## ASSISTING RESOURCE RICH COUNTRIES MOBILISE AND MANAGE THEIR REVENUES

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---

### Overview of the Managing Natural Resource Wealth Trust Fund (MNRW-TF)
- The Managing Natural Resource Wealth Trust Fund (MNRW-TF) is a multi-partner trust fund established in 2011 by the International Monetary Fund (IMF) in partnership with donor agencies to help countries manage natural resource wealth.
- Overarching objective: build economic policy and administrative capacities among resource rich, low-income countries to enable them to derive the maximum benefit from oil, gas and mineral resources, boost economic development and alleviate poverty.
- Rationale: many resource-rich developing countries fail to realize the full development potential of their natural resources, especially where extractive industries (oil, gas and minerals) are significant.
- Phase 1 (concluding April 2017) achievements:
  - Over 40 projects launched in over 20 countries.
  - Supported policy-based analytical work and regional peer learning events.
  - Assisted countries to: improve fiscal regimes for extractive industries (EI); expand government capacity to administer and oversee EI revenues; enhance public financial management (PFM); improve governance of sovereign wealth funds (SWFs); and enhance reporting of natural resource revenues to national accounts.
- Phase 2 (being launched) focus and changes:
  - Principal focus remains technical assistance (TA) with expanded scope to include international tax policy issues and energy subsidy reform.
  - Greater emphasis on “intensive” TA delivery, including installation of resident advisors to assist EI fiscal regime reform.
  - Increased focus on horizontal learning and face-to-face and on-line training to maximize absorption and sustainability of capacity building.
  - Maintains a modular TA approach covering: extractive industry fiscal regime design; EI revenue administration; EI macro-fiscal policies and public financial management; statistics for natural resources.
  - New Phase 2 scope includes help with the design and implementation of appropriate exchange rate policies and addressing macro-prudential challenges from exposure to global commodity price shocks (Phase 2 will not assist with asset and liability management).

### Key activities and cross-cutting achievements
- Policy and legal reform assistance (e.g., mining codes, petroleum laws, fiscal responsibility laws).
- Capacity building in revenue forecasting, fiscal modeling, tax administration, audits, transfer pricing, and valuation/modeling of mining projects.
- Improvements to public financial management, medium-term fiscal frameworks, medium-term budgeting, and budget comprehensiveness.
- Support for sovereign wealth fund governance and investment policy design.
- Establishment and strengthening of specialized institutional units (e.g., Natural Resources Tax Units, Natural Resources Tax Policy and Administration Division, Large Taxpayer Office mining specialization).

### Country-level technical assistance highlights and fact-sheet figures
- Democratic Republic of Congo — Technical assistance focus and outcomes:
  - Proposed significant changes to the Mining Code.
  - Modeled mining projects and integrated them in the revenue forecasting tool.
  - Built transfer pricing capacity.
  - Streamlined EI tax administration in the LTO and MTO.
  - Built EI audit capacity.
  - Implemented processing of tax payments through banks and developed E–filing procedures.
  - Improved medium-term fiscal strategy and frameworks; improved budget comprehensiveness and facilitated adoption of a consolidated state budget.
  - Work remains to strengthen capacities and have the mining code enacted into law.
  - Project timeline: 2012, project start; 2014, Budget comprehensiveness improved.
  - FACT SHEET 2015 (Source: April 2016 World Economic Outlook & Article IV reports):
    - Population (millions): 475.92
    - GDP (US$ Billions): 18.8
    - Debt level (% of GDP): 16.1
    - GDP per capita (US$): 10.4
    - General Government revenue (% of GDP): 3.8
    - Tax to GDP (%): 1.9
    - Resource revenues share of total tax (%): 38.9
    - Resource revenue to GDP (%): 81.7
    - Extractives: Oil and Minerals
    - 2011: 41.1

- Ghana — Technical assistance focus and outcomes:
  - Undertook reforms in mining and petroleum fiscal regimes.
  - Enacted a revised Petroleum Revenue Management Act (PRMA) legal framework.
  - Commenced capacity building in revenue forecasting for the natural resources sector.
  - Commenced capacity building with Ghana Revenue Authority in risk identification and assessment for the natural resources sector.
  - Project timeline: 2014, project starts; 2015 Revenue forecasting capacity building; 2015, PRMA Act revised.
  - FACT SHEET 2015 (Source: April 2016 World Economic Outlook & Article IV reports):
    - Population (millions): 1,340.42
    - GDP (US$ Billions): 73.3
    - Debt level (% of GDP): 19.3
    - GDP per capita (US$): 17.7
    - General Government revenue (% of GDP): 0.9
    - Tax to GDP (%): -5.0
    - Resource revenues share of total tax (%): 36.04
    - Resource revenue to GDP (%): 26.9
    - Fiscal Balance (% of GDP): 5.3
    - Extractives: Oil, Gas, Minerals

- Republic of Guinea — Technical assistance focus and outcomes:
  - Revised mining code and related fiscal regulations and Model Agreement.
  - Introduced transfer pricing measures and capital gains taxation on transfers of mining assets.
  - Modeled a number of mining projects and built capacity for fiscal forecasting and budgeting strategy for mining revenues.
  - Introduced fiscal governance and transparency framework for parastatals and entities involved in natural resources.
  - Implemented a mining sector VAT refund system.
  - Project timeline: 2012, project starts; 2014, Mining code revised.
  - FACT SHEET 2015 (Source: April 2016 World Economic Outlook & Article IV reports):
    - Population (millions): 542.42
    - GDP (US$ Billions): 48.4
    - Debt level (% of GDP): 19.4
    - GDP per capita (US$): 22.9
    - General Government revenue (% of GDP): 6.7
    - Tax to GDP (%): -9.0
    - Resource revenues share of total tax (%): 6.7
    - Resource revenue to GDP (%): 12.3
    - Fiscal Balance (% of GDP): 30
    - Extractives: Minerals

- Kenya — Technical assistance focus and outcomes:
  - Developed a new model Production Sharing Contract (PSC).
  - Prepared new Petroleum Exploration and Production and Energy Bills.
  - Revised sections of the income tax law relevant for extractive industries and prepared a draft Mining Bill.
  - Drafted a Sovereign Wealth Fund Bill and benefited from cross-country experience on forecasting tools and fiscal rules on SWFs.
  - Project timeline: 2013, Project start; 2015, Revised Income tax law and prepared new model PSC.
  - FACT SHEET 2015 (Source: April 2016 World Economic Outlook & Article IV reports):
    - Population (millions): 1,388.45
    - GDP (US$ Billions): 52.7
    - Debt level (% of GDP): 20.2
    - GDP per capita (US$): 17.6
    - General Government revenue (% of GDP): Not available
    - Tax to GDP (%): -8.4
    - Resource revenues share of total tax (%): 61.4
    - Resource revenue to GDP (%): 44.2
    - Fiscal Balance (% of GDP): Not available
    - Extractives: Oil, Gas, Minerals

- Madagascar — Technical assistance focus and outcomes:
  - Strengthened Public Financial Management to ensure effective allocation of fiscal resources, including from natural resources, and promote accountability.
  - Prepared a Medium-Term Fiscal Framework (MTEF) and developed a medium-term budget; improved classification of revenues from natural resources and institutional capacity.
  - Improved communication and information sharing between administrations.
  - Project timeline: 2014, project starts; 2015, MTEF 2016-18 developed.
  - FACT SHEET 2015 (Source: April 2016 World Economic Outlook & Article IV reports):
    - Population (millions): 401.77
    - GDP (US$ Billions): 35.6
    - Debt level (% of GDP): 11.8
    - GDP per capita (US$): 11.5
    - General Government revenue (% of GDP): Not available
    - Tax to GDP (%): -3.7
    - Resource revenues share of total tax (%): 9.7
    - Resource revenue to GDP (%): 24.2
    - Fiscal Balance (% of GDP): Not available
    - Extractives: Oil, Gas, Minerals

- Mozambique — Technical assistance focus and outcomes:
  - Delivered TA to review and reform fiscal regime for mining and petroleum; built capacity of officials and institutions.
  - Key achievements: by-laws for new EI legislation implemented in 2015; establishment of a Natural Resources Tax Policy and Administration Division in the Mozambique Revenue Authority in 2015; staff training in use of project financial models (FARI) for revenue forecasting and risk assessment.
  - Project timeline: 2012, project start; 2014: 26.5; 2015, Natural Resources Tax Policy and Administration Division set up.
  - FACT SHEET 2015 (Source: April 2016 World Economic Outlook & Article IV reports):
    - Population (millions): 534.88
    - GDP (US$ Billions): 74.8
    - Debt level (% of GDP): 29.4
    - GDP per capita (US$): 21.5
    - General Government revenue (% of GDP): 6.3
    - Tax to GDP (%): -6.0
    - Resource revenues share of total tax (%): 15
    - Resource revenue to GDP (%): 28
    - Fiscal Balance (% of GDP): 2014 (listed as) 26.5
    - Extractives: Gas and Minerals

- Lao PDR — Technical assistance focus and outcomes:
  - Strengthened Laos Tax Department capacity in administration of natural resources taxes by establishing a Natural Resources Tax Unit and building specialized NR tax administration capacity.
  - Delivered a compliance plan and a large taxpayer audit manual; capacity building and training in mining taxation, mining accounting and auditing, and mining industry processes; improved information collection for risk reviews and audit preparations.
  - Project timeline: 2011, project starts; Specialized NR unit set up; since September 2012 delivered key results.
  - FACT SHEET 2015 (Source: April 2016 World Economic Outlook & Article IV reports):
    - Population (millions): 1,778.71
    - GDP (US$ Billions): 64.3
    - Debt level (% of GDP): 23.3
    - GDP per capita (US$): 15.9
    - General Government revenue (% of GDP): 1.6
    - Tax to GDP (%): XX
    - Resource revenues share of total tax (%): -2.9
    - Resource revenue to GDP (%): 12.5
    - Fiscal Balance (% of GDP): 7.02
    - Extractives: Minerals and Hydropower

- Mongolia — Technical assistance focus and outcomes:
  - Enacted a new Petroleum Law and a sovereign wealth fund law; renegotiated Double Tax Treaties.
  - Built mining revenue estimation capacity; capacity in taxation of foreign interests in mining assets; LTO mining specialization capacity established in 2013.
  - Formulated compliance strategy; strengthened mining sector tax audit capacity; implemented taxpayer services guidance; improved inter-agency information exchange.
  - Developed Medium Term Fiscal Framework with focus on fiscal risks and cash flow forecasting models to manage revenue volatility.
  - Project timeline: 2012, project starts; 2013, LTO Mining specialized capacity established.
  - FACT SHEET 2015 (Source: April 2016 World Economic Outlook & Article IV reports):
    - Population (millions): 3,951.91
    - GDP (US$ Billions): 25.6
    - Gross Debt level (% of GDP): 21.8
    - GDP per capita (US$): 4.7
    - General Government revenue (% of GDP): XX
    - Tax to GDP (%): -8.3
    - Resource revenues share of total tax (%): 11.7
    - Resource revenue to GDP (%): 3
    - Fiscal Balance (% of GDP): Not available
    - Extractives: Minerals

- Timor-Leste — Technical assistance focus and outcomes:
  - Focused on Estimated Sustainable Income (ESI) calculation, analysis of fiscal regimes for future petroleum development, and macro-fiscal modeling; only the ESI component remained active throughout the project.
  - Delivered capacity to undertake and manage the ESI calculation; reformed the Petroleum Fund investment policy; trained authorities in investment management of the Petroleum Fund.
  - Project timeline: 2011, project starts; 2014; 2015, ESI calculation successfully completed.
  - FACT SHEET 2015 (Source: April 2016 World Economic Outlook & Article IV reports):
    - Population (millions): 2,244.31
    - GDP (US$ Billions): 55.4
    - Gross Debt level (% of GDP): 2.9
    - GDP per capita (US$): 36.4
    - General Government revenue (% of GDP): 4.2
    - Tax to GDP (%): 2.6
    - Resource revenues share of total tax (%): XX
    - Resource revenue to GDP (%): 1.2
    - Fiscal Balance (% of GDP): Not available
    - Extractives: Oil

- Mauritania — Technical assistance focus and outcomes:
  - Introduced a withholding tax at 15 percent in 2013 to limit profit shifting through subsidiaries; revenue raised from this tax in 2013 was 0.33 percent of GDP.
  - Revised the Mining Code adopted in March 2014, incorporating a standard VAT charge on mining firms and eliminating VAT exemptions.
  - Introduced rules on the arm’s length principle, thin capitalization rule, and taxation of capital gains from indirect transfer of mining licenses.
  - Provided a forecasting model for resource revenue to authorities.
  - Project timeline: 2011, project start; 2013, WHT introduced; 2014, completed; 2014, Mining Tax code revised.
  - FACT SHEET 2015 (Source: April 2016 World Economic Outlook & Article IV reports):
    - Population (millions): 1,282.33
    - GDP (US$ Billions): XX
    - Debt level (% of GDP): 29.9
    - GDP per capita (US$): 19
    - General Government revenue (% of GDP): 5.6
    - Tax to GDP (%): -3.5
    - Resource revenues share of total tax (%): 4.8
    - Resource revenue to GDP (%): 3.7
    - Fiscal Balance (% of GDP): 17.9
    - Extractives: Oil and Minerals

- Peru — Technical assistance focus and outcomes:
  - Supported SWF governance and development of macro-fiscal functions at the Ministry of Economy and Finance to secure prerequisites for sustainable management of natural resources and operation of a SWF.
  - Improved macro-fiscal framework and strengthened fiscal transparency; enacted a Fiscal Responsibility Law in 2013 that came into force in January 2015.
  - Remaining challenge: sharing of natural resources revenues with subnational governments; plans to address in the second phase of the TF.
  - Project timeline: 2012, project start; 2015, Fiscal Responsibility Law came into force.
  - FACT SHEET 2015 (Source: April 2016 World Economic Outlook & Article IV reports):
    - Population (millions): 6,021.10
    - GDP (US$ Billions): 23.1
    - Debt level (% of GDP): 20.3
    - GDP per capita (US$): 15.9
    - General Government revenue (% of GDP): 1.3
    - Tax to GDP (%): -2.2
    - Resource revenues share of total tax (%): 192.1
    - Resource revenue to GDP (%): 31.9
    - Fiscal Balance (% of GDP): XX
    - Extractives: Oil, Gas and Minerals

### Workshops & seminars
- The MNRW-TF designs and delivers workshops and seminars aimed at transferring knowledge and practical skills to participating countries.
- Workshops and seminars provide platforms for countries to share experiences and for horizontal peer learning.

### Conferences and capacity building
- The MNRW-TF financed four regional conferences on EI fiscal issues held in East Africa, Asia-Pacific region, and the Andean region (2 conferences).
  - Each of those regional conferences had between 60 and 90 participants.
- A conference was held in Washington DC to discuss international issues for the EI sector; the papers from that conference were used as a basis for a book on International Taxation and the Extractives Industries to be released in 2016.
- The MNRW-TF financed two additional conferences in West Africa and Washington DC on the challenges of revenue administration for an EI tax base, with between 25 and 45 participants at each conference.
- Conference formats featured technical presentations, practical exercises, and interactive discussions between FAD staff, an international expert, and country representatives.
- Outcomes from the conferences included sharing of current best practices and the emergence of an inter-governmental collaborative approach to mitigate risks of erosion of an EI tax base.

### Research, analytical outputs, and tools
- The MNRW-TF supported IMF research and analytical work to identify good or best practice approaches and distill lessons for natural resource wealth management and revenue mobilization.
- Deliverables from the first phase included:
  - The Fiscal Analysis of Resource Industries (FARI) methodology and model.
  - Natural resources user guides and technical notes.
  - Several publications.
- Significant specific outputs:
  - The release of two handbooks: Administering Fiscal Regimes for Extractive Industries: A Handbook (recently translated into French and Spanish); and Sovereign Asset-Liability Management Guidance for Resource-rich Countries.
  - The publication of a book on International Taxation and the Extractive Industries.
  - Public release of a stylized version of the IMF’s FARI model, together with an accompanying Technical Notes and Manual. The FARI model is a modeling framework developed to perform EI fiscal analysis, and can be used for assisting in the design of EI fiscal regimes, revenue forecasting, and revenue administration.
  - Development of a template for collecting data on government revenues from natural resources which has been field-tested in several countries.
  - The EITI announced it will collaborate with the IMF in using the template to improve transparency.
  - Release online of a draft guide on specific compilation issues for natural resources in macroeconomic statistics.

### Coordination and partnerships
- Other technical assistance providers that MNRW coordinates with include:
  - Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ)
  - Extractives Industries Transparency Initiative
  - Natural Resources Governance Institute
  - The UK Department for International Development (DFID)
  - The World Bank

### Implementation and supporting agencies
- Implemented by: THE FISCAL AFFAIRS DEPARTMENT.
- Participating donor agencies listed include: EUROPEAN UNION; SWITZERLAND; AUSTRALIA; NETHERLANDS; NORWAY; OMAN; Norway; Switzerland; Canada; Japan; Kuwait; Qatar; Saudi Arabia; United Kingdom; Luxembourg; The Netherlands; Korea; France; KUWAIT.

*International Monetary Fund — Managing Natural Resource Wealth Trust Fund (MNRW-TF), September 2016.*

### Section 1

### ASSISTING RESOURCE RICH COUNTRIES MOBILISE AND MANAGE THEIR REVENUES

### Overview of the Managing Natural Resource Wealth Trust Fund (MNRW-TF)
- The Managing Natural Resource Wealth Trust Fund (MNRW-TF) is a multi-partner trust fund established in 2011 by the International Monetary Fund (IMF) in partnership with donor agencies to help countries manage natural resource wealth.
- Overarching objective: build economic policy and administrative capacities among resource rich, low-income countries to enable them to derive the maximum benefit from oil, gas and mineral resources, boost economic development and alleviate poverty.
- Rationale: many resource-rich developing countries fail to realize the full development potential of their natural resources, especially where extractive industries (oil, gas and minerals) are significant.
- Phase 1 (concluding April 2017) achievements:
  - Over 40 projects launched in over 20 countries.
  - Supported policy-based analytical work and regional peer learning events.
  - Assisted countries to: improve fiscal regimes for extractive industries (EI); expand government capacity to administer and oversee EI revenues; enhance public financial management (PFM); improve governance of sovereign wealth funds (SWFs); and enhance reporting of natural resource revenues to national accounts.
- Phase 2 (being launched) focus and changes:
  - Principal focus remains technical assistance (TA) with expanded scope to include international tax policy issues and energy subsidy reform.
  - Greater emphasis on “intensive” TA delivery, including installation of resident advisors to assist EI fiscal regime reform.
  - Increased focus on horizontal learning and face-to-face and on-line training to maximize absorption and sustainability of capacity building.
  - Maintains a modular TA approach covering: extractive industry fiscal regime design; EI revenue administration; EI macro-fiscal policies and public financial management; statistics for natural resources.
  - New Phase 2 scope includes help with the design and implementation of appropriate exchange rate policies and addressing macro-prudential challenges from exposure to global commodity price shocks (Phase 2 will not assist with asset and liability management).

### Key activities and cross-cutting achievements
- Policy and legal reform assistance (e.g., mining codes, petroleum laws, fiscal responsibility laws).
- Capacity building in revenue forecasting, fiscal modeling, tax administration, audits, transfer pricing, and valuation/modeling of mining projects.
- Improvements to public financial management, medium-term fiscal frameworks, medium-term budgeting, and budget comprehensiveness.
- Support for sovereign wealth fund governance and investment policy design.
- Establishment and strengthening of specialized institutional units (e.g., Natural Resources Tax Units, Natural Resources Tax Policy and Administration Division, Large Taxpayer Office mining specialization).

### Country-level technical assistance highlights and fact-sheet figures

- Democratic Republic of Congo — Technical assistance focus and outcomes:
  - Proposed significant changes to the Mining Code.
  - Modeled mining projects and integrated them in the revenue forecasting tool.
  - Built transfer pricing capacity.
  - Streamlined EI tax administration in the LTO and MTO.
  - Built EI audit capacity.
  - Implemented processing of tax payments through banks and developed E–filing procedures.
  - Improved medium-term fiscal strategy and frameworks; improved budget comprehensiveness and facilitated adoption of a consolidated state budget.
  - Work remains to strengthen capacities and have the mining code enacted into law.
  - Project timeline: 2012, project start; 2014, Budget comprehensiveness improved.
  - FACT SHEET 2015 (Source: April 2016 World Economic Outlook & Article IV reports):
    - Population (millions): 475.92
    - GDP (US$ Billions): 18.8
    - Debt level (% of GDP): 16.1
    - GDP per capita (US$): 10.4
    - General Government revenue (% of GDP): 3.8
    - Tax to GDP (%): 1.9
    - Resource revenues share of total tax (%): 38.9
    - Resource revenue to GDP (%): 81.7
    - Extractives: Oil and Minerals
    - 2011: 41.1 (contextual year listing)

- Ghana — Technical assistance focus and outcomes:
  - Undertook reforms in mining and petroleum fiscal regimes.
  - Enacted a revised Petroleum Revenue Management Act (PRMA) legal framework.
  - Commenced capacity building in revenue forecasting for the natural resources sector.
  - Commenced capacity building with Ghana Revenue Authority in risk identification and assessment for the natural resources sector.
  - Project timeline: 2014, project starts; 2015 Revenue forecasting capacity building; 2015, PRMA Act revised.
  - FACT SHEET 2015 (Source: April 2016 World Economic Outlook & Article IV reports):
    - Population (millions): 1,340.42
    - GDP (US$ Billions): 73.3
    - Debt level (% of GDP): 19.3
    - GDP per capita (US$): 17.7
    - General Government revenue (% of GDP): 0.9
    - Tax to GDP (%): -5.0
    - Resource revenues share of total tax (%): 36.04
    - Resource revenue to GDP (%): 26.9
    - Fiscal Balance (% of GDP): 5.3
    - Extractives: Oil, Gas, Minerals

- Republic of Guinea — Technical assistance focus and outcomes:
  - Revised mining code and related fiscal regulations and Model Agreement.
  - Introduced transfer pricing measures and capital gains taxation on transfers of mining assets.
  - Modeled a number of mining projects and built capacity for fiscal forecasting and budgeting strategy for mining revenues.
  - Introduced fiscal governance and transparency framework for parastatals and entities involved in natural resources.
  - Implemented a mining sector VAT refund system.
  - Project timeline: 2012, project starts; 2014, Mining code revised.
  - FACT SHEET 2015 (Source: April 2016 World Economic Outlook & Article IV reports):
    - Population (millions): 542.42
    - GDP (US$ Billions): 48.4
    - Debt level (% of GDP): 19.4
    - GDP per capita (US$): 22.9
    - General Government revenue (% of GDP): 6.7
    - Tax to GDP (%): -9.0
    - Resource revenues share of total tax (%): 6.7
    - Resource revenue to GDP (%): 12.3
    - Fiscal Balance (% of GDP): 30
    - Extractives: Minerals

- Kenya — Technical assistance focus and outcomes:
  - Developed a new model Production Sharing Contract (PSC).
  - Prepared new Petroleum Exploration and Production and Energy Bills.
  - Revised sections of the income tax law relevant for extractive industries and prepared a draft Mining Bill.
  - Drafted a Sovereign Wealth Fund Bill and benefited from cross-country experience on forecasting tools and fiscal rules on SWFs.
  - Project timeline: 2013, Project start; 2015, Revised Income tax law and prepared new model PSC.
  - FACT SHEET 2015 (Source: April 2016 World Economic Outlook & Article IV reports):
    - Population (millions): 1,388.45
    - GDP (US$ Billions): 52.7
    - Debt level (% of GDP): 20.2
    - GDP per capita (US$): 17.6
    - General Government revenue (% of GDP): Not available
    - Tax to GDP (%): -8.4
    - Resource revenues share of total tax (%): 61.4
    - Resource revenue to GDP (%): 44.2
    - Fiscal Balance (% of GDP): Not available
    - Extractives: Oil, Gas, Minerals

- Madagascar — Technical assistance focus and outcomes:
  - Strengthened Public Financial Management to ensure effective allocation of fiscal resources, including from natural resources, and promote accountability.
  - Prepared a Medium-Term Fiscal Framework (MTEF) and developed a medium-term budget; improved classification of revenues from natural resources and institutional capacity.
  - Improved communication and information sharing between administrations.
  - Project timeline: 2014, project starts; 2015, MTEF 2016-18 developed.
  - FACT SHEET 2015 (Source: April 2016 World Economic Outlook & Article IV reports):
    - Population (millions): 401.77
    - GDP (US$ Billions): 35.6
    - Debt level (% of GDP): 11.8
    - GDP per capita (US$): 11.5
    - General Government revenue (% of GDP): Not available
    - Tax to GDP (%): -3.7
    - Resource revenues share of total tax (%): 9.7
    - Resource revenue to GDP (%): 24.2
    - Fiscal Balance (% of GDP): Not available
    - Extractives: Oil, Gas, Minerals

- Mozambique — Technical assistance focus and outcomes:
  - Delivered TA to review and reform fiscal regime for mining and petroleum; built capacity of officials and institutions.
  - Key achievements: by-laws for new EI legislation implemented in 2015; establishment of a Natural Resources Tax Policy and Administration Division in the Mozambique Revenue Authority in 2015; staff training in use of project financial models (FARI) for revenue forecasting and risk assessment.
  - Project timeline: 2012, project start; 2014: 26.5 (contextual listing); 2015, Natural Resources Tax Policy and Administration Division set up.
  - FACT SHEET 2015 (Source: April 2016 World Economic Outlook & Article IV reports):
    - Population (millions): 534.88
    - GDP (US$ Billions): 74.8
    - Debt level (% of GDP): 29.4
    - GDP per capita (US$): 21.5
    - General Government revenue (% of GDP): 6.3
    - Tax to GDP (%): -6.0
    - Resource revenues share of total tax (%): 15
    - Resource revenue to GDP (%): 28
    - Fiscal Balance (% of GDP): 2014 (listed as) 26.5
    - Extractives: Gas and Minerals

- Lao PDR — Technical assistance focus and outcomes:
  - Strengthened Laos Tax Department capacity in administration of natural resources taxes by establishing a Natural Resources Tax Unit and building specialized NR tax administration capacity.
  - Delivered a compliance plan and a large taxpayer audit manual; capacity building and training in mining taxation, mining accounting and auditing, and mining industry processes; improved information collection for risk reviews and audit preparations.
  - Project timeline: 2011, project starts; Specialized NR unit set up; since September 2012 delivered key results.
  - FACT SHEET 2015 (Source: April 2016 World Economic Outlook & Article IV reports):
    - Population (millions): 1,778.71
    - GDP (US$ Billions): 64.3
    - Debt level (% of GDP): 23.3
    - GDP per capita (US$): 15.9
    - General Government revenue (% of GDP): 1.6
    - Tax to GDP (%): XX
    - Resource revenues share of total tax (%): -2.9
    - Resource revenue to GDP (%): 12.5
    - Fiscal Balance (% of GDP): 7.02
    - Extractives: Minerals and Hydropower

- Mongolia — Technical assistance focus and outcomes:
  - Enacted a new Petroleum Law and a sovereign wealth fund law; renegotiated Double Tax Treaties.
  - Built mining revenue estimation capacity; capacity in taxation of foreign interests in mining assets; LTO mining specialization capacity established in 2013.
  - Formulated compliance strategy; strengthened mining sector tax audit capacity; implemented taxpayer services guidance; improved inter-agency information exchange.
  - Developed Medium Term Fiscal Framework with focus on fiscal risks and cash flow forecasting models to manage revenue volatility.
  - Project timeline: 2012, project starts; 2013, LTO Mining specialized capacity established.
  - FACT SHEET 2015 (Source: April 2016 World Economic Outlook & Article IV reports):
    - Population (millions): 3,951.91
    - GDP (US$ Billions): 25.6
    - Gross Debt level (% of GDP): 21.8
    - GDP per capita (US$): 4.7
    - General Government revenue (% of GDP): XX
    - Tax to GDP (%): -8.3
    - Resource revenues share of total tax (%): 11.7
    - Resource revenue to GDP (%): 3
    - Fiscal Balance (% of GDP): Not available
    - Extractives: Minerals

- Timor-Leste — Technical assistance focus and outcomes:
  - Focused on Estimated Sustainable Income (ESI) calculation, analysis of fiscal regimes for future petroleum development, and macro-fiscal modeling; only the ESI component remained active throughout the project.
  - Delivered capacity to undertake and manage the ESI calculation; reformed the Petroleum Fund investment policy; trained authorities in investment management of the Petroleum Fund.
  - Project timeline: 2011, project starts; 2014; 2015, ESI calculation successfully completed.
  - FACT SHEET 2015 (Source: April 2016 World Economic Outlook & Article IV reports):
    - Population (millions): 2,244.31
    - GDP (US$ Billions): 55.4
    - Gross Debt level (% of GDP): 2.9
    - GDP per capita (US$): 36.4
    - General Government revenue (% of GDP): 4.2
    - Tax to GDP (%): 2.6
    - Resource revenues share of total tax (%): XX
    - Resource revenue to GDP (%): 1.2
    - Fiscal Balance (% of GDP): Not available
    - Extractives: Oil

- Mauritania — Technical assistance focus and outcomes:
  - Introduced a withholding tax at 15 percent in 2013 to limit profit shifting through subsidiaries; revenue raised from this tax in 2013 was 0.33 percent of GDP.
  - Revised the Mining Code adopted in March 2014, incorporating a standard VAT charge on mining firms and eliminating VAT exemptions.
  - Introduced rules on the arm’s length principle, thin capitalization rule, and taxation of capital gains from indirect transfer of mining licenses.
  - Provided a forecasting model for resource revenue to authorities.
  - Project timeline: 2011, project start; 2013, WHT introduced; 2014, completed; 2014, Mining Tax code revised.
  - FACT SHEET 2015 (Source: April 2016 World Economic Outlook & Article IV reports):
    - Population (millions): 1,282.33
    - GDP (US$ Billions): XX
    - Debt level (% of GDP): 29.9
    - GDP per capita (US$): 19
    - General Government revenue (% of GDP): 5.6
    - Tax to GDP (%): -3.5
    - Resource revenues share of total tax (%): 4.8
    - Resource revenue to GDP (%): 3.7
    - Fiscal Balance (% of GDP): 17.9
    - Extractives: Oil and Minerals

- Peru — Technical assistance focus and outcomes:
  - Supported SWF governance and development of macro-fiscal functions at the Ministry of Economy and Finance to secure prerequisites for sustainable management of natural resources and operation of a SWF.
  - Improved macro-fiscal framework and strengthened fiscal transparency; enacted a Fiscal Responsibility Law in 2013 that came into force in January 2015.
  - Remaining challenge: sharing of natural resources revenues with subnational governments; plans to address in the second phase of the TF.
  - Project timeline: 2012, project start; 2015, Fiscal Responsibility Law came into force.
  - FACT SHEET 2015 (Source: April 2016 World Economic Outlook & Article IV reports):
    - Population (millions): 6,021.10
    - GDP (US$ Billions): 23.1
    - Debt level (% of GDP): 20.3
    - GDP per capita (US$): 15.9
    - General Government revenue (% of GDP): 1.3
    - Tax to GDP (%): -2.2
    - Resource revenues share of total tax (%): 192.1
    - Resource revenue to GDP (%): 31.9
    - Fiscal Balance (% of GDP): XX
    - Extractives: Oil, Gas and Minerals

### Workshops & seminars
- The MNRW-TF designs and delivers workshops and seminars aimed at transferring knowledge and practical skills to participating countries.
- Workshops and seminars provide platforms for countries to share experiences and for horizontal peer learning.

*International Monetary Fund — Managing Natural Resource Wealth Trust Fund (MNRW-TF), September 2016.*

### Section 2

### Analytical Work and Conferences (Section 2)

### Conferences and capacity building
- The MNRW-TF financed four successful regional conferences on EI fiscal issues held in East Africa, Asia-Pacific region, and the Andean region (2 conferences).
- Each of those regional conferences had between 60 and 90 participants.
- A conference was held in Washington DC to discuss international issues for the EI sector; the papers from that conference were used as a basis for a book on International Taxation and the Extractives Industries to be released in 2016.
- The MNRW-TF financed two additional conferences in West Africa and Washington DC on the challenges of revenue administration for an EI tax base, with between 25 and 45 participants at each conference.
- Conference formats featured technical presentations, practical exercises, and interactive discussions between FAD staff, an international expert, and country representatives.
- Outcomes from the conferences included sharing of current best practices and the emergence of an inter-governmental collaborative approach to mitigate risks of erosion of an EI tax base.

### Research, analytical outputs, and tools
- The MNRW-TF supported IMF research and analytical work to identify good or best practice approaches and distill lessons for natural resource wealth management and revenue mobilization.
- Deliverables from the first phase of the MNRW-TF included:
  - The Fiscal Analysis of Resource Industries (FARI) methodology and model.
  - Natural resources user guides and technical notes.
  - Several publications.
- Significant specific outputs:
  - The release of two handbooks: Administering Fiscal Regimes for Extractive Industries: A Handbook (recently translated into French and Spanish); and Sovereign Asset-Liability Management Guidance for Resource-rich Countries.
  - The publication of a book on International Taxation and the Extractive Industries.
  - Public release of a stylized version of the IMF’s FARI model, together with an accompanying Technical Notes and Manual. The FARI model is a modeling framework developed to perform EI fiscal analysis, and can be used for assisting in the design of EI fiscal regimes, revenue forecasting, and revenue administration.
  - Development of a template for collecting data on government revenues from natural resources which has been field-tested in several countries.
  - In confirmation of the importance of the template, the EITI announced it will collaborate with the IMF in using the template to improve transparency.
  - Release online of a draft guide on specific compilation issues for natural resources in macroeconomic statistics.

### Coordination and partnerships
- Other technical assistance providers that MNRW coordinates with include:
  - Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ)
  - Extractives Industries Transparency Initiative
  - Natural Resources Governance Institute
  - The UK Department for International Development (DFID)
  - The World Bank

### Implementation and supporting agencies
- Implemented by: THE FISCAL AFFAIRS DEPARTMENT.
- Participating donor agencies listed include: EUROPEAN UNION; SWITZERLAND; AUSTRALIA; NETHERLANDS; NORWAY; OMAN; Norway; Switzerland; Canada; Japan; Kuwait; Qatar; Saudi Arabia; United Kingdom; Luxembourg; The Netherlands; Korea; France; KUWAIT.

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_Source: https://www.imf.org/-/media/files/capacity-developement/mnrw/mnrw_sucessstories_brochure.pdf_