Dialogue and Development in Asalouyeh

This three year programme, launched in January 2010, is a collaboration between Living Earth, the Institute of Petroleum Engineering (IPE) of the Faculty of Engineering of the University of Tehran and the Centre for Sustainable Development and Environment (CENESTA). The project seeks to contribute towards sustainable development of Asalouyeh, specifically in regard to the negatives effects of the operations of the oil and gas industry in the area.

Project Background

Asalouyeh in southern Bushehr province is a collection of villages that is now at the heart of one of the world’s largest industrial developments, the Pars Special Economic Energy Zone (PSEEZ), which was created in 1998. The villages of Asalouyeh district, traditionally based on fishing and farming, are now surrounded by industrial installations and plants associated with the oil and gas industries. Gas refineries, petrochemical plants, industrial ports, offshore installations, storage facilities and Liquefied Natural Gas (LNG) plants are among the dozens of projects operating or under development in the PSEEZ.

The rapid industrialisation of the PSEEZ has generated significant social, health, environmental and economic effects among communities of Asalouyeh. Significant financial resources have been allocated to develop dozens of industrial projects in the region, but few initiatives are in place to ensure corresponding social development within a sustainable framework.

The following are among the most important issues and problems that Asalouyeh is facing today:

• contamination of water, air and soils, with negative effects on traditional livelihoods (agriculture, fishing);
• changes in land use that affect traditional communities and lead to increases in the value of land and property;
• lack of appropriate social infrastructure in correspondence with the new industrial installations, which is generating tensions;
• the massive influx of migrant workers has put significant stress on healthcare, social services and housing, as well on the natural environment, and is associated with an increase in communicable diseases and socio-cultural tensions.

Project Objectives

the project seeks to ensure that the oil and gas industry projects in the PSEEZ contribute to poverty reduction by generating equitable economic, environmental and social benefits for the different sectors and groups of  the Asalouyeh region. Industrialisation and economic growth cannot be seen as the sole objectives of regional development; ensuring comprehensive social benefits and environmental protection are equally important.

Project actions in Asalouyeh will aim to connect industry leaders, local authorities, communities and policy makers on practical initiatives that contribute to poverty reduction, environmental protection and improvement in the quality of life of local people (such as improvements in community health, environmental sanitation and the provision of clean water).The relatively poor communication that exists between industry and local communities; the insufficient knowledge and understanding, among local communities, about the on-going industrialisation process; and their lack of participation in decision-making on local development issues, are key factors that the project will address.

The project, therefore, has two broad aims: to develop the capacity of local communities, civil society organisations, authorities and industry leaders to establish constructive relationships that enable cooperation in addressing priority issues and problems; and to ensure the participation of local communities and vulnerable groups in decision making processes on issues that affect them.

Expected Results

The expected results are:
1. Enhanced capacity among the most vulnerable people and groups, both personal and institutional, to understand and act on the causes of regional poverty and to realize their potential in addressing them.
2. Increased capacity of all stakeholder groups to work together effectively to formulate and carry out locally appropriate initiatives in health and other fields, aimed at poverty reduction and sustainable development.
3. Improved participatory monitoring by stakeholders of both public policy and private sector implementation, particularly in the fields of health, environmental impact assessment, mitigation and poverty reduction.
4. A multi stakeholder alliance/forum to support the design and implementation by relevant actors, of locally appropriate health and other social strategies aimed at poverty reduction and sustainable development.

Project Activities

• Review of past social and environmental studies on the region.
• Base line survey on main social and environmental regional issues.
• Information and consultation sessions with key local actors (communities, civil society organisations, local authorities) and other significant stakeholders (representatives of the oil and gas industry, health professionals, Department of the Environment officials, agriculture and natural resources bureaus, fisheries experts, and others), to determine priority regional development issues and needs.
• Workshops with key local actors, to assess capabilities and needs on issues considered priorities.
• Capacity-building workshops with key local actors, to develop implementation, monitoring and evaluation skills on priority social and environmental issues.
• Capacity-building workshops to develop skills in dialogue, negotiation and consensus-building among local actors and other stakeholders involved in, or affected by, the process of change in the region.
• Participatory sessions in a multi-stakeholder forum of key stakeholders (local communities and authorities, representatives of the oil and gas industry, government officials, health professionals and others), to analyse priority issues and design and plan practical initiatives aimed at addressing them.
• Participatory monitoring and evaluation of public policy implementation and private sector initiatives, in order to agree recommendations to correct or mitigate effects, or to adopt alternative measures.
• Participatory implementation, monitoring and evaluation of pilot poverty reduction and sustainable development initiatives agreed by participating stakeholders.

Project Partners

The project will be implemented in close collaboration with directors and senior managers of the Iranian oil and gas industry (NIOC, PSEEZ, POGC, others), and will actively seek contributions and support from other public and private actors that are developing projects, or fulfilling public responsibilities, in southern Bushehr.

The three partners responsible for project implementation are: the Institute of Petroleum Engineering (IPE) of the Faculty of Engineering of the University of Tehran; the Centre for Sustainable Development and Environment (CENESTA); and Living Earth Foundation. Find out more about these partner organisations in the Latest News updates on this page.

Project Funding

Through a contract with Living Earth Foundation, the European Commission (EC) has agreed to finance 2/3 of project expenditures, up to €550,000, providing project partners secure the remaining funds from other sources. It is estimated that the project will take 36 months to complete.

This document has been produced with the financial assistance of the European Union. The contents of this document are the sole responsibility of Living Earth Foundation and can under no circumstances be regarded as reflecting the position of the European Union.

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