Special report

Chief negotiator lists Juba demands to Khartoum

Sunday, 26 February 2012
Written by Pagan Amum
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amumpress

South Sudan Chief Negotiator with Sudan, Pagan Amum on February 15, issued a statement detailing the negotiations with Khartoum authorities. Here below is the statement in full:

The Government of South Sudan travelled to Addis Ababa at the invitation of the African Union High Implementation Panel (AUIHP) to negotiate in good faith with the Government of Sudan on security, citizenship, demarcation of borders and oil. Consistent with our commitment to fully brief the international community, we will provide a full update on all the negotiations.

JPSM

The talk made a promising start when the Joint Political and Security Mechanism (JPSM) agreed on and signed an MoU on non-aggression on Friday 10th February, laying the foundations for peaceful co-existence. However the ink was not even dry and the Government of Sudan violated this pact by bombing Jau, Unity State on Sunday, 12 February 2012.

Arrears

The Government of Sudan owes the Government of South Sudan, its institutions and its people in excess of $5.8bn. These arrears arise from the obligations arising from the secession of South Sudan - such as redemption of the currency in circulation and unfulfilled obligations under the Comprehensive Peace Agreement - in particular the wealth sharing protocol articles 5, 6 and 7. The Government of Sudan on its own has submitted a $7bn claim largely comprising bogus claims on South Sudan - such as $3bn for people of the Sudan from South Sudan, without any additional explanation.

The negotiations on the arrears settlement have not progressed and are stuck on the issue of information disclosure, which has previously dogged the oil and debts and assets negotiations. Khartoum is in possession of most of the documentation related to oil and non-oil income that should have been shared during the CPA period, and which constitute the evidence that substantiates the claims and arrears it owes the South Sudan. Sudan is unwilling to provide the information required to assess the validity of the claims to the AUHIP or the RSS. This is contrary to the guiding principles guiding the negotiations and an agreement reached in December 2011 on the principles of disclosure and transparency. 

Citizenship

The parties have agreed to a nine-month transitional period - allowing citizens of each country to enjoy rights up to April 2012. However, throughout the period after the Referendum the GoS has engaged in a series of policies and actions to frustrate the enjoyment of rights by South Sudanese in Sudan:

(i)                   GoS has been obstructing the return of South Sudanese by closing the border and creating insecurity and increasing threats to South Sudanese returning from Sudan;

(ii)                 GoS has also delayed payment of pensions to South Sudanese who served in the Sudan army, police and civil service - and this is making them helpless and wait under duress for their dues, making many of them vulnerable to recruitment into militia groups to fight South Sudan;

(iii)                (iii) GoS has taken measures to close down and confiscate private companies owned by South Sudanese, contrary to even the law of the Republic of Sudan. Foreigners can own and run businesses- such as Indians, Ethiopians, Turks, Egyptians and Chinese; and there is absolutely no reasons to target South Sudanese, including South Sudanese shareholders in joint companies , who have been forced to deregister their companies and whose shares have been confiscated;

(iv)                South Sudanese youth are now forcibly being conscripted by the Bashir government, and they have gone to the extent that even university students are being recruited presumably to fight proxy war for Bashir against RSS, and;

(v)                 There is serious and grave outstanding issue of the 35,000 young people and women who are enslaved during the war and have not been freed. The organization to free these slaves has been dissolved by President Bashir. The freedom of South Sudan is not complete if there are South Sudanese who are still languishing in slavery in Sudan. GoS does not want to subscribe to the principle of avoiding statelessness - which is enshrined in multiple international treaties.

Borders                                                                                                                                                                                  A well defined, demarcated and agreed upon border is important for peace and stability between the two countries and ensures the territorial integrity of South Sudan. However, the border between South Sudan and Sudan is contested in 6 areas and remains to be demarcated. The RSS/SPLM negotiation team has consistently argued for a time bound process (completed within 2012) to delineate and demarcate the agreed upon border areas and for the Government of Sudan to cease any claim on the six disputed South Sudanese territory in the border as part of the package whereby RSS avails economic assistance to GoS, with the latter respecting the territorial integrity of South Sudan. Or refer the six disputed areas to binding international arbitration in the absence of a package agreement. Both of these reasonable viewpoints have been rejected by Sudan, causing an impasse in the border negotiations.

The RSS negotiators for borders and citizenship are still in Addis Ababa continuing to negotiate with Sudan to ensure freedom and human dignity for South Sudanese and territorial integrity of our country.

Oil

The oil negotiations took place in light of the shutdown of the oil operations in South Sudan - which is now complete, as a result of Sudan Government stealing and imposing blockade on RSS oil export. The negotiations started with the Government of Sudan presenting again a proposal attempting to charge $36 per barrel in transportation fees. The delegation of South Sudan carefully analyzed the GoS proposal and provided a well-argued critique. The RSS presentation concluded that

(i)                   the GoS presentation was littered with false statements and incorrect figures,

(ii)                 (ii) that these charges are discriminatory, a violation of international law and existing contracts and

(iii)                (iii) the $36/barrel reflects what they want not what they are entitled to - in fact it is 10 times what will be passed on to the operators to cover the cost.

1. RSS has been paying in full for the use of infrastructure located in Sudan. The Government of Sudan has consistently made false claims that the Government of South Sudan is not paying for the use of infrastructure located in Sudan. However, the oil companies have affirmed orally and in writing to Sudan and to AUHIP that the RSS has in fact been paying all of its processing and transportation fees since July 9, 2011. In fact GoS has written to the oil companies in August 2011 to instruct them to charge the rates that RSS has subsequently been paying.

2. The Government of Sudan does not own all the infrastructure. The Government of Sudan claims it has ownership of all the oil infrastructure located in the territory of Sudan. The pipeline that transports 80% of South Sudan's crude is the Petrodar pipeline, and the oil companies have confirmed in writing that this pipeline and the companying Jabalyn CPF are not owned by the Sudan but by the Consortium. Therefore, Sudan cannot charge for the use of these assets. In addition the Government of Sudan presentation contained a large number of factual inaccuracies, as a result of confusing Metric Tonne with barrel, mixing up transit fees with pipeline tariffs.

3. The value of the transit fees is the only outstanding issue. The Government of South Sudan has repeatedly committed itself to pay a transit fee to the GoS in accordance with state practice. According to international law and state practice transit fees should be cost based and non-discriminatory. Sudan itself is a signatory to treaties that embody the principle of free transit, like COMESA, and indeed it is the AU's aim to make Africa a free trade continent. Usually therefore transit fees are simply a small nominal fee. For example the Azerbaijan-Geogia transit fee is $0.18 per barrel and for the Azerbaijan-Georgia-Turkey route $0.25 per barrel is paid. Both parties have decided to use the Chad - Cameroon pipeline as a reference point: The transit fee for that pipeline is $0.41/barrel. If this is adjusted for the lengths of the GNPOC and Petrodar pipelines, this would be at $0.69 and $0.63 per barrel respectively, which the Government of South Sudan is willing to pay.

4. The $36 charge is undeniably discriminatory. Since these pipelines were built, and since the transportation agreements were concluded, RSS is not the only new shipper. PetroEnergy (operating in the North and WNPOC (operating in the South) subsequently secured the right to ship through the pipeline. Neither have been charged $36 barrel. Both are paying tariffs consistent with the transportation agreements. At the end of the presentation the GoS representative stated that the difference between the $32.2 GoS as invoiced RSS & the $36 in the GoS’ current proposal is $3.8; and that GoS plans to send that $3.8 to the shareholders for the cost and use of the infrastructure. Therefore GoS attempts to charge South Sudan 10x the actual cost.

5. GoS’ Proposal is a clear violation of international law. RSS proved and demonstrated that their claims have no basis in international law and state practice. The only defence that Sudan is offering is that GoS is a sovereign state - and that its sovereignty overrides everything- including international law. This defence does not cut mustard – the international community is consistently denouncing its behaviour, including its theft and bombings (this was seen recently at the AU Peace and Security Council meeting this week). Sudan’s purchasers are questioning them about whether the oil they bought from GoS was stolen; and the foreign oil companies themselves are observing Sudan undermine the very rights they contracted for and calling Sudan’s acts unilateral and conducted by force. Sovereign power comes with a solemn responsibility to uphold international law and norms –Sudan has gone far astray and the South hopes its leaders will see this before it’s too late.

A negotiated solution is still possible, but this depends exclusively on Sudan: The shutdown is complete, but the RSS will still negotiate in god faith and consider a resumption of the operations, if the GoS first agrees to:

A.      Full and immediate payment for the stolen oil

For negotiations to commence regarding a resumption of the flow of oil through existing pipelines and commercial oil deal, the Government of Sudan (GoS) must first commit and immediately implement the following three steps related to the repayment of stolen and diverted crude and any resulting damages:

1.       Immediately release all the detained vessels that are loaded in Port Sudan with RSS crude oil entitlements and not to hinder any vessel from berthing in Port Sudan with the intention of taking possession of RSS sold crude entitlements;

2.       Immediately pay to RSS the value of all confiscated and diverted crude oil at the sales price contracted for by the RSS and its purchasers and the market value for any RSS oil diverted by GoS for inland lifting at domestic refineries;

3.       GoS to indemnify all direct, indirect and consequential damages resulting from its unilateral actions, including demurrage claims from buyers whose ships have been detained at Port Sudan;

For the avoidance of doubt, the payments by GoS to RSS for the stolen and diverted crude and any resulting damages shall be immediate and not part of the arrears reconciliation process.

But the theft of RSS oil has been continued: It is worth noting that whilst GoS has ordered the release of the detained vessels, at the same time GoS ordered the theft of yet another 600,000 barrels of RSS Dar Blend entitlement of 28 January 2012 – this was loaded on board of MT ETC ISIS on 31 January 2012. And the theft even continued during this round of negotiations: Government of Sudan ordered PDOC by force to redirect 120,000 barrels from the Petrodar pipeline to the Khartoum refinery. What is more it has also come to light that the valuable RSS entitlement of Nile Blend was delivered – contrary to the instructions of RSS – at the Khartoum Refinery, and thus also stolen.

The Ministry of Justice, the Ministry of Petroleum and Mining and our international legal advisors are pursuing all the stolen oil and will leave no stone unturned to recover the proceeds and bring those complicit in the theft of RSS property to justice.

B.       Guarantee of non-interference with oil transport and export

The Government of Sudan must commit that it will never again take, divert or block the export of oil from South Sudan. This commitment must be accompanied by firm guarantees, such that South Sudan has complete confidence that its goods in transit through Sudan would be safe and secure.

C.       Fair commercial terms

For a resumption of the export of South Sudan crude to be contemplated by the Government of South Sudan, the Government of Sudan will need to agree to a fair commercial oil deal, the cornerstones of which are the following:

4. Ensure access for crude oil originating from RSS to the transportation system based on the processing fees and tariffs stipulated in the terms of the EPSAs and transportation agreements respectively, for blocks 1,2,4 (as an “excess capacity user”) and for blocks 3 and 7 (which RSS has been paying since 9 July 2011); and

5. Impose no other fees, surcharges, custom duties, imposts or taxes other than a transit fee, which shall be $0.69 and $0.63 respectively in accordance with international law and state practice.

If all these 5 conditions are met, RSS tables the following proposal as a basis for a final comprehensive agreement:

1.       RSS will give considerable financial assistance to the GoS

2.       As it has been doing, the RSS will continue to pay the tarrifs and processing fees stipulated in the existing exploration, production and transportation agreements.

3.       The RSS will be ready to pay a transit fee based on the adjusted Cha-Cameroon model ($0.69 and $0.63 per barrel respectively).

4.       In return the Gos will recognize the PCA defined – Abyei Area as belonging to RSS.

5.       GoS will withdraw all claims on RSS territory in the disputed border areas.

6.       GoS will cooperate with RSS to complete all border demarcations this year.

7.       All outstanding arreas and claims between the parties to be settled through a transparent, time-bound process that includes modalities to guarantee payment.

8.       The final agreement to be monitored by an independent third party who shall provide regular reports and recommendations to this AU Peace and Security Council and UN.

This comprehensive agreement requires an intensification and prioritization of negotiations on matters of territorial integrity – specifically Abyei, border demarcation and disputed areas.

The Parties agreed to reconvene in Addis to continue negotiations on oil on 23 February 2012 – it will be the responsibility of the AUHIP to verify the international practice and facts on issues of oil transit fees, payment for the processing and transportation tariffs. At this round the RSS delegation shall priritise to make the Government of Sudan pay in full the cost of stolen and diverted oil, the cost of which is increasing due to the taking of additional oil that has come to light recently (more than $550million).

In conclusion, the Government of South Sudan is committed to apeaceful, negotiated solution to all outstanding issues. RSS has been constructive and generous in all negotiations in pursuit of a new chapter in its history with Sudan, not based on exploitation and threats but on mutual viability and enduring peace.

Pagan Amum

Secretary General SPLM

RSS/SPLM Chief Negotiator

President Kiir's speech at the closing of IEC in Washington D.C.

Friday, 16 December 2011
Written by -
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Washington, DC

Speech by the President of Republic of South Sudan, Salva Kiir Mayardit, at the closing ceremony of the International Engagement Conference (IEC) held at the Marriot Wardman Hotel, Washington D.C.

Your Excellencies

Distinguished members of the Diplomatic community and invited guests

Ladies and Gentlemen, good afternoon!!!

It is a great pleasure to have the opportunity to address you once again.  These past two days have provided an excellent opportunity for us to discuss and review the issues and challenges facing South Sudan.  There has been a good, lively, and active discussion covering a wide range of topics.  I could not have hoped for anything else as this event has far exceeded my expectations.  Each of the topics covered addressed the issues necessary in moving South Sudan along the long road towards development. 

As part of this discussion it was my great pleasure and honour to have the opportunity to set out our vision for South Sudan.  This vision has been built on our common understanding of South Sudan’s challenges, and the lessons from our recent past, in order to set out a clear and achievable way forward.  I am confident that my Government and the people of South Sudan have the capacity, the desire, and the determination to implement our plans and achieve our vision.  Let me restate our inclusive vision; by 2040, South Sudan will build a united nation:

A nation that is educated and informed; prosperous, productive and innovative; compassionate and tolerant; free, just and peaceful; democratic and accountable; safe, secure and healthy; united and proud.   I am confident that this can and will become a reality with your support.

Your Execellencies, ladies and gentlemen,

Yesterday, when I spoke during the opening of this conference, I concluded by noting that, The government of the Republic of South Sudan have priorities embedded in the National Development Plan clearly spelling out the roadmap which will make this vision a reality to achieve.

We have grounded our plan in the reality of where we have come from, recognising that sixty years of conflict, marginalisation and war has created innumerable barriers and challenges that must be overcome. 

Our vision, and our plan, will be implemented by building on four extremely important pillars:  Good Governance, Increased Prosperity and Economic Growth, Enhanced Quality of Life, Safety and Security.  If you will indulge me, I would like to take this opportunity to review some of the key discussions from the past two days, to highlight the areas that have seized my mind, and those of my ministers, and to discuss how our discussions were based on these four key pillars. 

In South Sudan we are starting from zero and we are starting with very little.  We are building the institutions of governance from scratch.  It is our objective to build a democratic, transparent, and accountable government, managed by a professional and committed public service, with an effective balance of power between the executive, legislative and judicial branches of government.  This good governance lies at the heart of both nation-building and the implementation of sound policies and programmes. 

In line with this objective, the panel discussion on Accountability, Transparency and Good Governance focused on ensuring that Government is transparent, that information is available to the population, and that we deal effectively and judiciously with corruption.

Just as important as these financial reforms is, the development of our human capital, in the panel discussing on Capacity Development, we discussed how to become a more efficient and effective Government.  To do this we need to build our capacity, ensuring that our public service is professional and is staffed correctly and appropriately.  This requires that we look to our partners to support the training of our civil servants, both at the State and the National Government level.  It requires that we staff the Government institution with qualified people and that we encourage our diaspora to return home to work in Government.  We intend to focus increasingly on improving the management of our Government institutions and encouraging our youth to move into management positions more rapidly. We recognise that needs are great in this area and we expect you to work with us in developing innovative and dynamic ideas and programmes.

Your Excellencies, ladies and gentlemen,

Over the past two days, and specifically this afternoon, we have discussed many different ways to increase the prosperity of the people of South Sudan.  My Government is committed to creating diversified, private sector-led, economic growth and sustainable development which improves livelihoods and reduces poverty for all our people.  Our National Development Plan builds on the vision of the late Dr. John Garang of “Taking towns to the people”. It emphasises the importance of using South Sudan’s rich resources to develop infrastructure, basic education and primary health services; to develop the economy with a vibrant agricultural sector, and to encourage private sector investment.

In the panel discussion on Oil and Renewable Resources you discussed how South Sudan could better harness it existing resources, and make sure that the oil wealth does not become a curse.  There was detailed discussion on the importance of improving investment in the oil industry, and I want to restate that South Sudan is not under American sanctions, and investment in the oil industry is welcome, encouraged, and will yield returns.  In line with this, we are currently in the process of passing two key pieces of legislation; the Petroleum Bill and the Petroleum Revenue Management Bill.  The Petroleum Bill will provide the regulatory framework for the development and management of petroleum resources and their extraction.  It is based on international best practice and will ensure the transparent management of our extractive industries sector.

The Petroleum Revenue Management Bill will help my Government better focus our resources both for the present as well as the future.  Provisions in this Bill will demand saving significant shares of future oil revenue to provide a buffer against future volatility in oil production and prices.   Recognising that oil reserves will eventually be depleted, my Government is endeavouring to create lasting benefits for our society by providing guidelines to have efficient and effective capital investment aimed at boosting our economic growth potential both now and in the future.. More importantly, the Bill will ensure the transparency and accountability in the management of our resources, ensuring that there is a conducive, positive environment for investors.

Clearly the use of our wealth dictates how we in South Sudan think about the growth of the private sector, and our economy.  As the discussions on the private sector have demonstrated, there are many needs as well as many opportunities for investment.  While focusing on ensuring the public goods are provided – that roads are built, that electricity is present that the rule of law and due process are followed – our government is keenly aware of the need to diversify economic activities to provide sustainable development and contribute to the quality of life of our citizens. The Government cannot do this alone and our potential must be unlocked in cooperation with the private sector. As you have discussed there are very exciting investment opportunities in South Sudan and we are specifically looking for investment in the following areas: agriculture and agri-business, physical infrastructure, social infrastructure, mining and extractive industries, petroleum and gas, forestry, heavy manufacturing, telecommunications and electronic media, commercial banking, electricity, cement,  insurance, property management, and tourism and service industry development.

Your Excellencies, ladies and gentlemen,

I wish to address the final two pillars of the National Development Plan together.  In all our discussions, we have constantly returned to these two issues.  We have focused on the provision of services for the people of South Sudan in the session on Integrated Service Delivery, and a constant underlying theme has been safety and security. My Government is committed to promoting the well-being and dignity of every person in South Sudan by progressively accelerating universal access to basic social services.  This is not an easy task and it is one that will take time and involve improved accountability. .  At the same time, my Government, the SPLM, and the people of South Sudan are committed to preventing the return to conflict. We are committed to upholding the Constitution and maintenance of law and order, and through institutions which are transparent, accountable and respect of human rights and fundamental freedoms.

Your Excellencies, ladies and gentlemen,

Achieving all of the goals and objectives we have discussed and I have just recapped that a legal framework is created where the rule of law is enforceable and enforced. The Government of South Sudan has prioritised the passing of necessary legislation to allow government to function effectively. These include the Public Financial Management and Audit Bills which were recently passed, and the internal audit and procurement bills will soon be considered by the National Legislative Assembly. We shall endeavour continuing training our judges, lawyers, police, and others who will judiciously and professionally apply the rule of law in a skilled and transparent manner.

Before I concluding, I wish to focus on one last key area that my Government is paying particular attention to its resource allocation.  The allocation of South Sudan’s resources, its oil wealth, and the external support we receive from the international community is a theme underlying in areas of discussion during the past two days.  How we decide to spend these resources will determine how quickly and how effectively we achieve the goals that we have set out in our plan.  We must also be honest and realistic in the allocation of resources.  Money will have to be spent on security for the foreseeable future, and will mean expenditure on the armed forces.  As I previously mentioned, we have already begun work on a clear programme of demobilisation and we must create opportunities in the wider economy for those leaving the armed forces. However, this will take time. Drastic and unconsidered cuts, which might appeal to some and appear good on paper, will undermine our fledgling country at the time when it most needs stability. As we develop we will reallocate appropriately from defense spending toward health, education and infrastructure but these will be measured and appropriate. We ask for your patience and understanding.  

 

Your Excellencies, ladies and gentlemen,

We have been sitting, and discussing all of these issues for the past two days.  I do not wish to keep you in your seats for much longer.  As I noted at the beginning of my speech, South Sudan has a National Development Plan.  This Plan is our road map for developing our country and I hope that this vision has not been lost in all our discussions. This Plan recognises the importance of providing security to the entire population of South Sudan and, it outlines how we we’ll achieve economic growth and provide services to the people of South Sudan. We intend to see this Plan through and we ask for your support, for your support, but most importantly for your partnership. We have a very long road ahead of us in creating development, reducing poverty and increasing the prosperity of the people of South Sudan.  But not a single challenge along this road is intractable. Together, we can find solutions that will ensure that South Sudan’s long history of conflict is indeed over and put our country among the just, peaceful, and prosperous nations of the world. 

Your Execellencies, ladies and gentlemen,

I want to take this opportunity to acknowledge the presence of the many heads of key international companies.  I sincerely hope that over the past two days you have seen South Sudan as I see my country, as a land of promise - not a land of conflict, fragility and disaster.  I hope that when you visit you will continue to see the many opportunities for investment that South Sudan possesses.

I also want to take this opportunity to thank our partners who have graciously organised, and supported the Republic of South Sudan in hosting this conference.  It would not have happened without the support of the Troika and specifically the United States Government.  To all of the conference organisers, both in South Sudan and in the United States, my sincere thanks on behalf of the people of South Sudan.   I also wish to once again emphasise my Government’s appreciation to all of you who have attended for the past two days, the Ministers, Ambassadors and Heads of Delegations. Thank you for taking the time.  To the American People and to the Congress of the Unites States of America, thank you once again for your generous support over the many years of conflict and we look forward to it in the many years of peace ahead.

In conclusion,

Let me emphasise what I hope is now clear.  South Sudan is a country with amazing potential. It is a country with resources and a plan.  South Sudan has a huge potential to take leap forward through significant investments in new technologies, in telecommunications and alternative sources of energy.  If you are willing to think creatively and innovatively you will see the investment opportunities that South Sudan possesses and I know that you will be as excited as I am.

South Sudan is open for business for those who would venture and explore new horizons

God Bless You All

President Kiir's speech at the International Engagement Conference in Washington D.C.

Wednesday, 14 December 2011
Written by -
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Washington, DC

Speech by the President of Republic of South Sudan, Salva Kiir Mayardit, at the closing ceremony of the International Engagement Conference (IEC) held at the Marriot Wardman Hotel, Washington D.C.

Your Excellencies

Distinguished members of the Diplomatic community and invited guests

Ladies and Gentlemen, good afternoon!!!

It is a great pleasure to have the opportunity to address you once again.  These past two days have provided an excellent opportunity for us to discuss and review the issues and challenges facing South Sudan.  There has been a good, lively, and active discussion covering a wide range of topics.  I could not have hoped for anything else as this event has far exceeded my expectations.  Each of the topics covered addressed the issues necessary in moving South Sudan along the long road towards development. 

As part of this discussion it was my great pleasure and honour to have the opportunity to set out our vision for South Sudan.  This vision has been built on our common understanding of South Sudan’s challenges, and the lessons from our recent past, in order to set out a clear and achievable way forward.  I am confident that my Government and the people of South Sudan have the capacity, the desire, and the determination to implement our plans and achieve our vision.  Let me restate our inclusive vision; by 2040, South Sudan will build a united nation:

A nation that is educated and informed; prosperous, productive and innovative; compassionate and tolerant; free, just and peaceful; democratic and accountable; safe, secure and healthy; united and proud.   I am confident that this can and will become a reality with your support.

Your Execellencies, ladies and gentlemen,

Yesterday, when I spoke during the opening of this conference, I concluded by noting that, The government of the Republic of South Sudan have priorities embedded in the National Development Plan clearly spelling out the roadmap which will make this vision a reality to achieve.

We have grounded our plan in the reality of where we have come from, recognising that sixty years of conflict, marginalisation and war has created innumerable barriers and challenges that must be overcome. 

Our vision, and our plan, will be implemented by building on four extremely important pillars:  Good Governance, Increased Prosperity and Economic Growth, Enhanced Quality of Life, Safety and Security.  If you will indulge me, I would like to take this opportunity to review some of the key discussions from the past two days, to highlight the areas that have seized my mind, and those of my ministers, and to discuss how our discussions were based on these four key pillars. 

In South Sudan we are starting from zero and we are starting with very little.  We are building the institutions of governance from scratch.  It is our objective to build a democratic, transparent, and accountable government, managed by a professional and committed public service, with an effective balance of power between the executive, legislative and judicial branches of government.  This good governance lies at the heart of both nation-building and the implementation of sound policies and programmes. 

In line with this objective, the panel discussion on Accountability, Transparency and Good Governance focused on ensuring that Government is transparent, that information is available to the population, and that we deal effectively and judiciously with corruption.

Just as important as these financial reforms is, the development of our human capital, in the panel discussing on Capacity Development, we discussed how to become a more efficient and effective Government.  To do this we need to build our capacity, ensuring that our public service is professional and is staffed correctly and appropriately.  This requires that we look to our partners to support the training of our civil servants, both at the State and the National Government level.  It requires that we staff the Government institution with qualified people and that we encourage our diaspora to return home to work in Government.  We intend to focus increasingly on improving the management of our Government institutions and encouraging our youth to move into management positions more rapidly. We recognise that needs are great in this area and we expect you to work with us in developing innovative and dynamic ideas and programmes.

Your Excellencies, ladies and gentlemen,

Over the past two days, and specifically this afternoon, we have discussed many different ways to increase the prosperity of the people of South Sudan.  My Government is committed to creating diversified, private sector-led, economic growth and sustainable development which improves livelihoods and reduces poverty for all our people.  Our National Development Plan builds on the vision of the late Dr. John Garang of “Taking towns to the people”. It emphasises the importance of using South Sudan’s rich resources to develop infrastructure, basic education and primary health services; to develop the economy with a vibrant agricultural sector, and to encourage private sector investment.

In the panel discussion on Oil and Renewable Resources you discussed how South Sudan could better harness it existing resources, and make sure that the oil wealth does not become a curse.  There was detailed discussion on the importance of improving investment in the oil industry, and I want to restate that South Sudan is not under American sanctions, and investment in the oil industry is welcome, encouraged, and will yield returns.  In line with this, we are currently in the process of passing two key pieces of legislation; the Petroleum Bill and the Petroleum Revenue Management Bill.  The Petroleum Bill will provide the regulatory framework for the development and management of petroleum resources and their extraction.  It is based on international best practice and will ensure the transparent management of our extractive industries sector.

The Petroleum Revenue Management Bill will help my Government better focus our resources both for the present as well as the future.  Provisions in this Bill will demand saving significant shares of future oil revenue to provide a buffer against future volatility in oil production and prices.   Recognising that oil reserves will eventually be depleted, my Government is endeavouring to create lasting benefits for our society by providing guidelines to have efficient and effective capital investment aimed at boosting our economic growth potential both now and in the future.. More importantly, the Bill will ensure the transparency and accountability in the management of our resources, ensuring that there is a conducive, positive environment for investors.

Clearly the use of our wealth dictates how we in South Sudan think about the growth of the private sector, and our economy.  As the discussions on the private sector have demonstrated, there are many needs as well as many opportunities for investment.  While focusing on ensuring the public goods are provided – that roads are built, that electricity is present that the rule of law and due process are followed – our government is keenly aware of the need to diversify economic activities to provide sustainable development and contribute to the quality of life of our citizens. The Government cannot do this alone and our potential must be unlocked in cooperation with the private sector. As you have discussed there are very exciting investment opportunities in South Sudan and we are specifically looking for investment in the following areas: agriculture and agri-business, physical infrastructure, social infrastructure, mining and extractive industries, petroleum and gas, forestry, heavy manufacturing, telecommunications and electronic media, commercial banking, electricity, cement,  insurance, property management, and tourism and service industry development.

Your Excellencies, ladies and gentlemen,

I wish to address the final two pillars of the National Development Plan together.  In all our discussions, we have constantly returned to these two issues.  We have focused on the provision of services for the people of South Sudan in the session on Integrated Service Delivery, and a constant underlying theme has been safety and security. My Government is committed to promoting the well-being and dignity of every person in South Sudan by progressively accelerating universal access to basic social services.  This is not an easy task and it is one that will take time and involve improved accountability. .  At the same time, my Government, the SPLM, and the people of South Sudan are committed to preventing the return to conflict. We are committed to upholding the Constitution and maintenance of law and order, and through institutions which are transparent, accountable and respect of human rights and fundamental freedoms.

Your Excellencies, ladies and gentlemen,

Achieving all of the goals and objectives we have discussed and I have just recapped that a legal framework is created where the rule of law is enforceable and enforced. The Government of South Sudan has prioritised the passing of necessary legislation to allow government to function effectively. These include the Public Financial Management and Audit Bills which were recently passed, and the internal audit and procurement bills will soon be considered by the National Legislative Assembly. We shall endeavour continuing training our judges, lawyers, police, and others who will judiciously and professionally apply the rule of law in a skilled and transparent manner.

Before I concluding, I wish to focus on one last key area that my Government is paying particular attention to its resource allocation.  The allocation of South Sudan’s resources, its oil wealth, and the external support we receive from the international community is a theme underlying in areas of discussion during the past two days.  How we decide to spend these resources will determine how quickly and how effectively we achieve the goals that we have set out in our plan.  We must also be honest and realistic in the allocation of resources.  Money will have to be spent on security for the foreseeable future, and will mean expenditure on the armed forces.  As I previously mentioned, we have already begun work on a clear programme of demobilisation and we must create opportunities in the wider economy for those leaving the armed forces. However, this will take time. Drastic and unconsidered cuts, which might appeal to some and appear good on paper, will undermine our fledgling country at the time when it most needs stability. As we develop we will reallocate appropriately from defense spending toward health, education and infrastructure but these will be measured and appropriate. We ask for your patience and understanding.  

 

Your Excellencies, ladies and gentlemen,

We have been sitting, and discussing all of these issues for the past two days.  I do not wish to keep you in your seats for much longer.  As I noted at the beginning of my speech, South Sudan has a National Development Plan.  This Plan is our road map for developing our country and I hope that this vision has not been lost in all our discussions. This Plan recognises the importance of providing security to the entire population of South Sudan and, it outlines how we we’ll achieve economic growth and provide services to the people of South Sudan. We intend to see this Plan through and we ask for your support, for your support, but most importantly for your partnership. We have a very long road ahead of us in creating development, reducing poverty and increasing the prosperity of the people of South Sudan.  But not a single challenge along this road is intractable. Together, we can find solutions that will ensure that South Sudan’s long history of conflict is indeed over and put our country among the just, peaceful, and prosperous nations of the world. 

Your Execellencies, ladies and gentlemen,

I want to take this opportunity to acknowledge the presence of the many heads of key international companies.  I sincerely hope that over the past two days you have seen South Sudan as I see my country, as a land of promise - not a land of conflict, fragility and disaster.  I hope that when you visit you will continue to see the many opportunities for investment that South Sudan possesses.

I also want to take this opportunity to thank our partners who have graciously organised, and supported the Republic of South Sudan in hosting this conference.  It would not have happened without the support of the Troika and specifically the United States Government.  To all of the conference organisers, both in South Sudan and in the United States, my sincere thanks on behalf of the people of South Sudan.   I also wish to once again emphasise my Government’s appreciation to all of you who have attended for the past two days, the Ministers, Ambassadors and Heads of Delegations. Thank you for taking the time.  To the American People and to the Congress of the Unites States of America, thank you once again for your generous support over the many years of conflict and we look forward to it in the many years of peace ahead.

In conclusion,

Let me emphasise what I hope is now clear.  South Sudan is a country with amazing potential. It is a country with resources and a plan.  South Sudan has a huge potential to take leap forward through significant investments in new technologies, in telecommunications and alternative sources of energy.  If you are willing to think creatively and innovatively you will see the investment opportunities that South Sudan possesses and I know that you will be as excited as I am.

South Sudan is open for business for those who would venture and explore new horizons

God Bless You All

dhalco