eiti innovations 18 january 2013 ph-eiti national workshop manila, philippines
TRANSCRIPT
EITI Innovations
18 January 2013PH-EITI National Workshop
Manila, Philippines
“Multi-stakeholder groups are encouraged to explore opportunities to include additional information in their EITI Reports that will increase the comprehensiveness of EITI reporting and public understanding of
revenues and encourage high standards of transparency and accountability in public life,
government operations and in business.” EITI Rules, 2011 Edition
EITI Requirement 9(h)
EITI in the value chainGetting a good deal
Ensuring revenue
transparency
Managing Volatile resources
Deciding to extractInvesting in sustainable
development
Innovative elements in EITI reports
1. Getting a good deal
Policy challenges/questions addressed:•What is the relationship between the state and individual oil and mining companies? • Is the government getting a fair share of
extractive industry revenues? • What percentage of total production do
government revenues represent?
State participation in companies•In-kind revenues•Company-by-company production dataLists of licenses and license holders
Cameroon, DRC, Gabon, Ghana, Kyrgyzstan, Mali, Mauritania, Mongolia, Mozambique, Nigeria, Norway, Republic of Congo, Tanzania, Togo, and Zambia
report revenues the state earns as a partner or shareholder in extractive companies and explain the relationships between companies and the state
State participation in companies
State as shareholder
State as public entity
DRC 2008-09
1.1
Cote d’Ivoire, Iraq, Nigeria, and Yemen report the volume and value of physical
flows.
Azerbaijan, Cameroon, Mozambique, and Republic of Congo report only the volume
of physical flows
In-kind revenues
Nigeria 2006-08
Iraq 2009
1.5
Burkina Faso, Iraq, Mali, Mozambique, Republic of Congo,
Togo, and Zambia include company-by-company production
volumes
Company-by-company production data
Mali 2009
Burkina Faso 2008-09
1.4
Burkina Faso, Cote d’Ivoire, Nigeria, Republic of Congo, Tanzania, Timor Leste, Togo, and Zambia list production
sites and who operates them
Gabon and Yemen provide maps of mining and oil concessions
Lists of licenses and license holders
Cote d’Ivoire 2006-07
Rep. of Congo 2009
Gabon 2006-08
1.3
2. Ensuring revenue transparency
Policy challenges/questions addressed:•How important are extractive revenues to the national economy?• How much does the government make from other
industries associated with petroleum and mineral extraction?• How accurate is company and government data?
Relevant background informationData from independent sourcesMidstream revenues•Spot checks and verification
Relevant background information
.
2.1
Describes all major commodites
EI revenues' role in national economy (% of GDP, exports, etc.)
Data on reserves
Describes growth of sectors
Current national production data
Future production estimates
Describes investment in sectors
Information on individual projects, major mines/oilfields, etc.
References legislation covering extractive sectors
Description of privatisation of EI sectors
Describes role of SOE
Includes maps of deposits, l icenses, etc
Compares current data to past EITI reports
Describes phases and modes of exploitation (exploration vs. extraction, large-scale vs. artisanal, etc.)
Albania x x x xBurkina Faso x x x x x x x x x xCAR x xCote d'Ivoire x x x xDRC x x xGabon x x x x x x x x xIraq x x x x x x x xKyrgyzstan x x x xMauritania x x x x x x xMongolia x x x x x x x x x xMozambique x x x x x x x xNiger x x x x xNigeria x xNorway x xPeru x x x xRep. of Congo x x x xSierra Leone x xTanzania x x x x x xTogo x x x x xTimor Leste x x
.
Burkina Faso, Gabon, Iraq, Mauritania, Mongolia, Mozambique, Niger, Republic of Congo, Tanzania, Yemen, and Zambia include
extensive background information on their extractive industry sectors.
GabonGabon
2.1 Relevant background information
Norway links to state accounts
Sierra Leone cites government and IMF data
Timor Leste includes Petroleum Fund reporting
Zambia’s 2008 report includes production data from the national
statistics office and price data from the London Metal Exchange
Data from independent sources
NorwayNorway
2.2
Sierra Leone includes revenues from port operations and gold and diamond dealers/exporters
Madagascar includes fees for use of transport infrastructure among its revenue streams (though no
payments were received)
Togo included payments from the national rail company, some of which come from transporting minerals
Midstream revenues
Sierra LeoneSierra Leone
Sierra Leone 2006-07
2.3
Ghana cross-checks company claims
Peru verifies sub-national disbursements
Nigeria requires spot checks of physical flows and pricing mechanisms
Spot checks and verification
.
Ghana 2009
Nigeria 1999-2004
2.5
3. Managing volatile resources
Policy challenges/questions addressed:•Where do extractive revenues go once they’ve been received by the government?• What portion of extractive revenues does the
government invest in the future?
Sub-national reporting•Front-line revenue allocationsRevenues allocated to development funds
Ghana, Mongolia, Nigeria, Peru, and Sierra Leone include data on revenue transfers between central and local governments
Sub-national reporting
Peru 2008-10
3.1
Cameroon reports on transfers made to ministries and public administration before funds go through budget
Cote d’Ivoire’s in-kind gas payments to SOE are used for electricity generation
Mongolia shows how some revenue streams go to regional budgets and company “donations” fund specific projects
Timor Leste’s revenues go directly to the Petroleum Fund
Nigeria reports that a portion of in-kind revenues is used to cover operating expenses of companies where the state is a shareholder
Kyrgyzstan notes that allocations to the Social Fund and other social expenditures do not go through the state budget
Kazakhstan’s dividends do not go to state budget
Peru reports that a portion of taxes and royalties go directly to regional governments
Tanzania includes levies that go directly to local governments
Front-line revenue allocations
Treasury/Treasury/National National BudgetBudget
Oil/Mining Oil/Mining RevenuesRevenues
In-kind oil/gas goes directly to refinery
Company-funded infrastructure projects
Funds go directly to local governments
SOE dividends are reinvested
Examples of front-line
allocations
3.2
Ghana, Iraq, Kyrgyzstan, Liberia, Nigeria, Peru, Sierra Leone, and Timor Leste report payments to development funds
Revenues allocated to development funds
Kyrgyzstan 2009
Timor Leste 2009
3.3
4. Investing for sustainable development
Policy challenges/questions addressed:•Is the government using mining and petroleum funds to accomplish its development priorities?• Are extractive revenues really benefitting local
communities?• Are companies following through on promises of
community development?
• Information on revenue use Social payments
Ghana shows budgeted and actual spending by local governments
Peru shows the beneficiaries of specific revenue streams
Information on revenue use
Ghana 2009
4.1
Burkina Faso (“Prélèvement Communautaire de Solidarité”),Kazakhstan (“environmental fees”),
Kyrgyzstan (“environmental charges” and social fund contributions) Liberia (“contributions to community”),
Mongolia (“donations”),Peru (payments to local communities),Republic of Congo (“projets sociaux”), Togo (voluntary company payments),
Yemen (“social development bonus”), and Zambia (“environmental protection fund” and “social payments”) report social
payments.
Social payments
Zambia 2008
Mongolia 2009
4.2
5. Other innovations
Policy challenges/questions addressed:•Which natural resource sectors contribute most to government revenues? • Where can civil society activists and journalists go to
follow up on questions raised by EITI reports?• Which companies and government agencies were
most willing to participate in EITI reporting?
• Coverage of unique sectors• Reporting templates• Company and government contacts• Evaluates participation
In addition to mining and petroleum revenuesLiberia includes forestry and agricultureTogo includes the mineral water sector
Coverage of unique sectors
Liberia 2010
5.1
Togo 2010
Burkina Faso, Ghana, Peru, Mali, Norway, Republic of Congo, Tanzania, and Zambia include copies of reporting templates in their EITI reports
Reporting templates
Ghana 2009 Tanzania 2008-09
5.2
Burkina Faso, Madagascar, Mali, Mongolia, Republic of Congo, Sierra Leone, Tanzania, and Zambia list contacts in companies and government agencies
Company and government contacts
Rep. of Congo 2010
Mongolia 2009
5.3
Mongolia rates performance and transparency
Republic of Congo’s 2007-09 report shows which pieces of information each company
supplied
Evaluates participation
Mongolia 2009
5.4