Annex 2: The EITI Standard[190]
A country intending to implement the EITI is required
to undertake a number of steps before applying to become an EITI
Candidate:
1.1 The Government is required to issue an unequivocal
public statement of its intention to implement the EITI.
1.2 The government is required to appoint a senior
individual to lead on the implementation of the EITI.
1.3 The government is required to commit to work
with civil society and companies, and establish a multi-stakeholder
group to oversee the implementation of the EITI.
1.4 The multi-stakeholder group is required to maintain
a current workplan, fully costed and aligned with the reporting
and Validation deadlines established by the EITI Board.
When the country has completed these steps and wishes
to be recognised as an EITI Candidate, the government should submit
an EITI Candidate Application [link to revised application form]
to the EITI Board.
Implementation requirements
1. The EITI requires effective oversight by
the multi-stakeholder group.
The EITI requires effective multi-stakeholder oversight,
including a functioning multi-stakeholder group that involves
the government, companies, and the full, independent, active and
effective participation of civil society. The key elements of
this requirement include: (1.1) government commitment; (1.2) government
oversight; (1.3) the establishment of a multi-stakeholder group;
and (1.4) an agreed workplan with clear objectives for EITI implementation,
and a timetable that is aligned with the deadlines established
by the EITI Board (1.6-1.8).
2. The EITI requires timely publication of
EITI Reports.
EITI Reports are most useful and relevant when published
regularly and contain timely data. Requirement 2 establishes deadlines
for timely EITI Reporting.
3. The EITI requires EITI Reports that include
contextual information about the extractive industries.
In order for EITI Reports to be comprehensible and
useful to the public, they must be accompanied by publicly available
contextual information about the extractive industries. This information
should include a summary description of the legal framework and
fiscal regime (3.2); together with an overview of: the extractive
industries (3.3); the extractive industries' contribution to the
economy (3.4); production data (3.5); state participation in the
extractive industries (3.6); revenue allocations and the sustainability
of revenues (3.7-3.8), license registers and license allocations
(3.9-3.10); and, any applicable provisions related to beneficial
ownership (3.11) and contracts (3.12). The multi-stakeholder group
should agree on who prepares the contextual information for the
EITI Report (3.1).
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.
An understanding of company payments and government
revenues can inform public debate about the governance of the
extractive industries. The EITI requires a comprehensive reconciliation
of company payments and government revenues from the extractive
industries. Requirement 4 outlines the steps that the multi-stakeholder
group needs to consider in order to ensure that the EITI Report
provides a complete account of these payments and revenues. Section
4.1 sets out the requirements related to the types of payments
and revenues to be covered in the EITI Report. Section 4.2 specifies
which companies and government entities, including state-owned
enterprises, should be required to report.
5. The EITI requires a credible assurance process
applying international standards.
Requirement 5 seeks to ensure a credible EITI reporting
process so that the EITI Report contains reliable data. The EITI
seeks to build on existing audit and assurance systems in government
and industry and to promote adherence to international practice
and standards. The multi-stakeholder group is required to appoint
an Independent Administrator to reconcile the data submitted by
companies and government entities (5.1). Section 5.2 outlines
the issues that the multi-stakeholder group and the Independent
Administrator need to consider in agreeing the terms of reference
for the reconciliation. This includes the assurances that need
to be provided by the reporting entities. Section 5.3 empowers
the Independent Administrator to assess the comprehensiveness
and reliability of the data and to make recommendations for the
future. The EITI Report must be endorsed by the multi-stakeholder
group (5.4).
6. The EITI requires EITI Reports that are
comprehensible, actively promoted, publicly accessible, and contribute
to public debate.
Regular disclosure of natural resource revenue streams
and payments from extractive companies is of little practical
use without public awareness, understanding of what the figures
mean, and public debate about how resource revenues can be used
effectively. Requirement 6 ensures that stakeholders are engaged
in dialogue about natural resource revenue management.
7. The EITI requires that the multi-stakeholder
group takes steps to act on lessons learned and review the outcomes
and impact of EITI implementation.
EITI Reports lead to the fulfilment of the EITI Principles
by contributing to wider public debate. It is also vital that
lessons learnt during implementation are acted upon, that discrepancies
identified in EITI Reports are explained and, if necessary, addressed,
and that EITI implementation is on a stable, sustainable footing.
190 Extractive Industries Transparency Initiative,
'The EITI Requirements' accessed 8 September 2014 Back
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