Presentation session 5 colombia's general system of royalty payments

668 views

Published on

Mr Javier Villareal, Main Advisor for Royalties Affairs, National Planning Department of Colombia during the Second Meeting of the Policy Dialogue on Natural Resource-based Development, held on 3-4 June 2014 at OECD Headquarters in Paris.

Published in: Government & Nonprofit
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
668
On SlideShare
0
From Embeds
0
Number of Embeds
12
Actions
Shares
0
Downloads
8
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Presentation session 5 colombia's general system of royalty payments

  1. 1. National Planning Department www.dnp.gov.co
  2. 2. Colombian General Royalties System Opportunities and Challenges Behind the Reform Javier Antonio Villarreal Paris. June 3rd, 2014 School- Tumaco
  3. 3. Colombia is the 3rd economy in Latin America  Decentralized country  32 departments, 1.102 municipalities, 13 Metropolitan areas  Between 2009 and 2013 GDP average growth was 4,1%  Nevertheless regional GDP disparities need policies to reduce inequity.  While Bogota’s participation in national GDP is 24%, Vichada’s participation is 1%.
  4. 4. Source: SGR and DNP, 2013 Increasing gaps 17 % of population had 80% of resources Funds were focused on 8 departments Earmarked use: health, education, water and sanitation Before 2011 After 2011 100% of population allocated with resources Savings and investment funds Serves all departments 10% of Royalties go to Science, Technology and Innovation Fund (U$ 484 million per year) Non earmarked use of funds Colombia’s Royalties System A Territorial Inclusive Policy for Development
  5. 5. SGR is System that democratizes the use of royalties Equity • Wealth that arises from natural resources belongs to all Colombians Regional impact • The system created regions, aiming to provide incentives for regional impact project design and implementation, in order to promote development and competitiveness in the country Transparency and more efficient use of resources • More coordination between national and local governments, and within regions • Improve public investment planning and resource execution Savings • For periods when royalties income is lower • To make public expenditure sustainable • To honor obligations on pensions at the regional level 1 2 3 4
  6. 6. Funds Within the SGR SGR 1,3% SGR Operation 0,7% Monitoring, control and evaluation system of royalties 0,5% Special condition’s municipalities 2% Oil fields oversight and mapping 10 % 20 % 10 % 34, 5% 6,6 % 9,9% 16,5% 9%60% 10 % 20% 10% 6,6 %
  7. 7. MUNICIPAL OCAD TS Defines the project to be funded by SGR Assess, evaluates, prioritises and approves investment projects submitted by governments (depending on whether it´s National, Departmental, Municipal or ST&I) Decides the execution of the projects If a project is rejected by the OCAD the Entity (National, Municipal, Departmental, ST&I) does not lose the royalty funds, but is able to design a new one. DEPARTMENTALREGIONAL SCIENCE TECHNOLOGY & INNOVATION Multilevel Governance Within SGR: OCAD *TS: Technical Secretariat - *OCAD: Spanish acronyms for a Collegiate Board for Administration and Decision
  8. 8. Ongoing Projects 2640 Completed Projects 774 Capacity-building resources 2013 ($US thousands) $ 106 $ 66 $ 66 $ 26 $ 23 $ 21 $ 18 $ 15 $ 12 $ - $ 50 $ 100 $ 150 ST OCAD regionales Departamentos Corporaciones autónomas Municipios cat. 6 Municipios cat. 5 Municipios cat. 4 Municipios cat. 3 Municipios cat. 2 Municipios cat. 1 More than $353K US have been allocated to sub-national governments’ capacity building strategy % projects approved in OCAD Direct. Tranf [PORCENTA JE] Esp. RCF 40% RCF [PORCENTA JE] RDF [PORCENT AJE] ST&I [PORCENT AJE] Municipalities Cat.1 Municipalities Cat. 2 Municipalities Cat. 3 Municipalities Cat. 4 Municipalities Cat. 5 Municipalities Cat.6 CAR Departments Regions Municipalities and departments have strengthened their planning capacity
  9. 9. Transport $1.8 US Billion 1.594 projects The SGR invests in different sectors Science, Technology and Innovation $0.8 US Billion 204 projects Education $0.8 US Billion 568 projects Environment $0.2 US Billion 180 projects Housing $0.7 US Billion 716 projects Health $0.2 US Billion 206 projects Agriculture $0.4 US Billion 638 projects
  10. 10. Data report and follow up online SUIFP Monitoring system GESPROY Citizen’s follow up tools MapaRegalías www.maparegalias.sgr.gov.co www.sgr.gov.co Reports for national, departmental and municipal scale $29US million Transparency tools are the core of the System
  11. 11. Challenges 1. Closing territorial gaps 2. Institutional strengthening 3. Multilevel governance through OCAD 4. ST&I for competitiveness 5. From a project based system to a programme-based system 6. Transparency as a cross cutting strategy to the system  All departments have access to royalties funds  Specialized teams working hand in hand with departments and municipalities to develop projects: capacity building  ST&I fund counting on the participation of academia and private sector  5 multiregional projects  Surveillance, follow up and accountability systems How is Colombia facing these challenges? The SGR is addressing key challenges in Colombia
  12. 12. javillarreal@dnp.gov.co Tel. (+57 1) 3815000 Cra 10 N°10 – 55 Piso 19 Bogotá - Colombia Javier Villarreal Villaquirán www.dnp.gov.co Thank you

×