Several companies have adopted policies and standards aimed explicitly at increasing 'local procurement', recognising that local economic participation has benefits for companies and communities alike. From a corporate perspective, local economic participation is seen as one means of maintaining a social license to operate, as well as ensuring reliability of supply by having a supplier located nearby. From a community perspective, the participation of local businesses in the resource project is a means by which the benefits of resource development can flow into their communities. This paper is based on the research undertaken to produce a good practice guide for the mining, oil and gas sector. Our research revealed that the extent to which the local community will actually benefit from local procurement initiatives is dependent on the capacity of the community to supply goods and services to the project and, even more importantly, on its ability to adapt to the inevitable changes that accompany large-scale resource development. We provide guidance on adapting impact assessment tools to guide planning of procurement interventions.
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