The Socio-Economic Program




The Socio-Economic Program (SEP) deployed in the Yadana pipeline region applies one of the principles stated in Total's Code of Conduct and reiterated by Total's subsidiary in Myanmar, to contribute through its activities to the economic and social development of the countries in which the Group operates, in particular the progress of host communities.

Launched in 1995, even before the fieldwork began, the program has always been considered an integral part of the Yadana project. Its priorities, which were defined with the villagers, focus on four key areas: health, education, economic development and infrastructure.

The program expresses the long-term commitment made by all investors involved in the Yadana project: Total, Unocal, Petroleum Authority of Thailand Exploration & Production (PTT-EP) and Myanma Oil and Gas Enterprise (MOGE). Initially intended for residents of the 13 villages closest to the pipeline, it was extended to 25 villages in the pipeline region since 2001 (of which 2 villages in 2005). The pipeline area covered by the socio-economic program is located in the south of Myanmar in Tanintharyi Division. It is a 4 to 5-hour drive from Kanbauk to the nearest towns, Dawei in the south (60 kms) and Ye in the north (90 kms). In 2006, the program directly supported 25 villages, with a population of about 36,700. It is estimated that the overall population of the pipeline area now benefiting from the program is over 50,000 people. The program also includes initiatives outside the pipeline region, such as support for orphanages in the Yangon region, a nation-wide blindness prevention program, an HIV/AIDS program for HIV-positive tuberculosis patients, hospitals and a home for the elderly.

Myanmar

The program achieves a balance through a combination of ongoing dialogue with the villagers and economic and social development measures financed by the project. Its success requires genuine commitment from the villages and villagers, since it must drive a sustainable improvement in living conditions throughout the region. It therefore has to meet the needs of the residents and respect their culture and way of living, which is why it was imperative to put Myanmar nationals in charge of its implementation. All members of the SEP team are Myanmar nationals and all the related projects (e.g., clinics, schools, transportation infrastructure) are owned by the local communities concerned or by the villagers themselves (agricultural and small business projects).

Total decided to submit its initiatives to the critical scrutiny of an independent expert, the Cambridge, Massachusetts-based Collaborative for Development Action (CDA), a US organization that specializes in issues related to development aid and the management of projects in conflict and post-conflict environments. CDA clients include governments, international organizations, NGOs and universities. Its Corporate Engagement Project, in which Total and UNOCAL participate as well as several governments, is designed to help multinational corporations clarify the impact of their operations in areas affected by socio-political tensions or conflict.

The CDA has completed four visits to the Yadana pipeline region, in October 2002, April and December 2003 and in April 2005. It considers that Total’s initiatives have had a positive impact, but offers a number of suggestions for making them more effective. Total also asked Bernard Kouchnerfor advice concerning its operations in Myanmar because of his experience with humanitarian medical aid and his political vision. Dr. Kouchner traveled to Myanmar in March 2003 and submitted a report to Total whose findings generally concur with those of the CDA.