2. INTERNATIONAL IDEA AND GOVERNMENT OF BOTSWANA ANNUAL DEMOCRACY FORUM 2014 GABORONE, 24-25 NOVEMBER 2014 Session 2: Legal Frameworks and Standards for Resource Management “EITI—Overview” Jürgen Reitmaier EITI International Secretariat

3. The Extractive Industries Transparency Initiative (EITI) is a global standard for transparency in the oil, gas and mining sectors. “(P)rudent use of natural resource wealth should be an important engine for sustainable economic growth that contributes to sustainable development--” (EITI Principle #1) Initiated in 2002, EITI Standard in 2013 Overseen by the EITI Board with representatives from governments, companies, and civil society

4. This group publishes an EITI Report where government revenues, company payments 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. Data and dialogue A national multi-stakeholder group (government, companies and civil society) decides how their EITI process should work.

5. Revenue Collection Production Data State Owned Enterprises Sub- National Revenue Management Allocation of Rights Social Impact From extraction to development How is value captured? Where do benefits go? The EITI Standard captures information across the value chain

6. One size does not fit all – 46 EITIs US - Candidate since 3/2014 Norway – Compliant since 3/2011 Tanzania – Compliant since 12/2012 Zambia – Compliant since 9/2012

7. Benefits for all Government Improving tax collection Preventing corruption Attracting quality investments Gaining citizens’ trust Citizens Enabling them to demand accountability Ensuring that they see benefits from natural resources Companies Showing they pay taxes Creating a level playing field Gaining citizens’ and communities’ trust

8. EITI results Nigeria A new calculation model for royalty payments from oil is being developed after Nigeria EITI identified a US $2bn underassessment. US$410m missing education taxes have been collected from oil & gas companies. An inter- ministerial team is working to ensure that gas from oil fields is captured and generates revenue for the state.

9. Ghana The EITI Reports identified misuse and underpayments of royalties intended for local development. Subsequently, the government developed guidelines for the utilisation of mineral royalties at the subnational level. Separate bank accounts were opened to enable following the funds. Liberia Liberia EITI conducted an audit, which revealed that most of the 68 contracts and licenses that were examined had not been awarded in line with applicable legislation. The audit provoked public debate on license awarding procedures. EITI results

10. Resource Governance Index 2012 (Source: NRGI)

11. Multi-Donor Trust Fund The World Bank administers an EITI Multi-Donor Trust Fund (MDTF) that provides Financial assistance (grants) Technical assistance (consultants and advisors) to EITI implementing countries.

12. How to become a Candidate? STEP 1 Public statement by the government STEP 2 Appointing a senior individual to lead EITI implementation STEP 3 Inviting companies and civil society to form a multi-stakeholder group STEP 4 Developing an EITI workplan based on national priorities and EITI Principles and Requirements

13. Thank you! www.eiti.org @EITIorg Email: secretariat@eiti.org - Telephone +47 22 20 08 00 Address: EITI International Secretariat, Ruseløkkveien 26, 0251 Oslo, Norway