Draft Model Community Development Agreement

Rationale

PREAMBLE• The preamble sets the tone of the

agreement, the intention and purpose behind it.

• A preamble can sometimes be used to interpret an agreement if there are any inconsistencies in the clauses later on.

• First Line of Preamble States• Noting that the purpose of this

Agreement is to promote sustainable development and to enhance the general welfare and quality of life of the inhabitants of the Primary Host Community

Negotiations for the CDA• Mining Companies and

Communities may need to negotiate on issues that are not included in the CDA draft model agreement.

• However in designing the draft we included as many issues as possible to reduce the need for mining companies and communities to negotiate.

• Community groups need to elect representatives who may participate in any negotiations.

• The Draft Model CDA Agreement is a guide which can be adapted to suit particular contexts.

Principles for the Negotiation Process

• Broad based primary host community consultations to be held prior to negotiations so communities will know about the CDA and what it means.

• Communities should be informed that they have a right to participate in CDA process and elect their own representatives.

• The provisions of this Model Agreement shall be used as a guide by the parties which can be adapted to suit their unique context and circumstance

OBJECTIVES OF THE CDA

• Ultimate objective of a CDA is to promote sustainable development and the welfare of communities.

• To ensure that mining communities benefit from the exploitation of resources in their locality.

How long does the CDA last for?• A community development agreement will presumably last as

long as the mining lease agreement does and while the mining company is operating.

• By interpreting section 139 (4) of the Mines Act, it seems that even if a CDA is signed before production starts, monies will only be paid when the mining company starts production and generates revenue.

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REVIEW OF THE COMMUNITY DEVELOPMENT AGREEMENT

• The first review of the CDA should occur five years after it was signed and executed. Sec 140 (1) (e)

• However if parties cannot mutually agree upon any changes suggested by the other party, the agreement will stay the same and both parties will be bound to it.

Community Development Committee

• The CDC will represent the Community in the CDA process.

• The CDC is designed to include all key stakeholders in the community and to represent their interests i.e. chiefs, women, youth, MPs, local councils, farmers, landowners etc.

Who will be on the Community Development Committee?

Paramount Chief Section Chief MPs Local Councilor Development Officer Women Youth Landowners Farmers Religious leaders Mineral Right Holder

What will the CDC do?

• Approve development projects to be funded by the CDA

• Monitor the implementation of development projects

• Make decisions for the award of contracts• Elect members to the Technical Group• Perform any other function required

Technical Group

• The Technical Group is the technical arm of the CDC comprised of people with some professional background.

• It will contain two members of the Mining Company

• It will be responsible for implementation of the CDA

Who is on the Technical Group?

• Chair• Vice Chair• Treasurer• Secretary • Development officer of

Local Council

What will the Technical Group do?

• Oversee the implementation of the CDA• Disseminate information on the

implementation and activities of the CDA• Keep accounts• Administer Budget• Make recommendations to the CDC on

development projects to be implemented annually

Management of Funds• A bank account will be opened

in the name of the CDA Fund.• The Chair of the CDC has to

approve all payments.• The treasurer of the Technical

Group has to present audited financial statements at end of every year to CDC/NMA

• Financial statements of the CDA will be audited at end of every year by auditing firm.

CDA Projects• In order to identify potential

development projects, the local development plan and the community development action plan will be used.

• The CDC can also identify other projects that are urgently needed.

• The CDC has to approve all development projects before they are implemented.

• The primary host community will be informed of development projects chosen for implementation

SCHEDULES

• The Schedules in the draft model CDA provide details or procedures to be followed in the implementation of the CDA.

EXAMPLES• Procedures for electing

CDC representatives• Financial procedures• Conflict Resolution

mechanism

Conflict Resolution Mechanism• Sec 140 (1) (g) states: disputes

to be resolved in first instance by consultation between Community and Company.

• The draft model CDA establishes a conflict resolution committee.

• The committee will have representatives from the community, mining company, Government, Civil Society and religious heads

• If a conflict cannot be resolved it will be referred to the Minister and any decision taken will be final.

THE END

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