CONNEX: advice for partner countries

“Here’s a problem, let’s fix it together!” says Santiago Perez Ospina, Director of Mining in the Antioquia administrative district of Colombia. His motto helps him with a challenging task. His region is rich in natural resources, and there are gold and copper mines here. These metals are in high demand, but mining for them has wide-ranging consequences for local people and the environment.  

Negotiating as equals 

This is why the regional government of Antioquia turned to CONNEX for help. The G7 initiative is administered by GIZ, Germany’s international development cooperation agency. It works like a consultancy which supports developing and emerging countries as they negotiate licencing agreements with multinational businesses, particularly in the raw materials sector. CONNEX provides multidisciplinary teams to advise governments on technical, financial, legal, environmental and social questions. The aim is to put governments in a stronger negotiating position. The support is necessary as not all states and regions have the necessary resources or expertise to negotiate on an equal basis. But it’s not just about thrashing out better contracts in the short term. The long term goal is to improve countries’ skills so they can negotiate fair contracts independently. In some cases, there’s the fundamental question of whether the project is actually worth it in the first place. 

Everyone benefits from fair contracts 

It is common for contracts between businesses and emerging and developing countries to disadvantage those countries’ governments. Economic potential is not fully exploited, there is no support for a country’s development, and sustainability is only a minor consideration. By contrast, where investment agreements are negotiated fairly and well, they create value for the country and its citizens. CONNEX has already advised 23 partner governments. 

In Colombia, Santiago Perez Ospina and his colleagues were tasked with evaluating a licence for a copper and gold mine, particularly with regard to water management and the use of renewable energy. After CONNEX gave their input, a 25-year contract was signed which includes requirements to use sustainable water and energy. This is all too rare in the water and energy-intensive mining industry. 

Find out more at GIZ akzente: https://akzente.giz.de/en/connex-getting-better-deal