Getting a Better Deal from the Extractive Sector
by Raja Kaul and Antoine Heuty with Alvina Norma
This comprehensive report from Revenue Watch Institute demonstrates the need for more equitable terms in natural resource contracts and the pivotal role that the contract process can play in economic recovery and development.
In 2006, as part of its wider reconstruction effort, the government of Liberia conducted a review and renegotiation of its contracts with the Firestone rubber company and the ArcelorMittal steel company. The resulting amended contracts offered Liberia significant gains, in areas from taxes and corporate governance rules to environmental and social issues such as housing and education.
The amended contracts were embraced not only by Liberia's legislature and general public, but also by Firestone and ArcelorMittal, the latter increasing its investment in Liberia from $1.0 to $1.5 billion. The successful negotiations have also caught the attention of other African governments seeking to ensure that their countries maximize value from natural resource concessions.
Prepared for the Office of the President of Liberia by RWI senior economist Antoine Heuty and Raja Kaul, who was closely involved with Liberia Firestone and ArcelorMittal negotiations, the report includes forewords by President Ellen Johnson Sirleaf of the Republic of Liberia and Open Society Institute chairman George Soros.
Table of Contents
Foreword by Ellen Johnson Sirleaf, President, Republic of Liberia
Foreword by George Soros, Chairman, Open Society Institute
List of Charts and Tables
List of Acronyms
Executive Summary
Chapter 1: Introduction
Chapter 2: Background
Chapter 3: The ArcelorMittal Negotiations
Chapter 4: The Firestone Negotiations
Chapter 5: The ArcelorMittal and Firestone Negotiations: Analysis and Recommendations
Chapter 6: Increasing the Transparency of Concession Negotiations
Chapter 7: Contrasting the Fast Track Negotiations to Other Government Negotiating Practices
Chapter 8: Concession Agreement Monitoring and Compliance
Chapter 9: Conclusion
Appendicies
Endnotes