Who determines a good extraction contract?

By Pascal Kwesiga

World over, Governments and extraction companies are facing mounting pressure to disclose contracts.

The pressure is coming from the Civil Society, industry regulators and international financial institutions. Clearly, calls for greater contract transparency in the extractive industry are louder than ever.

However, these calls are meeting stiff resistance from countries and some extraction companies that still want to keep extraction contracts secret.

While some countries have allowed some degree of contract openness and enacted pieces of legislations that make it mandatory for their Governments and extraction companies to disclose contracts, many are still against disclosures.

The Governments which are still paranoid about contract disclosures put forward the need to protect ‘public interest’ and their countries’ ‘commercial interests’ as the main arguments against transparence in oil and mining contracts.

But these arguments are slowly being punctured by emerging schools of thought. For example, some of those in favour contract disclosure argue that public interest is broad and it could also be in public interest for the population to know the contents of the contracts their Governments have signed with extraction companies.

Others argue that it is meaningless for Government officials to think that disclosing extraction contracts will reduce the bargaining power of their countries in future contracts because the companies share this information among themselves. Some have disclosed these contracts in their countries’ stock markets.

In Uganda, some of the Government officials who have continued to put up a spirited defense against contract disclosures also appreciate the need for Ugandans to know the contents of the contracts Government and Oil Companies signed.

But, these Government officials also argue that maintaining contract secrecy to protect the country’s ‘commercial’ and ‘public interest’ outweighs the need for the public to know the contents in the extraction contracts.

In trying to dispel suspicion and fears from the public which is eager to know the contents of the agreements, the Government officials at the ministry of Energy and Mineral Development and the Petroleum Directorate keep telling Ugandans that the contracts the country has signed with oil companies are favourable for Uganda, and that there should be no need for alarm.

They also say that they ensured that comfort clauses are minimized during negotiation of the contracts. Comfort clauses favour the companies. So, is it possible that the oil companies signed deals where they will reap few benefits given their experience in the extraction industry? Who determines a good contract? Do governments act on behalf of the people in signing contracts?

If Governments sign contracts on behalf of the population they should not be coy about disclosing them. Contract secrecy creates suspicion and excludes the public from monitoring the activities of the oil companies. It also makes it difficult for the people to understand the extractive industry.

It is also hard to convince the public that the Government signed favourable contracts with oil companies. The use of the word favourable creates ambiguities and it can be interpreted in various ways. There are many stakeholders in the extractive industry and one wonders which category of people the contracts favour. No matter the arguments for contract secrecy, contract disclosure is in the best interest for the Government, extraction companies and the people.

MAFUTA NA GESI TISHIO KWA SEKTA NYINGINE

Na Sylvia Mwehozi

Shughuli za uchimbaji wa mafuta na  gesi ni moja ya sekta ambazo  zinakua kwa kasi katika nchi kadhaa barani  Afrika ambazo zimegundua uwepo wa nishati hiyo. Ghana ni mojawapo ya nchi ambayo imeanza shughuli za uzalishaji miaka mitano iliyopita.  Mkoa wa Magharibi ambao upo kilometa 182 kutoka mji mkuu wa Accra ndiko shughuli za uchimbaji zinafanyika.

Hivi karibuni nilitembelea wilaya ya Sekondi-Takoradi iliyoko mkoani humo na kufika katika eneo ambalo Gesi inazalishwa, ambapo kwa mujibu wa wakazi wa mji huu ,  kumekuwa na mabadiliko ya shughuli za kiuchumi, mwingiliano mkubwa wa watu wa kutoka sehemu tofauti na kuibuka kwa fursa mbalimbali.

Suala la Idadi ya watu wanaokimbilia katika  mkoa wa  Magharibi nchini Ghana kutokana na kuwepo kwa shughuli za uchimbaji wa gesi na mafuta, imezidi kuongezeka na kuleta wasiwasi kwa wenyeji lakini pia ikihatarisha kudidimia kwa sekta nyingine za uzalishaji ikiwemo sekta ya kilimo.

Kwa mujibu wa sensa ya watu na makazi ya mwaka 2010 , mkoa huo ulikuwa na wakazi laki mbili lakini hivi sasa idadi hiyo imezidi kuongezeka na kufikia wakazi laki tano. Idadi hiyo inatajwa kuongezeka kwa sababu ya kuanza kwa shughuli za uchimbaji wa gesi , ambazo zimeibua fursa nyingine, kama ongezeko la ajira , na shughuli nyingine za kiuchumi.

Katika mazungumzo na ujumbe wa waandishi wa habari , Naibu waziri wa mkoa huo Paul Evans Aidoo anasema kuwa wasiwasi umekuwa mkubwa kwa sababu mkoa huo wa Magharibi ndo kitovu cha uchumi wa nchi kwa hivi sasa. ‘Kutokana na ugunduzi wa gesi na mafuta, watu wengi kutoka kaskazini mwa mkoa huu wanashuka chini, eneo la pwani, kwa kufanya hivyo tunahofia kuwa sekta nyingine kama kilimo zitakufa’ alimalizia naibu waziri Aidoo ambaye pia anakaimu umeya wa mkoa huo. Kwa mujibu wa kiongozi huyo, tayari kumeanzishwa mpango mkakati ambao utawasaidia wananchi kuelewa umuhimu wa kushiriki katika uzalishaji wa sekta nyingine badala ya kukimbilia mkoa huo kwa sababu ya mafuta.

Naibu Waziri  wa mkoa wa Magharibi nchini Ghana , Amos Anyimadu akizungumza na baadhi ya wandishi wa habari walipomtembelea ofisini kwake.

Kauli yake inaungwa mkono na Amos Anyimadu, mwanazuoni na mtaalamu wa masuala ya siasa , Kwanza anadiriki kusema kuwa wananchi walikuwa na matarajio makubwa baada ya ugunduzi wa gesi na mafuta, hata hivyo matarajio hayo yanapingana na uhalisia uliopo na hii inachangiwa na sababu kubwa ya kuiona sekta hiyo ya gesi kama mkombozi pekee wa uchumi. ‘’Vyombo vya habari vinapaswa kufanya kazi yake ipasavyo, kama nilivyowaambia mara ya kwanza ilikuwa mwaka 2009 wakati nilisikia kwenye radio moja kuwa Takoradi sasa ni mji wa mafuta, na kulikuwa na mabango kadhaa, yanayosema karibu! Karibu! mji wa mafuta Takoradi lakini nyie wenyewe mmetembea mmejionea hali ilivyo ’’ alisema Dr. Anyimadu.

Kwa mujibu wa mwanazuoni huyo, wananchi wanapaswa kuelimishwa kuwa sekta ya mafuta na gesi pekee haviwezi kuwa chanzo cha mapato na kuacha shughuli nyingine za kiuchumi.

Mtambo wa uzalishaji gesi wa Atuabo ulioko mkoa wa magharibi nchini Ghana

Moja ya mikakati ambayo imeanzishwa na serikali ya mkoa huo ni uanzishwaji wa taasisi ya Western Region coast foundation ambaye inalenga kuwa jukwaa la wadau wote wa mafuta, na gesi pamoja na wananchi kujadili mahitaji , fursa , changamoto na kuwezesha upatikanaji wa majibu juu ya mahitaji hayo.

Tangu kuanzishwa kwake majadiliano katika jumla ya jamii 177 yamefanyika na masuala 620 yakiibuliwa katika Nyanja za uchumi, afya, maji, elimu, miundombinu, mazingira na utawala bora.  Wananchi wa eneo hilo wanasema kuwa fursa zipo, hata hivyo wazawa wenyewe hawajawa tayari kuzitumia na matokeo yake wanaishia kulalamika kuwa wageni wanazichukua. Sylvia Ousu ni mwanamke mfanyabiashara katika eneo la market circle, anasema mwanzoni walikuwa na mategemeo makubwa waliposikia gesi, lakini sasa ni tofauti, biashara haiendi kwasababu watu wanalalamika hawana hela.

Hata hivyo anasema watu wanapaswa kuchangamkia fursa, ‘’ingawa fedha hakuna , lakini kama sisi wanawake tunapaswa kufanya kazi , kama hapa sokoni wanawake wengi wanafanya biashara , ni vizuri kuliko kutofanya kazi kabisa’’.

Mkoa wa magharibi sasa umekuwa lulu miongoni mwa maeneo ya uwekezaji nchini Ghana, gharama za maisha nazo zimezidi kupanda , kwa mfano chupa moja ya maji ya kunywa unaweza kuipata kwa cede 4 hadi 5 ambayo ni sawa na dola 1.4 moja ya marekani tofauti na hali ilivyo mji mkuu wa ACCRA ambako chupa ya maji unainunua kwa cede 1 hadi 2 sawa na dola 0.57 ya Marekani.

Tanzania ikiwa imeanza shughuli za uchimbaji inapaswa kujifunza kuwa wananchi wanahitaji elimu ya kutosha ya kuzingatia mchango wa sekta nyingine za kiuchumi badala ya kukimbilia mjini Mtwara pekee wakiwa na matarajio ya kupata ajira, na fursa nyinginezo na hivyo kuhatarisha uchumi kwa kuwa sekta nyingine zitakuwa hazizalishi

‘Corporate governance key to effective utilisation of mineral wealth’

By Jessica Acheampong, ACCRA

The Media Capacity Development Officer of the Natural Resource Governance Institute (NRGI), Mr George Lugalambi, has observed that mineral-rich countries required good corporate governance structures to be able to properly convert their natural resource wealth into sustainable economic development.

He said natural resources such as oil, gas and minerals, hold great potentials for development, which, when properly managed, help transform economies. This, he said required that good decisions are taken on their usage.

“Transforming oil, gas and mineral wealth into sustainable development requires a complete chain of economic decisions and strong foundation of good governance,” he said at the sixth regional media training on oil, gas and mining in Accra.

According to him, economic decisions taken about the exploitation of a natural resource could affect other decisions that have to be taken in the future and it was therefore prerequisite that they are thoroughly thought through prior to their implementation.

“You must understand the decision you take and how it relates to others in the long term. For instance, if you discover two oil wells, some decisions must go into you choosing one to exploit over the other,” he said.

Mr Lugalambi, who took participants through the domestic foundations for resource governance said: “good decision making by government rests on a foundation of rules, institutions, and a critical mass of informed citizens and an authorising environment.”

He explained that it was not only enough for government to lay the foundation for resource governance but to a large extent, ensure that there is an authorising environment that will ensure strict adherence to the rules and regulations governing the use of natural resources.

The workshop

The 10-day course on the extractive sector is being organised by the NRGI in partnership with Penplusbytes in Accra for 24 journalists from three countries – Ghana, Uganda and Tanzania.

The capacity building training program, which is under the ‘Strengthening Media Oversight of the Extractive Sectors,’ is expected to help promote effective and consistent media reportage on oil, gas and mining activities.

It is expected to help increase the number and quality of stories on extractives across all media platforms.

It is targeted at early to mid-career reporters and would help offer them a wide range of benefits, including providing holistic and comprehensive support to journalists through specialised knowledge and skills modules, professional mentoring, experiential learning, access to sources and vital information.

It will also provide access to data as well as encourage interaction with peers, experts, policy makers, and oversight actors.

The Executive Director of Penplusbytes, Mr Kwami Ahiabenu, said good governance of oil, gas and mining resources and the revenues they generate requires effective oversight.

“An effective oversight, however, hinges on an informed, responsive and dynamic media to provide necessary and accurate information to the public about critical governance issues. Here lies an opportunity for journalists to develop more insight and skills on the sector in Africa in ways that are self-sustaining,” he said.

African Journalists discuss importance of EITI

The need, whether or not to join an international standard, Extractive Industries Transparency Initiative is a question that can’t be escaped when it comes to natural resource management.At the 6th Oil, Gas and Mining media training, the heat of the discussion was evident when journalists from East and West Africa met at the annual program. Ghanaian journalist, Prince Appiah has been speaking to Uganda, Tanzania and Ghanaian journalists on the importance of countries signing onto EITI.
listen to his interview here

We’ll resist employment of non-indigenes with our lives – Obuasi MCE warns

Elton John Brobbey


Municipal Chief Executive of Obuasi, Richard Ofori-Agyemang Boadi has issued a terrifying warning to AngloGold Ashanti against recruitment of non-indigenes.
AngloGold Ashanti, one of the continent’s biggest mining firms, is preparing to roll out fresh operations in Obuasi, but the MCE said the company will not be allowed to operate unless it employs a significant number of its workforce from the municipality.
The Obuasi Municipal Chief Executive was speaking to journalists from Ghana, Uganda and Tanzania attending an international programme on the extractive industry.
The over 100 year old mine at Obuasi was closed down in December last year with management explaining that the closure will enable them undertake care and maintenance works. The exercise led to massive layoffs.
AngloGold Ashanti and South African-based Randgold Resources Limited have agreed to revamp the mine.
But Obuasi MCE, Richard Ofori-Agyemang Boadi said they will put their lives on the line to force the firm to employ people from Obuasi.
“We, the people of Obuasi, will ensure that every employment is done at the department of labour but not at their offices. This one, we will do it with the last drop of our blood.”
The mine has a deposit of about 60 million ounces of gold with 19 years lifespan.
“We will not negotiate, we will not compromise…and will ensure that those employed are indigenes of Obuasi…with that, we are assured there would be enough disposable income which will then revolve in every economic activity.”
Ofori-Agyemang Boadi explained to Joy News that when the mine was closed down, most of the retrenched workers who were given attractive package left the municipality exposing the firm’s discrimination against indigenes.
However, he noted that whatever action that would be taken by the leadership of the area would be within the laws of the country.
He said there are qualified artisans – plumbers, electricians etc – in Obuasi to work in the mine that is expected to be in operation between February and March next year.
But the Chief Executive of Chamber of Mines Sulemana Koney told Joy News there would be no need for the community to use “brute force” in exercising their right.
 He noted that the practice has always been that indigenes are given advantage over non-indigenes.
 “Such processes are regulated by law… there should not be no difficulty” in implementing the request of the people of Obuasi, he assured.
Meanwhile, a group of frustrated small scale miners’ numbering over 13,000 in Obuasi say military occupation of some concessions of AngloGold leased to them has made life unbearable for them.

http://www.myjoyonline.com/news/2015/October-12th/well-resist-employment-of-non-indigenes-with-our-lives-obuasi-mce-warns.php#sthash.3qK6inC3.dpuf

Check negotiating capacity for extractive contracts, developing countries told.

 Adiah Nakuti- 13th/10/2015.


Natural resources wealth play crucial role in transforming countries particularly developing nations.
In most developing countries, the extractive industries, Oil, gas and minerals account for more than half of the national income according to the 2009 Revenue Watch institute report on Ending Secret Deals in the Extractive Industry.
However, according to Natural Resources Governance Institute, Africa Associate, Samuel Bekoe, the country’s benefits from extractive industries sorely depend on the contracts signed between government and companies.
Addressing journalist from Uganda, Ghana and Tanzania, undergoing media training on covering Oil, gas and mining in Accra, Samuel Bokoe pointed out that because of experience in the extractive sector, companies know more than governments.
He was quick to add that due to lack of capacity of the negotiators, some governments hire international experts to analyze their extractive contracts.
Since natural resources are non renewable, governments should strive to make a balance between designing fiscal policies that attract investors but also benefit the country.

Mining, oil and Gas Media Training : Photo report

 By Talib Ussi

Marie Lintzer presenting paper of Extractive Industries Transparency Initiative( EITI) when training of Gas, Oil and Mining proceeding  Ghana for aims of Journalists to understand role of that foundation.