Government Briefing: Incorporating Free, Prior and Informed Consent (FPIC) into Investment Approval Processes

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Investment approval processes are the gateway through which governments set the agenda for their country’s investment environment. Yet too often these processes fail to incorporate meaningful requirements regarding participation in decision-making by Indigenous and other affected communities, increasing the risk of under-performing and conflict-ridden investments.

Enabling meaningful participation by rights holders and obtaining and maintaining their Free, Prior and Informed Consent (FPIC) throughout different investment approval processes can help governments to fulfill their legal obligations, mitigate financial and political risk, and, ultimately, attract more sustainable land-based investments.

Featuring concrete guidance and drawing on case studies from Kenya, Liberia, Mexico, Peru, the Philippines and Sierra Leone, this briefing explains how governments can incorporate FPIC and meaningful consultation into each stage of the investment, namely:

1. Creating an enabling environment and attracting the right investors
2. Registration of intent and screening
3. Community consultations and impact assessments
4. Permits, contract negotiation, and approval
5. Throughout the life of the project

For further information on incorporating FPIC into contract negotiations, see our working paper on Mechanisms for Consultation and Free, Prior and Informed Consent in the Negotiation of Investment Contracts.

Authors

KD

Kelly Dudine

Sam Szoke-Burke

Themes

• International Investment Law

Regions

• Central America, South America & Caribbean
• South and East Asia
• Sub-Saharan Africa

Tags

• Consultation & consent
• Human rights