Executive summary
Authors’ note
1. Introduction
2. Conflict
2.1 Understanding conflict
2.2 Causes and triggers
3. Why project finance and conflict?
4. Understanding the ‘two-way street’ between project finance and conflict
4.1 Costs of conflict on projects
4.2 The impact of projects on conflict
5. Assessing non-commercial risks: current practice
5.1 Environmental and Social Impact Assessments (ESIAs
5.2 Country risk ratings
5.3 Political risk analysis (PRA)
6. Conflict risk mitigation: current practice
6.1 Political risk insurance (PRI)
6.2 Covenants and warranties
6.3 ‘Political umbrellas’
7. Elements of a conflict-sensitive approach to project finance
7.1 Enhanced due diligence
7.2 ‘No-go’ criteria
7.3 Encouraging better conflict risk management by project sponsors
7.4 IFC Performance Standards, Common Approaches, Equator Principles: opportunity to raise standards
7.5 Tightening policy coherence
7.6 Strengthening the regulatory environment
References
List of institutions and organisations contacted (May – November 2005)
Annex 1: Conflict impacts at the project level
Annex 2: IFC draft Performance Standard 4
Annex 3: Voluntary Principles on Security and Human Rights