Since 2005, we've engaged various communities near our operations through Global Memorandums of Understanding (GMOUs). The GMOUs are multiyear agreements between the communities, Chevron and state governments.
Local participation in the company's social investment decisions is vital. "It's how we're giving greater ownership of development activities to local communities," said Dennis Flemming, community engagement advisor for Chevron Nigeria Ltd. in 2010.
The eight GMOUs cover projects in five states of the Niger Delta. Each agreement has a Regional Development Committee (RDC) that advocates for community interests and leads spending decisions. Each RDC's subcommittees monitor accounting, conflict resolution and project management.
The participatory, capacity-building approach is visibly changing these communities. Since 2005, Chevron Nigeria Ltd. has disbursed more than $56.7 million to the RDCs for a wide range of projects, including building bridges, constructing solar-powered water facilities, equipping hospitals with medical supplies and leading youth workshops.
To further improve the RDCs' effectiveness, in 2010, we ran a series of workshops on subjects such as financial management, government budgeting, lobbying processes and community relations. In 2010, 849 people had been trained.
The benefits from the GMOUs now reach more than 400 communities, villages and chiefdoms, involving 600,000 people in economic, health, education and environmental projects. In 2010 alone, we contributed more than $10 million to eight new GMOU projects.
Also in 2010, we launched the Niger Delta Partnership Initiative, with an initial investment of $50 million for economic development, conflict resolution and capacity building in the region.
Updated: May 2011