CRITICAL ISSUE 16:

Capacity Development

The Issue

The importance of capacity development for all parties involved in negotiating and implementing a BA, as well as the various development initiatives associated with the agreement cannot be overemphasized. This is particularly relevant considering the increasingly remote areas in extractive projects can occur and the lack of capacity associated with these remote locations (Sarkar et al., 2010, 32).

As Brereton, Owen and Kim (2011) state, “if project developers have limited experience in forming agreements with communities, it may negatively impact on outcomes – particularly if the company approach the process as if to approach commercial negotiation. The same is the case if communities are disorganized, and/or lack the knowledge, experience and resources to engage constructively and on an equal footing with developers. Governments that do not understand the process can likewise jeopardize the outcomes through inappropriate or poorly managed institutes (18).

Similarly, the US Department of Energy (2017) observes that BAs require a powerful coalition to be built at the community level, extensive research needs to be carried out, and negotiations must occur. Consequently, research, communications, and legal navigation capacities are critical, and community groups (and First Nations) without these often find themselves at a serious disadvantage because they lack a strategic understanding of numerous hurdles, outright oppositional forces, and/or the financial structure of a proposed deal. Some groups have strong research capacities but, unfortunately, are hindered by poor organization. To maximize the probability of success, a coalition should include members with experience in the abovementioned areas or access to such skills via partnerships and/or consultants (US DOE, 2017, 10).

In the implementation phase of a BA, capacity issues can also relate to a broad range of substantive issues such as environmental impact assessment, gender equity, employment and skills training. When designing a capacity development program, it is recommended that it be demand driven, take a systems view, promote action-based learning and participation, consider the local and historical context of the area, be creative, and ensure community ownership, in accordance with recognized best practice (World Bank, 2008).

Abbreviations

AEM – Agnico Eagle Mines Limited

ASDF – Ahafo Sustainable Development Forum

AWBEN – Aboriginal Women’s Business Entrepreneurship Network

BA – Benefit Agreement BC British Columbia

BCFNDGI – BC First Nations Data Governance Initiative

BMZ German Federal Ministry for Economic Cooperation and Development

BNL – Barrick Niugini Limited

BSA – Benefit Sharing Agreement

CBA – Community Benefit Agreement

CDA – Community Development Agreement

CIRNAC – Crown-Indigenous Relations and Northern Affairs Canada

DIO – Designated Inuit Organizations

EIA – Environmental Impact Assessment

EMB – Environmental Management Board

EWB-MSV – Engineers Without Borders Canada - Mining Shared Value Initiative

FNFTA – First Nations Financial Transparency Act

FNLNGA – First Nations Liquefied Natural Gas Alliance

FNNBOA – First Nations National Building Officer’s Association

FPIC – Free, Prior and Informed Consent

GIZ – German Development Agency

HIA – Health Impact Assessment

IA – Impact Assessment

IBA – Impact Benefit Agreement

ICMM – International Council on Mining and Metals

IFC – International Finance Corporation

IFI – International Financial Institution

IIBA – Innuit Impact Benefit Agreement

INAC – Indigenous and Northern Affairs Canada

IOL – Inuit-Owned Lands

ISC – Indigenous Services Canada

KitIA – Kitikmeot Inuit Association

KivIA – Kivalliq Inuit Association

KLC – Kimberley Land Council

LIA – Labrador Innuit Association

LLG – Local Level Government

LNG – Liquefied Natural Gas

M&E – Monitoring and Evaluation

NADeF – Newmont Ahafo Development Foundation

NLC – Northern Land Council

NLCA – Nunavut Land Claims Agreement

NTI – Nunavut Tunngavik Incorporated

OSR – Own-Source Revenue

PJV – Porgera Joint Venture

PSAB – Procurement Strategy for Aboriginal Business

QIA – Qikiqtani Inuit Association

SEMC – Socio-Economic Monitoring Committee

SML – Special Mining Lease

TCS – Tax Credit Scheme

UNDRIP – United Nations Declaration on the Rights of Indigenous Peoples

Key Terms

Benefit Agreements

In this guide, the term Benefit Agreement (BA) is used as an umbrella term for agreements that vary in scope, scale, sector and types of parties to the agreement.

Depending on the emphasis, there are over 25 terms that are used to refer to the concept of benefit agreements (See Box 1). Within the literature the concept of benefit agreements (BAs) is varied and tends to be defined as a governance arrangement or as a mechanism for being a ‘good’ corporate citizen and securing a social licence to operate (Sarkar et al., 2010). Woodward & Co. and the Nanwakolas Council (2009) propose a definition that is more centred on the perspective of Indigenous Peoples:

Benefit agreements describe a written agreement that is the outcome of a consultation process about a proposed resource extraction, project or development that has the potential to impact the Aboriginal rights or interests of one or more Aboriginal groups in Canada.

Box 1: Benefit Agreements Lexicon

Accommodation Agreements

Benefits Sharing Agreements

Community Contracts

Community Development Agreements

Community Development Initiatives

Community Joint Venture Agreements

Cooperation Agreements

Development Agreements

Empowerment Agreements

Exploration Agreements

Impact Benefit Agreements

Indigenous Land Use Agreements

Interim Measures Agreements

Investment Agreements

Landowner Agreements

Market Access Agreements

Participation or Partnership Agreements

Project Support agreements

Shared Responsibilities Agreement

Social Responsibility Agreements

Social Trust Funds

Socio-economic Monitoring Agreements

Standard-setting or Certification Agreements

Indigenous

The term Indigenous is a broad term that captures First Nations, Métis and Inuit communities. It is often used now to replace Aboriginal, which is also a broad term that has been historically used to denote First Nations, Métis and Inuit, and is legally defined in section 35(2) of the Constitution Act, 1982 as follows: “In this Act, the ‘Aboriginal peoples of Canada’ includes the Indian, Inuit and Metis peoples of Canada”. The term “Indian” is a statutory term legally defined in the federal Indian Act.

For the purpose of this guide, the term Indigenous is used interchangeably with the term First Nation(s) and does not refer to Inuit or Métis. If the terms Aboriginal or Indian are used, they apply to specific policies, legislation or organizations, direct quotes from a study or publication, or the term used in a given country context.

Government /State

Reflecting language- in-use by Indigenous Peoples, the guide uses the words government and the state interchangeably. In other communities of practice and disciplines, the term “state” is understood as an organisation or political community with a defined territorial jurisdiction, with specific administrative, legislative and legal bureaucracies through which the state’s power is exercised, where as the “government ” is composed of individuals who control the state apparatus and employ the power of the state at a given time.

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