May 18, 2018

Cerrejón receives approval from the Land Renovation Agency for high-impact projects

In 2016, Act 1819 was part of a tax reform approved in Colombia providing, amongst other incentives, the possibility of engineering works for taxes. Since then, Cerrejón has been working with the High Council for the Post-Conflict, the Land Renovation Agency (ART, its initials in Spanish), and the Ministry of Finance to promote the inclusion of extractive companies in this tax incentive as they were not then being considered.

These efforts materialized in Act 168 of May 2018, wherein the ART approved Cerrejón’s request to use revenue taxes for the project “Expansion of the Production Capacity of the Drinking Water Treatment Plant of the Aqueduct System of the District of Riohacha”. This will mean improved continuity in water supply in the capital of La Guajira.

“We are still in the learning stage of this process, and this first project will teach us the path to follow. We need to start providing occasions for discussion on this topic and review current opportunities and restrictions in order to have a win-win relationship where public, private, and social actors get the best use from this mechanism and guarantees are provided so that companies continue working in the regions,” affirmed Raúl Roys, head of Cerrejón’s Division of Institutional Affairs and Communities.

Cerrejón will continue working with the municipal administrations and the department’s regional government to include all Guajiran communities in this mechanism since, at the moment, only the nine municipalities classed as Zones Most Impacted by the Armed Conflict (ZOMAC, its acronym in Spanish) can benefit from it. Furthermore, we will work to develop partnerships with other companies, increase the amount available for investment and, of course, jointly build a shared vision for development and project definition that will lead to their materialization in the region.

For Cerrejón, this mechanism is an opportunity to promote public-private partnerships in order to make a tangible, positive transformation in the region.