What is an impact-benefit agreement (IBA)?

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An impact-benefit agreement is a negotiated contract between a project proponent and an Indigenous community that spells out the benefits the community will receive and the terms under which the project will operate. It addresses anticipated impacts—economic, social, environmental—and sets concrete commitments such as hiring Indigenous workers, opportunities for Indigenous businesses, training and capacity building, and sometimes revenue sharing or funding for community programs. The agreement provides a framework for ongoing collaboration, governance, and dispute resolution, helping ensure the project aligns with community priorities and gains local support. It goes beyond a simple memo of understanding or a payment deal between governments or third parties; it is a binding arrangement that formalizes how benefits are delivered and how the relationship between the project and the community is managed.