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Case Study
Community Development in Papua New Guinea

In 2001, Chevron Niugini Ltd. (CNLG), in partnership with the World Wildlife Fund (WWF), formed the Community Development Initiative Foundation (CDI), an independent, nonprofit organization working on community development issues in the region. Between 2001 and 2003, ChevronTexaco and its joint venture partners provided US$4.8 million (of which approximately $875,000 was ChevronTexaco's share) in grants and operational support to CDI.

Papua New Guinea children and teacher
Papua New Guinea children learn about disease prevention.

In addition to furthering WWF's efforts to protect natural resources, CDI brings social services to rural communities affected by the oil industry, providing programs in health, education, agriculture, skills development and cultural preservation, in support of government efforts.

CDI is a unique model for ChevronTexaco's community engagement because, in launching the foundation, the company created an independent operational entity with its own staff, facilities and mission solely focused on community development. CDI assumed responsibility for Chevron Niugini's existing community development programs, bringing to it the foundation's network of expertise on development issues, as well as the trust of community members. CDI blends both social and environmental considerations into one coordinated approach and is one of ChevronTexaco's best examples of a comprehensive community development program, designed to thrive long after a region's oil stops flowing.

In what will prove to be a test of CDI's sustainability, in 2003 ChevronTexaco sold its Papua New Guinea oil operations, a move the company believes will not affect CDI's continued operations. After receiving initial funding from ChevronTexaco and its joint-venture partners, CDI began soliciting funding from other sources to help guarantee its growth and survival after ChevronTexaco's - and ultimately the oil industry's - exit from the region.

Community Development Initiatives Foundation Training Center
The Isikeli Taureka Haus, in Kikori, Papua New Guinea, is a training center of the Community Development Initiatives Foundation.

ChevronTexaco believes that its experience with CDI has provided valuable learning about effective community engagement and innovative approaches to making a positive and lasting contribution to the communities in which it operates. To capture this learning and apply it elsewhere in its operations, ChevronTexaco has commissioned an independent review and analysis of CDI. After its planned completion in 2003, the findings of the review will inform ChevronTexaco's future community engagement activities around the world.

Related Link
> Community Engagement Section