Extractive Industries Transparency Initiative (EITI). GBS Annual Review Key Issue 4 – Challenges in Combating Corruption Dar Es Salaam November 26, 2008 Implementing EITI in Tanzania: The Pathway Ahead and Key Challenges (including role of EITI Multi-donor Trust Fund)
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GBS Annual Review
Key Issue 4 – Challenges in Combating Corruption
Dar Es Salaam
November 26, 2008
Implementing EITI in Tanzania:
The Pathway Ahead and Key Challenges
(including role of EITI Multi-donor Trust Fund)
Presentation by Vedasto Rwechungura
Underlying issue that EITI seeks to address: “managing natural resources sustainably”
Although Tanzania is not yet mineral-dependent, given the global experience of resource-rich countries, it is important to lay the foundation early for transparency and good governance in the sector
Transparency and good sector governance in the context of Tanzania policy goals
EITI – a global standard locally implemented to meet Tanzania policy goalsnational goals and requirements
EITI Streering Group/Committee
(to manage day-to-day EITI work)
EITI Global Structure – EITI Board Tanzania policy goals
(EITI partners’ goal is to help an EITI country to implement the EITI cycle)
Country undertakes external validation
Validation is the end-objective for an EITI country
Companies Disclose Payments Tanzania policy goals
Government Discloses Receipt of Payments
Independent Verification of Tax & Royalty Payments
Award of licenses
monitoring of operations
Implementation of Sustainable Development Policies
Oversight by a Multi-Stakeholder Group
The EITI Process - part of a bigger picture
The EITI provides a forum for dialogue and a platform for broader reforms
Reconciler / Auditor
All EI companies complete
(and provide information as required to Audit firm)
-- investigates / gets
more data to reconcile
-- produces EITI Report for Stakeholder Group
Companies, Civil Society)
…. At country level:
(Azerbaijan, Cameroon, Gabon, Ghana, Guinea, Mauritania, Mongolia, Nigeria, Kazakhstan, Kyrgyz Republic)
At global level, World Bank managed MDTF activities designed to:
BUT … EITI is not cost-free to governments. Needs:
EITI CRITERIA to support EITI implementation
Independent reconciliation / audit of payments made and revenues received.
Publication and widespread dissemination of results.
Comprehensive coverage, i.e. all companies including state-owned and local companies.
Full engagement of civil society in the process.
Public, financially sustainable, time-bound plan of implementation.
BUT - WHAT ABOUT:
Transparency of licensing?
Were “fair” terms and conditions negotiated?
Are long-term revenue and benefits for country optimal?
What companies pay vs. what they should pay?
Revenue allocation e.g. to sub-national level and communities
Environment / social linkages?
… and the whole of the “expenditure side” (not in EITI)“Beyond EITI”: EITI Criteria is about a minimum standard - which does not aim to cover everything
Licencing and Awarding to support EITI implementation
Operations – compliance
- and Royalties
Projects – social
EITI process“Beyond EITI”: EITI is narrowly-focused yet provides platform for further reforms and good EI governance