Fiscal Management of Mining and Petroleum in West Africa
February 27 - March 1, 2018
Accra, Ghana
Accra, Ghana
February 27, 2018 - March 1, 2018
The conference brings together government officials from selected countries in West Africa with current or prospective mining and petroleum activities. The topic is how to improve fiscal management of mining and petroleum, integrating fiscal regime design, revenue administration, and macro-fiscal policy. The novelty of the conference is that it will emphasize how these policy areas are interlinked—weaknesses in one area will undermine progress in others—and need to be addressed in a consistent and comprehensive manner.
West Africa has been negatively impacted by the decline in commodity prices in recent years. For countries with petroleum or mining extraction, fiscal pressures have increased as revenues have declined; in countries with exploration, investors have become more cautious, scaling back planned activities in some places.
The main areas for fiscal management of natural resources are: (i) design and evaluation of fiscal regimes for EIs; (ii) fiscal regime implementation and revenue administration; and (iii) public financial management of the resulting revenue flow, including the design of macro-fiscal frameworks and integration of revenue flows into the budget framework.
This conference, co-hosted by the Government of Ghana, is organized by the African and Fiscal Affairs Departments and financed by the IMF’s externally-funded Managing Natural Resource Wealth Topical Fund.
TUESDAY, FEBRUARY 27, 2018 |
|
| 8:00-9:00 am |
Registration |
| 9:00-9:05 am |
Opening remarks Ms. Natalia Koliadina, IMF Resident Representative in Ghana, IMF |
| 9:10-9:20 am |
Ms. Carla Grasso, Deputy Managing Director and Chief Administrative Officer, IMF |
| 9:20-9:45 am |
Keynote Address: Fiscal Management of Mining and Petroleum in West Africa Hon. Dr. Mahamudu Bawumia, Vice President of the Republic of Ghana Keynote Speech: English |
|
9:45-10:00 am |
Coffee break |
Session 1: Recent mining and petroleum fiscal developments in West AfricaChair: Thomas Baunsgaard, IMF |
|
| 10:00-10:30 am |
1. Impact of commodity prices on resource rich countries in West Africa Mr. Tobias Rasmussen, IMF |
| 10:30-11:15 am |
2. Fiscal impact of “lower for longer” petroleum prices and investment outlook in established and prospective petroleum producers Mr. Bassey Mkpa, Nigeria Federal Ministry of Finance Dr. Joe Asenso, Ghana Ministry of Finance |
| 11:15-12:00 pm |
3. Fiscal performance and investment outlook for mineral producers Mme. Salleye Soumana, Niger Ministry of Mines
Mr. Jamel Dugbeh, Liberia Ministry of Finance and Development Planning |
| 12:00-12:45 pm |
Open discussion to conclude session 1 Chair to moderate and open the floor to Q&As |
| 12:45-2:00 pm |
Luncheon address: How Can West Africa Benefit Most from Extractive Industries Dr. K.Y. Amoako, President of the African Center for Economic Transformation (ACET) |
Session 2: Design principles and practice: mining and petroleum fiscal regimes in West AfricaChair: Alistair Watson, IMF |
|
| 2:00-2:30 pm |
4. Fiscal regimes for extractive industries in West Africa: principles and practice Mr. Diego Mesa Puyo, IMF |
| 2:30-3:00 pm |
5. Petroleum Fiscal Reform in Nigeria: re-balancing the government take and encouraging cost reduction. Dr. Timothy Okon and Mr. Joseph Nwakwue, Nigerian Ministry of Petroleum Resources |
| 3:00-3:30 pm |
6. Managing the transition to a new mining code: features, improvements and remaining challenges of the Guinean experience Mr. Mamady Kaba, Guinean Ministry of Finance and Economy and Mr. Bouna Sylla, Guinean Ministry of Mining |
| 3:30-4:15 pm |
Open discussion to conclude session 2 Chair to moderate and open the floor to Q&As |
|
4:15-4:30 pm |
Coffee break |
| 4:30-6:00 pm |
7. Panel Discussion with Civil Society and private sector on Fiscal Reform Priorities for Mining and Petroleum Moderator: Mr. Thomas Baunsgaard (IMF) Panelists: Mr. Steve Manteaw (EITI); Benjamin Boakye (ACEP); Sulemanu Koney (Ghana Chamber of Mines); Mr. George Kwatia (Ghana PwC); and Mr. Tesa Ayernor (Tullow Ghana Limited) |
WEDNESDAY, FEBRUARY 28, 2018 |
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Session 3: Administering fiscal regimes for mining and petroleum: Issues and Challenges in West AfricaChair: Diego Mesa Puyo, IMF |
|
| 9:00-9:45 am |
8. Common challenges in implementing and administering fiscal regimes for mining and petroleum in the region Mr. Scott Shelton, IMF external expert |
| 9:45-10:30 am |
9. Transfer pricing and valuation issues in mining Mr. Dan Devlin, OECD |
|
10:30-10:45 am |
Coffee break |
| 10:45-11:30 am |
10. Mineral pricing challenges and valuation issues in Sierra Leone and Mali Mr. Abu Bockarie Tarawalie, Sierra Leone National Revenue Authority Mr. Mohamed Traoré, Mali Ministry of Finance and Economy |
| 11:30-12:30 pm |
11. Revenue administration issues for joint-development zones: the experience of Senegal and Mauritania; [and Sao Tome] Mr. Bassirou Faye, Senegal National Revenue Authority Mr. Álvaro Silva, Sao Tome & Principe National Agency of Petroleum |
|
12:30-2:00 pm |
Lunch |
| 2:00-2:45 pm |
12. The Use of Fiscal Modeling to Strengthen Tax Administration Risk Assessment Mr. Alistair Watson, IMF external expert |
Session 4: Macro-fiscal policy options for managing mining and petroleum revenue in West AfricaChair: Mr. Tobias Rasmussen, IMF |
|
| 2:45-3:30 pm |
13. Macro-fiscal frameworks for managing petroleum and mining revenue Mr. Thomas Baunsgaard, IMF |
| 3:30-4:15 pm |
14. The experience of Ghana and Sierra Leone with macro-fiscal frameworks and institutional reforms Dr. Alhassan Iddrisu, Director Ghana Ministry of Finance Mr. Lansana Fofanah, Sierra Leone Ministry of Finance and Economic Development |
|
4:15-4:30 pm |
Coffee break |
| 4:30-5:30 pm |
15. Concluding panel: lessons learned and way forward Mr. Thomas Baunsgaard, IMF Timothy Okon, Nigerian Ministry of Petroleum Resources Alexandra Readhead, IGF Aminata Seck, Senegalese Ministry of Mines Athelia Grasco Korvah, Liberia Revenue Authority. |
| 5:30-5:45 pm |
16. Closing remarks Kwaku Kwarteng, Deputy Minister of Revenue, Ministry of Finance in Ghana Closing remarks: English |
THURSDAY, MARCH 1, 2018 |
|
Hands-on Workshop: Fiscal Modeling of Extractive Industries using the FARI Methodology |
|
| 9:00-9:30 am |
1. Why it is important to model fiscal regimes for extractive industries (EI)? This introductory session briefly defines the fiscal regime for EI, and introduces participants to project modeling, and discounted cash flow analysis |
| 9:30-10:15 am |
2. The FARI modeling framework Brief walk through the model components (inputs, calculations or workings, and outputs). The aim here is to introduce participants to the model structure |
| 10:15-10:45 am |
3. Country experiences: Guinea Country officials will explain how modeling is done in their countries |
|
10:45-11:00 am |
Coffee break |
| 11:00-12:15 pm |
4. Modeling a tax/royalty regime This session discusses the main fiscal instruments used in tax/royalty regimes and how to model them (includes case study in Excel) |
|
12:15-1:45 pm |
Lunch |
| 1:45-3:30 pm |
5. Modeling a production sharing contract (PSC) This session discusses the fiscal instruments of PSCs and how to model them (includes case study in Excel) |
|
3:30-3:45 pm |
Coffee break |
| 3:45-4:45 pm |
6. Fiscal regime evaluation Discussion of the main indicators used in FARI (i.e., AETR, payback period, breakeven price, METR, progressivity) and how to interpret results when comparing fiscal regimes (includes case study in Excel) |
| 4:45-5:15 pm |
7. Other FARI uses beyond fiscal regime analysis Brief discussion on using FARI for revenue forecasting and tax administration. |
| 5:15-5:45 pm |
8. Country experiences: Ghana and Sierra Leone Dr. Joe Asenso, Ghana Ministry of Finance and Mr. Lansana Fofanah, Sierra Leone Ministry of Finance and Economic Development, will explain how modeling is done in their countries. |