Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH – Mineral resources for development

• Regional public-private dialogue
• Development of a market-oriented legal framework
• Enhanced conditions for investments in mining
• Local development in mining areas of Kyrgyzstan

Extractive industries play an important role in the economic development of Kazakhstan, Kyrgyzstan and Tajikistan. These countries depend on foreign investors to be able to exploit the full potential of this sector, yet a number of challenges hinder their efforts to attract such investment. These include inconsistencies between laws, legal uncertainty, a lack of transparency in bureaucratic procedures, fragmented responsibilities and a lack of qualified specialists. The state actors lack the planning, strategy and negotiation skills they need in order to influence conditions in the mining sector so as to attract investment and drive development forward. Local people in the mining areas do not fully understand the process or dynamics of mineral resources extraction, and they are not regularly involved in the decision-making processes for investments.

German Federal Ministry for Economic Cooperation and Development (BMZ)

3 900 000  Euro

Specialists and managers from the state bodies responsible for the mining sector now understand better how they can achieve inclusive and sustainable economic development by using government revenues from the extractive sector. State actors are also more aware of the need for structural changes, and they have increased the skills they need to conduct contract negotiations with international raw materials companies.

The Ministry of Economy and the State Geology Agency in Kyrgyzstan have recognised the need for legal and organisational reforms. The Model Mine Development Agreement (MMDA) is used as a tool for guiding future contract negotiations and for drafting mining legislation.

david.oberhuber@giz.de

www.giz.de

geoagencykg@gmail.com

www.geology.kg