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GMoU - Agreements
In 2006, SPDC introduced a new way of working with communities called the Global Memorandum of Understanding (GMoU), which has continued to be used successfully by other oil companies.
A GMoU is an agreement between SPDC and a group (or cluster) of several communities. Clusters are based on local government or clan/historical affinity lines as advised by the relevant state government.
The GMoU brings communities together with representatives of state and local governments, SPDC and non-profit organizations, such as development NGOs, in a decision-making committee called the Cluster Development Board (CDB).
Under the terms of the GMoUs, the communities decide the development they want while SPDC on behalf of its joint venture partners, provides secure funding for five years, ensuring that the communities have stable and reliable finances as they undertake the implementation of their community development plans.
The GMoUs or agreements represent an important shift in approach, placing emphasis on more transparent and accountable processes, regular communication with the grassroots, sustainability and conflict prevention.
Progress so far
By the end of 2011, SPDC had signed and implemented agreements with 27 clusters, covering 290 communities, about 30% of the local communities around our business operations in the delta. In 2011, a total of 596 projects had been successfully completed through GMoU (including pre-GMoU projects). To date over $79 million has been provided in funding. Nine of the 27 CDBs have grown to become registered foundations now receiving third party funding.
Success Stories - Scholarships/Education
Four clusters in Rivers State (Degema 3, Akuku Toru, IA and Etche 1), have awarded both in-country and overseas scholarships to indigenes.
To date, about 7,392 Nigerian students from SPDC host communities have benefited from incountry merit scholarship programmes.
In addition, a total of 21 scholarships to universities in the UK have been awarded.
Some of the overseas scholars have concluded their programmes and returned to Nigeria and are now working in various organisations.
In Tarakiri Cluster of Bayelsa State, a four-month adult literacy program is being implemented in partnership with the National Youth Service Corps. Forty-six indigenes are being prepared for the First School Leaving Certificate Examination in 2012. The cluster is also reaching out to interested organisations to expand the programme and increase the