IISD Model Contract Clauses for Responsible Investment in Agriculture:

Customizable legal provisions to help implement international best practices, principles, and guidance on responsible agricultural investment

38. Community Development Agreement

 

38.1 No later than [insert number] [months]/[years] from the Signature Date and in any event prior to commencing operations, the Company, in consultation with members of the Local Community, shall conclude one or more Community Development Agreements.

38.2 Each Community Development Agreement shall aim to promote sustainable development, Gender Equality and women’s empowerment, and enhance the general welfare and quality of life of the Local Community, as well as to recognize and respect the rights, customs, traditions, and religions of the Local Community.

38.3 Each Community Development Agreement shall comply with the Applicable Law and the requirements set out in Annex C to this Agreement.

38.4 The Company shall consult with the Local Community to establish a process, plan, and program for the conclusion and implementation of each Community Development Agreement, including:

(a) consultations with equal numbers of women and men over the elements contained in the Community Development Agreement, and periodic consultations following the conclusion of the Community Development Agreement to ensure its continued relevance to women and men.

(b) the creation of institutional arrangements governing the relationship between the Company and the Local Community.

(c) arrangements for communications, information-sharing and joint decision-making processes between the Company and the Local Community.

38.5 A Material Breach by the Company of a Community Development Agreement shall constitute a Material Breach of this Agreement.

38.6 The Company shall report on the implementation of each Community Development Agreement, specifying progress toward Gender Equality as realized through the activities provided for in the Community Development Agreement.


For more information: See generally IISD, 2014, Section 8.5 (Community Development Agreement); ISLP & CCSI, 2016, Section 2.13.7 (Agreements With Local Communities); Szoke-Burke et al, 2018, p. 11 (Types of Contracts); Aizawa & Mann, 2021, Section 4.4 (Maximise Opportunities for Local  Economic and Social Development); UNIDROIT & IFAD, 2021, Chapter 2.III.B (Community Development Agreements).

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