilit Publique):In the context of the resettlement processpayment of financial offsets for land and crops to 492 Fort-Dauphin area residents affected by port and road constructionProcess fully compliant with World Bank guidelinesDisbursements of US$ 4 million (MGA 8.2 billion) in 2007implementation of the resettlement action plan (RAP): construction of homes, implementation of related social programmes and accompanying measures.establishment of an objective settlement and claims settlement committee (CRL)

Claims follow-up system:Objectives:For QMM to be keenly aware of local community expectationsTo implement a fair and equitable resettlement plan for PAPs during the construction periodProcess following receipt of claim:

DataCollectionVerificationCorrectiveMeasures(incl. Payment,title to land)2-WayFeedbackCases closed and archivedLand Acquisition & the DUP Process (contd)

EmploymentMaximisation of local employment:Aptitude testing of residents to establish and draw from a pool of local laborEstablishment of procedures and protocols for QMM and contractors to hire local skilled and unskilled labor wherever possibleJob creation to date:QMM 265, of which 235 Malagasy and 30 expat positionsContractors 3 050 positions, of which 1 875 locals, 800 nationals, 375 expatsEstablishment of a local training centre and trades school (CFPTA)Support for local employment initiatives: training of local tourism guides, handicrafts training,

Local Procurement & SMEsInventory of local suppliers of goods and services capable of working to RT/QMM standardsPolicy of favoring local supply wherever possibleFunding of a micro-credit scheme for the local populationInformation sessions with local entrepreneurs on business opportunities generated by the ilmenite projectLocal supply and service contracts for construction, cleaning services, security services, housing, food & beverage (total of roughly 20 companies thus far)Promotion and training of local SMEsDirect contribution to the local economy (2006 & 2007): US$ 12 millionIncl. labour, food and accommodation, materials, services, vehicle hires, Land rental, etc.

Migration & Inflation ManagementMigration action plans:Surveillance of population migration in the greater Fort-Dauphin areaImplementation of system of influx measurement established with the Rgion and communitiesCurrent population of greater Fort-Dauphin area: 55 000 60 000.Estimated 1 500 migrants have settled in the Fort-Dauphin area since 2005 (3% )Capacity building to offset migrationContribution to improved hygiene, including installation of hydrants, water fountains, wash basins, rubbish bins and collectionHIV/AIDS/STD education, in partnership with Intl HIV/AIDS Alliance, GTZ, PSI, UNDPTraining of peer educatorsImplementation of the CLLS anti-HIV/AIDS programmeCapacity building for CSW Association

Migration & Inflation Management (contd)Inflation Action plans:Consultations in progress to implement an inflation monitoring systemSupported by INSTAT and the RgionRegular tracking reportsProvide support to studies on the alleviation of poverty in the Anosy regionIn partnership with: CARE and the RgionFunding provided for studies to establish indices of measurement of local living conditionsPromotion of local produce growing initiatives, food and rice distribution initiative

PIC / Government CooperationKey partners:PIC = Integrated Growth Poles Project, supported by the Word BankUS$ 55 million earmarked for Fort-Dauphin Area, of which US$ 35 million for Port dEhoalaOther partners: Jirama (Min. of Energy & Mines), Min. of Transport, Min. of the Environment, Min. of FinanceSynergies:Power 6th Wartsila generator = 3.8 Mw (current FtD consumption 1.2 Mw)Contributions: QMM financing of 6th genset + transmission & PIC US$ 2 millionWater water treatment and reticulation for the town of Fort-DauphinContributions: QMM US$ 1.0 -1.5 million* & PIC US$ 2 millionRefuse management of solid waste collection and waste siteContributions: TBD* over and above QMMs own requirements

2007 & BeyondSocial & Communities Management Committee (SCMC) initiatives and follow-up programmes:Monitoring of 2007 milestonesCommunications (information/cultural center)Sustainable development (including 2006 report)Community relationsLocal contentResettlement and accompanying programme follow-upInflation/migrationHIV/AIDS/STDsLocal government relations and capacity buildingNGO & World Bank partnerships

Discussion Points

BackgroundConstruction of infrastructure, mine & portSocial IssuesLand acquisition, Community, HIV/AIDS/STDs, Collaboration with PICEnvironmental Issues

Environmental Context and IssuesMadagascar is a highly environmentally sensitivite countryunique biodiversityprimary threat from felling of forests and slash and burn agricultureIncreased demand for land and fuel for agriculture and housingAccelerated deforestation and loss of biodiversity

Littoral Forest degradation

Primary project-related achievementsBiodiversity conservation and monitoringPlant production for rehabilitation and stabilisationEcological restorationSustainable management of natural resourcesSupport for regional environmental initiatives

Biodiversity conservation and monitoring of ecosystems1677 hectares of protected areas created and included into the Systme des Aires Protges de Madagascar (SAPM)70% of Field Guide completed (400 species from littoral forest), with publication in 2008Biodiversity Monograph completed : Biodiversity, Ecology and Conservation of Littoral Ecosystems In South-Eastern Madagascar, Tolagnaro (Fort Dauphin)Seed conservation: roughly 50 lots seeds sent to Millennium Seed Bank (MSB) at KewEnvironmental education: Birdwatching Event with BirdLife in Mandena, Ste Luce & Ivorona

Plant production for rehabilitation and stabilisation100 ha planted in 2007. EMP commitment achieved with 600 ha planted ahead of mining (over 650,000 trees, with exceptional 95% survival rate)Set up Rserve Foncire de Reboisement with CIREEF to secure and manage plantations (above) in the region300,000 vetiver plants produced for road and dune stabilisation2007 plant production on-going for road and infrastructure rehabilitation, as well as landscaping and community planting

Ecological restorationLittoral forest restoration programme on-going : seed harvesting and treatment / plant production in nurseryForest restoration trials on several degraded land parcelsTop soil management and conservation programme ongoing in collaboration with construction teamWetland restoration trials

Sustainable management of natural resourcesCo-management contract (Dina) signed in Ste Luce & Ambatotsirongorongo (21 000 ha)Co-management contract (Dina) in progress in Petriky & Andrakaraka (done)Objective of capacity building for COGE (Comit de Gestion) managementStrenghtening of local agriculture, beekeeping, composting, vegetable production, handicrafts & ecotourism

Support of regional environmental initiativesSigned Phase II of the QMM/USAID partnership (GDA)Support regional nursery (120,000 trees/yr) and regional reforestationSupport regional domestic energy strategySupport local Water and Forest CIREEF in various activitiesPartnership with PIC (WB) on environmental offset (Bay of Ste Luce)

Primary objectivesSet up NPI (Net Positive Impact) strategy in collaboration with Rio Tinto and the BAP (Biodiversity Action Plan) and BPM (Biodiversity Performance Measures)Publish the Monograph book on BiodiversityEstablish Conservation Zones on site and as offset (Petriky, Tsitongambarika, Mahabo)On-going rehabilitation of roads and infrastructuresImplement the Biodiversity Data Base and GISRestructure and upgrade skills of the environmental team

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