## mnrw2018ar - Executive Summary ## Source details **Canonical URL:** [mnrw2018ar - Executive Summary](https://www.imf.org/-/media/files/capacity-developement/mnrw/mnrw2018ar.pdf) ## Other formats - [Markdown version](/-/media/files/capacity-developement/mnrw/mnrw2018ar.pdf.md) - [Structured JSON version](/-/media/files/capacity-developement/mnrw/mnrw2018ar.pdf.json) --- ### Scope and timing - The report is the first annual report of the Managing Natural Resource Wealth Thematic Fund (MNRW-TF) phase II prepared for the annual meeting of the Steering Committee. - The report covers activities in fiscal year 2018 (FY18) from May 2017 to April 2018. ### Implementation and demand - Project implementation in the first full operational year of phase II was satisfactory with an increase in spending compared to the annual average during phase I. - The higher spending reflects generally solid project implementation across all modules and fund activities and an increased emphasis on cross-country training. - Some projects experienced delayed starts or difficulty establishing traction; adjustments to project budgets are warranted to ensure efficient fund implementation. - Demand for technical assistance and training across all modules and activities remains high; portfolio will be gradually built up across modules to respond. ### Program design and coverage - The MNRW-TF leverages IMF expertise to provide technical assistance and capacity building on managing natural resource wealth in low- and lower-middle income countries. - Implementation partners: Australia, the European Union, the Netherlands, Norway, and Switzerland. - The thematic fund was launched in April 2011; phase II initiated in FY17 with FY18 as the first full operational year of phase II. - Thematic fund structure: five modules plus training, workshops, and research: - Module 1: Extractive industries fiscal regimes (tax policy) - Module 2: Extractive industries revenue administration and risk management - Module 3: Extractive industries macro-fiscal and PFM - Module 4: Exchange rate regimes and macro-prudential policies - Module 5: Statistics for managing natural resources - Country-level activities are concentrated in sub-Saharan Africa with activities in Asia and Latin America. - By end-FY18, 13 beneficiary countries in Africa, Asia-Pacific and the Western Hemisphere were benefitting from MNRW-TF financed assistance. ### Financial status and projections - Confirmed commitments for phase II increased to US$26.6 million following donor agreements with Australia and the European Commission. - A total of US$15.5 million has been disbursed to the thematic fund account. - Compared to the targeted program budget of US$30 million, there is a remaining funding gap of (3,395,978) U.S. dollars. - Two donors (the Netherlands and Switzerland) can roll over residual funds from phase I amounting to US$1.1 million to phase II; Australia is expected to scale up its contribution by AUD1.4 million. - Projected cashflow: currently programmed expenditure through FY2022 of US$17.2 million can be accommodated within expected cumulative cash availability of US$26.6 million. - The cumulative cashflow totals reflect actual spending in FY18 and indicative project budgets for future fiscal years; the table notes the cumulative cashflow total may be slightly understated. ### Program portfolio, budgets, and FY18 spending (by module and activity) - Total endorsed projects across the thematic fund amounted to US$19.1 million as of end-April 2018. - Total expenditure in FY18: US$4.6 million. - Indicative program document budget: US$30,000 (thousands) i.e., US$30,000,000; Total approved budgets as of April 30, 2018: US$19,068 (thousands) i.e., US$19,068,000; Actual expenses as of April 30, 2018: US$4,625 (thousands) i.e., US$4,625,000. - Share and spending details (reported in thousands of U.S. dollars): - Direct Technical Assistance: Indicative envelope 17,351; Approved budgets 13,808; Actual expenses 2,724; Share of total indicative envelope 58%; Share of total approved budgets 72%; Share of total actual expenses 59%; Actual expenses relative to approved budgets 20%. - Module 1: Fiscal Regimes — Approved budgets 4,476; Actual expenses 1,049; Share of total approved budgets 23%; Actual expenses relative to approved budgets 23%. - Module 2: Revenue Administration — Approved budgets 3,162; Actual expenses 487; Share of total approved budgets 17%; Actual expenses relative to approved budgets 15%. - Module 3: Macro-Fiscal — Approved budgets 1,925; Actual expenses 505; Share of total approved budgets 10%; Actual expenses relative to approved budgets 26%. - Module 4: Exchange Rate and Macroprudential — Approved budgets 1,195; Actual expenses 103; Share of total approved budgets 7%; Actual expenses relative to approved budgets 9%. - Module 5: Statistics — Approved budgets 3,051; Actual expenses 581; Share of total approved budgets 16%; Actual expenses relative to approved budgets 19%. - Scoping Missions — Approved budgets 355; Actual expenses 294; Actual expenses relative to approved budgets 83%. - Research Projects and Analytical Tools — Approved budgets 1,242; Actual expenses 44; Actual expenses relative to approved budgets 4%. - Workshops & Training — Approved budgets 2,891; Actual expenses 1,350; Share of total approved budgets 15%; Actual expenses relative to approved budgets 47%. - Small Projects — Approved budgets 48; Actual expenses 0; Actual expenses relative to approved budgets 0%. - Project Management — Approved budgets 723; Actual expenses 200; Actual expenses relative to approved budgets 28%. - Staff Costs — Approved budgets 629; Actual expenses 200; Actual expenses relative to approved budgets 32%. - Steering Committee — Approved budgets 94; Actual expenses 0. - Independent Evaluation — Approved budgets 98; Actual expenses 0. - Total: Indicative envelope 30,000; Approved budgets 19,068; Actual expenses 4,625; Trust Fund Management Fee: 1,963 (indicative), 1,247 (approved), 303 (actual). - Module-specific project counts and FY18 spending: - Module 1: nine approved country-level projects; total endorsed budget US$4.5 million; FY18 spending just over US$1 million (23 percent of total approved projects). - Module 2: five approved country-level projects; total endorsed budget US$5.0 million; FY18 spending US$0.5 million (15 percent of approved budgets). - Module 3: three approved projects; total budgets US$3.1 million; FY18 spending US$0.5 million (26 percent of approved budgets). - Module 4: one umbrella project; budget US$1.2 million; FY18 spending US$0.1 million (9 percent of total budget). - Module 5: two multi-country projects; total budget US$3.0 million; FY18 spending US$0.6 million (19 percent of approved budgets). - Training projects: three projects; total budget US$2.9 million; FY18 expenditure US$1.3 million (47 percent of approved budgets). - Analytical projects: two projects; total approved budgets US$1.2 million; FY18 expenditure US$0.06 million (4 percent of approved budgets). - Scoping missions: total FY18 spending US$0.3 million. - The pace of spending in FY18 has picked up compared to the annual average in MNRW phase I, but FY18 outturn is still below the envisaged annual delivery volume of over $5.0 million per year for phase II. ### Activities delivered and outputs in FY18 - Number of TA missions completed (total missions and stand-alone STX visits): 39 - Module 1: 18 - Module 2: 10 - Module 3: 7 - Module 4: n/a (work program backloaded by design) - Module 5: 4 - Number of TA reports produced (total): 13 - Number of conferences/training courses/workshops completed: 11 - Number of people trained (total): 515 - Nearly 40 HQ missions and STX visits were delivered; 11 conferences/training courses/workshops completed with over 515 individuals successfully completing the courses. ### Challenges and next steps - Some projects had delayed starts or struggled to gain traction; budget adjustments and dynamic resource allocation in phase II will address efficiency. - Continued fund-raising efforts are needed to reach the targeted fund size of US$30 million. - Positive cash balance supports further expansion of the project portfolio to meet continued high demand for capacity building. *IMF Managing Natural Resource Wealth Thematic Fund (MNRW-TF) phase II — Executive Summary, FY18.* ### 14. Progress on results are monitored through the CD-PORT project data. ### Monitoring progress and RBM results - Progress on results are monitored through the CD-PORT project data. - Most projects are multi-year activities; initial progress on achieving project outcomes is expected to be limited but to improve over time. - Figure 3 summarizes the average Results-Based Monitoring (RBM) score per project (an average across rated results per project). - For the majority of projects, there has been initial progress; a few projects that have not yet moved fully toward implementation have achieved only modest progress toward meeting the targeted results. - With project implementation of only one year or less, the achievement of key results is still relatively modest. ### Key results, FY18 (Table 6 summary) - Ghana (M1): Progress was made in establishing sound modeling and forecasting processes for the 2018 petroleum benchmark revenue calculation. - Guyana (M1): The authorities are using a petroleum revenue forecasting framework developed under the project to finalize a petroleum revenue management framework and legislation. - Kenya (M2): The authorities have commenced developing risk matrices and compliance strategies for the extractive industries. - Myanmar (M1): An interagency modeling group has been established and foundational skills in petroleum fiscal regime analysis developed; interagency dialogue has facilitated progress in drafting the extractive industries chapter of the new Income Tax Law. - Mongolia (M3): The practice of issuing promissory notes to fund public investment has been stopped and off-budget public investment spending has been brought into the budget. - Mozambique (M1 & M2): An inter-agency modeling team for mining and petroleum has been formed, with some improvements in the underlying data collection as an input for modeling; the recent amendment (Law No. 14/2017) improved the NR fiscal regime in line with FAD recommendations. - Nigeria (M1): Capacity for petroleum fiscal policy analysis and modeling has been strengthened working with an interagency team. - Sierra Leone (M1 & M2): An extractive industries modeling taskforce has been established, and a delineation of responsibilities across ministries and agencies have been established; development of a risk matrix and compliance strategy for the extractive industries has commenced. - Uganda (M1): Progress was made on resolving outstanding taxation issues affecting the development of the upstream and midstream oil sector and on setting up a methodology to determine the pipeline tariff. - Uganda (M2): Development of risk matrices and compliance strategies for the extractive industries has commenced. - Exchange rate regime and macro-prudential policies (M4): An LTX has been hired and preparation of the handbook has commenced. - Capacity for compiling statistics - GO: Government officials and EITI representatives have been trained in applying the resource revenue template at two regional workshops. - Capacity for compiling statistics - RE: Capacity was enhanced on natural resources in national accounts through two regional workshops and four country-specific missions (Lao, Nigeria, Tanzania, and Uganda). - CEMAC project: Capacity was developed at the country-level in Central African Republic and Republic of Congo on developing and operating macro-economic frameworks in the context of resource-rich countries. - FARI analytical project: A strategy has been prepared for further developing the FARI tool and methodology, and pilot applications for fiscal regime analysis, revenue forecasting, and revenue risk assessment prepared for Ghana, Guyana, Nigeria, and Mozambique. ### Training, outreach, and learning activities (FY18) - West Africa Conference: The conference was successfully conducted with about 70 officials from 14 West African countries in a peer-learning environment discussing fiscal management issues for mining and petroleum. - Energy subsidy reform MOOC: - The MOOC offering attracted 267 active participants with 125 completing the course with a 27-percentage point learning gain. - Thirty-five percent of officials were from MNRW-eligible countries. - Training in macroeconomic management in resource-rich countries: - Two face-to-face trainings to about 70 government officials (35 percent and 45 percent from MNRW-eligible countries). - A seven-week online course was developed and launched as a Small Private Online Course (SPOC) with some 600 government officials registered. ### FARI: strategy, role, and planned enhancements (Box 1) - The Fiscal Analysis for Resource Industries (FARI) model provides a framework for extractives fiscal regime policy advice and has generated strong interest from government counterparts, CSOs, and other donors. - FARI has become a core plank of FAD’s technical assistance and training; some IMF area departments teams are integrating the model in their country work. - The model has its own module in the online course on macroeconomic management of natural resources that was launched on April 4, 2018. - An expert workshop in January 2018 developed a draft strategy to develop and use FARI for the next decade. - Strategy elements: - Consolidate FAD’s role as a public model standard setter by making model templates available and reinforcing with more limited engagement in TA to adopt and use the FARI methodology. - Develop separate standardized templates for fiscal regime analysis, revenue forecasting, and revenue risk assessment. - Modernize model architecture and modeling approach, including using dashboards and data tables for a more efficient and user-friendly model structure. - Broadly adhere to public modeling standards to increase user friendliness and facilitate work with a suite of models. - Preserve the integrity of the comprehensive mining and petroleum fiscal regime library with a more efficient data and information management approach. - Emphasize capacity building using the FARI model to strengthen capacity for EI fiscal policy and revenue management as an integrated component of policy advice. - Explore potential for more outreach with other TA providers and users of models including CSOs and donors. ### Strategic objectives and log frame highlights (Appendix B) - Strategic objective: Assist low and lower-middle income countries to derive maximum benefit from their oil, gas and mineral resources. - Impact and outcome indicators include: - Increase in average resource revenues as a share of GDP in MNRW-TF countries. - Average potential government take for a standard resource revenue project in MNRW-TF countries. - A significant majority of participating countries implement reforms to improve management of EI revenues by having medium term expenditure estimates; coverage and comparability of in-year budget reports; budget classification; information on revenue collections; consolidation of cash balances; reporting of contingent liabilities and other fiscal risks. - Effective exchange rate and macroprudential policy outcomes (examples provided for 4 participating countries). - Improved statistics: publication of EI revenue data in line with the IMF template and separate publication of resource and non-resource GDP in line with the IMF’s Statistics Manual and Compilation Guide. - Objective-specific verifiable indicators (selected): - Result 1.1: Target—10 participating countries have amended their fiscal regimes broadly in line with IMF advice. - Result 2.1 and 2.2: Target—8 participating countries with organizational structures and compliance risk frameworks established and operating for the EI sector. - Result 3.1–3.3: Targets—10 participating countries with revised or introduced credible medium-term fiscal frameworks integrated with the budget that include EI revenues, better controls over EI revenues and expenditure commitments and payments, incorporation of EI details in budget classifications and charts of accounts, progressive use of a treasury single account, and comprehensive disclosure and management of contingent liabilities and other fiscal risks. - Result 4.1–4.2: Targets—4 participating countries achieving specified exchange rate flexibility and macroprudential framework establishment and implementation. - Result 5.1–5.2: Targets—Participating countries adopt charts of accounts and budget classifications to complete the EITI summary data template; pilot countries develop capacity for compiling national accounts covering natural resource industries; a workshop with EITI counterparts to support monitoring of the UN’s Sustainable Development Goals, particularly Goal 17. - Result 6.1: Target—3 publications setting out good or best practices and lessons learned. - Result 7.1–7.2: Targets—Number of participants from MNRW eligible countries in online or face-to-face IMF courses and at least one regional/international conference or workshop per year for MNRW eligible countries to exchange views and experiences. *Source: Project progress summaries.* ### Executive Summary ...................................................................................................... ### mnrw2018ar - Executive Summary ### Scope and timing - The report is the first annual report of the Managing Natural Resource Wealth Thematic Fund (MNRW-TF) phase II prepared for the annual meeting of the Steering Committee. - The report covers activities in fiscal year 2018 (FY18) from May 2017 to April 2018. ### Implementation and demand - Project implementation in the first full operational year of phase II was satisfactory with an increase in spending compared to the annual average during phase I. - The higher spending reflects generally solid project implementation across all modules and fund activities and an increased emphasis on cross-country training. - Some projects experienced delayed starts or difficulty establishing traction; adjustments to project budgets are warranted to ensure efficient fund implementation. - Demand for technical assistance and training across all modules and activities remains high; portfolio will be gradually built up across modules to respond. ### Program design and coverage - The MNRW-TF leverages IMF expertise to provide technical assistance and capacity building on managing natural resource wealth in low- and lower-middle income countries. - Implementation partners: Australia, the European Union, the Netherlands, Norway, and Switzerland. - The thematic fund was launched in April 2011; phase II initiated in FY17 with FY18 as the first full operational year of phase II. - Thematic fund structure: five modules plus training, workshops, and research: - Module 1: Extractive industries fiscal regimes (tax policy) - Module 2: Extractive industries revenue administration and risk management - Module 3: Extractive industries macro-fiscal and PFM - Module 4: Exchange rate regimes and macro-prudential policies - Module 5: Statistics for managing natural resources - Country-level activities are concentrated in sub-Saharan Africa with activities in Asia and Latin America. - By end-FY18, 13 beneficiary countries in Africa, Asia-Pacific and the Western Hemisphere were benefitting from MNRW-TF financed assistance. ### Financial status and projections - Confirmed commitments for phase II increased to US$26.6 million following donor agreements with Australia and the European Commission. - A total of US$15.5 million has been disbursed to the thematic fund account. - Compared to the targeted program budget of US$30 million, there is a remaining funding gap of (3,395,978) U.S. dollars. - Two donors (the Netherlands and Switzerland) can roll over residual funds from phase I amounting to US$1.1 million to phase II; Australia is expected to scale up its contribution by AUD1.4 million. - Projected cashflow: currently programmed expenditure through FY2022 of US$17.2 million can be accommodated within expected cumulative cash availability of US$26.6 million. - The cumulative cashflow totals reflect actual spending in FY18 and indicative project budgets for future fiscal years; the table notes the cumulative cashflow total may be slightly understated. ### Program portfolio, budgets, and FY18 spending (by module and activity) - Total endorsed projects across the thematic fund amounted to US$19.1 million as of end-April 2018. - Total expenditure in FY18: US$4.6 million. - Indicative program document budget: US$30,000 (thousands) i.e., US$30,000,000; Total approved budgets as of April 30, 2018: US$19,068 (thousands) i.e., US$19,068,000; Actual expenses as of April 30, 2018: US$4,625 (thousands) i.e., US$4,625,000. - Share and spending details (as reported in thousands of U.S. dollars): - Direct Technical Assistance: Indicative envelope 17,351; Approved budgets 13,808; Actual expenses 2,724; Share of total indicative envelope 58%; Share of total approved budgets 72%; Share of total actual expenses 59%; Actual expenses relative to approved budgets 20%. - Module 1: Fiscal Regimes — Approved budgets 4,476; Actual expenses 1,049; Share of total approved budgets 23%; Actual expenses relative to approved budgets 23%. - Module 2: Revenue Administration — Approved budgets 3,162; Actual expenses 487; Share of total approved budgets 17%; Actual expenses relative to approved budgets 15%. - Module 3: Macro-Fiscal — Approved budgets 1,925; Actual expenses 505; Share of total approved budgets 10%; Actual expenses relative to approved budgets 26%. - Module 4: Exchange Rate and Macroprudential — Approved budgets 1,195; Actual expenses 103; Share of total approved budgets 7%; Actual expenses relative to approved budgets 9%. - Module 5: Statistics — Approved budgets 3,051; Actual expenses 581; Share of total approved budgets 16%; Actual expenses relative to approved budgets 19%. - Scoping Missions — Approved budgets 355; Actual expenses 294; Actual expenses relative to approved budgets 83%. - Research Projects and Analytical Tools — Approved budgets 1,242; Actual expenses 44; Actual expenses relative to approved budgets 4%. - Workshops & Training — Approved budgets 2,891; Actual expenses 1,350; Share of total approved budgets 15%; Actual expenses relative to approved budgets 47%. - Small Projects — Approved budgets 48; Actual expenses 0; Actual expenses relative to approved budgets 0%. - Project Management — Approved budgets 723; Actual expenses 200; Actual expenses relative to approved budgets 28%. - Staff Costs — Approved budgets 629; Actual expenses 200; Actual expenses relative to approved budgets 32%. - Steering Committee — Approved budgets 94; Actual expenses 0. - Independent Evaluation — Approved budgets 98; Actual expenses 0. - Total: Indicative envelope 30,000; Approved budgets 19,068; Actual expenses 4,625; Trust Fund Management Fee: 1,963 (indicative), 1,247 (approved), 303 (actual). - Module-specific project counts and FY18 spending: - Module 1: nine approved country-level projects; total endorsed budget US$4.5 million; FY18 spending just over US$1 million (23 percent of total approved projects). - Module 2: five approved country-level projects; total endorsed budget US$5.0 million; FY18 spending US$0.5 million (15 percent of approved budgets). - Module 3: three approved projects; total budgets US$3.1 million; FY18 spending US$0.5 million (26 percent of approved budgets). - Module 4: one umbrella project; budget US$1.2 million; FY18 spending US$0.1 million (9 percent of total budget). - Module 5: two multi-country projects; total budget US$3.0 million; FY18 spending US$0.6 million (19 percent of approved budgets). - Training projects: three projects; total budget US$2.9 million; FY18 expenditure US$1.3 million (47 percent of approved budgets). - Analytical projects: two projects; total approved budgets US$1.2 million; FY18 expenditure US$0.06 million (4 percent of approved budgets). - Scoping missions: total FY18 spending US$0.3 million. - The pace of spending in FY18 has picked up compared to the annual average in MNRW phase I, but FY18 outturn is still below the envisaged annual delivery volume of over $5.0 million per year for phase II. ### Activities delivered and outputs in FY18 - Number of TA missions completed (total missions and stand-alone STX visits): 39 - Module 1: 18 - Module 2: 10 - Module 3: 7 - Module 4: n/a (work program backloaded by design) - Module 5: 4 - Number of TA reports produced (total): 13 - Number of conferences/training courses/workshops completed: 11 - Number of people trained (total): 515 - Nearly 40 HQ missions and STX visits were delivered; 11 conferences/training courses/workshops completed with over 515 individuals successfully completing the courses. ### Challenges and next steps - Some projects had delayed starts or struggled to gain traction; budget adjustments and dynamic resource allocation in phase II will address efficiency. - Continued fund-raising efforts are needed to reach the targeted fund size of US$30 million. - Positive cash balance supports further expansion of the project portfolio to meet continued high demand for capacity building. *IMF Managing Natural Resource Wealth Thematic Fund (MNRW-TF) phase II — Executive Summary, FY18.* ### 14. Progress on results are monitored through the CD-PORT project data. As most ### mnrw2018ar - 14. Progress on results are monitored through the CD-PORT project data. As most ### Monitoring progress and RBM results - Progress on results are monitored through the CD-PORT project data. - Most projects are multi-year activities; initial progress on achieving project outcomes is expected to be limited but to improve over time. - Figure 3 summarizes the average Results-Based Monitoring (RBM) score per project (an average across rated results per project). - For the majority of projects, there has been initial progress; a few projects that have not yet moved fully toward implementation have achieved only modest progress toward meeting the targeted results. - With project implementation of only one year or less, the achievement of key results is still relatively modest. ### Key results, FY18 (Table 6 summary) - Ghana (M1): Progress was made in establishing sound modeling and forecasting processes for the 2018 petroleum benchmark revenue calculation. - Guyana (M1): The authorities are using a petroleum revenue forecasting framework developed under the project to finalize a petroleum revenue management framework and legislation. - Kenya (M2): The authorities have commenced developing risk matrices and compliance strategies for the extractive industries. - Myanmar (M1): An interagency modeling group has been established and foundational skills in petroleum fiscal regime analysis developed; interagency dialogue has facilitated progress in drafting the extractive industries chapter of the new Income Tax Law. - Mongolia (M3): The practice of issuing promissory notes to fund public investment has been stopped and off-budget public investment spending has been brought into the budget. - Mozambique (M1 & M2): An inter-agency modeling team for mining and petroleum has been formed, with some improvements in the underlying data collection as an input for modeling; the recent amendment (Law No. 14/2017) improved the NR fiscal regime in line with FAD recommendations. - Nigeria (M1): Capacity for petroleum fiscal policy analysis and modeling has been strengthened working with an interagency team. - Sierra Leone (M1 & M2): An extractive industries modeling taskforce has been established, and a delineation of responsibilities across ministries and agencies have been established; development of a risk matrix and compliance strategy for the extractive industries has commenced. - Uganda (M1): Progress was made on resolving outstanding taxation issues affecting the development of the upstream and midstream oil sector and on setting up a methodology to determine the pipeline tariff. - Uganda (M2): Development of risk matrices and compliance strategies for the extractive industries has commenced. - Exchange rate regime and macro-prudential policies (M4): An LTX has been hired and preparation of the handbook has commenced. - Capacity for compiling statistics - GO: Government officials and EITI representatives have been trained in applying the resource revenue template at two regional workshops. - Capacity for compiling statistics - RE: Capacity was enhanced on natural resources in national accounts through two regional workshops and four country-specific missions (Lao, Nigeria, Tanzania, and Uganda). - CEMAC project: Capacity was developed at the country-level in Central African Republic and Republic of Congo on developing and operating macro-economic frameworks in the context of resource-rich countries. - FARI analytical project: A strategy has been prepared for further developing the FARI tool and methodology, and pilot applications for fiscal regime analysis, revenue forecasting, and revenue risk assessment prepared for Ghana, Guyana, Nigeria, and Mozambique. ### Training, outreach, and learning activities (FY18) - West Africa Conference: The conference was successfully conducted with about 70 officials from 14 West African countries in a peer-learning environment discussing fiscal management issues for mining and petroleum. - Energy subsidy reform MOOC: - The MOOC offering attracted 267 active participants with 125 completing the course with a 27-percentage point learning gain. - Thirty-five percent of officials were from MNRW-eligible countries. - Training in macroeconomic management in resource-rich countries: - Two face-to-face trainings to about 70 government officials (35 percent and 45 percent from MNRW-eligible countries). - A seven-week online course was developed and launched as a Small Private Online Course (SPOC) with some 600 government officials registered. ### FARI: strategy, role, and planned enhancements (Box 1) - The Fiscal Analysis for Resource Industries (FARI) model provides a framework for extractives fiscal regime policy advice and has generated strong interest from government counterparts, CSOs, and other donors. - FARI has become a core plank of FAD’s technical assistance and training; some IMF area departments teams are integrating the model in their country work. - The model has its own module in the online course on macroeconomic management of natural resources that was launched on April 4, 2018. - An expert workshop in January 2018 developed a draft strategy to develop and use FARI for the next decade. - Strategy elements: - Consolidate FAD’s role as a public model standard setter by making model templates available and reinforcing with more limited engagement in TA to adopt and use the FARI methodology. - Develop separate standardized templates for fiscal regime analysis, revenue forecasting, and revenue risk assessment. - Modernize model architecture and modeling approach, including using dashboards and data tables for a more efficient and user-friendly model structure. - Broadly adhere to public modeling standards to increase user friendliness and facilitate work with a suite of models. - Preserve the integrity of the comprehensive mining and petroleum fiscal regime library with a more efficient data and information management approach. - Emphasize capacity building using the FARI model to strengthen capacity for EI fiscal policy and revenue management as an integrated component of policy advice. - Explore potential for more outreach with other TA providers and users of models including CSOs and donors. ### Strategic objectives and log frame highlights (Appendix B) - Strategic objective: Assist low and lower-middle income countries to derive maximum benefit from their oil, gas and mineral resources. - Impact and outcome indicators include: - Increase in average resource revenues as a share of GDP in MNRW-TF countries. - Average potential government take for a standard resource revenue project in MNRW-TF countries. - A significant majority of participating countries implement reforms to improve management of EI revenues by having medium term expenditure estimates; coverage and comparability of in-year budget reports; budget classification; information on revenue collections; consolidation of cash balances; reporting of contingent liabilities and other fiscal risks. - Effective exchange rate and macroprudential policy outcomes (examples provided for 4 participating countries). - Improved statistics: publication of EI revenue data in line with the IMF template and separate publication of resource and non-resource GDP in line with the IMF’s Statistics Manual and Compilation Guide. - Objective-specific verifiable indicators (selected): - Result 1.1: Target—10 participating countries have amended their fiscal regimes broadly in line with IMF advice. - Result 2.1 and 2.2: Target—8 participating countries with organizational structures and compliance risk frameworks established and operating for the EI sector. - Result 3.1–3.3: Targets—10 participating countries with revised or introduced credible medium-term fiscal frameworks integrated with the budget that include EI revenues, better controls over EI revenues and expenditure commitments and payments, incorporation of EI details in budget classifications and charts of accounts, progressive use of a treasury single account, and comprehensive disclosure and management of contingent liabilities and other fiscal risks. - Result 4.1–4.2: Targets—4 participating countries achieving specified exchange rate flexibility and macroprudential framework establishment and implementation. - Result 5.1–5.2: Targets—Participating countries adopt charts of accounts and budget classifications to complete the EITI summary data template; pilot countries develop capacity for compiling national accounts covering natural resource industries; a workshop with EITI counterparts to support monitoring of the UN’s Sustainable Development Goals, particularly Goal 17. - Result 6.1: Target—3 publications setting out good or best practices and lessons learned. - Result 7.1–7.2: Targets—Number of participants from MNRW eligible countries in online or face-to-face IMF courses and at least one regional/international conference or workshop per year for MNRW eligible countries to exchange views and experiences. --- _Source: https://www.imf.org/-/media/files/capacity-developement/mnrw/mnrw2018ar.pdf_