For successful negotiations, governments should address the following considerations, many of which align with the targeted support CONNEX can provide:
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Conduct Thorough Due Diligence
Understand the company with whom you are negotiating. Does it adhere to environmental and social standards and are these standards enforced? Does it have sufficient capital or access to financing for the project? How are its public commitments reflected at the negotiating table?
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Clarify Your Priorities
Is the main objective to create jobs, secure early revenues for domestic investments, or establish a strong legal and policy framework to maximize local content? Clear priorities drive better outcomes.
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Develop a Negotiation Strategy
Determine how the government will approach the company and structure its engagement to achieve its goals. Important questions include: What does a government need? What does it want to achieve? What can it do without?
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Assess Government Capacity
Identify strengths and gaps within the transaction team. For example, a team may have strong legal, environmental, and technical skills but lack financial modeling expertise. Knowing where support is needed ensures expert assistance is effectively targeted.
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Ensure Inter-Ministerial Coordination
While one ministry may lead negotiations, others – such as justice, environment, and finance – must be closely involved, along with relevant national, regional, and local authorities.
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Plan Ahead
Securing the right experts can take time; typically, two to three months. Begin early to ensure high-quality support is in place when negotiations start.
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Secure High-Level Ownership
Negotiation support should be integrated into the core government process with senior government backing. CONNEX experts bring extensive international experience across a wide range of jurisdictions. Leveraging this expertise can help governments secure the best possible deal for their countries and citizens.
