The Extractive Industries Source Book: about this project This a unique study on good practice issues in the development of hydrocarbons and mining resources in capital importing countries. It requires the creation of an internet-based database - the Extractive Industries Source Book - that will draw together and analyse ‘good practice’ in key activities in the international oil, gas and mining industries, such as awarding contracts, monitoring operations, collecting taxes and royalties, managing and allocating revenues and implementing sustainable development projects. The Aims The EI Source Book project will gather together diverse experiences from disparate sources, drawing on a wide variety of stakeholders, and make the results readily available to senior users in government departments in developing countries as well as civil society groups and decentralised, informal networks. It will contribute to capacity building and access to knowledge in these countries, especially in their relations with international investors. It will be interactive too, so that users of the EI Source Book can participate in its further development. A hard copy of the basic ‘Source Book Narrative’ will also be available.

1. Work in Progress
World Bank/University of Dundee
Oxford, September 14, 2010
Cape Town, September 17, 2010
Washington, January 6, 2011

2. EI Source Book-Background
EI Source Book
 “Paradox of Plenty” Wealth and underperformance
 Good governance, fiscal management, and sound policy
 What are good policies within EI sector management?
 Vast amount of published research on the topic
 Source Book is a collection of relevant and important documents
 EI Source Book will be an online, open-source, dynamic, concise, and comprehensive guide
 Notional handbook for EI-TAF staff and consultants
 Valuable tool for resource administrators, policy makers, civil society and other providers of
technical policy support to extractive industries
World Bank’s Extractive Industries Value Chain
The EI Value Chain illustrates the range of topics to be
addressed in formulating policies for the EI Sectors.
The EI Source Book is based on an expanded version of the
Value Chain approach to EI issues.

3. EI Source Book-Phase I
 Phase I includes six principal activities to be
undertaken during the first year of
development
1. Guiding Principles – Establish broad
principles to guide the creation of the EI
Source Book that supports sustainable
socioeconomic development
2. Literature Review - Undertake literature
review of key publications by World Bank, IMF,
and other sources related to good policies
within EI sector management
3. Framework – Create a simple, workable,
and multi-dimensional framework for policy
formation suitable for both petroleum and
mining industries
© Curt Carnemark / World Bank

4. EI Source Book-Phase I
4. Gap Analysis – Identify “Gaps” within
literature review and determine what additional
research is warranted to form a comprehensive
Source Book. Research to be undertaken in Phase
II
5. Consultations – Create opportunities for
stakeholders to engage in the development
process and to incorporate broader perspectives.
Includes government, industry, civil society, and
© Curt Carnemark/ World Bank
NGOs
The World Bank Group’s assistance to
the extractive industries is premised 6. Beta Source Book – Construct a “beta
on the belief that, properly managed, version” of the EI Source Book having full
the development and use of minerals functionality and applicability using a modest
can provide substantial benefits to its
subset of information derived from core World
client countries
Bank and IMF documents and other sources

5. EI Source Book-Partners
Strategy
 International collaborative approach
 Strategic partnerships with academic institutions
 Recognized for research within petroleum and
mining sectors
 Specialized sector knowledge, multiregional
contribution, unique expertise and perspective
Overall Management
 World Bank Oil, Gas and Mining Policy Unit,
Washington, D.C. © Scott Wallace/ World Bank
http://www.worldbank.org/
Lead Consultant
 The Centre for Energy, Petroleum and Mineral Law
and Policy (CEPMLP), University of Dundee,
Dundee, Scotland.
http://www.dundee.ac.uk/cepmlp/

8. • Source Book structure
• Content creation
• Source Book online
• Technical Issues
• Narrative
• Outline and content
• Resources
• References
• Documents
• Country briefs
• Preliminary Gap Analysis
• Website
• Snapshot
• Next steps

9.  Handbook targeted to consultants engaged on EI-TAF projects and client governments
 Academic institutions, CSOs and private sector will also benefit from involvement
 Living document, with initial content drawn from World Bank and select third-party knowledge
products, as distilled/structured by the University of Dundee
 This initial content/structure will be transferred into the EI-TAF Source Book online system
‘Core’ EI Source Book
Topic A.1
WBG and select Topic A
third-party
documents Topic A.2
reviewed and Topic B
distilled by Core Narrative
(Gap identified)
University of
Dundee
Topic C.1 Topic C

10.  Source Book will begin to take on a life of its own: sections will be updated, sub-sections
added, documents attached, and related areas cross-linked
 A potential strategy will be to maintain a core, ‘vetted’ EI Source Book, while filtering
external submissions and knowledge through reviewers or advisory body
Knowledge inflows Review function
‘Core’ EI Source Book
External user wiki
content
Topic A.1
Case study Topic A
Topic A.2
Third-party
research
Topic B
Topic B.1 Core Narrative
Project Documents (Gap filled)
from previous WBG
project
Workshop
Topic C.1 Topic C
Documents

11. • Introduction
• A. Resource Curse
• A.1 The Resource Curse phenomenon
• A.2 Technical factors
• A.3 Political factors
• B. Extractive Industries
• B.1 Common features
• B.2 Key differences

12. • Extractive Industries Value Chain
• C. Policy, Legal, Contractual and Regulatory
Framework
◦ C.1 Policy context
◦ C.2 Legislation
◦ C.3 Contracts
◦ C.4 Regulations
◦ C.5 Negotiations
◦ C.6 Disputes

13. • D. Sector Organization and Oversight
• D.1 Institutions
• D.2 National Resource Companies
• E. Fiscal Design, Instruments and
Administration
• Fiscal design
• Fiscal instruments
• Fiscal administration

14. • F. Revenue Management and Allocation
• F.1 Revenue and Asset Management
• F.2 Resource Funds
• F.3 Revenue Allocation
• G. Implementation of Sustainable
Development Policies and Projects
• G.1 Expenditure Policy and Implementation
• G.2 Expenditure Quality Control and Oversight

15. • Cross-Cutting Topics
• H. Social and Environmental Considerations
• Social concerns
• Environmental concerns
• I. Transparency and Accountability
• Benefits and Challenges
• Transparency Initiatives

16. • J. Institutional Capacity
• J.1 Capacity Requirements
• J.2 Delivering Capacity Building
• K. Consultation and Stakeholder Participation
• K.1 Role of consultation
• K.2 Civil society
• K.3 Parliament
• K.4 Industry
• K.5 Home Governments
• K.6 International Institutions (including IFIs)

17. • References
• 100+ references to books, articles, websites
• 70 reference summaries
• Collection of references and preparation of
summaries ongoing
• Documents
• Growing collection of policy statements, laws,
contracts and regulations
• Country Briefs
• Ongoing preparation of short briefs on country
experiences

18. • Baunsgaard, T., A Primer on Mineral Taxation, IMF Working Paper,
September 2001
• Boadway, R., Keen, M., Theoretical perspectives on resource taxation
design, in The Taxation of petroleum and Minerals: Principles,
Problems and Practice (Daniel, P., Keen, M., McPherson, C., (eds.)
Oxon, United Kingdom: Routledge, 2010)
• Calder, J., Resource tax administration: functions, procedures and
institutions, in The Taxation of petroleum and Minerals: Principles,
Problems and Practice (Daniel, P., Keen, M., McPherson, C., (eds.)
Oxon, United Kingdom: Routledge, 2010)
• Calder, J., Resource tax administration: the implications of
alternative policy choices , in The Taxation of petroleum and
Minerals: Principles, Problems and Practice (Daniel, P., Keen, M.,
McPherson, C., (eds.) Oxon, United Kingdom: Routledge, 2010)

20. In Preparation:
• Ghana
• Uganda
• Nigeria
• Botswana
• Brazil
• Chile

21.  Access issues
◦ Viewing Rights for all users, and Editing Rights for select users
◦ External (non-WBG) user access will be required
◦ Document hosted outside of WBG IT system
◦ Narrative handbook will complement on line information access
 Utility for users
◦ Online/offline use (Hardcopy/print-out may be needed by users in the field)
◦ Software platform robust, functional on older computers, and user-friendly
◦ Language translation may be required (likely limited to core document)
 Quality control
◦ Maintaining order and structure, while still allowing for dynamic content
◦ Need for caretaker and maintenance roles/guidelines to be established
◦ Review/consolidation procedure for core ‘vetted’ content (Advisory Group)
◦ Key risk is the document becoming unwieldy, structure undermined and/or poor content
 Next steps
◦ University of Dundee creates Phase 1 of EI Source Book, providing core structure for online
system
◦ Online system is chosen based on software ability to meet procedural and operational needs

25. • Stepped-up program of consultations
• Revise and expand Narrative
• Add selected references, documents and
country briefs
• Edit summaries
• Edit web page and revise as necessary
• Prepare Phase 2 (online version of Source
Book)

26. Contact Information
©iStockphoto.com/onurdongel
CEPMLP Contact Information
Peter Cameron – p.d.cameron@dundee.ac.uk
Charles McPherson – charles.mcpherson@gmail.com
EI-TAF Contact Information
Michael Stanley - mstanley@worldbank.org