PROMOTING TRANSPARENT EFFECTIVE AND ACCOUNTABLE GOVERNANCE (TEAG) “Reversing Resource Curse” - PowerPoint PPT Presentation

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PROMOTING TRANSPARENT EFFECTIVE AND ACCOUNTABLE GOVERNANCE (TEAG) “Reversing Resource Curse”

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  1. PROMOTING TRANSPARENT EFFECTIVE AND ACCOUNTABLE GOVERNANCE (TEAG) “Reversing Resource Curse” Overview of the Extractive Industry and Development in Ghana (Dr. Joe Amoako-Tuffour, Senior Advisor, ACET) Accra, Ghana August, 2013

  2. Presentation Outline • Background • Mineral Resource Areas • National Resource Contributions • Resource Policy Framework • Resource Legislative Framework • Institutional Governance • Governance Challenges AFRICAN CENTER FOR ECONOMIC TRANSFORMATION

  3. Background • Area – 238,535 km2 (92,099 sq mi) • Population -25,199,609 (July 2013 est.) • GDP – $83.74 billion (2012 est.), PPP • Extractive Industry Highlights • Mining • Long tradition in the country • 1st documentation on gold mining in 1493 ( Kesse, 1985) • 2nd largest producer of gold per annum, in Africa • 10th largest in the world (3% of world production) in 2012. • Major firms: AngloGold Ashanti, Newmont Ghana, Gold Fields Ghana, Chirano Goldmines and Golden Star • Others – Adamus (gold), Ghana Bauxite Co. Ghana Manganese, Small Scale Miners • Artisanal Miners and Diggers: (about 26% gold output, 100% diamond output) AFRICAN CENTER FOR ECONOMIC TRANSFORMATION

  4. Background • Petroleum • Offshore oil reserves in Ghana were discovered in the 1970s, but negligible quantities. • Commercial quantities of discovered in 2007 and reported to contain up to 3 billion barrels (480,000,000 m3). • First Oil was produced in December 2010 • Major oil & gas contractors include • TullowGhana, Kosmos Energy, ENI and Hess Ghana Limited. AFRICAN CENTER FOR ECONOMIC TRANSFORMATION

  5. Mineral Resource Areas AFRICAN CENTER FOR ECONOMIC TRANSFORMATION

  6. Petroleum Resource Areas AFRICAN CENTER FOR ECONOMIC TRANSFORMATION

  7. Mineral Policy and Legislative Framework • Policy initiatives • Key Legislation • PNDC Law 153 • the Income Tax Decree, 1975, • the Investment Code of 1981, • The Minerals and Mining Law of 1986, • Minerals and Mining Act of 2006  • Subsidiary legislation AFRICAN CENTER FOR ECONOMIC TRANSFORMATION

  8. Petroleum Policy & Legislative Framework • 3 Policy Episodes • 1982-1985 • Ghana National Petroleum Corporation Law, 1983 (PNDC Law 64) • Petroleum (Exploration and Production Bill), 1983 • 2001-2008 • National Petroleum Authority Act,2005 (act 691) • 2009 to present • Local Content and Local Participation Policy Framework 2011 • Petroleum Revenue Management Act, 2011 (Act 815) • Petroleum Commission Act, 2011 • Petroleum (Exploration and Production Bill 2013 AFRICAN CENTER FOR ECONOMIC TRANSFORMATION

  9. Institutional Governance AFRICAN CENTER FOR ECONOMIC TRANSFORMATION

  10. Mining: Governance Institutions • The Executive and Ministries it directly controls; • The Legislature; • “Autonomous” public institutions; • Traditional Authorities; • Private (Non-governmental) Organizations • The governance of the sector is largely limited to regulations and ensuring that the developmental benefits of mining are maximized, without active state participation.

  11. Governance Challenges Facing Resource Industry • Mining • Increasing galamseyoperations (artisanal mining) on company concessions • Influx of foreign nationals in SSM • Land compensation • Scope of Corporate Social Responsibility • Challenges with mineral revenue • assessment, collection, accountability, and • Savings • End use. • Obsolescence of fiscal regime • Mineral Policy –Which Way? AFRICAN CENTER FOR ECONOMIC TRANSFORMATION

  12. Governance Challenges Facing Resource Industry • Petroleum • Lack of clarity in petroleum policy direction • Inertia in the development of legislative framework • Both mining and petroleum- clear absence of transparency in licensing and contracting • Institutional mandate overlap • Monitoring revenue management and spending • Social environmental impact • Local content administrative challenges AFRICAN CENTER FOR ECONOMIC TRANSFORMATION

  13. THANK YOU