promoting transparent effective and accountable governance (teag) “reversing resource curse”
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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. Presentation Outline. Background Mineral Resource Areas - PowerPoint PPT PresentationTRANSCRIPT
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AFRICAN CENTER FOR ECONOMIC TRANSFORMATION
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, GhanaAugust, 2013
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Presentation Outline
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Background
Mineral Resource Areas
National Resource Contributions
Resource Policy Framework
Resource Legislative Framework
Institutional Governance
Governance Challenges
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Background
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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)
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Background
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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 • Tullow Ghana, Kosmos Energy, ENI and Hess Ghana
Limited.
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Mineral Resource Areas
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Petroleum Resource Areas
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Mineral Policy and Legislative Framework
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Policy initiatives
Key LegislationPNDC Law 153the Income Tax Decree, 1975, the Investment Code of 1981, The Minerals and Mining Law of 1986, Minerals and Mining Act of 2006 Subsidiary legislation
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Petroleum Policy & Legislative Framework
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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
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Institutional Governance
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GOVERNANCE INSTITUTIONS
ExecutivePetroleum Min of Energy
& Petroleum
Upstream & Midstream
Pet. Comm.GNPC
Energy Commission GNGC
DownstreamTOR, NPA, BOST. GCMC, GNGC
Mining
LegislaturePetroleum
Parliamentary Committee on Mines and
EnergyMining
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Mining: Governance Institutions
a. The Executive and Ministries it directly controls;b. The Legislature;c. “Autonomous” public institutions;d. Traditional Authorities; e. 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.
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Governance Challenges Facing Resource Industry
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MiningIncreasing galamsey operations (artisanal mining) on company
concessionsInflux of foreign nationals in SSMLand compensation Scope of Corporate Social ResponsibilityChallenges with mineral revenue
o assessment, collection, accountability, and o Savings o End use.
Obsolescence of fiscal regime Mineral Policy –Which Way?
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Governance Challenges Facing Resource Industry
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PetroleumLack of clarity in petroleum policy directionInertia in the development of legislative frameworkBoth mining and petroleum- clear absence of transparency in
licensing and contractingInstitutional mandate overlapMonitoring revenue management and spendingSocial environmental impactLocal content administrative challenges
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