EITI IMPLEMENTATION IN AZERBAIJAN COUNTRY UPDATE

PRESENTATION BY Gubad Bayramov, The NGO Coalition Eurasia Transparency Network: 7

th

Regional Meeting 10-11October 2011, Tirana Albania

EITI IMPLEMENTATION IN AZERBAIJAN I STAGE

•

The first stage

can be called a pilot phase. This phase was remembered by the fact that Azerbaijan became involved in this initiative as a pilot country and made the first EITI report in the world. This phase covers the period 2003-2005. This period can be called a period of the establishment and institutionalization of the EITI in Azerbaijan. Because it was during this period that the government commission on the implementation of the EITI was set up, the State Oil Fund of Azerbaijan was elected as an EITI champion, the NGO Coalition of Public Associations for Increasing Transparency in Extractive Industries was established and cooperation was launched in this context, most of extractive companies joined this initiative and a memorandum of mutual cooperation was signed between the parties.

EITI IMPLEMENTATION IN AZERBAIJAN I I STAGE

•

The second stage

covers the period beginning from the moment when our country became a candidate for membership of the EITI to the moment when it became a full member. This stage, which covers the period 2005 2009, can be called the period of the development of the EITI in Azerbaijan, because, during this period, Azerbaijan was ahead for the number of EITI reports it released and the initiatives it put forward and gained a reputation and position at the international level. The EITI resolution put forward on behalf of the government of Azerbaijan was put up for debate and adopted at a UN session, and it was recommended that other countries join the EITI and support it.

EITI IMPLEMENTATION IN AZERBAIJAN I I I STAGE

•

The third final stage

begins from the moment when Azerbaijan passed through the validation process and became a full member of the EITI. Although the implementation of the EITI in Azerbaijan did not undergo significant changes during this period, our country remained in the centre of attention. For example, during the validation process the EITI International Board gave the government of Azerbaijan recommendations in four spheres. These include the establishment of the Multilateral Group (1), the adoption of the action plan of the Multilateral Group (2), improvement of reporting (3) and increasing opportunities for public awareness of reports (4).

Most important achievements

1.

The management format of the EITI changed, a Multilateral Group was created equally representing the parties and its action plan was adopted.

2.

The texts of all contracts signed by the Government of Azerbaijan will be displayed on the website of the Petroleum Fund.

3.

The number of indicators of EITI report are increased from 11 to 16.

4.

For the first time a government commission supported the demand of the Coalition on individual disclosure by companies (before, a government commission did not object).

Great difficulties

• 1. Transfer of certain powers from the Governmental Commission to the Multi-Stakeholder Group of (in the old Memorandum the Government Commission has some powers, which after the creation of Multi-stakeholder Group is not logical to leave the government); • 2. The mandatory individual disclosure the reports by companies; • 3. The draft law on EITI prepared by the NGO Coalition is not recognized ; • 4. The main problem is the lack of direct correlation between successful participation in the EITI and the level of human development in a country.

Possible opportunities

1.

Improvement EITI reports by payments. In the reporting forms will be introduced as indicators of company payments to social funds and customs payments; 2. Adoptation of new version of the Memorandum of Understanding; 3. Access to all PSA contracts; 4. Organize international conference on EITI in Baku.

THANKS FOR YOUR ATTENTION

Baku, Azerbaijan AZ 1052 Ahmad Rajabli 5 A, apart 82, Life Center , Bld III, Floor 2 Phone: (+99412) 4651841 Fakx (+99412) 4651841 web-site: www.eiti-az.org

e-mail: [email protected]

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