DRAFT
DEVELOPMENT PARTNER ENGAGEMENT IN GAS SECTOR IN TANZANIA – CURRENT AND FUTURE PLANS
A. Overarching
issues
Strategic vision:
B. Decision to
extract
Assessing the
resource:
Norway (OfD)
Government
support review of
capacity to oversee
petroleum policy,
the industry and
legislative and
make own
institutional
assessments of the
framework
resource potential
critical.
World Bank
Norway (OfD):
A1.1 Strategic follow Modernization of
up to the gas master
the regulatory
plan
framework and
A1.2 support for
strengthening of
cross-sectoral reforms key government
B1.4 Cross-sectoral
functions including
Platform in GoT to
in MEM and TPDC.
integrate Natural Gas Establishment of a
Issues
national reference
petroleum
Question: Explicit
database.
thinking and strategy
of upcoming
World Bank:
petroleum resources
B2.4 Enhance
C. Getting a good
deal
D. Collecting
revenues
E. Managing the
resources
Award of contracts
and licenses:
Tax Policy:
Macroeconomic
management:
Norway (OfD): Support to
modernize
regulatory
instruments,
including tender
systems,
regulations and
contracts (PSA)
with industry.
-Ongoing TA
related to the 4th
licensing round is
benchmarking tax
regimes and PSA
conditions.
World Bank:
A2.1 Legal and
Regulatory
-Norway (Tax for
development
program in Tanzania,
delivered through
different
agreements) has
delivered a custom
made petroleum tax
model to GOT
through a core
modeling team
established within
GOT. There is a long
term capacity
building program
with a plan with
funding and
expertize from
Norway, to ensure
the model can be
utilized by different
institutions for a
F. Policies and
investment
for
sustainable
developmen
t
Public
investment
management:
-Norway through
its bilateral
agreement on
resource revenue
management with
TRA has the
possibility to offer
technical
assistance in the
area of SWF.
World Bank:
D1. MEM PPP
Node support
D2. TANESCO
PPP Node
support
A1.2 support for
cross-sectoral
reforms
IMF will provide
technical
assistance on how
to integrate natural
gas revenue into
the macro-fiscal
and public financial
management
framework. The
support will be
WB/ESCAP
proposed scope
(Oct 2011):
Petroleum
strategy,
including power
system master
plan, short-term
and long-term
G. Cross cutting
issues
Capacity building:
Norway (OfD and
TfD)
-On the job training
and capacity building
to enhance
organizational
capacity in key
government
institutions (TPDC,
MEM, TRA, MOF,
NEMC etc).
- Education and skills
development,
including review of
Vocational training
needs as well as
resources for
University level
twinning
arrangement and
master degrees.
DRAFT
and revenues missing
in the FNDP and
Vision 2025
implementation
framework? Should a
specific strategy and
national development
scenario be
established?
Germany
Capacity building and
organizational
development to
support an integrated
coordination unit for
the gas sector within
the GOT.
Support to the
development and the
implementation of a
GOT communication
strategy for the gas
sector including the
set-up of a
monitoring and
evaluation system.
reservoir
simulation,
geological
modeling and geochemical
laboratory
infrastructure in
TPDC
Framework Gas
Sector
B2.5 Support TPDC
in LNG transactions
B1.4 Cross-sectoral
Platform in GoT to
integrate Natural
Gas Issues
Question: Perhaps
the issue is more
one of urging GOT
at the political level
to use more time
on regulating
properly the sector
and gathering data
and information
through already
ongoing
exploration, so as
to effectively
manage
development and
production. There
should be no hurry
in off-loading new
fields and licenses
for exploration
today.
IMF:
Under Trust fund
on Managing
Natural (MNRW
TTF Resource
Wealth) IMF Fiscal
Affairs Department
commences work
in October 2012 on
Extractive Industry
Fiscal Regimes,
Licensing and
Contracting, with
an initial focus on
natural gas. The
project will review
both contractual
and legislated
fiscal terms, and
the fiscal
framework for
natural gas
variety of purposes,
including design and
implementation of
effective tax policies.
As mentioned, the
model is currently
being utilized with
Tanzania data and
other relevant deep
sea field data to
model the fiscal
regime for the 4th
petroleum licensing
round. A report will
be produced in
August/September
2012. The model can
produce data and
results by field, by
company and overall
for the sector.
World Bank:
B1.1 Training on
revenue streams and
physical audit
processes
IMF:
Revenue
Administration for EI
finance by the IMF
Topical trust Fund
on Managing
Natural Resource
Wealth (TTF
MNRW).
Specific activities:
Macro-fiscal: (i)
enhance capacity
for medium- to
long-term
macroeconomic
projections; and (ii)
design of fiscal
policy framework
and fiscal rules.
Public financial
management: (i)
options for the
design of a
resource fund; (ii)
amendments to
the Public Finance
Act; (iii)
strengthening the
medium-term
expenditure
framework; (iv)
review of budget
classification and
chart of accounts;
gas sector
development
plans.
EU (prospective,
starting 2013)
- Policy advise to
GoT and nonstate-actors
World Bank:
B1.4 Cross-sectoral
Platform in GoT to
integrate Natural Gas
Issues
B2.1 Technical
advice, enhanced
tariff modeling
infrastructure and
training for EWURA’s
natural gas division
B2.2 T Technical
advice, enhanced
tariff modeling
infrastructure and
training for EWURA’s
electricity division
B2.3 Advisory and
training services to
MEM and related
Ministries
B2.4 Enhance
reservoir simulation,
geological modeling
and geo-chemical
laboratory
infrastructure in
TPDC
B3.2 Advisory
services and training
for NEMC
B4.1 OSHA staff
DRAFT
projects taking
account of various
possible
commercial
options for gas
development. The
project will use
Fad’s FARI
modeling system
to simulate
upstream
petroleum
regimes, and also
to model policy
choice in the chain
of gas activities.
(like duration up to
24 months)
AfDB:
Will provide Legal
advisory support
through the
African Legal
Facility
Germany
(GIZ/AfDB):
Support to the
development of
negotiation skills
(Module 2 under
MNRW TTF) – the
possible scope of a
project will be
evaluated during the
October 2012 fiscal
regimes mission, and
a project proposal if
appropriate will then
be submitted for the
MNRW TTF.
and (v) design of a
regular and timely
fiscal reporting
regime.
Germany
Public financial
management:
Support to crossdepartmental
budget planning.
training program
C1.1 Support VETA to
develop, implement
and supervise an
Educational
Development Plan
C1.2 Procurement of
VETA tools and
materials
EU (prospective,
starting 2013)
- Capacity development
for Government
institutions
- Capacity development
at University and
professional training
level (assessment to
start shortly)
AfDB:
we will explore
capacity
strengthening
activities in oil and
gas sector through
upcoming Education
Expansion Program.
DRAFT
with emphasis on
environmental and
governance issues
in close
cooperation with
the African Legal
Facility
Transparency and
accountability:
-Will in part be
addressed through a
national petroleum
policy and revised
acts and regulation.
Special measures can
be defined and taken
in terms of how the
sector is organized
and managed.
(Norway will support
through OFD
component 2).
Already signed
initiatives such as the
OGI and EITI
(supported by
Norway, Canada, and
WB) will play a role.
Local economic,
social and
environmental
impacts:
Norway (OfD)
Environmental and
safety issues to be
covered in the
review of
petroleum policy,
legislative and
institutional
framework.
Support to
strengthen
knowledge,
institutional
competencies and
regulatory
capacities.
Legal, regulatory
and institutional
framework:
- Norway (OfD):
Support to revise
the Petroleum Act,
TPDC
establishment Act,
“New regulator”
Act, Model PSA,
Petroleum
regulations
(including HSE and
environmental
managements
issues).
World Bank:
A2.1 Legal and
Regulatory
Framework Gas
Tax administration:
-Norway (Tax for
development
program in Tanzania,
delivered through
different
agreements), will
both through a long
terms institutional
cooperation
agreement between
the Norwegian Tax
Authority and the
TRA and another
agreement on
resource revenue
management, deliver
capacity building and
technical assistance.
In the institutional
cooperation, the
Distribution of
resources:
Working with the
private sector:
-Norway will
advise on the
distribution issue
to some extent in
the work on the
legal and
regulatory work.
Typically the
overall agreed
choices and
formulas needs to
be reflected here.
Further
considerations
regarding budget
use enter into the
PFM and PIM
spheres.
- Norway will
through its Oil for
development
program as well as
other initiatives work
closely with Statoil
and other companies
to secure efforts in
areas such as local
content, petroleum
related college and
university degrees
and training etc.
World Bank:
C1.1 Support VETA to
develop, implement
and supervise an
Educational
DRAFT
-Other initiatives to
consider concerns
financial reporting
(Openness
Guarantee, Norway
will support through
experts, Fall 2012),
making public signed
PSA’s etc.
World Bank:
B1.2 EITI Secondment
training on financial
modeling
B1.3 Secondment
training in another
EITI Secretariat in SSA
B1.4 Cross-sectoral
Platform in GoT to
integrate Natural Gas
Issues
EU
Funding the EITI
through the MDTF.
Possible direct
funding to TEITI
Secretariat
(Starting 2013)
Germany
Technical support to
World Bank:
B3.1 Prepare
Strategic
Environmental and
Social Impact
Assessment (SESIA)
Sector
A2.2 Gas Sector
specific Safety
regulation
A2.3 Legal Advice
to EWURA’s
Natural Gas
Division
emphasis will be on
specialized tax audits
(including mining,
petroleum and other
sectors),
international
taxation and large
enterprises.
Development Plan
D1. MEM PPP Node
support
D2. TANESCO PPP
Node support
AfDB:
Has supported the
recently concluded
feasibility study for a
possible natural gas
pipeline from Dar es
Salaam to Mombasa,
and will welcome the
initiative to make use
of the study. The
study has found that
the project is
commercially viable.
Germany
Support to public
private partnerships
(PPP) in connection
with Corporate Social
Responsibility (CSR)
measures (i.e.
community
development and
dialogue, improving
local benefit
including through
DRAFT
the T-EITI process in
all possible aspects
(reinforcing the multistakeholder dialogue,
support to the
national secretariat,
dissemination of the
report,
communication
strategy, trainings,
etc.)
value chain
development and
other linkages
created)
Environmental
management:
Norway (OfD):
-Review of
environmental
policies and
regulatory
framework.
- Environmental
data management
systems.
-Capacity building
in relevant GOT
institutions,
including NEMC.
World Bank
B3.2 Advisory
services and
training for NEMC
B3.3 Purchase of
DRAFT
measuring
equipment
Germany
Support to the
setup for a
strategic
environmental
assessment
/management
system, with a
view to regional
cooperation and
experience sharing
Safety
Management:
Norway (OfD):
-Review of policies,
regulatory and
institutional
framework.
-Implementation of
safety
management
systems.
- Oil spill
contingency plans.
-Institutional
capacity building
and on the job
training (doing
DRAFT
actual safety
assessments).
World Bank:
A2.2 Gas Sector
specific Safety
regulation
B4.1 OSHA staff
training program
B4.2 Purchase of
measuring
equipment