Investment contracts are agreements between an investor and a host state that set the terms of an investment project. Examples include concessions for agricultural or extractive industry projects. Together with applicable national and international law, these contracts define the way risks, costs and benefits are distributed. Who can participate in contract development greatly influences the extent to which third parties can have their voices heard. So getting the contracts right is a key part of maximising the investment’s contribution to sustainable development. This goes beyond concerns about public revenues, to include transparency and public participation in the contracting process, and proper integration of social and environmental considerations throughout the contract.
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