The Commonwealth Secretariat has taken a significant step towards strengthening legal capacity and promoting fairer investment practices across its member countries by launching five new model contracts. These contracts are specifically designed to help governments, particularly those with limited legal resources, negotiate more transparent and equitable agreements in critical sectors such as infrastructure, energy, and natural resources.
These newly released contracts mark the first phase of a broader initiative, with a total of 20 model agreements expected to be rolled out throughout the year. They were developed in collaboration with a group of legal and policy experts from 19 Commonwealth countries, ensuring that the templates reflect the diverse legal landscapes and developmental needs of member states. The contracts provide a ready-made legal foundation to accelerate negotiations, reduce legal uncertainty, and safeguard national interests.
Targeting sectors that are often subject to complex and imbalanced negotiations, the contracts aim to simplify legal processes and promote sustainable development. Among the initial set of model contracts are a design and construction contract for medium-scale infrastructure projects, an energy concession agreement for private sector-managed mini-grid electricity services in underserved areas, and a license agreement for the exploration and production of onshore and offshore petroleum resources. These contracts address specific needs in investment-heavy sectors where governments are often at a disadvantage due to lack of expertise or negotiating power.
One of the key goals of the initiative is to embed principles of governance, resilience, and sustainability in investment agreements. By providing governments with reliable, pre-drafted legal templates, the Secretariat seeks to level the playing field and support stronger, more informed negotiation processes. These contracts are especially useful for law ministries and procurement agencies that may not have easy access to extensive legal expertise or external consultants.
The acting head of the Commonwealth Secretariat’s Law Development Section, Dr. Elizabeth Macharia, underscored the importance of the model contracts in reinforcing governance structures within Commonwealth nations. The Secretariat hopes that law ministers across the member states will utilize these templates to better protect their natural resources and public interests while enabling legal frameworks that foster long-term, equitable development outcomes.
The model contracts have been designed with practical implementation in mind. They incorporate international best practices and are tailored for real-world application, allowing governments to immediately integrate them into their procurement and legal systems. By reducing legal ambiguity and clarifying obligations for all parties involved, the contracts are expected to enhance transparency and accountability in investment projects, which are frequently marred by legal disputes and misaligned expectations.
These contracts are also a critical component of the broader mission undertaken by the Commonwealth Secretariat’s Rule of Law Section, which is actively working to support legal reforms in its member countries. The availability of standardized, high-quality legal documents allows governments to move away from ad hoc contract development, which can be time-consuming, inconsistent, and prone to legal loopholes.
These legal tools are expected to contribute positively to the investment climate in Commonwealth countries by ensuring that deals are fair, legally sound, and more attractive to responsible investors. In doing so, they promote mutual trust between public institutions and private investors, thereby encouraging economic growth that is both inclusive and sustainable.
As the rollout of the remaining 15 contracts continues over the year, the Secretariat aims to create a comprehensive suite of legal templates that can be adapted to the specific needs of different countries and sectors. These efforts reflect the Commonwealth’s ongoing commitment to enhancing legal infrastructure, promoting good governance, and fostering economic resilience across its member states.
