Shifting Resource Governance and Policy Discourse from the Centre to Host

Communities

A CEDA - PWYP-Ghana proposal to rally community stakeholders to input into national policy
making in the extractive sector, and to address local resource governance issues in 3 mining,
and one frontline oil districts in Ghana

Submitted to PWYP-International Secretariat through the Anglophone West Africa Coordinator

January 10, 2023

 Project Overview, Implementers, and Collaborators

The project covers four extractive industry host communities (three mining, and one oil and
gas) over its three years lifespan. The first year will focus on institutional strengthening of
PWYP-Ghana, and re-organisation of its sub-national structures. In that same year, the technical
and organizational capacity, as well as the establishment of a framework for structured local
level engagement on resource governance issues will be piloted in one district (Obuasi).
In the second year, capacity building and the establishment of a framework for structured local
level engagement on resource governance issues will be scaled up to cover two more districts
(Prestea Huni Valley, and Ahafo).
In the third year, capacity building and the establishment of a framework for structured local
level engagement on resource governance issues will focus on one district (Ellembele)
Implementing partners will enter into an MoU with the Ghana EITI (GHEITI) as collaborators,
with clear delineation of roles and responsibilities of the partners.
Project Implementers: Project implementers are: Centre for Extractives and Development
Africa (CEDA), PWYP-Ghana and its sub-national structures in the project districts i.e. Obuasi,
Prestea Huni Valley, Ahafo, and Ellembelle.
Fiscal Agent for the Project: Centre for Extractives and Development Africa (CEDA) will act as
fiscal agent for the project, with spending decisions authorized by a joint project management
team, comprising the Steering Committee of PWYP-Ghana and the management of CEDA.
Collaborators: Ghana Extractive Industry Transparency Initiative (GHEITI), Minerals
Commission, Ghana Chamber of Mines, Environmental Protection Agency (EPA), and Traditional
Authorities in the project districts.
2.0 Project Proposal
2.1 Context
Extractive Industry policy engagement in Ghana appears overly concentrated in Accra, with very
little opportunity for local community input – and yet, it is these communities that will have to
live for decades to come, with the negative impacts of resource extraction.
In the early years of EITI implementation in Ghana, PWYP-Ghana mobilized local community
actors to engage with the initiative. It created sub-national structures in the major mining, oil
and gas districts of Ghana. These are known as the Extractive Engagement Groups (EEGs), which
also function as the local chapters of PWYP-Ghana. The groups were trained in extractive
industry governance issues, policy advocacy techniques, as well as budget and public
expenditure tracking.
Between 2011 and 2012, PWYP-Ghana, with the support of the Natural Resource Governance
Institute (NRGI), undertook a project to unpack Ghana’s EITI reconciliation reports for policy
engagement both at the national and subnational levels.
The project to unpack the GHEITI reports for citizens’ engagement towards policy and practice
change, involved deeper analysis of the GHEITI reports within micro and macro- economic
contexts, and sought to establish their full socio-economic development implications for the
State and its citizens. The project was successful, in terms of its social mobilization dividends,
and in highlighting key challenges with subnational management of extractive revenues.
After four years of PWYP-Ghana-led campaigning around the poor management of mineral
revenues at the local level, the government enacted the Minerals Development Fund (MDF) Act
to provide legislative backing to the sub-national revenue sharing arrangement in 2016. The Act
established an additional benefit stream for mining host communities, under the Mining
Community Development Scheme (MCDS). The full implementation of the Act did not begin, till
2019, and slowed down partly as a result of the COVID pandemic. Due to lock down and
subsequent COVID-related restrictions on mobility and public gathering, civil society
mobilisation and organisation to engage and to track the MCDS funds and expenditures were
constrained.

The advocacy momentum of PWYP-Ghana and its sub-national structures have since waned
considerably. At the same time, the EITI has since 2016, evolved to cover other links in the
Extractive Industry value chain, such as, Sub-national transfers, Gender reporting, Beneficial
Ownership Disclosure, Environmental reporting, with Energy Transition already under
discussion.
PWYP-Ghana has however, not managed to marshal resources to build the technical capacity of
its members on these issues, for effective engagement.
Indeed, a study commissioned by the Ghana EITI and the EITI International Secretariat on
Empowering Communities to Participate in the Oversight of the Extractive Sector in Ghana,
revealed among others, that local communities found the content of the GHEITI Reconciliation
Reports too technical and difficult to understand. The report suggested that, there is value in
using community voices that can cross-check and analyse the GHEITI reports and project level
data to support policy engagement at the local level; and urged GHEITI to develop a deliberate
strategy to leverage on the work of CeSIS, PWYP-Ghana’s Extractive Engagement Groups (EEGs),
and others to promote local level engagement around its reports.

This project proposal takes a cue from the earlier interventions of PWYP-Ghana, which made
EITI
Reconciliation Reports accessible and user-friendly to CSOs and Community-Based Groups; and
is guided by the gaps and weaknesses highlighted in the GHEITI study on Empowering Local
Communities to Participate in the Oversight of the Extractive sector in Ghana. It is intended
to strengthen the institutional capacity of PWYP-Ghana for effective coordination of its
activities,
build the technical and organizational capacity of its local chapters to engage on resource
governance and revenue management issues at the local level. It will again, analyse recent
GHEITI
reports and repackage them for policy engagement both at the national and sub-national
levels.

2.2 Expected Outcomes:

1. PWYP-Ghana’s institutional capacity strengthened.

2. Local level technical and organisational capacity enhanced.
3. Community dialogue on local resource governance structured and sustained.

2.3 Proposed Approach / Activities

Approach
The approach to pursuing the stated outcomes will include the establishment and
strengthening
of stakeholder partnerships with groups and entities such as the Ghana EITI, Minerals
Commission, the Ghana Chamber of Mines, the Environmental Protection Agency; Local and
traditional authorities. It will also involve coalition building and networking with other
organised
groups and trade associations for collaborative engagement; as well as revenue / expenditure
tracking and analysis for evidence-based advocacy.
 Activities:

Expected Year 1 Activities Funding Year 2 Activities Funding Year 3 Activities Funding
Outcome Source Source Source
PWYP-Ghana’s Formalise PWYP- PWYP- Reconstruct PWYP- Project Review PWYP-Ghana Project
institutional capacity Ghana’s existence, as Ghana Ghana Website Funds Constitution and Funds
strengthened agreed at last AGM other governance
manuals
Develop a new 5 year Project Revise PWYP-Ghana Project Hold General Project
strategic plan. Funds communication Funds Meeting to adopt Funds
strategy revised Constitution
Organise a 3-day Joint Hold Technical Project Undertake a gender Project
capacity building Financing, Roundtable on Energy Funds and social inclusion Funds
workshop on EITI with Transition with a view audit of Ghana’s
Standard and the 2020 GHEITI to developing a Mining, Oil and Gas
Reconcilation Reports monitoring framework Sector, for policy
for 40 PWYP-Ghana for Ghana’s mining, oil engagement..
members and gas industries
Local level technical Re-organise sub- Project Re-organise sub- Project Re-organise sub- Project
and organisational national structures in Funds national structures in Funds national structures in Funds
capacity to engage on Western mining Western mining one frontline oil
EITI and other natural enclave (Prestea Huni enclave (Prestea Huni district (Ellembelle)
resource governance Valley) and Ashanti Valley), and Ahafo
initiatives enhanced (Obuasi) (Kenyasi)
Develop MDF tracking Project Train EGG members in Project Train EEG in Project
tools and train EEG Funds Prestea Huni Valley Funds Ellembelle to track Funds
(Obuasi) to pilot them and Ahafo to track the MDF and oil and gas
MDF resources revenues accruing
directly to the district
Structured and Support GHEITI to Joint Work with GHEITI to Joint Work with GHEITI to Joint
sustained community establish local MSG in Financing establish local MSG in Financing, establish local MSG Financing,
dialogue on local Obuasi. with Prestea Huni Valley with in Ellembelle with
resource governance GHEITI and Ahafo GHEITI GHEITI
provides local
solutions to local EI Summarise local level Project Summarise local level Project Summarise local level Project
governance issues. issues, including social Funds issues, including social Funds issues, including Funds
inclusivity dimensions inclusivity dimensions social inclusivity
in the 2020 GHEITI in the 2020/21 GHEITI dimensions in the
reports for local reports for local 2021/22 GHEITI
dissemination and dissemination and reports for local
 interactive radio interactive radio dissemination and
discussions in project discussions in Prestea interactive radio
district. Huni Valley and Ahafo. discussions in
Ellembelle
Annual project Collect feedback and PWYP- Collect feedback and PWYP- Collect feedback and PWYP-
review and report evidences from project Ghana / evidences from two Ghana/ evidences from Ghana/
district. CEDA project districts. CEDA project district. CEDA
writing Hold a project review Project Hold a project review Project Hold end of project Project
meeting Funds meeting Funds review meeting Funds
Prepare and share PWYP- Prepare and share PWYP- Prepare and share PWYP-
annual project report Ghana / annual project report Ghana/ end of project report Ghana/
CEDA CEDA CEDA
2.4 Monitoring and Evaluation:

3.0 Prior Experience and Funding

4.0 Budget: