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Local Level Agreements in Mongolia’s Resource Sector: Lessons Learned and the Way Forward

5 December 2017
Author
Byambajav Dalaibuyan
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Local Level Agreements in Mongolia’s Resource Sector: Lessons Learned and the Way Forward (PDF 223.89 KB)
Topics
Contract transparency and monitoringMeasurement of environmental and social impactsRevenue managementRevenue sharingSubnational governanceTax policy and revenue collection
Countries
AustraliaCanadaMongolia
Stakeholders
Civil society actorsGovernment officialsJournalists and mediaPrivate sector
Precepts
P5 P7 P10 What are Natural Resource Charter precepts?
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Монгол »

Formal agreements between resource companies and subnational or local level stakeholders affected by company projects, or local level agreements (LLAs), are becoming an important mechanism for increasing benefits for local communities and minimizing or avoiding conflicts in many countries. The main objectives of this policy paper are to assess Mongolia’s experience with LLAs to date, identify gaps and opportunities, and recommend policy responses to improve existing regulation and agreement-making in practice.

Key policy recommendations

  • Prioritize mining projects and reduce the number of resource projects required to establish LLAs
    Implementation of the LLA requirement can be optimized by defining thresholds for resource development projects to establish LLAs.
  • Incentivize the establishment of LLAs
    Linkages back to the project approval process can be created to motivate mining companies to engage and establish agreements with “host” local governments and communities.
  • Clarify enforcement of the model agreement
    The model agreement needs to be revised and defined as a hybrid document consisting of a mandatory framework that defines the core elements of an LLA and a non-binding guidance document on potential agreement processes and content that local governments and mining companies can adjust to their needs and contexts.
  • Develop and implement capacity-building programs
    Comprehensive capacity-building programs on local level agreement-making need to be developed and implemented countrywide.
  • Support local civil society organizations to monitor implementation of LLAs
    The monitoring projects prove that independent third parties can play an important role in identifying gaps in implementation and opportunities for improvement of both individual LLAs and the overarching legal and policy frameworks for LLAs.

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  • Topics
    Beneficial ownership
    Civic space
    Commodity prices
    Contract transparency and monitoring
    Coronavirus
    Corruption
    Economic diversification
    Energy transition
    Gender
    Global initiatives
    Legislation and regulation
    Licensing and negotiation
    Mandatory payment disclosure
    Measurement of environmental and social impacts
    Measurement of governance
    Open data
    Revenue management
    Revenue sharing
    Sovereign wealth funds
    State-owned enterprises
    Subnational governance
    Tax policy and revenue collection
  • Approach
    • Stakeholders
    • Natural Resource Charter
    • Regional knowledge hubs
  • Priority
    Countries
    • Colombia
    • Dem. Rep. of Congo
    • Ghana
    • Guinea
    • Mexico
    • Mongolia
    • Nigeria
    • Peru
    • Senegal
    • Tanzania
    • Tunisia
    • Uganda
  • Learning
    • Training
    • Primers
  • Analysis & Tools
    • Publications
    • Tools
    • Economic models
  • About Us
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    • NRGI impact
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