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May 30, 2009
Alcoa and FUNBIO launch a sustainable development fund for Juruti, in the west of Pará
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With the aim of improving the quality of life of the local population resources will be earmarked as a priority for projects that include social, economic and environmental aspects
Alcoa and FUNBIO (Brazilian Biodiversity Fund) have just launched FUNJUS (Sustainable Juruti Fund), which is structured for funding projects that promote the sustainable development of Juruti, a small township in the west of Pará, where Alcoa is setting up a bauxite mining unit. As a priority resources will be earmarked for projects that include social, economic and environmental aspects, with the aim of improving the quality of life of the local population.
The Fund, which has been provisionally launched, is being independently managed, with initial funds coming from Alcoa. The Company will set aside R$ 2 million of which R$ 500,000 will be used in the experimental phase that is planned to last two years.
FUNBIO will “incubate” the Fund and be responsible for technical and administrative coordination, under the general supervision of the donor-company. In addition, a Fund Council has been established, which is an independent body that will be responsible for selecting the priority projects that will benefit from this initiative.
AN INDUSTRY MILESTONE
According to Pedro Leitão, FUNBIO’s general secretary, FUNJUS is a great innovation. “The fund can be considered a milestone for the functioning of the mining sector in Brazil”, declares Leitão, who believes that actions such as these are the way to a good relationship with the community. “The return we’ll get on this investment is to become a legitimate and integral part of this community. Furthermore, you only have to look at the investment portfolios of companies considered sustainable. This social and environmental responsibility attitude gives a return over and above the capacity to function locally in a peaceful way”.
Nilson Souza, vice-president for Primary Products for Alcoa Latin America and the Caribbean justifies the implementation of the Sustainable Juruti Fund: “FUNJUS is a financial mechanism for promoting sustainable activities that are important for territorial management and the potential transformation brought about by a large undertaking in such a sensitive region as the one where we find ourselves”, he explains.
The community’s assessment of the initiative is positive. According to José Neto Vieira, leader of the 100% Juruti Movement and general coordinator of CONJUS (Sustainable Juruti Council – a democratic forum of public, civil and business organizations) the initiative meets an long-time wish of the population. “We’re very happy with this project. It’s a way the Company can show that it’s concerned with the needs of society. It’s a very big step and I hope that this is one of the many actions in favor of the region’s development”, was how he summed it up.
According to Valmir Ortega, Secretary of the Environment of the Pará government, the initiative brings benefits not only for the town but also for the state: “Companies that are able to extend their actions beyond those that they’re legally obliged to fulfill are to be praised. An example of this is the launch of the Sustainable Juruti Project, in which the company, public authorities and society have come together in an effort to construct a virtuous development that will benefit the township, the state and the population as a whole”, declares the secretary.
Domingos Juvenil, state congressman and president of the Legislative Assembly of Pará, thinks the initiative of the Fund should be copied by other companies. “Considering that ore is a non-renewable good this is a practice that should be adopted by all mining companies in our state. It’s only right that companies concern themselves with providing the town which has the privilege of having the mineral deposit with the wherewithal to develop because of the riches they have at their disposal and that are in the hands of companies that beneficiate them”.
PUBLIC BID NOTICE
In the pilot phase FUNJUS will publish a public support notice for projects that are proposed by local non-governmental organizations or those that have their head office in Pará. To encourage the participation of Juruti society the public notice will have a special line of financing for the projects of organizations whose activities are recognized, but who as yet are not formally constituted. Public institutions can be partners, but not bidders. The selection process includes technical support for preparing the proposals. In the end the institutions selected will receive training for carrying out their projects. Initiatives will be supported with investments of R$ 10,000 to R$ 50,000, which may be used over a period of up to 18 months.
The experience of the Fund’s pilot phase will serve to fully adjust the mechanism to the reality and needs of Juruti. “The Sustainable Juruti Fund’s original design allows it to be managed independently and transparently, with the setting up of its own decision-making board and the possibility of raising funds from other sources”, explains Manoel Serrão, manager of the Economic and Financial Mechanisms unit of FUNBIO, which is responsible for the initiative in partnership with Alcoa. “FUNJUS is a pretty innovative long-term proposal, which depends a lot on the local capacity for articulating, proposing and carrying out projects. That’s why we need a test, which is what we’ll do in this pilot phase”, he adds.
SUSTAINABILITY TRIPOD
The now-launched Fund that was developed by FUNBIO forms part of the Sustainable Juruti Project and aims to satisfy the three aspects of the sustainability tripod with a view to promoting regional development: respect for the environment, social responsibility and economic success. Identified as being one of the aspirations of the Juruti community itself, implementation of this model is a voluntary initiative by Alcoa. This is in addition to all the actions that are on-going and that result from the legal requirements for setting up the Juruti Mine (Environmental Control Plans, the Collective Compensation Matrix of the Socó I Settlement) and other voluntary actions by Alcoa that are of benefit to the local community (Positive Agenda).
The Project has been working successfully. In addition to the Sustainability Indicators System that were developed with the support of the Getulio Vargas Foundation and the Sustainable Juruti Foundation, the Project can also count on the support of the Sustainable Juruti Council, a public forum for dialogue between the various parties interested in local development.
The indicators should constitute the basis for supporting decision-making by the Council, which in turn will give the Fund guidance on priorities for investments and financial support. Each component of the Project can count on the active participation of representatives from civil organizations, local public authorities and companies.
About Funbio
The Brazilian Biodiversity Fund is a not-for-profit civil association set up in 1995 with the objective of complementing government actions for the conservation and sustainable use of Brazil’s biological diversity, in line with the Convention of Biological Diversity (CDB), which is worldwide in its scope, and the National Biological Diversity Program (PRONABIO). Its mission is to inject strategic funds to be used for the conservation of biodiversity. For further information visit www.funbio.org.br
About Alcoa
Alcoa is the world leader in the production and management of primary aluminum, fabricated aluminum and alumina combined, through its active and growing participation in all major aspects of the industry. Alcoa serves the aerospace, automotive, packaging, building and construction, commercial transportation and industrial markets, bringing design, engineering, production and other capabilities of Alcoa's businesses to customers. In addition to aluminum products and components including flat-rolled products, hard alloy extrusions, and forgings, Alcoa also markets Alcoa® wheels, fastening systems, precision and investment castings, and building systems. The Company has been named one of the top most sustainable corporations in the world at the World Economic Forum in Davos, Switzerland and has been a member of the Dow Jones Sustainability Index for seven consecutive years. More information can be found at www.alcoa.com.
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