Intro to the EITI_gm

8/11/2019 Intro to the EITI_gm

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Introduction to the EITI


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A countrys natural resources belong to all its people.

Citizens should have the right to see what their

government is receiving from these resources.


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However, in too many countries this

information is not publicly available


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The EITI is a global standard for

disclosingcompany paymentsand government revenues in theextractive sector.


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The EITI Standard has two core elements:


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THE NEW EITI STANDARD

Includes:

Licensing information

Information on state ownership

Production

Transfers to local governments

Revenues from State Owned Companies

Company social & infrastructure expenditures

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Increasing transparency and accountability in the natural resource

value chain.

A national multi-stakeholder group

(government, companies and civil

society) decides how their EITI

process should work.

This group publishes an EITI

Reportwhere government

revenues and other data are

disclosed and independently

assessed.

The findings are communicated to

create public awareness and

debateabout how the country

should better manage their

resources.

Production

data

Transfers to local

government

Transit

payments(encouraged)

State

Owned

Enterprises

Government

publishreceipts

Companies

publish

payments

Licenses &contracts

Monitoringproduction

Tax collectionRevenueallocation

Expendituremanagement

Licensing

information

State

ownership

Productioncontracts(encouraged)

Beneficial

ownership(encouraged)

Company social

and infrastructure

investments


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EITI reports: An example from Norway


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Key Features of EITI

Country ownership - shape the EITI asappropriate in each country.

Annual reportingboth for companies and for

government. Make use of the data to answer the key

questions facing the country and create public

debate. Multi-stakeholder governance at all levels.


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39 countries now implement the EITI

Standard around the world


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Country progress


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Supported by companies, institutional investors,

civil society and international organisations

Implementationsupported by

multiple donors

EITI supporters


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Progress of the EITI


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Progress of the EITI


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OECD Countries

Norway is Compliant

Australia, Germany, United States Italy, United

Kingdom and France have all taken steps to

become members


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When citizens can follow the money being

generated by their resources, they ask

questions about how the money is being

managed

Azerbaijan - upgraded sovereign credit ratings Mongolia - improved relationship with

multinational companies (including Chinese

and Australian) and local communities Nigeria- uncovered 4 billion USD in unpaid

taxes

The benefits


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World Bank Role

Supports country in meeting steps to becomecandidate country (Bank managed)

Provides country a grant (through Multi-donorTrust Fund) to move from candidate to compliant

countrytakes about 2 years (recipientmanaged) Note: to be eligible for grant Government must set up

national secretariat to manage day to day process;reports to Multi-Stakeholder Group

Provides on-going assistance to nationalsecretariat


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Becoming EITI Compliant

Companies and countries provide information as indicated in the EITIStandard

Auditing company reconciles information from both sides & points out anydiscrepancies or omissions

Independent validator, hired by EITI International Secretariat, assessesprogress of the country and, if necessary, makes recommendations forstrengthening the process (must begin validation within 2 years ofbecoming candidate)

The EITI Board, through the EITI Secretariat, oversees the Validationprocess and reviews all Validation Reports.

If the Board considers that the country meets all the EITI Requirements,the country will be designated as EITI Compliant

Compliant countries must undergo Validation every 3 years

If Validation Report shows progress but not all the EITI Requirements, thecountry will remain a Candidate (and try again with time restriction)

If country does not proceed to Validation on time, or Validation shows nomeaningful progress, the Board may revoke candidate status


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Further Information: www.eiti.org

Thank you!
http://www.eiti.org/http://www.eiti.org/

Documents

Intro to the EITI_gm