InWEnt Prsentationsvorlage

1
Building on your EITI programme beyond
EITI Implementing the EITI Introductory
Seminar Dar es Salaam, Tanzania 17 June 2009
2
Options for expanding your programme within EITI

• Reconciliation process ? financial / physical /
  process audits or audits against contract
• Including sub-national payments in the EITI
  programme
• Aggregated disclosure ? disaggregated disclosure
• Including details of company investments and
  losses as well as profits
• High materiality points ? low materiality for
  companies and revenue streams

3
Expanding your EITI programme

• Can also look at non-production related payments
  within the extractive industries e.g.
• Transportation fees (mainly with oil and gas
  pipelines)
• Refining and processing activities
• Moving beyond oil, gas and mining
• Many countries now looking at adapting EITI to
  forestry and fisheries
• Related initiatives COST (Construction
  Transparency Initiative) and META (Medicines
  Transparency Alliance)

4
The EITI agenda
5
Awarding access to resources

• Determining the sector and revenue policy, law
  and basic regulations, including
  social/environmental aspects
• Promoting of mineral, petroleum and gas resources
• Establishing efficiently functioning cadastres
  and mineral rights procedures
• Transparent process for awarding licenses to
  exploit extractive resources
• Transparency of those licenses and contracts

6
Monitoring operations

• Structuring and supporting a competent regulatory
  authority which carries out approval, monitoring,
  and enforcement functions
• Monitoring and evaluation of environmental and
  social impacts and effectively addressing any
  external costs of the industry

7
Collection of tax and royalties

• Ensuring that the process of revenue assessment
  and collection is an efficient one
• Striking an appropriate balance between
  self-assessment and regular checks and audits
• Looking at how funds flow between different
  government agencies
• Looking at how revenue information is shared
  between different agencies
• Disclosure of revenue flows

8
Revenue management

• Determining the macroeconomic framework
• Considering whether a resource-fund is required
  to act as either
• a savings mechanism (future generations)
• an investment fund to promote diversification
  and/or
• a fund to protect against commodity price
  volatility
• Public investment decisions - will the state
  directly invest revenue back into the sector or
  into other sectors

9
Ensuring the efficient use of funds

• Ensuring that there are adequate PFM and
  procurement systems in place to prevent wastage
• Remediation of environmental impacts
• Economic diversification and growth
• Directly addressing the impact on communities
  affected by extractive industry operations

10
A common transparency theme?

• Transparency of licensing
• Contract transparency
• Effectiveness of monitoring and accountability of
  government agencies to parliament
• Reviewing the effectiveness of revenue collection
• Transparency of
• Government investments in the extractive
  industries
• Any savings funds established for EI revenues
• Transparency of EI related expenditures (by
  companies or government) in communities affected
  by extractive industry operations

11
Questions, discussion
12
Contact details

• Sefton Darby
• S.E.B. Strategy Ltd
• sefton_at_sebstrategy.com
• website www.sebstrategy.com