1. EITI Innovations 18 January 2013 PH-EITI National Workshop Manila, Philippines

2. “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)

3. EITI in the value chain Getting a good deal Ensuring revenue transparency Managing Volatile resources Deciding to extract Investing in sustainable development

4. Innovative elements in EITI reports 1. Getting a Good Deal State participation in companies In-kind revenues Company-by-company production data Lists of licenses and license holders 2. Ensuring Revenue Transparency Relevant background information  Data from independent sources  Midstream revenues Spot checks and verification 3. Managing Volatile Resources Sub-national reporting Front-line revenue allocations Revenues allocated to development funds 4. Investing for Sustainable Development Information on revenue use Social payments 5. Other innovations Coverage of unique sectors Reporting templates Company and government contacts Evaluates participation

5. 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 data Lists of licenses and license holders

6. 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

7. 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

8. 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

9. 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

10. 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 information  Data from independent sources  Midstream revenues Spot checks and verification

11. Relevant background information. 2.1

12. . Burkina Faso, Gabon, Iraq, Mauritania, Mongolia, Mozambique, Niger, Republic of Congo, Tanzania, Yemen, and Zambia include extensive background information on their extractive industry sectors. Gabon 2.1 Relevant background information

13. 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 Norway 2.2

14. 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 Leone Sierra Leone 2006-07 2.3

15. 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

16. 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 allocations Revenues allocated to development funds

17. 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

18. 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/ National Budget Oil/Mining Revenues 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

19. 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

20. 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

21. 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

22. 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

23. 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

24. In addition to mining and petroleum revenues Liberia includes forestry and agriculture Togo includes the mineral water sector Coverage of unique sectors Liberia 2010 5.1 Togo 2010

25. 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

26. 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

27. 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

28. Wrap-up 5.4 Thank you! Questions? Erica Westenberg ewestenberg@revenuewatch.org