6. sustainable development - working together

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    WORKING TOGETHER

    Authors: Gabriel Marcuz and Rodolfo RealeOrganization: Gasoducto Nor Andino (GDF Suez)

    1. Introduction

    Gasoducto Nor Andino, a GDF Suez subsidiary, is a natural gas pipeline of 1,100 km length and runsthrough at least three different ecosystems in northern Argentina and Chile. These are some of the mostcritical habitats for many species, particularly the Yungas Forest, considered by science as a hotspot forbiodiversity. Nonetheless, the area also involves a very delicate social scenario due to the conflicts for landamongst aboriginal peoples against private owners and local governments. The construction of theGasoducto Nor Andino and two explosive pipeline ruptures which followed construction works months latergenerated a strong reaction in the local communities and environmental organizations such as Greenpeace.The paper describes the non-traditional and innovative actions taken to solve the initial problems and worktogether with the local stakeholders to improve the social and economic condition taking the Companys

    Ethical values without clashing with the thoughts and interests on which the other actors based their actions,in general absolutely different.

    2. Objectives

    The objectives were set to deal with and improve the environment and social aspects at the same time. Theaim was to support the sustainable development of the Kolla people who live in the Yungas Forest based ontheir own expectations and will. Gasoducto Nor Andino also aimed at protecting the ecosystem and soonrealized that there were two questions we needed to address proactively: people and forest.

    2.1. Enviromental Sustainable Development

    Due to the special conditions under which the project was developed, it was impossible to face the conflicts

    as they appeared. Therefore, it was decided that an active role should be taken and the company became aleader in sustainable development and defense of the environment in the region, by combining theseinitiatives with government action forcing the authorities to set a precedent. It is not by chance thatenvironmental standards got raised after the Gasoducto Nor Andinos case influencing other companies inthe region.

    2.2. Social-cultural Sustainable Development

    In the social-cultural field, Gasoducto Nor Andinos social responsibility with the community made itnecessary to approach the problem from a different perspective. The needs of the aborigine communitieswere understood and programs were developed to meet such needs involving their participation andcontribution, making everyone play an active role. Consequently, the communities regarded Gasoducto NorAndino as an ally of their territorial and cultural vindication and contributed to the improvement of their life

    standard, by reaffirming their traditional customs and culture.

    3. Development

    All Gasoducto Nor Andino actions strictly observed the law right from the begining and were even moremeticulous so that in time such actions became a process inherently acquired and followed by all of itsmembers. The resolution of the problem related to the installation and operation of the pipeline in such anecologically and socially sensitive area could not be approached in a satisfactory way with traditional actionsfrom the management.For every obstacle or problem encountered, particularly at the beginning where there was a conflict ofinterests between the parties, Gasoducto Nor Andino always bore in mind that through negotiation asatisfactory solution could be given to everyone involved, providing all positions were respected.For such reason, innovative solutions were adopted.

    The method consists in the following:

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    I. Strategy

    Solving the conflicts raised during the construction stage and avoiding eventual conflicts with the aboriginalcommunities and the authorities during the commercial operation called for an innovative strategy. In thedevelopment of such strategy the ethical values of the company were taken as a basis and the parties to theconflict became the protagonists of the solution.

    II. Corporate image

    The challenge here was to change the corporate image created by the Gasoducto Nor Andino opponentsduring the construction stage and the two pipeline ruptures, in order to transform the image of a companyinvading the Yungas forest into a leading company in terms of environmental conservationism improvementand relations with local communities. In this way, the company could be regarded as an ally byconservationist groups and aborigine communities.

    III. Participation

    All initiatives taken had to be feasible and to that end, Gasoducto Nor Andino took all due responsibility andhad an active role. Actions had to lead to tangible results and Gasoducto Nor Andino never made the easiestchoice: offering money to opposing parties. For instance, to construct the gas network for Humahuaca, whichwas totally financed by Gasoducto Nor Andino and did not receive any payment, the company called for abidding process with Jujuy Province, hired a building company and supervised works regarding technical andadministrative aspects together with the zone distribution Company until gas was actually delivered to everyinhabitant.Based on the above, the actual implementation of the strategy required innovative actions in line with ethicalvalues, team spirit and professionalism.The participation and project commitment of all Gasoducto Nor Andino members, the NGOs, thecommunities and the government authorities in the accomplishment of a common objective was essential tothe success of every action.A multidisciplinary team covering the technical, social, and environmental aspects was formed with partiesrepresenting different interests, it was possible to find creative and innovative responses to the majorproblems encountered. Furthermore, the various actors shared a common objective: the ecosystemconservation of the region and the development of the aborigine communities, under the concept of mutualhelp partners.The creation of added value has been an underlying objective in all the activities that were projected andimplemented.The advantages of the plan are reflected in the following items:

    The environment, since Gasoducto Nor Andinos presence in the region meant a starting point forimplementing nature conservation projects (not just the many initiatives financed by the company)and also set an example for other companies in the region; the rise of government authoritiesawareness regarding the need to work with other parties and improve regulations and environmentalcontrols.

    The aboriginal communities, given the support by Gasoducto Nor Andino for their developmentprojects, achieved striking results in the capital stock. The growth of trust and understanding amongthe Communities, the NGOs, the government and Gasoducto Nor Andino was key to this.

    All participating organizations increased their capital stock in two different ways. First, because bydeveloping strong interpersonal bonds a solid internal network with the aboriginal communities wasformed. Moreover, all organizations increased their capital stock by generating links among them,which allowed for improved external relations. Working in a distrustful environment can becomplicated, but one of our leading ideas has always been that conflicts, such as the ones faced bythe environment and the Communities, cannot be solved individually.

    Ethical values

    All the problems were successfully solved by acting in accordance with the following company values:

    i. Understanding the opposite position

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    Gasoducto Nor Andino pays special attention to the thoughts, values and interests on which the other actorsbased their actions, particularly when they are absolutely different from ours. Therefore, Gasoducto NorAndino was able to and still understands that their main objective was to defend their own interests and not tofight against the Company.

    ii. Clearly explaining the objectives

    Being honest and explaining in detail the reasons why an issue could not be achieved.

    iii. Being reliable

    When a promise is made, it is always fulfilled. Gasoducto Nor Andino has always been deeply committed tokeeping its promises.

    5. Results

    The different sectors involved were called together and labor agreements were signed with the environmentalNGOs such as Greenpeace, Fundacin Proyungas, Fundacin Vida Silvestre Argentina (local affiliate of theWWF), representatives of the aboriginal communities, local authorities, the Municipality of Orn, Municipalityof Humahuaca, Hospital San Vicente de Paul in Orn, and environmental authorities (Parques Nacionales,Environmental Secretariat of the province of Salta, etc.).The most striking results obtained since 1998 can be summarized in the main projects implemented:

    1) Creation of the National Reserve El Nogalar (3,500 ha) and the first Provincial Park of theProvince of Salta (Pintascayo of 12,000 ha):Gasoducto Nor Andino bought the plots of land anddonated them for the creation, along with Province of Salta, of those forest reserves.

    2) Residential Natural Gas supply for the city of Humahuaca: Gasoducto Nor Andino supported andfinanced all the construction of the distribution network and never received any money to supply gasto a 10,000 people population. The natural gas supply to the city of Humahuaca meant a remarkableimprovement in the quality of life of the citizens in terms of health and economy, since the alternativefuels used in the zone like wood or the bottled butane gas, produce in the first case a damage in theenviroment and in the case of the butane gas, it is several times more expensive than the naturalgas.

    3) Hydroelectric micro turbine for the Community of Los Naranjos:The project financed, organizedand implemented by Gasoducto Nor Andino will supply hydroelectric energy to the whole LosNaranjos Community (within the Yungas). One of the most important characteristics of the project isthe organization of a cooperative in the same community, which will be in charge of managing thesystem by ensuring its economic sustainability. The project contemplated the advice on theorganization of the cooperative and the training of the technical personnel who will be in charge ofmaintaining the system with inhabitants of the same community, generating an organizationalenvironment in the community and work posts. The project started in 2003 and the start-up was in2008. The generator, the micro turbine, its command station, the network and the internal instalationare running. The system will provide electricity to around 100 families. The access to electricity willallow them to conserve perishable goods in refrigerators, illumination, etc, which mean a remarkablyimprovement of their quality of life.

    4) Forest Certification Program (FSC): The main enemy of the Yungas is the clearing forconventional crops and the overexploitation of the forest for the extraction of wood. This project isunique in the country, both because of the region it covers and its multidisciplinary approach. Theentities participating in this project are the NGOs Greenpeace, Fundacin Proyungas and FVSA,financed by Gasoducto Nor Andino since 2002. Under the technical supervision and advice ofoutstanding environmental organizations and as part of the FSC the project aims to revert thetendency to the indiscriminate forest felling and replace it by crops such as soy, as well as improvingthe forest development systems in order to make it sustainable throughout time without degradingthe characteristics of the forest or its profitability due to overexploitation. Also, it aims to enable theentry of the region to new and more attractive markets for its by-products, thus increasing itsproduction added value. The main results obtained up to now are: Implementation of plans of foresthandling of three lumber producers, implementation of a plan of environmental repair in ValleMorado, which is under development of commercial agreements with buyers so that they acquirecertified products at differential prices, and participation in the network of responsible forestcommerce.

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    5) Development of Community Nurseries: One of the main activities of the aborigine inhabitants ofthe region is agriculture. Two nurseries were built in 2001 (and are still working) in order to developthis activity. The autochthonous species are under study by means of methods to obtain betterreturn, and experiments are made with exotic species in order to verify the feasibility of growing themin the region. Also, technical advice is provided on an ongoing basis, which contributes to theresearch and development of other community projects related to the farming activity, such as cattle

    vaccination campaigns, technical advice on breeding and health of animals, etc. About 2,000 forestand fruit trees were delivered to more than a hundred aborigine families.

    6) First Aid Post El Oculto and San Andres:El Oculto is a small town in the forest of Yungas, withprecarious living and sanitary conditions. This project aimed to improve their standard of living. Theproject was completed in May 2005 and it is now in full operation. This Project represented a furtherstep in the integration of Gasoducto Nor Andino with the surrounding environment and its motivatingfunction in the development of the region. The Municipality of Orn, the Provincial Hospital of Ornand some private companies performing activities in the region participated in this Project led byGasoducto Nor Andino. This post allows health authorities to implement assessments in order todetect endemic illnesses and develop plans to control them and early detection of diseases andeffective treatments. This meant a real improve in the populations quality of life. Later, in 2006,Gasoducto Nor Andino started to support the construction of the new health centre in San Andrestown and finance all its operation, in one year of work, the Doctor in San Andrs assisted 534 people

    of the 70 families living in the area.7) Proyungas Scientific Research Program: It was essential to implement management plans and

    measures to protect the forest of Yungas due to the lack of information and studies carried out insuch ecosystem. For that reason, Gasoducto Nor Andinohas financed the Proyungas Program since1999 in order to promote scientific research applied to the sustainable preservation and handling ofresources in the Yungas forest. This was achieved with the technical support offered by LIEY, anentity depending from the National University of Tucumn and FVSA. From the beginning of theprogram 55 projects have been carried out.

    8) Construction of a bridle path in the Community of Cianzo: This community is located in a difficultaccess valley. For that reason, and together with the Community of Cianzo, who contributed theirmanpower, Gasoducto Nor Andino constructed a bridle path for road traffic that significantly shortensthe traveling times to the other cities.

    9) Funding the management of the Yala Pasture Provincial Park: Gasoducto Nor Andino togetherwith other companies finances the administration of this reserve, close to the city of San Salvador deJujuy, which preserves a sector of Mountain Forests and Foggy Pastures with 4300 hectares.

    10) Classroom in San Andrs School: Gasoducto Nor Andino built new classrooms in San AndrsSchool. These new facilities have allowed a better infrastructure to develop the educative activities.

    11) Scholarship Program in San Andrs and Los Naranjos: Gasoducto Nor Andino has beendeveloping jointly with Colegio Polimodal Los Naranjos (High School) a scholarship and work-oriented training program since 2007. The program involves short courses delivered at the schoolwith the aim of providing technical knowledge to the graduated pupils and economic support to pupilswho desire to follow further studies. Once graduated, the person who received the scholarship has tomake communitarian works in their community. Up to now, the program has benefited more than 30people between courses and scholarships.

    Every Program is constantly evaluated by Gasoducto Nor Andino and all relevant organizations. All staff incharge of each Project send data updating the information or directly contact the company to define thestrategies and to solve daily problems. Periodic meetings with the ONGs are held, addressing thedevelopment of the Program and suggesting new items which need to be solved as well as new actions to betaken.

    7. Conclusions

    The best way to appreciate the results of the strategy used is to see how key people who actively participatedin the conflict have changed their opinions and attitudes regarding Gasoducto Nor Andino:Following are the statements of the main opponents to the pipeline construction:During the pipeline construction stage, Eusebio Condor, the leader of the aborigine communities in theregion, stated at an interview for the international press (1998): We are seriously affected because wecannot travel on horseback or foot to take food supplies to the families living in the high areasDuring the pipeline construction stage, Emiliano Ezcurra, the most representative member of GreenpeaceArgentina, pointed out at an interview for the national press (1998): This should have never happened. We

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    proposed a very specific alternative but it was not accepted and at a demonstration before the gas regulatoryauthority in Argentina (ENARGAS) during construction stage (1998): We are here delivering more than15,000 letters and faxes we have received requesting the Directors (of ENARGAS) not to approve the NorAndino pipelineEmiliano Ezcurra, said before the national press after an accident occurred to the pipeline (2002): The NorAndino stubbornness is everyday clearer. We know Nor Andino wants to send gas to Chile as soon as

    possible, because every day of delay is tragic for them, and every day that the pipeline operates is tragic forthe forest and the people living hereHowever, after Gasoducto Nor Andinos actions it is possible to see a great change of opinions by those whoopposed to the pipeline:Eusebio Condor stated in an interview in 2004: We did our best to prevent it from happening. The pipelineconstruction, once completed, marked the beginning of the coexistence between Nor Andino and thecommunitiesJavier Corcuera (former Executive Director of FVSA) said about Gasoducto Nor Andino in 2004: We arevery proud of having helped to reach a solution [] Civil society and companies can agree on highly effectiveways to change and improve the realityEmiliano Ezcurra stated about Gasoducto Nor Andin in 2004: What can Greenpeace say after carrying onone of the most important campaign in Argentina for 7 years we cant deny that there was an importantreaction that we can now see clearly after 7 years. Despite the inconvenient caused by the pipeline works,Nor Andino has now become an example to follow for future works of similar magnitude. The companystayed in the place rather than leaving and started to carry out a number of activities and obviously the on-site participation of other institutions that worked along with local people yielded the positive results we cansee today

    ACKNOWLEDGMENTS

    Gasoducto Nor Andinos permission to publish this case history is gratefully acknowledged.