Public Accountability for Private International Financing of Natural Resource Development Projects: The un Rule of Law Initiative and the Equator Principles

Abstract

A striking feature of public international financing for natural resource development projects in developing economies is the introduction of public accountability mechanisms to ensure that these projects comply with social and environmental principles and standards. As the public international financing of such projects gives way to private international finance, this article will examine whether similar accountability mechanisms have been developed for this type of private international financing for such projects. Within this context, the third iteration of the Equator Principles has recently been adopted by a growing number of private international finance institutions in the ‘project finance’ field. By comparing these public and private accountability mechanisms, with reference to the un’s ‘rule of law’ initiative, this article will assess whether there has been adequate replication of public accountability standards in the movement from public to private international financing of natural resource projects, especially within developing economies.