Funding Opportunity 72068521RFA00016 (1).pdf

Funding Opportunity No.72068521RFA00016

USAID/Senegal Transparency and Accountability in the Extractive Sector

(TRACES)

Issue Date: December 3, 2021

Deadline for Question: December 13,2021

Response to Questions due: December 21, 2021

Closing Date: January 20, 2021

Closing Time: 15:00 Dakar Local time

Subject: Notice of Funding Opportunity Number:

72068521RFA00016

Program Title: USAID/Senegal Transparency and

Accountability in the Extractive Sector

Federal Assistance Listing Number: 98.001

Ladies/Gentlemen:

The United States Agency for International Development (USAID) is seeking applications for a cooperative agreement from qualified entities to implement the TRACES program. Eligibility for this award is not restricted. USAID intends to make an award to the applicant(s) who best meets the objectives of this funding opportunity based on the merit review criteria described in this

NOFO subject to a risk assessment. Eligible parties interested in submitting an application are encouraged to read this NOFO thoroughly to understand the type of program sought, application submission requirements and selection process.

To be eligible for award, the applicant must provide all information as required in this NOFO and meet eligibility standards in Section C of this NOFO. This funding opportunity is posted on www.grants.gov, and may be amended. It is the responsibility of the applicant to regularly check the website to ensure they have the latest information pertaining to this notice of funding opportunity and to ensure that the NOFO has been received from the internet in its entirety. USAID bears no responsibility for data errors resulting from transmission or conversion process. If you have difficulty registering on www.grants.gov or accessing the NOFO, please contact the

Grants.gov Helpdesk at 1-800-518-4726 or via email at support@grants.gov for technical assistance.

USAID may not award to an applicant unless the applicant has complied with all applicable unique entity identifier and System for Award Management (SAM) requirements detailed in Section D.6.f.

The registration process may take many weeks to complete. Therefore, applicants are encouraged to begin registration early in the process.

http://www.grants.gov/ mailto:support@grants.gov

Please send any questions to the point(s) of contact identified in Section D. The deadline for questions is shown above. Responses to questions received prior to the deadline will be furnished to all potential applicants through an amendment to this notice posted to www.grants.gov.

Issuance of this notice of funding opportunity does not constitute an award commitment on the part of the Government nor does it commit the Government to pay for any costs incurred in preparation or submission of comments/suggestions or an application. Applications are submitted at the risk of the applicant. All preparation and submission costs are at the applicant’s expense.

Thank you for your interest in USAID programs.

Sincerely, Jaime Dominguez

Deputy Director

Regional Agreement Office

SECTION A: PROGRAM DESCRIPTION 4

SECTION B: FEDERAL AWARD INFORMATION 25

SECTION C: ELIGIBILITY INFORMATION 27

SECTION D: APPLICATION AND SUBMISSION INFORMATION 27

SECTION E: APPLICATION REVIEW INFORMATION 44

SECTION F: FEDERAL AWARD ADMINISTRATION INFORMATION 50

SECTION G: FEDERAL AWARDING AGENCY CONTACT(S) 59

SECTION H: OTHER INFORMATION 60

SECTION I- ANNEXES 60

SECTION A: PROGRAM DESCRIPTION

This funding opportunity is authorized under the Foreign Assistance Act (FAA) of 1961, as amended. The resulting award will be subject to 2 CFR 200 – Uniform Administrative

Requirements, Cost Principles, and Audit Requirements for Federal Awards, and USAID’s supplement, 2 CFR 700, as well as the additional requirements found in Section F.

1. Introduction

The goal of this four-year activity (Transparency and Accountability in the Extractive Sector) is to increase transparency and accountability mechanisms in the mining, oil, and gas sectors for better revenue management and distribution. The design of this activity is the result of an assessment of the current state of transparency in the extractive sector in Senegal1, with a focus on the oil and gas sector, given its anticipated significance for the country’s economy. It is expected that the recent discovery of abundant reserves of oil and gas combined with the significant deposits of mineral resources have the potential to launch Senegal into the category of resource-rich country by 2035, as envisaged by the “Plan Sénégal Emergent”. It is estimated that these resources would lead to a major transformation of Senegalese economy with a macroeconomic impact and an increase of the GDP. So, this is a unique opportunity to enhance

Senegal’s self-reliance while improving and promoting transparency in the extractive resource sector in line with the “Extractive Industries Transparency Initiative” (EITI) standards and practices2. However, the country faces governance challenges, especially to ensure inclusive growth using extractive industry revenues to reduce poverty across the country. Transparency is an important tool in achieving inclusive growth. The Senegalese government appeared committed to transparency, with the example of the adoption of the code of transparency3, the current Public

Financial Management (PFM) reform4, and the “satisfactory progress” score for its EITI country submission. However, despite having taken important steps, a considerable number of reforms have yet to be implemented. This activity is seen as a determining factor for fostering citizens to hold governments and the private sector accountable, identify institutional and regulatory shortcomings, and enhance efficiency in the use and allocation of public resources. It is included in the DRGP PAD amended on June 25, 2019. It will be connected and will closely collaborate with current and upcoming DRGP activities such as GoLD5, Kawral6, the PFM award, and the

Power Africa activity in the energy sector. Civil society organizations (CSOs) and the media are key players in this approach of accountability going beyond transparency. They will be, in addition to the national Committee of EITI and community leaders, the target groups for the capacity building support activities.

1 Transparency in extractive industries report 2 EITI is a global standard for the good governance of oil, gas, and mineral resources. It seeks to address key governance issues and requires information along the extractive industry value chain from the point of extraction, to how the revenue makes its way through the government, to how it contributes to the economy. This includes how licenses and contracts are allocated and registered, who are the beneficial owners of those operations, what the fiscal and legal arrangements are, how much is produced, how much is paid, where are those revenues allocated, and what is the contribution to the economy, including employment.

3 Loi No 2012-22 du 27 Decembre 2012 portant code de transparence dans la gestion des finances publiques.

4 Directive 06/2009/CM/UEMOA du 26 Juin 2009/ Loi organique 2011-15 relative aux lois de finances.

5 Governance for Local Development 6 Support civil society to advocate for more mining revenues allocated to improve services delivery for local communities

2. Program Description

The proposed activity will focus on promoting transparency and accountability in the extractive sector as key factors of better revenues management and distribution, and sustainable development outcomes. In line with the Journey to Self-Reliance (J2SR) and particularly the

Financing Self-Reliance (FSR) and the New Partnership initiative (NPI), this activity aims at promoting extractive revenues management in an accountable, transparent and effective manner to support development priorities and community’s needs through increased CSO and media oversight and engagement.

2.1. Background and Problem Analysis

Senegal is endowed with natural resources and has an extensive extraction history. Its phosphate industry began in the 1940s and 50s, with the opening of two phosphate mines in the Thiès

Region. Recently, the sector has started seriously contributing to Senegal’s economy. In 2004, Sabodala was established as the first formal gold mine in the Kédougou Region, with other companies following suit. Other significant mining activities include titanium and zirconium extraction under the Grande Côte mineral sands project in the Thiès Region, which started production in 2014.

After more than 60 years of exploration in the oil and gas sector, the picture changed dramatically in 2014, when Cairn Energy announced two consecutive exploration successes in deep sea areas, referred to as “blocks.” Kosmos Energy followed this in 2015 with the announcement of a discovery of major gas reserves.

Over the past few years, the proportion of the mining sector in total GDP has turned around 2.5% with a potential to increase. The International Monetary Fund (IMF)7 estimated that fiscal revenues from oil and gas sectors would average about 1.5 % of GDP over a 25-year period and about 3% of GDP when production peaks. However, the increase in economic growth would be higher than just the direct effect of the production itself because it will drive a chain reaction on supplying industries. Those forecasts are disrupted by the uncertainty regarding the spread of

Covid-19 pandemic in Senegal and around the world. According to PETROSEN8, the coronavirus outbreak increases risk aversion from investors who may invoke a Force Majeure defense due to risks caused by global supply chain disruption. Certain oil and gas companies announced possible delays in production of first barrels from 2021 to 2023. Some specialists think that this situation will have a downside risk for short term growth in Senegal. For others, this delay is not good for the country’s financial equilibrium, but it will allow Senegal to gain time to better think about the integration of oil and gas revenues into its economy. This aspect is of interest for the proposed activity. Whatever the situation, the challenge remains to turn this wealth into broad-based and equitable socio-economic development and transformation for Senegalese citizens. The EITI states that “transparent management of Natural Resources (NR) and accountability in extractive revenues can contribute to the economic growth of a Country”. As a demonstration of the country's commitment to adhering to the principles and standards of the EITI process, Senegal

International Monetary Funds societe des petroles du Senegal https://en.wikipedia.org/wiki/Thies_Region https://en.wikipedia.org/wiki/Thies_Region formally joined the international association in 2012. Since joining the EITI, Senegal has consistently received an overall annual grade of satisfactory for implementing such as publishing reports and disclosing tax revenues.

The DRGP research findings9, conducted in accordance with the approach used by EITI to assess the state of governance along the extractive sector value chain stages, revealed a critical lack of transparency and a set of issues and challenges that hamper the receipt of full benefits from the presence of extraction resources. Although Senegal has been implementing the EITI Standards, the fact remains that progress in terms of transparency is very slow. This situation is mainly due to a lack of independent, capable and strong oversight mechanisms or civic groups that can effectively demand accountability and influence the management and distribution of extractive revenues for development priorities. Effective oversight requires an enabling environment, and resources and skills which these groups often lack. The set of challenges and concerns that weaken transparency and an independent oversight group are listed as follow:

● Weak law and regulations enforcement particularly when it comes to distributing the proceeds from social and economic development funds generated by revenues from a percentage of sales of the minerals, oil and gas extracted.

● Absence of a publicly accessible metered system for tracking, documenting and reporting actual quantity of natural resources extracted.

● Lack of resources and expertise for Civil Society Organizations (CSOs) and media:

the advocacy and influence role the CSOs and media could play is weakened by limited knowledge and poor understanding of how transparency can contribute to safeguarding their own interests.

● Deficiency in technical and financial capacity and systems: Senegal administration lacks infrastructure for producing an effective and appropriate information system that can provide user-centered information to the public in a timely, disaggregated, reliable, and relevant manner.

● Lack of information exchange and coordination framework between central government authorities and local actors; local and regional authorities are left uninformed.

For example, the governors and mayors have limited power over decisions in the extractive sector, whereas their relationships with the technical units and private companies are purely functional, not hierarchical.

● Weak understanding of community rights by citizens, social and environmental requirements from the companies and the State

● Insufficient autonomous and strong entities or mechanisms for oversight and transparency to make sure extraction revenues are wisely and effectively invested in projects that generate growth and produce benefits for communities

● Risk of resource curse: Corruption is often a mix of poor governance and rising flows of extractives-based revenue in many developing countries.

USAID/Senegal's next Country Development Cooperative Strategy (CDCS) finalized before the end of 2020, is focused on helping Senegal better plan, finance, and carry out solutions to its development challenges by: implementing key reforms; actively engaging with a strengthened

Transparency in extractive industries report. 2019 private sector and a vibrant civil society; and harnessing the potential of women and youth." "The

Activity will contribute to one of the planned Development Objectives of the new CDCS, which is to improve Government of Senegal (GOS) effectiveness and accountability by improving government capacity to transparently and equitably manage extractive resources." The recipient should submit a strong technical document, in line with this expectation, that shows a clear understanding of the main issues identified above and provide a sound approach and implementation plan demonstrating its ability to strengthen civil society and media capacity and influence, and to work collaboratively with key stakeholders to advance transparency policy and practices.

2.2. Geographic focus

It is anticipated that activities will focus at both central and local levels. Part of the key illustrative activities are policy reform and national advocacy driven. The recipient will spend time and effort working with key stakeholders, collaborating with experts and academics, and holding regular meetings with other counterparts and partners. Those types of activities will occur at the central level, particularly the capital city where most of these actors are located. However, knowing that mining and oil and gas exploitations are in the countryside, far from Dakar, specific activities will be conducted “in siti”. So, to address community rights and needs, and better approach local authorities and companies, localities or regions where extractive companies are operating will be targeted. The regions of Thies (Kayar, Diogo), Kedougou (Sabodala), St. Louis, Matam, and

Fatick (Iles du Saloum) will be the zones of intervention of the program at the local level.

2.3. Summary of relevant USG and donor activities

The U.S. Government is partnering with the Senegal State to promote prosperity, strengthen democratic values, human rights and governance, and human capital. Among the panoply of support provided by the American government through USAID development assistance, certain programs have similarities with this application. In the economic growth sector, the component of

Power Africa program supporting the “Conseil national de Regulation de l’Electricite’ (CNRE) to hold open dialogue with civil society and the private sector for addressing the issue of transparency in the sector of electricity is complementary to this program. In the DRGP sector, the “Governance for Local Development” (GoLD), “Kawral,” and the upcoming PFM activity are all addressing the issues of effectiveness and transparency in the management of public resources, and are in coherence and connection with the transparency in the extractive sector.

The World Bank (WB) provides a $29 million in development aid credit to Senegal to strengthen the country’s institutional capacities to negotiate complex agreements in the extractive industries.

This technical assistance from the World Bank will help ensure Senegalese oil and gas development projects take place in an environment conducive to private sector investments aligned with the public interest, engage effectively with citizens and other key stakeholders on issues relevant to gas and oil development projects. The African Development Bank (AFDB) , while prioritizing renewable energy, attaches importance to fossil fuels which constitutes a significant part of the overall energy mix investment in Senegal.

Beside the institutional donors, Oxfam International is partnering with local civil society organizations to advocate for more transparency and public participation in the management of the extractive sector. Those programs have common interests engaging with stakeholders and citizens in the petroleum sector, around the use of Environmental and Social Assessment reports. These activities are windows of opportunities where USAID could partner and leverage resources and efforts to be more impactful.

2.4. Lessons Learned

The DRGP office supported a strengthened civil society, citizen engagement and participation in public policy formulation or reform, budget transparency with significant progress, as well as lessons learned.

● Transformational leadership: Developing civic actors’ leadership skills and organizational system and network is critical for fostering collective actions that make the difference and improve their influence in public policy making. The achievements reached through Parliamentary Assistance and Citizen Engagement” (PACE) and “Sunu Budget” programs in building relationships and establishing a dialogue framework between citizens and government officials are examples of transformational leadership.

● Acceleration of policy reform or decision-making process: Policy and legal reforms take time when they stay with bureaucratic procedures and officials’ hands. And when they are complex and difficult to implement, only advocacy works, media and public opinion can influence the acceleration of the process or their enforcement.

● Liaison between group interests and sector of activities: Understanding their direct interests in a specific sector makes citizens more engaged and more determined to demand accountability and the respect of their rights.

2.5. Logical framework and intended results

The overall goal of the “Transparency and Accountability in the Extractive Sector” (TRACES) activity is: Increased transparency and accountability mechanisms in the mining, oil and gas sectors for better revenue management and distribution. The specific purpose is to promote more transparency of extractive revenues management and distribution through improved oversight mechanisms (particularly independent CSO and media, and eventually the CN-EITI) that have the capability to monitor extractive revenues management and distribution, advocate for community’s rights and hold the government accountable. The rationale is that Senegalese citizens can’t fully profit from their own resources if they don’t have the capability to monitor extractive revenue management and distribution and demand accountability from the government and companies, if the power of influence of CSO, media and community is weak and if the flow of information is not accessible to the wider public. The good governance of natural resources is conducive to an enabling environment towards effective management of resource wealth and the achievement of

Senegal’s development objectives reflected in the Senegalese Development plan (PSE). In this vein, the development hypothesis is articulated as follows:

● If the extractive sector revenue management is improved;

● If civil society, media and independent oversight mechanism capacity and influence is strengthened;

● If local actors’ engagement and access to their rights are increased;

● Then transparency and accountability in the management and distribution of extractive revenues will be increased.

2.5.1. Logical framework

The table below describes the logical framework that governs the proposed Activity.

Activity Goal: Increased transparency and accountability mechanisms in the mining, oil and gas sectors for better revenue management and distribution

Sub-purpose I/IR.I Improved extractive sector revenues management

Sub-purpose 2/ IR.2 Strengthened influential Civil Society and Media

Sub-purpose 3/ IR.3 Increased local actors engagement and access to their rights

Activity Purpose: More transparency promoted through effective oversight mechanisms and revenue management

Sub-IR.1. Improved budget management of extractive revenues

Sub.IR.2.1. Increased access to and use of information and data

Sub-IR.3.1. Citizens and community’s knowledge and understanding of their rights increased

Sub-IR.2. Enhanced regulatory and institutional oversight mechanism

Sub-IR.2.2.

Strengthened CSO & media skills and capability to hold government accountable

Sub-IR.3.2. Improved local authorities participation in the governance of extractive resources

Sub-IR.2.3. More effective CSO and media advocacy work

Sub-IR.3.3. Increased equitable use of social and economic generated by the extractive sector

2.5.2. Expected Results

2.5.2.1. Improved extractive revenues management

2.5.2.1.1 Improved budget management of extractive resources

The transparent and accountable management of revenue from the extractive industry forms an important basis for improved governance, citizens trust and resources allocation. In the extractive value chain, revenues transparency should not only focus on the collection of taxes and royalties, but also include effective fiscal frameworks. It is critical that revenue from the extractive sector transits through the budget and be transparently presented within the GOS and to the public. The adoption of a national accounting system could allow better traceability of the recovery and a clear reconciliation of the data produced by the financial boards and assigning accountants.

The Office of the Auditor General, in accordance with the code of transparency, has pledged for the adoption of a national accounting system allowing a better traceability of the recoveries and a clear reconciliation of the data produced by the financial boards as well as the assigning accountants; the establishment of an integrated system capable of delivering pertinent statistics of the extractive sector instantly; and the creation of an integrated system within the relevant services to facilitate the monitoring of fiscal obligations and taxes due by extractive companies.

USAID/DRG is seeking, beside this proposed Activity, to improve the Public Financial

Management (PFM) system through another mechanism. The selected implementing partner should leverage efforts and resources with the potential awardee of the Public Financial management activity and other donors to address this issue towards improving the budget management system with a focus on the traceability of extractive revenues and maximize results in this domain.

2.5.2.1.2. Enhanced regulatory and institutional oversight mechanism

The extractive industries can only operate profitably and produce benefits for communities when sound and secure institutional and regulatory environments are in place and adhered to. Once in place, these institutions can ensure compliance with citizens’ rights, and environmental safeguards.

Among the oversight and regulatory bodies in Senegal, the National Committee (CN) of EITI is specialized in monitoring and overseeing the extractive industries sector. The Permanent Secretary

(PS) composed of professionals and led by a national coordinator performs under the supervision of a Multi-Stakeholders Group (MSG) comprising representatives of government agencies, civil society and private companies. Every year, it produces a report that reveals processes and practices of extractive sector operations and fiscal payments provided to the government through a reconciliation approach between what has been declared by companies and what the government treasury has received. When CN-EITI reports underline concerns related to extractive resources management, the MSG is a platform where varying interests can discuss possible remedies, pressure the relevant agency or company to respond and monitor progress. The recipient shall establish a strong partnership with the EITI Permanent Secretary in order to facilitate cross-stakeholders dialogue and develop alliance towards improved legal reform and implementation, and good practices. This partnership may lead to a sub-grant that addresses key issues pertaining to the effectiveness of this institution and the role of Civil Society within the MSG.

2.5.2.2. Strengthened influential civil society and media

Civil Society Organizations (CSOs) and media are instrumental in monitoring the sector, seeing what’s going on, preventing and denouncing mismanagement or corruption, and ultimately ensuring that natural resource extractives generate growth and development outcomes. However effective engagement and oversight require getting access to reliable data and information, having appropriate skills and resources and being able to take concrete actions to influence any process that may interest the extractive sector transparency and accountability.

The government’s approach to monitor the operations and ensure distribution of resources to specific sectors or communities is a factor of effective management. Both civil society organizations, legislators, and local governments lack the tools to effectively monitor the collection and use of revenue from the extractive sector.

2.5.2.2.1. Increased access to and use of information and data

Access to information is critical for enabling citizens to exercise their opinion and hold the government accountable and to enter informed dialogue about decisions which affect their lives.

Contribution to good governance of access to adequate data lies both in the willingness of the government to be transparent, and the ability of citizens to demand and use information. Both of which may be constrained in low capacity settings. Capacity of public bodies to provide information may be weak and officials may be unaware of their obligations vis-à-vis citizens.

Structural barriers such as lack of access to the internet in remote areas and technicality of data could prevent poor people, communities, and citizens in general from accessing and using information even if it was available. Another major issue that arises is confidential practices or the lack of publication of the various oil and mining licenses and contracts. That’s why it is fundamental for CSOs and Media to develop a strategy or approach that provides guidance and enables them to identify, understand and discuss data in response to the priorities and concerns of different stakeholders, particularly citizens, women and communities.

Questions that may be of interest to citizens: are company payments correct, received by the government and used to benefit citizens? What portion of revenues is a specific community supposed to get from an extractive company operating in each region? Is there any suspicion of corruption, unfair contract, unpaid taxes and environmental and social fees, are contacts signed or licenses issued in consideration of national interests?

The access to information depends, first, on the disclosure and availability of data for the public.

Through reports or other channels providing qualitative information and quantitative data.

USAID/DRGP expects from the future awardee to prioritize providing citizens access to reliable and comprehensive information and data relevant to the extractive sector and its oversight. Having access to easy to use data will make citizens and CSOs better able to take advantage of opportunities for participation and accountability and use existing mechanisms that allow them to analyze, provide feedback, open discussion with the government or companies, and/or develop an advocacy strategy (including wide dissemination of data and response, mass mobilization) to push pressure on decision-makers for taking action. Improving the quality, and frequency of data available to the public will also help manage expectations for both government officials and the general public who may have unrealistic expectations regarding access to wealth, employment and other public benefits associated with the extractive sector.

2.5.2.2.2. Strengthened CSO and media skills and capability to hold the government accountable

CSOs in the extractive sector in Senegal are advocating for a more inclusive and transparent governance of natural resources. Since this sector is complex and difficult to penetrate, they should strengthen their capacity to be heard and influential. Effective oversight requires skills and resources which organizations and media often lack, but with the right support, people can take action to monitor what’s going on, prevent mismanagement and advocate for citizens’ rights. The capacity strengthening support might have a correlation with the main roles CSOs and media are intended to fulfill. Groups of CSOs including Non-Governmental Organizations, Faith-Based

Groups, Academics, Community Based-Organizations (CBOs), and Media play an instrumental role in transparency by:

● Collecting, disseminating and using information and data,

● Setting a public agenda which can influence resource allocation and public investment.

● Representing citizens' voices and marginalized actors in the decision-making process.

● Monitoring and influencing public and private actors’ adherence to the agreed rules, laws, policies, and cultural practices when it comes to fair natural resource management.

USAID/DRGP expects applicants to include in their proposal actions that will strengthen the capacities of national and local CSO and media to improve their effectiveness in participating in decision making, as well as in implementing national and local policies related to extractive industries.

2.5.2.2.3. More effective CSO and media advocacy work

Considering the issues and challenges raised above, the new program should focus more on making civil society (including community and citizens), media and private sector more influential through increasing their access to information, their capacity, expertise and coalitions, developing their advocacy role and power of influence, holding government accountable, reconciling or cleaning up the legal framework to meet community needs 10, and improving the understanding of community rights, regulations and operations by key stakeholders. The implementation of those kinds of actions suppose a consistent, coherent and well-articulated approach. For example, questions such as what? how? when? with whom? for what purpose? should guide the implementer to intervene in a specific domain of extractive industries transparency. The professionalism of CSO and media in their advocacy work should be reflected in each of their activities. The capacity strengthening efforts provided should be valued by concrete actions such as outreach events and forums for engagement of authorities and private companies, the use of a web-based and other devices tracking tools to increase dissemination of information and data...

10 Code minier and code pétrolier

2.5.2.3. Increased local actors’ engagement and access to their rights

Most of the mining, oil and gas projects are operating at the regional and local levels, but decisions are taken at the central level without any inputs from local authorities and governments. The centralization of power, resources and information prevent local actors from exercising their rights.

2.5.2.3.1. Citizens and communities’ knowledge and understanding of rights and regulations increased

The limited knowledge and poor understanding of the citizens and community rights by local governments and leaders hamper their ability to engage and be part of the decision-making processes. The approach of this activity is to provide local citizens and communities, including women, with knowledge, arguments and means of action to be aware of their rights and to fully engage in the fight for transparency and equity in the management and distribution of public revenue generated from the extractive industry. The social and environmental impact of the extraction activities is an area the awardee may also scrutinize in order to inform communities on the conclusions of studies done as a prerequisite of the operations. Often, the findings are not shared with local communities and they are not aware of the negative impact of the exploitation and the possible rehabilitation funds established to mitigate the negative impact. The awardee is expected to execute activities that result in an increase of public use and satisfaction with existing rehabilitation funds. As an illustration, the study on “Transparency in the Extractive Sector” reveals that local communities and their representatives in Cayar (Thiès), Hydrobase (Saint-Louis) have expressed deep concerns about offshore exploration and the upcoming gas exploration. The offshore projects are perceived as a threat to their already constrained environment where resources are very limited and inadequate to meet the needs of the population. In this context, the discovery of a gas field in the traditional fishing zone called “Guet Ndar” increases the risk of competition for natural resources. This is an issue that requires open discussion and clear understanding of each other’s interest, between fishermen, women processors, local leaders, companies and government agencies to prevent conflict and preserve resources. The recipient should work closely and possibly leverage resources with “Dekkal Guedj”11 to jointly address these issues raised by the fishermen community.

2.5.2.3.2. Information and participation of local authorities in the governance of resources improved

Local and regional authorities are often left uninformed about critical decisions taken and key aspects of the extractive projects within their own regions and communities. On one hand, there is a notable absence of information between the central and regional levels, particularly the decentralized administrations headed by governors and prefects. On the other, communication is absent between the regional representatives of the administration and the elected mayors and community leaders.

The governors have limited power over decisions in the extractive sector, whereas their relationships with the technical units are purely functional, not hierarchical. Similarly, private companies and investors cooperate with governors, but are not accountable to regional actors.

11 “dekkar Guedj” is a USAID (FtF) fisheries activity that aims to improve governance of sea resources

Knowing that the representatives of the State have under their supervision all local administrative units and respond on behalf of the government, it’s understandable to provide them with the information, resources and tools to ensure their supervisory and representation role. Local units that are supposed to supervise operations in the field and local governments representing community interests lack means, information and technical expertise to perform their mission.

While governmental actors are responsible for the management, planning and coordination at the central level, the responsibilities of the local governments are not well defined in mining, oil and gas exploitation. At the local level, companies often negotiate local development plans, outside of a licensing agreement, that can include a service provision for communities, employment training, or opportunities. In the same vein many companies provide ad hoc benefits to local communities as part of their corporate social responsibility portfolio. In order to take advantage of these benefits without distorting their local governance role, local officials need specific support to be able to negotiate, coordinate and monitor companies’ social intervention. Subnational governments can develop enough technical capacity to contend with challenges that come from extractives. Support to local officials could be combined with efforts to better engage other communities’ leaders. If they are well organized and coordinated, local actors could be in a position that private companies and the central government will take them into account in their political and management decisions. This Recipient shall enable them to play a more active role and manage the challenges and opportunities that affect or interest their constituencies.

2.5.2.3.3. Increased equitable use of social and economic funds generated by the extractive sector

In Senegal, the management of dedicated funds such as rehabilitation funds, equalization and local government funds, social mining funds, or future generations funds is problematic and requires strong advocacy work and pressure to be concretely implemented by the government and monitored by citizens. Their adaptation and effective implementation are one of the highest priorities on which the applicant may invest time and efforts. Senegal has adopted a series of regulations intended to ensure an equitable distribution of revenues across territories, or to protect local communities or future generations against the adverse consequences of the extractive operations. However, these are not implemented or operational due either to the reference of an enforcement decree which is not signed, or to the inappropriate or inapplicable decree adopted. It was the case of the Local Development Fund created by the 2016-32 Act. Hopefully, the government has adopted a new decree following a strong advocacy work done by CSO, particularly ONG 3D through the USAID/Kawral program. These legislations determine most of the extractive revenues that go directly and profit the communities, particularly those who are negatively impacted by the exploitation of resources. Their modification, adaptation and implementation are essential for an equitable distribution of revenues to the communities.

Illustrative activities

Overall, Overall, illustrative action areas for the activity include but are not limited to:

● Providing technical assistance to government agencies and institutions to improve the traceability of extractive revenues through the budget system and the transparency of extractive revenues management and distribution

● Supporting platform of dialogue between the multi-stakeholder group, the companies and the public

● developing a partnership with other implementers and donors to leverage resources and efforts to improve budget management systems…

● Providing technical support to the national branch of EITI as critical oversight mechanism in the extractive sector

● Assessing CSO and media skills, capability and weaknesses in developing collective actions and advocating for more transparency in the extractive sector; respond to assessment recommendations

● Training and mentoring civic actors to apply skills towards their own advocacy work

● Developing a gender sensitive approach and training CSO on gender and social inclusion issues in the extractive sectorial

● Strengthening Civil Society organizations and Media skills to improve their effectiveness in advocating for right measures, as well as their implementation.

● Increasing access to qualitative information and data and their use by the public

● Supporting outreach events and forums for engagement of private companies and government with CSO

● Strengthening civil society’s capacity to participate in policy formulation and contribute to policy implementation and impact.

● Supporting Civil Society coalition building and networking

● Enhancing community and citizen knowledge and engagement to exercise their rights

● Facilitating multi-stakeholders dialogue and commitment at both national and local levels

● Strengthening extractive revenues management traceability and transparency

● Supporting existing regulatory and accountability mechanisms and processes including the

EITI national branch

● Supporting civil society commitments to action and holding government agencies and institutions and companies accountable for responsible execution of their commitments

● Improving the quality and accessibility of evidence-based data relevant to decision-making

● Providing support for central and local levels exchange of information, coordination, including facilitating and convening events in coordination with USAID, such as stakeholder consultations, etc.

● Amplifying mass communication around transparency and accountability in the extractive sectors.

These action areas are intended to be illustrative but not complete. Additionally, the Applicant is expected to determine what skill sets and capacities are most relevant in the Senegal context to strengthen performance in these or other action areas and demonstrate how it can bring those skills to the Activity and the expected results.

Illustrative indicators

The below indicators are also indicative and provide the recipient with some guidance on the type of indicators it may consider including in their AMELP. Other contextual indicators collected by other organizations, such as EITI, should be monitored as appropriate. At a minimum, the indicators table contained in the AMELP should include USAID-standard indicators.

● Number of GOS officials receiving USG- supported training

● Number of GOS institutions or agencies receiving technical assistance from USG support

● Number of USG-assisted CSO that participate proceeding and/or engage in advocacy with national government

● Number of public forums resulting from USG assistance in which government, private companies and members of the public interact

● Number of people affiliated with CSO and media receiving USG supported training

● Number of individuals/groups from women and marginalized communities who received

USG support

● Number of USG-assisted campaigns to enhance public understanding, NGO support and media coverage of transparent and accountable extractive sector

● Number of journalists and media trained

● Number of non-state news outlets assisted by USG.

● CBLD-9 (NPI indicator): Percent of USG-assisted organizations with improved performance [IM-level]

2.6. Technical Approach

The overall approach of the activity revolves around citizen and community knowledge, engagement and participation in the governance of extractive resources in order to protect their rights, preserve resources and influence public policy reform and implementation. The main objective of this activity is to ensure public revenue generated from the extractive industry leads to investments that perpetuate Senegal’s J2SR.

The areas of intervention will mainly focus at the central level where decisions are taken and policy reform initiatives are more relevant, and regions and Territorial Collectivities where extractive resources are exploited and companies operate. The implementation of such Activity requires from the recipient the following of rigorous principles, the development of an approach conducive to a successful implementation and an achievement of expected results.

● Transformational Leadership: Developing and supporting national CSO and Media leadership to actively push for transparent management of extractive resources in line with

EITI principles and guidance

● Compliance with Code of Transparency derived from WAEMU directives and internal legal framework including revised 2016 Constitution, mining code and petroleum code

● Collaboration and dialogue: in these complex sectors where interests are divergent, the best way to get common understanding and commitment is to encourage multi-stakeholder dialogue and consensus building. Interaction practices that connect decision makers and local actors are highly encouraged.

● Inclusion: support marginalized groups such as disabled persons, poor communities, women or children in being actively part of the decision-making processes to express their views and concerns and to have opportunities to get access to resources. Establishing a successful inclusive approach provides a useful avenue for bringing all actors together and focusing discussion on local context and solidarity.

● Trust-building: the extractive sector is a domain of suspicion and opacity. It is indicated to develop approaches that help bridge the gap and reduce distance between stakeholders.

The availability and exchange of information, the openness of decision makers, the positive attitude of civic activists and inclusive dialogue are among other factors that can increase trust between actors, transparency, accountability.

● Coordination: Collaborating and coordinating with internal and external actors such as

USAID implementing partners, other donors and implementers to improve efficiency and performance is a key factor of success.

● Monitoring, Evaluation and Learning (MEL): Generating and analyzing data-driven results related to extractive resources governance is a requirement.

3. Strategic Considerations

3.1. Gender analysis

While progress has been made on women's issues in Senegal (especially in terms of representation through the parity law and passage of important gender related legislation), women generally remain marginalized and face significant barriers in becoming fully enfranchised members of society. The multiple discrepancies and inequities that impact women and girls and prevent them from learning and participating in and benefiting from the development of the country are more significant in the extractive sector. Women’s participation in extractive industries activities remains low. The masculinity of this sector is recognized everywhere. In the remote areas where extractive industries operate in Senegal, women are often the most fully engaged in subsistence farming activities and are also most exposed and affected by any pollution arising from extractives projects. Most of the women evolve in the growing informal mining sector where they are exposed to sex work and sexual diseases. Men have most access to the benefits, which consist primarily of employment and income, while women and the families they care for are more vulnerable to the risks created by Extractive Industries, which consist of mostly harmful social and environmental impacts. This analysis revealed the limited women's access to benefits from the sector revenues and influence in decision-making. This activity seeks to be consistent with the goal of USAID’s

Gender Equality and Female Empowerment Policy (2012): to improve the lives of citizens around the world by advancing equality between women and girls to participate fully in and benefit from the development of their societies. It will contribute to an equitable social benefit of extractive resources and full participation of women and girls in all aspects of extractive activities. The activity shall empower women to have a greater and more consistent voice in civil society and in local service delivery decisions for their needs to be reflected.

3.2. Local systems - New Partnership Initiative

and key stakeholders is a guarantee of continuity of interventions beyond the life of the activity.

The analysis also shows that institutionalizing greater transparency of extractive revenues management and effective allocation for development outcomes aligns with the “Financing Self-reliance” which is a pillar of J2SR. This activity has tremendous potential to increase GOS 'ability to raise money and invest in its own development in a sustainable manner. This activity is an opportunity for USAID to tighten its collaboration with other development partners. Mentoring, training and building local capacity are significant elements of this activity and the broad objectives of human and institutional capacity development are integrated into it.

3.3. Self-Reliance and Sustainability

USAID considers sustainability to be achieved when host country partners and beneficiaries take ownership of development processes and maintain results beyond the life of a project. Based upon the trend of Senegal becoming a significant extractive resources exploiter and the current environment market by the Covid-19 pandemic, sustainability success is going to be a tremendous challenge. The activity as designed and envisioned, is sustainable, sustainability being promoted by interventions supporting fiscal transparency of the extractive sector, capacity development of local actors and system, and community-led activities. The approach based on existing structures takes place in an environment conducive to private sector investments aligned with the public interest and effective citizens and stakeholder’s engagement on issues relevant to the sector. The

WB support has some similarities with this activity, particularly in the areas of stakeholder and citizens’ engagement in the petroleum sector. The Communication around Environmental and

Social Assessment project, the training of beneficiaries are windows of opportunities where this activity could collaborate and possibly leverage funds with WB projects. The African

Development Bank (AFDB), while prioritizing renewable energy, attaches importance…