Seminar on Artisanal and Small-scale Mining in Africa: Identifying Best Practices and Building the Sustainable Livelihoods of Communities
Yaoundé, Cameroon, 19-22 November

            Small-scale and artisanal mining are widely practiced in a significant number of African countries. Because artisanal mining is largely poverty-driven, it has grown as an economic activity, which commonly complements more traditional forms of rural subsistence earnings. In Africa, it is estimated that some 20 million people depend on this activity for their subsistence. The Mining, Minerals and Sustainable Development (MMSD) Southern Africa report (2002) acknowledges that Artisanal and Small-scale Mining (ASM) is "typically practiced in the poorest and most remote rural areas by a largely itinerant, poorly educated populace, men, and women with few employment alternatives".   This observation is also relevant to other Sub-Saharan African regions. The great majority of artisanal miners are involved in gold, diamond and gemstone mining, usually in the poorest and most remote rural areas by a large itinerant, poorly educated populace, men, women with few employment alternatives.

            A seminar on Artisanal and Small-Scale Mining in Africa has been organized to identify the best practices and to build sustainable livelihoods of communities in Africa. The seminar, held in Yaounde, Cameroon from 19-22 November 2002, has been jointly organised by the Water, Natural Resources & SIDS Branch, Division for Sustainable Development (DSD) of DESA and the UN Economic Commission for Africa and hosted by the Central Africa Sub-regional Development Centre.

            The objectives of this seminar mirror the aims of many African governments and their development partners, namely:

1. To identify, analyze and propose a set of novel policy options for governments, IGOs, donors and NGOs, on the basis of case studies, and "best practices".  These policy options will encompass the macro, meso and micro (sectoral) dimensions of Artisanal and Small-scale Mining (ASM) to fully mainstream such activities into the local development planning and national poverty eradication efforts.

2. To offer a forum for debate between ASM experts and poverty reduction specialists to promote viable policies and realistic implementation mechanisms.

3. To draw lessons and recommendations for implementation in African countries and other parts of the world through the strengthening of existing stakeholder networks.

4. To revitalize the interest of African governments, the donor and NGO communities and the private sector towards communities involved in, or affected by, artisanal and small-scale mining.  The seminar will promote approaches and actions consistent with community empowerment initiatives.

            The organizers brought together participants from several African countries, where small-scale and artisanal mining is a serious development issue. By bringing together key stakeholders from a broad development spectrum, the goal was to encourage a fresh exchange of views and experiences around some of the key development policy challenges of ASM with a view to better harnessing its economic dynamism, and identifying sustainable alternative economic opportunities for poverty reduction and sustainable development.

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Renewable Energy Development in Syria

            At the request of the Government of Syria, a project was undertaken by the Division for Sustainable Development, Energy and Transport Branch (ETB) of DESA, with the financial support of UNDP through its Syria Country Office, to formulate a comprehensive national master plan for the development of renewable energy sources and relevant applications.  Progressively increasing the contribution from these sources to the total energy mix can help in addressing the goals of sustainable development. Proposals that have been developed include a 10-year development plan, as well as several accompanying measures covering policies and institutional arrangements for strengthening the capacities needed to translate these plans into concrete actions.

            Syria is well endowed with fossil fuel as well as renewable energy resources. There are significant reserves of natural gas and a large reserve of oil. Currently oil makes the largest contribution to the primary energy supply, followed by gaseous fuels. The share of oil in the energy mix has been declining steadily, which is being replaced by gaseous fuels as a result of a national strategy.  Although Syrian energy consumption is not large, it is higher than the regional and continental average in per capita and GDP terms. The same can be said about Syrian greenhouse gas (GHG) emissions, which are higher than the regional and global levels in terms of GDP. These GHG emissions especially from energy use are projected to increase significantly in the coming years. For Syria to move towards greater sustainability, future energy developments must reduce expected GHG emissions, some of which may be achieved through the use of renewable energy technologies.

            The purpose of the Syria National Renewable Energy Master Plan is to induce an increasing contribution from renewable sources of energy in the national energy balance thereby reducing dependence on conventional energy sources and leading to environmentally sound, sustainable development.  The Syrian renewable energy industry is in the early stages of development but capacity exists in solar hot water, photovoltaics and wind energy manufacturing.

            The draft master plan identifies application areas where renewable energy can make a significant contribution. Renewable energy activities currently underway in Syria are on a small scale and therefore are unable to make an impact. Proposals have therefore been worked out, based on existing data and information, for a realistically achievable level of development of renewable energy resources through planned efforts. The master plan reviews the institutional arrangements in the country to set the stage for new institutional arrangements that are proposed.

            The master plan consists of two main components: the Energy Development Plan and Accompanying Measures Plan. While the energy development plan consists of developments in wind, bioenergy, solar, hydro and hybrid energy systems that directly contribute to increasing the share of renewable energy in the primary energy supply, accompanying measures consist of studies, capacity building, promotional and institutional development efforts that facilitate the energy developments. The planning horizon is from 2002 to 2011 and activity descriptions, plans, cost implications, sources of finance, benefits and alternatives are provided.

            Plans and proposals are based on scenarios that rely on a set of assumptions regarding levels of the renewable energy contribution to the total energy supply that can be aimed for in a period of 10 years. These proposals cover research and development and demonstration and operational projects. An estimate of the resources required to accomplish the tasks involved and to achieve the objectives of the proposals is also given. Various barriers in the policy, institutional and financing areas that will have to be removed for achieving the goals are also identified.

            The proposals concerning institutional development comprise the establishment of:

• An apex body for overall direction and coordination such as a government department or Council or Authority

• A Renewable Energy Finance Corporation

• A Syrian Renewable Energy Industry Association

• A Consumer’s Association

           Contact: Walter Shearer, DSD, Tel. (212) 963-8444, E-mail: shearer@un.org

Energy Efficiency in Egypt

            The Energy Efficiency Improvement and Greenhouse Gases Reduction (EIGR) project was designed to maximize the potential of the  Egyptian energy market and address some of the barriers to energy efficiency.  The project is being executed and partially financed by the Egyptian Electricity Holding Company (EEHC).  Technical support for the project is provided by the Energy and Transport Branch of the Division for Sustainable Development of DESA.  It is also partially financed and technically supported by the United Nation Development Programme (UNDP) and the Global Environment Facility (GEF).  The project started in January 1999 and is expected continue for a period of four and half years.

            Most Egyptian industries have a higher rate of energy consumption than the international norm.  Electricity use in Egypt is 1.6 kWh per US$ of the gross national product, four times that of OECD countries in Europe and double that of some other developing countries.   On the other hand, electricity consumption per capita is around one fifth of that in OECD countries in Europe. Unless action is taken to improve energy efficiency, the potential increase in energy demand with growth in the national product will be excessive.

            Reforms in the energy sector in Egypt have focused on: encouraging private sector involvement in power generation; reforming generation, transmission and distribution companies; and  establishing an electric utility and consumer protection regulatory agency.   The regulatory  agency has a mandate to establish a benchmarking scheme for electricity companies which takes into consideration energy conservation efforts and demand-side management.  Environmental legislation (adopted in 1994) established limits for emissions from industrial and commercial enterprises.   Egypt has also developed its national action plan for the mitigation of greenhouse gases.  The action plan has adopted the following seven energy conservation measures: switching to natural gas, cogeneration, high efficiency lighting, combustion improvement, waste heat recovery, condensate return and use of wind energy as technologies for clean development.

            Egypt began its economic reform programme focused on liberalization and deregulation, in the 1990s.  The programme concentrated on privatization of industrial and commercial sectors and higher private sector involvement in the telecommunications and electricity sectors.  Following the recession in 1998, privatization and deregulation programmes were accelerated.

            The energy efficiency market is estimated at US$ 1.1 billion, and cogeneration, process control and power factor correction present the highest opportunities for efficiency measures.  When cost per unit is taken into account, power factor correction and lighting have a higher potential for implementation of energy efficiency measures.  The industrial sector accounts for 95 % of the total market opportunities, while the commercial sector accounts for the remaining 5%.

            Regardless of the high potential for energy efficiency, the market also suffers from many negative forces.  While efforts have been made to improve awareness on these issues, further efforts are still needed.  A lack of operating and calibrated energy measuring instruments, as well as an absence of records for energy consumption add to the problem. The absence of national codes and standards for energy consumption as well as limits for the efficiencies of industrial processes, create limits in the market.  There is no incentive or rebate policy for energy conservation projects, except bonuses offered for power factor correction.  The electricity tariff has not been changed since 1993 and prices of fuels such as #2 oil and LPG are subsidized.

            In terms of economic barriers, the exchange rate has increased by 37 %, which has affected the appeal of energy conservation projects.   Public sector companies in the process or waiting for privatization, are prevented from making new investments. These companies include several large industrial complexes where energy conservation opportunities are available.  Regarding project financing, the financial sector lacks alternative financial instruments while the legal structure makes it very difficult and risky to do asset-backing lending.  Financial institutions lack knowledge and experience on the true risks of financing energy conservation projects.  All these factors limit the amount of debt and equity, which can be generated for energy-saving projects at the present time.

            One of the major components of the DESA project is energy efficiency business development through which the project has helped establish eight energy service companies (ESCOs).  These companies include energy efficiency equipment suppliers, electro-mechanical contractors, utilities and consultants.   Through the project, technical as well as business training was provided to these companies, which were supported and promoted  through a programme for 200 partially financed energy audits.  By the end of May 2002, more than 75 % of these audits had been conducted, covering industrial and commercial sectors in all geographical regions of Egypt.

            The audits were used to develop business opportunities for the companies, as well as an awareness campaign among the companies for energy efficiency.  Of the completed 154 audits, 19 projects have been implemented and four other projects are in the implementation phase.   The implemented projects are mainly related to power factor correction and high efficiency lighting.  However, ongoing projects also include two cogeneration projects, a demand side management project, a peak shaving project, and an energy conservation project.

            Implemented projects have been conducted using the Guaranteed Saving Model of performance contracting.   The Shared Saving Model has not proved attractive to most of the ESCOs in Egypt.  To encourage implementation a loan guarantee programme, which provides performance contracting-guarantees for the ESCOs was established.

             Several techniques to increase the number of energy service companies and  to strengthen their capacity were developed under the project.  These mechanisms include targeting specific companies to help them establish their energy efficiency department as well as encouraging public-private partnerships.  Under the project, a memorandum of understanding was signed with one of the  largest contracting companies in Egypt, offering the company both office and hands-on training.   Ten sites within the company have been identified for conducting energy audits.  A public-private partnership between a private sector ESCO and a utility company was also successfully established. Five energy audits have been conducted through this partnership.

            Technology verification services were provided under the project through contracts with professional centres to conduct assessments for energy conservation equipment.  The project has also encouraged the energy service companies to provide services such as furnace and boiler tune up.  A comprehensive study for customs duty reduction on selected energy conservation equipment, namely compact fluorescent lamps and high efficiency motors, has been forwarded to customs authorities for approval and implementation.  Energy codes (currently under revision) for both commercial and residential buildings were also developed.

            In spite of the many project initiatives, challenges remain.  Most ESCOs are under-capitalized and lack trained personnel.  The market will be more promising once economic reforms are completed and the recession period is bridged.   While indicators for the EIGR project are promising, continuing efforts at both the institutional and business levels are still needed.

            Contact: Walter Shearer, DSD, Tel. (212) 963-8444, E-mail: shearer@un.org

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Marshall Islands: Solar Energy for Health Centres

            The Energy and Transport Branch (ETB) of the Division for Sustainable Development of DESA, is currently engaged in a technical cooperation project with the Government of the Marshall Islands, begun in 1999, to provide solar photovoltaic power units for electrification of designated health centres in the Marshall Islands.  The project is financed by the United Nations Trust Fund for New and Renewable Sources of Energy and implemented by the ETB in close cooperation with the Ministry of Health and Environment and Ministry of Resource and Development Works of the Marshall Islands.

            Only a few of the more populated islands in the country have access to electricity.  The Government expressed a desire to provide electricity to the non-electrified areas using a suitable form of renewable energy instead of relying on diesel fuel.  Considering the remoteness of these islands, their unique ecosystems and limited power demands, solar photovoltaic systems seem to be the most viable options for providing electricity.

          This turnkey project envisages the supply and installation of solar power equipment in twelve non-electrified health centres in the Marshall Islands. Of the twelve health centres, all except one belong to the "small category" and the same type of electrical load has been adopted for specifying the needed systems. The eleven small health centres will be provided with:

• Indoor light points to be operated for 6 hours daily

• An outdoor streetlight to be installed in front of the health centres and powered from dusk to dawn

• A medical refrigerator (40 W)

• A 100-W capacity solar PV pump to lift water from the well

• A power supply for continuous operation of a radio

          All the devices will operate in standalone mode with a 12-V DC system.

          In the case of the Rong Rong Island health centre, a different approach has been adopted where a "centralized" solar power unit will provide grid quality electricity not only to the health centre but also to the small community on a commercial basis. This unit is intended to demonstrate the usefulness of solar power plants for the overall development of the village.

            Rong Rong Island is located near the Majuro atoll.   It is a small island comprising a church, a few houses, a health centre, a school and boys’ and a girls’ hostel.  All are located within 300 m of each other and therefore construction of a solar PV micro-power plant can provide grid quality power to all the consumers.  The solar power plant will provide electricity to the health centre, church, school, hostels and houses on a sustainable commercial basis. At present, expensive kerosene is being used in Rong Rong for lighting.  The operation and maintenance of the power plant will be the responsibility of the local authorities. The equipment supplier has provided the necessary training and manuals for operation and maintenance. If the Rong Rong pilot project is successful, similar solar power plants will be installed on other small islands in the Marshall Islands.

            Contact: Walter Shearer, DSD, Tel. (212) 963-8444, E-mail: shearer@un.org

Project IND/02/012:  Corporate Social Responsibility in India

            DESA (through the Socio-Economic Policy Advisory Services Branch of the Division for Social Policy and Development) in conjunction with the UNDP and the Confederation of Indian Industry, has been collaborating on the project, IND/02/012 on “Partnership for Corporate Social Responsibility and Development" in India.  Within the framework of the project and under the aegis of the India Partnership Forum, a nationwide survey involving 1000 companies was launched to obtain corporate insights on corporate social responsibility and allied issues. Price Waterhouse Coopers and the British Council collaborated with UNDP and the Confederation of Indian Industry (CII) in this initiative.

            The Survey Report was released by the Chief Minister of Andhra Pradesh, Mr. Chandrababu Naidu, at the CII Annual Social Summit at Hyderabad in November this year, who noted the on-going transition from a philanthropic approach to a stakeholder-based model of Corporate Social Responsibility (CSR) in India. There was extensive press coverage, print and electronic, on the Report.  The Report will be available on the websites of the CII, the British Council, Price Waterhouse Coopers and the Division for Social Policy and Development.

            The United Nations and the United Nations Development Programme (UN/UNDP) have been invited  to chair the roundtable on public-private partnership in social issues during the forthcoming India Economic Summit (the Indian chapter of the World Economic Forum).

            Contact: Adil Khan, DSPD,Tel. (212) 963-6168, Fax (212) 963-1265, E-mail: khan4@un.org

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Third Regional Training Workshop on Taxation
Brasilia, Brazil, 3-5 December
http://www.unpan.org/taxation.asp

            The Monterrey Consensus has encouraged, amongst others, s trengthened international tax cooperation through enhanced dialogue among national tax authorities.  In pursuance of this, the Division for Public Economics and Public Administration (DPEPA) will organize the Third Regional Training Workshop on Taxation, in association with the Inter-American Center of Tax Administrations (CIAT) and the Government of Brazil.

            The objective of the Training Workshop, whose main focus is resource mobilization through taxation, is primarily to upgrade the technical skills of tax administrators from developing countries in Central and South America and the Caribbean, and will include training on practical methods and strategies for combating tax avoidance and tax evasion. The Training Workshop will utilize the case study method, and lectures will be given by experts specializing in fiscal policy and revenue administration from international financial organizations and prominent academic institutions. The Training Workshop will also present an opportunity for participants to share experiences and points of view on methods of resource mobilization and improving efficiency and effectiveness of tax administration.

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Global Initiatives

Development Dividend Projects : 2004-2005

          The following project proposals by members of the Executive Committee for Economic and Social Affairs (EC-ESA) of the UN have been submitted to the General Assembly for approval.  They are to be funded from efficiency savings on UN operations.  Project figures range from $300,000 to over a million with the mean at about $600,000

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