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Guidance Note 7 – V2Indigenous Peoples

Guidance Note 7 corresponds to Performance Standard 7. Please also refer to the PerformanceStandards 1–6 and 8 as well as their corresponding Guidance Notes for additional information.Bibliographical information on all referenced materials appearing in the text of this Guidance

Note can be found in the References section at the end.

Introduction

1. Performance Standard 7 recognizes that Indigenous Peoples, as social groups with

identities that are distinct from dominant groups in national societies, are often among the

most marginalized and vulnerable segments of the population. In many cases, their

economic, social, and legal status limits their capacity to defend their rights to, and

interests in, lands and natural and cultural resources, and may restrict their ability to

participate in and benefit from development. They are particularly vulnerable if their lands

and resources are transformed, encroached upon by outsiders, or significantly degraded.

Their languages, cultures, religions, spiritual beliefs, and institutions may also be under

threat. As a consequence, Indigenous Peoples may be exposed to different types of risks,

and the impacts associated with project development may be more severe than on non- indigenous communities. This may include loss of identity, culture, and natural resource-

based livelihoods, as well as exposure to impoverishment and diseases.

2. Private sector projects can create opportunities for Indigenous Peoples to participate

in, and benefit from project-related activities that may help them fulfill their aspiration for

economic and social development. Furthermore, Indigenous Peoples may play a role in

sustainable development by promoting and managing activities and enterprises as partners

in development. Government often plays a central role in the management of Indigenous

Peoples’ issues, and clients should collaborate with the responsible authorities in managing

the risks and impacts of their activities .1

____________________________________________________

1

In addition to meeting the requirements under this Performance Standard, clients must comply with applicable

national laws, including those laws implementing host country obligations under international law.

Objectives

To ensure that the development process fosters full respect for the human rights and

the dignity, aspirations, cultures, and natural resource-based livelihoods of Indigenous

Peoples

To avoid adverse impacts of projects on communities of Indigenous Peoples, or when

avoidance is not feasible, to minimize, restore and/or compensate for such impacts

To promote sustainable development benefits and opportunities for Indigenous Peoples

in a culturally appropriate manner

To establish and maintain an ongoing relationship based on informed consultation and

participation with the Indigenous Peoples affected by a project throughout the project’s life-cycle

To ensure the free, prior, and informed consent (FPIC) of the Affected Communities of

Indigenous Peoples on project design, implementation, and expected outcomes when

the special circumstances described in this Performance Standard are present.

To respect and preserve the culture, knowledge, and practices of Indigenous Peoples

G1. IFC recognizes that the rights of Indigenous Peoples are being addressed under bothnational and international law. Under international law, key United Nations (UN) Human Rights



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Conventions (see the References section below) form the core of international instruments thatprovide the rights framework for the world’s Indigenous Peoples. In addition, some countrieshave passed legislation or ratified other international or regional conventions for the protection

of Indigenous Peoples, such as the UN Declaration on the Rights of Indigenous Peoples (2007)and International Labour Organization (ILO) Convention 169, ratified by 17 countries (see ILO169 and the Private Sector, IFC’s practical guide for IFC clients who operate in countries thathave ratified ILO 169). While such legal instruments establish the responsibilities of the states, itis increasingly expected that private sector companies conduct their affairs in a way that woulduphold these rights and not interfere with states’ obligations under these instruments. It is inrecognition of this emerging business environment that IFC expects that private sector projectsfinanced by IFC foster full respect for the human rights, dignity, aspirations, cultures, andcustomary livelihoods of Indigenous Peoples.

G2. The objectives of Performance Standard 7 also underscore the need to avoid adverseproject impacts on Indigenous Peoples’ communities living in the project’s area of influence, orwhere avoidance is not feasible, to minimize and/or compensate for/offset for risks and impacts

through mechanisms that are tailored to the specific characteristics and expressed needs of theIndigenous Peoples, in a manner commensurate with the scale of project risks and impacts, andthe vulnerability of the Affected Communities of Indigenous Peoples.

G3. The client and the Affected Communities of Indigenous Peoples should establish anongoing relationship throughout the life of the project. To this end, Performance Standard 7requires the client to engage in a process of informed consultation and participation. In the highrisks scenarios described in paragraphs 14 through 21 of Performance Standard 7, the client’sengagement process will ensure the Free, Prior and Informed Consent (FPIC) of the AffectedCommunities of Indigenous Peoples on project design, implementation, and expected outcomesas they affect the concerned communities. (See paragraph G24 below) and documentation ofthe successful outcome of such negotiation. Taking into account the Indigenous Peoples’understanding of the changes brought about by a project helps to identify both positive and

negative project impacts. Similarly, the effectiveness of impact avoidance and mitigation andcompensation measures is enhanced if the points of views of affected Indigenous Peoples aretaken into consideration and form part of the project design and decision-making process.

G4. Many Indigenous Peoples’ cultures and identities are inextricably linked to the lands onwhich they live and the natural resources on which they depend. In many cases, their cultures,identities, traditional knowledge, and oral histories are connected to, and maintained through theuse of, and relationships with, these lands and natural resources. These lands and resourcesmay be sacred or have a spiritual significance. Use of sacred sites and other places of culturalsignificance may have important functions for the conservation and sustainable use of thenatural resources upon which Indigenous Peoples rely for their livelihoods and well-being. Thus,project impacts on lands, forests, water, wildlife, and other natural resources may affect theirinstitutions, livelihoods, economic development, and their ability to maintain and develop theiridentities and cultures. Performance Standard 7 sets out specific requirements when projectsaffect these relationships.

Scope of Application

3. The applicability of this Performance Standard is established during the social and

environmental risks and impacts identification process, while the implementation of the

actions necessary to meet the requirements of this Performance Standard is managed

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through the client’s social and environmental management system. These requirements are

outlined in Performance Standard 1.

4. There is no universally accepted definition of “Indigenous Peoples” or “FPIC.” Indigenous Peoples may be referred to in different countries by such terms as “Indigenous

ethnic minorities,” “aboriginals,” “hill tribes,” “minority nationalities,” “scheduled tribes,”

“first nations,” or “tribal groups.”

5. In this Performance Standard, the term “Indigenous Peoples” is used in a generic sense

to refer to a distinct social and cultural group possessing the following characteristics in

varying degrees:

Self-identification as members of a distinct indigenous cultural group and

recognition of this identity by others

Collective attachment to geographically distinct habitats or ancestral territories in

the project area and to the natural resources in these habitats and territories

Customary cultural, economic, social, or political institutions that are separate from those of the dominant society or culture

An indigenous language, often different from the official language of the country or

region in which they reside

6. This Performance Standard applies to groups or communities of Indigenous Peoples

who maintain a collective attachment, i.e., whose identity as a group or community is linked,

to distinct habitats or ancestral territories and the natural resources therein. It may also

apply to groups or communities that have lost collective attachment to distinct habitats or

ancestral territories in the project area, occurring within the concerned group members’

lifetime, because of forced severance, conflict, government resettlement programs,

dispossession of their lands, natural disasters, or incorporation of such territories into an

urban area.

7. The client may be required to seek inputs from one or more qualified experts to

ascertain whether a particular group is considered as Indigenous Peoples for the purpose of

this Performance Standard.

G5. Over the past 20 years, “Indigenous Peoples” has emerged as a distinct category ofhuman societies under international law and in the national legislation of many countries.However, there is no internationally accepted definition of “Indigenous Peoples.” Further theterm ‘indigenous’ may also be considered to be pejorative in certain circumstances. For thisreason, Performance Standard 7 neither defines nor uses the term “Indigenous Peoples” todetermine the applicability of Performance Standard 7. Rather applicability is determined on thebasis of the four characteristics presented in paragraph 5 of Performance Standard 7. Eachcharacteristic is evaluated independently, and no characteristic weighs more than the others. Inaddition, Performance Standard 7 applies to groups or communities, rather than individuals.

G6. Clients will need to exercise judgment in determining whether a group or communitiesshould be considered Indigenous for the purpose of Performance Standard 7. In making thisdetermination, the client may undertake a number of activities, including ethnographic andarchival research, participatory approaches with the affected communities of IndigenousPeoples, assessment of the traditional institutions, and investigation of the applicable nationallaws and regulations, including customary laws, and laws reflecting host country obligationsunder international law. Instances of precedence in recognition of a group or community as



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indigenous should be given due consideration but should not be the sole basis for triggeringPerformance Standard 7. The client should retain qualified social scientists to carry out thiswork.

G7. As part of its social and environmental review process, IFC will form its own professional judgment on the applicability of Performance Standard 7 on the basis of evidence presented bythe client and its own due diligence. IFC will consult with the World Bank from time to time ondevelopments in international and national law and the consistent application of the definition ofIndigenous Peoples to particular groups or communities of people.

G8. The Performance Standard applies to groups or communities of Indigenous Peopleswho maintain a collective attachment to distinct habitats or ancestral territories, and the naturalresources therein. This may include:

communities of Indigenous Peoples who are resident upon the lands affected by theproject as well as those who are nomadic or transhumant and whose attachment to

ancestral territories may be periodic or seasonal in nature

communities of Indigenous Peoples who no longer live on the lands affected by theproject, but who still retain ties to those lands through traditional ownership and/orcustomary usage, including seasonal or cyclical use. This may include IndigenousPeoples resident in urban settings who retain ties to lands affected by a Project

communities of Indigenous Peoples who have lost collective attachment to lands andterritories in the project area of influence as a result of forced severance, conflict,involuntary resettlement programs by governments, dispossession from their lands,natural calamities or incorporation into an urban area, if they are expected to beadversely affected by the project

groups of Indigenous Peoples who reside in mixed settlements, such that the affected

Indigenous People only form one part of the more broadly defined community communities of Indigenous Peoples with collective attachment to ancestral lands in urban

areas

G9. The Performance Standard is applicable to groups and/or communities of IndigenousPeoples who, by virtue of their economic, social, and legal status and/or their institutions,custom, culture and/or language may be characterized as marginalized from mainstreamsociety or disadvantaged in the development process as a result of their identity. Projectsaffecting Indigenous Peoples who are resident within the Project-affected area and who are partof a larger regional population of Indigenous Peoples or who are substantially integrated withmainstream society, are still required to meet the requirements of the Performance Standard.However the requisite mitigation measures (as described in subsequent sections) may be

tailored to the specific circumstance.

G10. Performance Standard 7 addresses vulnerabilities pertinent to Indigenous Peoples. Othervulnerable groups affected economically, socially, or environmentally by project impacts areaddressed through the process of social and environmental risks and impacts identificationprocess, and by the management of social and environmental impacts set out in PerformanceStandard 1 and Guidance Note 1.



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Requirements

General

8. The client will identify, through a social and environmental risks and impacts

identification process, all communities of Indigenous Peoples who may be affected by the

project within the project’s area of influence, as well as the nature and degree of the

expected direct and indirect economic, social, cultural (including cultural heritage

Avoidance of Adverse Impacts

2

), and

environmental impacts on them.

9. Adverse impacts on Indigenous Peoples should be avoided where possible. Where alternatives have been explored and adverse impacts are unavoidable, the client will minimize, restore, and/or compensate for these impacts in a culturally appropriate manner commensurate with the nature and scale of such impacts and the vulnerability of the affected Indigenous Peoples. The client’s proposed actions will be developed with the informed consultation and participation of affected Indigenous Peoples and contained in a

time-bound plan, such as an Indigenous Peoples Development Plan, or a broader community development plan with separate components for Indigenous Peoples .

3

____________________________________________________ 2

Additional requirements on protection of cultural heritage are set out in Performance Standard 8.3

The determination of the appropriate plan will require the input of a qualified expert. A community developmentplan may be appropriate in circumstances where Indigenous Peoples form part of larger affected communities.

G11. The screening phase of the Assessment should identify the existence of communities ofIndigenous Peoples in the project’s area of influence (as defined in paragraph 7 of PerformanceStandard 1) that may be potentially affected by the client’s project. If the screening indicatespotentially adverse impacts on Indigenous Peoples, further analysis should be undertaken tocollect baseline data on those communities, covering key environmental and socio-economicaspects that may be impacted by the project. The analysis should also identify positive impacts

and potential benefits of the project to Indigenous Peoples and consider ways to enhance them.The breadth, depth, and type of analysis should be proportional to the nature and scale of theproposed project’s potential impacts on these communities and the vulnerability of the affectedindigenous peoples. The assessment of vulnerability will include consideration of IndigenousPeoples’ (i) economic, social, and legal status; (ii) their institutions, custom, culture, and/orlanguage; (iii) their dependence on unique natural resources; and (iv) their relationship todominant groups and the mainstream economy. Qualified social scientists should be retained tocarry out such analysis as part of the project’s Assessment. Such analysis should useparticipatory approaches and reflect the views of the affected communities of IndigenousPeoples on expected project risks, impacts, and benefits. Further guidance on possible socialimpacts and mitigation approaches is provided in IFC Good Practice Note: Addressing theSocial Dimensions of Private Sector Projects and guidance on the conduct of cultural,environmental, and social impact assessments is available in the Akwé: Kon Guidelines.

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G12. The social and environmental assessment will be responsive to social identities such asgender and age, and be cognizant of, inter alia:

Marginal or vulnerable groups’ potentially limited economic and social rights as aconsequence of poverty and limited access to economic resources, education andhealth services

the existence of patriarchal traditions and social mores that limit women’s participation inleadership roles and decision making processes and

both historical and current denial of protection and legal rights of indigenous women inpeacetime and during conflict

G13. Because projects can adversely impact Indigenous Peoples’ identity, natural resource-based livelihoods, food security and cultural survival, the priority should be to avoid suchimpacts. Clients should explore viable alternative project designs, consult the affectedcommunities of Indigenous Peoples, and seek advice of social scientists in an effort to avoidsuch impacts.

G14. If adverse impacts are unavoidable, the client will minimize, mitigate, or compensate forthese impacts in a manner commensurate with the nature and scale of impacts and thevulnerability of the affected Indigenous Peoples. The client should prepare an IndigenousPeoples Development Plan outlining the actions to minimize, restore or and/or compensate foradverse impacts in a culturally appropriate manner. Depending on local circumstances, a free-standing Indigenous Peoples Development Plan may be prepared, or it may be a component ofa broader community development plan where communities of Indigenous Peoples exist in thesame area with other similarly affected communities or where the Indigenous Peoples areintegrated within a larger affected population. These plans should detail actions to minimize,mitigate, and/or compensate for adverse social and economic impacts, and to identify

opportunities and actions to enhance positive impacts of the project on the Indigenous Peoples.Where appropriate, the plan may also include measures to conserve and manage the naturalresources on which they depend on a sustainable basis, consistent with PerformanceStandard 6. These plans become part of the Action Plan (as outlined in Performance Standard 1and its accompanying Guidance Note) to be implemented by the client, and should include aclear statement of roles and responsibilities, funding and resource inputs, a time-boundschedule of activities, and a budget. Recommended contents of an Indigenous PeoplesDevelopment Plan can be found in Annex 1. Further guidance on community developmentprograms is provided in IFC’s Community Development Resource Guide: Investing in People:Sustaining Communities through Improved Business Practice.

10. The client will establish a relationship of informed consultation and participation

with the Affected Communities of Indigenous Peoples from as early as possible in the project planning and maintain it throughout the project life cycle. The process of

engagement with the communities of Indigenous Peoples will be culturally appropriate and

commensurate with the risks and potential impacts to the Indigenous Peoples. In particular,

the process will:

Inform Consultation and Participation

Involve Indigenous Peoples’ representative bodies and organizations (e.g., councils of

elders or village councils), as well as members from the communities of Indigenous

Peoples

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Enable members of Indigenous Peoples’ communities to become aware of, have access

to, and understand project information (including the project’s social and environmental

impacts) and have the opportunity to engage with the client

Be inclusive of both women and men and of various age groups in a culturally appropriate manner

Provide sufficient time for Indigenous Peoples’ decision-making processes

Facilitate the Indigenous Peoples’ expression of their views, concerns, and proposals in

the language of their choice, without external manipulation, interference, or coercion,

and without intimidation

4

Ensure that the grievance mechanism established for the project, as described in

Performance Standard 1, is culturally appropriate and accessible for Indigenous

Peoples ________________________________________ 4

Internal decision making processes are generally but not always collective in nature. There may be internaldissent, and decisions may be challenged by some in the community. The consultation process should besensitive to such dynamics and allow sufficient time for internal decision making processes to reach conclusionsthat are considered legitimate by the majority of the concerned participants

G15. The client should engage with the affected communities of Indigenous Peoples withinthe project’s area of influence through a process of information disclosure and informedconsultation and participation. The general characteristics of engagement with affectedcommunities are described in Performance Standard 1 and the accompanying Guidance Note,and are further described below as they apply to Indigenous Peoples. Further guidance onengagement processes is provided in Stakeholder Engagement: A Good Practice Handbook forCompanies Doing Business in Emerging Markets.

G16. The process of informed consultation and participation entails consultation that occursfreely and voluntarily, without any external manipulation, interference or coercion, and withoutintimidation. In addition, the affected communities of Indigenous

Peoples should have access torelevant project information prior to any decision making that will affect them, includinginformation on potential adverse environmental and social impacts affecting them at each stageof project planning, implementation, and operation and decommissioning.

G17. Clients should adopt informed consultation and participation approaches that rely onexisting customary institutions and collective decision making processes utilized by IndigenousPeoples. In many cases, community elders or leaders, who are not necessarily the electedofficials of these communities, play a key role. However, clients should also keep in mind thatthe communities of Indigenous Peoples are not necessarily homogeneous and there can bedivergent views and opinions within communities of indigenous women and men.1 Furthermore,some segments of the community such as women, youth, and the elderly, may be morevulnerable than others. The consultation should take into account the interests of thesesegments in the community while being cognizant of traditional cultural approaches that may

exclude segments of the community from the decision-making process. In some cases, theaffected communities of Indigenous Peoples may require communication or consultation withintheir communities consistent with their traditional or customary practices.

G18.

1ILO Convention 169 on Indigenous and Tribal Peoples Convention points out that workers belonging to these peoples enjoy equal

opportunities and equal treatment in employment for men and women, and protection from sexual harassment.

Informed consultation and participation processes with and within affected communitiesof Indigenous Peoples may span over a period of time. Adequately informing the members of

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the indigenous community about the project’s potential adverse impacts and proposedmitigation measures may involve an iterative process over time with various segments of thecommunity. Thus, (i) consultation should start as early as possible in the assessment stage; (ii)

project information should be made available in understandable format, using the indigenouslanguages where appropriate; (iii) the communities should have sufficient time for consensusbuilding and developing

responses to project issues and options that benefit their community;and (iv) clients should allocate time to fully consider and address Indigenous Peoples’ concernsand suggestions about the project into the project design and implementation.

G19. The client may consider effective communication and capacity building programs toenhance the effectiveness of the informed consultation and participation process withIndigenous Peoples and their informed participation in key aspects of the project. For example,the client should seek active participation of the affected communities of Indigenous Peoplesthroughout the key stages of the assessment process on matters that pertain to them. EnablingIndigenous Peoples’ access to legal advice about their rights and entitlements to compensation,due process, and benefits under national law is an effective way of building knowledge and

capacity within the affected communities. In cases where no established decision makingprocess or leadership exists within the affected communities, the client may need to facilitate aculturally appropriate decision-making process for such communities, with the participation ofthe communities. Further capacity building and involvement in areas such as participatorymonitoring and community development may prove useful to enable Indigenous Peoples to fullyparticipate in, and benefit from, private sector developments.

G20. When a project with adverse impacts to affected communities of Indigenous Peoples,but not triggering FPIC requirement involves IFC’s financing, IFC will review the client’sdocumentation of its community engagement process. Before presenting the project forapproval to its Board of Directors, IFC will ascertain that:

the client’s community engagement has involved informed consultation and

participation with affected communities of Indigenous Peoples

this process has enabled the informed participation of affected communities ofIndigenous Peoples; andthis process has lead to broad community support (BCS) for the project among theaffected communities of Indigenous Peoples

G21. BCS is a collection of expression by the affected communities, through individualsand/or their recognized representatives, in support of the project. There may be BCS even ifsome individuals or groups object to the project. Additional guidance on BCS can be found inGuidance Note 1 and IFC’s Environmental and Social Review Procedure.

G22. Affected communities of Indigenous Peoples should be enabled to raise and receive

client responses to grievances and complaints. The client may utilize the general grievancemechanism for the project in accordance with the requirements of Performance Standard 1 or agrievance mechanism specifically dedicated to affected Indigenous Peoples that meets therequirements of Performance Standard 1 to achieve this objective. The grievance mechanismshould be culturally appropriate and should not interfere with any existing processes orinstitutions within the affected communities of Indigenous Peoples to settle differences amongthem. The grievance mechanism should provide for fair, transparent, and timely redress ofgrievances at no cost, and if necessary provide special provisions for women, youth and the



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elderly. As part of the engagement process, affected communities of Indigenous Peoples

shouldbe informed of the client’s grievance mechanism.

G30 to G33 cover issues related to consultations with adversely affected indigenous Peopleswhere FPIC requirement is triggered.

Mitigation, Compensation, and Development Benefits

11. The client and the Affected Communities of Indigenous Peoples will identify mitigation

measures (avoidance, minimization, restoration and/or compen sation) in alignment with the

mitigation hierarchy described in Performance Standard 1 as well as opportunities for

culturally appropriate and sustainable development benefits. The client will ensure the

timely and equitable delivery of agreed measures to the Affected Communities of

Indigenous Peoples.

12. Mitigation measures including the determination, delivery, and distribution of

compensation and other benefit sharing measures to affected Indigenous Peoples will take account of the laws, institutions, and customs of the Affected Communities of Indigenous

Peoples as well as their level of interaction with mainstream society. Eligibility for

compensation can either be individually or collectively-based, or be a combination of both.5

Where compensation occurs on a collective basis, mechanisms that promote the effective

delivery and distribution of compensation to all eligible members of the group will be

defined and implemented.

13. Various factors including, but not limited to, the nature of the project, the project

context and the vulnerability of the affected Indigenous Peoples will determine how

Indigenous Peoples should benefit from the project. Identified opportunities should aim to

address the goals and preferences of the Indigenous Peoples including improving their

standard of living and livelihoods in a culturally appropriate manner, and to foster the long-

term sustainability of the natural resources on which they depend.

_______________________________5

Where control of resources, assets and decision making are predominantly collective in nature, efforts will bemade to ensure that benefits and compensation are collective where possible, and take account ofintergenerational differences and needs.

G23. Affected Indigenous Peoples may comprise multiple groups and different social units(e.g., individuals, clans, tribes, etc.) within these groups. The project may impact upon the socialunits in different ways. For example, land take may affect all members’ access to and use ofland and resources while specifically impacting the land claims of only one clan, as well as anycurrent use of the resources. The social assessment should form the basis of identifyingaffected groups and understanding the nature of specific impacts.

G24. Eligibility for compensation may either be individual or collectively-based, or be acombination of both. For example, with regard to land and natural resources, eligible IndigenousPeoples may include community members with hereditary rights of resource ownership andmanagement, members with use rights, and members currently utilizing the resource.Determination of eligibility and the appropriate structure and mechanisms for the delivery andmanagement of compensation should take account of the results of the social assessment; thelaws, institutions, and customs of the affected Indigenous Peoples; the direct and inducedchanges which the project will bring upon the affected Indigenous Peoples including changingrelations with mainstream society; and international best practice.



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G25. The Client, together with the Indigenous Peoples groups, will design appropriate mitigationand compensation mechanisms and simultaneously develop the human resource capacity of

the affected Indigenous Peoples so as to ensure the protection, sustainable management, andcontinued delivery of these benefits. This will require adequate consideration of the laws,institutions, and customs of the affected Indigenous Peoples together with their relation tomainstream society.

G26. Where replacement land and resources are provided to the affected Indigenous Peoples,legally valid and secure forms of land tenure security should be provided. Allocation of land titlesmay occur on an individual or a collective basis based on results of the social assessment; thelaws, institutions and customs of the affected Indigenous Peoples; and the direct and inducedchanges that the project will bring upon the affected Indigenous Peoples, including changingrelations with mainstream society.

G27. Private sector operations may provide unique opportunities for Indigenous Peoples’ own

development. In general, these development opportunities are offered as part of an overallapproach to mitigate and compensate for adverse impacts of a project, and in proportion to thepotential adverse impacts upon, and the vulnerability of, the Indigenous Peoples. In large scaleprojects, the client should be able to offer a more comprehensive set of development benefits,as part of its community or regional development effort, or effort to stimulate local enterprisesand economy. The client may also look for opportunities to support existing programs tailored todeliver development benefits to Indigenous Peoples, such as bilingual educational programs,maternal, and child health and nutrition programs, employment generation activities, and thearrangement for micro-credit schemes.

G28. The Client may support various development opportunities for Indigenous People. Thesemay include: (i) supporting the strengthening of local legislation, as needed, to establish legalrecognition of the customary or traditional land tenure systems of Indigenous Peoples;

(ii) supporting the development priorities of Indigenous Peoples through programs (such ascommunity-driven development programs and locally managed social funds) developed bygovernments in cooperation with Indigenous Peoples; (iii) addressing the gender andintergenerational issues that exist among many Indigenous Peoples, including the special needsof indigenous women, youth, and children; (iv) preparing participatory profiles of IndigenousPeoples to document their culture, demographic structure, gender and intergenerationalrelations and social organization, institutions, production systems, religious beliefs, andresource use patterns; (v) strengthening the capacity of Indigenous Peoples’ communities andIPOs to prepare, implement, monitor, and evaluate development programs and interact withmainstream economy; (vi) protecting indigenous knowledge, including by strengtheningintellectual property rights; and (vii) facilitating partnerships among the government, IndigenousPeoples Organization (IPOs), Civil Society Organizations, and the private sector to promoteIndigenous Peoples’ development programs.

G29. The nature and scale of appropriate development opportunities will vary. It is important toidentify, plan and implement development programs in close consultation with affectedcommunities of Indigenous Peoples. Activities to realize development opportunities forIndigenous Peoples can be effectively delivered as an integrated program either through anIndigenous Peoples Development Plan

or a Community Development Plan. The latter may bemore appropriate where Indigenous Peoples live alongside other affected groups who are notindigenous, but share similar vulnerabilities and related livelihoods.



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Special Circumstances Requiring Free, Prior, and Informed Consent

14. Because Indigenous Peoples may be particularly vulnerable to the loss of, alienation

from or exploitation of their land and access to natural and cultural resources, the following

Special Requirements will apply, in the circumstances indicated below, in addition to the General Requirements of this Performance Standard. When any of these Special

Requirements apply, the client will retain qualified and experienced external experts to

assist in the identification of the project risks and impacts.

15. In projects with special circumstances described below, the client will obtain the FPIC

of the Affected Communities of Indigenous Peoples on proje ct design, implementation, and

expected outcomes. This process builds on and expands the process of informed

consultation and participation described above, and will be established through good faith

negotiation between the client and culturally appropriate institutions representing

communities of Indigenous Peoples. The client will document (i) the mutually accepted

process between the client and Indigenous Peoples, and (ii) evidence of agreement between

the parties as the outcome of the negotiations. This requires agreement by the culturally

appropriate decision-making body within the affected community of Indigenous Peoples,

representing and communicating an agreement seen as legitimate by the majority. Consent

does not necessarily require unanimity and may be achieved even when individuals or sub-

groups explicitly disagree.

16. The special circumstances requiring FPIC are when projects (i) are to be located on or

make commercial use of natural resources on lands subject to traditional ownership and/or

under customary use by Indigenous Peoples; (ii) require relocation of Indigenous Peoples

from traditional or customary lands; or (iii) involve commercial use of Indigenous Peoples’

cultural resources.

17. Indigenous Peoples are often closely tied to their lands and natural resources

Impacts on Lands and Natural Resources Subject to Traditional Ownership or Under

Customary Use 6

thereon.

Frequently, these lands are traditionally owned or under customary use 7 . While Indigenous

Peoples may not possess legal title to these lands as defined by national law, their use of

these lands, including seasonal or cyclical use, for their livelihoods, or cultural, ceremonial,

and spiritual purposes that define their identity and community, can often be substantiated

and documented. ______________________________________________

6Examples include marine and aquatic resources timber and non-timber forest products, medicinal plants,

hunting and gathering grounds, and grazing and cropping areas. Natural resource assets, as referred to in thisPerformance Standard, are equivalent to provisioning ecosystem services as described in PerformanceStandard 6.7

The acquisition and/or leasing of lands with legal title is addressed in Performance Standard 5 LandAcquisition and Involuntary Resettlement

18. If the client proposes to locate a project on, or commercially develop natural resources

on lands traditionally owned by, or under the customary use of, Indigenous Peoples, and

adverse impacts 8

can be expected, the client will take the following steps:

Document efforts to avoid and otherwise minimize the area of land proposed for the project.

Document efforts to avoid and otherwise minimize impacts on natural resources and natural areas of importance

9 to Indigenous People.



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If the client intends to purchase or lease land, the client will identify and review all property interests and traditional uses, including those associated with activities described in Paragraph 6, and confirm that the seller/lessor of the property is the true owner of the land.

Ensure that Affected Communities of Indigenous Peoples are informed of their rights with respect to these lands under national laws, including any national law recognizing customary use rights.

Document the Indigenous Peoples’ land use with the assistance of one or more experts in collaboration with the Affected Communities of Indigenous Peoples without prejudicing any Indigenous Peoples’ land claim.

10

o Land-based compensation or compensation-in-kind will be offered in lieu of cash

compensation where feasible.

The assessment of land and natural resource use should be gender inclusive and specifically consider women’s role in the management and use of these resources. The client will offer Affected Communities of Indigenous Peoples compensation and due process in the case of commercial development of their land and natural resources, together with culturally appropriate sustainable development opportunities.

11

o

Project development may be associated with the loss of access to and the loss of natural resources independent of project land acquisition. In such circumstances,

clients should identify measures to ensure continued access to natural resources,

identify the equivalent of replacement resources, or, as a last option, provide

compensation and identify alternative livelihoods.

o Where the client intends to utilize natural resources that are central to the identity

and livelihood of Indigenous People and their usage thereof exacerbates livelihood

risk, the client will explore mechanisms to ensure fair and equitable sharing of

benefits associated with project usage of the resources.

o The client will also consider providing Affected Communities of Indigenous Peoples

with access, usage and transit on land it is developing subject to overriding health,

safety, and security considerations.

_____________________________________________________________________________

8 Such adverse impacts may include impacts from loss of access to assets or resources or restrictions on landuse resulting from project activities.9

‘Natural resources and natural areas of importance’ as referred to in this Performance Standard are equivalentto priority ecosystem services as defined in Performance Standard 6. They refer to those services over whichthe client has direct management control or significant influence, and those services most likely to be sources ofrisk in terms of impacts on Affected Communities of Indigenous Peoples.

10While this Performance Standard requires substantiation and documentation of the use of such land, clients

should also be aware that the land may already be under alternative use, as designated by the hostgovernment.11

If circumstances prevent the client from offering suitable replacement land, the client must provide verificationthat such is the case. Under such circumstances, the client will provide non land-based income-earningopportunities over and above cash compensation to the Affected Communities of Indigenous Peoples.

G30. Over and above the requirement for informed consultation and participation for projectsadversely impacting Indigenous Peoples, projects are required to implement Free, Prior andInformed Consent (FPIC) with the affected communities of Indigenous Peoples with regard toproject design, implementation and expected outcomes if they are associated with any of thepotential adverse impacts identified below:

where projects impact upon lands and natural resources subject to traditional orcustomary use;



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require relocation of Indigenous Peoples from lands or natural resources subject totraditional ownership or under customary use

where project development will impact upon cultural resources, includes natural areas

with cultural and/or spiritual value such as sacred groves, sacred bodies of water andwaterways, sacred trees, and sacred rocks. Natural areas with cultural value areequivalent to priority ecosystem services as defined in Performance Standard 6 that arecentral to the identity and/or cultural, ceremonial, or spiritual aspects of IndigenousPeoples lives; and

where projects make commercial use of cultural resources, knowledge, innovations orpractices of Indigenous Peoples for commercial purposes

G31. FPIC refers to the combination of: (i) mutually accepted process between the Client andIndigenous Peoples, and (ii) evidence of agreement between the parties regarding the outcomeof the negotiations.

G32. FPIC will be established through a process of Good Faith Negotiation (GFN) betweenthe Client and affected communities of Indigenous Peoples Typically GFN involves: (i)willingness to engage in a process and availability to meet at reasonable times and frequency;(ii) provision of information necessary for informed negotiation; (iii) exploration of key issues ofimportance; (iv) use of mutually acceptable procedures for negotiation; (v) willingness to changeinitial position and modify offers where possible; (vi) provision for sufficient time for decisionmaking; and (vii) agreement on proposed compensation framework, mitigation measures anddevelopment interventions. The client should document the process of negotiation with theIndigenous Peoples, including their informed participation in the negotiation process, and thesuccessful outcomes of such negotiation. Impacts on vulnerable groups within the affectedcommunities of Indigenous Peoples should be adequately addressed during negotiation and inrelevant documentation. Examples of such documentation include a memorandum ofunderstanding, a letter of intent, a joint statement of principles, and written agreements. It may

be appropriate to recite or reflect the contents of a Community Development Plan or anIndigenous Peoples Development Plan in such documents or agreements to confirm and clarifythe responsibilities of involved parties with respect to the relevant plan.

G33. In cases involving FPIC, IFC will review the client’s documentation of the negotiationprocess and its agreed outcomes, and engage Affected Communities of Indigenous Peoples toverify that the affected communities of Indigenous Peoples are broadly in support of the project

G34. If issues related to land use as described in paragraph 18 of Performance Standard 7are identified in the screening phase, the client will engage qualified and experienced externalexperts to carry out the Assessment with active participation of the affected communities ofIndigenous Peoples. The Assessment should describe the Indigenous Peoples’ traditional land

and resource tenure system (both individual and collective) within the project’s area of influence.The Assessment should also identify and record all customary use of land and resources,including cultural, ceremonial or spiritual use, and any ad hoc, seasonal or cyclical use of landand natural resources (for example, for hunting, fishing, grazing, or extraction of forest andwoodland products), and any potential adverse impacts on such use. Customary use of landand resources refers to patterns of long-standing community land and resource use inaccordance with Indigenous Peoples’ customary laws, values, customs, and traditions, includingseasonal or cyclical use, rather than formal legal title to land and resources issued by the state.Cultural, ceremonial, and spiritual uses are an integral part of Indigenous Peoples’ relationships



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to their lands and resources, are embedded within their unique knowledge and belief systems,and are key to their cultural integrity. Such uses may be intermittent, may take place in areasdistant from settlements, and may not be site specific. Any potential adverse impacts on such

use must be documented and addressed within the context of these systems. Any informationfrom the client’s Assessment that identifies the existence of critical habitats and critical culturalresources consistent with Performance Standards 6 and 8 within the project area of influencewill be relevant in the analysis and should be taken into account. Indigenous Peoples’ claims toland and resources not legally owned under national law should also be documented as part ofthe Assessment process. No documentation of land claims (or absence of land claim) shouldprejudice existing or future legal proceedings of Indigenous Peoples to establish legal title.

G35. The priority objective of the Assessment

process is to identify measures to avoidadverse impacts on these lands and resources, and Indigenous Peoples usage thereof. Whereavoidance is not feasible, mitigation, and/or compensation measures should be developed toensure the availability of, and access to, the land and natural resources necessary for thelivelihood and cultural survival of the affected communities of Indigenous Peoples. The client

should offer at least the same level of compensation and due process that it will offer to thosewith full legal title in the jurisdiction. Land-based compensation should be preferred, providedthat suitable land is available. In addition, the client should observe due process, such asappropriate notification and responses to inquiries, for the affected communities of IndigenousPeoples. In some cases, land under Indigenous Peoples’ claim may already be designated bythe host government for alternate uses, which may include nature reserves, mining concessionareas, or as individual land users who have obtained title to the land. In this case, the clientshould seek to involve the relevant government agency in any consultation and negotiation withthe affected communities of Indigenous Peoples.

G36. Whether the project should proceed with the potential adverse impacts on these landsshould be subject to securing the FPIC of the affected communities of Indigenous Peoples. Insome cases, it may be possible for the client to work with a national governmental agency to

facilitate the legal recognition of lands claimed or used by affected communities of IndigenousPeoples in connection with land titling programs of the government. The client can base thiswork on the customary land tenure information gathered during the Assessment process andhelp the affected communities or members of the affected communities to pursue land titles, ifthe Indigenous Peoples so request and participate in such programs. Examples of such bestpractice in IFC-financed projects are available from IFC.

19. The client will consider feasible alternative project designs to avoid the relocation of

Indigenous Peoples from communally held

Relocation of Indigenous Peoples from Lands and Natural Resources Subject to Traditional

Ownership or Under Customary Use

12

______________________________________________________

lands and natural resources subject to

traditional ownership or under customary use. If such relocation is unavoidable the client

will not proceed with the project unless FPIC has been obtained as described above. Any

relocation of Indigenous Peoples will be consistent with the Resettlement Planning and

Implementation requirements of Performance Standard 5. Where feasible, the relocated

Indigenous Peoples should be able to return to their traditional or customary lands, should

the cause of their relocation cease to exist .

12 Typically, Indigenous Peoples claim rights, access, and use of land and resources through traditional orcustomary systems, many of which entail communal property rights. These traditional claims to land andresources may not be recognized under national laws. Where members of the Affected Communities ofIndigenous Peoples individually hold legal title, or where the relevant national law recognizes customary rights



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for individuals, the requirements of Performance Standard 5 will apply, rather than the requirements underparagraph 17 of this Performance Standard.

G37. Because physical relocation of Indigenous Peoples is particularly complex and may havesignificant and irreversible adverse impacts on their cultural survival, the client is expected tomake every effort to explore feasible alternative project designs to avoid any physical relocationof Indigenous Peoples from their communally held traditional lands or customary lands underuse. The potential relocation may result from the project’s acquisition of land, or throughrestrictions or alterations on land use or resources (for example, where the communally heldtraditional lands or customary lands under use by Indigenous Peoples are designated by therelevant government agency for another use in conjunction with the proposed project, such asestablishment of protected areas for resource conservation purposes). Any physical relocationshould only be considered after the client

has established that there is no feasible alternative toavoid relocation and the client has secured the FPIC of the affected communities of IndigenousPeoples building on the process of their informed participation. In addition, IFC will evaluate theclient’s documentation of its engagement process to establish that broad community support for

the project exists among the affected communities.

G38. In case the host government has made the decision to relocate Indigenous Peoples,consultation with relevant government officials would be important to understand the rationalefor such relocation, and whether a good faith negotiation based on informed participation of theIndigenous Peoples has been implemented and successfully concluded regarding the aspectsof the project and the relocation affecting communities of Indigenous Peoples, prior to thedecision to finance the project.

G39. Upon conclusion of the FPIC process providing for the relocation of Indigenous Peoples,the client will prepare a Resettlement Action Plan consistent with the conclusion of thenegotiation and in accordance with the paragraphs 14 through 16 of Performance Standard 5.The client should be guided by paragraph 18 of Performance Standard 7 on the level of

compensation for land. Such Plan should include a provision to allow the affected communities,where possible and feasible, to return to their lands when the reasons for their relocation ceaseto exist.

G40. The requirements under Performance Standard 7, paragraph 18, are intended forsituations where traditional owned lands or customary usage of resources is held and used byIndigenous Peoples communally. Where individual members of the affected communities ofIndigenous Peoples hold legal title, or where relevant national law recognizes customary rightsfor individuals, the requirements of Performance Standard 5 will apply. However, even whereindividuals within the affected communities of Indigenous Peoples hold legal title to landindividually, the client should be aware that the decision of relevant individuals to cede title andto relocate may still be subject to a community-based decision making process, as these landsmay be not be considered private property but ancestral lands.



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20. Where a project may impact upon cultural resources

Cultural Resources 13

that are central to the identity

and/or cultural, ceremonial, or spiritual aspects of Indigenous Peoples lives, priority will be given to avoidance of such impacts through retention of cultural resources. Where

significant project impacts on cultural property are unavoidable, the client will obtain the

FPIC of the Affected Communities of Indigenous Peoples.

21. Where a project proposes to use the cultural resources, knowledge, innovations, or

practices of Indigenous Peoples for commercial purposes, the client will inform the

Indigenous Peoples of (i) their rights under national law; (ii) the scope and nature of the

proposed commercial development; and (iii) the potential consequences of such

development and obtain their FPIC. The client will also ensure fair and equitable sharing of

benefits from commercialization of such knowledge, innovation, or practice, consistent with

the customs and traditions of the Indigenous Peoples . _________________________________________________________________________

13

Includes natural areas with cultural and/or spiritual value such as sacred groves, sacred bodies of water andwaterways, sacred trees, and sacred rocks. Natural areas with cultural value are equivalent to priorityecosystem services as defined in Performance Standard 6

G41. Knowledge, innovations, and practices of Indigenous Peoples are often referred to asintangible cultural heritage in international conventions. Knowledge, innovations, and practicesof Indigenous Peoples often remain in use for sacred or ritual purposes, and can be held secretby the community or designated members. Commercial development of intangible culturalheritage is the subject of current international discussions, with international standardsemerging slowly. The one exception is in the commercial use of genetic resources andassociated traditional knowledge of indigenous or traditional communities as reflected in theConvention on Biological Diversity in which women’s unique role in preserving and managingbiological diversity is also mentioned. Useful guidance in this area is provided by the Bonn

Guidelines and the Akwé Kon Guidelines issued under the Convention on Biological Diversity(see the References section). Examples of commercial development include commercializationof traditional medicinal knowledge or other sacred or traditional techniques for processingplants, fibers or metals. Expressions of folklore, such as sale of art or music, should be treatedin accordance with national law.

G42. Where such resources are proposed for commercial development, the Client willinvestigate whether ownership of local or indigenous knowledge or items is individual orcollective prior to entering into any agreements with local intellectual property-relatedindigenous knowledge holders. The Client should use expert and unbiased information toconclude negotiations to get the informed agreement of local and indigenous knowledgeholders, even if ownership of the item is in dispute. The client should document the FPIC of theaffected Indigenous Peoples’ communities on the proposed commercial development, in

addition to any requirements pursuant to national law. Some national laws require the consentof Indigenous Peoples’ communities in this regard.

G43. If the client wishes to exploit and develop any knowledge, innovation or practices ofIndigenous Peoples for commercial purposes and to protect any intellectual property createdfrom such development, the client may be legally required to disclose or publicly release thesource of the materials. Examples include genetic materials proposed for medical application.Because such information, processes, and materials may be used for sacred or ritual purposesby communities of Indigenous Peoples, and may ordinarily be kept secret by such communities

http://www.biodiv.org/default.aspx


http://www.biodiv.org/doc/publications/cbd-bonn-gdls-en.pdf












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or designated members thereof, the client should seek the informed consent of the owner(s)before using it, and in any event, enable the relevant communities to continue to use the geneticmaterials for customary or ceremonial purposes.

G44. Where a project proposes to exploit, develop, and commercialize intangible culturalheritage, Performance Standard 7 requires that the client share the benefits accruing from suchuse with the affected community of Indigenous Peoples. Benefits should be determined as partof the process of securing FPIC. Benefits may include development benefits in the form ofemployment, vocational training, and benefits pursuant to community development and similarprograms.

G45. Clients should obtain the informed consent of the designer(s) or owner(s) to use a locallysourced industrial design

, with special care for Indigenous People's special rights. Further,clients should be aware that use of indigenous names, photographs, and other items depictingthem and the environment in which they live can be sensitive. It is good practice that the Clientconsult with the relevant communities before using such items even for such purposes as

naming project sites, pieces of equipment.

G46. Clients should refer to similar requirements and guidance available in PerformanceStandard 8 and Guidance Note 8 with respect to the cultural heritage of communities other thanthose of Indigenous Peoples.

Private Sector Responsibilities Where Government is Responsible for Managing Indigenous

Peoples Issues

22. Where the government has a defined role in the management of Indigenous Peoples

issues in relation to the project, the client will collaborate with the responsible government

agency, to the extent feasible and permitted by the agency, to achieve outcomes that are

consistent with the objectives of this Performance Standard. In addition, where government

capacity is limited, the client will play an active role during planning, implementation, and monitoring of activities to the extent permitted by the agency .

23. The client will prepare a plan that, together with the documents prepared by the

responsible government agency, will address the relevant requirements of this Performance

Standard. The client may need to include (i) the plan, implementation, and documentation of

the process of informed consultation and engagement and FPIC where relevant; (ii) a

description of the entitlements of affected Indigenous Peoples; (iii) the measures proposed

to bridge any gaps between such entitlements, and the requirements of this Performance

Standard; and (iv) the financial and implementation responsibilities of the government

agency and/or the client .

G47. Host governments may reserve the right to manage Indigenous Peoples’ issues

associated with a project. Nevertheless, the outcome of this process should be consistent withthe requirements of Performance Standard 7. In such cases, clients should offer to play anactive role during the preparation, implementation and monitoring of the process and shouldcoordinate with the relevant government authorities those aspects of the process that can befacilitated more efficiently by the client or other agents such as consultants or CSOs. Whetherthe client will be permitted to play an active role will depend in part on the applicable nationallaw, and the judicial and administrative processes and practices of the responsible governmentagency.



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G48. Because there is a risk of impoverishment from loss to the livelihood or income base ofthe affected people or communities, IFC will review the processes of land acquisition and,where relevant, resettlement to ascertain consistency with Performance Standard 7 (and where

relevant Performance Standard 5). Where IFC ascertains that the outcome of the government-managed process is not likely to meet the requirements of Performance Standard 7, IFC maynot proceed with the proposed financing of the project.

G49. Under certain circumstances, a client may be provided with an unoccupied project site,unencumbered of any current claims, by a government agency or other authority. If sitepreparation has occurred in anticipation of the project, but not immediately preceding projectimplementation, the client should make a determination as to whether the process of securingthe lands and any requisite resettlement has occurred in a manner consistent with therequirements of this Performance Standard (and where relevant Performance Standard 5) and,if not, any corrective action is feasible to address the situation. Under such circumstances, thefollowing factors should be considered: (i) the length of the intervening period between landacquisition and project implementation; (ii) the process, laws and actions by which the land

acquisition and resettlement was carried out; (iii) the number of people affected and thesignificance of the impact of land acquisition; (iv) the relationship between the party that initiatedthe land acquisition and the client; and (v) the current status and location of the people affected.

G50. Where compensation procedures are not addressed under national law or policy, theclient should establish methods for determining adequate compensation and for providingadequate compensation to the affected Indigenous Peoples.

G51. In most cases, the client should collaborate with local government authorities in thedistribution of compensation payments. Those eligible for compensation should be givenadvance notice of the date, time, and place of payments via public announcement. Receiptsshould be signed by all those receiving compensation payments and retained for auditingpurposes. The payment of compensation and resettlement assistance should be monitored and

verified by representatives of the client as well as representatives of the affected communities,which can often include community-based organizations. It may be appropriate for the client andthe government authorities to engage the services of a registered auditing firm to monitorcompensation payments.

G52. Where the responsible agency will enable the client to participate in the ongoingmonitoring of affected persons, the client should design and carry out a program of monitoringwith particular attention to those who are poor and vulnerable so as to track their standards ofliving and effectiveness of compensation, resettlement assistance, and livelihood restoration.The client and the responsible agency should agree to an appropriate allocation ofresponsibilities with respect to completion audits and corrective actions.



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Annex A

Indigenous Peoples Development Plan (IPDP)

The IPDP is prepared in a flexible and pragmatic manner, and its level of detail variesdepending on the specific project and the nature of the effects to be addressed. In general andwhere appropriate, an IPDP should include the following elements:

(a) Baseline information (from Social and Environmental Assessment)

Summary of relevant baseline information that clearly profiles the affected communities, theircircumstances and livelihoods, description and quantification of the natural resources uponwhich the Indigenous Peoples depend.

(b) Key Findings: Analysis of Impacts, Risks & Opportunities (from Social andEnvironmental Assessment)

Summary of key findings, analysis of impacts, risks and opportunities and recommendedpossible measures to mitigate adverse impacts, enhance positive impacts, conserve andmanage their natural resource base on a sustainable basis, and achieve sustainable communitydevelopment.

(c) Result of Consultations (during Social and Environmental Assessment process) andFuture Engagement

Description of the process of i

nformation disclosure, consultation and informed participation withthe affected communities of Indigenous Peoples, and how issues raised have been addressed.The consultation framework for future engagement should clearly describe the process for on-

going consultations with, and participation by Indigenous Peoples (including women and men),in the process of implementing and operating the project.

(d) Avoid, Minimize, and Mitigate Negative Impacts and Enhance Positive Impacts

Clearly describe the measures agreed to in the process of i

nformation disclosure, consultationand informed participation to avoid, minimize and mitigate potential adverse effects onIndigenous Peoples, and to enhance positive impacts. Include appropriate action times thatdetail the measures to be taken, responsibilities and agreed schedule and for implementation(who, how, where and when) (refer to Performance Standard 1 and Guidance Note 1 for moredetails of the contents of an Action Plan). Whenever feasible, avoidance or preventativemeasures should be given primacy over mitigatory or compensatory measures.

(e) Community Based Natural Resource Management Component

Where applicable, this component should focus on the means to ensure continuation oflivelihood activities key to the survival of these communities and their traditional and culturalpractices. Such livelihood activities may include grazing, hunting, gathering, or artisanal fishing.This component clearly sets out how the natural resources upon which the affectedcommunities depend, and the geographically distinct areas and habitats in which they arelocated, will be conserved, managed and utilized on a sustainable basis.



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(f) Measures to Enhance Opportunities

Clearly describe measures to enable Indigenous Peoples to take advantage of opportunities

brought about by the project, and to conserve and manage on a sustainable basis the utilizationof the unique natural resource base upon which they are dependent. Such opportunities shouldbe culturally appropriate.

(g) Grievance Mechanism

Describe appropriate procedures to address grievances by affected Indigenous Peoples arisingfrom project implementation and operation. When designing the grievance procedures, theclient will take into account the availability of judicial recourse and customary dispute settlementmechanisms among the Indigenous Peoples. Affected communities (both women and men)must be informed of their rights and the possibilities of administrative and legal recourse orremedies, and any legal aid available to assist them as part of the process of consultation andinformed participation. The grievance mechanism should provide for fair, transparent and timely

redress of grievances without costs, and if necessary provide for special accommodations forwomen, youth and the elderly, and other vulnerable groups within the community to makecomplaints.

(h) Costs, budget, timetable, organizational responsibilities

Include an appropriate summary of costs of implementation, budget and responsibility forfunding, timing of expenditure and organizational responsibilities in managing and administeringproject funds and expenditures.

(i) Monitoring, Evaluation & Reporting

Describe monitoring, evaluation and reporting mechanisms (including responsibilities,

frequencies, feedback and corrective action processes). Monitoring and evaluation mechanismsshould include arrangements for on-going i

nformation disclosure, consultation and informedparticipation with the affected Indigenous Peoples (both women and men)



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References

The requirements set out in the Performance Standard relate to the following international

convention and guidelines:

The six UN Conventions of relevance to indigenous peoples are as follows:

International Covenant on Civil and Political Rights International Covenant on Economic, Social and Cultural Rights International Convention on the Elimination of All Forms of Racial Discrimination Convention on the Rights of the Child Convention Against Torture and Other Cruel, In human or Degrading Treatment of

Punishment Convention on the Elimination of All Forms of Discrimination Against Women

A list of the six UN Conventions and the countries that have ratified each of them is available at:http://www.ohchr.org/english/law/index.htm . The ratification status of each convention bycountry is available at: http://www.unhchr.ch/pdf/report.pdf

The following conventions and guidelines are also of relevance:

UN Declaration on the Rights of Indigenous Peoples 61/295 (UN, 2007)

ILO Convention on Indigenous and Tribal Peoples (No. 169) (ILO, 1989)http://www.ilo.org/ilolex/cgi-lex/convde.pl?C169

ILO Convention on Indigenous and Tribal Peoples (No. 169): A Manual (ILO, 1989)

provides definitions and useful guidance on ILO Convention 169 on Indigenous andTribal Peoples.http://www.ilo.org/public/english/standards/norm/egalite/itpp/convention/manual.pdf

UNIFEM Fact Sheet. At a Glance – Securing Indigenous Women’s Rights and Participation, http://www.inifem.org/materials/fact_sheets.php?StoryID=288

Convention on Biological Diversity (1992) - provides information on the convention,lists of signatory nations and biodiversity experts and other useful information.http://www.biodiv.org/default.aspx

Bonn Guidelines on Access to Genetic Resources and Fair and Equitable Sharing of

the Benefits Arising Out of their Utilization (Secretariat of the Convention onBiological Diversity, 2002) guidelines on establishing legislative, administrative orpolicy measures on access and benefit-sharing and/or when negotiating contractualarrangements for access and benefit-sharing.http://www.biodiv.org/doc/publications/cbd-bonn-gdls-en.pdf

Akwé: Kon Guidelines (Secretariat of the Convention on Biological Diversity, 2004)voluntary guidelines for the conduct of cultural environmental and social impactassessments regarding developments proposed to take place on, or which are likely

http://www.ohchr.org/english/law/index.htm


http://www.unhchr.ch/pdf/report.pdf




http://www.ilo.org/public/english/standards/norm/egalite/itpp/convention/manual.pdf














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to impact on, sacred sites and on lands and waters traditionally occupied or used byindigenous or local communities.http://www.biodiv.org/doc/publications/akwe-brochure-en.pdf

Operational Policy OP 4.10 - Indigenous Peoples (World Bank, 2005) - underscoresthe need for Borrowers and Bank staff to identify indigenous peoples, consult withthem, ensure that they participate in, and benefit from Bank-funded operations in aculturally appropriate way - and that adverse impacts on them are avoided, or wherenot feasible, minimized or mitigated.http://wbln0018.worldbank.org/Institutional/Manuals/OpManual.nsf/B52929624EB2A3538525672E00775F66/0F7D6F3F04DD70398525672C007D08ED?OpenDocument

In addition, the following documents may provide useful additional guidance.

Guidelines on Indigenous Peoples Issues, United Nations Development Group, 2009

Resource Kit on Indigenous Peoples Issues, UN 2008.(http://www.un.org/esa/socdev/unpfii/documents/resource_kit_indigenous_2008.pdf )

The IFC publication ILO Convention 169 and the Private Sector “(March 2007) isintended as a practical guide for IFC clients who operate in countries that have ratifiedConvention 169 on Indigenous and Tribal Peoples.http://www.ifc.org/ifcext/sutainability.nsf/Content/Publications_Handbook_ILO169

Indigenous Peoples and Mining, Good Practice Guide, ICMM 2010

Overview Report of the Research Project by the International Labour Organization andthe African Commission on Human and Peoples’ Rights on the constitutional and

legislative protection of the rights of indigenous peoples in 24 African countries,International Labour Organization and AfricanCommission on Human and Peoples’,2009.

Stakeholder Engagement: A Good Practice Handbook for Companies Doing Business in Emerging Markets (IFC, 2007) explains new approaches and forms ofengagement with affected local communities.http://www.ifc.org/ifcext/sustainability.nsf/Content/Publications_Handbook_StakeholderEngagement

Projects and People, A Handbook for Addressing Project-Induced In-migration (IFC,2009 – A resource guide exploring the nature of project-induced in-migration and its

potential impacts on host communities, including indigenous peoples http://www.ifc.org/ifcext/sustainability.nsf/Content/Publications_Handbook_Inmigration

Good Practice Note: Addressing the Social Dimensions of Private Sector Projects (IFC, 2003) – A practitioner’s guide to undertaking social impact assessment at theproject level for IFC-financed projectshttp://www.ifc.org/ifcext/sustainability.nsf/Content/Publications _ GPN_SocialDimensions



http://wbln0018.worldbank.org/Institutional/Manuals/OpManual.nsf/B52929624EB2A3538525672E00775F66/0F7D6F3F04DD70398525672C007D08ED?OpenDocument




http://www.un.org/esa/socdev/unpfii/documents/resource_kit_indigenous_2008.pdf



http://www.ifc.org/ifcext/sutainability.nsf/Content/Publications_Handbook_ILO169


http://www.ifc.org/ifcext/sustainability.nsf/Content/Publications_Handbook_StakeholderEngagement



http://www.ifc.org/ifcext/sustainability.nsf/Content/Publications












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Investing in People: Sustaining Communities through Improved Business Practice (IFC, 2001) a resource guide in establishing effective community development

programs. http://www.ifc.org/ifcext/sustainability.nsf/Content/Publications_Handbook_InvestinginPeople

Handbook for Preparing a Resettlement Action Plan (IFC, 2001) provides step-by-step guidance through the resettlement planning process and includes practical toolssuch as implementation checklists, sample surveys and monitoring frameworks. http://www.ifc.org/ifcext/sustainability.nsf/Content/Piblications_Handbook_RAP

A useful treatment of the development of Free Prior and Informed Consent definitions canbe found in:

Development Without Conflict, The Business Case for Community Consent , WRI,

May 2007. (http://www.wri.org/publication/development-without-conflict )

Implementing a Corporate Free Prior and Informed Consent Policy: Benefits and Challenges , A.K. Lehr and G.A. Smith 2010.

Preliminary working paper on the principle of free, prior and informed consent of indigenous peoples in relation to development affecting their lands and natural resources E/CN.4/Sub.2/AC.4/2004/4 (Antoanella-Iulia Motoc and TebtebbaFoundation, 2004).http://www.ohchr.org/english/issues/indigenous/docs/wgip22/4.pdf

http://www.ifc.org/ifcext/sustainability.nsf/Content/Publications_Handbook_InvestinginPeople



http://www.ifc.org/ifcext/sustainability.nsf/Content/Piblications_Handbook_RAP

http://www.wri.org/publication/development-without-conflict



http://www.ohchr.org/english/issues/indigenous/docs/wgip22/4.pdf




http://www.ifc.org/ifcext/sustainability.nsf/Content/Piblications_Handbook_RAP



phase3 gn7 clean

Documents