Presentation on theme: "An Enabling Investment Climate: Afghanistan Oil, Gas and Mining"— Presentation transcript:
1An Enabling Investment Climate: Afghanistan Oil, Gas and Mining What the Sector Can Provide – inclusive, integrated growth by leveraging large, private-sector anchor investments into mining, oil & gasMichael Stanley, Mining LeadWorld Bank GroupWashington, D.C.
2Challenges Ahead field security long lead times for exploration / development“good fit” policy, legal & regulatory frameworksland acquisition / ROWrisk mitigationshared access infrastructurestrengthening institutions / building adsorptive capacities
3The Enabling Investment Climate: Geodata, Institutions & Adsorptive CapacityWhat investors wantGeological Potential – access to mineral resourcesGeodataConducive Investment Climate – banking, repatriation of profits, realistic foreign exchange controlsInvestment LawsSecurity of Tenure – transparent, non-discretionary exploration / mining rights and regulationsMining CadastreConsistency of Mineral Policy – competitive fiscal conditions, stability of exploration / exploitation terms and conditionsMineral PolicyTax LegislationStability of Legislation – predicability of exploration / mining terms and conditions, tax liability, fiscal regime. Good enough fitMining, env. / social, and tax regulationsAvailability of InfrastructurePublic Private PartnershipsModified after (a) Transitional Islamic State of Afghanistan: Mining as a Source of Growth, Report No AF, The World Bank 2004; and (b) James Otto – A Global Survey of Mineral Investment Preferences, Mineral Investment Conditions in Selected Countries of the Asia Pacific Region (United Nations ESCAP 1992).
7The Enabling Investment Climate: Strengthen Institutions and Build Adsorptive CapacityEffective Sector PolicyTransparent, non-discretionary licensing / award of contract procedures (first come and tenders)“Good fit laws and regulations”Good fit regulations, improved implementationNon-discretionary, transparent contract monitoring and compliance proceduresTransparent and efficient implementation of royalty and tax regimeDevelopment of a robust inspection regime to check compliance with health, safety and environmental standards
9The Enabling Investment Climate: Address Gaps and Build Adsorptive CapacityInputsOutputsOutcomesPrivate and public infrastructure (PPI)Mobilize infrastructure investmentsPPI dialogue and options analysisFDI into PPI shared-use infrastructureOpen access to infrastructureImproved access to regional trade / transshipment opportunitiesStrengthening of laws, policies & regulatory oversight“Good fit”Legal & regulatory oversightImproved land / title verification processesROW , resettlement and compensation processesSecurity of TenureVibrant commercial enterprisesImproved land-acquisition
10The Enabling Investment Climate: Address Gaps and Build Adsorptive CapacityInputsOutputsOutcomesRisk mitigation instruments covering land reform and regulatory oversightFinancial risk instruments in placeImproved financial market perspective on government obligationsStrengthen regional trade and commerceOptions analysis on prioritized regional interconnectsEarly regional trade / transshipment agreements
11The Enabling Investment Climate: Address Gaps and Build Adsorptive CapacityInputsOutputsOutcomesPublic financial management of EI revenues (PFM)Revenues TransparencyMacro-fiscal rules, revenue sharing arrangementsDedicated expenditure arrangementsTransparency anti-corruption processes and institutionsLocal benefits sharingRational expendituresBuilding adsorptive capacity to integrate public and private sector investment / development plansTechnical studiesIntegrated public and private development plansLeveraging of private sector investments to complement public investments
12The Enabling Investment Climate: Address Gaps and Build Adsorptive CapacityInputsOutputsOutcomesBuilding enterprise development capacity for (jobs) around competitive industriesSkilled local labour for direct / indirect jobsSME’s cluster-industriesEconomic growth through direct / indirect linkagesBeginning of economic diversification through clustersStrengthening social mobilization for improved service deliveryDemand-side monitoring of service delivery, improved consultation , and grievance mechanisms around the sectorEmpowerment of the demand-side on service deliveryImproved HDI’s around sector operations
14Inclusive Growth Corridors Map LegendInput: Power or waterEconomic diversification, clustersMineZone of Economic / cultural impactYearOutput Infrastructure246810121416World Bank Group
15Summary collect & dissemination of geodata implement “good fit” laws and regulationsStrengthen institutions and adsorptive capacityfocus enabling investment drivers:open access, public private infrastructuregaining right-of-waystructuring risk mitigation instrumentsstrengthen regional trade and commerce interconnectsPublic financial management of EI revenues (PFM)Building adsorptive capacity to integrate public and private sector investment / development plansBuilding enterprise development capacity for (jobs) around competitive industriesStrengthening social mobilization for improved service deliverygovernment takes a resource corridor approachinclusive integrated growth
16Michael Stanley, Mining Lead Thank YouMichael Stanley, Mining LeadWorld Bank GroupWashington, D.C.
17What Can Be Achieved In the 10 Years Mines -- Two major industrial mines in operation (Aynak and Hajigak); one or more hydrocarbon blocks producing, smaller scale industrial mines in gold, lithium, other metallic minerals; 200+ licensed quarry operations, gemstones, and other artisanal production.Infrastructure -- Major transportation (rail), power and water infrastructure investments in “corridors” to support mining investment; “spin-offs” in terms of local economic development.Governance – EITI, transparent non-discretionary sector administration, central government control over “illicit” mining and regularization of artisanal miners;Support – Provision of geodata, sector promotion, and resource corridor support through Government partnerships: ADB, World Bank, USAID, UKDFID, AUS AID and others.