The Commonwealth Secretariat has launched five new model contracts intended to help governments negotiate fairer and more transparent investment contracts.
Focusing on key sectors, such as infrastructure, energy, and natural resources, the contracts offer governments a ready-made legal foundation to speed up negotiations, safeguard their interests and secure better outcomes for sustainable development.
They are the first of 20 contracts set to be rolled out this year and were drafted with support from an expert group representing 19 Commonwealth countries.
Dr Elizabeth Macharia, acting Head of the Secretariat’s Law Development Section, highlighted the importance of the initiative in embedding governance and resilience across the Commonwealth.
She said:
“I hope that Commonwealth Law Ministers, especially those working with limited resources, will be able to utilise these model contracts to protect their natural resources, strengthen their negotiating positions and enable equitable and sustainable development.”
Negotiating fairer deals
The templates are designed to reduce legal ambiguity and improve transparency in investment negotiations, particularly in industries often marked by imbalance and complexity.
The initial series of contracts include:
- Design and construct medium works contract for infrastructure projects valued between US$200,000 and US$5 million
- Energy concession agreement for mini-grid facilities for the provision of electricity services in underserved areas by the private sector
- Exploration and production of onshore and offshore petroleum licenses
The contracts are part of a large-scale effort to improve legal frameworks that encourage investment and safeguard economies, communities and people.
They reflect best practice and are designed for real-world application, providing immediate utility to law ministries, procurement authorities and negotiators.
The contracts are part of a broader effort by the Commonwealth Secretariat’s Rule of Law Section to support legal reform in member governments.
