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

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Project Status: Closed
Project at-a-glance
Project Name Mineral resources for development
Project Number 2014.2143.7
Sector/Subsector Natural resources
Country Kyrgyz Republic
Project Opening Date 2015
Project Closing Date 2018
Responsible Institution
Responsible International Financial Institution German Federal Ministry for Economic Cooperation and Development (BMZ)
Responsible Executive Agencies
  • Ministry of Economy,
  • State Agency for Geology and Mineral Resources (Kyrgyzstan),
  • State Committee on Investment and State Property Management,
  • Ministry of Industry and New Technologies
Objectives
Strategic Agenda
  • Regional public-private dialogue
  • Development of a market-oriented legal framework
  • Enhanced conditions for investments in mining
  • Local development in mining areas of Kyrgyzstan
Description

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.

Source of Funding

German Federal Ministry for Economic Cooperation and Development (BMZ)

Amount of Funding

3 900 000  Euro

Project Outcome

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.

Contact Information of International Financial Institution
Organization/Department Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH
Name David Oberhuber
Address Erkindik Blvd 22, Bishkek
Postal Code 720040
Country Kyrgyz Republic
Phone +996 (312) 901 332
E-mail

david.oberhuber@giz.de

Website

www.giz.de

Contact Information of Project Implementer
Organization/Department The State Agency for Geology and Mineral Resources of the Kyrgyz Republic
Name Ryskulov Ulanbek Duulatovich
Address Erkindik Blvd 2, Bishkek
Postal Code 720040
Country Kyrgyz Republic
Phone +996 (312) 300 064 (307)
E-mail

geoagencykg@gmail.com

Website

www.geology.kg