Concluding fair and stable investment contracts

Context

The extractive sector offers major opportunities for the economic and social development of resource-rich countries. However, the governments of these countries face challenges with regard to natural resources, infrastructure and renewable energy. The objective is to maximise the benefits for the state, safeguard the interests of the population and at the same time enable investment.

In recent years it has become increasingly evident that socially and ecologically responsible mining, energy and infrastructure projects are particularly attractive to investors. However, inadequate legislation and regulatory framework implementation inhibit the negotiation of investment contracts.

Countries often do not have the necessary capacities and resources to negotiate with investors on an equal footing. In many cases contracts are concluded that fail to realise the economic potential, cause financial disadvantages, have little development impact and show deficits in implementation.

Objective

Developing countries and emerging economies are able to conclude fair and stable investment contracts in the areas of mining, infrastructure and renewable energy, and increase the associated developmental benefits.

Approach

The project is already successfully supporting contract negotiations with the goal of sustainably improving institutional structures. It is now focusing increasingly on expanding its support measures by further developing its range of services to include the areas of infrastructure and renewable energy.

In response to requests from governments, the project provides experts from multiple disciplines who support local negotiation teams on a short-term basis in the negotiation of investment contracts. In this way, the project anchors procedures, structures and strategies for coordinated negotiations with a successful outcome in the respective governments.

Last update: July 2024