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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

Prepare and Manage the Tender Process

Content of this page:

The objective of awarding a concession or license through a competitive bidding or tender process is to identify the best contracting party through a sound, competitive, inclusive, and transparent process.

Competitive bids are commonly used for the development of infrastructure projects to promote value for money.

Competitive bidding is also becoming more widespread in the extractive industries, especially where there is already geological information available on a particular mineral or petroleum reserve. The alternative to a competitive bidding process is to award mineral or petroleum rights on a first come, first served basis.

The documentation governing the tender process needs to be well-drafted and comprehensive, setting out the material terms and conditions for agreement, pre-conditions and parameters for the investment and ensuring the tender process is conducted transparently.

For more information on competitive bids and unsolicited bid proposals for infrastructure projects, including guidelines, standardized bidding documents and checklists, see Procurement Processes and Bidding Documents on the World Bank’s Infrastructure Resource Center.

To learn more about the mineral resource tenders, see the World Bank’s Mineral Resource Tenders and Mining Infrastructure Projects:  Guiding Principles.

Key Tools At This Stage

Useful Resources

Tendering & Procurement

Attracting Investors to African Public-Private Partnerships: A Project Preparation Guide Go to resource

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

This publication is an earlier version of the book above on "How to Engage with the Private Sector in Public-Private Partnerships in Emerging Markets". This book was aimed at African public sector officials while the updated version focuses beyond Africa with a wide range of case studies from several regions and sectors to show a more global perspective and experiences. 

The publication is also available in French.  

Guidelines for Good Governance in Emerging Oil and Gas Producers, 2016 Go to resource

  • Date:  2016
  • Sector:  Extractive Industries, Oil & Gas
  • Source:  Chatham House

The Guidelines for Good Governance in Emerging Oil and Gas Producers 2016, compiled under the auspices of the New Petroleum Producers Discussion Group, review common challenges facing emerging producer countries in the phases of exploration, recent discoveries and early production. The following are the Guidelines’ broad recommendations for addressing these challenges.

Key objectives for the petroleum sector

Objective 1: Elaborate a strategic vision for the sector

Objective 2: Attract the most qualified investor for the long run

Objective 3: Maximize economic returns to the state through licensing

Objective 4: Earn and retain public trust and manage public expectations

Objective 5: Increase local content and benefits to the broader economy

Objective 6: Build capable national organizations to participate in and oversee the development of the resources

Objective 7: Increase accountability

Objective 8: Safeguard the environment

For each objective, the Guidelines discuss specific challenges related to the national contexts that face many emerging producers. Producers involved in the project offer their ‘lessons learned’ throughout this document.

Mineral Resource Tenders and Mining Infrastructure Projects: Guiding Principles Go to resource

  • Date:  2011
  • Sector:  Extractive Industries, Mining
  • Source:  World Bank

A guide on how to tender mineral assets and mining-related infrastructure. It offers advice on how to choose the appropriate tendering process, a review of recent trends in the tendering of mineral resources and a discussion of the structure of the tender and of the PPP process.

The guide also contains a detailed case study of Afghanistan’s Aynak copper deposit to illustrate the application of an international competitive bidding procedure in the tendering of mineral resources in a developing country.

Miongozo ya Utawala Bora katika Wazalishaji wa Kujitokeza wa Mafuta na Gesi 2016 [Guidelines for Good Governance in Emerging Oil and Gas Producers, 2016 - Swahili version] Go to resource

  • Date:  2016
  • Sector:  Extractive Industries, Oil & Gas
  • Source:  Chatham House

2016 Mwongozo, uliotayarishwa chini ya Uangalizi wa Kikundi cha Majadiliano cha Wazalishaji Wapya wa Mafuta, urekebishaji wa changamoto za kawaida zinazokabili Mataifa zalishaji yanayoibuka yaliyo katika awamu ya utafutaji, uvumbuzi wa hivi majuzi na uzalishaji wa mapema. Yafuatayo ni mapendekezo pana ya ule Mwongozo ya kubabiliana na changamoto hizi.

Zingatia malengo Mwongozo huu umeundwa kutokana na malengo yaliyoorodheshwa hapa chini. Serikali lazima ziwe na mtazamo wazi wa umuhimu wa kila lengo. Lengo la 1 ambalo linahusu ono la taifa linafaa kuimarisha yale malengo mengine. Malengo muhimu ya sekta ya petroli:

Lengo la 1: Fafanua maono ya kimkakati ya sekta

Lengo la 2: Vutia wawekezaji waliohitimu zaidi kwa muda mrefu

Lengo la 3: Fikia upeo wa juu zaidi wa faida za kiuchumi kwa taifa kupitia kutoa leseni

Lengo la 4: Kupata na kudumisha imani ya umma na kusimamia matarajio ya umma

Lengo la 5: Zidisha maudhui ya kienyeji na faida kwa uchumi mpana zaidi

Lengo la 6: Jenga mashirika ya kitaifa yaliyo na uwezo ya kushiriki na kusimamia ukuzaji wa rasilimali

Lengo la 7: Zidisha uwajibikaji

Lengo la 8: Linda mazingira Kwa kila lengo, Mwongozo huu unajadili changamoto maalum zinazohusiana na mazingira ya kitaifa ambayo wazalishaji wengi wanaoibuka wanakumbana nazo. Kote katika waraka huu wazalishaji wanaoshiriki katika mradi huu wanatoa ‘mafunzo waliyojifunza’.

NRGI Reader | Granting Rights to Natural Resources: Determining Who Takes Natural Resources Out of the Ground 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.

OECD Procurement Toolbox Go to resource

  • Sector:  Extractive Industries, Infrastructure
  • Source:  OECD

This Toolbox is an on-line resource that captures emerging good practice to enhance corruption prevention and good management in public procurement in OECD and non-OECD countries. The tools contained in this website have been compiled from practices which have been successfully tested in a number of countries.

The tools are classified according to their use in the procurement cycle (pre-tendering phase, tendering phase, post-award phase, or entire procurement cycle) and also by theme according to the pillars underlying the OECD Recommendation (transparency, good management, prevention of misconduct, or accountability and control.)

Open Contracting Go to resource

A collaborative online platform for public procurement practitioners, this online platform seeks to provide a space where interested stakeholders from civil society, government, the private sector, media, academia, and others can share, learn, connect and collaborate around experiences in open contracting.

Open Contracting seeks to help ensure broader consensus around the importance of enhanced disclosure and participation in public contracting, at all stages of the contracting process and across all sectors. This community is used to support knowledge exchange between countries, identifying challenges and proposing solutions needed to address those challenges.

The Open Contracting Resources section contains a list of monitoring resources and a database of tender information from countries around the world. 

Petroleum Allocation and Exploration Rights: Allocation Strategies and Design Issues Go to resource

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

An introduction to the factors that affect the efficient and transparent allocation of petroleum exploration, development, and production rights. It discusses the different political, economic and social interests that go into the allocation of these rights and touches upon various approaches to allocate them, including legal and fiscal issues. It then guides the reader through how to design an appropriate rights allocation system.

PPP in Infrastructure Resource Center for Contracts, Laws, and Regulation (PPPIRC) Go to resource

A website that provides practical guidance and best practice in the planning, development and legal structuring of infrastructure projects, especially those involving the private sector.

The website includes sample documents, clauses and legislation from the power, water and sanitation, telecom, and transport sectors. It also includes standard procurement and bidding documents. Materials are available in English, French and Spanish.

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.

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.