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1 Setting the Legal and Policy Framework

Stage 1:
Setting the Legal & Policy Framework

Setting the Legal and Policy Framework refers to the need for a country to formulate clear policies and strategies that both attract FDI and benefit the country.

Government Policies and Strategies Legislative and Regulatory Frameworks Sector-Wide Analyses
2 Pre-Negotiation

Stage 2:
Pre-Negotiation Stage

The Pre-Negotiation Stage refers to the period during which a government identifies a particular project or investment and conducts feasibility studies and impact assessments.

Feasibility Studies Impact Assessments Tender Process and Financial Structure
3 Contract Negotiation

Stage 3:
Contract Negotiation Stage

The Contract Negotiation Stage refers to the actual negotiation of investment contracts between a government and an investor.

Prepare for the Negotiation Assemble a Negotiation Team Develop a Negotiation Position Contract Negotiation
4 Contract Implementation and Monitoring

Stage 4:
Implementation & Monitoring Stage

The Implementation and Monitoring of the Investment Stage refers to the period during which an investment project is developed and operated pursuant to the terms of the investment contract.

Monitoring Implementation Grievance Mechanisms

Roadmap

Implementation and Monitoring of the Investment Stage

Content of this page:

Once the contract has been signed and ratified, the project development and operations will begin. It is crucial to the sustainability and success of the project that governments have the capacity and resources to oversee the compliance of the contracting parties with the laws of the land and the terms of the contract, as well as to monitor the impact of the operations and related activities on the environment and affected communities.

Contracts should also be made publicly available and easily accessible. Contract transparency helps to hold both the host government and the investor to account and to facilitate the monitoring of contract obligations by government representatives and civil society alike.

Key Tools At This Stage

Useful Resources

Transparency

Implementing EITI for Impact: A Handbook for Policymakers and Stakeholders Go to resource

  • Sector:  Extractive Industries
  • Source:  World Bank

This particular guide is aimed at policymakers, industry, and civil society members who wish to implement the EITI standard. It details what types of regulations must be implemented to become a candidate for the EITI and to comply and remain EITI-compliant.

Available in English, French, and Spanish.

NRGI Guide to the EITI Standard Go to resource

The guide is an online, interactive reference that allows users to explore the opportunities in the EITI Standard in seven policy areas. These areas are based on the extractive industries decision chain and reflect some of the governance challenges most frequently raised by stakeholders. The guide also covers two process areas: civil society participation and multi-stakeholder group governance.

NRGI Reader | Contract Transparency: Creating Conditions To Improve Contract Quality Go to resource

This reader comes from a series of 20 short, illustrated overviews of key topics in the extractives sector. Together they serve as a robust introduction for the lay reader to fundamental issues and concepts in oil, gas and mining sector governance. They contain helpful figures and infographics, and each reader has a standard format: key messages, concepts, case examples, and a final set of practitioner-orientated questions to ask.

NRGI Reader | Publish What You Pay: A Civil Society Coalition for Extractive Sector Transparency and Accountability Go to resource

This reader comes from a series of 20 short, illustrated overviews of key topics in the extractives sector. Together they serve as a robust introduction for the lay reader to fundamental issues and concepts in oil, gas and mining sector governance. They contain helpful figures and infographics, and each reader has a standard format: key messages, concepts, case examples, and a final set of practitioner-orientated questions to ask.

NRGI Reader | The Extractive Industries Transparency Initiative (EITI): Using EITI to Promote Policy Reform Go to resource

This reader comes from a series of 20 short, illustrated overviews of key topics in the extractives sector. Together they serve as a robust introduction for the lay reader to fundamental issues and concepts in oil, gas and mining sector governance. They contain helpful figures and infographics, and each reader has a standard format: key messages, concepts, case examples, and a final set of practitioner-orientated questions to ask.

NRGI Reader | Transparency Mechanisms and Movements: Tools to Foster Openness and Accountability Go to resource

This reader comes from a series of 20 short, illustrated overviews of key topics in the extractives sector. Together they serve as a robust introduction for the lay reader to fundamental issues and concepts in oil, gas and mining sector governance. They contain helpful figures and infographics, and each reader has a standard format: key messages, concepts, case examples, and a final set of practitioner-orientated questions to ask.

The Extractive Industries Sector : Essentials for Economists, Public Finance Professionals, and Policy Makers Go to resource

  • Date:  2015
  • Sector:  Extractive Industries
  • Source: 

The extractive industries (EI) sector occupies an outsize space in the economies of many developing countries. Economists, public finance professionals, and policy makers working in such countries are frequently confronted with issues that require an in-depth understanding of the sector. The objective of this volume is to provide a concise overview of EI-related topics these professionals are likely to encounter. The volume provides an overview of issues central to EI economics; discusses key components of the sector’s governance, policy, and institutional frameworks; and identifies the public sector’s EI-related financing obligations. Its discussion of EI economics covers the valuation of subsoil assets, the economic interpretation of ore, and the structure of energy and mineral markets. The volume maps the responsibilities of relevant government entities and outlines the characteristics of the EI sector’s legal and regulatory frameworks. Specific key functions of the sector are briefly discussed, as are the financial structures that underpin environmental and social safeguards; investment of public revenues generated from oil, gas, or minerals; as well as extractive-based economic diversification. The authors hope that decision makers in ministries of finance, international organizations, and other relevant entities will find the study useful to their understanding and analysis of the EI sector.The extractive industries (EI) sector occupies an outsize space in the economies of many developing countries. Economists, public finance professionals, and policy makers working in such countries are frequently confronted with issues that require an in-depth understanding of the sector. The objective of this volume is to provide a concise overview of EI-related topics these professionals are likely to encounter. The volume provides an overview of issues central to EI economics; discusses key components of the sector’s governance, policy, and institutional frameworks; and identifies the public sector’s EI-related financing obligations. Its discussion of EI economics covers the valuation of subsoil assets, the economic interpretation of ore, and the structure of energy and mineral markets. The volume maps the responsibilities of relevant government entities and outlines the characteristics of the EI sector’s legal and regulatory frameworks. Specific key functions of the sector are briefly discussed, as are the financial structures that underpin environmental and social safeguards; investment of public revenues generated from oil, gas, or minerals; as well as extractive-based economic diversification. The authors hope that decision makers in ministries of finance, international organizations, and other relevant entities will find the study useful to their understanding and analysis of the EI sector.

The Extractive Industries Sector : Essentials for Economists, Public Finance Professionals, and Policy Makers Go to resource

  • Date:  2015
  • Sector:  Extractive Industries
  • Source: 

The extractive industries (EI) sector occupies an outsize space in the economies of many developing countries. Economists, public finance professionals, and policy makers working in such countries are frequently confronted with issues that require an in-depth understanding of the sector. The objective of this volume is to provide a concise overview of EI-related topics these professionals are likely to encounter. T

he volume provides an overview of issues central to EI economics; discusses key components of the sector’s governance, policy, and institutional frameworks; and identifies the public sector’s EI-related financing obligations. Its discussion of EI economics covers the valuation of subsoil assets, the economic interpretation of ore, and the structure of energy and mineral markets. The volume maps the responsibilities of relevant government entities and outlines the characteristics of the EI sector’s legal and regulatory frameworks. Specific key functions of the sector are briefly discussed, as are the financial structures that underpin environmental and social safeguards; investment of public revenues generated from oil, gas, or minerals; as well as extractive-based economic diversification.

The authors hope that decision makers in ministries of finance, international organizations, and other relevant entities will find the study useful to their understanding and analysis of the EI sector.

Monitoring

A Good Deal Better? Uganda's Secret Oil Contracts (Plus Economic Model) Explained Go to resource

  • Date:  2014
  • Sector:  Extractive Industries, Oil & Gas
  • Source:  Global Witness

Global Witness has analysed and made public two “production sharing agreements” signed by the Ugandan Government and international oil companies in February 2012. They determine what share of oil revenues the Government of Uganda will get and almost every aspect of its relationship with the oil companies. This is the first time this information has been made public.

Their analysis shows that the Ugandan Government has succeeded in negotiating a better financial deal in these contracts compared with older contracts – for which it should be congratulated. But there are some significant weaknesses that still need to be addressed. The contracts lack some important human rights and environmental safeguards. This is of particular concern given the unique habitats of the oil region in Uganda which sits on the border with the Democratic Republic of Congo and the Nile River.

To see how Uganda’s oil money will be shared and evaluate the new contracts against the old contracts see the Revenue Infographic. You can also download Global Witness' open source Economic Model, the first of its kind, which can be updated when new information becomes available or adapted for other countries’ contracts. A guide is also available here.

Biodiversity Management Handbook Go to resource

  • Date:  2007
  • Sector:  Extractive Industries, Mining
  • Source:  CommDev

Handbook on how to manage and maintain biodiversity standards in mining operations. This handbook outlines the key principles and procedures now recognized as leading practice
for assessing biodiversity values, namely:

  • identifying any primary, secondary or cumulative impacts on biodiversity values
  • minimizing and managing these impacts
  • restoring conservation values
  • managing conservation values on a sustainable basis.

Contract Monitoring Roadmap Go to resource

A step-by-step guide to understanding how to monitor a contract in the extractive industries, including tools, resources and case studies for each step. It leads the reader through the process of choosing a monitoring goal, establishing the monitoring mechanism, collecting and analyzing data, and finally publicizing and using data to ensure contract implementation.

The roadmap is also available in French.

Enforcing the Rules: Conclusions and Recommendations Go to resource

A report that aims at helping government and civil society actors understand the challenges and good practices associated with effective oversight and enforcement in the mining industry.

To monitor, mining obligations must first be identified, but they are not always obvious.

FAO: Responsible Governance of Tenure and the Law– A Guide for Lawyers and Other Legal Service Providers Go to resource

The FAO Governance of Tenure Technical Guides are part of FAO’s initiative to help develop capacities to improve tenure governance and thereby assist countries in applying the Voluntary Guidelines on the Responsible Governance of Tenure of Land, Fisheries and Forests in the Context of National Food Security. The FAO Governance of Tenure Technical Guides are prepared by technical specialists and can be used by a range of actors. They:

-Translate principles of the Guidelines into practical mechanisms, processes and actions;

-Give examples of good practice – what has worked, where, why and how;

-Provide useful tools for activities such as the design of policy and reform processes, for the design of investment projects and for guiding interventions. 

How to Scrutinise a Production Sharing Agreement Go to resource

  • Date:  2012
  • Sector:  Extractive Industries, Oil & Gas
  • Source:  IIED

The guide discusses the provisions of a particular type of oil and gas contract, the Production Sharing Agreement (PSA). While the guide is aimed at a general civil society readership, it draws particularly on experience from Kazakhstan. Its purpose is to give an accessible account of some key characteristics of PSAs, with a focus on revenue issues, and to suggest action points for civil society organisations involved with monitoring extractive industries. Indeed, in recent years the management of extractive industry revenues has become of growing concern to public opinion in resource-rich states.

Implementing EITI for Impact: A Handbook for Policymakers and Stakeholders Go to resource

  • Sector:  Extractive Industries
  • Source:  World Bank

This particular guide is aimed at policymakers, industry, and civil society members who wish to implement the EITI standard. It details what types of regulations must be implemented to become a candidate for the EITI and to comply and remain EITI-compliant.

Available in English, French, and Spanish.

Land Matrix Global Observatory Go to resource

The Land Matrix is a global and independent land monitoring initiative. Its goal is to facilitate an open development community of citizens, researchers, policy-makers, and technology specialists to promote transparency and accountability in decisions over land and investment.

NRGI Reader | Extractives-Linked Infrastructure: Exploring Options for Shared Use of Infrastructure Projects Go to resource

This reader comes from a series of 20 short, illustrated overviews of key topics in the extractives sector. Together they serve as a robust introduction for the lay reader to fundamental issues and concepts in oil, gas and mining sector governance. They contain helpful figures and infographics, and each reader has a standard format: key messages, concepts, case examples, and a final set of practitioner-orientated questions to ask.

NRGI- Enforcing the Rules Go to resource

Enforcing the Rules: Government and Citizen Oversight of Mining, examines the gaps in effective monitoring of mining obligations, identifies good practices and proposes practical avenues for improvement. 

In many countries rich in minerals, mining deals between industry and government have failed to deliver the benefits citizens expect—not only because of bad contracts but also because governments and civil society fail to effectively monitor and enforce company compliance with the terms of good contracts.

Recent years have brought significant improvements in industry and government transparency, national mining laws and contracts, but monitoring remains the only way to determine whether the deals struck with companies reflect what is being implemented on the ground. Many developing countries with weak regulatory systems lack the capacity or political will to ensure that company obligations are enforced. The result can be losses of billions of dollars to tax evasion and fraud, and harm to workers, the environment and social peace.

Public-Private Partnerships Reference Guide: Version 2.0 Go to resource

The PPP Reference Guide is a comprehensive resource for PPP practitioners worldwide, drawing from global approaches and experiences.

The PPP Reference Guide seeks to provide advice on what PPP practitioners should know, rather than provide advice on what to do. The Guide sets out the main topics, looks at the key issues that must be addressed, and provides some of the most important references that PPP practitioners can turn to for answers and to enhance their own knowledge and understanding.

The website is also available in French and Spanish, but the document is only available in english.

It is structured into separate sections that focus on three main areas:

  1. What are PPPs, when might they be used and what are the advantages and disadvantages relative to public provision;
  2. What kind of policy, legal and institutional frameworks should be put into place to help improve their effectiveness; and
  3. What are the ways in which PPP projects can be developed and implemented.

A diverse range of case studies and institutional solutions, from all parts of the world, are presented in the PPP Reference Guide.

Social and Environmental Sustainability of Agriculture and Rural Development Investments: A Monitoring and Evaluation Toolkit Go to resource

The purpose of this toolkit is to provide practical guidance in the monitoring and evaluation of the environmental and social sustainability of Agricultural and Rural Development programs and projects.

The website is available in Arabic, Chinese, English, French, Russian, and Spanish, but the document is only available in English. 

The Extractive Industries Sector : Essentials for Economists, Public Finance Professionals, and Policy Makers Go to resource

  • Date:  2015
  • Sector:  Extractive Industries
  • Source: 

The extractive industries (EI) sector occupies an outsize space in the economies of many developing countries. Economists, public finance professionals, and policy makers working in such countries are frequently confronted with issues that require an in-depth understanding of the sector. The objective of this volume is to provide a concise overview of EI-related topics these professionals are likely to encounter. The volume provides an overview of issues central to EI economics; discusses key components of the sector’s governance, policy, and institutional frameworks; and identifies the public sector’s EI-related financing obligations. Its discussion of EI economics covers the valuation of subsoil assets, the economic interpretation of ore, and the structure of energy and mineral markets. The volume maps the responsibilities of relevant government entities and outlines the characteristics of the EI sector’s legal and regulatory frameworks. Specific key functions of the sector are briefly discussed, as are the financial structures that underpin environmental and social safeguards; investment of public revenues generated from oil, gas, or minerals; as well as extractive-based economic diversification. The authors hope that decision makers in ministries of finance, international organizations, and other relevant entities will find the study useful to their understanding and analysis of the EI sector.The extractive industries (EI) sector occupies an outsize space in the economies of many developing countries. Economists, public finance professionals, and policy makers working in such countries are frequently confronted with issues that require an in-depth understanding of the sector. The objective of this volume is to provide a concise overview of EI-related topics these professionals are likely to encounter. The volume provides an overview of issues central to EI economics; discusses key components of the sector’s governance, policy, and institutional frameworks; and identifies the public sector’s EI-related financing obligations. Its discussion of EI economics covers the valuation of subsoil assets, the economic interpretation of ore, and the structure of energy and mineral markets. The volume maps the responsibilities of relevant government entities and outlines the characteristics of the EI sector’s legal and regulatory frameworks. Specific key functions of the sector are briefly discussed, as are the financial structures that underpin environmental and social safeguards; investment of public revenues generated from oil, gas, or minerals; as well as extractive-based economic diversification. The authors hope that decision makers in ministries of finance, international organizations, and other relevant entities will find the study useful to their understanding and analysis of the EI sector.

The Extractive Industries Sector : Essentials for Economists, Public Finance Professionals, and Policy Makers Go to resource

  • Date:  2015
  • Sector:  Extractive Industries
  • Source: 

The extractive industries (EI) sector occupies an outsize space in the economies of many developing countries. Economists, public finance professionals, and policy makers working in such countries are frequently confronted with issues that require an in-depth understanding of the sector. The objective of this volume is to provide a concise overview of EI-related topics these professionals are likely to encounter. T

he volume provides an overview of issues central to EI economics; discusses key components of the sector’s governance, policy, and institutional frameworks; and identifies the public sector’s EI-related financing obligations. Its discussion of EI economics covers the valuation of subsoil assets, the economic interpretation of ore, and the structure of energy and mineral markets. The volume maps the responsibilities of relevant government entities and outlines the characteristics of the EI sector’s legal and regulatory frameworks. Specific key functions of the sector are briefly discussed, as are the financial structures that underpin environmental and social safeguards; investment of public revenues generated from oil, gas, or minerals; as well as extractive-based economic diversification.

The authors hope that decision makers in ministries of finance, international organizations, and other relevant entities will find the study useful to their understanding and analysis of the EI sector.

Toolkit for Public-Private Partnerships in Roads and Highways Go to resource

  • Date:  2009
  • Sector:  Infrastructure
  • Source:  PPIAF

Assists transport sector policy makers in low- and middle-income countries in implementing procedures to promote private sector participation and financing in the development of their road and highway sector.

Towards Sustainable Decommissioning and Closure of Oil Fields and Mines: A Toolkit to Assist Government Agencies Go to resource

  • Sector:  Extractive Industries, Mining, Oil & Gas
  • Source:  World Bank

This toolkit is designed to increase the level of awareness on decommissioning and closure issues. It serves as guidance to government authorities, institutions and regulatory agencies, in natural-resource rich, developing countries, seeking to establish or improve closure and decommissioning programs for the extractives sectors.

Voluntary Guidelines on the Responsible Governance of Tenure of Land, Fisheries and Forests in the Context of National Food Security Go to resource

A reference and guide to improve the governance of tenure of land, fisheries and forests with the overarching goal of achieving food security for all and to support the progressive realization of the right to adequate food in the context of national food security.

Voluntary Principles on Security and Human Rights: Implementation Guidance Tools Go to resource

  • Date:  2012
  • Sector:  Extractive Industries, Oil & Gas
  • Source:  IPIECA

Designed to help extractive companies maintain the safety and security of their operations within an operating framework that ensures respect for human rights and fundamental freedoms and, when applicable, for international humanitarian law. The tools serve as a helpful reference guide to ensure that operations are undertaken in a manner that ensures respect for human rights and fundamental freedoms.

Impact Assessments

A Practical Guide to Dealing with Land Disputes Go to resource

This guide has been written for all those working in the land sector, in natural resource management and in urban and rural development. It aims to broaden the understanding of the complexity of causes that lead to land conflicts in order to provide for better-targeted ways of addressing such conflicts. It also provides a number of tools with which to analyse land conflicts. 

Biodiversity Management Handbook Go to resource

  • Date:  2007
  • Sector:  Extractive Industries, Mining
  • Source:  CommDev

Handbook on how to manage and maintain biodiversity standards in mining operations. This handbook outlines the key principles and procedures now recognized as leading practice
for assessing biodiversity values, namely:

  • identifying any primary, secondary or cumulative impacts on biodiversity values
  • minimizing and managing these impacts
  • restoring conservation values
  • managing conservation values on a sustainable basis.

FAO Investment Centre Environmental Impact Guidelines Go to resource

Guidelines that provide an overview of how to conduct environmental impact assessments of agriculture and sector-related investments.

Guidebook for Evaluating Mining Project EIAs Go to resource

The guidebook will help governments, public interest lawyers, grassroots advocates, and community members understand mining EIAs, identify flaws in mining project plans, and explore ways that mining companies can reduce the public health hazards associated with mining.

ICMM Land Acquisition and Resettlement: Lessons Learned Go to resource

  • Date:  2015
  • Sector:  Extractive Industries, Infrastructure, Land & Agriculture, Mining, Oil & Gas
  • Source:  ICMM

The publication provides recommendations for managing the resettlement of local communities who have been displaced or whose livelihoods have been impacted due to the presence of mining. This includes ensuring adequate compensation and development opportunities.

The document is structured around 10 modules that cover planning, stakeholder engagement, compensation, livelihood restoration and monitoring impacts among other topics.

It is targeted primarily at companies, but also contains information and guidance relevant for all stakeholders, including government representatives.

New Alliance Analytical Framework for Responsible Land-Based Agricultural Investments Go to resource

This analytical framework is designed to assist investors in aligning their policies and actions with global and continental guidelines on responsible land-based investments, most notably the Voluntary Guidelines on the Responsible Governance of Tenure of Land, Fisheries and Forests in the Context of National Food Security (VGGT) and the Guiding Principles on Large Scale Land Based Investments in Africa (LSLBI). 

The Framework offers investors a due diligence and risk management resource to apply to their land-based agricultural investments. It is an effort to provide advice and highlight best practices related to structuring investments in the most responsible way possible.

The Framework includes red lines that indicate in which situations investment projects should be cancelled if no benign alternatives can be found. 

The Framework should be used throughout the life of the project, beginning with the preliminary project assessment, followed by the due diligence phase and continuing through the negotiation, agreement, operation and close-out phases. Hence, while the Framework ideally should be used from the beginning of a project, it can also be used after a project has commenced, as land tenure risks can and should be assessed well beyond the due diligence and start-up periods, especially in areas where communities have insecure land rights.

The Framework was developed by an international group of land experts and vetted through consultation with a broad array of stakeholders. The New Alliance and Grow Africa Leadership Council welcomed and recognized the Analytical Framework as a tool for investors, and agreed to assess experience with the framework in one year.

Community Development Agreements

ATNS Database Go to resource

Base de données sur les accords entre les peuples autochtones et autres en Australie, au Canada, en Nouvelle-Zélande et en Afrique du Sud.

La base de données propose un éventail de fonctions, notamment :

Des informations de base sur chaque accord ;

Des liens vers les accords, organisations, signataires et événements correspondants ;

Un glossaire de la terminologie pertinente ; et

Un accès direct aux ressources publiées et en ligne.

ATNS Database: Agreements, Treaties and Negotiated Settlements with Indigenous Peoples in Settler States Go to resource

A database of agreements between indigenous peoples and others in Australia, Canada, New Zealand, and South Africa.

The database offers a range of features including:

  • Background information on each agreement;
  • Links to related agreements, organizations, signatories and events;
  • A glossary of relevant terminology; and
  • Direct access to published and online resources.

CCSI CDA Database & Community Development Requirements Mapping Go to resource

Governments are increasingly requiring mining companies to deliver social and economic benefits to local communities when undertaking mining projects. These requirements are encapsulated in different ways in countries’ regulatory frameworks, from a loosely expressed obligation to provide benefits to local communities, through community development plans, to community development funds and community development agreements (CDA). In some cases, the company delivers benefits voluntarily (i.e., in the absence of legal requirements) through agreements with local communities or other initiatives.

Columbia Center on Sustainable Investment (CCSI) is collecting and reviewing these community development requirements globally, as found in countries’ legislation, regulations and policies. Voluntary initiatives undertaken by companies are also being considered. This tool maps out those requirements globally, and contains a collection of available CDAs.

Community Development Agreement Library Go to resource

SDSG is establishing a public library of materials related to Community Development Agreements (CDA) between resource companies and local communities. Some of these may also involve government at the national or local levels. The goal of the library project is to allow sharing of experience and actual models from different countries and regions.

This library includes materials about Community Development Agreements, which are also called by different names, such as IBAs, or “Impact Benefit Agreements.”Some of the materials also include discussions of how CDAs are negotiated, or which discuss overcoming the difference in capacity of the various parties to negotiation.

In addition, the library includes copies of actual agreements that have been negotiated in different communities, in any language.

Community Development Agreement Model Regulations & Example Guidelines Go to resource

  • Date:  2010
  • Sector:  Extractive Industries, Land & Agriculture, Mining, Oil & Gas
  • Source:  World Bank

This report provides a draft model community development agreement regulations suitable for adoption into legislation or which can be modified for use as guidelines.