THE IMPLEMENTATION MODALITIES OF THE FRAMEWORK AGREEMENT ON WEALTH SHARING

SIGNED AT NAIVASHA, KENYA, 31ST DECEMBER, 2004

A. Land Ownership

Activities

1. Institute a process to develop and amend the relevant laws to incorporate customary laws and practices.

Timing

During the Pre-Interim Period after the establishment of land commissions at all levels.

Executing Body

Land Commissions

Executive Bodies at all levels

Legislature at all levels

Funding Sources

NG

GOSS

States

International Community

Compositions and Location

Location:

Seats of land commissions, legislative and executive bodies

Procedures, Processes or Criteria

Land commissions to initiate the process and make recommendations to appropriate executive levels (NG, GOSS, and States).

Ministry of Justice (NG, GOSS) to facilitate and support the process.

Executive Bodies at all levels to approve and propose necessary bills to appropriate legislative bodies (NG, GOSS, and States) to promulgate amended laws within their respective powers.

Clause in the Agreement

2.5

Activities

2. Establish National Land Commission

Timing

After approval of Interim National Constitution

Executing Body

National Government and Presidency

Funding Sources

National Government

Donors and International Community

Compositions and Location

By the relevant legislation as per sub-section 2.6.10 of WSA

Location:

Khartoum

Procedures, Processes or Criteria

The process to be initiated by the Presidency with the facilitation and support from Ministry of Justice

National Land Commission Act

Clause in the Agreement

2.6

Activities

3. Establish Southern Sudan Land Commission

Timing

After establishment of GOSS

Executing Body

President of GOSS

Funding Sources

GOSS

Donors and International Community

Compositions and Location

By legislation of Southern Sudan as per sub-section 2.7.10 of WSA

Location:

The Seat of GOSS

Procedures, Processes or Criteria

Members recommended by GOSS and States

IGAD, IPF and World Bank/UNDP

Chaired by GOSS appointee

Decision by consensus

Clause in the Agreement

2.7

B. Oil Resources

Activities

1. Consultation and participation of communities in the management of natural resources

Timing

Pre-Interim Period

Executing Body

GOS

GOSS

State

NPC

Funding Sources

NG

GOSS

Compositions and Location

Joint Technical committee of equal member from GONU, GOSS and producing States

Procedures, Processes or Criteria

Create awareness on basic rights and process of participation and and consultation as per the CPA

Clause in the Agreement

3.1.2, 3.1.5, 3.1.6, 3.1.7

Activities

2. Establish National Petroleum Commission (NPC)

Timing

Two weeks after the adoption of the Interim National Constitution and consequent formation of GONU and GOSS

Executing Body

Presidency

Funding Sources

National Government

Compositions and Location

As provided in sub-section 3.3 of WSA

Location;

Khartoum

Procedures, Processes or Criteria

To review current relevant legislation in oil sector so as to bring it in line and to comply with the CPA

Clause in the Agreement

3.2

C. Existing Oil Contracts

Activities

SPLM appoint a technical team, to have access to existing oil contracts

Timing

D Day + 30 days

Executing Body

SPLM

Ministry of Energy and Mining

Funding Sources

SPLM

International Community

Compositions and Location

Technical Team of 6 members to be appointed by the SPLM

Technical Experts

Location:

The Seat of SPLM and contracts to be accessed in Khartoum

Procedures, Processes or Criteria

Decisions by consensus

Reporting to GOSS within D Day +60 days

Develop its internal regulations and procedures

Chaired by SPLM appointee

Sign confidentiality agreement as pre-condition as provided in sub-section 4.1 of WSA

Clause in the Agreement

4.1

Activities

2. Assess contracts with social and environmental problems

Timing

During the Pre-interim period and after the recommendation of the Technical Team as provided in sub-section 4.1 of WSA

Executing Body

Joint Technical committee (GOSS and National Government) to be appointed by National Petroleum Commission (NPC)

Funding Sources

National Government

Compositions and Location

Technical committee of equal members (National Government, GOSS and affected States)

Location:

Khartoum

Procedures, Processes or Criteria

The committee to set its own rules and regulation

Co-chaired by GONU and GOSS

May seek technical assistance

Decision by consensus

Reporting to the NPC after sits formation in D Day + 9 months ith actions taken within 60 days of the report.

Clause in the Agreement

4.3

Activities

3. Remedy of persons whose rights have been violated by oil contracts

Timing

Upon signing the CPA

Executing Body

Affected persons

Funding Sources

Compositions and Location

Procedures, Processes or Criteria

Legal process as provided in sub-section 4.5 of WPA

Clause in the Agreement

4.5

D. Sharing of Oil Revenue

Activities

1. Define “net revenue from oil”

Timing

During Implementation Modalities

Executing Body

The GOS and SPLM Delegation to the implementations Modality on WSA

Funding Sources

Compositions and Location

The GOS and SPLM Delegation to the implementations Modality on WSA

Procedures, Processes or Criteria

Agreed Text on the definition and calculation of the net oil revenue attached as an appendix to the Implementation Modalities of WSA

Clause in the Agreement

5.3

Activities

2. Establish a system to monitor daily production of oil in all Sudan

Timing

Upon signing of CPA and within 60 days

Executing Body

GOS

SPLM

Funding Sources

GOS

International Community

Compositions and Location

Joint Technical Committee composed of equal members from GOS and SPLM

Procedures, Processes or Criteria

The committee to review the existing monitoring system with a view of improving it and make necessary recommendations to NPC

Clause in the Agreement

5.3

Activities

3. Reveal to the SPLM production sharing formula between GOS and oil concessions

Timing

Upon signing of CPA and within 60 days

Executing Body

GOS

Funding Sources

Compositions and Location

GOS

Procedures, Processes or Criteria

GOS will reveal this information to the SPLM Technical Team after signing confidentiality agreement

Clause in the Agreement

5.3

Activities

4.a Agree on a mechanism to monitor Oil Revenue Stabilization Account (ORSA)

Timing

Upon signing of CPA and within 60 days

Executing Body

Joint Technical Committee

Funding Sources

Compositions and Location

Equal Members from GOS ad SPLM/GOSS

Procedures, Processes or Criteria

To determine implementation of the mechanism to monitor ORSA

Agree on coverage period of accumulated amount

Agree on method of having access and withdrawal by National Government and GOSS to the ORSA

Negotiations

Building consensus

Clause in the Agreement

5.4

Activities

4.b Agree on the benchmark price for 2005

Timing

Upon signing of CPA and within the IMF quarterly review

Executing Body

Joint Technical Team from GOS and SPLM

Funding Sources

Compositions and Location

Equal members from GOS and SPLM

Procedures, Processes or Criteria

Co-chaired

Building consensus

Approach and discuss with the IMF the agreed benchmark price through the GONU

Clause in the Agreement

Activities

4.c Agree on the annual benchmark price

Timing

Annually within the budget process

Executing Body

NG

GOSS

CBOS

Funding Sources

Compositions and Location

National Ministry of Finance

GOSS Ministry of Finance

CBOS

Procedures, Processes or Criteria

GOSS to fully participate in the determination of the benchmark price.

NG and GOSS to build a consensus on a benchmark price before discussion with the IMF

Benchmark to be determined within the national macroeconomic framework.

After building consensus on the benchmark price with GOSSS, NG with representation of GOSS to negotiate with IMF the final benchmark.

Clause in the Agreement

Activities

5. Establish a system to calculation and monitor oil revenue.

Timing

Upon signing of CPA and within 30 days

Executing Body

GOS

SPLM

Funding Sources

GOS

International Community

Compositions and Location

Joint Technical Committee composed of equal members from GOS and SPLM

Procedures, Processes or Criteria

The committee to review the existing system with a view of improving it and make necessary recommendations to NPC.

Clause in the Agreement

5.3

Activities

6. Transfer of (2%) of producing State share of net oil revenue.

Timing

D Day

Executing Body

National Ministry of Finance for Oil Producing State in the North

Ministry of Finance of GOSS for Southern Sudan Oil Producing States

Funding Sources

Compositions and Location

Procedures, Processes or Criteria

Transfer to start after establishing governments of the States.

Money to be transferred monthly according to actual receipt of revenue.

MOF (NG and GOSS) will transfer to States through their designated accounts.

Ministries of Finance of Producing States in the South shall open accounts in the BOSS in which MOF of GOSS shall transfer 2% of oil revenue.

Clause in the Agreement

5.5

Activities

7. Transfer of the GOSS share of 50% of net oil revenue.

Timing

D Day

Executing Body

Oil Revenue Allocation Committee composed of MOF (NG, SPLM/GOSS), NPC, COS, BOSS and relevant States.

Funding Sources

NPC

Compositions and Location

Location:

National MOF Khartoum

Procedures, Processes or Criteria

The Committee to calculate the actual share of each Party in accordance with CPA and to ensure the transfer of these shares.

GOSS prepares its Foreign Exchange budget requirements within the overall approved budget shall be incorporated in CBOS Foreign Exchange Budget.

Foreign Exchange of GOSS is considered part of the National Reserve.

GOSS shall use its share of this National Reserve to meet its Foreign Exchange requirements.

All domestic operations and transactions of GOSS shall be in the national currency and any other circulating currencies in Southern Sudan until a new currency is issued as per sub-section 14.9 of WPA provided that GOSS foreign exchange transactions should only be conducted through BOSS.

CBOS shall authorize BOSS to open foreign correspondent account in a prime bank of the latter’s choice in favour of GOSS.

This authorization shall include instruction to the foreign correspondent to provide the CBOS with a copy of the statement of the weekly position of this account.

GOSS all foreign exchange resources shall be deposited in this foreign correspondent account as mentioned above.

BOSS shall mange this account on the basis of the best banking practices in favour of GOSS and disburse it in a way to ensure marco-economic stability and national monetary policy objectives and requirements.

BOSS shall provide CBOS with relevant data as per sub-section 14.4 of Wealth Sharing Agreement.

Clause in the Agreement

5.6

Activities

8. Establish Future Generation Fund

Timing

Upon reaching a ceiling of 2 million barrels a day production.

Executing Body

Joint Technical Team (GOS and GOSS)

Funding Sources

National Government

GOSS

Compositions and Location

Equal members from NG and GOSS

Procedures, Processes or Criteria

Joint Team to be appointed by the Presidency

Decision by consensus

Establish internal regulations and procedures.

Co-chairing between the GOSS and NG

Report regularly to Presidency.

Clause in the Agreement

5.7

Activities

E. Sharing of Non-oil Revenue

1. Collection of non-oil revenue by GOSS and states

Timing

After establishment of GOSS and governments of Sudan

Executing Body

Ministry of Finance of GOSS

Ministry of Finance of States

Funding Sources

GOSS

States

Compositions and Location

Procedures, Processes or Criteria

GOSS and States to start collecting revenue as spelled out in the WSA in sub-sections 6.2 and 6.3.

Amending national taxation laws within 60 days after signing of CPA to conform to the WSA.

Clause in the Agreement

6.2, 6.3

Activities

F. Equalization & Allocation of Nationally collected Revenues

1. Establishment of National Revenue fund (NRF)

Timing

D Day + 1

Executing Body

National Ministry of Finance

Funding Sources

Compositions and Location

Procedures, Processes or Criteria

Account to be in CBOS administered by Ministry of Finance for all revenues collected by the NG including net oil revenue due to GONU

Clause in the Agreement

7.1

Activities

2. Agree on mechanisms to transfer to GOSS 50% of national non-oil revenues collected in Southern Sudan.

Timing

After establishment of GOSS

Executing Body

National Ministry of Finance

Fiscal and Financial Allocation and Monitoring Commission (FFAMC)

Funding Sources

GONU

Compositions and Location

As provided in sub-section 7.3 and 8.3 WSA

Procedures, Processes or Criteria

The National Ministry of Finance will open a account in BOSS and instruct national bodies in charge of collecting national non-oil revenues, taking consideration cost effectiveness, to collect national non-oil revenues in the South and to be deposited in the designated account, after deducting collection charges.

The National Ministry of finance shall instruct BOSS to transfer 50% of revenues deposited in the above account to Ministry of Finance of GOSS, and the remaining 50% to be transferred to the National Revenue Fund.

Account of the national non-oil revenues collected in the South will be submitted to FFAMC on quarterly basis.

Clause in the Agreement

7.3

Activities

3. Review of allocation of 50% of national non-oil revenue collected in Southern Sudan to GOSS.

Timing

Mid-term Interim Period

Executing Body

Joint Technical Committee (National Ministry of Finance and Ministry of Finance of GOSS)

Funding Sources

National Government

Compositions and Location

Equal Members (GOSS and GONU)

Procedures, Processes or Criteria

Disagreement to be resolved by FFAMC

FFAMC to initiate the process.

Co-Chair between GONU and GOSS

Decision by consensus

Set its own regulations and procedures

Report back to the FFAMC within the month after its establishment

Seek relevant international assistance.

Clause in the Agreement

7.3

Activities

4. Agree on n approach to appeal for donor funds for reconstruction of South Sudan

Timing

Immediately before signing of CPA

Executing Body

Joint Technical Mission (JAM) Core Coordinating Group (CCG)

Funding Sources

National Government

International Community

Compositions and Location

JAM CCG

Procedures, Processes or Criteria

JAM Core Coordination Group to initiate appeal strategy programme.

Clause in the Agreement

7.4

Activities

G. Fiscal and Financial Allocation and Monitoring Commission (FFAMC)

1. Establish FFAMC

Timing

Pre-Interim Period after National Constitution Review Commission (NCRC) report approved as per sub-section 2.10.1.6 and 2.12.9 of Power Sharing Protocol

Executing Body

National Government GOSS and States

Presidency to appoint the Chairperson

Funding Sources

National Government

International Community

Compositions and Location

As provided in sub-section 8.3 of WSA

Location:

Khartoum

Procedures, Processes or Criteria

As provided in sub-section 8.4 and 8.5 of the Wealth Sharing Agreement

Clause in the Agreement

8.1

Activities

2. Establish formulae for allocating resources to war affected areas

Timing

Pre-Interim period after establishing FFAMC

Executing Body

FFAMC

Funding Sources

GONU

International Community

Compositions and Location

FFAMC and may establish technical committee if necessary

Procedures, Processes or Criteria

Formulae to be determined by FFAMC after receiving technical assistance report as per sub-section 8.10 of the Two Areas Protocol

Clause in the Agreement

8.2.3

Activities

H. Division of Government Assets

1. Establish a joint technical committee to assess and allocate assets between various levels of government.

Timing

After establishment of GONU and GOSS and when disputes arise

Executing Body

Joint Technical Committees for each level of government

Funding Sources

Compositions and Location

As provided in sub-section 11.1 of WSA

Procedures, Processes or Criteria

Assets to be divided according to the function of each level of government as in schedules of powers A, B and C.

In each case of conflict joint technical committees will be formed from each party involved in the dispute and mutually agreed expert Committees should observe schedules A, B, C, D, E and F of powers

Decision by consensus

Set its own regulations and procedures

Clause in the Agreement

11.1

Activities

I. Accounting Standards

1. Establish National and Southern Sudan Audit Chambers

Timing

Immediately after establishment of GONU and GOSS

Executing Body

Presidency

National Assembly

GOSS

Funding Sources

National Government

GOSS

Compositions and Location

As provided in sub-section12.2 of WSA

Procedures, Processes or Criteria

As provided in sub-section 12.2 of WSA

Until establishment of audit chambers status quo will continue.

Clause in the Agreement

12.2

Activities

K. Financing the transition

1. National Government assists the SPLM/A in the establishment of the new transitional governments at GOSS and State levels

Timing

After signing the CPA

Executing Body

National Government

Joint National Transition Team (JNTT)

Funding Sources

International Community

Compositions and Location

Procedures, Processes or Criteria

National Government will provide technical assistance to the extent possible

SPLM prepares financial basic urgent needs for the Pre-Interim Period.

The estimated amount of the urgent needs to be presented to the International Community for funding.

Clause in the Agreement

13.1

Activities

2. Establish a Joint National Transition Teams

Timing

Upon signature of CPA

Executing Body

GOS (President of the Sudan)

SPLM Chairman

Funding Sources

GOS

International Community

Compositions and Location

Equal members from GOS and SPLM

Location:

To be agreed upon by the Parties

Procedures, Processes or Criteria

JAM –CCG non-Sudanese members to be observers

Co-chaired by GOS and SPLM

Free access to all places in Sudan for data collection

Reporting to the leadership of the two parties

May seek relevant technical assistance

Decision by consensus

Set its own regulations and procedures

Clause in the Agreement

13.2

Activities

L. Banking & Currency

1. Enact/modify legislation to set up a dual banking system

Timing

Immediately upon signing CPA and within 90 days

Executing Body

National Legislature

Funding Sources

CBOS

Compositions and Location

Technical teams of equal numbers from National Government (CBOS) and GOSS

Procedures, Processes or Criteria

CBOS to initiate the process

Recommended amendments in all relevant laws to comply with the CPA.

Chair to be agreed upon by GONU (CBOS) and GOSS

Technical team Appointed by the Presidency.

Decision by consensus

Set its own regulations and procedures.

Clause in the Agreement

14.1

Activities

2. Appoint Board of Directors (BOD) of Central Banks of Sudan (CBOS)

Timing

Immediately within one week after ratification of CBOS Act

Executing Body

Presidency

Funding Sources

CBOS

Compositions and Location

As provided in sub-section 14.8b of WSA

Procedures, Processes or Criteria

According to provision 14.8 of the Wealth Sharing Agreement

Decisions on matters that may affect adversely the interests of either Party to WSA shall be by consensus.

Clause in the Agreement

14.8

Activities

3. Restructure CBOS

Timing

Within 30 days after appointment of BOD

Executing Body

CBOS BOD

Funding Sources

CBOS

Compositions and Location

CBOS BOD

Procedures, Processes or Criteria

Restructuring CBOS banking system, general administration and departments and their functions to comply with the CPA.

Clause in the Agreement

14.3

Activities

4. Establish Bank of South Sudan (BOSS)

Timing

Within 30 days after appointment of BOD

Executing Body

CBOS BOD

Funding Sources

CBOS

International Community

Compositions and Location

Location:

Seat of GOSS

Procedures, Processes or Criteria

BOSS shall perform all activities stated in WSA to manage conventional banking in South Sudan.

BOSS shall manage these activities as a window of CBOS and in accordance with CBOS rules and regulations as per WSA.

In performing these activities, the Deputy Governor of CBOS who is heading BOSS shall be accountable to the Governor of CBOS.

Clause in the Agreement

14.2, 14.10

Activities

5.a Establish a joint committee to design national currency.

Timing

Immediately upon signing CPA

Executing Body

Joint Technical Committee from (GOS and SPLM)

Funding Sources

Donors

Compositions and Location

Technical Team of equal members (GOS and SPLM)

Procedures, Processes or Criteria

Co-chaired by GOS and SPLM

Decision by consensus

Reporting within 60 Days

Clause in the Agreement

14.9

Activities

5.b Assess circulating currencies in South Sudan

Timing

Within 30 days after signing to CPA

Executing Body

Joint Technical Committee (GOS, SPLM)

Funding Sources

GOS

Donors

Compositions and Location

Equal members (GOS, SPLM) and technical experts to be agreed upon

Procedures, Processes or Criteria

Co-chaired by GOS and SPLM

Decision by consensus

Reporting within 60 Days to CBOS

Clause in the Agreement

Activities

5.c Issuing new currency

Timing

After designing and assessing currencies circulating in South Sudan

Executing Body

CBOS

Funding Sources

International Community

NG

Compositions and Location

Procedures, Processes or Criteria

Printing will start within one month after designing, plating and engraving will finish within 18 months.

CBOS will create awareness about the new currency

CBOS and BOSS to agree on preparation and arrangement for replacement of the circulating currencies in South Sudan.

Priority will be given to meet currency demand and replacement of the circulating currencies in South Sudan.

Clause in the Agreement

Activities

M. Borrowing

1. Enact borrowing standards and requirements by CBOS

Timing

After amendment of CBOS Act to comply with the CAP and after establishment of GOSS and States.

Executing Body

CBOS BOD

Funding Sources

CBOS

Compositions and Location

CBOS BOD and technical experts if needed

Procedures, Processes or Criteria

To be determined by CBOS BOD

Reporting within 30 Days after the appointment of the CBOS BOD

Clause in the Agreement

6.2.13, 14.1, 14.15, 14.16

Activities

N. Reconstruction & Development Funds

1. Establish South Sudan Reconstruction and Development Fund (SSRDF)

Timing

After establishment of GOSS

Executing Body

SPLM Economic Commission/ GOSS

Funding Sources

GOSS Revenues

Direct bilateral Grants

Low Income Countries Under Stress (LICUS)

Compositions and Location

Steering Committee appointed by President of GOSS and including Ministry of GOSS, South Sudan Audit Chamber, all Southern States representatives of donors, representatives of national MOF and National Audit Chamber as provided in sub-section 15.3.

of WSA.

Procedures, Processes or Criteria

The procedures related to SSRDF shall be similar to the procedures provided in activity D.7 of transfer of 50% of net oil revenues to GOSS.

SPLM to establish a committee to initiate the process of establishing SSDRF

Clause in the Agreement

15.1

Activities

Establish monitoring and evaluation system for accountability and transparency

Timing

Pre-Interim Period

Executing Body

GOSS

Project Implementation Authority

Funding Sources

LICUS

International community and donors

Compositions and Location

Oversight committee appointed by the SPLM Chairman or President of GOSS

Procedures, Processes or Criteria

Oversight committee appointed by GOSS as per subsection 15.3 of WSA to establish accountability and transparency monitoring and evaluation system

Clause in the Agreement

15.2

Activities

3. Establish an oversight committee for SSRDF

Timing

Pre-Interim Period and after the establishment of SSDRF

Executing Body

GOSS

Funding Sources

GOSS

SSMDTF

Donors

Compositions and Location

Ministry of Finance of (National (1) GOSS (2) and Southern States (10))

Southern Sudan Audit Chamber (1)

International Community (1)

Procedures, Processes or Criteria

Chaired by Ministry of Finance of GOSS

Internal and decision making procedures to be established by the Committee after its establishment.

Clause in the Agreement

15.3

Activities

4. Establish National Reconstruction and Development Fund (NRDF)

Timing

Pre-Interim Period

Executing Body

Ministry of Finance

JNTT

Funding Sources

GOS

Donors

NMDTF

Compositions and Location

Technical steering committee composed of Ministry of Finance (National and GOSS), Ministry of International Corporation, Audit Chambers (National and GOSS), representatives of war-affected States and least developed States in the North, one representative of international community if agreed upon by the technical steering committee

Procedures, Processes or Criteria

Annual resource envelope to be determine within the budget.

Priority projects can be submitted to NMDTF.

Chaired by National Ministry of Finance

Allocation as spelled in 8.6 and 8.7 of the Two States Protocol.

May seek technical assistance when necessary.

Clause in the Agreement

15.4

Activities

5. Establishment of two multi-donor trust funds (MDTFs)- one for Southern Sudan and other national.

Timing

Pre-Interim Period before the donors conference

Executing Body

National MDTF (National Government and World Bank)

South Sudan MDTF (SPLM/GOS and World Bank)

Funding Sources

International Community

Compositions and Location

National MDTF

Management consists of:

MDTF Donors Group for coordination, consultation and mobilization

Oversight committee (NG and Donors) and observer from GOSS/SPLM

Technical Secretariat (WB Administrator, NG designated body)

Programme Implementation Agency:

NG

South Sudan MDTF

Management consists of:

MDTF Donors Group.

Oversight Committee (SPLM/GOSS, Donors) and observer from NG.

Technical Secretariat (WB administrator, SPLM/GOSS designated bodies).

Programme Implementation Agency:

SPLM/GOSS

Procedures, Processes or Criteria

Governance including fiduciary to be set by World Bank and National Government for NMDTF and SPLM/GOSS for SSMDTF in consultation with International Community and stakeholders.

NG to determine projects to be implemented by UN agencies, NGOs, local governments, communities, National Government agencies, private sector and others in the North.

SPLM/GOSS to determine projects to be implemented by UN agencies, NGOs, local governments, communities, SPLM/GOSS agencies, private sector and others in the South.

UN Agencies to be allowed to operate within their rules and regulations with special arrangement on external audit to be agreed between World Bank and UN.

Earmarking will not be allowed but sectoral preference can be expressed.

Project Implementation Agency to assign and oversee project implementation by a variety of entities.

Clause in the Agreement

15.5

Activities

6. Set criteria for eligible financing from MDTFs

Timing

Pre-Interim Period before the donors conference

Executing Body

To be determined by MDTF systems

Funding Sources

Donors

Compositions and Location

Procedures, Processes or Criteria

To be determined by MDTF systems in accordance with the findings of the JAM.

Priorities will include:

Programmes submitted to MDTFs are part of annual budget and determined by NG and SPLM/GOSS in consultation with MDTF Steering Committees respectively.

Rehabilitation and reconstruction in war affected areas

Rehabilitation and reconstruction in least developed areas

Priorities of Poverty Eradication Strategy Concept Note.

Capacity Building and decentralization

Peace Building and security (DDR, IDPS,..etc).

Clause in the Agreement

15.7

Activities

7. Establishment of special accounts in a commercial bank in Southern Sudan for GOSS

Timing

Pre-interim Period

Executing Body

Ministry of Finance of GOSS

Funding Sources

Compositions and Location

Procedures, Processes or Criteria

As provided in suib-section 15.11 of WSA

Clause in the Agreement

15.11

Appendix

Implementation Modalities of Wealth Sharing Agreement Definition and Calculation of Net Oil Revenue

1. General Definitions:

(a) Cost Oil:

It is a percentage from the daily production to cover the production cost (exploration, development and operating cost).

Exploration and development costs are classified as capital cost amortized within four years.

The operating cost is paid annually.

If the cost oil is greater than the recoverable cost (actual cost) the difference (Excess Oil) will be added to the government share.

If recoverable cost is greater than the cost oil then the difference shall be carried over for the next year.

However the Division of Excess Oil between the Government and Contractors is subject to the variables of each agreement.

(b) Profit Oil:

It is the remaining balance from the daily production after deducting the cost oil.

(c) Government Share:

It is the percentage share of the government from the profit oil after deducting the contractor' s share that is subject to contract agreements.

It increases with the increase in production.

(d) Government Entitlement:

It consists, at Intake Point, of (Government Share plus excess oil plus under lifting less over lifting).

Part of the Government Entitlement is either used for local refineries or for export.

(e) Intake Point:

is the injection point between the pipeline network operated by contractor under the Agreement and the transportation system operated by or under the control of the transporter.

2. Calculation of Government Net Oil Revenue:

Government Entitlement x Export price3

Less Tariff (transport/pipeline fee)

Less Management fee

Equal Government net oil revenue

3. Calculation of Oil Revenue Stabilization Fund:

Government Net Oil Revenue from export

Less Actual Export Quantities x benchmark price

Equal Total Oil Revenue Stabilization Fund

4. Government Net Oil Revenue Available for Allocation:

Government net oil revenue

3 Export shall be valued at the actual Free On Board (FOB) export price and oil delivered to the refineries shall be valued at the average FOB export price of the last calendar month.