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

25. Infrastructure

 

25.1 Existing infrastructure: The Company shall be entitled to access and use all existing public infrastructure on or adjacent to the Project Area (the Public Infrastructure), subject to:

(a) the payment of any access fees or commercial usage rates as provided for in the Applicable Law;

(b) any general conditions of use or restrictions imposed by any Applicable Permit;

(c) the existing rights of use and access of other users of the Public Infrastructure; and

(d) [insert any specific restrictions and conditions of use for the Public Infrastructure, for example, maximum weight on trucks on specific roads etc.];

25.2 Upgrades or improvements: Where upgrades or improvements may be required to the Public Infrastructure for the purposes of the timely and efficient implementation of the Project, the Company shall provide Notice in writing to the Grantor and the Authority detailing the nature of such upgrades or improvements. The Parties shall, [as soon as practicable]/[within [insert number] days from the date of the Notice], meet to discuss in good faith:

(a) the necessity and extent of such upgrades or improvements;

(b) the timeframe within which any such upgrades or improvements shall be carried out;

(c) the Party or Parties which shall bear the responsibility for carrying out such upgrades or improvements; and

(d) the Party or Parties which shall bear the responsibility for paying for such upgrades or improvements.

25.3 Rights regarding new infrastructure: The Company shall be entitled to construct and install infrastructure, buildings, machinery, residences, amenities, and other facilities within the Project Area for the use of the Company, its contractors, agents, and its Workers and Dependents (the New Infrastructure), subject to:

(a) the receipt of any Applicable Permit; and

(b) the terms of the Approved Business Plan.

25.4 [In constructing and installing New Infrastructure in accordance with this Section, preference shall be given to the use of locally procured construction materials, equipment, and products where available in sufficient quantities and of sufficient quality.]/[The Company shall use locally procured construction materials, equipment and products for the construction and installation of New Infrastructure in accordance with this Section, as set out in the schedule of locally available materials, equipment and products contained in Annex [X].]

25.5 The cost of such construction and installation shall be [borne by the Company]/[borne by the Authority]/[jointly borne by the Parties in such proportions and through such co-ownership structure as set out in Annex [X].]

25.6 Repairs to and maintenance of New Infrastructure shall be conducted by the [Company]/[Authority] at the expense of [the Company]/[the Authority]/[each Party whereby the Authority contributes [insert]% and the Company contributes [insert]%]. Such repairs and maintenance shall be conducted in a regular and timely fashion as is necessary to ensure the ongoing function and effective use of the New Infrastructure for the purposes of the Project.

25.7 The Company shall ensure that [sufficient numbers of] /[insert precise number] Citizens and Residents are adequately trained in all aspects of the operation, maintenance, and repair of any New Infrastructure. Such training shall be conducted by the Company at the expense of the [Company]/[Authority]/[jointly borne by the Parties whereby the Authority contributes [insert amount]% and the Company contributes [insert amount]%].

25.8 The Company shall ensure the rights of all [Legitimate Tenure Rights Holders]/[members of the Local Community]/[insert and define other user-specific groups, e.g., local smallholder farmers] to access and use any New Infrastructure, subject to:

(a) such reasonable restrictions as the Company may impose in the interest of the safety of its Workers and the security of its assets;

(b) such reasonable restrictions as the Company may impose to ensure that such access and use does not materially interfere with Project Operations;

(c) [the imposition of reasonable usage fees as approved by the Authority.]

25.9 For the duration of this Agreement, any New Infrastructure shall [remain the property of the Company]/[remain the property of the Authority]/[be jointly owned by the Parties through a co-ownership structure as set out in Annex [X]] after which time it shall be disposed of in accordance with Section 66.

25.10 The Authority reserves the right to construct infrastructure within the Project Area at any time. If the Authority intends to construct infrastructure within the Project Area, it shall first provide Notice to the Company and shall ensure that the installation, construction, and use of such infrastructure does not unreasonably or materially interfere with Project Operations or other rights or obligations of the Company.


For more information: See generally ISLP & CCSI, 2016, Section 2.7 (Infrastructure); UNIDROIT & IFAD, 2021, Chapter 4, Part B, Section 2 (Access to Facilities and Utilities).

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