Social challenge and reasons for project’s initiation

Immediacy of the social problem

There are about 4,000 members of indigenous small-numbered peoples of the North living on Sakhalin Island (about 0.7% of the total population on the island). These belong to four main ethnic groups: Nivkhs, Uilta (Oroks), Evenks and Nanai. In the last few decades, traditional lands of these ethnic minorities have seen intense industrial developments. Thus, we have to consider how we can support the indigenous peoples and help them preserve their identity.

External reasons for project’s initiation

The UN Sustainable Development Goals (SDGs) are a result of unprecedented consultations with all the stakeholders, including indigenous peoples. Considering the universal nature of the SDGs and their key principle, respect for human rights, they imply resolving numerous major problems facing indigenous peoples today. The UN Forum on Indigenous Issues plays the leading role in this work. It monitors progress on SDGs and designs indicators which reflect the interests of indigenous peoples.

 In an effort to adopt the best practices and initiatives on indigenous issues, Sakhalin Energy reviewed its interaction with indigenous minorities on Sakhalin Island in the light of the SDGs. The Company’s flagship program for interaction with indigenous minorities is its Sakhalin Indigenous Minorities Development Plan (SIMDP). The review revealed that most projects and activities that are part of the Plan are already in line with many of the SDGs.

The Plan is based on partnership between the government, business and the people, as stipulated in SDG 17. This partnership is based on a common vision and common goals serving the interests of indigenous minorities.

Internal reasons for project’s initiation

Sakhalin Energy Investment Company Ltd. (Sakhalin Energy, or the Company) operates on Sakhalin Island. Since its establishment in 1994, the Company has paid much attention to social programs. Equal partnerships are an important and indispensable interaction mechanism in social investment. We put emphasis on long-term strategic partnership programs with external stakeholders, with joint decision-making and shared responsibility.

In line with our Human Rights Policy, matters related to vulnerable categories of people (which includes indigenous peoples) are of top priority to the Company. The Company has committed to respect the rights of indigenous peoples and prevent (or minimize) any negative impact on the culture of indigenous peoples, their lifestyle, traditions and economic activities. The Company has helped implement hundreds of social projects to support indigenous small-numbered peoples of the North.

The Sakhalin Indigenous Minorities Development Plan (SIMDP, or the Plan) has been an important element of this work since 2006. The Plan is implemented by Sakhalin Energy in partnership with the Regional Council of Authorized Representatives of Indigenous Minorities and the Government of Sakhalin Oblast. This equal trilateral partnership enables constructive interaction between the state, business and civil society, where business acts responsibly, the government pursues responsible policies, and indigenous peoples get to develop and manage their own resources. This partnership benefits all the parties and ensures stable social and economic development of the territory and harmonious development of indigenous small-numbered peoples of the island.

Project description

SIMDP: STRUCTURE AND MANAGEMENT SYSTEM

The Development Plan is currently the only document on Sakhalin Island that defines mutual obligations between indigenous peoples and the Company. The Plan lays out the roles and responsibilities of all coordinating bodies and all partners. This information is available at the program’s website, http://www.simdp.ru/uploads/files/fon_coord.pdf.

Indigenous peoples are involved in the decision-making process at every stage of the program. All decisions regarding allocation of funds are made by program committees composed exclusively of publicly elected indigenous peoples’ representatives. Committees are advised by experts and district committees.

KEY ACTIVITIES

The Plan includes two key elements:

• Traditional Economic Activities Support Program (TEASP)
• Social Development Foundation (SDF)

The Traditional Economic Activities Support Program has been designed to assist with employment and with the development of traditional economic activities of the Sakhalin indigenous minorities.

Representatives of indigenous peoples emphasize the importance of traditional economic activities (reindeer herding, fishing, wild berry-picking, handicrafts) for preserving their cultural heritage. Funds are allocated for specific business plans. Grants and microloans are issued to indigenous communities involved in traditional economic activities.

In 2018, the TEASP Committee approved 32 projects. These included the purchase of boat motors, fishing nets, snowmobiles, as well as certain appliances used in traditional economic activities.

The Social Development Foundation addresses the key problems of the Sakhalin indigenous minorities. There are annual events on indigenous languages and culture, projects developing local folk song traditions, linguistic and ethnographic studies. Indigenous people participate in athletic, educational and scientific events, exhibitions, workshops, etc.

The SDF has provided over 500 educational grants to indigenous college students.

Regular check-ups with doctors from the oblast capital city are organized for indigenous children and adults. Equipment has been purchased for local clinics and hospitals. Over 270 people have received financial assistance to address their medical needs: diagnostics, medications, surgeries, etc.

According to UNESCO, the languages of Sakhalin indigenous minorities are in the Red Book of Endangered Languages. Preserving the languages of Sakhalin indigenous minorities is one of the program’s priorities. We regularly support the publication of books and study materials, as well as digital content, helping indigenous people to learn and preserve their languages and culture.

In 2018, the SDF Committee approved 28 projects in the areas of education, health care, potential development, culture and sports. Our partner in implementing the projects is the Nivkh Indigenous Community Association. Financial support has been provided to 58 college students as part of educational projects and 9 people for medical needs.

IMPACT MITIGATION MATRIX

Projects like Sakhalin II sometimes raise concerns among local people. The Plan includes the Impact Mitigation Matrix (the Matrix), which reflects the concerns of indigenous peoples related to Sakhalin II and adjustment measures. The Matrix is regularly updated by the Board and communicated to the Council of Authorized Representatives of Sakhalin Indigenous Minorities and other stakeholders.

Under the Matrix, the Company has the obligation to inform the Board about any plans to expand its operations, about evaluations of the impact that the Company’s operations have on the environment, about oil spills and other emergencies, about measures taken to conserve biodiversity, etc.

Support Projects

In addition to regular educational programs that are part of the Development Plan, the Company organizes additional workshops for indigenous people, such as “Accounting and Reporting for NGOs,” “Social Design and Project Evaluation,” “Effective Ways to Implement a Social Program,” “Effective Business Communications,” “Developing Ethno Tourism on Sakhalin Island,” legal seminars, business planning seminar, etc.

In 2018, we organized the Young Leader School for environmental activists and volunteers. The school reviewed our past experience in getting volunteers involved in environmental projects on Sakhalin Island. Also, program partners were invited to join a workshop on developing the volunteer movement.

Team and partners 

Team

• Yulia Zavyalova, lead specialist, Social Projects Department
• Tatyana Derivedmid, head, Social Projects Department
• Natalya Gonchar, press secretary
• Lina Zhamyanova, junior specialist, Social Projects Department

Partners

The Plan is based on partnership between business (Sakhalin Energy), society (the Council of Authorized Representatives of Sakhalin Indigenous Minorities) and government (the Government of Sakhalin Oblast). The partnership involves joint decision-making, risk-sharing and delegating. In addition, the Nivkh Indigenous Community Association is our partner in implementing the Foundation’s project.

Key Partners of the Plan:

• Sakhalin Energy
• The Government of Sakhalin Oblast
• The Regional Council of Authorized Representatives of Sakhalin Indigenous Minorities

In addition, the following organizations and individual are involved in designing and implementing the Plan:

• The Association of Indigenous Small-Numbered Peoples of the North, Siberia and the Far East
• Indigenous Peoples Ombudsman at the Sakhalin Oblast Legislative Assembly
• The Public Chamber of Sakhalin Oblast
• Indigenous people of Sakhalin Oblast (beneficiaries and program administrators)
• Indigenous NGOs and communities
• Other indigenous associations
• Organizations preserving, studying, developing and promoting the culture and traditions of indigenous peoples
• The federal, regional and local government bodies
• Researchers and experts

Resources

Financial resources

The budget is allocated based on a five-year plan.

• The first Plan (2006–2010) — $300,000 a year
• The second Plan (2011–2015) — $312,000 a year
• The third Plan (2016–2020) — $320,000 a year

This is the money that the Company invest directly in the projects and initiatives envisaged by the Plan. In addition, the Company the following expenses:

• Administrative – organizing meetings, travel expenses, etc.
• Internal and independent external monitoring
• Intermediate and final independent evaluation
• Organizing special events
• Compensation for the Plan coordinator (not a Company employee), etc.

Also, the direct investment amount does not include expenses related to designing and maintaining the program’s website (www.simdp.ru), information materials, books, audios and videos, etc.

The Plan budget is provided fully by the Company. Individual projects may use contributions from applicants.

Human resources

Volunteers play an important role in Plan activities. Their number keeps growing, and the scope of their involvement keeps expanding.

Technological and material resources

• Logistics (housing contractors, transport [cargo and passengers], etc.)
• Printers for leaflets, documents, posters, etc.
• Maintaining the program’s website
• Hiring a coordinator for the Plan and supporting his administrative activities, providing him with everything necessary for his work

Achieved results

Immediate results

• Plan partners were successful in a fundamentally new cooperation strategy, demonstrating that it is possible for businesses to have productive interaction with indigenous minorities and observe the principle of free, prior and informed consent as stated in the UN Declaration on the Rights of Indigenous Peoples.
• Under the Plan, Sakhalin Energy funded over 700 projects (including 60 projects in 2018) developing the potential, education, health care, preservation of indigenous languages, support for ethnic communities and preservation of traditional culture. These projects were designed by nonprofits representing Sakhalin indigenous minorities and selected by indigenous peoples themselves.
• The plan is implemented following the Russian and international best practices and standards – for example, the principle of free, prior and informed consent as enshrined in the UN Declaration on the Rights of Indigenous Peoples.
• The Grievance Procedure, regulating the process of receiving, registering and resolving grievances related to the implementation of the Plan, is an excellent example of building a trusting relationship. Under the program, 100% of grievances were resolved within the established time limit.
• With the program’s support, five indigenous peoples’ nonprofits were set up to address major issues that indigenous minorities face and to strengthen interethnic ties. A website (kykhkykh.org) was created for Kykhkykh (Swan), the Okha local association for the preservation and development of Arctic indigenous peoples’ traditional culture. The website contains a lot of useful and interesting information about Sakhalin indigenous people.
• Under the Plan, coordinating bodies have created a platform for discussing all the common issues between the residents of the island.
• Indigenous people are gaining experience in decision-making – e.g., about allocating funds.
• Improvements in the economic situation of indigenous peoples, accessibility of education and health care services, support for traditional economic activities through procurement of equipment and stimulation of ethnic communities and partnerships.
• Stimulation of proactive community-level self-government.
• Members of indigenous minorities and their organizations get increasingly involved in working with the Plan – not only designing the Plan but also managing and implementing it.
• Sakhalin experience acquired while implementing the Plan has been recognized as a best practice both nationally and internationally. It was commended by Russian and international experts, including the Rio+20 Corporate Forum on Sustainable Development, the UN Forum on Business and Human Rights, and the UN Permanent Forum on Indigenous Issues. It was also lauded by the International Finance Corporation and the World Bank.

Social results

As one of the project’s key achievements, partnership has been formed, bringing together all the stakeholders, and this partnership keeps evolving.

Internal and external project assessment

EVALUATION STRATEGY

Social programs require evaluation from time to time. Our evaluation strategy includes:

• internal and external monitoring
• intermediate and final evaluation

INTERNAL AND EXTERNAL MONITORING

Internal and external monitoring means regularly collecting feedback and comments.

Monitoring results in a series of reports and grades achieving two goals: (1) identifying problems or changes that require some adjustments to be made; and (2) verifying the objectives are been achieved. Both goals help adapt and improve the program.

Internal monitoring is performed annually by the monitoring group. They visit beneficiaries and review reports, including financial documents. Monitoring results are communicated to the Board and an independent observer. The monitoring group includes one representative from each of the three partners. Members of program and district committees, municipal specialists for indigenous peoples and other experts are also invited to collect and share data.

In 2018, 67 projects were evaluated and graded. The grades were based on whether the project met the stated objectives, conducted the planned activities, executed the budget, provided necessary reports, etc.

External evaluation (monitoring) — based on our experience with the first and second Plans, we realized that it helps to have an external observer, an independent international expert on indigenous people.

The external observer provides the partners, the indigenous community and other stakeholders with the results of his independent evaluation of whether Sakhalin II complies with the Plan and his review of program results. Also, the external observer identifies existing and potential problems and risks and communicates them to Plan coordinators, so they make necessary adjustments.

All the reports by the external observer are released publicly (on the program’s website) and circulated among indigenous minorities and other stakeholders.

INTERMEDIATE AND FINAL EVALUATION

Twice within the five-year period, we have more in-depth evaluations: an intermediary one and a final one.

The intermediate evaluation is crucial because it offers an opportunity to make some important adjustments halfway through the implementation phase. The final evaluation is the foundation for designing the next five-year plan.

These evaluations are based on reports by the independent observer, internal monitoring reports, polls, review of key documents, complaint review reports, inspection reports and other sources.

Evaluation is performed by two specialists in social sciences (one of whom is the external observer) and an independent representative of indigenous minorities. The second specialist in social sciences is picked jointly by all the partners. The representative of indigenous peoples is nominated by the Regional Council.

Evaluation reports are released publicly, just like external monitoring reports.

During the final evaluation of the previous (second) Plan in 2015, a poll was conducted covering 5% of the indigenous population. Most respondents gave very positive feedback on the projects and indigenous peoples’ involvement in coordinating and implementing the Plan. The next final evaluation will be performed in 2020.

In 2018, halfway through the third Plan, we did an intermediate evaluation. We used two different methods: a poll and qualitative studies by evaluators. The evaluation team contacted directly 12.3% of the indigenous population (aged 17 or more).

Feedback from beneficiaries:

Project’s distinctive features and know – how

In order to address various complaints, concerns and problems in an efficient and timely manner, the Plan envisages the following feedback mechanisms:

• Individual, group and public consultations where people can ask questions about the Plan, make proposals, offer comments, etc.
• Opinion polls conducted at least during the intermediate and final evaluations.
• A complaint review procedure.

The complaint review procedure meets international standards and has been recognized by UN experts as one of the best practices worldwide in dealing with complaints.

Complaint review is performed by a working group which includes representatives from all three partners. The working group is responsible for investigating the complaint. The group has 20 working days to resolve the situation, staying in constant contact with the aggrieved party.

In 2018, the program received four complaints. All of them have been resolved within the allowed period of time.

Independent evaluation report: “Complaints were reviewed in a professional manner in line with established procedures. Written reports from the review process and oral communications with complaining parties indicate that the complaint review procedure ensures the smooth operation of the Plan.”

The program uses the following technologies in achieving its key objectives under the Plan:

• Contests. The Traditional Economic Activities Support Program and the Social Development Foundation disburse funds mostly through an open bidding process. Program committees have designed contest rules to fund the most important, effective, strategic and sustainable projects. Priority is given to projects where applicants commit to donate their time as volunteers or co-fund the project.
• Scholarships. In order to promote education among indigenous people, indigenous college students can get a scholarship if they complete the term with excellent or good grades. An extra amount may be paid on top of the scholarship if a student participates in social projects or helps preserve indigenous traditions and culture.
• Pro bono. Partners contribute their time and professional skills as volunteers, organizing workshops, assisting indigenous NGOs in organizing various events, etc.
• Impact Mitigation Matrix. Indigenous people are engaged in identifying risks, concerns, etc., related to Sakhalin II, and coordinating measures to prevent or minimize potential impact.

Challenges and solutions

• Some participants at different levels (coordinating councils, grant initiators, etc.) lack necessary skills and knowledge. One way to address this issue is the Potential Development module we added in the third Plan, supporting participation in seminars, exhibitions, master classes, etc., educational projects and interregional and international contacts with other indigenous groups to promote their culture. Another solution is holding seminars and workshops for Plan coordinators.
• Local population often have disproportionate expectations with respect to social benefits they are getting from the Plan. To address this issue, we clearly define the terms and conditions for the programs. Also, when discussing issues with the local population, we take into account their opinions and discuss the comments we receive at public meetings.

Plans of further development   

The Plan is expected to cover the entire duration of the Sakhalin II project and is to be updated every five years, which enables us to make necessary adjustments and better serve the interests of indigenous peoples.

The following is a brief timeline:

Each five-year Plan includes the following stages:

Sakhalin Energy and other partners regard the Plan as effective and intend to follow up with new five-year Plans based on their experience and recommendations received. This work will be carried out in partnership, through joint decision-making, in an open and transparent manner, with proper accountability, in the interests of indigenous peoples. As another long-term goal, assistance with creating an independent development foundation for indigenous peoples is under consideration.

The Company believes that further development of the Program would require the following:

• new or updated international standards
• a more active role being played by indigenous peoples in designing and implementing the program with an emphasis on long-term, strategic planning for sustainable development
• Aligning the Plan with the UN Sustainable Development Goals and reflecting it in public reports.

Recommendations

• Cooperation and interaction should take into account demographic, economic, social and ethnic peculiarities
• Joined efforts by partners in implementing projects
• Representatives of indigenous peoples should be involved in designing and implementing the Plan and related events
• Building up the potential of indigenous peoples
• Comprehensive approach based on best Russian and international practices
• Constant interaction in all the settlements where indigenous peoples live, regardless of the project’s location and influence

Project’s documents

The Sakhalin Indigenous Minorities Development Plan