By far the fastest growing and most needed area of development is helping communities build the capacity to meet their basic needs such as infrastructure development, training, job creation, health education, sanitation and water supply. Many API member companies with global operations are forming more effective partnerships with communities, regions, host governments and international organizations to address these needs. The oil and natural gas industry plays a key role in cooperative technology development, transfer and capacity building. Often this means helping host communities in many different ways as illustrated in these partnership examples. Capacity building partnerships provide constructive “win-win” relationships between the public and private sectors, with the aim of developing the capability and skills to achieve sustainable development through the use of modern technologies, management systems, a competent workforce and appropriate laws and regulations.
There are numerous examples of capacity building. The Shell Oil Company Foundation recently announced the establishment of the Shell Center for Sustainability at Rice University in Houston. The Center with a $3.5 million endowment will be a hub for collaboration by experts dealing with societal and environmental issues arising as a result of economic activities. The Center will foster opportunities for improvement through new technologies, market-based incentives, and other initiatives. An ExxonMobil affiliate in Nigeria is partnering with the World Bank’s International Finance Corporation (IFC) to support micro-enterprise development and provide small business skills training through IFC’s Support and Training Entrepreneurship Program (STEP). ChevronTexaco is helping transfer western entrepreneurial knowledge to hundreds of local businesses in Kazakhstan. Joining with the United Nations, the European Bank for Reconstruction and Development and the U.S. Government, ChevronTexaco created the Small and Medium Business Enterprise (SME) program. An infrastructure partnership involves BP Solar and the Brazilian Government’s PRODEEM program to address the challenge of providing access to energy in rural areas. Through PRODEEM, stand-alone, clean solar energy is being installed for community-based applications.
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At Anadarko Petroleum’s headquarters in Houston, we’re addressing the city’s most pressing social needs through our involvement with United Way of Texas Gulf Coast. Anadarko employees contribute generously, and the company matches employee donations dollar for dollar. In 2003, Anadarko gave $1.2 million to Houston United Way agencies. Similar efforts took place in Calgary, Rock Springs (Wyoming), Anchorage, and other communities throughout North America.
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When Anadarko made Montgomery County, Texas its permanent home in 2002, the company wanted to make a significant contribution to its new community. Partnering with Habitat for Humanity to provide one of its neighbors with another new home seemed like a perfect fit.
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Alyeska Pipeline has a special relationship with the Alaska Native Community through its Alaska Native Program and its commitment to attain a 20% Alaska Native hire in the company by 2004. The company annually invests considerable sums to support education and development opportunities and provides scholarships to educational institutions, Native organizations or their subsidiaries, and Trans-Alaska Pipeline System (TAPS) contractors. The total commitment amounts to $3.75 million awarded Alaska Native students pursuing higher education since 1996.
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BHP Billiton’s Corporate Community Leadership Program examines impact of community development activities in India.
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We are using the World Bank’s Impoverishment Risk and Livelihood Restoration (IRLR) Model as a planning matrix, to analyse poverty risks and formulate strategies to overcome them. An Advisory Panel provides the project with detailed advice and assistance in programme planning. The Panel is also engaged in an oversight and assurance role throughout the resettlement implementation phase.
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BP is now only a few months away from planned sanction of the Greater Plutonio project, a deep-water development off the coast of Angola in Africa. Oil production from Greater Plutonio is expected to start by early 2007.
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In setting up our new Vietnam operations, BP committed to recruiting and developing a local workforce from the local Vietnamese population.
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Working long hours, but under trained supervision, our employees toiled hard for a week to help build houses for the homeless in Cato Manor, Durban. Habitat for Humanity International is a non-profit organization whose aim is to eliminate substandard housing and homelessness from the world.
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People living in and around Morcote have traditionally felt isolated from regional and national government and their daily lives are threatened by intermittent guerilla activity. BP has taken steps to help them, by establishing an innovative tri-sector partnership for the construction of a 22km road link between Morcote and the town of Nunchia.
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Acting as the lead company for the Psi (Private Sector Initiative) Tanzania, BP has been working with nine different partners from a wide-range of industry sectors to develop and increase the participation of local small and medium enterprises (SMEs) in their supply chains.
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