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The East African : February 3rd 2014
14 DRAFT BILL Kenya seeks equity stake in mining companies Whe≥e a mine≥al ≥ight is fo≥ exploitation, the govt will acqui≥e a 10 pe≥ cent inte≥est in ope≥ations By KENNEDY SENELWA Special Correspondent operations, under the new regulations to be tabled in parliament this month for enactment. Where a mineral right is K for exploitation, the national government will acquire a 10 per cent interest in operations; but Kenya will not make any financial contribution for the stake, says the draft Mining Bill, 2013. The current law states that the government does not have a direct stake in mining deals. The proposed law seeks to retain the current arrangement where granting of licences is on a first-come firstserved basis, an approach that has been criticised because it gives mining rights to well-connected speculators who then sell them to real investors. Kenya has taken a differ- ent route for oil and gas contracts, where it is will adopt open tendering in awarding exploration licences. This is in accordance with recommendations by a team hired by the Ministry of Energy to enya is seeking an equity stake in all mining review the Petroleum Exploration and Production Act of 1986. Kenya’s Constitution re- quires all new oil and gas exploration rights that are negotiated with the Ministry of Energy to be ratified by parliament. Under the proposed law, the Mining Cabinet Secretary will also establish a sovereign fund account at the Central Bank of Kenya to provide support in times of economic stress as well as finance expenditure on pensions among other issues. At least 25 per cent of all mineral rights revenues including royalties, royalty sales proceeds, mineral revenue-sharing payments and bonuses received will be paid into this fund. The regulations are the lat- est proposed policy changes in the wake of increased exploration and mining interest in the East African region. In Uganda, a ban on issu- ance of new mining licences announced in 2012 is still in place. In Tanzania, firms are now required to pay at least 0.3 per cent of their annual turnover, up from the previous ceiling of $200,000, in rules adopted two years ago. Rwanda has been renegoti- NEW RULES The proposed law says the Mining Cabinet Secretary may, from time to time, gazette different minimum levels of local equity participation for certain minerals. By mid last year, Kenya had issued 780 exploration and mining licences. Some 10 sites are set for petroleum drilling this year. ating expired mining licences; the review could result in some companies losing lucrative contracts. In Kenya, a separate draft Bill, the Natural Resources (County Royalties) Bill 2013, aims to give 20 per cent of mining royalties to the county governments to avert the Mining Cabinet Secretary Najib Balala (left) and the chairman of the government task force on mining Mohammed Nyaoga on January 29. The task force was set up to review the prospecting, exploration and mining licence agreements. Picture: File perception of economic exclusion and avoid the resource curse. Some 75 per cent of royalties will go to the government, and 5 per cent directly to community projects in the area where the mining is carried out. “The new rules the minis- try is working on will encourage local and foreign investor participation, raise capacity in resource development as well as promote best practices in the minerals and mining sector,” Mining Cabinet Secretary Najib Balala said. The challenge facing the Kenyan government is to strike a balance between its national interests and encouraging investment. “The government must make money on behalf of the people of Kenya, and investors must get a return on their investments,” said Monica Gichuhi, the CEO of the Kenya Chamber of Mines. The proposed mining regu- lations also introduce a penalty that companies will forfeit to the government money budgeted for prospecting if they do not complete their work on schedule; the pro- vision has been opposed by investors. “Why risk declaring a large budget for exploring when any savings you make shall be government property? This is an unjust punishment for efficiency and innovation in prospecting,” said investors who asked not be named. According to the African Development Bank (AfDB), Kenya can become a hub for the extractive industry, but is still underexplored as mining is limited to a few minerals like soda ash, fluorspar, diatomite, limestone and gold. AfDB’s regional direc- tor Gabriel Negatu said the bank’s multidonor secretariat will engage stakeholders to identify solutions to explore the potential of developing the sector. “The oil, gas and miner- als sector has potential for generating revenues for the country,” Mr Negatu said. AfDB will help the gov- ernment build the capacity required to manage the flow of revenues, and address environmental and social issues regarding community resettlement and compensation, he said. Standard and Mutual’s di- rector of mining and metals Cliff Otega said the multiplier effect of local spending on goods and services by the extractive industry is an immediate benefit from exploration to exploitation. The EastAfrican NEWS FEBRUARY 1-7,2014 MINISTRY OF AGRICULTURE, LIVESTOCK & FISHERIES NATIONAL IRRIGATION BOARD ISO 9001:2008 Certified ADDENDUM NO. 02 PREQUALIFICATION OF CONTRACTORS TENDER NAME: CONSTRUCTION WORKS OF THE GALANA/KULALU FOOD SECURITY PROJECT, TANA RIVER & KILIFI COUNTIES, REPUBLIC OF KENYA TENDER NO. : NIB/T/083/2013-2014 1. Further to the publication of Invitation for Prequalification of Contractors for the above tender in the local dailies and NIB’s website: http://www.nib.or.ke/tenders on 6th January December 2013 and extension of the deadline for submission of applications from 1200 hours local time on 21st January 2014 to a new date of 1200 hours local time on 4th February 2014, the Procuring Entity, National Irrigation Board (Board) has further amended the section 2.4.6- Qualification Criteria (earlier amended on 16th 2014 through Addendum No 01) of the issued prequalification (PQ) document through Addendum No 02 to read the same as in the original PQ document: 2.4 Qualification Criteria; 2.4.6 Financial position: The applicant shall demonstrate that it has access to, or has available, liquid assets, unencumbered real assets, lines of credit and other financial means sufficient to meet the construction cash flow for a period of three (3) months, estimated at Kshs.500 million, net of the applicants’ commitments for other contracts. 2. The other details and requirements in the PQ document remain the same. Procuring Entity’s Address: General Manager National Irrigation Board (NIB) Unyunyizi House, First Floor, Room 309 Lenana Road, Hurlingham Nairobi, Kenya Tel: +254-20-2711380/468 Fax: +254-20-2722821/2711347/2723392 E-mail: firstname.lastname@example.org, email@example.com GENERAL MANAGER NATIONAL IRRIGATION BOARD. AGRICULTURAL DEVELOPMENT CORPORATION ISO 9001:2008 Certified REGIONAL MANAGER: Southern and East Africa Salary circa £42,000 per annum plus benefits of up to 16% Based Brighton, UK The International HIV/AIDS Alliance works with communities through local, national and global action on HIV, health and human rights. Our vision is a world without AIDS. We are seeking a Regional Manager to lead the identification, development, management, learning and reporting of the Alliance’s programme work in the region. The successful candidate will coordinate and enable efforts to support improved coverage, scope and quality of HIV and health integrated programmes for key populations and those most affected by gender-based violence. How to apply: For full details, please visit our website www.aidsalliance.org and click on ‘jobs’. Application deadline : Tuesday 18 February 2014 Interviews expected : Thursday 27 February 2014 The International HIV/AIDS Alliance is committed to equal opportunities and welcomes applications from appropriately qualified people from all sections of the community. Qualified people living with HIV are particularly encouraged to apply.
January 27th 2014
February 10th 2014