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A Community Development Agreement is a formal partnership between mining companies and local communities in the Philippines, required under the Mining Act. It outlines how mining operations will benefit nearby residents through social programs, infrastructure projects, and economic opportunities.

These agreements help ensure fair distribution of mining revenues and protect indigenous peoples' rights. Companies must commit at least 1.5% of their operating costs to community development programs, with specific targets for education, healthcare, livelihood support, and environmental protection. Local government units and community representatives actively participate in planning and monitoring these initiatives.

Mining companies need a Community Development Agreement before starting any operations in the Philippines. The law requires this agreement as part of the mining permit application process, specifically when planning activities that affect local communities or indigenous peoples' ancestral domains.

The timing is crucial - secure this agreement during the early planning stages, well before breaking ground. Companies typically start negotiations 6-12 months before planned operations, allowing enough time for community consultations, local government approvals, and integration with the Environmental Compliance Certificate requirements. This proactive approach helps avoid project delays and builds stronger community relationships.

• Basic Community Development Agreement: Focuses on essential social programs and infrastructure, with standard revenue-sharing formulas and monitoring mechanisms
• Indigenous Peoples CDA: Includes additional protections for ancestral domains, cultural preservation, and Free Prior Informed Consent requirements
• Large-Scale Mining CDA: Features comprehensive environmental safeguards, extensive community benefits, and detailed revenue allocation schemes
• Small-Scale Mining CDA: Simplified structure with focused community support programs and basic environmental commitments
• Joint Community CDA: Designed for multiple affected communities, with specific provisions for fair benefit distribution across barangays

• Mining Companies: Draft and fund the agreement, commit resources to community programs, and ensure compliance with development targets
• Local Communities: Participate in negotiations, identify development priorities, and monitor implementation through designated representatives
• Indigenous Peoples Groups: Exercise their rights under IPRA law, negotiate specific cultural protections, and validate agreements through traditional leaders
• Local Government Units: Review agreements, facilitate community consultations, and oversee implementation of development projects
• DENR-MGB Officials: Evaluate and approve agreements, monitor compliance, and mediate disputes between parties

• Community Profile: Gather demographic data, socio-economic indicators, and existing development needs of affected communities
• Project Details: Document mining operation scope, timeline, and expected environmental impacts
• Stakeholder List: Identify all affected barangays, indigenous peoples groups, and local government units
• Budget Planning: Calculate the 1.5% operating cost allocation and draft specific program budgets
• Development Programs: Define specific social, educational, and livelihood initiatives based on community consultations
• Monitoring Framework: Design clear metrics and reporting mechanisms for tracking program implementation

• Parties and Authority: Full legal names of mining company, affected communities, and authorized representatives
• Project Description: Detailed scope of mining operations and impact areas
• Development Programs: Specific social, educational, and infrastructure projects with timelines
• Financial Commitments: Clear breakdown of the 1.5% operating cost allocation and program budgets
• Implementation Plan: Roles, responsibilities, and timeline for program execution
• Monitoring Mechanism: Regular reporting requirements and performance indicators
• Dispute Resolution: Process for addressing conflicts and grievance procedures
• Term and Renewal: Duration of agreement and conditions for extension

A Community Development Agreement differs significantly from a Community Engagement Agreement, though they're often confused. While both involve local community interactions, their scope and legal requirements are quite distinct.

• Legal Basis: CDAs are mandatory under the Mining Act for resource extraction projects, while Community Engagement Agreements are voluntary tools for general business-community relations
• Financial Commitments: CDAs require specific allocation of 1.5% of operating costs; engagement agreements typically don't have mandatory funding requirements
• Regulatory Oversight: CDAs need DENR-MGB approval and monitoring; engagement agreements don't require government oversight
• Duration and Scope: CDAs last throughout mining operations with specific development targets; engagement agreements are usually shorter-term with flexible commitments
• Enforcement: CDAs are legally binding with strict compliance requirements; engagement agreements rely more on good faith and mutual understanding