World Bank Oil, Gas and Mining Work Africa African Development Bank RoundtableTunis October 4, 2006 Michael Levitsky Lead Economist Oil, Gas and Mining Policy Division The World Bank

Africa VPU President World Bank: Oil, Gas and Mining Structure OGM Policy Div. Peter Van der Veen Sustainable Development Dept. Sustainable Development VPU Kathy Sierra IFC Divs. Other Regions VPUs Other VPUs ` Country Dept. Abc, Defg, Hij IFC Oil, Gas, Mining & Chem. Dept. Rashad Kaldany ca. 25 staff EITI, GGFR, CASM This is a simplified organization chart and is not an official representaiton of the World Bank’s structure.

Africa: Key Issues in Oil, Gas and Mining General failure to transform resource wealth into sustainable development General failure to transform resource wealth into sustainable development The “Resource Curse”The “Resource Curse” Rapid growth in oil, gas and mining production and revenues Rapid growth in oil, gas and mining production and revenues Rising production, higher pricesRising production, higher prices New producing countriesNew producing countries General problem of Governance General problem of Governance With deeper systemic issuesWith deeper systemic issues Macro, institutions, capacity Macro, institutions, capacity

Africa: Growth in Oil, Gas and Mining Revenues 65% of all FDI during the 1990’s was concentrated in oil, gas and mining Between , $200 billion in oil revenue will accrue to African Governments; The 2004 oil windfall ranges from 9 percent of Government Revenues in Gabon to 56 percent in Equatorial Guinea (and average 21 percent);

WBG Oil, Gas and Mining Strategic Framework Response to Extractive Industries Review (2004): Response to Extractive Industries Review (2004): Governance and transparencyGovernance and transparency Benefits for poorBenefits for poor Mitigate Environmental & Social RisksMitigate Environmental & Social Risks Protecting communities, local peopleProtecting communities, local people Promote cleaner energyPromote cleaner energy Actions included: Actions included: IFC SafeguardsIFC Safeguards Increased Project transparencyIncreased Project transparency WB EI Consultative GroupWB EI Consultative Group

World Bank OGM Global Initiatives EITI (led by UK DFID) EITI (led by UK DFID) WB Multi-Donor Trust Fund (ca. $8.0m)WB Multi-Donor Trust Fund (ca. $8.0m) UK, Norway, Germany, Netherlands, France UK, Norway, Germany, Netherlands, France WB works in: Cameroon, Congo R., DRC, Ghana, Guinea, Mauritania, Niger, Nigeria, Sao Tome P., Sierra Leone,WB works in: Cameroon, Congo R., DRC, Ghana, Guinea, Mauritania, Niger, Nigeria, Sao Tome P., Sierra Leone, Global Gas Flaring Reduction Partnership (GGFR) Global Gas Flaring Reduction Partnership (GGFR) Works in Algeria, Cameroon, Nigeria etc.Works in Algeria, Cameroon, Nigeria etc. Global Conference Dec. 2006, ParisGlobal Conference Dec. 2006, Paris Communities and Small Scale Mining (CASM) Communities and Small Scale Mining (CASM) Works in several African countriesWorks in several African countries Global Conference Nov. 2006, MadagascarGlobal Conference Nov. 2006, Madagascar Communities and Development (ComDev) Communities and Development (ComDev) IFC sponsored, works with WB.IFC sponsored, works with WB.

World Bank OGM Governance Programs Extractive Industries Governance Framework Extractive Industries Governance Framework Analysis of macro and sector governance issuesAnalysis of macro and sector governance issues Framework for systematic diagnosisFramework for systematic diagnosis Pilot countries (inc. Tanzania, Mauritania)Pilot countries (inc. Tanzania, Mauritania) Oil for Development (with Norway) Oil for Development (with Norway) Mining: Inter-Governmental Mining Forum Mining: Inter-Governmental Mining Forum

World Bank OGM AAA Work and Projects Analytical Advisory Assessment (AAA) Analytical Advisory Assessment (AAA) With Country TeamsWith Country Teams Sector (e.g. Congo Rep. Oil Sector Review, DRC Mining Sector Study) Sector (e.g. Congo Rep. Oil Sector Review, DRC Mining Sector Study) Multi-sector (e.g. Country Economic Memorandum) Multi-sector (e.g. Country Economic Memorandum) Special own studies Special own studies Nigeria LPG (ESMAP) Nigeria LPG (ESMAP) Chad Petroleum Pricing (ESMAP) Chad Petroleum Pricing (ESMAP)

World Bank OGM Projects Mining and Petroleum Mining and Petroleum More Mining projects that Petroleum:More Mining projects that Petroleum: Sector less mature, needs legal and institutional framework Sector less mature, needs legal and institutional framework Financial burden on state potentially larger Financial burden on state potentially larger Fewer state companies preventing reform Fewer state companies preventing reform “Typical” Mining Project may include: “Typical” Mining Project may include: Legal, Regulatory FrameworkLegal, Regulatory Framework Institutional Reform and DevelopmentInstitutional Reform and Development Cadastre, Geological data developmentCadastre, Geological data development Capacity buildingCapacity building Some oil TA: Some oil TA: Institutional StrengtheningInstitutional Strengthening Capacity buildingCapacity building

World Bank OGM Projects Mining Projects: Mining Projects: Nigeria (FY05)Nigeria (FY05) Guinea (ca. FY08)Guinea (ca. FY08) Mozambique (FY01)Mozambique (FY01) Tanzania (FY08)Tanzania (FY08) Uganda (FY04)Uganda (FY04) Sierra Leone (FY08)Sierra Leone (FY08) Madagascar (FY03)Madagascar (FY03) Mauritania (FY04)Mauritania (FY04) Oil & Gas Projects: Oil & Gas Projects: Mauritania (FY05)Mauritania (FY05) Sao Tome Principe (FY04)Sao Tome Principe (FY04) MozambiqueMozambique

Thank You Michael Levitsky Lead Energy Economist Oil, Gas & Mining Policy Division The World Bank +1 (202)