## MNRW-TF, Phase I: Country Coverage with Modules ## Source details **Canonical URL:** [MNRW-TF, Phase I: Country Coverage with Modules](https://www.imf.org/-/media/files/capacity-developement/mnrw/mnrwp1cr.pdf) ## Other formats - [Markdown version](/-/media/files/capacity-developement/mnrw/mnrwp1cr.pdf.md) - [Structured JSON version](/-/media/files/capacity-developement/mnrw/mnrwp1cr.pdf.json) --- ### Executive summary and objectives - The Managing Natural Resource Wealth Topical Trust Fund (MNRW-TF) Phase I covered April 2011 – April 2017 (extended by one year). - The program was funded by US$24.5 million contributed by Australia, the European Union, Kuwait, the Netherlands, Norway, Oman and Switzerland. - Goals (integrated across modules): - Module 1: EI Fiscal Regimes, Licensing and Contracting. - Module 2: EI Revenue Administration. - Module 3: EI Macro-Fiscal, PFM and Expenditure Policy. - Module 4: Natural Resource Asset and Liability Management. - Module 5: Statistics for Managing Natural Resources. - Cross-cutting objective: enhance fiscal transparency and complement Extractive Industries Transparency Initiative (EITI) implementation. ### Key findings and program outcomes - Overall assessment: - Phase I was "reasonably successful" with many excellent achievements across a range of countries, but with challenges in some countries in achieving traction and sustaining progress. - Fewer activities than anticipated under Modules 4 and 5. - An independent mid-term evaluation judged overall performance solid and noted the research and workshops contributed to dissemination of policy guidance. - Coverage and scale: - Total TA projects: 45. - Countries covered: 24. - Geographic emphasis: dominated by Africa; more limited engagement in Asia-Pacific and Latin America; hardly any in the Middle East. - Delivery approach: - Modular approach integrating fiscal regimes, revenue administration, macro-fiscal/ PFM, natural resource funds, and statistics. - Analytical work and regional workshops reinforced country-level projects and provided peer learning. ### Technical assistance (TA) implementation — module highlights - Module 1 (Fiscal Regimes): - Focus: taxes, royalties, production sharing, government participation, and fiscal simulations using the FARI methodology. - Required engagement beyond finance ministries (sector ministries, national oil companies). - Module 2 (Revenue Administration): - Emphasized institutional responsibilities, collection, integrity functions, and establishment of specialized natural resource revenue units. - Challenges where revenue roles are fragmented across agencies. - Module 3 (Macro-Fiscal, PFM and Expenditure Policy): - Focused on medium-term frameworks, fiscal rules, revenue forecasting, and use of FARI for natural resource revenue forecasting. - Sustaining focus on resource revenue management was challenging given broad PFM reform needs. - Module 4 (Asset and Liability Management): - Focused on establishing natural resource funds; demand was lower than anticipated and TA under this module was eventually terminated. - Module 5 (Statistics): - Focused on standardized templates and methodologies for resource revenue statistics; relatively few country-level projects in Phase I. ### Analytical work, tools and guidance - Publications and releases supported policy guidance and capacity building: - Two flagship books: "The Taxation of Petroleum and Minerals: Principles, Problems and Practice" and "International Taxation and The Extractive Industries." - Handbooks: "Administering Fiscal Regimes for Extractive Industries: A Handbook" and "Sovereign Asset-Liability Management Guidance for Resource-rich Countries." - Public release of a version of the Fiscal Analysis for Resource Industries (FARI) model with Technical Notes and Manual. - Development and field-testing of a statistics template for government revenues from natural resources; EITI announced collaboration with the IMF to use the template. - Release online of a draft guide on compilation issues for natural resources in macroeconomic statistics. ### Training, peer learning and workshops - Regional conferences: - Four regional conferences financed (East Africa, Asia-Pacific, Andean region (2)) with between 60 and 90 participants each. - A planned West Africa conference delayed by the Ebola outbreak and prepared under Phase II. - One Washington DC conference addressing international EI tax issues; papers used for a book on International Tax Issues for the Extractives Industries. - Training courses: - Two face-to-face courses at the Joint Vienna Institute on Managing Natural Resource Wealth; online course preparation initiated. - Customized training for CEMAC officials: first two stages completed in January 2017. - 2017 offering of the MOOC on energy subsidy reforms completed. ### Program performance and financial implementation — key statistics - Aggregate financials and spending: - Indicative Expenditure Envelope, per 2011 Program Document: 24,729 (thousands of U.S. Dollars). - Approved Budgets, as of April 30, 2017: 24,485 (thousands of U.S. Dollars). - Actual Expenses, as of October 31, 2017: 20,839 (thousands of U.S. Dollars). - Actual spending was 85 percent of the available funding (Actual Expenses 20,839 relative to Approved Budgets 24,485 = 85%). - Overall actual expenditure of US$20.8 million amounted to 85 percent of available funding. - Thematic fund ended with an unspent cash balance due in part to rigidities in resource allocation delaying corrective reallocation of funds. - Spending by category (In thousands of U.S. Dollars, as of October 31, 2017): - Direct TA: Indicative 20,635; Approved 19,771; Actual 17,216; Actual Expenses Relative to Approved Budgets 87%. - Research Projects: Indicative 750; Approved 1,456; Actual 1,007; Actual Expenses Relative to Approved Budgets 69%. - Workshops & Training: Indicative 1,200; Approved 1,268; Actual 860; Actual Expenses Relative to Approved Budgets 68%. - Trust Fund management fee: Indicative 1,618; Approved 1,602; Actual 1,363; Actual Expenses Relative to Approved Budgets 85%. - Total: Indicative 24,729; Approved 24,485; Actual 20,839; Total Actual 85% of Approved. - Spending by module within Direct TA (Approved Budgets; Actual Expenses; Actual Expenses Relative to Approved Budgets): - Module 1: Approved 7,041; Actual 6,525; 93%. - Module 2: Approved 4,241; Actual 3,856; 91%. - Module 3: Approved 6,303; Actual 4,960; 79%. - Module 4: Approved 469; Actual 469; 100%. - Module 5: Approved 831; Actual 519; 63%. - Project-level variance notes: - Many projects aligned with budgets; several had significant expenditure shortfalls due to initial budgets exceeding actual costs or difficulties gaining traction with authorities. - Examples of project-level percent of endorsed budget (selected): - Andean Regional (1): 92%. - Democratic Republic of Congo (1): 100%. - Ghana (1,2,3): 100%. - Mongolia (2): 100%. - Mongolia (3): 102%. - Mozambique (3): 41%. - Peru TA Seminar (3): 40%. - Global (5): 53%. - Kenya (3): 59%. - Tanzania (3): 61%. ### Financial performance and funding (additional details) - MNRW-TF Phase I was fully financed by contributions from Australia, the European Commission, Kuwait, the Netherlands, Norway, Oman and Switzerland; the seven donors contributed a total of $24.5 million. - Frontloaded disbursements provided a positive cash balance throughout the program period. - Unspent funds of $3.7 million remained due to underspending relative to approved budget plans; residual funds from Phase I will be rolled over to Phase II with Steering Committee members’ consent. - At the FY17 Annual SC meeting: - The Netherlands, Norway and Switzerland were able to roll-over their pro rata share of the residual Phase I funds to Phase II (in the case of the Netherlands and Switzerland, the rollover will be additional to their Phase II funding commitment). - Australia cannot roll-over and their pro rata contribution will be returned. - The situation with other partners is being confirmed bilaterally. - Cash balance timeline (selected annual balances as reported): 1,625; 12,256; 13,586; 10,936; 9,052; 5,448; 3,878; 3,733; 3,733 (in U.S. Dollars, yearly balances shown in sequence). - Outflows (annual expenses sequence reported): 0; 2,147; 3,679; 3,672; 3,812; 3,980; 3,386; 162; 20,839 (in U.S. Dollars, yearly sequence). ### Key achievements at project and country level (Modules 1–3) — selected country outcomes - Aggregate project results: - The bulk of projects received a “medium” RBM score (between 1.5 and 2.5); Mongolia and two research projects—mature projects (more than 48 months)—achieved higher scores (between 2.5 and 4.0). - Selected country-level outcomes: - Cameroon (Module 1): New Mining Code introduced balancing the government and investor take. - Congo, D.R. (Module 1): Draft mining code prepared, although not adopted, and revenue forecasting framework for 15 mining projects developed. - Congo, D.R. (Module 3): Improved revenue forecasting and medium-term fiscal frameworks, although budget credibility remains low. - Ghana (Module 1): Revenue forecasting framework developed for petroleum underpinning the implementation of the macro-fiscal framework in the Petroleum Revenue Management Act with estimation of Benchmark Revenue. - Ghana (Module 2): Formation of petroleum group within the Large Taxpayer Office has led to greater focus on identifying risks, although compliance strategy is not yet in place. - Guinea (Module 1): Revised fiscal provisions of the Mining Code adopted by the National Assembly while the VAT regime for mining has been improved. - Guinea (Module 3): Revenue forecasting framework and capacity to prepare medium-term budget framework. - Kenya (Module 1): Design and implementation including through legislative amendments of new petroleum and mining fiscal regime; capacity on FARI modeling. - Lao, P. D. R (Module 2): Establishment of a Natural Resources Unit in the Tax Department. - Liberia (Module 2): Establishment of natural resources group in the Liberia Revenue Authority with the development of capacity for risk assessment and compliance. - Madagascar (Module 3): Progress made on the medium-term budget preparation process. - Mali (Module 1): A new Petroleum Code adopted with a simplified and more progressive fiscal regime. - Mongolia (Module 2): Strengthened performance of the Large Taxpayer Office, including of mining companies. - Mongolia (Module 3): A reinforced medium-term fiscal framework; implementation of the Fiscal Stability Law and the Integrated Budget Law. - Mozambique (Module 1): A new fiscal regime for mining and petroleum has been adopted and initial capacity in fiscal modeling (FARI). - Mozambique (Module 2): Establishment of natural resource tax unit in the large taxpayer office; commenced work on integrating fiscal modeling and compliance strategy. - Mozambique (Module 3): Establishment of macro-fiscal unit although delays hampered progress in building capacity for macro-fiscal management. - Niger (Module 3): Improved capacity for medium-term fiscal framework incorporating improvements to the natural resource revenue forecasting. - Peru (Module 3): Improvements to the fiscal rule, macro-fiscal framework and medium term budget framework. - Sierra Leone (Module 1): Preparation of draft Extractive Industries Revenue Act introducing a new fiscal regime for mining and petroleum; Mineral Revenue Forecasting Unit in place. - Sierra Leone (Module 2): Establishment of Extractive Industry Revenue Unit with capacity building focused on risk assessment and compliance strategies. - Sierra Leone (Module 3): New PFM legislation has been enacted into law and improved capacity for preparing medium-term fiscal frameworks incorporating fiscal rules. - Tanzania (Module 1): Amendments to the Income Tax Act introduced tax regime for mining and petroleum although less progress on model production sharing contract review. - Tanzania (Module 2): Establishment of Extractive Industry unit within the revenue authority and training on petroleum and mining compliance risk management. - Tanzania (Module 3): Adoption of Petroleum Revenue Management Act. - Timor Leste (Module 1): Framework to calculate the Estimated Sustainable Income for the macro-fiscal framework. - Uganda (Module 1): Adoption of an upstream mining and petroleum fiscal regime and introduction of a new model production sharing agreement. ### Monitoring, evaluation and mid-term external evaluation findings - An independent external evaluation by DevTech Systems in 2015 covered the 2011–2014 program period. - Overall average rating of the projects during the evaluation period was Good (on a scale of Excellent, Very Good, Good, Modest and Poor). - More than a third of the projects were rated Very Good, including three projects rated close to Excellent. - Over 50 percent of the projects were rated Good. - Factors contributing to successful TA projects included: - Pre-project proposal missions or extensive discussions with authorities to design TA. - Focused, realistic and well-defined objectives and outcomes aligned with existing capacity and capacity-building potential. - Joint preparation of action plans and project sequencing with timelines and milestones. - Continuity of engagement, including intensive use of STXs. - Strong emphasis on capacity building and hands-on training. - The evaluation suggested greater focus on issues faced by low income and lower middle income resource-rich countries to enhance relevance. ### Key recommendations and follow-up actions (selected) - 1. Appoint a full time supra-manager in FAD financed by the TF to enhance standardization, the RBM system, technical aspects of the projects, and distill lessons across projects. - Follow-up: Program secretariat functions continue to be carried out jointly by ICD and FAD, but additional capacity has been added to FAD to manage the MNRW-TF, exploiting synergies with the RMTF. - 2. Consider providing TA support on MCM and STA modules under non-TF IMF TA. - Follow-up: Modules 4 and 5 remain in MNRW Phase II but with revised functional focus in Module 4. - 3. Improve synergies and coordination among FAD modules and with LEG. - Follow-up: Efforts are made to integrate policy and legislative aspects of the projects, including LEG expert participation in project activities. - 4. Improve project budgeting to reduce the over costing of projects. - Follow-up: Project budgeting has been standardized; issue will continue to be monitored closely. - 5. Deal with inactive projects (move inactive projects to reserve list and transfer unused budget funds back to the fund; terminate projects that were never launched within one year; review projects on the reserve list after one year). - Follow-up: At the end of each fiscal year the project portfolio will be reviewed, unspent resources under each project for the year will be released back to the resource pool for reallocation; projects lacking traction will be terminated or cut back. - 6. Strengthen project design, planning and TA delivery through scoping missions, more focused and realistic objectives, outcomes and time frames, defining milestones and preparing road maps, more in-depth risk analysis, delivering more hands-on TA, and aiming at continuity of engagement and capacity building. - Follow-up: Inclusion of a small project line for scoping missions has been helpful; a new standardized project proposal template now includes RBM objectives, outcomes, milestones and a risk matrix. - 7. Increase participation of RTACs and regional advisors. - Follow-up: RTAC advisor participation is done on a case-by-case basis. - 8. Enhance the use of research projects and workshops to achieve TTF objectives. - Follow-up: Regional workshops are used as an integrated part of TA delivery; will be reinforced by online training on macroeconomic management of natural resources. - 9. Enhance the RBM as a monitoring tool by disaggregating outcomes and objectives in the log frame used in the top-bottom approach and using one set of scores for the bottom-up approach. - Follow-up: All projects have migrated to a new RBM-based system, CD-PORT, allowing aggregation and monitoring of bottom-up outcomes, objectives, and milestones. - 10. Measures to enhance the efficiency of reporting to the Steering Committee. - Follow-up: Reporting has been standardized between the MNRW-TF and RMTF. ### Governance, program management and operational lessons - Governance: - A Steering Committee comprising representatives of the external donor partners guided the MNRW-TF work, providing strategic guidance, setting policies and priorities, endorsing annual work plans, and monitoring program performance and achievements. - Operational responsibility for program delivery rested with IMF staff; donor coordination occurred at project level to ensure complementarity with bilateral capacity building. - Program management challenges and lessons: - Aggregate shortfalls between approved budgets and actual spending were partly exacerbated by rigidities in reallocating committed funds after project approval, resulting in new proposals being put in reserve despite aggregate budget execution shortfalls. - TA is demand-driven; modules on revenue administration (Module 2), asset management (Module 4), and statistics (Module 5) had budgets and expenditure below indicative program expenditure envelopes, illustrating difficulties in predicting demand ex ante. - Logical sequencing of TA: for new and emerging producers, priority often was to design and implement a fiscal regime (Module 1) before building capacity for revenue collection (Module 2). - Supply constraints: it proved more difficult than anticipated to identify revenue administration experts with hands-on experience administering mining and petroleum revenue systems. - Evolving IMF corporate TA priorities affected the scope of assistance (example: move away from providing TA on asset management and natural resource funds investment policy). - Cross-cutting lessons to guide Phase II: - Use scoping missions selectively to strengthen project design, especially for new beneficiary countries. - Transition from top-down RBM to standardized bottom-up RBM with outcomes, objectives, verifiable indicators drawn from a standardized library and milestones monitorable at the aggregate level. - Strengthen linkages through program modules; use FARI modeling as a bridging tool (e.g., model-based revenue forecasting inputs for rules-based fiscal frameworks; integrated projects between fiscal regime and revenue administration using FARI for revenue risk assessments). - Use regional conferences to foster peer-learning between government officials guided by experts. - More proactively and strategically publicize and disseminate analytical work through training and capacity building. - Integrate capacity building consistently with policy advice, increasing focus on building capacity where basic reform changes have been implemented. - Explore ways to provide training and capacity building at the country level addressing capacity sustainability, consistency in counterpart participation, foundational skills, retention challenges, and inter-agency collaboration. - Coordinate revenue reforms and TA strategies supported under the MNRW with other TA, including under the RMTF. ### Engagement strategy, project allocation and collaboration for Phase II - Engagement strategy: - Continue to work with countries that had projects in Phase I where remaining capacity needs exist, with a deepening of engagement into more targeted areas. - Broaden country coverage by exploring interest from countries eligible for MNRW support that did not have a project in Phase I. - Ensure MNRW projects remain clearly focused on natural resource management and refrain from widening scope toward more general issues. - For countries not yet producing minerals or petroleum, apply a strategic sequencing of TA resources: ensure an appropriate fiscal regime is in place first, followed by capacity building for revenue administration, and then a framework for managing revenue flow (PFM, macro-fiscal). - Project resource allocation — proposed procedural changes: - At the end of each fiscal year, IMF staff will review the project portfolio and transfer unspent resources under each project for the year back to the unallocated thematic fund pool. Projects lacking traction for more than one year will be terminated or scaled back. Additions to uncommitted funds can be tapped by new projects or extensions of existing projects, subject to Steering Committee approval. - Increase the ceiling allowing increases in project spending of up to 25 percent (from 10 percent currently) without requiring prior Steering Committee approval to provide more flexibility to adjust project budgets. - Deepening collaboration with other TA providers: - Leverage MNRW resources by seeking opportunities to collaborate more closely with development agencies with specialist experience and programs supporting improved management of natural resources (for example, Norad Oil for Development). - Ensure visibility of donors supporting the MNRW by highlighting the funding source on TA reports and briefing donors in countries with TA activities. ### Portfolio-level indicators and selected module outcomes (Phase I) - Strategic Objective: Assist low and lower-middle income countries to derive maximum benefit from their oil, gas and mineral resources. - Objective 1 — EI fiscal regimes: - Progress: More than two thirds (23 out of 33) of targeted module outcomes have been fully achieved or largely achieved; one-third (10 out of 33) partially achieved, of which 5 projects proposed to be rolled to MNRW Phase 2. - Objective 2 — EI revenue administration: - Progress: Over one quarter (8 out of 28) of targeted country-module outcomes fully achieved or largely achieved; over one-half (17 out of 28) partially achieved, of which 2 projects proposed for roll over. - Objective 3 — Public Financial Management (PFM) systems: - Progress: About 42 percent (11 out of 26) of targeted country-module outcomes largely achieved; almost another 46 percent (12 out of 26) partially achieved. - Objective 4 — Sovereign asset-liability management: - Progress: A handbook, “Sovereign Asset-Liability Management: Guidance for Resource Rich Countries” (Guidance), was published in April 2014 and used in advising Timor-Leste and Mongolia. MCM will not undertake any further SWF TA work following its decision to disengage from this area. - Objective 5 — National statistics on natural resource activities: - Progress: Template successfully applied to four countries; pilot data sets collected. Share of value added compiled for seven countries, including Chile (15.8%) and Zambia (13.6%). Draft template and guidance standards for natural resource revenue statistics officially adopted by the EITI in February 2015. IMF pilot studies underway. - Portfolio-level indicators (Phase I): - Percentage of endorsed work plan budget expended is greater than 84.5 percent (as at April 2017). - 93 percent of country modules rated as “on track” in annual/mid-year SC reports (excluding projects not started). *** - 48 percent of outcomes achieved. - 45 percent of outcomes largely or partially achieved. ### Selected country project summaries (phase highlights) - Papua New Guinea (Module 4): - Objective: assist the government in developing a legal framework, investment mandate, governance and institutional framework for the establishment of a sovereign wealth fund. - Progress: hampered by an evolving policy stance by the government on the SWF. - Peru (Module 3): - Focus: design of macro-fiscal policy framework; design of fiscal rules in the new Fiscal Responsibility and Transparency Law; intergovernmental distribution of mineral fiscal revenue. - Sierra Leone (Modules 1, 2, 3, 5): - Module 1: draft Extractive Industries Revenue Act submitted to Parliament in 2013; progress stalled following the regional Ebola outbreak and lack of consensus on some aspects within the government. - Module 2: establishment of Extractive Industries Revenue Unit; progress hampered by delay in adopting the new fiscal regime legislation. - Module 3: development of macro-fiscal framework and related PFM legislation; absorptive capacity challenges for implementation. - Solomon Islands (Module 1): - Outcome: new mining fiscal regime enacted in 2014; implementation challenged by turnover of key counterparts. - Tanzania (Modules 1, 2, 3): - Module 1: Amendments to the Income Tax Act introducing a specialized mining and petroleum tax regime adopted by Parliament in 2016; limited progress on model Production Sharing Agreement. - Module 2: Establishment of a specialized Extractive Industries unit; management changes impacted TA delivery. - Module 3: Petroleum Revenue Management Act enacted in 2015, including provisions on budget management and establishment of a natural resource revenue fund. - Timor Leste (Modules 1, 4): - Module 1: development of a revenue forecasting framework for calculating the annual Estimated Sustainable Income. - Module 4: initial TA on investment policy for the Petroleum Fund. - Uganda (Modules 1, 3): - Module 1: amendments to the Income Tax Act in 2015; development of a new model Production Sharing Agreement in 2016. - Module 3: public finance act enacted in 2014. *Attributed to the MNRW-TF Phase I report (Managing Natural Resource Wealth Topical Trust Fund, Phase I).* ### 1. MNRW-TF, Phase I: Country Coverage with Modules ____________________________________________7 ### 1. MNRW-TF, Phase I: Country Coverage with Modules ### Executive summary and objectives - The Managing Natural Resource Wealth Topical Trust Fund (MNRW-TF) Phase I covered April 2011 – April 2017 (extended by one year). - The program was funded by US$24.5 million contributed by Australia, the European Union, Kuwait, the Netherlands, Norway, Oman and Switzerland. - Goals (integrated across modules): - Module 1: EI Fiscal Regimes, Licensing and Contracting. - Module 2: EI Revenue Administration. - Module 3: EI Macro-Fiscal, PFM and Expenditure Policy. - Module 4: Natural Resource Asset and Liability Management. - Module 5: Statistics for Managing Natural Resources. - Cross-cutting objective: enhance fiscal transparency and complement Extractive Industries Transparency Initiative (EITI) implementation. ### Key findings and program outcomes - Overall assessment: - Phase I was "reasonably successful" with many excellent achievements across a range of countries, but with challenges in some countries in achieving traction and sustaining progress. - Fewer activities than anticipated under Modules 4 and 5. - An independent mid-term evaluation judged overall performance solid and noted the research and workshops contributed to dissemination of policy guidance. - Coverage and scale: - Total TA projects: 45. - Countries covered: 24. - Geographic emphasis: dominated by Africa; more limited engagement in Asia-Pacific and Latin America; hardly any in the Middle East. - Delivery approach: - Modular approach integrating design/implementation of fiscal regimes; revenue administration; macro-fiscal and PFM; natural resource funds; and statistics. - Analytical work and regional workshops reinforced country-level projects and provided peer learning. ### Technical assistance (TA) implementation — module highlights - Module 1 (Fiscal Regimes): - Focused on taxes, royalties, production sharing, government participation, and fiscal simulations using the FARI methodology. - Required engagement beyond finance ministries (sector ministries, national oil companies). - Module 2 (Revenue Administration): - Emphasized institutional responsibilities, collection, integrity functions, and establishment of specialized natural resource revenue units. - Challenges where revenue roles are fragmented across agencies. - Module 3 (Macro-Fiscal, PFM, Expenditure Policy): - Focused on medium-term frameworks, fiscal rules, revenue forecasting, and use of FARI for natural resource revenue forecasting. - Sustaining focus on resource revenue management was challenging given broad PFM reform needs. - Module 4 (Asset and Liability Management): - Focused on establishing natural resource funds; demand was lower than anticipated and TA under this module was eventually terminated. - Module 5 (Statistics): - Focused on standardized templates and methodologies for resource revenue statistics; relatively few country-level projects in Phase I. ### Analytical work, tools and guidance - Publications and releases supported policy guidance and capacity building: - Two flagship books: "The Taxation of Petroleum and Minerals: Principles, Problems and Practice" and "International Taxation and The Extractive Industries." - Handbooks: "Administering Fiscal Regimes for Extractive Industries: A Handbook" and "Sovereign Asset-Liability Management Guidance for Resource-rich Countries." - Public release of a version of the Fiscal Analysis for Resource Industries (FARI) model with Technical Notes and Manual. - Development and field-testing of a statistics template for government revenues from natural resources; EITI announced collaboration with the IMF to use the template. - Release online of a draft guide on compilation issues for natural resources in macroeconomic statistics. ### Training, peer learning and workshops - Regional conferences: - Four regional conferences financed (East Africa, Asia-Pacific, Andean region (2)) with between 60 and 90 participants each. - A planned West Africa conference delayed by the Ebola outbreak and prepared under Phase II. - One Washington DC conference addressing international EI tax issues; papers used for a book on International Tax Issues for the Extractives Industries. - Training courses: - Two face-to-face courses at the Joint Vienna Institute on Managing Natural Resource Wealth; online course preparation initiated. - Customized training for CEMAC officials: first two stages completed in January 2017. - 2017 offering of the MOOC on energy subsidy reforms completed. ### Program performance and financial implementation — key statistics - Aggregate financials and spending: - Indicative Expenditure Envelope, per 2011 Program Document: 24,729 (thousands of U.S. Dollars). - Approved Budgets, as of April 30, 2017: 24,485 (thousands of U.S. Dollars). - Actual Expenses, as of October 31, 2017: 20,839 (thousands of U.S. Dollars). - Actual spending was 85 percent of the available funding (Actual Expenses 20,839 relative to Approved Budgets 24,485 = 85%). - Overall actual expenditure of US$20.8 million amounted to 85 percent of available funding. - Thematic fund ended with an unspent cash balance due in part to rigidities in resource allocation delaying corrective reallocation of funds. - Spending by category (In thousands of U.S. Dollars, as of October 31, 2017): - Direct TA: Indicative 20,635; Approved 19,771; Actual 17,216; Actual Expenses Relative to Approved Budgets 87%. - Research Projects: Indicative 750; Approved 1,456; Actual 1,007; Actual Expenses Relative to Approved Budgets 69%. - Workshops & Training: Indicative 1,200; Approved 1,268; Actual 860; Actual Expenses Relative to Approved Budgets 68%. - Trust Fund management fee: Indicative 1,618; Approved 1,602; Actual 1,363; Actual Expenses Relative to Approved Budgets 85%. - Total: Indicative 24,729; Approved 24,485; Actual 20,839; Total Actual 85% of Approved. - Spending by module within Direct TA (Approved Budgets; Actual Expenses; Actual Expenses Relative to Approved Budgets): - Module 1: Approved 7,041; Actual 6,525; 93%. - Module 2: Approved 4,241; Actual 3,856; 91%. - Module 3: Approved 6,303; Actual 4,960; 79%. - Module 4: Approved 469; Actual 469; 100%. - Module 5: Approved 831; Actual 519; 63%. - Project-level variance notes: - Many projects aligned with budgets; several had significant expenditure shortfalls due to initial budgets exceeding actual costs or difficulties gaining traction with authorities. - Examples of project-level percent of endorsed budget (selected): - Andean Regional (1): 92%. - Democratic Republic of Congo (1): 100%. - Ghana (1,2,3): 100%. - Mongolia (2): 100%. - Mongolia (3): 102%. - Mozambique (3): 41%. - Peru TA Seminar (3): 40%. - Global (5): 53%. - Kenya (3): 59%. - Tanzania (3): 61%. ### Cross-cutting lessons learned and adjustments for Phase II - Identified steps adopted for Phase II: - Develop more effective ways to deliver policy advice and capacity building while enhancing synergies between program modules. - Facilitate an evolving engagement with beneficiary countries in the second program phase. - Apply more flexibility in project resource allocation to avoid a build-up in committed but unspent funds. - Explore innovative ways to collaborate with other TA providers. *The MNRW-TF Phase I report (Managing Natural Resource Wealth Topical Trust Fund, Phase I).* ### 1. Developing a Compilation Guide on Natural Resources ### 1. Developing a Compilation Guide on Natural Resources ### Financial performance and funding - MNRW-TF Phase I was fully financed by contributions from Australia, the European Commission, Kuwait, the Netherlands, Norway, Oman and Switzerland; the seven donors contributed a total of $24.5 million. - Frontloaded disbursements provided a positive cash balance throughout the program period. - Unspent funds of $3.7 million remained due to underspending relative to approved budget plans; residual funds from Phase I will be rolled over to Phase II with Steering Committee members’ consent. - At the FY17 Annual SC meeting: - The Netherlands, Norway and Switzerland were able to roll-over their pro rata share of the residual Phase I funds to Phase II (in the case of the Netherlands and Switzerland, the rollover will be additional to their Phase II funding commitment). - Australia cannot roll-over and their pro rata contribution will be returned. - The situation with other partners is being confirmed bilaterally. - Cash balance timeline (selected annual balances as reported): 1,625; 12,256; 13,586; 10,936; 9,052; 5,448; 3,878; 3,733; 3,733 (in U.S. Dollars, yearly balances shown in sequence). - Outflows (annual expenses sequence reported): 0; 2,147; 3,679; 3,672; 3,812; 3,980; 3,386; 162; 20,839 (in U.S. Dollars, yearly sequence). ### Key achievements at project and country level (Modules 1–3) - Aggregate project results: the bulk of projects received a “medium” RBM score (between 1.5 and 2.5); Mongolia and two research projects—mature projects (more than 48 months)—achieved higher scores (between 2.5 and 4.0). - Country-level key results (selected entries from Table 3): - Cameroon (Module 1): New Mining Code introduced balancing the government and investor take. - Congo, D.R. (Module 1): Draft mining code prepared, although not adopted, and revenue forecasting framework for 15 mining projects developed. - Congo, D.R. (Module 3): Improved revenue forecasting and medium-term fiscal frameworks, although budget credibility remains low. - Ghana (Module 1): Revenue forecasting framework developed for petroleum underpinning the implementation of the macro-fiscal framework in the Petroleum Revenue Management Act with estimation of Benchmark Revenue. - Ghana (Module 2): Formation of petroleum group within the Large Taxpayer Office has led to greater focus on identifying risks, although compliance strategy is not yet in place. - Guinea (Module 1): Revised fiscal provisions of the Mining Code adopted by the National Assembly while the VAT regime for mining has been improved. - Guinea (Module 3): Revenue forecasting framework and capacity to prepare medium-term budget framework. - Kenya (Module 1): Design and implementation including through legislative amendments of new petroleum and mining fiscal regime; capacity on FARI modeling. - Lao, P. D. R (Module 2): Establishment of a Natural Resources Unit in the Tax Department. - Liberia (Module 2): Establishment of natural resources group in the Liberia Revenue Authority with the development of capacity for risk assessment and compliance. - Madagascar (Module 3): Progress made on the medium-term budget preparation process. - Mali (Module 1): A new Petroleum Code adopted with a simplified and more progressive fiscal regime. - Mongolia (Module 2): Strengthened performance of the Large Taxpayer Office, including of mining companies. - Mongolia (Module 3): A reinforced medium-term fiscal framework; implementation of the Fiscal Stability Law and the Integrated Budget Law. - Mozambique (Module 1): A new fiscal regime for mining and petroleum has been adopted and initial capacity in fiscal modeling (FARI). - Mozambique (Module 2): Establishment of natural resource tax unit in the large taxpayer office; commenced work on integrating fiscal modeling and compliance strategy. - Mozambique (Module 3): Establishment of macro-fiscal unit although delays hampered progress in building capacity for macro-fiscal management. - Niger (Module 3): Improved capacity for medium-term fiscal framework incorporating improvements to the natural resource revenue forecasting. - Peru (Module 3): Improvements to the fiscal rule, macro-fiscal framework and medium term budget framework. - Sierra Leone (Module 1): Preparation of draft Extractive Industries Revenue Act introducing a new fiscal regime for mining and petroleum; Mineral Revenue Forecasting Unit in place. - Sierra Leone (Module 2): Establishment of Extractive Industry Revenue Unit with capacity building focused on risk assessment and compliance strategies. - Sierra Leone (Module 3): New PFM legislation has been enacted into law and improved capacity for preparing medium-term fiscal frameworks incorporating fiscal rules. - Tanzania (Module 1): Amendments to the Income Tax Act introduced tax regime for mining and petroleum although less progress on model production sharing contract review. - Tanzania (Module 2): Establishment of Extractive Industry unit within the revenue authority and training on petroleum and mining compliance risk management. - Tanzania (Module 3): Adoption of Petroleum Revenue Management Act. - Timor Leste (Module 1): Framework to calculate the Estimated Sustainable Income for the macro-fiscal framework. - Uganda (Module 1): Adoption of an upstream mining and petroleum fiscal regime and introduction of a new model production sharing agreement. ### Monitoring, evaluation and mid-term external evaluation findings - An independent external evaluation by DevTech Systems in 2015 covered the 2011–2014 program period. - Overall average rating of the projects during the evaluation period was Good (on a scale of Excellent, Very Good, Good, Modest and Poor). - More than a third of the projects were rated Very Good, including three projects rated close to Excellent. - Over 50 percent of the projects were rated Good. - Factors contributing to successful TA projects included: - Pre-project proposal missions or extensive discussions with authorities to design TA. - Focused, realistic and well-defined objectives and outcomes aligned with existing capacity and capacity-building potential. - Joint preparation of action plans and project sequencing with timelines and milestones. - Continuity of engagement, including intensive use of STXs. - Strong emphasis on capacity building and hands-on training. - The evaluation noted research and workshop components delivered important products for dissemination, but suggested greater focus on issues faced by low income and lower middle income resource-rich countries to enhance relevance. ### Key recommendations and follow-up actions (from Mid-Term External Evaluation Table) - 1. Appoint a full time supra-manager in FAD financed by the TF to enhance standardization, the RBM system, technical aspects of the projects, and distill lessons across projects. - Follow-up: Program secretariat functions continue to be carried out jointly by ICD and FAD, but additional capacity has been added to FAD to manage the MNRW-TF, exploiting synergies with the RMTF. - 2. Consider providing TA support on MCM and STA modules under non-TF IMF TA. - Follow-up: Modules 4 and 5 remain in MNRW Phase II but with revised functional focus in Module 4. - 3. Improve synergies and coordination among FAD modules and with LEG. - Follow-up: Efforts are made to integrate policy and legislative aspects of the projects, including LEG expert participation in project activities. - 4. Improve project budgeting to reduce the over costing of projects. - Follow-up: Project budgeting has been standardized; issue will continue to be monitored closely. - 5. Proposal to deal with inactive projects (move inactive projects to reserve list and transfer unused budget funds back to the fund; terminate projects that were never launched within one year; review projects on the reserve list after one year). - Follow-up: At the end of each fiscal year the project portfolio will be reviewed, unspent resources under each project for the year will be released back to the resource pool for reallocation; projects lacking traction will be terminated or cut back. - 6. Strengthen project design, planning and TA delivery through scoping missions, more focused and realistic objectives, outcomes and time frames, defining milestones and preparing road maps, more in-depth risk analysis, delivering more hands-on TA, and aiming at continuity of engagement and capacity building. - Follow-up: Inclusion of a small project line for scoping missions has been helpful; a new standardized project proposal template now includes RBM objectives, outcomes, milestones and a risk matrix. - 7. Increase participation of RTACs and regional advisors. - Follow-up: RTAC advisor participation is done on a case-by-case basis. - 8. Enhance the use of research projects and workshops to achieve TTF objectives. - Follow-up: Regional workshops are used as an integrated part of TA delivery; will be reinforced by online training on macroeconomic management of natural resources. - 9. Enhance the RBM as a monitoring tool by disaggregating outcomes and objectives in the log frame used in the top-bottom approach and using one set of scores for the bottom-up approach. - Follow-up: All projects have migrated to a new RBM-based system, CD-PORT, allowing aggregation and monitoring of bottom-up outcomes, objectives, and milestones. - 10. Measures to enhance the efficiency of reporting to the Steering Committee. - Follow-up: Reporting has been standardized between the MNRW-TF and RMTF. ### Governance, program management and operational lessons - Governance: - A Steering Committee comprising representatives of the external donor partners guided the MNRW-TF work, providing strategic guidance, setting policies and priorities, endorsing annual work plans, and monitoring program performance and achievements. - Operational responsibility for program delivery rested with IMF staff; donor coordination occurred at project level to ensure complementarity with bilateral capacity building. - Program management challenges and lessons: - Aggregate shortfalls between approved budgets and actual spending were partly exacerbated by rigidities in reallocating committed funds after project approval, resulting in new proposals being put in reserve despite aggregate budget execution shortfalls. - TA is demand-driven; modules on revenue administration (Module 2), asset management (Module 4), and statistics (Module 5) had budgets and expenditure below indicative program expenditure envelopes, illustrating difficulties in predicting demand ex ante. - Logical sequencing of TA: for new and emerging producers, priority often was to design and implement a fiscal regime (Module 1) before building capacity for revenue collection (Module 2). - Supply constraints: it proved more difficult than anticipated to identify revenue administration experts with hands-on experience administering mining and petroleum revenue systems. - Evolving IMF corporate TA priorities affected the scope of assistance (example: move away from providing TA on asset management and natural resource funds investment policy). - Cross-cutting lessons to guide Phase II: - Use scoping missions selectively to strengthen project design, especially for new beneficiary countries. - Transition from top-down RBM to standardized bottom-up RBM with outcomes, objectives, verifiable indicators drawn from a standardized library and milestones monitorable at the aggregate level. - Strengthen linkages through program modules; use FARI modeling as a bridging tool (e.g., model-based revenue forecasting inputs for rules-based fiscal frameworks; integrated projects between fiscal regime and revenue administration using FARI for revenue risk assessments). - Use regional conferences to foster peer-learning between government officials guided by experts. - More proactively and strategically publicize and disseminate analytical work through training and capacity building. - Integrate capacity building consistently with policy advice, increasing focus on building capacity where basic reform changes have been implemented. - Explore ways to provide training and capacity building at the country level addressing capacity sustainability, consistency in counterpart participation, foundational skills, retention challenges, and inter-agency collaboration. - Coordinate revenue reforms and TA strategies supported under the MNRW with other TA, including under the RMTF. *Source: MNRW-TF Phase I report (MNRW-TF Phase I financial and project summaries, governance arrangements, mid-term external evaluation and lessons learnt).* ### 26. Adapt and evolve the engagement with beneficiary countries as the MNRW-TF ### 26. Adapt and evolve the engagement with beneficiary countries as the MNRW-TF moves into Phase II ### Engagement strategy for Phase II - Continue to work with countries that had projects in Phase I where remaining capacity needs exist, with a deepening of engagement into more targeted areas. - Broaden country coverage by exploring interest from countries eligible for MNRW support that did not have a project in Phase I. - Ensure MNRW projects remain clearly focused on natural resource management and refrain from widening scope toward more general issues. - For countries not yet producing minerals or petroleum, apply a strategic sequencing of TA resources: ensure an appropriate fiscal regime is in place first, followed by capacity building for revenue administration, and then a framework for managing revenue flow (PFM, macro-fiscal). ### Project resource allocation — proposed procedural changes - At the end of each fiscal year, IMF staff will review the project portfolio and transfer unspent resources under each project for the year back to the unallocated thematic fund pool. Projects lacking traction for more than one year will be terminated or scaled back. Additions to uncommitted funds can be tapped by new projects or extensions of existing projects, subject to Steering Committee approval. - Increase the ceiling allowing increases in project spending of up to 25 percent (from 10 percent currently) without requiring prior Steering Committee approval to provide more flexibility to adjust project budgets. ### Deepening collaboration with other TA providers - Leverage MNRW resources by seeking opportunities to collaborate more closely with development agencies with specialist experience and programs supporting improved management of natural resources (for example, Norad Oil for Development). - Ensure visibility of donors supporting the MNRW by highlighting the funding source on TA reports and briefing donors in countries with TA activities. ### Appendix 1 — MNRW-TF Phase I Strategic Log Frame: key objectives and progress - Strategic Objective: Assist low and lower-middle income countries to derive maximum benefit from their oil, gas and mineral resources. - Objective 1 — Extractive Industry (EI) fiscal regimes: - Verifiable indicator: Adoption of new or amended EI fiscal regimes that improve host government revenues. - Baseline: TF countries currently have EI fiscal regimes that do not maximize government revenue, lack transparency, and/or lack capacity to address these problems. - Progress: More than two thirds (23 out of 33) of targeted module outcomes have been fully achieved or largely achieved; one-third (10 out of 33) partially achieved, of which 5 projects proposed to be rolled to MNRW Phase 2. - Risks: Reduced government commitment to reform; lack of resources; resistance from vested interests, including EI companies. - Objective 2 — EI revenue administration: - Verifiable indicators: Development of EI revenue administration in line with international standards, including an efficient Large Taxpayer Office (LTO); development of audit capability; improvements in ratio of taxes collected to taxes due related to EI. - Baseline: Inadequate information systems, collection procedures, audit procedures, taxpayer services, and capacity. - Progress: Over one quarter (8 out of 28) of targeted country-module outcomes fully achieved or largely achieved; over one-half (17 out of 28) partially achieved, of which 2 projects proposed for roll over. - Assessment: Aggregated annual assessments by relevant project managers. - Objective 3 — Public Financial Management (PFM) systems: - Verifiable indicators: Management of EI revenue through medium-term fiscal frameworks; annual budget processes specifying important PFM parameters; budget classifications incorporating EI details. - Baseline: Inadequate macro-fiscal frameworks, macro models, budget processes, revenue forecasting models, and capacity. - Progress: About 42 percent (11 out of 26) of targeted country-module outcomes largely achieved; almost another 46 percent (12 out of 26) partially achieved. - Objective 4 — Sovereign asset-liability management: - Verifiable indicators: Development of investment strategies and strategic asset allocation; assessment of governance structure and institutional framework; assessment of Santiago Principles implementation and recommendations. - Baseline: Lack of comprehensive investment strategy and assessments. - Progress: A handbook, “Sovereign Asset-Liability Management: Guidance for Resource Rich Countries” (Guidance), was published in April 2014 and used in advising Timor-Leste and Mongolia. MCM will not undertake any further SWF TA work following its decision to disengage from this area. - Objective 5 — National statistics on natural resource activities: - Verifiable indicators: Preparation and publication of disaggregated national accounts and government finance statistics identifying natural resource transactions. - Baseline: Mining sector coverage for value added estimation is not comprehensive; data quality poor. - Progress: Template successfully applied to four countries; pilot data sets collected. Share of value added compiled for seven countries, including Chile (15.8%) and Zambia (13.6%). Draft template and guidance standards for natural resource revenue statistics officially adopted by the EITI in February 2015. IMF pilot studies underway. - Country examples: Sierra Leone — MOU drafted between National Mineral Agency and Statistics Sierra Leone; experimental estimates reveal iron ore output share to GDP understated by more than 5 percentage points. Mozambique — updated data suggest GDP could be underestimated by as much as 10 percent; finance minister requested revisions be implemented when national accounts rebased to 2017. - Risks/mitigations: Weak collaboration with data providers; lack of capacity and resources for statistics; failure of policy makers to use template tables; mitigate via collaboration with EITI and advertising within the Fund and external stakeholders. ### Portfolio-level indicators (Phase I) - Percentage of endorsed work plan budget expended is greater than 84.5 percent (as at April 2017). - 93 percent of country modules rated as “on track” in annual/mid-year SC reports (excluding projects not started). *** - 48 percent of outcomes achieved. - 45 percent of outcomes largely or partially achieved. - Note: Verifiable indicators are set for a multi-year period but can be tracked annually. Percentages to be set in discussion with the Steering Committee. “On track” judged when activities are implemented as planned and outputs are achieved as planned. ### Appendix 2 — Summary of selected country projects and outcomes (Phase I) - Cameroon (Module 1): - Aim: Support design/implementation of reforms to mining and petroleum fiscal regime; build capacity for fiscal regime analysis and revenue forecasting. - Outcome: New Mining Code adopted by Parliament at end of project; Petroleum Code drafting slower. Fragmented stakeholder responsibilities; slow progress establishing inter-agency group. - Congo, D.R. (Modules 1, 2, 3): - Module 1: Draft Mining Code submitted to Parliament but suspended; mining modeling framework applied to 15 mines. - Module 2: Streamlining revenue administration fragmented across institutions; mixed progress, no decision on transferring collection to tax authority. - Module 3: Improved revenue forecasting methods; budget credibility remains weak, heavy reliance on cash management limited macro-fiscal improvements. - Ghana (Modules 1, 2): - Module 1: Improved fiscal regime for extractive industries; petroleum revenue forecasting (FARI methodology) training provided; new Income Tax Act enacted reflecting mining and petroleum tax policy advice. Sustaining progress challenging. - Module 2: Assisted Ghana Revenue Authority in compliance strategy; training undertaken but management commitment waned. - Guinea (Modules 1, 3): - Module 1: Fiscal provisions of Mining Code redrafted and adopted; VAT regime for mining strengthened. - Module 3: Capacity building for revenue forecasting and medium-term budget strategy; need to enhance credibility of medium-term budget documents and process. - Kenya (Modules 1, 2, 3): - Module 1: New income tax legislation for mining and petroleum implemented; draft model production contract; capacity building on fiscal modeling and revenue forecasting. - Module 3: Supported prudent macro-fiscal framework and advice on natural resource fund design. - Module 2: Revenue administration capacity-building started late in Phase I and continued into Phase II. - Lao, PDR (Module 2): - Outcome: Natural Resource Unit established in Tax Department to profile and manage taxpayers in natural resource industries. - Challenge: Absence of explicit support on strengthening fiscal regime. - Liberia (Module 2): - Outcome: Natural resource group established in Liberia Revenue Authority; development of an audit manual. - Madagascar (Module 3): - Focus: Developing a medium-term budget framework including potential natural resource revenues; strengthening fiscal transparency. - Mali (Module 1): - Activities: FARI model customized and applied to six mining projects; training to inter-agency modeling group. - Challenges: Security environment limited progress; Petroleum Code adopted, revised Mining Code adoption limited by lack of stakeholder support. - Mauritania (Module 1): - Context: New Mining Code adopted prior to project start. - Focus: Reoriented TA toward reforms in the general tax system affecting mining taxation; efforts to strengthen inter-agency collaboration. - Mongolia (Modules 1, 2, 3): - Module 1: Supported reforms for rationalized and stable fiscal regime; drafting of new Petroleum Law; focus on international tax issues. - Module 2: Strengthened Large Taxpayer Office organization and risk management for large mining companies; less progress on international tax compliance strategy. - Module 3: Strengthened medium-term fiscal framework; sovereign wealth fund legislation approved in 2016; progress on Fiscal Stability Law and Integrated Budget Law. - Mozambique (Modules 1, 2, 3, 5): - Module 1: New fiscal regime for mining and petroleum adopted by Parliament in 2014; capacity building on fiscal modeling and revenue forecasting hampered by delivery challenges. - Module 2: Revenue authority established natural resources division and began compliance/risk management strategy; initial FARI modeling used. - Module 3: Macro-fiscal unit created in 2016; diagnostic work identified reform priorities though implementation lagging. - Niger (Modules 1, 3): - Module 1: Support for amending Mining and Petroleum Codes; limited progress partly reflecting counterpart changes. - Module 3: Enhanced macro-fiscal capabilities including medium-term fiscal framework development and improved revenue forecasting. *Attributed to the MNRW-TF Phase I documentation and associated project reports.* ### 42. Papua New Guinea (Module 4): The project aimed at assisting the government in ### 42. Papua New Guinea (Module 4): The project aimed at assisting the government in ### Papua New Guinea (Module 4) - Objective: assist the government in developing a legal framework, investment mandate, governance and institutional framework for the establishment of a sovereign wealth fund. - Progress: hampered by an evolving policy stance by the government on the SWF. ### Peru (Module 3) - Objective: support sustainable management of natural resource revenue, including through the establishment of a sovereign wealth fund. - Focus during implementation: - Design of macro-fiscal policy framework. - Design of fiscal rules in the new Fiscal Responsibility and Transparency Law. - Intergovernmental distribution of mineral fiscal revenue. ### Sierra Leone (Modules 1, 2, 3, 5) - Module 1: - Aim: reform mining and petroleum fiscal regime; build capacity for fiscal policy analysis, forecasting and fiscal simulations in the extractives sector. - Outcome: new draft Extractive Industries Revenue Act submitted to Parliament in 2013; progress stalled following the regional Ebola outbreak and lack of consensus on some aspects within the government. - Capacity building: initial support to an inter-agency Mineral Revenue Forecasting Unit. - Module 2: - Aim: set up an Extractive Industries Revenue Unit and prepare a detailed medium term action plan focusing on risk assessment and compliance strategies. - Progress: hampered by delay in adopting the new fiscal regime legislation. - Module 3: - Aim: develop a medium-term macro-fiscal framework integrating mineral revenue forecasting. - Progress: made on developing the policy framework and related PFM legislation. - Challenge: absorptive capacity for internalizing implementation of recommendations, including those related to the recommended fiscal rule. ### Solomon Islands (Module 1) - Objective: support implementation of previous FAD mission recommendations on design of the mining fiscal regime. - Outcome: new mining fiscal regime enacted in 2014. - Implementation challenge: commitment waned due to turnover of key counterparts. ### Tanzania (Module 1, 2, 3) - Module 1: - Advice on reforms to the petroleum fiscal regime, including support for legislative amendments. - Progress impeded by lack of an effective mechanism to foster policy cohesion between key government agencies. - Outcome: Amendments to the Income Tax Act introducing a specialized mining and petroleum tax regime adopted by Parliament in 2016. - No corresponding progress on reforms to the model Production Sharing Agreement. - Modeling using the FARI methodology, including of a natural gas development, was integrated into the TA; its prominence reduced because authorities were receiving bilateral capacity building on modeling. - Module 2: - Support to the Large Tax Department in compliance and risk management for the natural resource sector. - Included clarifying roles and responsibilities of various government agencies. - Outcome: establishment of a specialized Extractive Industries unit and an international group. - Implementation issue: management changes in the revenue authority impacted TA delivery toward the end of the project. - Module 3: - Supported formulation of a macro-fiscal framework for resource revenue management. - Outcome: input provided for preparation of a Ministry of Finance policy paper on natural resource revenue management. - Legislation: Petroleum Revenue Management Act enacted in 2015, including provisions on budget management and establishment of a natural resource revenue fund. ### Timor Leste (Modules 1, 4) - Module 1: - Outcome: development of a revenue forecasting framework for calculating the annual Estimated Sustainable Income, a key component of the macro-fiscal framework. - Less traction on reforming the petroleum fiscal regime. - Module 4: - Initial technical assistance provided on investment policy for the Petroleum Fund. ### Uganda (Modules 1, 3) - Module 1: - Support for reforms to the mining and petroleum fiscal regime. - Outcomes: amendments to the Income Tax Act in 2015; development of a new model Production Sharing Agreement in 2016. - Additional advice: fiscal issues related to the petroleum midstream and downstream sectors. - Capacity building on FARI modeling deferred because the sector ministry was receiving support from a bilateral development partner. - Module 3: - Support for drafting a new public finance act incorporating petroleum resource revenue. - Outcome: public finance act enacted in 2014. ### Andean Regional (Module 1) - Scope: TA support for reforms of the mining and petroleum fiscal regimes for countries in the Andean region (Bolivia, Columbia, Ecuador, and Peru). - Delivery: partly through two well-attended regional workshops. --- _Source: https://www.imf.org/-/media/files/capacity-developement/mnrw/mnrwp1cr.pdf_