16.5 Of the revenue derived from contracts referred to in the preceding
paragraph and produced in Southern Sudan, after the transfer referred
to
in sub paragraph 16.4.2 has been paid, forty eight (48%) percent of the
new balance shall be paid to the Government of Southern Sudan. The
remaining balance shall be paid to the Government of the Sudan.
16.6 A Future Generation Fund will be established once national oil
production reaches two (2) million barrels per day. This production
criterion may, as part of the National Government's normal budget
process, be reduced down to one (1) million barrels per day.
16.7 The Parties agree that all funds/special accounts r46rrecl to in
this Chapter/Agreement and future accounts will be on budget
operations.

17 OTHER REVENUE
17.1 The National Government of Sudan shall be entitled to legislate,
raise and collect the below listed taxes and to collect revenue from
these sources:
17.1.1 National Personal Income Tax;
17.1.2 Corporate or Business Profit Tax;
17.1.3 Custom Duties and import taxes;
17.1.4 International and National Seaports and Airports Revenue
17.1.5 Service charges;
17.1.6 Natural Resources revenues as set out herein;
17.1.7 National Government Enterprises and projects;
17.1.8 VAT or GST or other retail taxes on goods and services;
17.1.9 Excise Tax;
17.1.10 Any other tax as agreed upon in these negotiations;
17.1.11 Loans, including borrowing from the Central Bank and the
public.

17.2 The Government of Southern Sudan shall be entitled to revenue from
the following sources and to raise and collect the below listed taxes:
17.2.1 The National revenue allocation to the Southern States from the
National Revenue Fund as set forth in paragraph 18.1 of this Agreement;
17.2.2 Revenue from any of the sources listed as state revenue sources
referred to in paragraph 17.3 herein;
17.2.3 The Southern Sudan Reconstruction and Development Fund (SSRDF);
17.2.4 Subterranean Natural Resources revenues as is set out ain this
Agreement;
17.2.5 Southern Sudan Government Taxes which do not encroach on the
exclusive National Government taxing powers or which are contemplated
in
the power Sharing Protocol;
17.2.6 Service charges of the Government of Southern Sudan;
17.2.7 Government of the Southern Sudan enterprises and projects;
17.2.8 Grants in Aid and Foreign Aid;
17.2.9 Taxes and levies on small and medium business;
17.2.10 Excise taxes on goods within the region deemed to be luxury
consumables;
17.2.11 Any other taxes as may be agreed to from time to time;
17.2.12 Loans and Borrowing in Accordance with the Banking and Foreign
Funding sections of this agreement.
17.3 The States shall be entitled to raise and collect the below-listed
taxes and revenue from the below listed sources
17.3.1 State land and property tax;
17.3.2 Service charges for state services;
17.3.3 Licenses;
17.3.4 State Personal Income Tax;
17.3.5 Levies on Tourism;
17.3.6 Share of Natural Resource Revenues as is set out in this
Agreement;
17.3.7 State Government projects and state nature parks;
17.3.8 Stamp duties; Agricultural Taxes;
17.3.9 Grants in Aid and Foreign Aid;
17.3.10 Excise taxes;
17.3.11 Border Trade charges or levies in accordance with National
Legislation;
17.3.12 0ther state taxes which do not encroach on national or Southern
Sudan government taxes;
17.3.13 Any other tax as may be agreed to from time to time; and
17.3.14 Loans and borrowing in accordance with the Banking and Foreign
Funding sections of this Agreement.

18 EQUALIZATION AND ALLOCATION TO THE NATIONAL, SOUTHERN SUDAN AND
STATE
LEVELS OF GOVERNMENT IN RESPECT OF REVENUE COLLECTED NATIONALLY
18.1 All revenues collected nationally for or by the National
Government
shall be pooled in a National Revenue Fund administered by the National
Treasury. Such Fund shall embrace all accounts and sub-funds into which
monies due to the Government are collected or deposited.
18.2 All the revenues and expenditures of the Government will be
on-budget operations and made public.
18.3 The Government in its budget shall allocate an equitable amount of
nationally raised revenue to the state level and the Southern Sudan
level of government in accordance with formulae and criteria agreed
upon
between the Parties.
18.4 The National Government will guarantee an annual transfer of
billion 35 Sudanese Dinar (SDD) [or the equivalent of the new currency
if/when issued] per year as a minimum to the Government of Southern
Sudan and the southern states to cover general budgetary expenditures.
Starting from the fourth (4th) year of the Interim Period, the minimum
annual transfers shall be raised at the inflation rate that is targeted
by the annual national budget. This arrangement will be reviewed at the
end of the Interim Period;
18.5 The National Government will transfer an amount for the costs of
reconstruction, development, and re-integration equal to approximately
12.5 billion SDD (0.3 percent of GDP) in the first year, approximately
32.9 billion SDD (0.7 percent of GDP) in the second year, and
approximately 58.3 billion, 71.3 billion, 80.2 billion and 90.3 billion
SDD (1.2 percent of the GDP) in the third through sixth years. For the
purpose of this agreement the GDP used for the calculations of these
transfers will be the one used for the formulation of the annual
national budget. This arrangement will be reviewed at the end of the
interim period,
18.6 The states and the Government of Southern Sudan Government shall
retain and dispose of such other income raised and collected under
their
own taxing powers.
18.7 The allocation in respect of states of the Southern Region shall
be
made through the Government of Southern Sudan, save for the revenues
referred to in paragraph 16.4.1 and 16.4.2, which shall in all cases be
made directly to the state concerned.
18.8 In its administration of revenues or in its powers of allocation,
the Government of the Southern Sudan shall not withhold or deny funds
due to a state in the South or discriminate in its allocation on
political ethnic, linguistic or religious grounds.

19 Fiscal and Financial Allocation and Monitoring Commission (FFAMC)
19.1 To ensure transparency and fairness both in regard to the
allocation of nationally colleted funds to the states/regions and the
Government of the Southern Sudan Region and in determining the amount
of
revenue collected from natural resources, a Fiscal and Financial
Allocation and Monitoring. Commission shall be established. This body
shall be' comprised of experts nominated by the various states/regions,
the Government of Southern Sudan and the National Government. Decision
making arrangements should be as agreed to by the Parties at these
negotiations.
19.2 The FFAMC shall monitor and ensure prompt transfer of equalization
payments; prompt payments to and from the National Revenue Fund and the
appropriate utilisation and sharing of resources.

20 INTERSTATE COMMERCE
20.1 There shall be no legal impediment to interstate commerce or the
flow of goods and services, capital, or labour between the states.

21 GOVERNMENT LIABILITIES
21.1 Any debts/liabilities incurred by any level of government shall be
the responsibility of that level of government.

22 DIVISION OF GOVERNMENT ASSETS
22.1 There shall be a fair and equitable division of government assets.
An asset shall in the first instance be allocated to the level of
government responsible for the function in respect of which the asset
is
related (e.g. school buildings to the level of government responsible
for education). In the event of a dispute, the Parties agree that such
dispute shall be referred to a committee comprising a representative of
each of the Parties involved in the dispute and a mutually agreed
expert.

23 ACCOUNTING STANDARDS AND PROCEDURES AND FISCAL ACCOUNTABILITY
23.1 All levels of government shall comply with generall accepted
accounting standards and procedures. There shall be institutions at the
state, Government of Southern Sudan and National levels institutions to
ensure that funds are distributed according to the agreed government
budget, and properly expended having regard to value for money.
23.2 To insure the effective operation of such institutions, there
shall
be an independent National Audit Commission which shall have
responsibility for the functions referred to above and for setting
auditing standards. Appointments to the Commission shall be made by the
Presidency.
23.3 All levels of government shall hold all income and revenue
received
by it in public accounts and subject to public scrutiny and
accountability.

24 FINANCING THE TRANSITION
24.1 The National Government shall at least in the Pre-Interim Period
be
responsible for meeting the costs of financing the direct costs of the
transition, to the extent that it is able to do so. The National
Government shall advance the funds necessary to establish the new
transitional governments at the state level and the Government of
Southern Sudan level as soon as it is possible to establish such
institutions. Officials from the National Government shall participate
in the donors' conference to be held after the Agreement is signed in
order to solicit international support.
24.2 Upon signature of a comprehensive Peace Agreement, the Parties
shall establish a joint national transition team to undertake the
following:
24.2.1 Prepare budget estimates for the establishment of Governments at
the National, Southern Sudan, and state levels as provided for by the
Peace Agreement;
24.2.2 Organize and prepare relevant documents for the donor
conference,
including the agenda of the conference letters of invitations and be a
secretariat to the donors' conference;
24.2.3 Develop fund raising strategies, and assist in the
identification
of potential sources of funds necessary for a smooth and timely
commencement of the Interim Period.

25 MONETARY POLICY, CURRENCY and BANKING
25.1 There shall be a single monetary authority, represented by the
Central Bank of Sudan, that shall formulate and carry out the country's
monetary policy. All financial institutions shall be subject to the
rules and regulations set by the Central Bank of Sudan with the
exceptions provided for herein, in accordance with the Machakos
Protocol
of 20 July 2002.
25.2 There shall be a single currency for the whole of the Sudan. The
Central Bank of Sudan shall adopt a program to issue a new currency.
25.3 The Parties agree that Southern Sudan has special financing and
banking needs.
25.4 The Central Bank of Sudan shall establish the Bank of Southern
Sudan as a branch of the Central Bank of Sudan to meet the financial
needs of the Southern Sudan region within the limits of the national
monetary policy.
25.5 The Central Bank of Sudan shall designate a Deputy Governor to
head
the Bank of Southern Sudan. The Deputy Governor shall be nominated by
the Government of Southern Sudan and appointed by the Governor of the
Central Bank of Sudan.
25.6 There shall be established a Southern Sudan Banking Commission.
The
Southern Sudan Banking Commission shall be an independent body with the
power to charter and supervise financial institutions operating in
Southern Sudan.
25.7 The head of the Bank of Southern Sudan shall appoint a
Commissioner
to head the Southern Sudan Banking Commission. The Commissioner shall
appoint qualified commission members.
25.8 The Central Bank of Sudan shall provide the necessary technical,
staffing, and secretariat assistance to enable the Southern Sudan
Banking Commission to carry out its responsibilities.
25.9 If the Southern Sudan Banking Commission fails to carry out its
responsibilities in accordance with established standards and laws, the
Bank of Southern Sudan shall assume those responsibilities until
remedial actions are implemented.
25.10 Financial institutions that are chartered by the Southern Sudan
Banking Commission shall be located in Southern Sudan and shall not
establish branches in other states in the Sudan. However, they shall be
allowed to establish correspondence and business relationships with
financial institutions in other states in the Sudan subject to the
prevailing rules in those states.
25.11 The Bank of Southern Sudan shall establish the central banking
facilities that are necessary for the working of conventional and
Islamic financial institutions located in Southern Sudan.
25.12 The Central Bank of Sudan shall be responsible for chartering and
supervising national financial institutions. Nationally chartered
financial institutions shall be allowed to operate and establish
branches in all states in the Sudan.
25.13 All financial institutions shall be subject to internationally
recognized regulatory and prudential standards for Islamic and
conventional finance, as set by the Central Bank of Sudan.
25.14 All financial institutions shall be obliged to implement monetary
policies set by the Central Bank of Sudan.
25.15 The Government of Southern Sudan and the states may borrow money
based on their respective credit worthiness. These governments, as well
as all other sub-national governments, shall not have the right to
borrow from the Central Bank of Sudan. Moreover, neither the Central
Government nor the Central Bank of Sudan shall be required or expected
to guarantee borrowing by sub-national governments.
25.16 All sub-national governments shall report financial and fiscal
data to the relevant Central Government bodies for statistical
purposes.

26 FOREIGN FUNDING
26.1 Borrowing
26.2 The Government of Southern Sudan and the states may borrow money
from abroad based on their respective credit worthiness.
26.3 Foreign borrowing by all sub-national governments shall be done in
a manner that does not undermine national macro-economic policies and
should be consistent with the objective of maintaining external
financial viability. All sub-national governments' foreign borrowing
transactions shall conform to Central Government specifications.

27 Trust Funds
27.1 The parties recognize the need to establish two multi-donor trust
funds (MDTFs), one for the National Government and one for the
Government of Southern Sudan.
27.2 The Southern Fund shall be called the ""Southern Sudan
Reconstruction and Development Fund" and the National Fund shall be
called the ""National Reconstruction and Development Fund"
27.3 The Government of the Southern Sudan shall be responsible for the
expenditure from the "Southern Sudan Reconstruction and Development
Fund". The Fund shall be administered transparently and managed
professionally subject to an oversight committee appointed by the
Government of the Southern Sudan but having on it a representative of
the National Ministry of Finance and of the Chamber of the Auditor
General.
27.4 The "National Reconstruction and Development Fund,"' shall be
established by the National Treasury and, in particular, its mission
will be the development of the war-affected areas and least developed
areas outside Southern Sudan. The fund will have a steering committee
with appropriate representation from such areas. A report on the
income,
expenditure and the projects supported by the fund shall be placed,
before the National Assembly and the Council of States, which shall
exercise oversight over the fund.
27.5 Both funds shall support urgent recurrent and investment budget
costs under clearly stated criteria of eligible financing components,
and both shall have the right to solicit, raise and collect funds from
foreign donors.
27.6 The parties agree to establish a robust and joint coordination and
monitoring body for the two funds, their successors and other trust
funds.
27.7 All trust funds will report the flow of funds to the Central Bank
of Sudan and the coordination and monitoring body.
27.8 To ensure proper accountability for funds disbursed through the
MDTFs the respective parties will cause audits to be performed on trust
fund use within six (6) months of the close of the recipient's
financial
year.

28 Flow of Foreign Funds.
28.1 During the Pre-Interim as well as the Interim Periods, funds may
be
channelled directly to finance activities jointly benefiting both
parties.
28.2 During the Pre-Interim Period, the flow of foreign funds shall be
through special accounts established in the Central Bank of Sudan. For
the Interim Period: (i) the flow of foreign funds for the National Fund
will go through the Central Bank of Sudan; and (ii) for the Southern
Fund, the foreign funds will be disbursed through either a special
count
at the Central Bank of Sudan designated for the Bank of Southern Sudan
(BoSS); or through arrangements as specified in the MDTF.
28.3 All reporting requirements to the Central Bank and the Trust Funds
Administrator will be followed.
28.4 The parties shall be committed to the implementation of financial
reporting and accountability mechanisms. All sub-national governments
in
Sudan shall report financial, fiscal and national account data to the
relevant National Government bodies for statistical and data
consolidation purposes according to the standards set by the national
government.
28.5 Further recognizing that foreign financing is critical to the
success of the National Government and the development process, the
parties agree that:
28.5.1 all such foreign financing be reported to the National and all
relevant sub-national authorities;
28.5.2 any part of foreign finance that is made in support of
governmental operations (at all levels) shall be on budget.

PART THREE: SECURITY ARRANGEMENTS*
29 PRINCIPLES REGARDING MANDATE AND MISSION OF THE MILITARY FORCES IN A
DEMOCRATIC SOCIETY
29.1 The Parties agree that the Principles governing. the role, mission
and mandate of any military force responsible for the defence of the
Republic of the Sudan should be the principles listed below,
notwithstanding the fact that both the Sudan People's Armed Forces
(SPAF) and the Sudan People's Liberation Army, hereinafter referred to
as the Sudan People's Liberation Armed Forces (SPLAF) shall retain
their
forces and internal command structure during the Interim Period until
the Parties agree otherwise.
29.2 In the context of a united Sudan following the referendum for the
people of Southern Sudan, the Parties agree to the establishment of a
single Defence Force/structure, even if organized territorially.
29.3 During the Interim Period, the primary mission of the two Defence
Forces, the SPAF and the SPLAF, is to defend and protect the Sudan, its
borders and its people from external aggression. No Military Force in
the Sudan should have an internal law and order mandate except in
unusual and constitutionally specified circumstances.
29.4 During the Interim Period, the two Military Forces shall comply
with international law, more particularly in regard to the conduct of
its members in any armed conflict.
29.5 During the Interim Period, the Constitutionally
permitted 'Military
Forces shall at all times be impartial, serve the nation as "a whole,
be
subordinate to civilian political authority and be subject to civilian
oversight. The shall be funded by the National Government and no other
military force shall be allowed other than the forces specified in the
Interim National Constitution.

30 CEASEFIRE
30.1 The Parties agree to a comprehensive ceasefire to come into
operation on a date to be agreed. The ceasefire shall be negotiated at
a
special session of these Talks and shall canvass, inter alia, possible
agreements on the following:
30.1.1 The details and timetable for the assembling, disengagement,
re-deployment/withdrawal, and confinement of relevant armed forces and
the specification of relevant locations and areas, including
demilitarized zones, if and as agreed; the treatment of paramilitary
forces, allied militias and other armed forces; exchange of relevant
information; demining activities; the establishment of a Joint Defence
Board; force strengths and any downsizing and the related timetable
thereof; permitted or restricted activities; the nature and extent of
ongoing recruitment, training exercises, and the provision of weapons;
the establishment role, recruitment/selection and training of state and
national police units; identification of monitoring/verification
agencies and measures, and 'conditions of operation for such bodies;
nature of and responsibility for disarmament, demobilization and
reintegration; and release of prisoners of war.

31 COMMAND AND CONTROL OF MILITARY FORCES IN THE SUDAN DURING THE
INTERIM PERIOD
31.1 Both the Sudan People's Liberation Army (SPLA) (which shall be
called the Sudan People's Liberation Armed Forces, SPLAF) and the Sudan
People's Armed Forces (SPAF) shall retain their forces and their
internal command structures within the mandate and mission set out in
this Agreement, unless and until the Parties agree otherwise.
31.2 The Parties agree that they shall assume responsibility for the
control of their allied paramilitary forces and militias. No force
shall
be allowed to operate outside the security arrangements framework
agreed
to by the Parties.
31.3 The Parties agree to assume responsibility for ensuring that such
paramilitary forces and militias are consulted on, and included in, any
process by which they are to be brought within the Security
Arrangements
framework contemplated by the Cease Fire Agreement.
31.4 Both the SPLAF and the SPAF shall be subject to the authority of
the Joint Defence Board (JDB) which shall be established to enforce the
provisions of the Peace Agreement and the Ceasefire and which Board
shall be structured so as to ensure that decisions are taken only with
the consent of both Parties.

32 Notwithstanding the Paragraph above:
32.1.1 The Parties may establish joint and integrated units for the
purpose of performing or undertaking specific, national or symbolic
functions;
32.1.2 Other security institutions of both Parties, including the
National Police Force, shall be subject to appropriate integration and
be subject to a review in respect of their number and nature;
32.1.3 A national VIP protection unit, comprised of members of both
armies and/or police services shall be established whose task shall be
to provide personal security services to national political leaders.

33 JOINT DEFENCE BOARD
33.1 There shall be established a Joint Defence Board comprised of the
chiefs of staff, the commanders (i.e., the Chiefs of General Staff) of
both forces, the National Minister of Defence, and the Minister of the
Government of Southern Sudan responsible for the SPLAF. It shall take
its decision by consensus and it shall be chaired alternatively by the
respective Ministers of Defence.
33.2 The functions of the Joint Defence Board shall be to:
33.2.1 Ensure that Sudan, its borders, its people, its airspace and its
territorial waters are defended and protected. It shall task the forces
in regard to this, and more specifically, in regard to the control of
the National borders;
33.2.2 Enforce the ceasefire and the provisions of this Agreement,
including ensuring that all allied forces or militias are brought under
the control and discipline of one or other of the two forces;
33.2.3 Ensure that the forces undertake only permitted activities,
which
activities may also include support for reconstruction and development;
33.2.4 Supervise the standardization of recruitment, training,
weaponry,
terms and conditions of service and salaries of the members of the two
forces;
33.2.5 Supervise and authorize the establishment of integrated units to
perform such specific functions as is agreed;
33.2.6 Implement confidence building measures and exchanges so as to
build trust between the members of the two forces;
33.2.7 Supervise the demobilization, disarmament, downsizing and
reintegration of the members;
33.2.8 Promulgate a military disciplinary code applicable to all
members
of the two forces.

DRAFT FRAMEWORK FOR RESOLUTION OF THE THREE CONFLICT AREAS

1.0 Abyei
1.1 The status of Abyei and whether it is to be administered as part of
Bahr-el-Ghazal state or remain in Western Kordofan state shall be the
subject of a referendum.
1.2 The referendum referred to in 1.1 above shall be conducted:
1.2.1 by an independent Abyei Referendum Commission comprised of three
(3) persons nominated by each of the Parties and two (2) members of the
international community as agreed by the two Parties;
1.2.2 before the elections to be held towards the end of the first half
of the Interim Period, as determined by the Commission;
1.2.3 so as to allow only those who were resident in Abyei on or before
the signing of the 1972 Addis Ababa Agreement or their adult
descendants, including all persons displaced there from wherever they
may be located.
1.3 For the purposes of this Agreement, the term "Abyei" refers to the
area that was referred to by the same name in the 1972 Addis Ababa
Agreement, and which was administered from the President's office
during
the duration of the said agreement.
1.4 Pending the Abyei referendum, the said area shall be administered
by
an administrator nominated by the Presidency and not by or under the
Administration of the state of Western Kordofan or by Bahr-El-Ghazal;
1.5 The rights of pastoralists and members of tribes which
traditionally
traverse the area annually for the purposes of gaining access to
pastures for grazing and water shall be guaranteed irrespective of the
outcome of the referendum referred to above or the referendum
stipulated
in the Machakos, Protocol.
1.6 In the event of any conflict or dispute between pastorlists and the
Ngok Dinka arising? out of the traversing of Abyei by such pastoralists
(i.e., the Messiriya and others) the traditional dispute resolution
mechanism shall be formally charged with the task of resolving such
disputes.
1.7 For the purposes of the referendum, the Abyei Referendum Commission
referred to herein shall be empowered to make regulations providing for
votes to be cast outside the area of Abyei by former residents or their
descendants.
1.8 For the purposes of the apportionment of revenue due to oil
producing states under the Wealth Sharing Agreement, Abyei shall be
treated as an oil producing state until its status is determined in
accordance with the outcome of the Abyei referendum referred to herein.
1.9 A fair and equitable apportionment of National resources and
revenue
shall be allocated for the provision of services and infrastructures.
1.9.1 The National Government will guarantee an annual transfer to
Abyei
of 1.2 billion Sudanese Dinar (SDD) [or in all cases, the equivalent of
the new currency if/when issued] per year in the first four year of the
Interim Period, and 1.4 billion SDD in the fifth and 1.5 billion SDD in
the sixth year, as a minimum to the cover general budgetary
expenditures. Beginning from the fourth year of the Interim Period, the
minimum annual transfers shall be raised at the inflation rate that is
targeted by the annual national budget.
1.9.2 The National Government will transfer an amount for the costs of
reconstruction, development, and re-integration of approximately 0.6
billion SDD (0.01 percent of GDP) in the first year, 0.9 billion SDD
(0.02 percent of GDP) in the second year, .1.1 billion SDD (0.02
percent
of GDP) in the third year, 1.4 S6D, (0.02 percent of GDP) in the fourth
year, 1.6 SDD (0.02 percent of GDP) in the fifth year, and 1.8 SDD
(0.02
percent of GDP) in the sixth year. For the purpose of this Agreement,
the GDP used for the calculations of these transfers will be the one
used for the formulation of the annual national budget. This Agreement
will be reviewed in light of the outcome of the local referendum.
1.9.3 The transfers shall be deposited in special accounts in the
Central Bank of Sudan from which the Administrator, or other
'appropriate authority, can make withdrawals.
1.10 The National Government will transfer an amount for the costs of
reconstruction, development, and re-integration equal to 0.01 in the
first year, 0.02 in the second year through sixth years. For the
purpose
of this Agreement, the GDP used for the calculations of these transfers
will be the one used for the formulation of the annual national budget.
This arrangement will be reviewed in light of the outcome of the local
referendum.
1.11 Abyei's share of national resources and 'revenue, as well as the
mechanisms for transfers, shall be reviewed in light of the final
determination of its status.
2.0 Nuba Mountains (Southern Kordofan)
2.1 The Nuba Mountains shall be subject to the following arrangements:
2.1.1 It will have its own state legislature duly entitled to make laws
exclusively (alone) and concurrently for the state in respect of the
matters set out in the Schedules enumerated in the Final Draft 2
Protocol.
2.1.2 It will have a State Executive (Council of Ministers) appointed
by
a governor elected by the inhabitants of the state and accountable to
its state legislature.
2.1.3 It will have a state civil service to administer the state's laws
and to provide public services in the state.
2.1.4 It will be entitled to a fair and equitable share of national
revenue and to raise its own 'revenue as provided for in the Interim
National Constitution, and to raise taxes, which shall include at least
those specified in the schedules referred to above.
2.1.5 It will be entitled to a proportionate share from the total
allocation to the North of the following:
2.1.5.1 Members of the National Assembly;
2.1.5.2 National Ministers;
2.1.5.3 Members of the Council of States (being two each); and
2.1.5.4 Senior civil service positions.
2.2 It will be entitled to collaborate and make agreements with other
states and the National Government in negotiating matters of mutual
interest.
2.3 Subject to the Interim National Constitution, it may establish
state
courts to enforce its state laws as well as national laws applicable in
the state.
2.4 The state shall have at least the competencies of other states but
must also have the following:
2.4.1 Control over education at primary and secondary level and such
aspects of education policy and curriculum that provide for diversity
and mediums of instruction. If there is a conflict between the National
and the state government on language on question of languages of
instruction and of curricula, the state proposal shall prevail.
2.4.2 The state shall have the right to feely determine the content of
all state laws whether civil or criminal matters, subject only to the
Interim National Constitution.
2.5 Nuba Mountain State shall have exclusive legislative and executive
competencies over state resources as well as all other matters listed
as
state powers in the Schedules mentioned herein which include, inter
alia, cultural, language, religious and customary law matters.
2.6 The Executive and Legislature shall accommodate and respect the
Council of Elders and acknowledge an appropriate role for the Council.
2.7 These states shall have special resources allocated to them to
provide for the reconstruction and rehabilitation of war-affected
areas.

2.7.1 The National Government will guarantee an annual transfer of
billion 4.5 billion Sudanese Dinar (SDD) [or, in all cases, the
equivalent of the new currency if/when issued] per year for the first
four years of the interim period, and 5.0 billion SDD in the fifth year
and 5.7 billion SDD in the sixth year, as a minimum to the state
government to cover general budgetary expenditures. Starting from the
fourth year of the Interim Period, the minimum annual transfers shall
be
raised at the inflation rate that is targeted by the annual national
budget. This arrangement will be reviewed at the end of the Interim
Period.
2.7.2 The National Government will transfer an amount for the costs of
reconstruction, development, and re-integration equal to 3.3 billion
SDD
(0.08 percent of GDP) in the first year, 4.2 billion SDD (0.09 percent
of GDP) in the second year, 5.3 billion SDD (0.10 percent) in the third
year, 6.5 billion SDD (0.11 percent of GDP) in the fifth, 7.3 billion
SDD (0.11 percent of GDP) in the sixth year, and 8.3 billion SDD (0.11
percent of GDP) in the seventh year. For the purpose of this Agreement,
the GDP used for the calculations of these transfers will be the one
used for the formulation of the annual national budget. This
arrangement
will be reviewed at the end of the Interim Period.
2.8 The State may draft its own state constitution, subject only to its
compliance with the Interim National Constitution.
2.9 The state shall be entitled to establish and manage the state
police
force.
2.10 The Security Arrangements in this state shall be in accordance
with
the provisions of the ceasefire agreement to be concluded regarding the
disengagement and location of the Sudan People`s Armed Forces (SPAF)
and
the Sudan People's Liberation Army (SPLA) (hereinafter referred to as
the Sudan People's Liberation Armed Forces 'SPLAF' and the treatment of
allied forces or militias.
2.11 There shall be free and fair elections for the state legislature
towards the end of the first half of the Interim Period. The Parties
contesting this election may, notwithstanding other provisions of the
Peace Agreement, seek a mandate regarding the state's constitutional
status. In line with any such mandate, such elected state legislature
may resolve, through consultations with its people, to engage directly
with the National Government in regard to the variation or elaboration
of its constitutional status or power, save that any such variation
must
conform with all relevant constitutional provisions.
2.12 Pending the election referred to above, the, Parties shall agree
on:
2.12.1 The composition of the Interim state legislature;
2.12.2 The state's interim Executive Council, provided that the persons
so appointed shall come from the state; and
2.12.3 The identity of the persons representing the state in the two
houses of the national legislature.
2.13 Both Parties will acknowledge the need to provide for religious,
linguistic and cultural diversity and tolerance, which have been a
characteristic of the state.
2.14 Both Parties to this Agreement will promote the removal of any
call for, or exhortation to attack or harm any of the citizens of the
state.
2.15 Pending the elections, the Governor shall be selected by the
state
legislature and approved by the Presidency. Southern Blue Nile state
legislature shall submit a shortlist of the candidates to the,
Presidency indicating their preference and the Presidency shall select
by consensus the governor from among the shortlist.
2.16 There shall be a branch of the Land Commission in the state with
the power to recommend land ownership and land tenure reforms, resolve
land disputes, and order restitution or compensation for the, taking or
removal of rights in land.
2.17 Ownership or investment or participation in large agricultural
schemes shall, as far as possible and in accordance with the law, be
first offered to local communities and individuals within the state
both
in regard to existing and new schemes. The latter shall require local
approval.
2.18 Presently applicable national laws within the competency of the
state shall be replaced as and when such new laws are duly enacted.
2.19 Where the state has exclusive legislative competency, the
National
Legislature shall not enact any new national laws applicable to the
state. Where it has concurrent competency and the National Government
enacts competing legislation which conflicts with state laws in all
matters in which the diversity or traditions or culture of a group
within the state is affected, the provisions of the state law shall
prevail.

3.0 Southern Blue Nile
3.1 The Southern Blue Nile (refers to the Blue Nile State) shall be
subject to the following arrangements:
3.1.1 It will have its own state legislature duly entitled to make laws
exclusively (alone) and concurrently for the state in respect of the
matters set out in the schedules enumerated in the Final Draft 2
Protocol.
3.1.2 It will have a State Executive (Council of Ministers) appointed
by
a governor elected by the inhabitants of the state and accountable to
its state legislature.
3.1.3 It will have a state civil service to administer the state's laws
and to provide public services in the state.
3.1.4 It will be entitled to a fair and equitable share of national
revenue and to raise its own revenue as provided for in the Interim
National Constitution, and to raise taxes, which shall include at least
those specified in the schedules referred to above.
3.1.5 It will be entitled to a proportionate share from the total
allocation to the North of the following:
3.1.5.1 Members of the National Assembly;
3.1.5.2 National Ministers;
3.1.5.3 Members of the Council of States (being two each); and
3.1.5.4 Senior civil service positions.
3.2 It will be entitled to collaborate and make agreements with other
states and the National Government in negotiating matters of mutual
interest.
3.3 Subject to the Interim National Constitution, it may establish
state
courts to enforce its state laws as well as national laws applicable in
the state.
3.4 The state shall have at least the competencies of other states but
must also have the following:
3.4.1 Control over education at primary and secondary level and such
aspects of education policy and curriculum that provide for diversity
and mediums of instruction. If there is a conflict between the National
and the state government on language on question of languages of
instruction and of curricula, the state proposal shall prevail.
3.4.2 The state shall have the right to feely determine the content of
all state laws whether civil or criminal matters, subject only to the
Interim, National Constitution.
3.5 The Southern Blue Nile State shall have exclusive legislative and
executive competencies, over state resources as well as all other
matters listed as state powers in the Schedules mentioned herein which
include, inter alia, cultural, language, religious, and customary law
matters.
3.6 This state shall have special resources allocated to it to provide
for the reconstruction and rehabilitation of war-affected areas.
3.6.1 The National Government will guarantee an annual transfer of 3.5
billion Sudanese Dinar (SDD) [or, in all cases, the equivalent of the
new currency if/when issued] per year in the first four years of the
interim period, and 3.9 billion SDD in the fifth year and 4.4 billion
SSD in the sixth year, to the state 'government to cover general
budgetary expenditures. Starting from the fourth year of the Interim
Period, the minimum annual transfers shall be raised at the inflation
rate that is targeted by the annual national budget. This arrangement
will be reviewed at the end of the Interim Period.
3.6.2 The National Government will transfer an amount for the costs of
reconstruction, development, and re-integration of approximately 0.8
billion SDD (0?02 percent of GDP) in the first year, 1.4 billion SDID
(0.03 percent of GDP) in the second year, 2.1 billion SDD (0.04 percent
of GDP) in the third year, 2.7 billion SDD (0.04 percent of GDP) in the
fourth year, 2.7 billion SDD (0.04 percent of GDP) in the fifth year,,
3.0 billion SDD (0.04 percent of GDP) in the sixth year, and 3.4
billion
SDD (0.04 percent of GDP) in the seventh year. For the purpose of this
Agreement, the GDP used for the calculations of these transfers will be
the one used for the formulation of the annual national budget. This
arrangement will be reviewed at the end of the Interim Period.
3.7 The State may draft its own state constitution, subject only to its
compliance with the Interim National Constitution.
3.8 The state shall be entitled to establish and manage its state
police
force.
3.9 The Security Arrangements in this state shall be in accordance with
the provisions of the Ceasefire Agreement to be concluded regarding the
disengagement and location of the Sudan People's Armed Forces (SPAF)
and
the Sudan People's Liberation Army (SPLA) (hereinafter referred to as
the Sudan People"s Liberation Armed Forces, "SPLAF") and the treatment
of allied forces or militias.
3.10 There shall be free and fair elections for the state legislature
at the end of the first half of the Interim Period. Notwithstanding
other provisions of the Peace Agreement, the Parties contesting this
election may seek a mandate regarding the state's
constitutional status. In line with any such mandate,
such
elected state legislature may resolve, through consultations with its
people, to engage directly with the National Government in regard to
the
variation or elaboration of its constitutional status or power, save
that any such variation must conform with all relevant
constitutional
provisions.
3.11 Pending the election referred to above, the Parties shall agree
on:
3.11.1 The composition of the interim state legislature;
3.11.2 The states' interim Executive Council, provided that the persons
so appointed shall come from the state; and
3.11.3 The identity of the persons representing the state in the two
houses of the national legislature.
3.12 Both Parties will acknowledge the need to provide for religious,
linguistic and cultural diversity and tolerance, which have been a
characteristic of the state.
3.13 Both Parties to this Agreement will promote the removal of any
call for, or exhortation to, attack or harm any of the citizens of the
state.
3.14 Pending the elections, the Governor shall be selected by the state
legislature and approved 'by the Presidency. Southern Blue Nile state
legislature shall submit a shortlist of the candidates to the
Presidency
indicating their preference and the Presidency shall select by
consensus
the Governor from among the shortlist.
3.15 There shall be a branch of the Land Commission in the state with
the power to recommend land ownership and land tenure reforms, resolve
land disputes, and order restitution or compensation for the taking or
removal of rights in land.
3.16 Ownership or investment or participation in large agricultural
schemes shall, as far as possible and in accordance with the law, be
first offered to local communities and individuals within the state
both
in regard to existing and new schemes. The latter shall require local
approval.
3.17 Presently applicable national laws within the competency of the
state shall be replaced as and when such new laws are duly enacted.
3.18 Where the state has exclusive legislative competency, the
National
Legislature shall not enact any new national laws applicable to the
state. where it has concurrent competency and the National Government
enacts competing legislation that conflicts with state laws in all
matters in which the diversity or traditions or culture of a group
within the state is affected, the provisions of the state law shall
prevail.

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THE GOVERNMENT OF SUDAN(GOS) AND THE SPLM RESPONSE TO THE NAKURU DRAFT RESPONSE

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