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Home Extractive industry Cost certification: Government risks losing revenue by failing to oversee US$7.2 billion in costs related to Rovuma Basin projects

Cost certification: Government risks losing revenue by failing to oversee US$7.2 billion in costs related to Rovuma Basin projects

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Certificação de custos:   Governo corre o risco de perder receitas por não fiscalizar 7,2 mil milhões de dólares em custos referentes aos projectos da Bacia do Rovuma

Two years after the start of production of the first project to come into operation in the Rovuma basin, there is not even a report on cost certification.

Due to the delay in the cost compliance certification process, the Government (National Petroleum Institute, INP) will only be able to certify costs for 2016 onwards and compromise the certification of 7.2 billion dollars since the deadline for certification of the previous years (3 years) has expired, as provided for in the contract.

In general, the negligence of the INP to seriously and professionally control the cost certification process jeopardizes the capture of tax benefits from the exploitation of natural resources in the country.

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Summary of the INP report

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