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Article

1 Sep 2006

Author:
International Alert

[PDF] Conflict-Sensitive Project Finance: Better Lending Practice in Conflict-Prone States

Violent conflict presents a serious challenge for businesses operating abroad. A large body of evidence shows that investments in conflict-prone countries, and the interaction with the dynamics of violent conflict at local and national levels that frequently follows, often lead to operational, reputational and even legal costs…no project located in a conflict-prone area will be neutral in terms of its own impact on conflict. The interaction between a company investment and conflict is best understood as a two-way process: just as a project may be adversely affected by violent conflict at local or national levels, the project itself will have an impact on the conflict context within which it is located. [refers to Galmis Gold (part of GoldCorp),Montana Exploradora (part of Gloldcorp), Rio Tinto, Barclays, Morgan Stanley, Sonangol, UBS, Glencore, BNP Paribas, AXA, Dexia, Fortis, ING, KBC, HSBC, ABN Amro Bank]