Kyrgystan and Centerra Clinch Pre-Election Deal
Kyrgyzstan and its largest foreign commercial investor, Centerra Gold, claim to have buried more than half a decade of uncertainty with a deal the government signed right in time for the October 15 presidential election.
On September 11, the government headed by new Prime Minister Sapar Isakov put the ink on a deal increasing Centerra’s annual environmental contributions tenfold in exchange for the government dropping a $100 million lawsuit in the local courts.
According to an upbeat but typically legalese-heavy statement from Centerra the same day, the new deal provides for “full and final reciprocal releases and resolution of all existing arbitral and environmental claims, disputes, proceedings and court orders.”
Under the new deal, Centerra will make a one-off payment of $50 million into a government-administered environmental development fund and up its annual environmental payments from $310,000 to almost $3 million. Moreover, the company has agreed to provide $10 million to upgrade the country’s main cancer treatment hospital.
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