Green Economy in a Blue World-Full Report

in a Blue World

Design of a mineral fund

consolidated account. • Governance is assured by an Independent Oversight Committee (IOC), which reviews payments, calculation of the PIH-based withdrawal amount and accuracy of published information. • The IOC should also be responsible for auditing the Funds’ activities and transactions and should be accountable to the highest instances such as the Parliament.

A simplified structure for a Natural Resources Fund, its actors and functions: • The revenues received are paid directly into the funds and are invested in secure financial assets, mostly outside the country. • Investment strategies are determined by an Investment Committee and funds can be managed by the Central Bank. • Each year, the Ministry of Finance or Economy determines the amount which can be withdrawn and transferred to the Government’s

Mining revenues Royalties - Income tax - Additional Profits Resources, Rent tax - Signature Bonuses

Natural Resources Fund

Ministry of Natural Resources

Ministry of Finance

Investment Committee

Tax Department Forecasts

Central Bank

Mining Department Forecasts

Permanent Income Calculation Independent Oversight Committee

Economic Assumption

Withdrawal of Funds

STATE BUDGET

require regular reporting by a mining company on its activities, expenditure, and environmental issues, in order to be able to verify progress against the plan of work. Such information may

be published to promote accountability to the public. Self-reporting from the mining entity can be supplemented with other methods of oversight, including site visits by the regulator.

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