Transcript Slide 1

INTERNATIONAL IDEA AND GOVERNMENT OF BOTSWANA
ANNUAL DEMOCRACY FORUM 2014
GABORONE, 24-25 NOVEMBER 2014
Session 2: Legal Frameworks and Standards for
Resource Management
“EITI—Overview”
Jürgen Reitmaier
EITI International Secretariat
The Extractive Industries Transparency
Initiative (EITI) is a global standard for
transparency in the oil, gas and mining
sectors.
• “(P)rudent use of natural resource
wealth should be an important
engine for sustainable economic
growth that contributes to
sustainable development--” (EITI
Principle #1)
• Initiated in 2002, EITI Standard in
2013
• Overseen by the EITI Board with
representatives from governments,
Data and dialogue
A national multi-stakeholder group
(government, companies and civil
society) decides how their EITI
process should work.
This group publishes an EITI
Report where government
revenues, company payments and
other data are disclosed and
independently assessed.
The findings are communicated to
create public awareness and
debate about how the country
should better manage their
resources.
The EITI Standard captures information across the value
chain
How is value captured?
Where do benefits go?
State Owned
Revenue
Collection
Production
Data
Enterprises
SubNational
Social
Impact
Allocation of
Rights
From extraction to development
Revenue
Management
One size does not fit all – 46 EITIs
Norway –
Compliant
since 3/2011
US - Candidate
since 3/2014
Zambia –
Compliant
since 9/2012
Tanzania –
Compliant
since
12/2012
Benefits for all
Government
• Improving tax
collection
• Preventing
corruption
• Attracting quality
investments
• Gaining citizens’
trust
Citizens
• Enabling them to
demand
accountability
• Ensuring that they
see benefits from
natural resources
Companies
• Showing they pay
taxes
• Creating a level
playing field
• Gaining citizens’
and communities’
trust
EITI results
Nigeria
A new calculation model
for royalty payments from
oil is being developed
after Nigeria EITI
identified a US $2bn
underassessment.
US$410m missing
education taxes have
been collected from oil &
gas companies.
An inter- ministerial team
is working to ensure that
gas from oil fields is
captured and generates
revenue for the state.
EITI results
Ghana
Liberia
The EITI Reports
identified misuse and
underpayments of
royalties intended for
local development.
Liberia EITI conducted
an audit, which revealed
that most of the 68
contracts and licenses
that were examined had
not been awarded in line
with applicable
legislation.
Subsequently, the
government developed
guidelines for the
utilisation of mineral
royalties at the
subnational level.
Separate bank accounts
were opened to enable
following the funds.
The audit provoked
public debate on license
awarding procedures.
Resource Governance Index 2012 (Source: NRGI)
Multi-Donor Trust Fund
The World Bank administers an
EITI Multi-Donor Trust Fund
(MDTF) that provides
• Financial assistance (grants)
• Technical assistance (consultants and advisors)
to EITI implementing countries.
How to become a Candidate?
• Public statement by the government
STEP 1
• Appointing a senior individual to lead EITI implementation
STEP 2
STEP 3
STEP 4
• Inviting companies and civil society to form a multi-stakeholder
group
• Developing an EITI workplan based on national priorities and EITI
Principles and Requirements
Thank you!
www.eiti.org
@EITIorg
Email: [email protected] - Telephone +47 22 20 08 00
Address: EITI International Secretariat, Ruseløkkveien 26, 0251 Oslo, Norway