Using the Natural Resource Charter

Part 1 – The Natural Resource Charter Part 2 – The Sierra Leone Extractive Sector Benchmarking Process Part 3 – Questions and Answers

A framework for thinking through the challenges in using resource wealth for sustainable development Governance 3 + Economic Management

Precept 1. Forming a strategy and building institutions Precept 2. Accountability and transparency Precept 7. Allocating the revenues Precept 8. Smoothing expenditure volatility Precept 11. The role of international companies Precept 12. The role of international governance actors Overarching issues of governance Precept 4. Taxation Precept 5. Local effects Precept 6. Nationally-owned resource companies Precept 3. Exploration and license allocation Discovering the resource Capturing the value Managing the revenue Precept 9. Public expenditure Precept 10. Public role in private investment Investing for development 4 Roles of other actors

 Natural Resource Governance requires countries to address a chain of complex governance and economic decisions in the right way This decision chain suffers from a ‘weakest link’ problem – inability of governments to capture revenues and use them effectively. It is therefore necessary to take a comprehensive approach to natural resource governance. 5

A governance tripod - each supports the others, while if any one of them is missing, bad governance ensues. Rules Critical Mass of Citizens Institutions GOOD GOVERNANCE

Multi-stakeholder tripod - each supports the others, while if any one of them is missing, the structure collapses. Government Companies Civil Society Constructive Engagement (Inclusiveness)

 A national performance management tool  Used by governments to carry out their own self-assessment  Uses a multi-stakeholder approach 8

1. Diagnosis and planning stage  Benchmarking process (Researchers)  Reporting Stage (Extractive Sector Expert Panel)  Action planning process (MMMR with other MDAs) 2. Implementation  Work to review and update key policy, legal and regulatory regimes of the extractives sector and align with Sub- regional and Regional regimes (ECOWAS Mining Directives and the AMV)  Technical support to policy and planning at the MMMR  Monitoring and Evaluation

What are the deliverables? - Precept Scores - Research Report - Action Plan - Monitoring and Evaluation Plan Benchmarking Action Planning 1. Diagnosis and Planning Phase

Legal, Policy and regulatory Review and Reform Institutional Capacity building Tripod Engagement: Public Sector – Private Sector - Civil Society

 Management regime reforms  Core Minerals Policy  Artisanal Mining Policy  Resettlement Policy  Resettlement Act  National Land Act etc.

Indicators  Management regime reforms (Cont.)  Revised laws and Regs. E.g. MMA 2009, NMA 2012, Mining, Environmental, Occupational Health and Social Regs. etc.  Improved Revenue Management Implementation of PFM Act 2016 Esp. Part VI – Management Of Extractive Industries Revenues Benchmarking Action Planning 1. Diagnosis and Planning Phase

Indicators  Improved Governance Regime  Inter-Ministerial ESM Committee for harmonisation of ESM regimes established  ESM Multi-Stakeholder Groups established at all levels – National, Provincial and District  Optimal Benefits  CDAs signed where applicable and CDF management structures established  CDPs aligned with LDPs  % of CDFs deployed to enhance quality Primary and Secondary education, Primary Health Care, Benchmarking Action Planning 1. Diagnosis and Planning Phase

1. Prioritization – can identify the weak links in the extractive industry. 2. Consensus building – within government, and between government, donors, civil society and extractive industry. 3. Action Planning – through road mapping activities And in the long term… 4. Building linkages - with technical support programs 5. Monitoring – through repeat scoring 15

 Improved decision making procedures for natural resource exploitation and utilization  Support the A4P “The parameters for green growth and the precepts of the natural resources charter will be used to benchmark the sector”  Review and Align legal, policy and regulatory regimes with the continental initiatives such as the African Mining Vision  Compliment SLEITI through improved transparency and accountability provisions in laws, policies and regulations  Strengthen mechanisms for the management of natural resource revenues to benefit all Sierra Leoneans E.g. Transformational Development Fund

Part 3 – Questions and Answers