1. Social and economic benefits: Each Community Development Agreement (CDA) concluded in accordance with Section 38 shall include, at a minimum, terms governing the following elements:
(a) the goals and objectives of the CDA and the parties’ commitment to the principles of cooperation, mutual respect, and good faith in the pursuit of those goals and objectives;
(b) identification of development opportunities and social and economic benefits presented by the Project, including specific opportunities for women to benefit and mechanisms by which the Local Community can take advantage of those opportunities and share in those benefits;
(c) a process for the Local Community to identify local climate change adaptation projects in accordance with Section 40.3.
(d) undertakings with respect to the social and economic contributions that the Project will make to the Local Community, including the amount the Company will pay to a Community Development Fund (CDF), and provisions outlining:
(i) the means by which funds are to be disbursed, for what purposes they may be disbursed, what accounts must be kept and by whom, and Gender-Disaggregated reporting and auditing requirements;
(ii) how women will be involved in the oversight and administration of the CDF, [including earmarking specific amounts that can only be overseen and administered by groups representing women];
(iii) how funds from the CDF will be specifically designated and spent on women’s and men’s programming; and
(iv) how funds from the CDF will be specifically designated and spent on local climate change adaptation projects identified by the Local Community.
(e) undertakings with respect to any fiscal revenues derived from the Project that will be distributed to the Local Community during the Project cycle and after Project Closure through an escrow account controlled by the Parties, including the method of disbursing such funds to support Local Community livelihoods and the parties to whom such funds are to be paid;
(f) undertakings with respect to the provision by the Company of social infrastructure for use by the Local Community;
(g) the roles and obligations of the Local Community to the Company.
2. Joint decision making, consultation, and information sharing: Each CDA shall include, at a minimum, terms governing the following elements:
(a) identification of the person or body that represents the Local Community for the purposes of the CDA;
(b) identification of the person/s, board, committee, or other entity which shall oversee the implementation of the CDA;
(c) the means by which a registry of persons comprising the Local Community for the purposes of the CDA will be developed, maintained, and updated;
(d) the means by which members of the Local Community and representatives of the Company will participate in joint decision-making processes related to the CDA and the Project;
(e) the means by which the interests of women, youth, Indigenous Peoples, and minority and marginalized groups and subcommunities of the Local Community will be represented in decision-making processes related to the CDA and implementation of the CDA;
(f) the frequency and form of information sharing by the Company with respect to the implementation of the CDA and any other relevant information with respect to the Project;
(g) the means by which the Company will engage in consultations with the Local Community in the planning of Project closure and post-closure measures that seek to prepare the Local Community for the eventual closure of the Project.
3. Community Development Plan: Each CDA shall include a Community Development Plan (the CDA Plan), which shall include, at a minimum, terms governing the following elements:
(a) objectives of the CDA Plan;
(b) milestones for the achievement of the objectives of the CDA Plan with metrics by which to measure progress;
(c) an implementation timetable for the delivery of the CDA Plan;
(d) minimum financial commitments of the Company to delivering the CDA Plan with a schedule of anticipated expenditures and periodic reporting requirements as to actual expenditures;
(e) engagement with and linkages between the CDA Plan and other government plans, services, infrastructure and activities provided to or affecting the Local Community;
(f) how the provision of any service provided by the Company to the Local Community will be terminated or transferred to the Local Community, government, or other entity following the term of the CDA;
(g) how and when the CDA Plan will be periodically updated;
(h) how the CDA Plan and any variations to it will be ratified by the Local Community; and
(i) such other content as may be mutually agreed by the Local Community and the Company.
4. Review, reporting, grievances, and disputes: Each CDA shall include, at a minimum, terms governing the following elements:
(a) the means by which the CDA shall be reviewed by the Company and the Local Community every [insert number] calendar years, and the commitment to be bound by the current agreement in the event that any modifications to the agreement sought by one party cannot be mutually agreed with the other party;
(b) the consultative and monitoring frameworks between the Company and the Local Community, and the means by which the Local Community may participate in the planning, implementation, management, measurement (including indicators) and monitoring of activities carried out under the CDA;
(c) the language(s) to be used in the preparation of reports, plans, and other written matters required under the CDA;
(d) the mechanisms whereby the Local Community and subcommunities and members of the Local Community may lodge a grievance with the Company related to the implementation of the CDA;
(e) a statement to the effect that both the Company and Local Community agree that any dispute regarding the CDA shall in the first instance be resolved by consultation between the Company and the Local Community representative(s);
(f) the dispute resolution mechanism to be used when consultation between the Company and the Local Community representative(s) fails;
5. Miscellaneous: Each CDA shall include, at a minimum, terms governing the following elements:
(a) the process by which the CDA may be modified;
(b) the applicable law, which shall be the law of the Host State;
(c) reasons and procedure for declaring force majeure;
(d) duration of the CDA;
(e) termination of the CDA;
(f) assignment of the CDA or any right or obligation thereunder;
(g) transfer of all CDA rights and obligations to any party to whom the Company assigns its tenure rights in accordance with Section 63;
(h) how notifications to respective parties shall be made;
(i) location where the CDA may be accessed by members of the Local Community;
(j) the CDA signatories, which may for the Local Community be the representatives of the Local Community, representatives of subcommunities comprising the Local Community, Local Community members or any combination thereof, non-governmental organizations, and others as the need requires.
[EXAMPLES OF OTHER POSSIBLE ANNEXES TO BE DEVELOPED BY THE PARTIES, AS REQUIRED BY CONTEXT]
- With respect to new infrastructure:
- A Contract Farming Agreement (see Section 35.11)
- An agreement for the provision of Environmental Performance Payments (see Section 39.4)
- An asset inventory (see Section 66.1)
For more information: These terms have been lightly adapted from the Community Development Agreement Model Regulations & Example Guidelines: http://documents.worldbank.org/curated/en/278161468009022969/pdf/614820WP0P11781nal0Report0June02010.pdf
Previous Scroll to top Next