Introduction to the EITI

A countrys natural resources belong to all its people.

Citizens should have the right to see what their
government is receiving from these resources.
However, in too many countries this
information is not publicly available
Through implementing the global EITI transparency standard,
countries ensure more transparency of revenues from its oil, gas
and mineral resources.
The EITI is a global standard for
disclosing company payments
and government revenues in the
extractive sector.




The EITI Standard has two core elements:
The EITI Standard has two core elements:
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

8
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
Report where government
revenues 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.
Production
data
Transfers to local
government
Transit
payments
(encouraged)
State
Owned
Enterprises
Government
publish
receipts
Companies
publish
payments
Licenses &
contracts
Monitoring
production
Tax collection
Revenue
allocation
Expenditure
management
Licensing
information
State
ownership
Production
contracts
(encouraged)
Beneficial
ownership
(encouraged)
Company social
and infrastructure
investments
EITI reports: An example from Norway
Key Features of EITI
Country ownership - shape the EITI as
appropriate in each country.
Annual reporting both 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.
39 countries now implement the EITI
Standard around the world
Country progress






Supported by companies, institutional investors,
civil society and international organisations

Implementation
supported by
multiple donors
EITI supporters
Progress of the EITI
Progress of the EITI
OECD Countries
Norway is Compliant
Australia, Germany, United States Italy, United
Kingdom and France have all taken steps to
become members

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
World Bank Role
Supports country in meeting steps to become
candidate country (Bank managed)
Provides country a grant (through Multi-donor
Trust Fund) to move from candidate to compliant
country takes about 2 years (recipient
managed)
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 national
secretariat
Becoming EITI Compliant
Companies and countries provide information as indicated in the EITI
Standard
Auditing company reconciles information from both sides & points out any
discrepancies or omissions
Independent validator, hired by EITI International Secretariat, assesses
progress of the country and, if necessary, makes recommendations for
strengthening the process (must begin validation within 2 years of
becoming candidate)
The EITI Board, through the EITI Secretariat, oversees the Validation
process 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, the
country will remain a Candidate (and try again with time restriction)
If country does not proceed to Validation on time, or Validation shows no
meaningful progress, the Board may revoke candidate status
Further Information: www.eiti.org


Thank you!