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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


Grievance Mechanisms

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In addition to their potential for fostering sustainable development in host countries, large-scale investment projects can sometimes have adverse effects, including employment conflicts or even human rights violations, leading to grievances from third parties, such as workers or local community members.  

Host country governments should ensure that courts or other judicial processes are accessible to those third parties for addressing investment-related grievances. Governments can also establish non-judicial grievance mechanisms to complement these processes. Such grievance mechanisms can serve as a useful forum for the expression of community and worker concerns or the resolution of disputes, which in turn can help to ensure greater stability and commercial certainty for the investment project. Non-judicial grievance mechanisms might be especially useful when a country’s judicial system is already over-burdened and lacks capacity to resolve disputes in a timely manner.

As well as ensuring adequate judicial remedies and potentially developing state-run non-judicial grievance mechanisms, governments can also require or encourage investors to develop their own operational-level grievance mechanisms. Such grievance mechanisms would be operated by the investor or a designated third party, and can be designed to resolve investment-related disputes or grievances using conciliation and negotiation, or through more adjudicatory processes. In addition to state-based and operational-level grievance mechanisms, individuals and communities seeking redress may also have access to other grievance mechanisms in certain contexts, such as those established by international financial institutions financing part or all of the investment or by relevant multi-stakeholder initiatives.

Key Tools At This Stage

Useful Resources


IPIECA Community Grievance Mechanisms in the Oil and Gas Industry Go to resource

  • Date:  2015
  • Sector:  Oil & Gas
  • Source:  IPIECA

This manual provides practical step-by-step guidance on how to plan and implement operational-level community grievance mechanisms (CGMs) and how to design and to manage corporate CGM frameworks. It draws on the practical experiences of seven pilot projects conducted by IPIECA member companies as well as the shared learning from other IPIECA members and stakeholders. Presented in three main sections and subdivided into ‘modules’, the manual can be read in full or in parts of specific interest to users. Step-by-step overviews are provided throughout, together with practical advice for those implementing or managing CGMs. Also included is an Annex with a broad range of practical CGM tools.

IPIECA Community Grievance Mechanisms Toolbox Go to resource

  • Date:  2014
  • Sector:  Oil & Gas
  • Source:  IPIECA

This toolbox enables oil and gas companies to create, implement and raise awareness of Community Grievance Mechanisms (CGMs).

Engaging with affected communities and responding to concerns is essential to operating successfully whilst ensuring respect for human rights. Processes that allow concerns to be raised and remedied—also known CGMs—are an important method of achieving this aim.

The IPIECA CGM toolbox is based on the operational experiences of IPIECA member companies. More broadly, this toolbox encourages the implementation of the Access to Remedy pillar outlined in the United Nations Guiding Principles on Business and Human Rights.

IPIECA Human Rights Training Tool Go to resource

  • Date:  2014
  • Sector:  Extractive Industries Oil & Gas
  • Source:  IPIECA

The Human Rights Training Tool (3rd edition) enables oil and gas companies to develop a better understanding of the corporate responsibility to respect human rights and key human rights issues relevant for the industry. It reinforces company expectations and requirements related to human rights and introduces resources to help manage potential human rights issues.

It also includes a dedicated module on labour issues, covering freedom of association and collective bargaining, child labour, forced labour, human trafficking, and elimination of discrimination in respect of employment and occupation. Additionally, it covers key considerations when engaging with suppliers on human rights and labour commitments.

IPIECA Operational Level Grievance Mechanisms: Good Practice Survey Go to resource

  • Date:  2012
  • Sector:  Oil & Gas
  • Source:  IPIECA

This publication draws together key insights on designing and implementing community grievance mechanisms. The survey will inform a series of pilot projects sponsored by member companies to test different approaches to implementation on the ground.

This document surveys the existing body of third- party guidance on operational level grievance mechanisms. It focuses on aspects of the literature of most relevance to the oil and gas industry, including the criteria for effective grievance handling, basic procedural steps, elements of good practice and integration with existing management systems.

Oil and gas activities give rise to varied social and environmental impacts. Companies have extensive systems in place to enhance the positive impacts of their activities and minimize the negative ones. They also seek to build strong relationships with affected communities in order to facilitate their input into decisions about how impacts are identified, avoided or managed. These practices are designed to work together to anticipate and resolve potential issues before they arise. Yet, even when an operation is managed to the highest standards, concerns about its performance can still be expected from time to time. 

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. 

Indigenous Peoples and the Oil and Gas Industry: Context, Issues and Emerging Good Practice Go to resource

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

The document contains an overview of Indigenous Peoples and the policy and regulatory context relevant to the sector’s interaction with them, as well as a summary of some of the specific issues for oil and gas companies to consider when operating in areas with Indigenous Peoples (set around the three themes of consultation and engagement, key issues to manage, and benefits sharing). The document concludes with a summary of emerging good practice.

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.