A GMoU is an agreement between SPDC and a group (or cluster) of several communities. Clusters are based on local government or clan/historical affinity lines as advised by the relevant state government.
The GMoU brings communities together with representatives of state and local governments, SPDC and non-profit organizations, such as development NGOs, in a decision-making committee called the Cluster Development Board (CDB).
Under the terms of the GMoUs, the communities decide the development they want while SPDC on behalf of its joint venture partners, provides secure funding for five years, ensuring that the communities have stable and reliable finances as they undertake the implementation of their community development plans.
The GMoUs or agreements represent an important shift in approach, placing emphasis on more transparent and accountable processes, regular communication with the grassroots, sustainability and conflict prevention.
By the end of 2010, SPDC had signed and implemented agreements with 24 clusters, covering 244 communities around its business operations. A total of 490 community projects had been successfully completed and $65 million in funding provided by SPDC.
