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, companies, and civil society
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?
Production Data Revenue Collection State Owned Enterprises Sub National Social Impact Allocation of Rights
From extraction to development
Revenue Management
US - Candidate since 3/2014
One size does not fit all – 46 EITIs
Norway – Compliant since 3/2011 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.
Ghana The EITI Reports identified misuse and underpayments of royalties intended for local development.
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.
EITI results
Liberia 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.
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?
STEP 1 • Public statement by the government STEP 2 • Appointing a senior individual to lead EITI implementation STEP 3 • Inviting companies and civil society to form a multi-stakeholder group STEP 4 • 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