World Bank Oil, Gas and Mining Work Africa

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World BankOil, Gas and Mining WorkAfrica

• African Development Bank
• Roundtable
• Tunis
• October 4, 2006
• Michael Levitsky
• Lead Economist
• Oil, Gas and Mining Policy Division
• The World Bank

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World Bank Oil, Gas and Mining Structure
President
Sustainable Development VPU Kathy Sierra
Other VPUs
Africa VPU
Other Regions VPUs

Oil, Gas, Mining Chem. Dept. Rashad Kaldany
Sustainable Development Dept.
IFC
OGM Policy Div. Peter Van der Veen

Country Dept. Abc, Defg, Hij
IFC Divs.
ca. 25 staff EITI, GGFR, CASM
This is a simplified organization chart and is
not an official representaiton of the World
Banks structure.
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Africa Key Issues in Oil, Gas and Mining

• General failure to transform resource wealth into
  sustainable development
• The Resource Curse
• Rapid growth in oil, gas and mining production
  and revenues
• Rising production, higher prices
• New producing countries
• General problem of Governance
• With deeper systemic issues
• Macro, institutions, capacity

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Africa Growth in Oil, Gas and Mining Revenues

• 65 of all FDI during the 1990s was concentrated
  in oil, gas and mining
• Between 2000-2010, 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)

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WBG Oil, Gas and Mining Strategic Framework

• Response to Extractive Industries Review (2004)
• Governance and transparency
• Benefits for poor
• Mitigate Environmental Social Risks
• Protecting communities, local people
• Promote cleaner energy
• Actions included
• IFC Safeguards
• Increased Project transparency
• WB EI Consultative Group

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World Bank OGMGlobal Initiatives

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

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World Bank OGMGovernance Programs

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

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World Bank OGMAAA Work and Projects

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

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World Bank OGMProjects

• Mining and Petroleum
• More Mining projects that Petroleum
• Sector less mature, needs legal and institutional
  framework
• Financial burden on state potentially larger
• Fewer state companies preventing reform
• Typical Mining Project may include
• Legal, Regulatory Framework
• Institutional Reform and Development
• Cadastre, Geological data development
• Capacity building
• Some oil TA
• Institutional Strengthening
• Capacity building

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World Bank OGMProjects

• Mining Projects
• Nigeria (FY05)
• Guinea (ca. FY08)
• Mozambique (FY01)
• Tanzania (FY08)
• Uganda (FY04)
• Sierra Leone (FY08)
• Madagascar (FY03)
• Mauritania (FY04)
• Oil Gas Projects
• Mauritania (FY05)
• Sao Tome Principe (FY04)
• Mozambique

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• Thank You
• Michael Levitsky
• Lead Energy Economist
• Oil, Gas Mining Policy Division
• The World Bank
• 1 [phone]
• mlevitsky_at_worldbank.org