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AGREEMENT ON WEALTH SHARING DURING THE PRE-INTERIM AND INTERIM PERIOD

01-09-2004, 11:53 AM

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تاريخ التسجيل: 10-01-2003
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AGREEMENT ON WEALTH SHARING DURING THE PRE-INTERIM AND INTERIM PERIOD

    AGREEMENT ON WEALTH SHARING DURING THE PRE-INTERIM AND INTERIM
    PERIOD

    1

    Naivasha, Kenya: Wednesday, January 7th, 2004.


    WHEREAS the Government of the Republic of the Sudan and the Sudan
    People's Liberation Movement/Sudan People's Liberation Army (the
    Parties)
    have been conducting negotiations in Naivasha, Kenya, since 6th
    December,
    2003, under the auspices of the IGAD Peace mediated Process; and having
    taken up the division of wealth in pursuit of a comprehensive
    agreement,
    that will ensure a just and durable peace in the Sudan;

    NOW RECORD THAT they have reached agreement on Wealth Sharing,
    covering
    the division of oil and non-oil revenues, the management of the oil
    sector,
    the monetary authority and the reconstruction of the South and other
    war-affected areas during the Pre-Interim and Interim Period;

    THE PARTIES AGREE AND CONFIRM THAT they are determined to build on
    this
    important Agreement until a comprehensive peace Agreement is reached.
    It is
    within this context, that the Parties agree to continue negotiations on
    the
    remaining outstanding issues on the Conflict Areas and Power Sharing
    and
    subsequently negotiate a comprehensive ceasefire Agreement and
    Implementation Modalities in order to achieve a final comprehensive
    Peace
    Agreement in the Sudan.
    __________________________ __________________________

    Hon. Idris Mohamed Abdelgadir Cdr. Nhial Deng Nhial
    For: The Government of the Sudan For: The Sudan People's Liberation
    Movement/Army
    ________________________________

    WITNESSED BY: Lt. Gen. Lazaro K. Sumbeiywo (Rtd)
    Special Envoy IGAD Sudan Peace Process and
    On behalf of the IGAD Envoys.
    __________________________________________

    Framework Agreement on Wealth Sharing During the Pre-Interim and
    Interim
    Period Between The Government of the Sudan (GOS) And The Sudan
    People's
    Liberation Movement/Sudan People's Liberation Army
    (SPLM/A)


    Venue: Lake Naivasha Simba Lodge, Naivasha, Kenya. Date: 7th January,
    2004.


    WEALTH SHARING

    1.0 GUIDING PRINCIPLES IN RESPECT OF AN EQUITABLE SHARING OF COMMON
    WEALTH.
    1.1 The Parties agree that the guiding principles and provisions below
    shall
    be the basis for the comprehensive text on Wealth Sharing.

    1.2 The wealth of Sudan shall be shared equitably so as to enable each
    level
    of government to discharge its legal and constitutional
    responsibilities and
    duties.

    1.3 The National Government shall also fulfil its obligation to provide
    transfers to the Government of Southern Sudan.

    1.4 The sharing and allocation of wealth emanating from the resources
    of the
    Sudan shall ensure that the quality of life, dignity and living
    conditions
    of all the citizens are promoted without discrimination on grounds of
    gender, race, religion, political affiliation, ethnicity, language, or
    region. The sharing and allocation of this wealth shall be based on the
    premise that all parts of Sudan are entitled to development.

    1.5 The Parties agree that Southern Sudan faces serious needs to: (i)
    be
    able to perform basic government functions, (ii) build up the civil
    administration, and (iii) rehabilitate and reconstruct/construct the
    social
    and physical infrastructure in a post-conflict Sudan.

    1.6 The Parties agree that Nuba Mountains, Southern Blue Nile, Abyei
    and
    other war affected areas face serious needs to: (i) be able to perform
    basic
    government functions, (ii) establish and build civil administration and
    (iii) rehabilitate and reconstruct/construct the social and physical
    infrastructure in a post-conflict Sudan.

    1.7 That, without prejudice to the provisions of paragraph 1.3 herein,
    Southern Sudan, and those areas in need of construction/reconstruction,
    shall be brought up to the same average level of socio-economic and
    public
    services standard as the Northern states. To achieve these objectives
    will
    take time and effort to build up local institutional, human, and
    economic
    capacity. For this purpose, two special funds shall be established as
    provided herein.

    1.8 That revenue sharing should reflect a commitment to devolution of
    power
    and decentralisation of decision-making in regard to development,
    service
    delivery and governance.

    1.9 The development of infrastructure, human resources, sustainable
    economic
    development and the capacity to meet human needs shall be conducted
    within a
    framework of transparent and accountable government.

    1.10 That the best known practices in the sustainable utilization and
    control of natural resources shall be followed.

    1.11 This Agreement sets out the respective types of income, revenue,
    taxes
    and other sources of wealth to which the various levels of government
    are
    entitled.

    1.12 The Parties recognize that the National Government, during the
    Interim
    Period, will need to mobilize additional national resources.

    1.13 There is a limit on how much additional national resources can be
    mobilized and part of the national needs in a post-conflict Sudan will
    have
    to be met by external assistance.

    1.14 The National Government shall not withhold an allocation due to a
    state/region[1] or the Government of Southern Sudan. Any level of
    Government
    may initiate proceedings in the Constitutional Court should any other
    organ
    or level withhold monies due to it. The National Government shall make
    transfers to the Government of Southern Sudan based on the principles
    established.

    1.15 In agreeing to these wealth sharing arrangements the Parties
    signal to
    the international community that it will have to play a strong and
    constructive role in providing post-conflict construction/
    reconstruction
    assistance to Sudan, especially to Southern Sudan and other war
    affected and
    least developed areas.

    1.16 The National Government shall assist the Government of Southern
    Sudan,
    during the pre-Interim Period, in cooperation with international
    organizations, to develop and implement a program for capacity
    enhancement
    in the South. The highest priority should be public finance and
    intergovernmental relations, including expenditure management to ensure
    accountability.

    2.0 OWNERSHIP OF LAND AND NATURAL RESOURCES
    2.1 Without prejudice to the position of the Parties with respect to
    ownership of land and subterranean natural resources, including in
    Southern
    Sudan, this Agreement is not intended to address the ownership of those
    resources. The Parties agree to establish a process to resolve this
    issue.

    2.2. The Parties agree that the regulation, management, and the
    process
    for the sharing of wealth from subterranean natural resources are
    addressed
    below.

    2.3. The Parties record that the regulation of land tenure, usage and
    exercise of rights in land is to be a concurrent competency exercised
    at the
    appropriate levels of government.

    2.4. Rights in land owned by the Government of Sudan shall be
    exercised
    through the appropriate or designated levels of Government.

    2.5. The Parties agree that a process be instituted to progressively
    develop and amend the relevant laws to incorporate customary laws and
    practices, local heritage and international trends and practices.

    2.6 Without prejudice to the jurisdiction of courts, there shall be
    established a National Land Commission that shall have the following
    functions:

    2.6.1 Arbitrate between willing contending Parties on claims over
    land,
    and sort out such claims.

    2.6.2 The party or group making claims in respect of land may make a
    claim
    against the relevant government and/or other Parties interested in the
    land.

    2.6.3 The National Land Commission may at its discretion entertain
    such
    claims.

    2.6.4 The Parties to the arbitration shall be bound by the decision
    of the
    National Land Commission on mutual consent and upon registration of the
    award in a court of law.

    2.6.5 The National Land Commission shall apply the law applicable in
    the
    locality where the land is situated or such other law as the Parties to
    the
    arbitration agree, including principles of equity.

    2.6.6 Accept references on request from the relevant government, or
    in the
    process of resolving claims, and make recommendations to the
    appropriate
    levels of government concerning:
    2.6.6.1 Land reform policies;
    2.6.6.2 Recognition of customary land rights and/or law.
    2.6.7 Assess appropriate land compensation, which need not
    be
    limited to monetary compensation, for applicants in the course of
    arbitration or in the course of a reference from a court.
    2.6.8 Advise different levels of government on how to
    co-ordinate
    policies on national projects.
    2.6.9 Study and record land use practices in areas where
    natural
    resource exploitation occurs.
    2.6.10 The National Land Commission shall be representative
    andind ependent. The composition of the membership and terms of
    appointment
    of the National Land Commission shall be set by the legislation
    constituting
    it. The Chairperson of the National Land Commission shall be appointed
    by
    the Presidency.
    2.6.11 The National Land Commission may conduct hearings and
    formulate its own rules of procedure.
    2.6.12 The National Land Commission will have its budget
    approved
    by the Presidency and will be accountable to the Presidency for the due
    performance of its functions.

    2.7 In accordance with this Agreement and without prejudice to the
    jurisdiction of courts, there shall be established a Southern Sudan
    Land
    Commission which shall have the following functions:
    2.7.1 Arbitrate between willing contending Parties on claims
    over
    land, and sort out such claims.
    2.7.2 The party or group making claims in respect of land may
    make a
    claim against the relevant government and/or other Parties interested
    in the
    land.

    2.7.3 The Southern Sudan Land Commission may entertain such claims at
    its
    discretion.

    2.7.4 The Parties to the arbitration shall be bound by the Southern
    Sudan
    Land Commission's decision on mutual consent and upon registration of
    the
    award in a court of law.

    2.7.5 The Southern Sudan Land Commission shall apply the law
    applicable in
    the locality where the land is situated or such other law as the
    Parties to
    the arbitration agree, including principles of equity.

    2.7.6 Accept references on request from the relevant government, or
    in the
    process of resolving claims, and make recommendations to the
    appropriate
    levels of government concerning:
    2.7.6.1 Land reform policies;
    2.7.6.2 Recognition of customary land rights and/or law.
    2.7.7 Assess appropriate land compensation, which need not be
    limited
    to monetary compensation, for applicants in the course of arbitration
    or in
    the course of a reference from a court.
    2.7.8 Advise different levels of government on how to co-ordinate
    policies on GOSS projects.
    2.7.9 Study and record land use practices in areas where natural
    resource exploitation occurs.
    2.7.10 The Southern Sudan Land Commission shall be representative
    and
    independent. The composition of the membership and terms of appointment
    of
    the Southern Sudan Land Commission shall be set by the legislation
    constituting it. The Chairperson of the Southern Sudan Land Commission
    shall
    be appointed by the President of the Government of Southern Sudan.
    2.7.11 The Southern Sudan Land Commission may conduct hearings
    and
    formulate its own rules of procedure.
    2.7.12 The Southern Sudan Land Commission shall have its budget
    approved by the Government of Southern Sudan and shall be accountable
    to the
    President of the Government of Southern Sudan for the due performance
    of its
    functions.

    2.8 The National Land Commission and the Southern Sudan Land
    Commission
    shall co-operate and co-ordinate their activities so as to use their
    resources efficiently. Without limiting the matters of coordination,
    the
    National Land Commission and the Southern Sudan Land Commission may
    agree:
    a) to exchange information and decisions of each Commission;
    b) that certain functions of the National Land Commission,
    including
    collection of data and research, may be carried out through the
    Southern
    Sudan Land Commission;
    c) on the way in which any conflict between the findings or
    recommendations of each Commission may be resolved.

    2.9 In the case of conflict between the findings or recommendations of
    the
    National Land Commission and the Southern Sudan Land Commission, which
    cannot be resolved by agreement, the two Commissions shall reconcile
    their
    positions. Failure to reconcile, the matter shall be referred to the
    Constitutional Court.


    3.0 OIL RESOURCES

    A. Guiding Principles for the management and development of the
    petroleum
    sector
    3.1 The Parties agree that the basis for an agreed and definitive
    framework
    for the management of the development of the petroleum sector during
    the
    Interim Period shall include the following:
    3.1.1 Sustainable utilization of oil as a non-renewable natural
    resource
    consistent with:
    a) the national interest and the public good;
    b) the interest of the affected states/regions;
    c) the interests of the local population in affected areas;
    d) national environmental policies, biodiversity conservation
    guidelines, and cultural heritage protection principles.
    3.1.2 Empowerment of the appropriate levels of government to develop
    and
    manage, in consultation with the relevant communities, the various
    stages of
    oil production within the overall framework for the management of
    petroleum
    development during the Interim Period.
    3.1.3 Give due attention to enabling policy environment for the flow
    of
    foreign direct investment by reducing risks associated with
    uncertainties
    regarding the outcome of the referendum on self-determination at the
    end of
    the Interim Period.
    3.1.4 A stable macroeconomic environment that emphasizes stability
    of the
    petroleum sector.
    3.1.5 Persons enjoying rights in land shall be consulted and their
    views
    shall duly be taken into account in respect of decisions to develop
    subterranean natural resources from the area in which they have rights,
    and
    shall share in the benefits of that development.
    3.1.6 Persons enjoying rights in land are entitled to compensation
    on
    just terms arising from acquisition or development of land for the
    extraction of subterranean natural resources from the area in respect
    of
    which they have rights.
    3.1.7 The communities in whose areas development of subterranean
    natural
    resources occurs have the right to participate, through their
    respective
    states/regions, in the negotiation of contracts for the development of
    those
    resources.
    3.1.8 Regardless of the contention over the ownership of land and
    associated natural resources, the Parties agree on a framework for the
    regulation and management of petroleum development in Sudan during the
    Interim Period.

    B. National Petroleum Commission (NPC)
    3.2 The Parties agree that an independent National Petroleum Commission
    (NPC) shall be established during the Pre-Interim Period and its
    decisions
    shall be by consensus.
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01-09-2004, 11:54 AM

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تاريخ التسجيل: 10-01-2003
مجموع المشاركات: 5258

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Re: AGREEMENT ON WEALTH SHARING DURING THE PRE-INTERIM AND INTERIM PERIOD (Re: nada ali)

    2

    3.3 Taking into account the provisions elsewhere in this Agreement, the
    NPC
    shall be constituted as follows:
    a) The President of the Republic and President of the GOSS as
    Co-chairs
    and permanent members;
    b) Four (4) permanent members representing the National Government;
    c) Four (4) permanent members representing the GOSS; and
    d) Not more than three (3) representatives of an oil producing
    State/Region in which petroleum development is being considered,
    non-permanent members.

    3.4 The NPC shall have the following functions:
    3.4.1 Formulate public policies and guidelines in relation to the
    development and management of the petroleum sector consistent with
    paragraph
    3.1.1.
    3.4.2 Monitor and assess the implementation of those policies to
    ensure
    that they work in the best interests of the people of Sudan.
    3.4.3 Develop strategies and programs for the petroleum sector.
    3.4.4 Negotiate and approve all oil contracts for the exploration and
    development of oil in the Sudan, and ensure they are consistent with
    the
    NPC's principles, policies and guidelines.
    3.4.5 Develop its internal regulations and procedures.

    3.5 In performing the functions referred to in paragraph 3.4 above, the
    NPC
    shall take into account relevant considerations, including the
    following:
    3.5.1 The extent to which the contract provides benefits to local
    communities affected by the development.
    3.5.2 The extent to which the views of the state/region and the
    affected
    groups are incorporated in the proposed contracts.
    3.5.3 If the NPC decides to approve the contract, persons holding
    rights
    in land who are aggrieved by the decision shall seek relief through
    arbitration or in a court of law.
    3.5.4 If the non-permanent members of the NPC representing the oil
    producing State/Region collectively disagree with the decision of the
    NPC to
    approve the contract related to their State/Region, the National
    Minister of
    Petroleum shall not sign the contract and shall refer the matter to the
    Council of States/Regions. If the Council of States/Regions rejects the
    objection by two-thirds majority, the National Minister of Petroleum
    shall
    sign the contract. If the Council of States/Regions does not reject the
    objection by two-thirds majority within 24 sitting days of receiving
    it, the
    Council of States/Regions shall remit the objection within that period
    and
    by two-thirds majority to a mechanism established by the Council to
    arbitrate on the objection. The arbitration decision shall be made
    within
    six calendar months of referral to arbitration. The arbitration
    decision
    shall be binding.
    3.5.5. If the NPC approves the contract the National Minister of
    Petroleum
    shall sign the contract on behalf of the Government of the Sudan.
    3.5.6 In performing functions 3.4.1, 3.4.2, 3.4.3, and 3.4.5 of
    paragraph
    3.4, the NPC shall include only its permanent members.
    3.5.7 In performing function 3.4.4 of paragraph 3.4, the NPC shall
    include
    its permanent members and representatives of oil producing State/Region
    in
    which contracts for the exploration and development of the petroleum
    are
    being negotiated and considered for approval.

    4.0 EXISTING OIL CONTRACTS
    4.1 The SPLM shall appoint a limited number of representatives to have
    access to all existing oil contracts. The representatives shall have
    the
    right to engage technical experts. All those who have access to the
    contracts will sign confidentiality agreements.

    4.2 Contracts shall not be subject to re-negotiation.

    4.3 If contracts are deemed to have fundamental social and
    environmental
    problems the Government of Sudan will implement necessary remedial
    measures.

    4.4 The Parties agree that "existing oil contracts" mean contracts
    signed
    before the date of signature of the comprehensive Peace Agreement.

    4.5 Persons whose rights have been violated by oil contracts are
    entitled to
    compensation. On the establishment of these violations through due
    legal
    process the Parties to the oil contracts shall be liable to compensate
    the
    affected persons to the extent of the damage caused.

    5.0 GUIDING PRINCIPLES FOR SHARING OIL REVENUE
    5.1 The Parties agree that the basis for an agreed and definitive
    framework
    for the sharing of the wealth emanating from oil resources of Southern
    Sudan
    shall include the following:
    5.1.1 The framework for sharing wealth from the extraction of
    natural
    resources should balance the needs for national development and
    reconstruction of Southern Sudan.

    5.2 The Parties agree that a formula for sharing the revenue from oil
    resources shall be as set forth in this Agreement.

    5.3 For the purposes of this Agreement 'Net revenue from oil' shall be
    the
    sum of the net revenue
    (i) from exports of government oil and
    (ii) from deliveries of government oil to the refineries. Exports shall
    be
    valued at the actual Free on Board (FOB) export prices less the charges
    to
    deliver the oil to any export destination including pipeline and
    management
    charges. Oil delivered to the refinery shall be valued at the average
    FOB
    export prices during the last calendar month in which there was an
    export
    sale less the charges that would have been incurred to deliver the oil
    to
    any export destination including pipeline and management charges.

    5.4 An Oil Revenue Stabilization Account shall be established from
    government oil net revenue derived from actual export sales above an
    agreed
    benchmark price. The benchmark price will be established annually as
    part of
    the national budget reflecting changing economic circumstances.

    5.5 The Parties agree that at least two percent (2%) of oil revenue
    shall be
    allocated to the oil producing states/regions in proportion to output
    produced in such states/regions.

    5.6 After the payment to the Oil Revenue Stabilization Account and to
    the
    oil producing states/regions, fifty percent (50%) of net oil revenue
    derived
    from oil producing wells in Southern Sudan shall be allocated to the
    Government of Southern Sudan (GOSS) as of the beginning of the
    Pre-Interim
    Period and the remaining fifty percent (50%) to the National Government
    and
    States in Northern Sudan.

    5.7 A Future Generation Fund shall be established once national oil
    production reaches two (2) million barrels per day. This production
    criterion may, as part of the National Government's normal budget
    process,
    be reduced down to one (1) million barrels per day.

    5.8 The Parties agree that all funds/special accounts referred to in
    this
    Agreement and future accounts shall be on-budget operations.

    6 SHARING OF NON-OIL REVENUE
    6.1 The National Government shall be entitled to legislate, raise and
    collect the below-listed taxes and to collect revenue from these
    sources:
    6.1.1 National Personal Income Tax;
    6.1.2 Corporate or Business Profit Tax;
    6.1.3 Customs Duties and import taxes; and
    6.1.4 Sea-ports and Airports Revenue;
    6.1.5 Service charges;
    6.1.6 Oil revenues as set out herein;
    6.1.7 National Government Enterprises and projects;
    6.1.8 VAT or GST or other retail taxes on goods and services;
    6.1.9 Excise Tax;
    6.1.10 Any other tax as agreed upon in these negotiations;
    6.1.11 Loans, including borrowing from the Central Bank and the
    public.

    6.2 The Government of Southern Sudan shall be entitled to revenue from
    the
    following sources and to raise and collect the below-listed taxes:
    6.2.1 The National revenue allocation to the Government of Southern
    Sudan
    and States/Regions from the National Revenue Fund as set forth in
    section
    7.0 of this Agreement;
    6.2.2 Revenue from any of the sources listed as state/region revenue
    sources referred to in paragraph 6.3 herein;
    6.2.3 The Southern Sudan Reconstruction and Development Fund (SSRDF);
    6.2.4 Oil revenues as is set out in this Agreement;
    6.2.5 Southern Sudan Government Taxes, which do not encroach on the
    exclusive National Government taxing powers or which are contemplated
    in the
    Power Sharing Protocol;
    6.2.6 Service charges of the Government of Southern Sudan;
    6.2.7 Government of Southern Sudan enterprises and projects;
    6.2.8 Grants in Aid and Foreign Aid;
    6.2.9 Taxes and levies on small and medium business;
    6.2.10 Excise taxes on goods within the region deemed to be luxury
    consumables;
    6.2.11 Southern Sudan Personal Income Tax;
    6.2.12 Any other taxes as may be agreed to from time to time;
    6.2.13 Loans and Borrowing in accordance with the Monetary Policy,
    Banking, Currency and Borrowing sections of this Agreement.

    6.3 The states/regions shall be entitled to raise and collect the
    below-listed taxes and revenue from the below listed sources:
    6.3.1 State/Regional Land and property tax and royalties;
    6.3.2 Service charges for state/regional services;
    6.3.3 Licences;
    6.3.4 State/Regional Personal Income Tax;
    6.3.5 Levies on Tourism;
    6.3.6 State/Regional share of oil Revenues as is set out in
    paragraphs 5.5
    and 5.6 of this Agreement;
    6.3.7 State/Regional Government projects and state/regional nature
    parks;
    6.3.8 Stamp duties;
    6.3.9 Agricultural Taxes;
    6.3.10 Grants in Aid and Foreign Aid through the National Government
    and
    the GOSS;
    6.3.11 Excise taxes;
    6.3.12 Border Trade charges or levies in accordance with National
    Legislation;
    6.3.13 Other state/region taxes which do not encroach on national or
    Southern Sudan Government taxes;
    6.3.14 Any other tax as may be agreed to from time to time; and
    6.3.15 Loans and borrowing in accordance with the Monetary Policy,
    Banking, Currency and Borrowing sections of this Agreement.

    7 EQUALIZATION AND ALLOCATION TO THE NATIONAL, SOUTHERN SUDAN AND
    STATE/REGIONAL LEVELS OF GOVERNMENT IN RESPECT OF REVENUE COLLECTED
    NATIONALLY.
    7.1. All revenues collected nationally for or by the National
    Government
    shall be pooled in a National Revenue Fund (NRF) administered by the
    National Treasury. Such Fund shall embrace all accounts and sub-funds
    into
    which monies due to the Government are collected, reported or
    deposited.

    7.2 All the revenues and expenditures of the Government will be
    on-budget
    operations and made public.

    7.3 Notwithstanding the provisions of paragraphs 5.6, 7.1 and 13.1, the
    National Government shall allocate fifty percent (50%) of the national
    non-oil revenue collected in Southern Sudan, as provided for herein
    under
    paragraph 6.1 above, to the GOSS to partially meet the development cost
    and
    other activities during the Interim Period. The Parties agree to review
    this
    arrangement, at mid-term of the Interim Period, with the view of the
    National Government allocating additional resources to the Government
    of
    Southern Sudan.

    7.4 As a result of the allocation arrangements in paragraph 7.3 above,
    the
    Parties agree to appeal to the international and donor community to
    help the
    Government of Southern Sudan by providing post-conflict reconstruction
    assistance especially at the beginning of the transition.

    7.5 The states/regions and the Government of Southern Sudan shall
    retain and
    dispose of such other income raised and collected under their own
    taxing
    powers.

    8. FISCAL AND FINANCIAL ALLOCATION AND MONITORING COMMISSION (FFAMC)
    8.1 To ensure transparency and fairness both in regard to the
    allocation of
    nationally collected funds to the states/regions and the Government of
    Southern Sudan, a Fiscal and Financial Allocation and Monitoring
    Commission
    shall be established. This body shall be comprised of experts nominated
    by
    the various states/regions, the Government of Southern Sudan and the
    National Government. Decision making arrangements of the FFAMC shall be
    as
    agreed to by the Parties.

    8.2 The FFAMC shall undertake the following duties and
    responsibilities:
    8.2.1 Monitor and ensure that equalization grants from the National
    Revenue Fund are promptly transferred to respective levels of
    government;
    8.2.2 Ensure appropriate utilization and sharing of financial
    resources;
    8.2.3 Ensure that resources allocated to war affected areas are
    transferred in accordance with agreed upon formulae; and
    8.2.4 Ensure transparency and fairness in the allocation of funds to
    the
    GOSS and states/regions according to established ratios or percentages
    stipulated in this Agreement.

    8.3. The FFAMC shall be composed of representatives from the National
    Government and the Government of Southern Sudan and States/Regions as
    follows:
    a) Three Representatives of the National Government;
    b) Three Representatives of the Government of Southern Sudan (GOSS);
    c) All Finance Ministers in all States/Regions of Sudan

    8.4 The Chairperson of the FFAMC shall be appointed by the
    Presidency.

    8.5 The FFAMC shall work out its own rules and procedures, which
    shall be
    approved by the Presidency.

    9.0 INTERSTATE COMMERCE
    9.1 There shall be no legal impediment to interstate commerce or the
    flow
    of goods and services, capital, or labour between the states/regions.

    10.0 GOVERNMENT LIABILITIES
    10.1 Any debts/liabilities incurred by any level of government shall be
    the
    responsibility of that level of government.

    11.0 DIVISION OF GOVERNMENT ASSETS
    11.1 There shall be a fair and equitable division of government assets.
    An
    asset shall in the first instance be allocated to the level of
    government
    responsible for the function in respect of which the asset is related
    (e.g.
    school buildings to the level of government responsible for education).
    In
    the event of a dispute, the Parties agree that such dispute shall be
    referred to a committee comprising a representative of each of the
    Parties
    involved in the dispute and a mutually agreed expert.

    12.0 ACCOUNTING STANDARDS AND PROCEDURES AND FISCAL ACCOUNTABILITY
    12.1 All levels of government shall comply with generally accepted
    accounting standards and procedures. There shall be institutions at the
    state/region, Government of Southern Sudan and National levels to
    ensure
    that funds are distributed according to the agreed government budget,
    and
    properly expended having regard to value for money.

    12.2 To ensure the effective operation of such institutions, there
    shall be
    independent National and Southern Sudan Audit Chambers, which shall
    have
    responsibility for the functions referred to above. The National Audit
    Chamber shall set auditing standards. Appointments to the National
    Audit
    Chamber shall be made by the Presidency and confirmed by the National
    Assembly.

    12.3 All levels of government shall hold all income and revenue
    received by
    it in public accounts and subject to public scrutiny and
    accountability.

    13 FINANCING THE TRANSITION
    13.1 The National Government shall assist, during the Pre-Interim
    Period to
    the extent that it is able, the SPLM/A in the establishment of the new
    transitional governments at the State/Regional level and the Government
    of
    Southern Sudan. The Government of Southern Sudan shall meet the direct
    costs
    of establishing these levels of government, with the assistance from
    the
    international community.

    13.2. Upon signature of a comprehensive Peace Agreement, the Parties
    shall
    establish a Joint National Transition Team to undertake the following:
    13.2.1 Prepare budget estimates for the establishment of
    Governments at
    the National, Southern Sudan, and state/regional levels as provided for
    by
    the Peace Agreement;
    13.2.2 Organize and prepare relevant documents for the donor
    conference,
    including the agenda of the conference, letters of invitations and be a
    secretariat to the donors' conference;
    13.2.3 Develop fund raising strategies, and assist in the
    identification
    of potential sources of funds necessary for a smooth and timely
    commencement
    of the Interim Period.

    14.0 MONETARY POLICY, BANKING, CURRENCY AND BORROWING

    A. MONETARY POLICY, BANKING AND CURRENCY
    14.1. The Parties agree, consistent with the Machakos Protocol of
    20th
    July 2002, to have a dual banking system in Sudan during the Interim
    Period.
    An Islamic banking system shall operate in Northern Sudan and
    conventional
    banking system shall operate in Southern Sudan.

    14.2. The Parties agree that conventional banking facilities are
    urgently
    needed in Southern Sudan. The Parties therefore agree to establish,
    during
    the Pre-Interim period, the Bank of Southern Sudan (BOSS) as a branch
    of
    Central Bank of Sudan (CBOS) consistent with paragraph 14.1 above.

    14.3. The Parties agree to restructure, during the Pre-Interim
    Period, the
    CBOS so as to reflect the duality of the banking system in Sudan. The
    CBOS
    shall therefore use and develop two sets of banking instruments, one
    Islamic
    and the other Conventional, to regulate and supervise the
    implementation of
    a single monetary policy through: (i) an Islamic financing window in
    Northern Sudan under a deputy governor of CBOS using Islamic financing
    instruments to implement the national monetary policy in Northern
    Sudan; and
    (ii) the Bank of Southern Sudan (BOSS), headed by a deputy governor of
    CBOS,
    to manage the conventional window using conventional financing
    instruments
    in implementing the same national monetary policy in Southern Sudan.

    14.4. The CBOS shall be responsible for the conduct of monetary
    policy.
    All banking institutions shall be subject to the rules and regulations
    set
    by the CBOS.

    14.5. The primary responsibility and mandate of the CBOS shall be
    ensuring
    price stability, maintaining stable exchange rate, sound banking system
    and
    issuance of currency. The monetary policy shall be carried out
    accordingly
    relying primarily on market-based instruments instead of administrative
    allocation of credit.

    14.6. The CBOS shall be fully independent in its pursuit of monetary
    policy.

    14.7. The Governor of CBOS and his/her two deputies shall be
    appointed by
    the Presidency. The Governor of CBOS shall appoint in consultation with
    his/her two deputies other senior officers within the Central Bank.

    14.8. The Parties agree to establish, during the Pre-Interim Period,
    an
    independent Board of Directors (BOD). Decisions of BOD on matters that
    may
    affect adversely the interest of either Party to this Agreement shall
    be by
    consensus. The BOD shall be responsible to the Presidency on the
    accountability of the CBOS and shall consist of nine (9) members as
    follows:
    a) Governor of CBOS ( Chairperson) and his/her two deputies and;
    b) Six highly qualified Sudanese to be appointed by the Presidency
    taking into account the agreed formula in the Power Sharing Protocol
    for the
    institutions of the National Government.

    14.9 The CBOS shall adopt a program to issue a new currency as soon
    as is
    practical during the Interim Period. The design of the new currency
    shall
    reflect the cultural diversity of Sudan. Until a new currency has been
    issued with the approval of the Parties on the recommendations of the
    CBOS,
    the circulating currencies in Southern Sudan shall be recognised.

    14.10 The BOSS shall be responsible for chartering and supervising
    financial institutions in Southern Sudan.

    14.11 All financial institutions shall be subject to internationally
    recognized regulatory and prudential standards for Islamic and
    conventional
    finance, as set by the CBOS.

    14.12 All financial institutions shall be bound to implement monetary
    policies set by the CBOS.

    B. BORROWING:
    14.13. The Government of Southern Sudan and the states/regions may
    borrow
    money based on their respective credit worthiness. Neither the National
    Government nor the CBOS shall be required or expected to guarantee
    borrowing
    by sub-national governments.

    14.14 The GOSS and all sub-national governments shall report
    financial and
    fiscal data to the relevant National Government bodies for statistical
    purposes.

    14.15 The Government of Southern Sudan and the states/regions may
    borrow
    money from foreign sources based on their respective credit worthiness.

    14.16 Foreign borrowing by all sub-national governments shall be done
    in a
    manner that does not undermine national macroeconomic policies and
    shall be
    consistent with the objective of maintaining external financial
    viability.
    All sub-national governments' foreign borrowing transactions shall
    conform
    to the CBOS specifications.


    15 RECONSTRUCTION AND DEVELOPMENT FUNDS

    A. Southern Sudan Reconstruction and Development Fund (SSRDF)
    15.1. There shall be established a Southern Sudan Reconstruction and
    Development Fund (SSRDF) to solicit, raise and collect funds from
    domestic
    and international donors and disburse such funds for the reconstruction
    and
    rehabilitation of the infrastructure of the South, for the resettlement
    and
    reintegration of internally and externally displaced persons, and to
    address
    past imbalances in regional development and infrastructure.

    15.2. A monitoring and evaluation system shall be established to ensure
    accountability, transparency, efficiency, equity and fairness in the
    utilization of resources.

    15.3. The Government of Southern Sudan shall be responsible for
    expenditure
    from the fund and shall be entitled to raise additional funds by way of
    donation from foreign States, multilateral organizations, or other
    bodies
    for the purposes of the reconstruction and development of the southern
    states/regions. The Fund shall be transparently administered and
    professionally managed subject to an oversight committee appointed by
    the
    Government of Southern Sudan but having on it a representative of the
    National Ministry of Finance and of the National Audit Chamber.

    B. National Reconstruction and Development Fund (NRDF)
    15.4. There shall be established by the Treasury, a National
    Reconstruction
    and Development Fund (NRDF) having the mission of developing the war
    affected areas and least developed areas outside Southern Sudan and a
    steering committee with appropriate representation from such areas. A
    member
    of the Southern Sudan Ministry of Finance shall be a member of the
    Steering
    Committee. A report on the income, expenditure and the projects
    supported by
    the fund shall be placed before the National Assembly and the Council
    of
    States/Regions, which shall exercise oversight over the Fund.

    C. Multi-Donor Trust Funds
    15.5. The Parties recognize the need to establish, during the
    Pre-Interim
    Period, two Multi-Donor Trust Funds (MDTFs), one for the National
    Government
    and one for the Government of Southern Sudan to support urgent
    recurrent and
    investment budget costs under clearly stated criteria of eligible
    financing
    components. The Trust Funds shall be operational for the Pre-Interim
    Period,
    and shall thereafter be transformed into (i) one MDTF dedicated to the
    Southern Sudan Reconstruction and Development Fund (the "SRRDF"); and
    (ii)
    one MDTF dedicated to the National Reconstruction and Development Fund
    (the
    "NRDF").

    15.6. The MDTFs shall commence immediately to support, among other
    things,
    priority areas of capacity building and institutional strengthening and
    quick start/impact programs identified by the Parties.

    15.7. Both funds shall support urgent recurrent and investment budget
    costs
    under clearly stated criteria of eligible financing components, and
    both
    shall have the right to solicit, raise and collect funds from foreign
    donors.

    15.8. All trust funds shall report the flow of funds to the CBOS.

    15.9. To ensure proper accountability for funds disbursed through the
    MDTFs
    the Parties shall cause audits to be performed on funds used within six
    (6)
    months of the close of the recipient's financial year.

    15.10. During the Pre-Interim as well as the Interim Period, funds may
    be
    channeled directly to finance activities beneficial to the National
    Government or the GOSS as the case may be.

    15.11. During the Pre-Interim Period, the flow of foreign funds shall
    be
    through special accounts established in the Bank of Sudan for areas
    outside
    Southern Sudan and for Southern Sudan in a commercial bank in Southern
    Sudan
    until the Bank of Southern Sudan is established and operational. For
    the
    Interim Period: (i) the flow of foreign funds for the National Fund
    will go
    through the CBOS; and (ii) for the Southern Fund, the foreign funds
    will be
    disbursed through a special account at the Bank of Southern Sudan
    designated
    for the Government of Southern Sudan; or through arrangements as
    specified
    in the MDTF.
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01-09-2004, 11:57 AM

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تاريخ التسجيل: 05-23-2002
مجموع المشاركات: 14699

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Re: AGREEMENT ON WEALTH SHARING DURING THE PRE-INTERIM AND INTERIM PERIOD (Re: nada ali)

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