EXTRACTIVE INDUSTRIES: LEGAL AND FISCAL REGIMES, REVENUE MANAGEMENT AND GOOD GOVERNANCE Training Wor

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EXTRACTIVE INDUSTRIES LEGAL AND FISCAL REGIMES,
REVENUE MANAGEMENT AND GOOD GOVERNANCETraining
WorkshopMay 16, 2007

• Overview of
• Extractive Industries Governance
• Michael Levitsky (COCPO)

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EI Training Workshop

• Why are we here?
• What is special about EI?
• A few thoughts on governance
• And overview of agenda
• Special topic
• Advertising break

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Governance of EI

• Governance of EI is important, but so is
  governance of all major economic sectors.
• What is special about EI?
• Exhaustible resources
• Belong to all citizens
• Large revenues
• Large investments
• Long term projects
• Volatility of prices and revenues
• Uncertainty in project outcomes
• Environmental and safety risks

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Five Universal Principles of Good Governance
Source Good Governance of the National Petroleum
Sector, Chatham House, Apr 2007 http//www.chatham
house.org.uk/pdf/research/sdp/ggdoc0407.pdf
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A Generic Demarcation of Functions Between
Principal Actors in the Petroleum Sector
Source Good Governance of the National Petroleum
Sector, Chatham House, Apr 2007
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Governance as an Emergent Phenomenon
Governance
Not simple
Hard to quantify
Legal-Fiscal Framework
Revenue Management
Institutional Framework
Transparency
Communities
Environment
In Agenda
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Governance is a Process
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Good Governance is a result of getting all the
individual components to work and connect it is
not simple, easy or quick. Chatham House has 40
Petroleum Governance Benchmarks
Legal-Fiscal Framework
Revenue Management
Institutional Framework
Transparency
Communities
Environment
Legal-Fiscal Framework
Revenue Management
Institutional Framework
Transparency
Communities
Environment
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Commercial Break
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Petroleum Governance InitiativeBackground

• In context of Norwegian Oil for Development
  Initiative
• Enhance cooperation between the World Bank and
  Norway
• Address issues additional to Norways programs
• Coordinate work across World Bank range of skills
• Broaden scope of country interventions
• US6 million over two years

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PGI Three Pillars
P.G.I.
Sector Governance
Environment
Community Development
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PGI Strategy

• Practical
• Focused
• Sustainable
• Innovative

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PGI Governance PillarGoals

• Develop and disseminate best practice in
  Petroleum Sector Governance
• Combine World Banks sector (COC) and broader
  economic skills (PREM/DEC)
• Integrate Norwegian experience of oil and gas
  sector management
• Provide comprehensive WB assistance to several
  countries, complementary to Norway
• Activities Seminars, publications, technical
  assistance

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PGI Governance PillarProposed Activities

• Oil and Gas Governance Sourcebook
• Book covering all aspects
• Written by specialists, discussed at seminars
• Actionable Indicators for Oil and Gas and
  Economic Development
• Designed to provide benchmarking tool for
  countries with oil and gas resources
• Resource Curse diagnostic and prevention tool
• Thematic Group on Extractive Industries and
  Economic Development
• Based on WB Thematic Group concept
• Bring together sector specialists, economists,
  others
• Country Activities

Please join !
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Thank You!
Enjoy the Show