Download Mineral Resources for Development Regional Programme

Implemented by:
Mineral Resources for Development
Regional Programme
Context
The Central Asian countries of Kazakhstan, Kyrgyzstan and Tajikistan have considerable mineral resources at their disposal.
Nevertheless, the potential to use these deposits as an engine for
economic growth and sustainable development has not been yet
fully exploited. Despite their wealth in resources, these countries
still experience poverty, corruption, and sub-optimal growth. The
relatively high proportion of resource revenues in the gross domestic product has both positive and negative effects. On one
hand, the potential mineral resources pose an array of investment, trade and employment generation opportunities. International companies show interest in both procuring selected mineral resources from the countries of Central Asia and investing in
the fields of exploration, extraction and processing. The active
engagement of multinational and regional mining companies
create spill-over effects in the fields of research and development, technological development as well as induced employment
among local suppliers etc.
However, the mineral resources sector in the region is still characterised by a modernisation backlog and the prevailing framework conditions are neither particularly investor-friendly nor
protective. The noncompliance of geological data with the internationally recognised standards, the low capacity of the mining
and geological service providers as well as a lack of skilled local
technicians and managers are further hindrances to new foreign
investments. Furthermore, attraction of investment is not an end
to itself; the optimal allocation and re-investment of the revenues
accruing from the mining activities must be used to mitigate
these countries’ resource-dependency.
Project name
Mineral Resources for Development (MRD)
Commisioned
by
Bundesministerium für wirtschaftliche Zusammenarbeit und Entwicklung (BMZ)
Main Partners
Ministry of Economy, State Agency on Geology
and Mineral Resources (KG), State Comittee on
Investment and State Property Management,
Ministry of Industry and New Technologies (TJ),
Ministry of Economic Development and Trade,
Ministry of Industry and New Technologies (KZ)
Project region
Kazakhstan, Kyrgyzstan, Tajikistan
Duration
April 2012 – April 2015
Our approach
The Deutsche Gesellschaft für Internationale Zusammenarbeit
(GIZ) GmbH, the Federal Institute for Geosciences and Natural
Resources (BGR) and the Committee on Eastern European Economic Relations (OA) work in cooperation towards the alleviation
of the aforementioned obstacles and thus, within the framework
of the MRD Programme, support the emergence of a modern
mining sector as a driver of sustainable development in the region. At the regional level, a steering structure ensures the alignment of the measures to be implemented with the specific needs
of the partner countries.
The Programme follows a multi-facetted approach comprising
four main fields of intervention:
Executive Training for Middle-Management of
the Government of the Kyrgyz Republic on “Legal
Frameworks and Contract Negotiations for Developing the Mineral Resources Sector”
Field trip to a mine in Brandenburg, Public Private Dialogue in Germany
Photos: 1. Maksim Shubovich
2. Raushan Abdykhalikova
1. The Regional Public-Private Dialogue Platform: The OA, on
behalf of GIZ, implements a series of regional dialogues in order
to communicate expectations and to build mutual trust between
German mining sector companies and the partner countries. The
government officials, local and German mining sector companies,
trade associations as well as the representatives of civil society
discuss sector-related topics, which are essential for the modernization of the mineral resources sector in the region and elaborate
recommendations for their improvement. The expectations of
foreign investors, environmental and social standards, and good
governance and conflict prevention mechanisms are some of the
topics which are being discussed through the course of the Programme.
2. National and Local Conditions for Promoting Investment and
Technology: managed by GIZ. The measures within this component are mainly based on the outcomes of the dialogues and aim
at improving the national and local conditions for promoting
investment and technology. In particular, the component supports local governments such as that of East Kazakhstan which is
named as pilot region. The component aims to formulate and
implement strategies and policies for sustainable economic development.
3. Qualification Measures for the Mineral Sector: managed by
GIZ. The third component aims at improving the qualification of
local people working for the mineral resources sector. Based on
the results of a qualification needs assessment for selected stakeholder groups and occupations, the component identifies national
priorities and activities which support the development of demand-driven training courses. This component also advises the
Kazakh government on introducing a technical vocational education and training (TVET) system in Kazakhstan in line with the
German dual education system (the so-called “MerkelNazarbayev-Initiative”).
4. Technical Assistance to the Department for Geology, Tajikistan:
managed and implemented by BGR. The fourth component improves the service orientation of public authorities in the mining
sector in Tajikistan. It aims to strengthen the ability of these
authorities to operate as modern service providers for the mining
industry. Various technical trainings are offered for the Department for Geology and other institutions, like supervisory and
environmental agencies, research establishments and specialised
government departments.BGR is providing capacity building in
mining economics and the assessment of mining projects. It also
envisages the preparation of factsheets for mineral deposits
based on information that will be gathered from archieve data in
combination with additional field work.
Published by
Deutsche Gesellschaft für
Internationale Zusammenarbeit (GIZ) GmbH
Mineral Resources for Development Programme
Jonathon Hornbrook, Programme Manager
Erkindik 22, 720040 Bishkek, Kyrgyzstan
T: +996 312 901332
M: +996 772 555871
E: [email protected]
www.giz.de
Author
Torge Hamkens
Layout
Guzal Abdirazakova
Printed by
As at
April 2014
GIZ is responsible for the content of this publication
Results to date
MRD Programme has established good relationships and signed
Memoranda of Understanding with its main partners in Kyrgyzstan, Kazakhstan and Tajikistan. Within the MRD Programme
reports were written on Baseline and Qualification Needs Assessment for the mining sector in all three partner countries.
Similarly, empirical analysis of the legal framework, licencing
procedures and the inspection system for the mining sector were
prepared and made available to the partners.
One of the top priorities of MRD Programme has been capacity
building for our main partners. Several round tables and workshops were organized on different topics, including the topics:
“Improving mining sector development in the regions” in Kyrgyzstan; “Regulatory Impacts Analysis of normative-legal acts”
and “Management of environmental and social standards” in
Tajikistan; "Attracting foreign investments: exchange of experience" with “Invest in Saxony" in Kazakhstan. Also, upon request
of our partners we implemented an executive training for the
middle-management of the Kyrgyz government on “Legal
Frameworks and Contract Negotiations for Developing the Mineral Resources Sector” in collaboration with the Vale Columbia
Center.
Two regional public-private dialogues were held on "Investment
Preconditions and Expectations of International Mining Companies in Central Asia" in Astana, Kazakhstan, and on "Management
of Environmental and Social Standards" in Berlin, Germany. In
addition to that, the MRD programme has organized a study tour
to Germany, which particularly focused on the training framework for mineral resources sector and exchange of ideas with the
German Stakeholders in the field of education, capacity building
and structural change.
Additionally, in Kyrgyzstan the MRD Programme has launched
the pilot site in Maidan village, Batken Province. The programme
established itself as a mediator working with the local and national government and pursuing legal peaceful compromise between local community and the mining company.
Finally, the programme has built a good network with mining
companies and has held Corporate Social Responsibility meetings
with managers to discuss mining issues and sustainable development in a global context.
On behalf
Federal Ministry for Economic Cooperation and Development (BMZ)
Division
401 East Asia, Central Asia
Addresses of the
BMZ offices
BMZ Bonn
Dahlmannstraße 4
53113 Bonn, Germany
T + 49 22899 535-0
F + 49 22899 535 – 3500
[email protected]
www.bmz.de
BMZ Berlin
Stresemannstraße 94
10963 Berlin, Germany
T + 49 30 18 535- 0
F + 49 30 18 535 – 2501