The Sovereign Wealth Fund of Mozambique (FSM), which will be managed by the central bank, aims to “accumulate savings for future generations” with oil and natural gas revenues but will not be used to guarantee loans contracted by the state.“In its governance structure, it is intended that the Fund makes full use of the existing institutions in the country, guided by the principles of good governance, transparency, accountability, independence and inclusion, in line with international best practices”, defines the draft law creating the Sovereign Fund, to which Lusa had access today, approved by the cabinet and which goes up for discussion at the 42nd ordinary parliamentary session, which will take place in Maputo from 3 to 7 August.In the preamble to the proposal, the government recalls that in the context of research activities carried out in Areas 1 and 4, offshore the Rovuma block, “huge deposits of oil and non-associated natural gas” were discovered, estimated at around 180 trillion cubic feet.In this context, the operators and partners of Areas 1 and 4 submitted to the government three natural gas liquefaction projects, already approved, namely the Coral Sul Liquefied Natural Gas FLNG, offshore, the Golfinho/Atum Liquefied Natural Gas, and the Rovuma LNG Liquefied Natural Gas.Of these projects, Coral Sul FLNG stands out, which started natural gas production in the last quarter of 2022 and which, “in addition to generating significant opportunities for the development of national companies”, its exploitation “will generate direct profits for the state of more than $30 million US [€27.2 million euros] in 2022”, with an “annual average” of $740 million (€672.2 million) expected “during the life of the project”, until 2047.At the same time, research work is underway in five oil and gas exploration and production concession areas located in Angoche, Zambezi Delta, “with even greater benefits expected in the event of a commercial discovery”.“In this context, aiming to maximise the gains from the exploration and development of these non-renewable natural resources, defending against the high volatility that characterises their international prices and with the primary objective of benefiting present and future generations,” the government says it is of “paramount importance to create” the GSF.The draft law creating the fund defines that its objectives are “to contribute to leveraging the country’s economic and social development”, as well as to “stabilise the State Budget, counteracting the volatility of oil revenues” and to “accumulate savings for future generations, through the collection of revenues from oil and natural gas exploration and those resulting from the respective investments”.The FSM’s revenues are those from the production of liquefied natural gas from areas 1 and 4 offshore the Rovuma basin and future oil and natural gas development and production projects, as well as “return on investment of revenues” from the fund.These revenues result from the Petroleum Production Tax and the Corporate Income Tax, including the taxation of capital gains, in addition to “production bonuses” in terms to be regulated, and production sharing from profit oil.“Whenever a public calamity occurs in a given year that leads to the declaration of a State of Siege, State of Emergency and/or War (…) financial resources may be transferred from the GSF to support the budget”, in this case in higher percentages than foreseen (between 50 and 60% of revenues), upon proposal by the government.“The FSM must invest in assets other than those in the oil and gas sector”, the proposal in parliament also states, also assuming that these investments must be made “based on the policy” approved by the government.It also defined the “prohibition” of the use of FSM resources for “granting guarantees in the contracting of loans by the state or other entities”, also for “payment of debts and debt service without going through the budget”, for financing “political and party activities” and in the “contraction of debts”.The parliament, the government, the Bank of Mozambique, the Supervisory Committee and the Investment Advisory Board will be “responsible for the governance and management” of the FSM.However, the Bank of Mozambique will be the “operational manager” of the fund and the governor of the central bank the “ultimate responsible entity”, but management “must be carried out through a dedicated unit” within that institution. (ICE MAPUTO)

Fonte notizia: LUSA