Angola Petroleum Sector CSR Survey August 2003

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Angola Petroleum Sector CSR SurveyAugust 2003

• Angola Session, International Conference on
  Public Policy for Corporate Social Responsibility

Molly EttenboroughFilippo NardinJim
Shyne Angola Educational Assistance Fund
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World Bank Case StudyAngola Petroleum Sector

• CSR, Public Policy, and the Angolan Oil Industry
• Phase One October 2002 to January 2003
• World Bank Technical Assistance Study/Country
  Mission
• Baseline discussion of public sector roles in
  support of CSR
• Angolanization, local sourcing, affordable energy
  provision, transparency
• Report available at www.aeaf.org/wb/phase-1
• Phase Two June-August 2003
• Survey of CSR practices and public sector roles
• Survey instrument structured in conformance with
  ODIs CSR Diagnostic Tool
• Most sections of Final Report available at
  www.aeaf.org/wb/

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2003 Angola CSR SurveyOverview

• 18 companies targeted, 9 participated
• Use of a standard 4-pages questionnaire
• Most data self-reported, some responses only
  partially completed
• Four main categories of investment
• Social, Environmental, Economic, and Corporate
  Governance
• Respondents elaborated mostly on Social (1),
  followed by Economic (2), Environmental (3),
  and Corporate Governance (4).
• However, in terms of resource commitments,
  rankings are driven by core business concerns
  Economic (1), Environmental (2), Social (3)
  and Corporate Governance (4)

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2003 Angola CSR SurveyCommon CSR Investments

• Economic
• Workforce Angolanization
• Staff training Technical Transfer
• Technical Support to GoA
• Development of local sourcing for procurement
  services
• Environmental
• Environmental Impact Assessments
• Social Impact Assessments
• LNG/LPG projects, flaring
• Spill prevention, mitigation, clean-up

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2003 Angola CSR SurveyCommon CSR Investments

• Social
• Medicine public health
• HIV/AIDS prevention
• Orphan care
• Agricultural extension
• Vocational training
• Corporate Governance
• Most respondents did not list any investments in
  this area
• Others cited EITI (Extractive Industry
  Transparency Initiative) and NEPAD (New
  Partnership for Africa's Development)

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2003 Angola CSR SurveyCurrent Public Sector Roles

• Four categories of public sector roles
• Mandating laws and regulations
• Facilitating incentives and deterrents
• Partnering with business and/or civil society
  and
• Endorsing political support, leadership by
  example
• Most respondents had little to say about current
  public sector roles in any category
• Those who did reply indicated GoA could do more
• Potential sources of bias leading to data-poor
  responses perception of political risk lack of
  knowledge of public sector roles respondent
  fatigue

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2003 Angola CSR SurveyFuture Public Sector Roles

• Mandating laws and regulations
• Clearer, more consistent laws for business
  licensing, land tenure, labor, tax, and
  environment
• More GoA involvement in micro-credit, SME
  development, and local content benchmarking
• Facilitating incentives/deterrents
• Enterprise zone development
• AGOA qualification

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2003 Angola CSR SurveyFuture Public Sector Roles

• Partnering with business and/or civil society
• NEPAD involvement
• Need for more businesses for GoA to partner with
• Better coordination between GoA and business, NGO
  communities
• Endorsing political support, leadership by
  example
• Responses varied greatly
• One saw no role for GoA here
• Only one respondent called for greater
  transparency by GoA

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2003 Angola CSR SurveyFollowing up

• Follow-on activity to cross-check self-reported
  data with data from outside sources (NGOs, GoA,
  local communities, etc.)
• Extend the survey to include most significant
  companies left out in this phase
• Long term establish an ongoing in-country
  project with an Angolan research center to
  publish a CSR report and/or create an Angolan CSR
  web site

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Angola Educational Assistance FundCatholic
University of Angola

• The Angola Educational Assistance Fund (AEAF) was
  created by Citizens Energy in March 1996 as a
  501(c)(3) nonprofit organization to support the
  establishment of the Catholic University of
  Angola (UCAN)
• The Catholic University (UCAN) was inaugurated in
  1999, about 2000 students are attending to date
  (law, economics, computer science, public
  administration)
• In 2002 the Catholic University created an
  independent economic policy research center

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Catholic University ProjectSocial Bonus (1995)

• Objective seed funding for the Catholic
  University
• Oil Exploration Block 1 (One) Social Bonus, 1.2M
• Consortium composed by Mobil, Saga, Energy Africa
  and Citizens Energy worked with Sonangol to
  identify a project with the right size and with
  a positive impact on long-term Angolan
  socio-economic development
• The result was the creation of a support fund
  (AEAF) for to the Catholic University that serves
  its purpose in a transparent and autonomous manner

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Catholic University ProjectOil Production Levy
(1997)

• Objective provide on-going funding for the
  Catholic University to contribute to long-term
  sustainability
• Oil Sector Training Levy Decree 51/97 passed by
  GoA on July 11, 1997 (www.aeaf.org/decrees)
• UCAN receives a contribution amounting to one
  cent of a dollar per barrel of oil produced
• This decree is hailed as creative use by Angola
  of direct revenues from a natural resource to
  fund its own socio-economic development
• Similar decree passed for the A. Neto State
  University

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Catholic University ProjectExpansion beyond
academia (2003)

• Objective creation of an independent economic
  think tank and a business development center
  (OCT01, 2003 to SEP30, 2005)
• One institution with two coordinated activities
• Center for Economic Studies and Scientific
  Research research and discussion of economic
  policies
• Center for Enterprise Development professional
  education, vocational training
• Funding by USAID, ChevronTexaco, UCAN and AEAF
• A collaboration between different organizations
  (government, corporation, academia, nonprofit) to
  creatively use resources to contribute to
  socio-economic development in Angola

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Thank You!

• This presentation is available at
• http//www.aeaf.org/presentations/
• File name 2003-10-08-wb-csr-conference-aeaf.ppt