Following requests for technical assistance from the Kenyan Government (GoK), and based on dialogue between a high-level mission from the Bank and the GoK (July 23 to 26, 2012), the Bank is planning assistance in three areas.

Firstly, through the African Legal Support Facility (ALSF), the Bank has been requested to provide: (i) technical support to review existing mineral and hydrocarbon-related contracts and agreements, and (ii) advisory support in current and future contract negotiations. Four specific areas of assistance were identified during consultations held the week of September 17, 2012 with GoK:

  1. Coal agreement negotiations with Fenxi/Jingu Coal Mining Co. Ltd. – ALSF to support (October 2012).
  2. Gas agreement negotiations and framework – ALSF to support negotiations with British Gas (November 2012).
  3. Mining legal framework – draft completed by Ministry of Environment and Mineral Resources; ALSF to analyze existing contracts in light of the proposed policy, legal and institutional framework, and create a model mining agreement going forward.
  4. ALSF legal advisors will also support the consultancy detailed below, by providing input based on existing negotiations and experience.

Secondly, the Bank is discussing with the GoK the possibility of recruiting a firm to provide technical assistance for a period of three months. The objective of this technical assistance is to provide the GoK with the necessary advice to develop a coherent policy, legal, regulatory and institutional framework that will:

  1. Ensure equitable, transparent and sustainable development and management of extractive industries and their related revenue streams, and
  2. Maximize revenues and benefits from the extractive industries for the Kenyan economy, both now and into the future, whilst mitigating any foreseeable risks.

More specifically, the consultancy will:

  1. Assess the current policy, legal, regulatory and institutional framework relevant to the extractive industries in Kenya;
  2. Conduct consultations with key stakeholders;
  3. Facilitate discussion across Government Agencies to ensure coherence;
  4. Recommend strategy, policy and draft legislation/regulations where necessary and in conformity with international best practice;
  5. Organize workshops to validate the agreed policies; and
  6. Recommend an implementation plan.

Finally, the Bank is preparing ToR to host a small Secretariat for managing information flows and related activities pertaining to Kenya’s extractive industries. This will enhance coordination between the GoK and other stakeholders including: development partners, civil society and the private sector.

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