Petroleum Revenue Managet - (Amendment) Bill, 2015
Petroleum Revenue Managet - (Amendment) Bill, 2015
Petroleum Revenue Managet - (Amendment) Bill, 2015
REVENUE MANAGEMENT
PETROLEUM
REVENUE
MANAGEMENT
(AMENDMENT)
BILL,
2015
(AMENDMENT) BILL,
2015
ARRANGEMENT
Clause
1. Section 5 of Act 815 amended
2. Section 7 of Act 815 amended
3. Section 10 of Act 815 amended
4. Section 11 of Act 815 amended
5. Section 12 of Act 815 amended
6. Section 16 of Act 815 amended
7. Section 17 of Act 815 amended
8. Section 21 of Act 815 amended
9. Section 23 of Act 815 amended
10. Section 31 of Act 815 amended
11. Section 48 of Act 815 amended
12. Section 54 of Act 815 amended
13. Section 57 of Act 815 amended
14. Section 60 of Act 815 amended
15. Section 61 of Act 815 amended
16. First Schedule to Act 815 amended
17. Second Schedule to Act 815 repealed
BILL
ENTITLED
PETROLEUM REVENUE MANAGEMENT (AMENDMENT)
ACT, 2015
An Act to amend the Petroleum Revenue Management Act, 2011
(Act 815) to provide for the allocation of funds to the Ghana
Infrastructure Investment Fund for the purposes of infrastructure
development, the provision of the composition of the Investment
Advisory Committee and for related matters.
PASSED by Parliament and assented to by the President:
Section 5 of Act 815 amended
1. The Petroleum Revenue Management Act, 2011 (Act 815) referred
to in this Act as the principal enactment is amended in section 5 by the
substitution for subsection (2) of
(2) In order to preserve revenue streams from petroleum
and ensure the object of this Act, there shall not be any
borrowing against the petroleum reserves..
Section 7 of Act 815 amended
2. The principal enactment is amended by the substitution for section
7 of
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GPCL/A126/350/03/2015
PETROLEUM REVENUE
REVENUE MANAGEMENT
MANAGEMENT
PETROLEUM
(AMENDMENT) BILL,
(AMENDMENT)
BILL,2015
2015
MEMORANDUM
The purpose of the Bill is to amend the Petroleum Revenue
Management Act, 2011 (Act 815) to provide for the allocation of funds
to the Ghana Infrastructure Investment Fund for the purposes of
infrastructure development and to provide for the composition of the
Investment Advisory Committee.
Act 815 was enacted to provide a framework for the collection,
allocation and management of petroleum revenue in a responsible,
transparent, accountable and sustainable manner for the benefit of the
citizens of Ghana in accordance with the 1992 Constitution. However,
the implementation of Act 815 exposed some inconsistencies and
typographical errors that need to be rectified. This amendment therefore
seeks to ensure that the implementation of Act 815 is in conformity with
the intendment of the drafters. In view of this the substance of Act 815
has generally been maintained in the Bill.
Clause 1 of the Bill amends subsection (2) of section 5 of Act 815 to
correct a typographical error. The substance of section 5 of Act 815 is the
same.
Section 7 of Act 815 is amended by clause 2 of the Bill to provide for
the specific issue of carried and participating interest as provided for in
subsection (1) of section 7 of Act 815.
Clause 3 of the Bill amends section 10 of Act 815 to provide for the
object of the Ghana Heritage Fund. The object of the Fund is to provide
an endowment to support development for future generations when
petroleum reserves have been depleted.
Clause 4 of the Bill amends section 11 of Act 815 to provide for the
Ghana Petroleum Funds to receive from the Petroleum Holding Fund
not less than thirty percent of the Benchmark Revenue. This amendment
is necessary to ensure that the Ghana Petroleum Funds receive petroleum
revenues whether or not the Annual Budget Funding meets its ceiling
amount. Clause 4 also provides for the exact percentage of moneys to be
transferred to the Ghana Stabilisation
12 Fund.
PETROLEUMREVENUE
REVENUE MANAGEMENT
MANAGEMENT
PETROLEUM
(AMENDMENT) BILL,
BILL, 2015
(AMENDMENT)
2015
Clause 5 of the Bill amends section 12 of Act 815 to provide that a
transfer from the Ghana Stabilisation Fund should be done for the
purposes of alleviating shortfalls in actual petroleum revenue in
accordance with subsection (1) to (4) of section 12 of Act 815.
Furthermore, a transfer into the Contingency Fund and for debt
repayment must be in accordance with sections 23(4) and 23(5) of Act
815. Clause 5 of the Bill also provides for the limit of amount that may be
withdrawn from the Ghana Stabilisation Fund for the purpose of
alleviating a shortfall in actual petroleum revenue.
Section 16 of Act 815 is amended in clause 6, to include matters that
were previously provided for under subsections (2) and (3) of section 7
of Act 815. This is to ensure that payment to the national oil company
receives topmost priority. The amendment also seeks to ensure flexibility
in order to make room for more than one national petroleum company.
Furthermore, clause 6 of the Bill seeks to ensure that revenue due to the
national oil companies is expeditiously released to them for the conduct
of businesses. A national oil company may use its allocation to leverage
loans and meet its gas payment obligations.
Clause 7 of the Bill amends section 17 of Act 815 to mandate the
Minister to recommend to Parliament a revision of the Benchmark
Revenue where it becomes evident that unexpected petroleum price
movements or production conditions have resulted or are likely to result
in a gross over projection or under projection of the Benchmark Revenue.
Clause 8 of the Bill amends section 21 of Act 815 to provide for the
amount allocated to the Ghana Infrastructure Investment Fund to be
included in the national budget for Parliamentary approval.
Clause 9 of the Bill amends section 23 of Act 815 with respect to the
headnote. The headnote to section 23 of Act 815 is indicated under clause
9 of the Bill as Transfer of excess petroleum revenue into the Ghana
Petroleum Funds..
Clause 10 of the Bill amends section 31 of Act 815 to provide for the
members of the Investment Advisory Committee. Even though the
members of the Committee are still seven in number, the number of
women has been increased from one to two.
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PETROLEUM REVENUE
REVENUE MANAGEMENT
MANAGEMENT
PETROLEUM
(AMENDMENT) BILL,
(AMENDMENT)
BILL,2015
2015
Section 48 of Act 815 is amended in clause 11 of the Bill to require
the Minister to present a report to Parliament describing the stage of
implementation of the programmed activities funded by the expenditure
incurred on the activities covered by the Annual Budget Funding Amount,
and to indicate the portion of the Annual Budget Funding Amount
allocated to the Ghana Infrastructure Investment Fund. This amendment
seeks to ensure that budgetary allocation is made for the benefit of the
Ghana Infrastructure Investment Fund.
The membership of the Accountability Committee under section 54
of Act 815 has been increased from eleven members to thirteen members,
clause 12.
Section 57 of Act 815 has been amended to require the Accountability
Committee to submit a budget on the annual programme of the
Committee to the Minister for purposes of inclusion in the annual national
budget, clause 13.
The typographical error in section 60 of Act 815 has been corrected
under clause 14 of the Bill.
Section 61 of Act 815 which is on interpretation has been amended
under clause 15 of the Bill. The definition for corporate income tax has
been inserted. Corporate income tax has the meaning assigned to
corporate income tax under the laws of the country. Likewise, equity
financing cost, gas, Ghana Infrastructure Investment Fund and
others have been inserted.
The first and second schedules to Act 815 have been amended under
clauses 16 and 17 respectively.