New EITI Standards, Philippine Candidacy
and PH-EITI Work Plan
Atty. Alessandra V. Ordenes
National Coordinator PH-EITI
Compostela Valley - Bantay Kita - Article 33 Indonesia
SUBNATIONAL CONFERENCE ON
EXTRACTIVE INDUSTRY TRANSPARENCY INITIATIVE
Davao City, The Philippines, August 22-23, 2013
2. OVERVIEW OF EITI
What it does:
•The Extractive Industry Transparency Initiative
(EITI) is a global standard of transparency that
requires the extractive industries such as oil,
gas, and mining to publish what they pay to the
government, and the government to publish
what they collect from these industries.
4. OVERVIEW OF EITI
• The EITI adheres to the principle that there
must be sound management of natural
resources. It operates on the premise that the
citizens own these resources, and therefore
have the right to know how these resources
are managed.
5. OVERVIEW OF EITI
How it works:
The EITI standards rest on 3 pillars:
1. All revenues from extractive industries should be
regularly published and independently verified;
2. Publication of data should be managed and
overseen by a multi stakeholder group (MSG)
composed of the government, the industries, and
civil society; and
3. Data should be effectively shared with the
country’s citizens and stimulate an informed
debate about how natural resources are governed.
6. OVERVIEW OF EITI
Who are involved:
•Globally, the EITI international board oversees
the Initiative. The Board, led by a Chairman, is
composed of 20 members, representing
implementing countries, supporting countries,
civil society organizations, industry and
investment companies.
7. IMPLEMENTING COUNTRIES
1. Afghanistan
2. Cameroon
3. Chad
4. Guatemala
5. Honduras
6. São Tomé and Príncipe
7. Solomon Islands
8. Trinidad and Tobago
9. Guinea
10. Indonesia
11. Kazakhstan
12. Tajikistan
13. The Philippines
14. Democratic Republic of
Congo (suspended)
15. Madagascar (suspended)
16. Sierra Leone (suspended)
Candidate Countries:
8. 1. Azerbaijan
2. Iraq
3. Kyrgyz Republic
4. Mauritania
5. Mozambique
6. Nigeria
7. Peru
8. Tanzania
9. Timor-Leste
10. Zambia
11. Albania
12. Burkina Faso
13. Côte d'Ivoire
14. Ghana
15. Liberia
16. Mali
17. Mongolia
18. Niger
19. Norway
20. Republic of the Congo
21. Togo
22. Yemen
23. Central African
Republic (suspended)
Compliant Countries:
9. OVERVIEW OF EITI
In the Philippines, the multi-stakeholder group (MSG) is
composed of representatives from the government, the
extractive industries, and the civil society.
The government agencies involved in EITI implementation
are the following:
1. Department of Finance (under which the PH-EITI
secretariat is lodged).
2. Department of Environment and Natural Resources
3. Department of Energy
4. Department of Interior and Local Government
5. Union of Local Authorities of the Philippines.
10. OVERVIEW OF EITI
• The civil society is mainly represented by Bantay Kita
Philippines, a broad coalition of civil society organizations
advocating transparency and accountability.
• The extractive industries are
represented by the Petroleum
Association of the Philippines,
The Chamber of Mines
Philippines, and an elected
representative from non-
chamber members.
11. Objectives and Benefits:
The benefits of EITI implementation are the following:
1. Demonstrates a national commitment to governance
2. Single-window information disclosure system
3. Increased efficiency in collection of resource
revenue
4. Improving sovereign and corporate ratings
5. Empowers civil society to seek greater accountability
OVERVIEW OF EITI
12. 2013 EITI STANDARDS
1. The EITI requires effective oversight by the multi-
stakeholder group.
2. The EITI requires timely publication of EITI Reports.
3. The EITI requires EITI Reports that include contextual
information about the extractive industries.
a. Legal framework and fiscal regimes
b. Overview of extractive industries and significant
exploration activities
c. Contribution to national economy
d. Production figures
13. 2013 EITI STANDARDS
e. Government participation in the extractive sector
f. Distribution of revenues
g. Revenue management (encouraged)
h. Licenses
i. Beneficial ownership
j. Production contracts (encouraged)
4. The EITI requires the production of comprehensive EITI
Reports that include full government disclosure of
extractive industry revenues, and disclosure of all
material payments to government by oil, gas and
mining companies.
14. • Government’s production entitlement
• National state owned company and production
entitlement
• Profit taxes
• Royalties
• Dividends
• Bonuses
• License fees, rental fees
• Other significant payments and material benefits
• Sale of state’s shares of production
• Infrastructure provisions and barter arrangements
Revenue Streams
15. • Social expenditures
• Revenues from transportation of oil, gas and minerals
if it constitutes one of the largest revenue streams
• Material payments to state owned enterprises and
transfers between state owned enterprises and
government agencies
• Subnational payments
• Subnational transfers
Revenue Streams
16. 5. The EITI requires a credible assurance process applying
international standards.
6. The EITI requires EITI Reports that are comprehensible,
actively promoted, publicly accessible, and contribute to
public debate.
7. The EITI requires that the multi-stakeholder group take
steps to act on lessons learned and review the outcomes
and impact of EITI implementation.
2013 EITI STANDARDS
18. PH-EITI’s Candidature and
Work Plan
Steps we undertook to become a
candidate:
•The government issued an unequivocal public
statement of its intention to implement the EITI.
20. Statement of the President
“We will implement the Extractive Industries
Transparency Initiative (EITI) in order to improve
transparency in the collection and payment of
government taxes and other revenues from
extractive industries. We earlier declared this
commitment through Section 14 of Executive
Order No. 79. We will apply for EITI Candidacy in
January 2013.”
21. Statement of the President
“Most importantly, we commit to implement EITI in
an exclusive and participatory manner. In line with
the prescriptions of EITI, we have formally convened
a Multi-Stakeholder Group that has
developed, deliberated upon and endorsed a work
plan for EITI implementation in the country. We call
on industry, civil society and other stakeholders to
link arms with the government in putting this
transparency initiative to action.”
22. PH-EITI’s Candidacy and
Work Plan
Steps we undertook to become a
candidate:
•The government appointed a senior individual to
lead on the implementation of the EITI.
•The government worked with civil society and
companies, and established a multi-stakeholder
group to oversee the implementation of the EITI.
23. Terms of Reference
General Roles of the MSG members:
•Ensure an open and transparent functioning of PH-EITI
•Address confidentiality concerns in implementing EITI
•Communicate and provide linkages and facilitate
dialogue with the different organizations and groups
regarding related issues
•Help determine parameters of EITI implementation
•Be involved in communicating updates and results to
their respective constituencies and to the general public
•Implement capacity building and other knowledge
exchange activities for those less familiar with EITI
24. Terms of Reference
Role of Government Representatives:
•Provide political leadership and support such as
creating a unit which will provide secretariat and
technical support to Philippine EITI
•Ensure the full participation of national government
agencies and local government units in the
implementation of EITI and create an enabling policy
environment for the same
•Ensure the full participation of extractive companies
25. Terms of Reference
Role of Government Representatives:
•Encourage the full participation of civil society
•Provide a legal basis for implementation of EITI as well
as identify and address legal barriers and regulations
that block the proper implementation of EITI
•Disclose government revenues and relevant data in an
accurate and timely manner and at a level of detail to
be agreed upon by the MSG
26. Terms of Reference
Role of Business Representatives:
•Help ensure the full participation of extractive
companies
•Disclose payments and relevant data to
government, IPs and other stakeholders in an
accurate and timely manner at a level of detail to
be agreed upon by the MSG
•Communicate with industry stakeholders
developments on EITI
27. Terms of Reference
Role of CSO Representatives:
•Communicate and consult widely with a diverse
set of stakeholders including those outside the
steering group and build capacities on EITI
•Ensure full participation of relevant CSOs
•Monitor the disclosures done by the government
and extractive companies
28. Steps we undertook to become a
candidate:
•The multi-stakeholder group developed a work
plan, fully costed and aligned with the reporting
and Validation deadlines established by the EITI
Board.
•Upon completing the above steps, the
government submitted an EITI Candidate
Application to the EITI Board.
29. The Philippines was admitted as a Candidate
Country on May 22, 2013 during the EITI Global
Conference in Sydney, Australia.
30. Objectives of the PH-EITI work plan and
the activities that support these
objectives:
1.Establish commitment and support to
implement EITI
2.Form the MSG, develop and publish the TOR
and work plan
3.Institutionalize PH-EITI
4.Prepare to implement and monitor PH-EITI
5.Report, reconcile, audit revenue flows
6.Communicate, build knowledge and engage
citizens
31. CONCLUSION
Key features of the new standards
1.Extending the scope of EITI reporting is
encouraged.
2.Contain specific rules on which information are
required and which are merely encouraged.
3.Explicitly state the importance of
communicating EITI to the public.
4.Contextual information is required, thus
making the report more useful and informative
32. THANK YOU!!!
PH - EITI Secretariat
Contact Details:
Email
eitiphilippines@gmail.com
alessandra.v.ordenes@gmail.com
abigailocate@gmail.com
babesmancheta@gmail.com
dave.galang@gmail.com
Telephone: 784-4286 local 4939