The extractive industries (EI) sector occupies an outsize space in the economies of many developing countries. Economists, public finance professionals, and policy makers working in such countries are frequently confronted with issues that require an in-depth understanding of the sector. The objective of this volume is to provide a concise overview of EI-related topics these professionals are likely to encounter. The volume provides an overview of issues central to EI economics; discusses key components of the sector's governance, policy, and institutional frameworks; and identifies the public sector's EI-related financing obligations. Its discussion of EI economics covers the valuation of subsoil assets, the economic interpretation of ore, and the structure of energy and mineral markets. The volume maps the responsibilities of relevant government entities and outlines the characteristics of the EI sector's legal and regulatory frameworks. Specific key functions of the sector are briefly discussed, as are the financial structures that underpin environmental and social safeguards; investment of public revenues generated from oil, gas, or minerals; as well as extractive-based economic diversification. The authors hope that decision makers in ministries of finance, international organizations, and other relevant entities will find the study useful to their understanding and analysis of the EI sector.

In recent decades, resource-rich developing countries have been using their natural resources as collateral to access sources of finance for investment, countervailing the barriers they face when accessing conventional bank lending and capital markets. One of the financing models that have emerged as a result is the Resource Financed Infrastructure (RFI) model, a derivation of previous oil-backed lending models pioneered by several Western banks in Africa. Under a Resource Financed Infrastructure (RFI) arrangement, a loan for current infrastructure construction is securitized against the net present value of a future revenue stream from oil or mineral extraction. The model has been applied in several African countries, for a cumulative contract value of approximately $30 billion, according to publically available sources. This report, consisting of a study prepared by global project finance specialists Hunton & Williams LLP and comments from six internationally reputed economists and policy makers, provides an analytical discussion of resource-financed infrastructure (RFI) contracting from a project finance perspective. The report is meant as a forum for in-depth discussion and as a basis for further research into RFI s role, risks, and potential, without any intention to present a World Bank supported view on RFI contracting. It is motivated by the conviction that if countries are to continue to either seek RFI or receive unsolicited RFI proposals, there is an onus on public officials to discern bad deals from good, to judge unavoidable trade-offs, and to act accordingly. The report aims to provide a basis for developing insights on how RFI deals can be made subject to the same degree of public policy scrutiny as any other instrument through which a government of a low- or lower-middle-income country might seek to mobilize development finance."

This book sets out indicators to assess the fiscal stance in resource rich countries, then discusses fiscal policy in three related dimensions: short-run stabilization; the management of fiscal risks and vulnerabilities; and the promotion of long-run sustainability.

El Sector de las Industrias Extractivas (IE) ocupa un lugar considerable en las economias de muchos paises en desarrollo. Los economistas y los profesionales de las finanzas publicas que trabajan en estos paises suelen enfrentarse a problemas que exigen un entendimiento profundo del sector, su economia, su buen gobierno y los desafios en materia de politicas, asi como a las consecuencias de la abundancia de recursos naturales para la gestion fiscal y de las finanzas publicas. El objetivo del estudio de tres volumenes denominado Essentials for Economists and Public Finance Professionals, publicado en la serie de estudios realizados por el Banco Mundial, es presentar un panorama general conciso de los temas relacionados con las IE que estos profesionales probablemente deban encarar. En el primer volumen, "The Extractive Industries Sector", se ofrece una resena general de las cuestiones fundamentales para la economia de las IE; se analizan los componentes principales del buen gobierno, las politicas y los marcos institucionales del sector, y se identifican las obligaciones de financiamiento del sector publico relacionadas con las IE. El analisis de la economia de las IE abarca la valuacion de los activos subterraneos, la interpretacion economica del mineral y la estructura de los mercados de la energia y los minerales. En este volumen se determinan las responsabilidades de las entidades gubernamentales correspondientes y se describen las caracteristicas de los marcos juridicos y normativos del sector de las IE. Se analizan brevemente las funciones clave y especificas del sector, ademas de las estructuras financieras que sustentan las salvaguardas ambientales y sociales; la inversion de los ingresos publicos provenientes del petroleo, el gas o los minerales, asi como la diversificacion economica basada en las industrias extractivas. Los autores esperan que este volumen resulte de utilidad a los economistas y los profesionales de las finanzas publicas que trabajan en paises ricos en recursos (incluidos los encargados de la toma de decisiones en ministerios de finanzas, organizaciones internacionales y otras entidades relevantes) para la comprension y el analisis del sector de las IE.

The extractive industries (EI) sector occupies an outsize space in the economies of many developing countries. Policy makers, economists and public finance professionals working in such countries are frequently confronted with issues that require an in-depth understanding of the sector, its economics, governance, and policy challenges, as well as the implications of natural resource wealth for fiscal and public financial management. The objective of the two-volume Essentials for Policy Makers, Economists and Public Finance Professionals, published in the World Bank Studies series, is to provide a concise overview of the EI-related topics these professionals are likely to encounter. This first volume, The Extractive Industries Sector, provides an overview of issues core to EI economics; discusses key components of the sector's governance, policy, and institutional frameworks; and identifies the public sector's EI-related financing obligations. Its discussion of EI economics covers the valuation of subsoil assets, the economic interpretation of ore, and the structure of energy and mineral markets. The volume maps the responsibilities of relevant government entities, and outlines the characteristics of the EI sector's legal and regulatory frameworks. Specific, key functions of the sector are briefly discussed, as are the financial structures that underpin environmental and social safeguards; investment of public revenues generated from oil, gas, or minerals; as well as extractive-based economic diversification. The authors hope that policy makers, economists and public finance professionals working in resource-rich countries?including decision makers in ministries of finance, international organizations, and other relevant entities?will find the volume useful to their understanding and analysis of the EI sector.

Depuis quelques dizaines d'annees, les pays en developpement riches en ressources naturelles utilisent ces dernieres en tant que garanties pour obtenir acces a des sources de financement pour leurs investissements. Ce rapport presente une analyse approfondie des operations menees dans le cadre de contrats de type IFR consideres sous l'angle.

In recent decades, resource-rich developing countries have been using their natural resources as collateral to access sources of finance for investment. This report provides an analytical discussion of RFI contracting from a project finance perspective.