Red Flag Memo Bao Chico Agreement For Liberian Caucus on Tax

The Columbia Center on Sustainable Investment (CCSI) and the International Institute for Environment and Development (IIED) have been requested by Liberia's Bi-Partisan Legislative Caucus on Illicit Financial Flow and Tax to provide a brief memo on the Bao-Chico Concession Agreement, which is expected to be ratified by the National Legislature of Liberia. The purpose of the memo is to offer a high-level analysis, highlighting issues that might warrant the Caucus’s closer inspection, from a public policy and sustainable development perspective. It does not constitute legal advice. The memo was prepared in response to a time-sensitive request from the Caucus: it is thus not meant to be comprehensive, and the contract may contain other issues deserving attention beyond those included in the memo. In addition, the memo does not include a review of the laws and regulations that would apply to the project and does not analyze the economic equilibrium of the deal, as no fiscal model has been developed to support the analysis. As policy research institutes, CCSI and IIED do not deliver legal advice; based on our suggestions and after further reflection, the Caucus might consider procuring legal advice to navigate issues such as those highlighted in the memo.

A. General provisions

B. Fiscal

C. Local content

D. Environmental and social considerations

E. Water

F. Compensation and resettlement

G. Benefit sharing

H. Community consultation

I. Climate resilience

J. Dispute resolution

K. Security