Sector-Wide Analyses

A host government also needs to ensure that it has sufficient information on the sector and resources in respect of which it is seeking to attract investment. The availability of reliable and up-to-date information will improve the prospects of a successful and equitable outcome of a tender process or a contract negotiation.

Depending on the type of the investment, such information could include:

  • Geological information regarding the location, estimated quantity and quality of mineral resources;
  • Hydrological information regarding water sources and availability, seasonal fluctuations, and current users of water; or
  • Information regarding the suitability and availability of land for a particular use.

​In relation to extractive industry investments, for example, governments require geological information about the location and estimated quality and quantity of reserves as well as the technical expertise to understand and interpret such information.

An understanding of the infrastructure needs of the investor is also important so that the scope for shared use or third party access to such infrastructure can be assessed. Importantly, the status of land that will be made available for the investment project needs to be ascertained.

Where land rights have not been formalized, informal land uses need to be assessed and taken into account so that adequate in-kind and financial compensation can be made available to land users so as to minimize the prospects of social and community conflict. See the Voluntary Guidelines on the Responsible Governance of Tenure of Land, Fisheries and Forests in the Context of National Food Security for guidance on how to improve the governance of tenure.

At this time, the government should also assess whether it has the requisite skills and in-house expertise and experience in relation to the type of sector investment. If not, it should seek to acquire such expertise in-house or request assistance from support providers or donors to ensure it has access to the requisite skills or expertise in such areas. This will ensure that, when investment opportunities arise, the government is well placed to negotiate, monitor and implement the investment.

Key Tools At This Stage

Legal and Regulatory Issues Concerning Public-Private Partnerships

Pre-Negotiation Stage: Feasibility Studies