This section highlights the
role contracts may play in the USIJI process and calls attention to general issues that
prospective proposers should think about when drawing up contracts. IJI projects may
require various types of routine contracts among participating entities, including
contracts for the purchase of services and equipment, but some aspects of the IJI
contracting process are unique and will require legal documents reflecting these special
considerations. Distinctive features of IJI projects include the long-term nature of the
contracts, the assignment of greenhouse gas reduction or sequestration benefits, project
monitoring and verification provisions, and risk management. Where appropriate, this
section will draw on the experiences of past IJI applicants to provide insight into how
one might deal with these complex issues. However, each project is different and will have
different contracting needs. The material presented in this chapter is not intended to
substitute for professional legal advice. Rather, its purpose is to describe some of the
major issues that may apply to a given contracting situation. By alerting potential
applicants to some unique features of the IJI process, the section can assist proposers in
developing highly effective, implementable IJI proposals which are backed up by credible
legal documentation.
Contracts may play a role in the IJI process to protect interests of both parties and to
ensure successful implementation of the IJI project. By clarifying the expectations and
responsibilities of each party, contracts help increase the likelihood of project success.
The presence of legally binding documentation can also help legitimize the project to
third parties, e.g., project reviewers and the USIJI Secretariat. The establishment of
contracts indicates a significant investment of time, money, and intellectual resources in
planning a joint implementation project; as such they demonstrate parties' commitment to
the long-term success of a proposed project.Contents:
General Issues Regarding
Contracts in the USIJI Process
Specific Issues to Negotiate in
a IJI Contract
Other Considerations: Logistics of
Contract Development
Conclusion |
[Copyright © 1998....]
