83538 Building on Progress to Implement the EITI Standard Extractive Industries Transparency Initiative – Multi-Donor Trust Fund (EITI MDTF) GORDON GAHAN / National Geographic Creative Annual Report 2013 EITI MDTF 2013 ANNUAL REPORT 1 EITI MDTF Donors: Australia, Belgium, Canada, Denmark, the European Commission, Finland, France, Germany, Japan, the Netherlands, Norway, Spain, Switzerland, the UK, and the USA Building on Progress to Implement the EITI Standard Extractive Industries Transparency Initiative – Multi-Donor Trust Fund (EITI MDTF) Annual Report 2013 EITI MDTF 2013 ANNUAL REPORT 3 ROBERT MADDEN / National Geographic Creative 4 BUILDING ON PROGRESS TO IMPLEMENT THE EITI STANDARD Contents Message from the Program Manager .................................................... 7 Executive Summary ................................................................................... 8 Introduction – The World Bank and EITI ............................................... 10 Spotlight on Implementation: Nigeria and Liberia .............................. 12 CHAPTER 1 Recipient-Executed Trust Fund Grants .................................................. 14 Spotlight on Implementation: Zambia and Indonesia ......................... 22 CHAPTER 2 Civil Society Capacity Building ................................................................. 26 Spotlight on Implementation: Mongolia and Kazakhstan ................... 30 CHAPTER 3 Contributions to the Global Process, Knowledge and Learning ......... 32 Spotlight on Implementation: Peru and Guatemala .......................... 36 New Challenges Ahead .............................................................................. 37 Annex – Financial and Work Program Tables ....................................... 40 EITI MDTF 2013 ANNUAL REPORT 5 6 BUILDING ON PROGRESS TO IMPLEMENT THE EITI STANDARD FOREWORD Message from the Program Manager: PAULO DE SA A new EITI Standard raises the bar for implementation The adoption of the EITI Standard at the 6th EITI Global Conference in Sydney in May 2013 was a defining moment for the Initiative and global efforts to improve governance in the extractives sector more broadly. The new Standard sets clearer rules for reporting which will result in more accessible reports containing more relevant and reliable information. Greater clarity and precision enables more focused action, and sets the stage for more meaningful reform. This new EITI Standard poses new challenges for implementing countries, as well as for the EITI Multi-Donor Trust Fund, which supports the countries undertaking that EITI implementation. A new EITI Standard implies a new way of doing business. Looking forward, I believe we will have to move to a systematic automatized production of the countries’ EITI annual reports based on standardized reports. We will have to mobilize and align EITI data and information systems so that they can interact directly with analogous country systems. Reports need to be completed as the payments are made, not a year later as has been the case. This will not be easy. It will require additional technical assistance and financing on several fronts. It also means demand for a quickened pace of delivery, but without sacrificing rigor or accuracy. If our information-gathering and presentation are changing so too must our auditing procedure. The EITI Standard raises the bar for expectations of countries, and also for the Multi-Donor Trust Fund. Indeed, its purpose is to make the process more exacting so as to meet the expectations of the global community and, most important, the citizens of resource-rich countries, especially those still struggling to reduce high levels of poverty. Can we do it? The EITI enterprise never would have made the progress it has without the optimism that has characterized it since its inception. Both the EITI and the compliant countries have, over the past decade, delivered solid results that inspire confidence. Nigeria, the first African government to decide, in 2003, to implement EITI, became compliant in 2011, and at the Global EITI Conference in Sydney in May 2013, it was recognized for going beyond the EITI minimum standard and for making the EITI relevant and influencing policy in the country. This reflects the rigor of Nigeria EITI’s (NEITI) audit reports, its assertive effort to publicize them, and a complementary campaign to inform the debate over a new Petroleum Industry Bill currently before Nigeria’s National Assembly. NEITI’s audit report covering the period 1999-2008 identified a loss of $2.6 billion in revenues to government due to “leakages” in the system, and a failure by oil companies to pay $9.9 billion in royalties. The latter finding has enabled Nigeria, which undertook an audit as a result, to recover $2.4 billion to date. Transparency, accountability and sound governance of valuable resources do not fall from the sky. Achieving and sustaining them is, by its nature, a constant work-in-progress. Every victory is rewarded with a tougher challenge. Our challenge now is to develop strategies and plans that will meet the test of bringing all the EITI countries, including the 25 that are compliant and the 16 candidates—as well as new ones—into this new more rigorous world. It will be a more demanding world, but also a better one. We hope you will enjoy reading this first Annual Report of the EITI MDTF. With this new product, we attempt to summarize the support given to EITI implementing countries over the last eight fiscal years, and will provide annual updates in future years. Paulo de Sa Sector Manager World Bank Sustainable Energy—Oil, Gas and Mining Unit EITI MDTF 2013 ANNUAL REPORT 7 EXECUTIVE SUMMARY “Natural resources are neither a curse nor a blessing. They are simply a source of opportunity. They can be used for tremendous good or they can be wasted.” Kofi Annan, Chair of the Africa Progress Panel, UN Security Council, June 2013. “It is worth taking a step back and recognizing how far we have come. Transparency around these vast revenue flows is becoming a global norm.” Jonas Moberg, Head of the EITI International Secretariat T he Extractive Industries Transparency Initiative (EITI) is a global coalition of governments, companies and civil society working together to improve accountability in the management of revenues The EITI Standard is overseen by the EITI Board, with support from the International Secretariat based in Oslo, Norway. The Secretariat works with partners to provide financial and technical support for from natural resources. Natural resources, such as oil, gas, metals EITI implementation. and minerals are usually the property of the State and therefore when they are developed citizens have a right to know how those The EITI Board is made up of members from governments, resources benefit them. Extraction of these resources creates companies and civil society and has an independent Chair. The opportunity for economic growth and social development, but if EITI Board has responsibility for the overall development, strategic poorly managed it can lead to corruption and even conflict. More direction and credibility of EITI, as well as for outreach and openness around how a country manages its natural resource advocacy, and is responsible for the validation process of the EITI wealth is necessary to ensure that these resources benefit all implementing countries. citizens. Given that the EITI Standard sets a high bar in terms of In an effort to create an international, credible vehicle for advancing transparency requirements, implementing countries often need transparency in the extractives industry, the EITI created the EITI assistance in their efforts to meet it. For this reason the EITI-Multi- Standard. The EITI Standard is implemented by countries to ensure Donor Trust Fund (EITI-MDTF) was established in 2004 to provide full disclosure of taxes and other payments made by oil, gas and financial support to countries in their efforts to implement the EITI mining companies to governments. Each participating country Principles. The EITI-MDTF is administered by the World Bank and discloses these payments in an annual EITI Report that allows governed by the Management Committee, which consists of one citizens to see for themselves how much revenue their government representative of each donor country and one representative of is receiving from their country’s natural resources. The annual the World Bank. The Management Committee donor countries are: report is one of many requirements that countries need to meet in Australia, Belgium, Canada, Denmark, the European Commission, order to be recognized as first an EITI candidate, and ultimately an Finland, France, Germany, Japan, the Netherlands, Norway, Spain, EITI compliant country. Switzerland, the United Kingdom and the United States of America. The Management Committee is responsible for reviewing and The transparency achieved through revenue reporting aims to approving the overall work program for use of the EITI-MDTF funds. ultimately lead to accountability, but this can only be done if there is understanding of what the figures mean and public debate about While the EITI and the EITI-MDTF have a common objective, they how the country’s resource wealth should be managed. Therefore, also recognize their different roles and mandates, in addition to the EITI Standard requires that EITI Reports are understandable, being two separate legal entities with different management and actively communicated to stakeholders, and contribute to public administrative contexts. The International Secretariat is governed debate. by the EITI Board which focuses on the promotion and validation of EITI Principles. On the other hand, the EITI-MDTF managed 8 BUILDING ON PROGRESS TO IMPLEMENT THE EITI STANDARD by the World Bank and governed by the Management Committee the EITI—international, state-owned as well as extractive and which focuses on (a) the donor countries strategic goals regarding non-extractive companies. Over 90 institutional investors with governance and transparency with respect to extractive industries, total assets of more than US$19 trillion support the EITI. Of the 41 and (b) the World Bank’s position with respect to its country EITI countries, 25 countries are now compliant. Through the EITI, assistance strategies, its general responsibility to its member resource-rich countries have increased their understanding of their countries, and its financial responsibility as Administrator of the fiscal position and thus gained a clearer picture of the risks to their EITI-MDTF. fiscal prospects. This can help attract investment. Governments can use EITI implementation to demonstrate to their own people the The World Bank Group provides technical and financial assistance to benefits from large and sometimes controversial extractive industry developing countries implementing the EITI across five continents. projects; to improve credit-worthiness; and to achieve a recognized The International Finance Corporation (IFC) increasingly uses EITI stamp of approval for good governance. implementation as an indicator for commitment to governance improvements in countries where it is considering investments, and Thus, it is important that governments uphold the leadership of and it makes EITI implementation an important part of its investment the commitment to EITI, which has provided tangible governance decision in the natural resources sectors of fragile and conflict- improvements in resource-rich conflict-affected countries. affected states. In May 2013, at the 6th EITI Global Conference in Sydney, the EITI The World Bank administers the MDTF and supports EITI took a major new step when the new EITI Standard was approved. implementing countries by: The new challenge for all implementing countries, as well as for the International Secretariat and the World Bank and the Multi-Donor • Providing technical assistance and grants to implementing Trust Fund, is to make sure that the implementation of the new countries; Standard is successful. • Supporting civil society actors to engage effectively in the EITI process; and To be “EITI compliant,” countries must complete a rigorous, independent assessment of their reporting practices. Every • Contributing to global knowledge and sharing international best EITI implementing country has a validation deadline. Candidate practice. countries must undertake a validation after two and a half years. If Joining the EITI sends a clear signal to all stakeholders about the EITI Board concludes that all requirements have been met, the the commitment to transparency. It sets a global standard country is designated EITI compliant. The compliant countries are perceived to tangibly reduce investor risks; provides a systematic revalidated every three years. Under the EITI Standard, this process framework for collaboration between government, industry, and is managed by the EITI Secretariat. Countries may be suspended civil society stakeholders; assembles revenue information/industry or delisted if deadlines are not met or if meaningful progress is not financial flows in one place; and offers a platform for discussing made. The maximum candidacy period after which a country will be broader sector governance reforms and better public financial delisted if it has not achieved compliance is five years. Compliance, management—beyond EITI. and the penalties for non-compliance, are determined on the same basis as before; the requirements are considered either to have As of November 2013, there were 41 EITI implementing countries, been met, unmet but with meaningful progress, or unmet. including the recently approved candidate applications from the Philippines and Honduras. In addition, over 80 companies support EITI MDTF 2013 ANNUAL REPORT 9 INTRODUCTION The World Bank, EITI, and Donor Partners The MDTF is both part of the World Bank’s response to its own Extractive Industries Review in 2002 and one of the many tools identified in the Bank’s Governance and Anti-Corruption Strategy. The Bank and other Multilateral Development Banks have committed to supporting the EITI as a global initiative and a key element of their strategies for governance and extractive industry sector reforms. To finance the EITI Implementation at the country level, a multi- Department, which is part of the World Bank Group’s Sustainable donor trust fund (MDTF) was created within the World Bank Development Network. All donors contributing at least US$500,000 in 2004 with an initial contribution from the United Kingdom’s to the MDTF are invited to participate as members of the Department for International Development (DFID). As of 2013, Management Committee (MC), the governing body of the MDTF. the MDTF has grown to 15 donor partners and over $65 million in They are: Australia, Belgium, Canada, Denmark, European Union, contributions. Finland, France, Germany, Japan, the Netherlands, Norway, Spain, Switzerland, United Kingdom, and the United States. In the Bank, the Multi-Donor Trust Fund is managed by the Oil, Gas, and Mining Unit (SEGOM), housed in the Sustainable Energy As with other Multi-Donor Trust Funds managed by the World Bank, TABLE 1: EITI MDTF ANNUAL FUNDING (IN US$’000) (WORLD BANK FY JULY 1-JUNE 30) Total Receipts FY05- % of $ Country FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY14 Total Pledges Australia 205 432 561 3,137 2,072 4,200 3,555 14,162 22% Belgium 707 689 1,395 2% Canada 661 99 81 1,497 102 10,079 12,520 19% Denmark 458 458 1% EC 511 280 246 459 1,496 2% Finland 419 643 1,062 2% France 500 300 450 357 1,607 2% Germany 430 212 192 515 349 330 322 330 2,679 4% Japan 150 150 300 0% Netherlands 500 500 500 1,500 2% Norway 235 838 142 177 336 1,728 3% Spain 2,160 1,434 1,332 4,925 8% Switzerland 1,000 500 1,500 2% UK 4,374 2,115 60 150 6,699 10% USA 5,976 4,500 13,476 3,000 21% Total 4,609 930 4,820 3,909 2,355 11,947 11,144 14,237 7,522 3,885 65,507 100% World Bank WB/IFC 514 692 1,186 839 1,151 761 1,012 729 465 12 7,360 DGF 105 499 500 1,104 Total WB 619 1,191 1,686 839 1,151 761 1,012 729 199 8,452 10 BUILDING ON PROGRESS TO IMPLEMENT THE EITI STANDARD donor partners pool their interest in a particular sector, in this case At the global level, the MDTF supports and promotes the global EITI the extractive industries, and neutralize perceptions of commercial movement through communication and dissemination of knowledge conflicts of interest through collective action with other donors. and good practice and collaboration on training at all levels. Contribution to the EITI MDTF allows the donor partners to benefit from the World Bank’s strict fiduciary management of funds, as well as the global knowledge and presence of World Bank teams in EITI BOX 1: Bilateral Funding of EITI Activities which implementing countries. The World Bank can help to consolidate Complement and Reinforce EITI MDTF lessons from its own teams as well as donors, and facilitate South- Technical Assistance South learning through its neutral convening power. The EITI MDTF is a major—but not exclusive—source of The MDTF is a separate fiduciary instrument between donors and technical assistance funding for EITI-implementing coun- tries. Many bilateral donors independently provide funds and the World Bank. It is not a part of the EITI Board or Secretariat as support to implementing countries. For example, in Peru, such, but coordinates its work with both of them to support the the government of Germany provided a staff member on goals of the EITI and further shared goals. Indeed, separation of the secondment to work from the World Bank office in Lima for funding mechanism (the EITI MDTF) from the regulatory mechanism two years. The staff member worked closely with the govern- (the International Secretariat) is important for the credibility and ment of Peru on EITI implementation. In addition, when the functioning of both groups. Government of Peru faced funding shortages and was hard pressed to pay for the validation firm as required at the time The World Bank team in SEGOM works closely with country (under the new EITI Standard, the Validation process will management units and donor partners to support governments be managed by the International Secretariat instead of the on EITI issues as part of broader Bank-supported programs on countries), the Government of Switzerland stepped up and extractive industries reform, natural resource management, and provided the needed funding on a bilateral basis. There are good governance/anti-corruption. The Bank also provides financial many other such examples in other countries. support from its own funds to a number of civil society groups (CSOs) involved in the EITI implementation process. THOMAS J. ABERCROMBIE / National Geographic EITI MDTF 2013 ANNUAL REPORT 11 Spotlight on EITI Implementation Nigeria campaign to inform the debate over a new Petroleum Industry Bill currently before Nigeria’s National Assembly. In September Nigeria, Africa’s leading oil producer and one of the world’s top 2012, NEITI convened a National Stakeholders Forum on the ten oil producers, has struggled with corruption for many years. PIB, at which companies, investors, legislators, government, civil Transparency International’s 2012 Corruption Perceptions Index society organizations, and the public discussed the content and gave Nigeria 27 points out of a maximum potential 100 on public issues surrounding the proposed Bill. This consultation resulted in sector corruption, which indicates “a serious corruption problem,” a memorandum which NEITI presented to the National Assembly in TI’s judgment, and a “need to be more transparent, with public in March 2013, proposing a wide range of modifications reflecting officials more accountable.” Nigeria’s corruption perception score international experience and earlier NEITI findings. placed it 139th among the 176 countries assessed. These findings are in NEITI’s audit report covering the period 1999– “There is always corruption, every day,” adds Javier Aguilar, Senior 2008, which identified a loss of $2.6 billion due to “leakages” in the Operations Officer in SEGOM. “On the other hand, there is a depth system, as well as a failure by the oil companies to pay $9.9 billion of information now available that has not been available before to in royalties; the finding enabled the Federation to recover $2.4 ordinary Nigerians, detailed information that they have never seen billion to date. To place this in context, $9.9 billion is enough to before. So you can talk about ‘before EITI’ and ‘after EITI,’ and in cancel Nigeria’s federal government budget deficit for 2012. terms of transparency, this is quite an impressive story.” In an address at the September 2012 consultation in Lagos, NEITI’s A key element in Nigeria’s effort against corruption began with Board Chairman Ledum Mitee outlined the challenge on the PIB: “It its federal government’s decision in 2003 to implement EITI, the is my hope,” he said, “that together we would be able to come out first African country to do so. This was followed in 2004 with with concrete suggestions that would enrich the PIB with a view to a Multi-Stakeholder Group whose recommendations led to the fashioning it into a comprehensive and reliable legislation that can establishment in 2007 of Nigeria EITI, a permanent body to manage complement the NEITI Act both in principles and practice which implementation of EITI requirements. In early 2011, Nigeria became would in turn lead to improved revenues for government, halt EITI compliant, and at the Sixth Global EITI Conference in Sydney, oil theft, and check degradation of the environment in the host Nigeria received the Chair Award for going beyond the minimum communities through stringent and enforceable legal provisions.” standard and for making the EITI relevant and influencing policy in the country. This recognition reflects the rigor of NEITI’s audit Mitee’s optimism is supported by NEITI’s record of accomplishment reports, its assertive effort to publicize them, and a complementary since 2007, which resulted in Nigeria: • Being the first country to adopt an EITI law, the NEITI Act; • Being one of the first countries to commission a detailed communications strategy for the EITI process; • Publishing disaggregated data, which many other EITI countries have failed to do; • Conducting physical audits; and • Conducting audits of downstream petroleum product price subsidies. In May 2013, a World Bank delegation visited Nigeria to finalize a Multi Donor Trust Fund two-year grant project to support the NEITI Secretariat in improving the annual EITI reconciliation and reporting process. The project will finance development of an automated data transfer mechanism, assistance for implementing remediation steps arising from the findings of the previous audits, and capacity building of Nigerian accountants and others. 12 BUILDING ON PROGRESS TO IMPLEMENT THE EITI STANDARD Liberia As the first African country to be designated EITI Compliant in 2009, Liberia, with the help of EITI and the World Bank’s Multi-Donor Trust Fund (MDTF), has become the fastest implementer of EITI, voluntarily establishing a mineral resources law that goes beyond the EITI requirements to manage resources sustainably. The country received the EITI Chair Award in 2009, based on Liberia’s rapid progress and trend-setting performance. “EITI has been a most important contribution to the concept of transparency in Liberia,” says Daniele La Porta, Mining Specialist in SEGOM. “There are new laws that are part of the system; it’s become internalized. And from where Liberia started, it has advanced tremendously. EITI has become a seal of approval and it encourages investments in the country.” According to the 2013 EITI Progress Report, Liberia has continued to expand its EITI beyond core reconciliation of payments and revenues, bringing further transparency to key sectors of the by the oil sector from which revenues grew fivefold, reaching 42 economy in order to manage the resources sustainably. This makes percent of total revenue. An innovation in implementation is the EITI even more relevant to the country. inclusion of “what ought to be paid” audits. This first audit attempt could only be completed partially, as production information was EITI is incorporated into the national plan to develop the mining not available for most of the resources. The limited audit in the sector. The initiative now also includes the forestry sector and it has forestry sector found significant discrepancies between amounts reached out to help EITI implementation in neighboring Sierra Leone. paid and amounts due. The rating for Liberia in Revenue Watch’s Resource Governance Index is number 16—with Ghana at 15 and Zambia at 16 as the three top Another innovation in the 2010/11 LEITI report was the inclusion African countries. (Nigeria is ranked number 40). of in-kind contributions. Eleven companies estimated their contributions to communities in the form of roads and schools Liberia is rich in natural resources, diamonds, gold, iron ore, timber construction, water and sanitation, education, etc., totaling US$13 and rubber. During a 14-year-long civil war that ended in 2003, all million on top of the collected taxes. major mines were closed and the mineral sector’s contribution to the economy was reduced to almost nothing. LEITI’s first “Post Award Process” audit, which looked at 68 contracts awarded by the Ministry of Agriculture, NOCAL, the The civil wars in Liberia were fueled by “blood diamonds.” Forestry Development Authority and the Ministry of Land, Mines Control over natural resources often plays an important role in and Energy between July 2009 and December 2011, found that armed conflicts, and EITI has proven useful in reducing the risk around 10 percent of the contracts were awarded in compliance of post-conflict countries’ relapsing into conflict. In this way, EITI with all applicable norms. The rest were either partially compliant contributes to wider peace and reconciliation processes in post- (37 percent), or did not follow a significant number of applicable conflict countries. regulations, including lack of competitive bidding or incomplete Liberia’s fourth EITI (LEITI) Report was published in May 2013. The documentation (53 percent). An estimated US$8 billion worth of country’s fiscal income from the extractives industries jumped 70 contracts signed by Liberia since 2009 were found to have violated percent in 2011, as Liberia received US$117.5 million in the fiscal the country’s laws, prompting civil society organizations such as year 2010/11. All sectors, except forestry, contributed more to the Global Witness and Publish What You Pay to request new audits, a national treasury than previously. Most of this increase was driven public hearing, and an investigation. EITI MDTF 2013 ANNUAL REPORT 13 CHAPTER 1 RECIPIENT-EXECUTED TRUST FUND GRANTS EITI is a global standard—but implemented nationally. Through • Setup and operating costs of MSGs; the MDTF, the World Bank Group has provided technical and • Stakeholder capacity building; financial assistance to countries implementing or considering implementing the EITI. The support has also included making EITI • Communications on EITI throughout the country; advisers and consultants available to governments to assist them in • Analysis of legal obstacles to successful EITI implementation; and implementation; sharing international best practices; and providing • Audit firm to prepare the reconciliation report. grants to governments to help fund EITI implementation activities. World Bank task team leaders provide technical assistance on The MDTF grant process begins when a government expresses the ground (with personnel and experts); supervise MDTF grants interest in implementing EITI, either directly to the World Bank, executed by the recipient government; maintain close liaison to bilateral donors or through the EITI International Secretariat. with the International Secretariat in Oslo and with donors on the Before being declared a candidate, the country may receive a progress of EITI implementation; and coordinate bilateral support small amount of support from the MDTF, to prepare its candidacy from donors, especially staff based in country offices. In addition, application. After obtaining candidate status, a country may the MDTF team works in close liaison with non-governmental prepare a request for a Recipient-Executed Trust Fund (RETF) organizations (NGOs) and civil society organizations (CSOs), grant and negotiate the activities and terms of the grant. The extractive companies, and the government, with financing for government prepares a proposal for the grant, including the specific capacity building for NGOs/CSOs as well as governments and amount desired, activities to be financed, and duration of the work companies through the Multi Stakeholder Group (MSG). plan developed under the candidacy process. After approval of the MDTF Work Plan by the Management Committee, the World Since FY08, SEGOM has delivered or is processing 82 grants to 37 Bank and the government sign a Grant Agreement detailing the EITI implementing countries: 17 have received or will receive one conditions of the grant to the government. grant so far; 19 have received or will soon receive a second grant; and 9 of these countries have received or will receive a third EITI At the country level, the MDTF helps to build consensus for EITI, grant (for post-compliance support). at the start as well as during implementation; establish multi- stakeholder structures to design and manage the EITI on the In six years since FY08, the EITI has evolved from 21 implementing ground; and ensure that the country will achieve EITI Compliance. countries (and 0 compliant countries) to 41 implementing countries At the country level, the RETF grants finance: (and 25 compliant countries) in FY13 with MDTF support. • Setup and operating costs of National EITI Secretariat; FIGURE 1: CANDIDATE AND COMPLIANCE 45 40 35 30 Candidate 25 Compliant 20 15 10 5 0 FY08 FY09 FY10 FY11 FY12 FY13 14 BUILDING ON PROGRESS TO IMPLEMENT THE EITI STANDARD “It is only through transparency of the production of oil, gas and mining across the world that we can limit corruption, make sure that the sector is well governed, and that the income from it leads to development.” EITI Chair, Clare Short, 5/22/13 THOMAS J. ABERCROMBIE / National Geographic Creative EITI MDTF 2013 ANNUAL REPORT 15 TABLE 2: COUNTRY-LEVEL SUPPORT FOR EXTRACTIVE SECTORS CSO Support Pre- MDTF MDTF (RWI/ Candidate Compliant MSG Candidacy Grant to Grant Post- PWYP/ WB TA # of Country IDA? Status FY FY Support Support Validation Compliance Direct) Project Grants AFRICA Burkina Fasco Yes Compliant FY09 FY13 Yes Yes Yes Yes Yes 2 Cameroon Yes Compliant FY08 Yes Yes Yes Yes 2 Central African Yes Compliant FY09 FY11 Yes Yes Yes Yes 2 Republic Chad Yes Candidate FY10 Yes Yes 1 Congo, Democratic Yes Candidate FY08 Yes Yes Yes Yes 2 Republic of Congo, Republic of Yes Compliant FY08 FY13 Yes Yes Pending Yes 1 Côte d’Ivoire Yes Compliant FY08 FY13 Yes Yes Yes 2 Equatorial Guinea No Pre- Yes Yes 0 Candidate Ethiopia Yes Pre- Yes 1 Candidate Gabon—Delisted No Delisted FY08 Yes Yes 0 Ghana Yes Compliant FY08 FY11 Yes Yes Yes Yes Yes 3 Guinea Yes Candidate FY08 Yes Yes Yes 2 Liberia Yes Compliant FY08 FY10 Yes Yes Yes Yes 3 Madagascar Yes Candidate FY08 Yes Yes Yes 2 Mali Yes Compliant FY08 FY12 Yes Yes Yes 2 Mauritania Yes Compliant FY08 FY12 Yes Yes Yes Yes 3 Mozambique Yes Compliant FY09 FY13 Yes Yes Yes Yes Yes 3 Niger Yes Compliant FY08 FY11 Yes Yes Yes Yes 3 Nigeria Yes Compliant FY08 FY11 Yes Yes Yes Yes 3 São Tomé e Principe Yes Candidate FY13 Yes Yes 2 Senegal Yes Candidate Yes 1 Sierra Leone Yes Candidate FY08 Yes Yes Yes Yes 2 South Sudan Yes Pre- Yes 0 Candidate Tanzania Yes Compliant FY09 FY13 Yes Yes Pending Yes Yes 2 Togo Yes Compliant FY11 FY13 Yes Yes Yes 2 Zambia Yes Compliant FY09 FY13 Yes Yes Yes Yes 2 EAST ASIA AND PACIFIC Indonesia No Candidate FY11 Yes Yes Yes 2 Mongolia Yes Compliant FY08 FY11 Yes Yes Yes Yes Yes 3 Myanmar Yes Pre- Yes Pending 1 Candidate Papua New Guinea Yes Pre- Yes Pending Yes 1 Candidate Philippines No Candidate FY13 Yes Pending Yes 1 Solomon Islands Yes Candidate FY12 Yes Pending Yes 1 Timor-Leste Yes Compliant FY08 FY11 Yes Yes Pending 2 EUROPE AND CENTRAL ASIA Albania No Compliant FY09 FY13 Yes Yes Yes 3 Azerbaijan No Compliant FY08 FY09 Yes Yes 0 Kazakhstan No Compliant FY08 Yes Yes Yes 1 Kyrgyz Republic Yes Compliant FY08 FY11 Yes Yes Yes Yes 3 16 BUILDING ON PROGRESS TO IMPLEMENT THE EITI STANDARD CSO Support Pre- MDTF MDTF (RWI/ Candidate Compliant MSG Candidacy Grant to Grant Post- PWYP/ WB TA # of Country IDA? Status FY FY Support Support Validation Compliance Direct) Project Grants EUROPE AND CENTRAL ASIA Tajikistan Yes Candidate FY13 Yes Pending 1 Ukraine No Candidate Yes Pending Yes 1 LATIN AMERICA AND CARIBBEAN Colombia No Pre- Yes Pending 1 Candidate Dominican Republic No Pre- Yes Pending 1 Candidate Guatemala No Candidate FY11 Yes Yes Yes 2 Guyana Yes Pre- Yes Pending 1 Candidate Honduras Yes Candidate FY13 Yes Pending 1 Peru No Compliant FY08 FY12 Yes Yes Yes Yes 2 Trinidad & Tobago No Candidate FY11 Yes Yes Yes 2 MIDDLE EAST AND NORTH AFRICA Iraq No Compliant FY10 FY13 Yes Yes 1 Tunisia No Pre- Yes 0 Candidate Yemen Yes Compliant FY08 FY11 Yes Yes Yes 1 SOUTH ASIA Afghanistan Yes Candidate FY10 Yes Yes Yes Yes 2 OECD COUNTRIES Australia (Pilot) N/A Pre- N/A N/A N/A N/A N/A 0 Candidate France N/A Pre- N/A N/A N/A N/A N/A 0 Candidate Germany N/A Pre- N/A N/A N/A N/A N/A 0 Candidate Italy N/A Pre- N/A N/A N/A N/A N/A 0 Candidate Norway N/A Compliant FY09 FY11 N/A N/A N/A N/A N/A 0 UK N/A Pre- N/A N/A N/A N/A N/A 0 Candidate USA N/A Pre- N/A N/A N/A N/A N/A 0 Candidate BOX 2: EITI MDTF World Bank Staffing The number of World Bank personnel and consultants dedicated to EITI MDTF management and support to EITI implementing countries has grown significantly, and will continue to do so. In FY06, the first year of operations for the EITI MDTF, there were seven staff and three consultants involved in country-level work to assist governments in EITI implementation and manage Recipient-executed Trust Fund Grants. For non-country support (administration and management), there were five staff and one consultant, for a total of 17 staff servicing 15 countries. In FY13, the figure for country-level support as grown to 29 staff and 27 consultants, and four staff and three consultants for administration and management, for a total of 63 staff covering 64 countries. EITI MDTF 2013 ANNUAL REPORT 17 Emerging results from EITI and EITI country portfolio BOX 3: The EITI MDTF Globally, EITI continues its strong momentum and has become the The EITI Implementation Support Facility is funded by a multi-do- established standard for transparency in the oil, gas and mining nor trust fund (MDTF) that is supported by 15 donors. All donors sectors. There are now 41 EITI implementing countries, with two- contributing at least US$500,000 to the MDTF/Facility are invited thirds (25) of these countries now EITI compliant. Importantly, to participate as members of the Management Committee (MC), EITI was a priority topic in the recent G8 agenda and more OECD the governing body of the MDTF/Facility. countries have announced their intent to implement EITI—from The MDTF/Facility provides technical assistance and grant fund- Norway initially (EITI compliant) to USA and Australia (moving ing to governments to implement the EITI principles, as well as towards EITI candidacy ) and now Canada, France, Italy, Germany global knowledge and learning support. Governments begin the and UK (announcements at recent G8 meeting on their intent process by expressing interest in implementing EITI, either to the to look into EITI implementation or adopt mandatory reporting World Bank directly, or through the International Secretariat or initiatives). The growth in EITI-implementing countries is also a bilateral donors. Before being declared Candidate, the country reflection of the positive results emerging in these EITI countries, in may receive a nominal amount of support from the MDTF, which particular that: (i) information on oil, gas and mining revenues and will fund a team of World Bank and other experts to work with other sector information is being disclosed to the public in detail, the government to prepare its candidacy application. After ob- taining Candidate status, a country may prepare a request for an and generating debate; and (ii) in-country dialogue and civil society MDTF grant and negotiate the activities and terms of the grant. engagement in EITI is increasing as a result, helping to cement trust The government prepares a proposal for the grant, including the between different stakeholders. specific amount desired, activities to be financed, duration, etc. of the work plan developed under the candidacy process. After Africa Region (AFR). The MDTF has been a valuable source of approval of the MDTF/Facility Work Plan by the Management financing for countries. Since inception, cumulative EITI MDTF Committee, the World Bank prepares a Grant Agreement detail- allocations for technical assistance and grants to EITI countries and ing the conditions of the grant to the government. civil society in Africa now total just over $24.0 million (data as of At the country level, the MDTF helps to build consensus for EITI, June 30, 2013). at the beginning and during implementation; establish multi- stakeholder structures to design and manage the EITI on the AFR currently has 22 EITI-implementing countries, of which 15 ground; and ensure that the EITI process will lead the country to are now EITI Compliant, and the remainder in initial stages of EITI achieve “Compliant” status. implementation. The World Bank task team leaders provide technical assistance Beyond these countries there is a pipeline of countries in AFR that from experts and personnel on the ground in World Bank offices are in various stages of dialogue, internally among government in some countries; financing, mostly through the MDTF (executed and stakeholders and with WB on adopting EITI. These include, by the recipient government); close liaison with the International in particular, Ethiopia, Malawi, Seychelles, South Sudan and Secretariat in Oslo and with donors on progress in EITI implemen- tation; coordination of bilateral support from donors, especially Uganda (active in working towards EITI candidate status), while staff based in country offices; and close liaison and training with other countries which include Rwanda and South Africa have had NGOs/CSOs, extractive companies, and the government on the intermittent dialogue on EITI. In Zimbabwe, the SEGOM team EITI process, with financing for capacity building for NGOs/CSOs has worked closely with the country team to design and support as well as governments and companies through the MSG. a domestic process of revenue transparency and stakeholder The EITI MDTF finances the following activities at the country participation, as a prelude to moving to the full EITI process. level: setup and operating costs of National EITI Secretariat; setup and operating costs of MSGs; stakeholder capacity building; The momentum outlined above has needed an extensive on-the- communications on EITI throughout the country; analysis of legal ground effort by SEGOM including (i) building a network of county obstacles to successful EITI implementation; and audit firm to office-based capacity to work closely with respective country units; prepare the reconciliation report (exceptional cases: validation if and (ii) ensuring close coordination with AfDB and bilateral donors/ agreed with Oslo). embassies (especially Australia, Canada, the Germany, Norway, and At the global level, MDTF-financed activities support and promote the UK). This decentralized technical assistance effort is especially the global EITI movement through communication and dissemi- important to SEGOM’s work on direct support to civil society in nation of knowledge and good practice and collaboration on AFR, where SEGOM has designed and manages capacity building training at all levels. and networking programs with civil society, as an integral part of EITI MDTF work plans. 18 BUILDING ON PROGRESS TO IMPLEMENT THE EITI STANDARD East Asia and Pacific Region (EAP). Cumulative EITI MDTF Azerbaijan, Albania, Kazakhstan, and Kyrgyz Republic are now EITI- allocations for technical assistance and grants to EITI countries and compliant, having successfully completed the external validation for civil society in EAP now total around US$6.8. million (data as of their EITI process. In these countries, SEGOM’s technical assistance June 30, 2013). work, and EITI MDTF support is now focused on consolidating EITI and supporting their “beyond EITI” agenda and scaled-up steps for Timor-Leste and Mongolia continue to advance on their EITI- good governance in the mining sector. In addition, capacity building compliant status, seeking to improve disclosures and public debate, support to civil society is being delivered in a number of ECA and link EITI to wider sector reforms. For these countries, SEGOM’s countries, funded by the EITI MDTF. technical assistance work, and EITI MDTF support is now focused on this very agenda. Beyond this, direct support to civil society in Mongolia has also been designed (also funded by the EITI MDTF) FIGURE 2: ALLOCATIONS and as an integral part of the TA and capacity building effort. 1% Among EITI candidate countries, Indonesia is progressing with its 7% EITI implementation having issued its first EITI Report which broke 5% new ground in information about oil gas and mining (such as oil sector monetization of in-kind oil volumes), while Philippines and 6% Solomon IslandsGoo became EITI candidate countries during the FY. n Africa This is an important development for these countries and proactive n East Asia TA effort and EITI MDTF grant funding is underway. n Europe and Central Asia 12% n Latin America 68% Beyond that, dialogue and preparatory work continue in Papua n Middle East and N. Africa New Guinea and, recently, in Myanmar who have sought n South Asia international support in this area. Europe and Central Asia Region (ECA). Cumulative EITI MDTF allocations for technical assistance and grants to EITI countries and civil society in ECA now total just over US$3.0 million (data as of June 30, 2013). TABLE 3: ANNUAL DISBURSEMENTS OF EITI MDTF FUNDS BY REGION % of Total Total Activities Allocation FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY05-14 Grants Balance Country-Level Grants—Actual and Planned Africa 17,260 250 1,648 652 152 1,043 1,545 2,411 1,055 174 8,930 68% 8,330 East Asia 5,175 0 50 126 134 210 158 436 393 62 1,570 12% 3,605 Europe and 1,715 0 0 0 40 118 250 169 197 22 796 6% 919 Central Asia Latin America 3,612 0 0 60 0 238 39 0 370 0 708 5% 2,904 Middle East 1,990 0 0 0 0 115 192 211 388 51 956 7% 1,034 and N. Africa South Asia 575 0 0 0 0 0 0 30 93 65 189 1% 386 Total Country- 30,327 0 250 1,698 838 325 1,724 2,184 3,257 2,496 374 13,148 100% 17,179 Level Grants Technical 16,264 436 482 860 1,246 1,459 1,780 2,545 2,262 229 11,300 4,964 Assistance by Bank Global Knowledge, 8,459 295 807 248 306 507 173 1,097 887 900 102 5,323 3,136 Support to CSOs and Learning Fiduciary 1,402 118 183 362 304 347 59 1,375 27 Total EITI Disbursements 56,452 295 1,493 2,428 2,004 2,197 3,539 5,423 6,993 6,005 764 31,145 25,307 EITI MDTF 2013 ANNUAL REPORT 19 Middle East and North Africa Region (MNA). Cumulative EITI MDTF allocations for technical assistance and grants to EITI BOX 4: EITI MDTF Sources and Uses of Funds countries and civil society in MNA now total around US$2.8 million As of June 30, 2013, a total of US$67.5 million has been pledged (data as of June 30, 2013). to the EITI Trust Fund Facility by 15 donors (US$65.5 million received). Annual disbursements from the Multi-Donor Trust Fund MNA currently has two EITI-implementing countries, Iraq and Facility (MDTF/Facility) have increased steadily since FY06. Yemen, both EITI Compliant. Iraq, in particular has made good The MDTF/Facility work program for FY2014-16 calls for a total progress in its EITI implementation processes, having set up a well- budget of US$67.8 million, which includes: functioning national EITI structures (including good engagement • US$33.9 million actual disbursements (US$27.4 million from with civil society and with industry) and has achieved a high active or closed support to recipients; and US$6.5 million standard of disclosure of audited oil revenue information. More for knowledge, learning, CSO support, and fiduciary). recently, the emphasis has been on integrating representatives from the Kurdish Region (KRG) into the EITI process, as well as finalizing • US$33.8 million commitments (US$14.0 million in grants being processed or planned; US$8.2 million in technical reconciliation of oil exports for subsequent EITI Reports, with the assistance by the World Bank; and US$11.7 million for close support of SEGOM and the WB Baghdad office and other knowledge, learning, CSO support, and fiduciary). partners. In addition, from inception through June 2013, the World Bank More broadly in the Region, SEGOM’s EITI outreach work in MNA Group has disbursed US$7.4 million through its own internal will remain a priority in the context of SEGOM’s broader work on budget processes and US$1.1 million through the Development oil, gas and mining, working closely with MNA country teams and Grant Facility (DGF), which is now closed to new grants. with other partners (e.g. in Tunisia). Globally, EITI has demonstrated its value as an effective instrument of promoting transparency and participation via multi-stakeholder engagement, and these features may offer potential lessons for wider goals of advancing openness in the Region. Tajikistan is also now an EITI candidate country. Both receive technical assistance support including via an Astana-based South Asia Region (SAR). Afghanistan currently remains the sole SEGOM staff member (EITI support in ECA relies extensively on EITI candidate country in SAR and has been actively working on EITI decentralized, country-based staff and consultant capacity and close implementation including (i) issuing the first EITI Report, disclosing liaison with the country teams). mining revenues and payments; and (ii) building a well-functioning Elsewhere in the region, Ukraine is now an EITI candidate, while national EITI Secretariat, overseen by a lively multi-stakeholder World Bank initial discussions with Armenia on EITI and mining group comprising government, mining companies and Afghan civil issues and with Bulgaria on transit revenues have not advanced society. The SEGOM team and team in Kabul provide close technical much. support and financing resources, linked to ongoing mining sector operations in Afghanistan managed by SEGOM. Latin America and Caribbean Region (LCR). Cumulative EITI MDTF allocations for technical assistance and grants to EITI Elsewhere in the SAR Region, there have been no other expressions countries and civil society in LCR now total around US$3.7 million of interest in EITI as yet, although in the case of state-level mining (data as of June 30, 2013). sector advisory work in Orissa State, India, some discussions have occurred on the suitability of EITI as part of good governance of the The upturn in regional interest in and take-up of EITI continues, sector. with Peru (the first EITI-implementing country in LAC to be EITI- compliant) working to consolidate and deepen the EITI process, covering key topics such as partial transfers of mining revenues “By including contracts and licenses, beneficial to sub-national governments. In this regard, Peru receives very ownership, state-owned companies and proactive support from SEGOM and county teams, as well as by donor partners in Lima. EITI implementation is also underway in production information, the new Standard three other EITI candidate countries Guatemala, Honduras and could make EITI more effective in addressing Trinidad and Tobago. the vast governance challenges facing Elsewhere in LCR, Colombia has announced its intent to seek EITI resource-rich countries.” candidacy, while Dominican Republic and Guyana had expressed Daniel Kaufmann, President of the Revenue Watch Institute, interest in EITI earlier, where missions had earlier taken place jointly with partners. Dialogue on EITI has also taken place, albeit 5/22/13 intermittently, with Brazil, Chile, Mexico and Suriname. 20 BUILDING ON PROGRESS TO IMPLEMENT THE EITI STANDARD TABLE 4: COUNTRY PORTFOLIO SUMMARY—WORLD BANK EITI MDTF TECHNICAL ASSISTANCE WORK PROGRAM FY14-16 work program including MDTF grants to countries EITI Compliant EITI Candidate Pre-Candidate In Dialogue Implementing EITI Have made some progress (Validated as Compliant and Implementing EITI Have endorsed EITI toward Sign-up issuing EITI Reports) (16 countries) (18 countries) (25 countries) (19 countries) Burkina Faso ** Chad (via SwissAid)* Equitorial Guinea (delisted) Angola Cameroon ** DRC ** Ethiopia Burundi Central African Rep *** Guinea ** Gabon (delisted) Malawi (priority) Congo, Republic of * Madagascar * (suspended) Rwanda Côte d’Ivoire ** Senegal Seychelles South Africa (priority) Ghana *** São Tomé e Principe * South Sudan Uganda Liberia *** Sierra Leone ** (suspended) Zimbabwe Mali ** Indonesia ** Myanmar Mauritania ** Philippines * Papua New Guinea Cambodia Mozambique ** Solomon Islands * China Niger *** Tajikistan * Laos Nigeria *** Ukraine Vietnam Tanzania ** Colombia Togo * Dominican Republic Georgia Zambia *** Guyana Poland Mongolia *** Guatemala * Timor-Leste ** Honduras* Kuwait Brazil (priority) Trinidad & Tobago * Tunisia Chile (priority) Albania *** Mexico (priority) Azerbaijan Afghanistan * Suriname Kyrgyz Republic ** Kazakhstan * Australia (pilot) Egypt Peru** France Libya Germany Iraq * Italy Yemen * UK USA Norway By WBG Region: AFR—15 countries AFR—7 countries AFR—5 countries AFR—7 countries EAP—2 EAP—3 EAP—2 EAP—4 ECA—4 ECA—2 ECA—0 ECA—2 LAC—1 LAC—3 LAC—3 LAC—4 MNA—2 MNA—0 MNA—2 MNA—2 SAR—0 SAR—1 SAR—0 SAR—0 OECD—1 OECD—0 OECD—6 OECD—0 MDTF grant status to country: The countries in italics above are shown for completeness, and either have not requested EITI MDTF grant assistance or are not eligible (OECD countries). * First MDTF grant is active or in process. ** Second (or post-compliance) MDTF grant is active or in process. *** Third (or post-compliance) MDTF grant is active or in process. EITI MDTF 2013 ANNUAL REPORT 21 Spotlight on EITI Implementation Zambia promoted a new dialogue. The copper sector’s troubled history in Zambia has created Zambia became an EITI candidate in 2008 and in September perceptions that mining companies enjoy a generous tax and royalty 2012, it became compliant with EITI’s rules and principles. This climate and that tax compliance is low. represented a milestone for transparency in Zambia’s mining sector. “People are still asking where this new transparency is leading,” It had entered the EITI process at the same time as Mozambique Bryan Land says. “There is skepticism. How is the government and Tanzania, but of these three African countries, Zambia was first using the money? People are suspicious of private companies and to achieve compliant status. that the government and these companies are cooking up deals. In this regard, Zambia is not unique.” “At first, Zambia did not see the advantages of the EITI, and the CSOs could not even enter the mines,” says Anwar Ravat, The three EITI Reports are an important step in addressing these Operations Adviser in SEGOM, “but Zambia overcame its initial concerns, as they tell a clear story about the rapidly increasing distrust and is now an EITI success story.” copper revenues, as well as social and infrastructure investments by companies. Citizens can see increases in copper output, prices The practical gain of the EITI process, according to Ravat, is the and investment. They can compare tax rates and revenues in similar improved dialogue in the country, which the Bank has helped to mining environments. foster. “It’s our job to help this process along. What has still not happened is a reform in the functioning of the mining industry, and So far, Land adds, there have been no “missing billions” in Zambia. this is a more difficult task, since there is a big confusion about Before EITI, there was real concern that huge sums were missing, ownership.” but so far only relatively trivial amounts have been found. Zambia has registered a decade of economic growth of more than Anwar Ravat believes that once in the EITI, the process is five percent per year. The growing extractives sector is a key to irreversible: continued growth, poverty reduction and social and economic development. The country has known fluctuating fortunes during • The CSOs—they are at the table for the first time and they want its long history of copper exploitation. This time, though, the to keep their place there. government and other key stakeholders want to ensure that the • The companies—leaving the EITI would be reputationally bad for mineral resources benefit all Zambians. But much remains to be done them. to ensure that the sector effectively contributes to poverty reduction and sustainable economic growth. Zambia’s journey towards • The governments—many different reasons to stay in the EITI but transparency has not been easy but important progress is being the main one is to continue to show transparency. made. “Mining in Zambia accounts for 70 to 80 percent of export Now, says Bryan Land, Lead Mining Specialist and Extractive Team earnings, but now there is a sustained demand for more Leader for Africa, the reporting is quite thorough with plenty of new accountability,” says Anwar Ravat. “The challenge now facing information available; there is no longer any reservation about who EITI-compliant countries such as Zambia is to move beyond EITI, paid what; the Multi-Stakeholder Group (MSG) is in place and has using the MSG to look at other issues and push beyond the narrow mandate of revenue reporting.” The country’s CSOs feel that EITI has been a vehicle through which good governance can be promoted. Training and advocacy activities have helped the CSOs gain an enhanced understanding of revenue flows. They have also leveraged EITI discussion to pressure local government officials to discuss pollution and land displacement issues. They are also hoping that the government will make EITI the law and institutionalize transparency and accountability in the sector, and that compliance will lead to reforms in other areas such as taxation and employment. The World Bank, through its EITI Multi-Donor Trust Fund, is supporting capacity building of Zambia’s CSOs to strengthen their participation in EITI. A CSO consultation was held in Lusaka in RANDY OLSON / National Geographic Creative September 2012 and CSO capacity building activities in 2013. 22 BUILDING ON PROGRESS TO IMPLEMENT THE EITI STANDARD Indonesia “Imagine a country,” says Frederic Cegarra, Senior Adviser in SEGOM, “that stretches from Spain to Moscow, with 230 million people spread out over 18,000 islands. Indonesia’s difficulties can be found in its size plus decentralization, and we have to adapt EITI to the structure of the country and the reality of the economy. Given this complexity, it is a success.” Indonesia’s annual economic growth of six percent over the last three years has been accompanied by rising foreign investment. In 2011, the extractive industries amounted to 16 percent of gross domestic product (GDP) and over 40 percent of the country’s exports. The country holds almost four billion barrels of proven oil reserves and over six billion short tons of recoverable coal. Indonesia’s natural resource wealth is likely to be an important driver for economic growth for many years. FRANS LANTING / National Geographic Creative Indonesia started to implement EITI in 2010. Its first EITI Report was published in April 2013, revealing US$25 billion in revenues in 2009, or 24 percent of total government revenues that year, The WB and its MDTF play a crucial role to make sure from 57 oil and gas companies, 18 mineral, and 54 coal mining that civil society can engage fully in the EITI process, to companies. independently criticize the process and while creating public demand and debate to raise awareness on transparency But much work remains, and it will be several years before we get about the extractive revenue and on contextualizing EITI to a precise idea of the extractive industry’s revenues. the local communities.” Civil society in Indonesia has played a pivotal role in the emergence In a big country like Indonesia, the documents are huge and difficult of the EITI in Indonesia but the groups need support to effectively to understand, and the challenge is to make the information contribute to EITI implementation. The MDTF’s capacity building relevant. activities support CSOs to assess sub-national data, carry out research and communications activities to disseminate the findings According to EITI News, Indonesian CSOs have also been assisting to their communities. their Philippines counterparts in promoting revenue transparency, and implementing the EITI, under the auspices of the IKAT-US Maryati Abdullah is National Coordinator for Publish What You Pay project, managed by the Revenue Watch Institute (RWI). in Indonesia and that CSO’s representative on the multi-stakeholder group of EITI-Indonesia. Here is how she explains why the EITI Recently, the IKAT project has made significant strides promoting process is important for Indonesia’s CSOs: EITI in the Philippines and these activities culminated in January 2013 when Bantay Kita’s members officially selected civil society “Generally, we hope the EITI process can bring changes and representatives for the EITI Multi-Stakeholder Group (MSG) in the improve the governance of the revenue system and make it Philippines. This collaborative activity between CSO partners from more efficient, transparent and accountable to the public. Indonesia and the Philippines has had positive results at the sub- We also hope that the government, academia, parliament national level as well. and policy makers in general can use the report as starting point to discuss the weak point of the revenue system and make recommendations for improving the policies. For the CSO, in particular, we hope to get better analysis and to better track the data for advocacy purposes as well as for policy engagement with other stakeholders to improve extractive revenue governance. EITI MDTF 2013 ANNUAL REPORT 23 CHAPTER 2 CIVIL SOCIETY CAPACITY BUILDING Civil society has long been a key element of the EITI process, and The main objectives of the MDTF support to the CSOs are to: the civil society organizations remain a driving force, playing three • Strengthen CSO participation in the Multi-Stakeholder Group key roles: advocacy, analysis and capacity building. International (MSG) and its contributions to EITI implementation; civil society groups such as the Revenue Watch Institute also provide extensive funding and technical assistance to local civil • Broaden the definition of civil society and increase diversity of society groups involved in EITI implementation. CSOs involved in the EITI process; and • Support initiatives proposed by local CSOs, to increase ownership To a large extent, it was pressure from international civil society and capacity. organizations such as Global Witness and the Publish What You Pay coalition that led to the creation of the EITI. The CSOs are “The issue is the same everywhere – capacity,” says Nina interested in EITI, because it makes governments and companies Inamahoro, who helps coordinate the Bank’s CSO efforts in the more accountable to the country’s citizens and is a crucial step EITI process. “They [CSOs] are new to democratic issues and new toward the broader sharing of the gains from extraction of natural to multi-stakeholder issues, and all this information has previously resources. Their role is critical to the success of the EITI process been secret.” in promoting transparency and accountability, which requires an informed, capable and engaged civil society. In each country, the World Bank has organized consultation events with civil society representatives from national and international “The development challenge of the decade is undoubtedly NGOs, media, unions, and other community leaders involved and resource governance,” said Daniel Kaufmann, President of the interested in the extractive industries to identify challenges and leading international CSO, Revenue Watch Institute, in a speech in opportunities for improved EITI engagement. The events have Oslo in February 2013. facilitated the development of action plans to strengthen civil society participation in EITI implementation. Capacity building The World Bank, together with other donors, has stepped in to activities have allowed CSOs to receive specific training on support capacity building of civil society groups to increase their EITI, assess the information contained in national EITI reports, effectiveness in the EITI process. disseminate findings to communities who are often unaware of the issues and have misconceptions about EI management by EITI-MDTF Civil Society Direct Support Program. The Bank’s governments and EI companies. EITI Multi Donor Trust Fund has established multiple funding mechanisms to support CSO involvement in EITI. Since 2011, Through the MDTF Direct Support Program, CSO representatives, direct support to local NGOs has amounted to $2 million total in community leaders and in some cases local elected officials the target countries. The EITI-MDTF Civil Society Direct Support received targeted training on the EI value chain, such as licenses Program has facilitated activities in four EITI candidate countries— and contract monitoring, legal systems for extractives, revenue Guatemala, Indonesia, Solomon Islands, and Trinidad and Tobago— management, corporate social responsibility, and sustainable and seven compliant countries, Kazakhstan, Kyrgyz Republic, development. Mongolia, Mozambique, Niger, Tanzania, and Zambia. CSO support projects are also being prepared for Albania, Liberia, Myanmar, CSOs have used the support from the MDTF to coordinate their Peru, and Sierra Leone. activities in EI monitoring, exchange information, and to network amongst themselves. By increasing knowledge, access to In many countries, the CSOs face challenges in participating in information and dialogue among the civil society organizations, the the EITI process, including a lack of technical expertise, weak Multi-Donor Trust Fund is also contributing to strengthening the organization/coalitions, and difficult operating environments. In dialogue between CSOs and the other stakeholders—governments many countries, there has also been a failure to engage the broader and the private sector. civil society and community groups. This has prevented effective CSO participation in multi-stakeholder groups. 24 BUILDING ON PROGRESS TO IMPLEMENT THE EITI STANDARD “The EITI’s influence rests on it being seen as a reformers club which governments and companies want to be part of. This attraction will fade if the initiative is seen to be merely playing catch-up with more dynamic reforms taking place elsewhere.” Corinna Gilfillan, Head of Global Witness’ U.S. Office, May 2013 EITI MDTF 2013 ANNUAL REPORT 25 Revenue Watch Institute (RWI). Revenue Watch Institute was Expected results include a more robust EITI implementation, a more chosen on a competitive basis to implement a $1 million civil diverse and active civil society using EITI reports and processes to society strengthening program in six countries. Early work with advocate for policy and sector reforms. Revenue Watch has helped to develop training tools and launch pilot CSO activities. RWI has also provided a body of knowledge A major future challenge for the MDTF, as it seeks to build CSO about the challenges, bottlenecks, and opportunities to improve capacity in various countries, is how to sustain this capacity, for CSO engagement in EITI. example by involving local groups with strong community ties and by encouraging them to share their knowledge. Durable CSOs are During the fall of 2012, EITI MDTF Management Committee needed to ensure that this new knowledge is captured in lessons approved a $1.5 million second contract with RWI to implement learned and widely shared. CSO strengthening activities in two areas that are crucial to the future success and impact of EITI: first, outreach to prospective Publish What You Pay (PWYP). The EITI MDTF is also negotiating implementing countries; and second, advancing implementation with Publish What You Pay (PWYP) to provide support for the beyond the minimum standard of compliance. implementation of that organization’s new strategy, entitled Vision 20/20. The objective of the new collaboration is to: (1) reinforce The outreach component will include regional training with civil society coalitions and their capacity to influence policies and participation of not-yet implementing country civil society practices in the EI; (2) build capacities to effectively engage and representatives, as well as targeted programs in the Philippines influence the outcomes of EITI, both in terms of the process and the and Ukraine. Additional countries will be selected. The “beyond quality and scope of reports; and (3) enhance dissemination and compliance” component will include development of key analytical use of data to reach out to communities affected by EI, marginal and training materials and targeted country support, including groups, youth, women and citizenry in general in view of promoting technical advice, capacity building, grants, and mentoring in Niger, public debate and reforms. Burkina Faso, Democratic Republic of Congo, Cameroon, Ghana, Zambia, Tanzania, and Azerbaijan. It will also include regional workshops. JOEL SARTORE / National Geographic Creative 26 BUILDING ON PROGRESS TO IMPLEMENT THE EITI STANDARD TABLE 5: SUMMARY OF MDTF-SUPPORTED CIVIL SOCIETY ORGANIZATIONS (CSO) ACTIVITIES WB EITI MDTF Civil Society Organizations PWYP RWI Direct Support Program TOTAL BUDGET USD 2 million USD 500,000 USD 1.5 million Duration Since September 2011 15 months 18 months WB staff role TTL, STC on the ground, coordination by WB reviews/approves the main grant WB reviews/approves main grant proposal and time MDTF team to follow up on implementation proposal RWI implements the proposed activities PWYP implements proposed activities Country of focus Niger, Guatemala, Mongolia, Kyrgyz Republic, Cameroon, Chad, Central African (1) Philippines, Ukraine, Niger, Burkina Faso, Kazakhstan, Trinidad & Tobago, Solomon Republic, Gabon, DRC, Republic of Congo, DRC, Cameroon, Ghana, Zambia, Tanzania, Islands, Tanzania, Zambia, Mozambique, Equatorial Guinea Azerbaijan and perhaps Colombia and South Indonesia, Liberia, Sierra Leone, Albania Sudan; (2) fund participation of CSOs from specific countries to RWI regional hub training for Anglophone Africa, Eurasia, Asia-Pacific and Latin America EITI status of Candidate (Guatemala, Kazakhstan, Solomon Two candidates (Cameroon, Chad), one Outreach (Philippines, Ukraine), compliant targeted countries Islands, Trinidad & Tobago, Indonesia), compliant (Republic of Congo), two (Niger, Burkina Faso, Ghana, Zambia, Tanzania, compliant (Niger, Mongolia, Kyrgyz Republic, suspended (DRC, CAR), delisted (Equatorial Azerbaijan), candidate (Cameroon), suspended Tanzania, Zambia, Mozambique, Liberia, Guinea, Gabon) (DRC) Albania), suspended (Sierra Leone) Particularity of Single country engagement (WB holds one PWYP 20/20 Vision, AMV, regional ap- (1) Outreach countries to help start the EITI approach CSO consultation event followed by capacity proach for Central Africa process; (2) Beyond compliance focusing on building activities implemented by a leading [EITI] report analysis and utilization. (3) Support local CSO) to increased participation in MSG by CSOs. Key challenge (1) Low understanding of EITI by CSOs; Slow advance of EITI due to weak environ- Get some outreach countries to sign-up to EITI (2) Low participation of CSOs in MSG; ment for CSO engagement (persecution (3) Lack of diversity of CSO participation and intimidation of campaigners, etc.) in EITI Grant-making (Y/N) No (except for projects in Indonesia and Yes (national coalitions to implement proj- Yes (one component of the program: local CSOs Kazakhstan) ects around key priorities they identified) to do outreach and advocacy on EI and EITI) Objectives (1) Strengthen CSOs participation in the EITI (1) Reinforcing civil society coalitions and (1) Four outreach countries sign up to EITI and Multi-Stakeholder Group (MSG): increase their capacity to influence policies and begin a trajectory towards robust implementa- ownership and strengthening CSO contribu- practices in the EI; (2) building capacities tion; (2) In four outreach countries, a diverse and tions to the EITI implementation process; (2) to effectively engage and influence the active civil society coalition engages in and uti- broaden the scope of civil society organiza- outcomes of EITI, both in terms of the pro- lizes the EITI process; (3) In eight implementing tions engaged in EITI: increase diversity of cess and the quality and scope of reports; countries, civil society utilizes multi-stakeholder CSOs involved in the EITI process; (3) Support (3) enhance dissemination and use of data processes to push for improvements in the EITI more intensive and thorough use of informa- to reach out to communities affected by process and reports; (4) In eight implementing tion generated by EITI; (4) Help catalyze addi- EI, marginal groups, youth, women and countries, civil society uses EITI reports and pro- tional resources for civil society organizations citizenry in general in view of promoting cesses to demand EI sector reform (this outcome engaged in the extractive industries and EITI public debate and reforms receives an estimated 50% weight as the largest component of the proposed activities) Tools Face to face consultation events, research Working in partnerships with experienced Regional trainings and events, RWI teaching activities by CSOs, awareness raising through organizations to delivers various trainings material, web-based report evaluations community radio, peer to peer learning in mining regions, EI courses, investigative reporting by journalists Targeted CSOs both involved in EI or seeking to be CS in general but particularly PWYP coali- CSOs involved or who seek to be involved in EITI organizations involved, EITI MSG and non-MSG, academia, tions, EITI MSG CSO members, EITI partici- and media pating CSOs, CBOs involved in EI, media & youth groups involved in EI Activities (1) Training on EI and EITI; (1) National-level workshops to develop (1) Regional trainings and events in outreach (2) Media training; strategies; (2) strengthen coalitions; (3) countries; (2) funding of participation costs of (3) Peer to peer learning in mining regions adoption of protection mechanisms of civil CSOs from outreach countries to RWI regional of the same country; society; (4) capacity building and technical hub trainings in four continents; (3) Support to (4) Coalition building training; (5) regional peer learning events CSOs in implementing countries with technical assistance to strengthen their participation; (4) research papers on EITI Risks (1) High-expectations of WB involvement on (1) Overlap with RWI activities in (1) Outreach countries don't sign up for EITI; (2) time and assistance to organizations, Cameroon, DRC; (2) long-term need of sustainability of support beyond grant (2) Need for continued support by CSOs financial support Risk management Linking with other WB in-country projects Coordination with RWI [None proposed] when possible EITI MDTF 2013 ANNUAL REPORT 27 Spotlight on EITI Implementation Mongolia minerals’ share of total exports is expected to be over 90 percent. The country is seeing a slowdown in foreign direct investments, In January 2006, Mongolia decided to join the EITI. It became EITI signaling growing wariness among foreign investors over Mongolia’s compliant in October 2010. During this time, the World Bank, investment climate. through its Multi-Donor Trust FUND (MDTF), extended financial, technical and advisory support to the Mongolian EITI to cover costs Mongolia faces the challenge of managing this wealth of data to for reconciliation activities. Today, the Mongolian government is stimulate debate about natural resource extraction. Although the fully funding this task. 2010 Validation Report cited “remarkable progress” made “to ensure that transparency becomes institutionalized and operational,” there In 2006, the EITI Report covered payments from 25 companies, is little evidence, according to ScanTeam’s report from May 2011 while the latest reports cover upwards of 200 companies. that EITI Mongolia (EITIM) data has entered into the larger political Subsequent reports have seen decreasing discrepancies as both the and public debate. It did say, however, that the data’s availability has government and the companies are improving their data collection contributed to reducing the “culture of secrecy” in the country and performance. The last two reports have also been connected to the thereby reduced the opportunities for corruption. concept of “beyond compliance” and include some information on licenses, mining plant performance, natural rehabilitation expenses, But, the report also says that EITIM has not made a “discernible and donations. contribution” to improved accountability in Mongolia, and “there is no clear evidence attributing to the EITIM the larger improvements in In 2012, Mongolia published its 2011 EITI Report, which contained governance, poverty reduction and the business environment.” an extensive overview of the extractives sector, including detailed information on payments and revenues. It included additional An EITI law and a strategy for 2010-2014 are currently being drafted information such as commodity price developments, a map of with enhanced CSO capacity and participation. This is seen as deposits of strategic importance, an overview of license holders and important in sustaining the process which, observers say, is driven license transfers, data on environmental protection payments and more by the CSOs than by the government. social expenditures. Katherine C. Heller, Social Development Specialist in SEGOM, says Mongolia experienced 12.3 percent economic growth in 2012, down the CSOs in Mongolia have made progress in building their capacity, from 17.5 percent in 2011, largely due to lower coal and copper especially in Ulan Bator, but that in rural areas, awareness is lower exports, says the World Bank’s April 2013 economic update on the and capacity is weaker as a result. country. This year, the country’s mineral revenues are expected to account for 20 percent of total government revenues, and the The World Bank consultations were based on pressing demands by the CSOs to increase their knowledge about EITI and EI issues. But it is more than that. “In our consultations, a whole range of issues came up, beyond EITI, all related to democracy and community participation. So when we asked about EITI, the response was much broader, and it took longer than we anticipated,” says Katherine Heller. The Bank’s review sought to determine ways to make EITI reports more understandable and ‘usable’ by CSOs, and Publish What You Pay was contracted for this purpose. Journalists were trained to strengthen their knowledge and understanding of the issues, and CSO training took place with the help of Revenue Watch Institute. Some comprehensive EITI training activities for mining communities were carried out through July 2013. Other training programs will seek to raise awareness and engagement around EITI, while also creating opportunities to forge stronger links between CSOs concerned with mining issues at the local level and those active at the national level. This will help strengthen EITI implementation and advance transparency. 28 BUILDING ON PROGRESS TO IMPLEMENT THE EITI STANDARD Kazakhstan Since the country signed on to EITI in 2005, civil society engagement has been dynamic and ever more CSOs are involved. In 2010, a “Dialogue Platform” was formed to coordinate CSO activities and develop common approaches to monitor the extractive industries. Today, the Platform unites around 500 NGOs from coalitions such as “Oil Revenues—Under Public Oversight” and “Civic Alliance of Kazakhstan.” With the support of the MDTF, eight EITI national and regional advocacy conferences have been held in various areas of the country between 2008 and 2012, bringing together between 80 and 180 attendees. In 2013, the MDTF plans further activities to train CSOs in extractive regions of the country. The activities will help improve the negotiating and advocacy capabilities of the CSOs on behalf of ordinary citizens. “We have had pilot projects and direct funding through the MDTF to help increase the awareness of the NGOs about the EITI process and figuring out how to make it more useful, and it’s going well,” says Gary McMahon, Senior Mining Specialist in SEGOM. “The local NGOs don’t have a problem with understanding the EITI issue. They understand the importance of transparency and that the EITI opens up the mining sector to all kinds of issues.” JUSTIN LOCKE / National Geographic Creative EITI MDTF 2013 ANNUAL REPORT 29 CHAPTER 3 WB/MDTF CONTRIBUTIONS TO GLOBAL PROCESS, KNOWLEDGE AND LEARNING Although the World Bank team and most MDTF Management There are seven requirements in the new Standard: Committee members do not sit on the EITI Board, they nonetheless contribute to the global process by participating on EITI Board 1. Effective oversight by the Multi-Stakeholder Group. Working Groups and Committees. The culmination of this work was 2. Timely publication of EITI Reports. seen at the 6th EITI Global Conference in Sydney, in May 2013, at 3. EITI Reports that include contextual information about the which the new EITI Standard was launched. extractive industry. In terms of knowledge and learning, both World Bank staff and 4. The production of comprehensive EITI Reports that include full MDTF Management Committee members contribute to preparation government disclosure of extractive industry revenues, and of training courses and learning, in close collaboration with the disclosure of all material payments to government by oil, gas and EITI International Secretariat in Oslo. When the New Rules were mining companies. introduced in 2011, the WB/MDTF co-funded training courses with 5. A credible assurance process applying international standards. the Secretariat. Now with the EITI Standard, such activities will also be supported by the World Bank team with funding from the MDTF, 6. EITI Reports that are comprehensible, actively promoted, publicly and based on a strategy developed with the Secretariat in Oslo. accessible, and contribute to public debate. 7. The Multi-Stakeholder Group to take steps to act on lessons In terms of major knowledge products, the EITI MDTF has financed learned and review the outcomes and impact on EITI the following publications to contribute to better understanding of implementation. the EITI purpose and process. • “Implementing EITI: Applying Early Lessons from the Field” The key changes in the new Standard are: (November 2008). Making the EITI more relevant. The new Standard is based on • “Toward Strengthened EITI Reporting” (August 2009). the need to ground implementation in the national dialogue about natural resource governance. Each country—through its Multi- • DVD “EITI at Work” (October 2010). Stakeholder Group—is required to agree on a work plan with clear • “Voices of Transparency” (March 2011) objectives and activities linked to national policies and reforms. • “Implementing EITI at the Subnational Level” (October 2011) Multi-stakeholder groups are encouraged to more clearly articulate what they want to achieve with the EITI, how these objectives will • Revision/Update of “Implementing EITI: Applying Early Lessons be achieved and document the impact of the EITI. from the Field” in 2013: “Implementing EITI for Impact” (pending revision to take account of new EITI Standard). Making the EITI Reports more useful and understandable. To date, EITI Reports have often been difficult to read and interpret. The New EITI Standard and the Way Forward They often require the reader to have technical expertise on the extractive sectors and government accounts. The new Standard “The transparency that the EITI drives can help deliver reform. challenges implementing countries to use the EITI to address the There is still a long way to go until the citizens of resource-rich most pressing governance challenges in the extractive industries. countries truly see the benefits. I hope and believe that the new The Board has therefore agreed that EITI Reports should include EITI Standard will make an important contribution to realizing more contextual and explanatory information. The new Standard this aim.” requires information about the contribution of the extractive sector Clare Short, Chair of the EITI Board. to the economy, a description of the fiscal regime, an overview The EITI Standard was approved at the 6th EITI Global Conference of relevant laws, and a description of how extractive industry in Sydney in May 2013. It replaces the EITI Rules from 2011 while revenues are recorded in national budgets. The new Standard also retaining the twelve EITI Principles. The Standard incorporates requires information on licensing and production, and government lessons learned about effective EITI implementation. It gives a participation in the extractive sectors. MSGs are also encouraged to clearer set of rules, encourages more understandable, relevant address beneficial ownership and contract transparency. and more reliable information, as well as better linkages to wider Ensuring timely, comprehensive and reliable data. The EITI reforms. requirements have been restructured to more clearly emphasize the importance of timely, comprehensive and reliable information. 30 BUILDING ON PROGRESS TO IMPLEMENT THE EITI STANDARD “The new Standard has opened the door for EITI to become much more relevant to meaningful policy reforms to improve resource governance. The challenge now is for the 41 countries to implement the Standard in a timely and thorough way.” Erica Westenberg, Revenue Watch, 5/22/13 EITI MDTF 2013 THOMAS J. ABERCROMBIE ANNUAL / National 31 REPORTCreative Geographic The EITI Report will be required to show full government disclosure “The EITI has finally recognized that, when of all revenues received from the extractive industries, published it comes to complex industries, merely on a project-by-project basis. The new Standard also includes detailed provisions on infrastructure and barter arrangements, disclosing payments is not enough. By social expenditures, transportation and transit payments, and sub- including contracts and licenses, beneficial national payments and transfers. The reporting procedures have ownership, state-owned companies and also been strengthened, requiring the Independent Administrator production information, the new Standard and the Multi-Stakeholder Group to assess prevailing auditing practices and agree on the procedures for ensuring that the data is could make EITI more effective in addressing disclosed in the EITI Report. These changes seek to ensure that the the vast governance challenges facing EITI Report provides a complete picture of the revenues received, resource-rich countries.” and that the EITI Report more clearly addresses the reliability of the data. Daniel Kaufmann, President of the Revenue Watch Institute Improving the Validation process. Validation is an essential Countries admitted as candidates from May 22, 2013, forward will feature of the EITI process. In order to improve its quality, efficiency be required to implement the EITI in accordance the new Standard. and consistency, validators will be procured and managed by the A country applying for candidacy in 2013 and subsequently International Secretariat rather than by implementing countries. accepted will have their reporting and validation deadlines extended This will allow the Multi-Stakeholder Groups to focus on EITI by six months to allow the Multi-Stakeholder Groups to make implementation. An EITI candidate country is required to commence adjustment to their work plans. For those who apply after January validation within two and a half years of becoming a candidate. 1, 2014, the standard deadlines will apply. Compliant countries will also be required to undertake validation more frequently—every three years instead of every five years. The All implementing countries are required to publish a 2013 annual EITI Board is also examining mechanisms outside validation to give activity report by July 1, 2014. greater recognition to countries that develop innovative approaches to ensure that the EITI achieves its objectives and has an impact on In a report entitled “Implications for Implementation” of the new the ground. EITI standard, published after the Sydney EITI conference in May 2013, the World Bank’s Bryan Land and Javier Aguilar call the new Since the 41 EITI implementing countries are at different stages Standard a “bold move” and say that, “there is no doubt that, if of implementation, the EITI International Secretariat has proposed implemented well, the new EITI Standard will secure the global transitional arrangements for the new Standard while encouraging EITI transparency movement center stage in the quest for greater implementing countries to transition to the new Standard as soon transparency and accountability in resource rich countries. The as possible. challenge for all, including the World Bank, is to ensure that the new EITI Standard is implemented well.” BOX 5: Implementing EITI for Impact: A Handbook for Policy Makers and Stakeholders This publication was completed in early 2013. The “Road Show Version” was launched for comments at the EITI Board Meeting and Conference in Lima, Peru in June 2012, and the online version was shared with stakeholders in December 2012. It was then decided to do a limited print run till the new EITI Standard was approved. The publication is being updated and will be disseminated more broadly in a print format in 2014. The ongoing development of the handbook will serve as an interactive tool for advisory/ guidance to EITI practitioners. 32 BUILDING ON PROGRESS TO IMPLEMENT THE EITI STANDARD BOX 6: The “Resource Curse“ The resource curse, also known as the paradox of plenty, refers to the paradox that countries with abundant extractive resources – oil, gas and mining – tend to register lower economic and social performance than countries without these natural resources. These countries also tend to experience a higher than average incidence of social and political unrest and violence. This is hypothesized to happen for many different reasons. Including a decline in the competitiveness of other sectors, caused by apprecia- tion of the real exchange rate as resource revenues enter the economy, also known as the “Dutch disease.” Other factors are the volatility of revenues from resource extraction, government mismanagement of resources, and weak, ineffectual, unstable or corrupt institutions. While there is no universally accepted theory of the resource curse, corruption has been widely recognized as a central explanatory fac- tor. Since the extractive resource revenues are concentrated and easily appropriable, government officials in resource rich countries are tempted in rent-seeking, patronage and degradation of institutional checks and balances. Sources: Auty (1993), Collier (1999), Sachs and Warner (2001), Kolstad and Wiig (2009). EITI MDTF 2013 ANNUAL REPORT 33 Spotlight on EITI Implementation Peru Guatemala Peru is so far the only EITI compliant country in Latin America. Guatemala published its first EITI Report in 2013. The mining and However, more countries are on the way to joining. Guatemala, oil industries account for close to two percent of the country’s Trinidad and Tobago and, this year, Honduras, are all EITI candidate GDP. With an August 2013 EITI validation deadline, the context for countries, while Colombia has announced its commitment to EITI. the EITI implementation is favorable, but it’s a “very complicated environment,” says Kristina Svensson, Senior Operations Officer in In the last decade in Peru, the extractive industries have expanded the Bank’s Oil, Gas and Mining Unit. This is due to the presence of a and will continue to grow as new and large projects are developed strong anti-mining movement, which has led to political polarization in the near future. Following President Humala’s recognition that over the extractive operations. transparency is needed to ‘heal the wounds’ of Peru’s mining sector, the country is seeking to strengthen transparency and The dialogue between the three main stakeholders needs to be accountability at local levels through four sub-national EITI pilot strengthened, and a representative group from civil society should programs in the next couple of years. be encouraged to participate. The work of the EITI Commission can only strengthen its legitimacy by increasing CSO participation and The first EITI MDTF grant to Peru helped the country to implement representation. EITI and reach compliant status. Now a second grant for post- compliance will help the government address weaknesses identified It is here that the MDTF has come in. The purpose of the MDTF in the validation report and prepare a more robust second EITI grant is to strengthen the capacity of civil society organization, report. academics, community leaders and indigenous groups to participate effectively in the EITI process. Two areas were prioritized, namely Peru’s EITI reports have included data on production by commodity, training on EITI and extractive industry management, and which has enabled its citizens to trace how these resources are communications outreach to 30 indigenous groups in the areas being exploited and the benefits that accrue to the national affected by EI projects. treasury. They also showed that the government redistributes a significant share of the extractive industry revenues to the regions, local municipalities, and universities. According to the latest EITI Report, the Peruvian government received over US $5 billion in 2010, six times more than in 2004, when Peru first disclosed the figures. Over 60 percent of the revenue came from mining. 34 BUILDING ON PROGRESS TO IMPLEMENT THE EITI STANDARD NEW CHALLENGES AHEAD The EITI is now the global standard for revenue transparency. Once EITI has taken root in a country, it is usually irreversible. As the Independent Evaluation Group, an independent unit within A broader scope for EITI would mean a wide scope also for the the World Bank, concluded in its 2011 report about the Multi- Multi-Donor Trust Fund and for funding activities. This important Donor Trust Fund, the EITI, with support from the MDTF, is in issue will require attention from the Management Committee process of “achieving its objective of increasing transparency in Members. resource-dependent countries.” But, it continued, “the program’s contribution to the broader goal of improving governance and The MDTF now faces further challenges to: fighting corruption remains unclear.” And the Group called in its • Sustain current implementation of EITI; report for a roadmap for the future. The new EITI Standard can be • Expand efforts to build capacity in CSOs; seen as that roadmap. • Follow up closely on MDTF results and improvements to capture The future is unknown, but it is clear that the Extractive Industries country results; Transparency Initiative and the World Bank’s Multi-Donor Trust • Adjust support to countries to implement the new EITI Standard. Fund will face new and daunting challenges in the second decade of EITI’s existence. Much work remains to be done. A review of the 2013 Revenue Watch Resource Governance Index makes this clear. Tracking of With the launch of the new EITI Standard, EITI is not only building transparency performance shows that far too many countries fall on its impressive record and rapidly increasing the number of short of meeting the Standard. Of the 58 resource-rich countries participating nations, both rich and poor, but also seeking new that produce 85 percent of the world’s petroleum, 90 percent of ways to expand its mandate for transparency and, ultimately, diamonds and 80 percent of copper and generate trillions of dollars accountability, in the world’s extractive industries. in annual profits, only 11 of them have satisfactory standards of The new EITI Standard means significant changes for implementing transparency and accountability. Norway, the United States, the countries, and the World Bank’s technical assistance and funding U.K., and Australia head the index, but six countries from Latin from the MDTF will respond accordingly. For example, there will America—Brazil, Chile, Colombia, Mexico, Peru, and Trinidad and be enhanced capacity building to help countries with additional Tobago—are among the top eleven too, showing that emerging reporting requirements while, at the same time, MDTF will seek economies can also deliver good governance . ways for EITI countries to bear more of the EITI reporting costs In the remaining 58 countries, however, there is a major previously funded through the MDTF (for instance, by integrating governance deficit, especially in the most resource-dependent EITI reporting into national systems and redeploying funds countries, where nearly half a billion people live in poverty despite previously used to cover validation costs). There may also be a that resource wealth. The future of these countries depends on need for bridge funding from bilateral donors as this transition is how well they manage their oil, gas and minerals, according to the implemented. These implementation issues will need to be taken Revenue Watch Index. into consideration by both the MDTF and donors. The EITI is now the global standard for revenue transparency. The EITI multi-stakeholder platform has proven to be a powerful Once EITI has taken root in a country, it is usually irreversible. The tool to stimulate a debate that goes beyond revenue transparency. challenge for all stakeholders going forward will be to implement In country after country, even basic transparency has become the the new EITI Standard and ensure that the process is embedded in starting point for wider-ranging discussions, covering mining and country systems and leads to broader reforms where needed, to resource deals, improving tax collection systems to track down ensure that the revenues generated from the oil, gas and mining missing money, and how money is spent. resources in a country contribute to development for the benefit of its citizens. EITI MDTF 2013 ANNUAL REPORT 35 36 BUILDING ON PROGRESS TO IMPLEMENT THE EITI STANDARD ANNEX EITI MDTF 2013 ANNUAL REPORT 37 ANNEX TABLE 1: WORK PLAN SUMMARY (WORK PROGRAM AND SIGNED/PENDING GRANT AGREEMENTS (US$000)) WB TA Disb. of WB TA Work WB TA Signed Grant Disb. from Program Amount Actual or Grants Available Amount Total inception (Jan. 1, Revisions Planned through Dec. Balance Revisions Funding until 2013-June for Grant 31, 2012 of Signed for Grant from Dec. 31, 2012 30, 2016) Approval Amounts Grants Approval Status Facility A. COUNTRY LEVEL AFRICA Angola 144 - - - - Closed 144 Botswana - - - - - Ltd Fac. inv. - Burkina Faso 168 - 224 224 - Closed 392 Burkina Faso PC1 3 159 200 - - Pending 362 Cameroon 80 - 99 99 - Closed 179 Cameroon Phase II 77 - - - - Closed 77 Central African Republic 85 - 291 291 - Closed 376 Central African Republic PC1 1 142 250 - - In Process 393 Chad (WB-managed) 348 98 375 - - 375 Pending 821 Congo Republic 164 82 350 126 224 Signed 596 Côte d'Ivoire 117 - 130 130 - Closed 248 Côte d’Ivoire PC1 10 150 47 350 - - 100 Pending 510 Democratic Republic of Congo 563 - 495 495 - Closed 1,058 DRC Phase II 67 150 42 495 - 495 Signed 712 Equatorial Guinea 504 - (7) - - - Closed 504 Ethiopia 183 272 200 250 - - Pending 705 Gabon - 70 350 - - In Dialogue 420 Ghana 142 - 218 218 - Closed 360 Ghana PC1 137 27 400 391 9 Signed 564 Ghana PC2 - 120 120 400 - - 400 Pending 520 Guinea 440 - 419 419 - Closed 859 Guinea Phase II - 166 100 350 - - Pending 516 Liberia 122 - 399 399 - Closed 521 Liberia Phase II 3 - 165 165 - Closed 168 Liberia PC1 4 201 50 200 - - In Process 405 Madagascar 203 - 344 344 - Closed 547 Madagascar Phase II - 100 100 480 480 Pending 580 Malawi 21 83 275 - - In Dialogue 379 Mali 78 - 185 185 - Closed 263 Mali PC - 210 200 - - Pending 410 Mauritania 60 - 148 148 - Closed 209 Mauritania PC1 86 59 275 183 92 Signed 420 Mauritania PC2 - 100 100 350 - - 350 Pending 450 Mozambique 292 - 361 361 - Closed 653 Mozambique Phase II 45 - 350 350 - Closed 395 38 BUILDING ON PROGRESS TO IMPLEMENT THE EITI STANDARD WB TA Disb. of WB TA Work WB TA Signed Grant Disb. from Program Amount Actual or Grants Available Amount Total inception (Jan. 1, Revisions Planned through Dec. Balance Revisions Funding until 2013-June for Grant 31, 2012 of Signed for Grant from Dec. 31, 2012 30, 2016) Approval Amounts Grants Approval Status Facility Mozambique PC1 - 250 112 350 - - 350 Pending 600 Niger 159 - 240 240 - Closed 399 Niger PC1 18 - 200 200 - Closed 218 Niger PC2 - 165 200 - - 200 Pending 365 Nigeria 13 - 1,665 1,665 - Closed 1,678 Nigeria Phase II 224 - 761 761 - Closed 985 Nigeria PC1 49 61 900 - 900 Signed 1,010 Rwanda - 125 - - - In Dialogue 125 Sao Tome e Principe (Delisted) 37 - 1 1 - Closed 37 Sao Tome e Principe (Re-engaged) 130 151 100 285 - - 285 In Process 566 Senegal 101 164 100 500 - - 120 Pending 765 Sierra Leone 301 - 279 279 - Closed 579 Sierra Leone Phase II 53 268 - 310 - - Pending 631 South Africa - 10 - - - In Dialogue 10 South Sudan - 30 20 - - - Pending 10 Tanzania 472 - 336 336 - Closed 808 Tanzania Phase II 14 327 - 350 240 110 Signed 691 Togo 103 75 - 275 177 98 Signed 452 Togo PC1 - 100 100 270 - - 270 Pending 370 Uganda 75 81 - 300 - - In Dialogue 456 Zambia 197 - - 309 309 - Closed 506 Zambia Phase II 40 107 60 350 - - Signed 497 Zimbabwe - - - - - N/A - Sub-total 6,133 4,103 1,244 17,260 8,737 1,928 27,495 EAST ASIA Cambodia - 20 - - - In Dialogue 20 Indonesia 699 4 80 1,050 560 490 Signed 1,753 Indonesia Phase II - 380 46 1,050 - - In Process 1,430 Lao PDR 47 26 - - - In Dialogue 74 Mongolia 42 - 304 304 - Closed 346 Mongolia Phase II 29 - 275 275 - Closed 304 Mongolia PC1 69 109 50 250 183 67 Signed 428 Myanmar 48 90 90 450 - - 450 Pending 588 Papua New Guinea 359 152 460 - - Pending 971 Philippines 48 200 128 600 - - 600 Pending 848 Solomon Islands 343 134 350 - - 50 Pending 828 Timor-Leste 59 - 186 186 - Closed 245 Timor-Leste PC 8 67 200 - - Pending 275 Vietnam - 20 - - - In Dialogue 20 Sub-total 1,751 1,202 394 5,175 1,508 557 1,100 8,128 EITI MDTF 2013 ANNUAL REPORT 39 WB TA Disb. of WB TA Work WB TA Signed Grant Disb. from Program Amount Actual or Grants Available Amount Total inception (Jan. 1, Revisions Planned through Dec. Balance Revisions Funding until 2013-June for Grant 31, 2012 of Signed for Grant from Dec. 31, 2012 30, 2016) Approval Amounts Grants Approval Status Facility EUROPE AND CENTRAL ASIA Albania 130 - 272 272 - Closed 402 Albania Phase II - - 79 79 - Closed 79 Albania Phase III 6 108 300 - - In Process 415 Azerbaijan 15 - - - - N/A 15 Grant Bulgaria 18 - - - - unlikely 18 Kazakhstan 631 88 50 - - - Closed 719 Kyrgyz Republic 235 - 264 264 - Closed 499 Kyrgyz Republic PC1 66 70 200 159 41 Signed 336 Kyrgyz Republic PC2 - 30 30 300 300 Pending 330 Tajikistan 75 115 45 300 - - Pending 490 Ukraine - 60 - - - Pending 60 Sub-total 1,175 471 125 1,715 774 41 300 3,361 LATIN AMERICA Brazil - 150 - - - In Dialogue 150 Colombia 140 127 120 450 - - Pending 717 Dominican Republic 34 191 100 300 - - Pending 525 Guatemala 174 50 49 300 220 80 Signed 524 Guatemala Phase II - 75 75 300 - - 300 Pending 375 Guyana - 100 50 300 - - 300 Pending 400 Honduras 29 131 120 300 - - 300 Pending 460 Peru 107 - 337 337 - Closed 444 Peru PC1 132 132 150 350 - - In Process 614 Suriname 15 115 350 - 350 Pending 480 Trinidad & Tobago 168 88 325 150 175 Signed 581 Trinidad & Tobago Phase II - 50 50 300 - - 300 Pending 350 Sub-total 797 1,209 714 3,612 708 605 1,200 5,619 MIDDLE EAST & NORTH AFRICA Egypt - - - - - Unlikely - Signed- Iraq 302 353 150 1,640 599 1,041 tranche1 2,295 Tunisia - 60 - - - In Dialogue 60 Yemen 137 210 150 350 307 43 Signed 697 Sub-total 439 623 300 1,990 906 1,084 3,052 SOUTH ASIA Afghanistan 211 159 100 275 123 152 Signed 645 Afghanistan Phase II - 100 100 300 - - 300 Pending 400 Sub-total 211 259 200 575 123 152 300 1,045 40 BUILDING ON PROGRESS TO IMPLEMENT THE EITI STANDARD WB TA Disb. of WB TA Work WB TA Signed Grant Disb. from Program Amount Actual or Grants Available Amount Total inception (Jan. 1, Revisions Planned through Dec. Balance Revisions Funding until 2013-June for Grant 31, 2012 of Signed for Grant from Dec. 31, 2012 30, 2016) Approval Amounts Grants Approval Status Facility Contingency allocation for new countries 563 350 913 Sub-total - Country 11,069 8,218 2,977 30,327 12,755 4,366 5,830 49,613 B. SUPPORT TO CSOS, GLOBAL KNOWLEDGE, LEARNING SUPPORT AND FIDUCIARY Support to CSOs, global knowledge, learning support and fiduciary 6,522 11,673 8,334 18,195 Sub-total - Global knowledge 6,522 11,673 8,334 18,195 GRAND TOTAL 17,591 19,890 11,311 30,327 12,755 4,366 5,830 67,808 EITI MDTF 2013 ANNUAL REPORT 41 TABLE 2: GLOBAL KNOWLEDGE, LEARNING SUPPORT AND FIDUCIARY FOR FY13-FY14 Actuals Revised Plans CSO Support TOTAL Cumulative Global KM, Learning Regional East Asia Workshops 4/ Vendor /Grantee Managed CSO MDTF Fiduciary Management Regional Africa Workshops 3/ Other Regional Workshops 6/ 2013 and 2015 Conference 7/ Regional MNA Workshops 5/ General Global KM Events 2/ MC/EITI Board Meetings & and Fiduciary Activities to Direct WB Managed CSO Subtotal Revised Plans Total (Plans + Actuals) related side events 1/ Support Program * and Liaison 6/30/2013 Program Initial and current allocation for pending activities 4,710 450 900 300 300 200 200 200 750 3,300 6,185 4,000 18,195 Actual expenses to date 4,710 0 1,144 668 6,522 Available Balance 0 450 900 300 300 200 200 200 750 3,300 5,041 3,332 11,673 Covers participation at MDTF Management Committee meetings, EITI Board meetings, donor meetings, and related EITI Board or Secretariat business meetings (and side events), including 1/  information sharing with potential EITI partners and supporting governments and entities Other general global knowledge management events, training and learning events, and activities/publications/website, such as contribution by World Bank team to “Advancing the EITI in the 2/  Mining Sector” publication prepared by the EITI Secretariat, Oslo which was launched at the Doha International Conference February 2009 and “Strengthening EITI Reporting” exercise, May 2009 and support to training events like “InWEnt events”. The publication “EITI Lessons Learned and Best Practices” will be re-written in November 2011. “EITI @ Work” DVD was launched at the MC meeting in October 2010. The publication “Voices of EITI Stakeholders” was distributed during the EITI Global Conference. Structured EITI regional workshops covering training events for development agencies, knowledge dissemination, sharing best practice and EITI knowledge sharing; may cover West Africa/ 3/  ECOWAS Regional Nigeria/Ghana/Sao Tome/Liberia/Sierra Leone event on exchanging best practice - cost shared in concert with local donors, hence difficult to estimate amount, but is not expected to be significant. Workshop for EITI stakeholders, including MDTF donors (for example, workshop held in Bangkok in October 2007), and planned workshop for EITI practitioners in East Asia and the Pacific to 4/  be held in Jakarta in October 2011. 5/ Events in the Middle East and North Africa Region. Structured EITI regional workshops covering training events for development agencies, knowledge dissemination, sharing best practice and EITI knowledge sharing; for example in Europe and 6/  Central Asia, and Latin America. 7/ 2013 International EITI Conference. Examples of Actual Deliveries (and selected product costs) before FY13: Support for CSOs, Global KM, Learning Support and Publications Program evaluation report submitted May 2009 at MC meetings (actual $89,977); WBG/MDTF presentation at Doha conference on “Improving the Quality of EITI Reports” (and follow-on 1.  exercise on “Strengthening EITI Reporting”, final report issued August 2009). 2. Preparation and launch of implementation of lessons learned - Implementing EITI: Applying Early Lessons from the Field, April 2, 2008 (not specifically budgeted, but part of general outreach plans). 3. Audit and Reconciliation Workshop, Paris, April 1, 2008 (actual $26,955). 4. Implementing EITI: Inwent course on Best Practice and Tools, Berlin, June 9-13, 2008 (organized event cost shared with EITI Secretariat) (actual $22,911); November 10-14, 2008 and December 15-19, 2008 (actual $50,784; World Bank staff participation as speakers $34,741). 5. Implementing EITI: Applying Early Lessons from the Field, launched at donors’ meeting in Paris in November 2008 (actual $56,488 includes French translation). 6. Chapter on Advancing the EITI in the Mining Sector (actual $5,300). 7. National Coordinators’ Meeting, May 2009 (actual $66,296). 8. Toward Strengthened EITI Reporting, final report - August 2009 (actual $10,355). 9. Sub-regional Oil and Gas Seminar (joint COCPO/AfDB/AFRITAC), Libreville, April 29-30, 2008 (actual $73,892). 10. Training event with AfDB, Tunis, June 2-3, 2008 (part of general outreach plans). 11. West Africa EITI Conference, Abuja, September 11-12, 2008 (actual $62,443). 12. Capacity building in West/Central Africa, November 2008 (actual $22,930). 13. Mediterranean Roundtable, Tunis, November 25-26, 2008 (part of general outreach plans; actual $7,207). 14. East Asia workshop for donors, Bangkok, October 2-3, 2007 (actual $7,072). 15. Karaganda, Kazakhstan EITI conference, January 29, 2009 - attendance by Kyrgyz representatives (actual $5,308). 16. Implementing EITI in Asia - Introductory Seminar, March 1-4, 2010. 17. Lima Multi-stakeholder Group meeting, July 23, 2010 (actual $12,216). 18. EITI at Work DVD, shown during the EITI Board meeting, October 21, 2010. 19. National Coordinators’ Workshop, Brussels, November 22-24, 2010 (actual $53,000). 20. Voices of EITI Stakeholders publication, distributed at the 5th EITI Global Conference in Paris, March 2-3, 2011 (actual $26, 891). 21. EITI Regional Workshop for Beginner Countries, Lome, May 18-20, 2011 (actual $73,561). 22. Learning Event on New EITI Rules, Washington, DC, June 21-22, 2011 (actual $15,924). 23. Implementing EITI at the Subnational Level, published October 2011 (actual $75,660). 24. Workshop for EITI Practitioners in East Asia and the Pacific, October 24-31, 2011 (actual $77,476). 42 BUILDING ON PROGRESS TO IMPLEMENT THE EITI STANDARD TABLE 3: SOURCES AND USES OF FUNDS (IN USD ‘000; EXPENDITURE ACTUALS AS OF JUNE 30, 2013) Unpaid Contribution Inception to (approx. US$ Date Actuals equivalent) Total SOURCES OF FUNDS Donor Contributions Australia 14,162 1,319 15,481 Belgium 1,395 1,395 Canada 12,520 12,520 Denmark 458 458 European Commission 1,496 1,496 Finland 1,062 1,062 France 1,607 1,607 Germany 2,679 664 3,343 Japan 300 300 The Netherlands 1,500 1,500 Norway 1,728 1,728 Spain 4,925 4,925 Switzerland 1,500 1,500 UK DFID 6,699 6,699 USA 13,476 13,476 Total Donor Contributions 65,507 1,983 67,490 Admin. fee, net of investment income (MDTF only) -1,365 -59 -1,425 Confirmed and Expected Funds as of June 30, 2013 64,142 1,924 66,065 USES OF FUNDS A Country Work Programs 1/ 17,591 33,895 51,486 Upcoming TF Grants to Countries 14,005 14,005 Technical Assistance by World Bank 10,996 8,218 19,213 Kazakhstan (TF056869) - $0.1 m allocated; closed 12/31/06 73 73 Global Work Programs Knowledge and Learning 3,466 2,550 6,016 Proposal for CSO grants 1,812 8,373 10,185 Vendor/grantee managed 1,144 5,041 6,185 Direct WB-managed 668 3,332 4,000 Fiduciary and program management 1,244 750 1,994 B Allocated under TF Grant Agreements (being disbursed) 16,322 0 16,322 Afghanistan (TF099986) 275 275 Albania (TF096009) - $0.280 m allocated; closed 6/30/12 272 272 Albania II (TF012148)-$0.110 m allocated; closed 12/22/12 79 79 Burkina Faso (TF094795) - $0.245 m allocated; closed 10/22/12 224 224 Cameroon (TF056698) - $0.130 m allocated; closed 6/30/08 99 99 Cameroon II (TF097366) 0 0 CAR (TF093887) - $0.300 m allocated; closed 10/22/12 291 291 Congo Republic (TF011465) 350 350 Cote d'Ivoire (TF093112) - $0.1743m allocated; closed 6/30/12 130 130 DRC (TF091920) - $0.500 m allocated; closed 8/31/11 495 495 EITI MDTF 2013 ANNUAL REPORT 43 Unpaid Contribution Inception to (approx. US$ Date Actuals equivalent) Total DRC II (TF013846) 495 495 Eq. Guinea (TF093704) - $0.260 m allocated; closed 10/29/10 0 0 Ghana (TF057337) - $0.249 m allocated; closed 12/31/09 218 218 Ghana Post Compliance I (TF010102) 400 400 Guatemala (TF010050) 300 300 Guinea (TF056637) 419 419 Indonesia (TF099302) 1,050 1,050 Iraq (TF097358) 840 840 Kyrgyz Rep (TF090545) - $0.266 m allocated; closed 6/30/11 264 264 Kyrgyz Rep Post Compliance I (TF099968) 200 200 Liberia (TF091608) - $0.400 m allocated; closed 6/30/09 399 399 Liberia II (TF094794) - $0.175 m allocated; closed 12/31/10 165 165 Madagascar (TF093111) - $0.350 m allocated; closed 9/30/12 344 344 Mali (TF094007) - $.210 m allocated; closed 10/22/12 185 185 Mauritania (TF056657) - $0.240 m allocated; closed 6/30/08 148 148 Mauritania II (TF097286) 275 275 Mongolia (TF058156) - $0.304 m allocated; closed 12/31/09 304 304 Mongolia II (TF094658); $0.275 m allocated; closed 10/31/11 275 275 Mongolia Post Compliance I (TF099918) 250 250 Mozambique (TF096920) - $0.375 m allocated; closed 5/31/12 361 361 Mozambique II (TF010226)-$0.350m allocated; closed 12/31/12 350 350 Niger (TF093888) - $0.245 m allocated; closed 6/30/12 240 240 Niger PC I (TF099427) - $0.2 m allocated; closed 10/22/12 200 200 Nigeria (TF056072) - $2.2 m allocated; closed 3/28/08 1,665 1,665 Nigeria II (TF095381);$0.900 m allocated; closed 3/31/12 761 761 Nigeria PC I (TF014025) 900 900 Peru (TF057870) - $0.350 m allocated; closed 9/30/10 337 337 STP (TF093113) - $0.110 m allocated; closed 6/30/10 1 1 Sierra Leone (TF093541) - $0.310 m allocated; closed 4/30/11 279 279 Tanzania (TF096777); $0.425 m allocated; closed 3/31/12 336 336 Tanzania II (TF012532) 350 350 Timor-Leste (TF093143); $0.230 m allocated; closed 12/31/11 186 186 Togo (TF098712) 275 275 Trinidad & Tobago (TF011834) 325 325 Yemen (TF091467) 350 350 Zambia (TF095437) - $0.320 m allocated; closed 6/30/12 309 309 Zambia PC I (TF013154) 350 350 Total Uses of Funds (actuals and projected) 33,913 33,895 67,808 44 BUILDING ON PROGRESS TO IMPLEMENT THE EITI STANDARD Unpaid Contribution Inception to (approx. US$ Date Actuals equivalent) Total EXPECTED AVAILABLE FUNDS as of June 30, 2016 -1,743 Incremental costs implementation of new EITI standard, not included in work plans and global knowledge: Sign-up steps 3,600 Create PFM system 1,000 TA for Contextual information 3,000 Disclosure of revenues and payments to governments 1,600 Validation 1,000 TOTAL 10,200 EXPECTED SHORTFALL, including EITI Standard, as of June 30, 2016 -11,943 1/Includes amounts planned/set aside for TF grants to countries before such grants are actually signed with countries. EITI MDTF 2013 ANNUAL REPORT 45 TABLE 4: WORK PLAN RECONCILIATION FROM DECEMBER 31, 2012 TO JUNE 30, 2013 Total Original work plan, December 2012 51,321 NEW GRANTS Afghanistan Phase II 300 Chad 375 Ghana PC-2 400 Guatemala Phase II 300 Guyana 300 Honduras 300 Kyrgyz Republic PC-2 300 Madagascar Phase II 480 Mauritania PC-2 350 Mozambique PC-1 350 Myanmar 450 Niger PC-2 200 Philippines 600 Sao Tome re-engagement 285 Togo PC-1 270 Trinidad & Tobago Phase II 300 REVISIONS TO APPROVED GRANT ALLOCATION Cote d'Ivoire PC-1 100 Senegal 120 Solomon Islands 50 NEW ALLOCATIONS FOR BANK-EXECUTED PORTION OF WORK PLANS Afghanistan Phase II 100 Ghana PC-2 120 Guatemala Phase II 75 Guyana 50 Kyrgyz Republic PC-2 30 Madagascar Phase II 100 Mauritania PC-2 100 Mozambique PC-1 112 Myanmar 90 Philippines 128 Sao Tome re-engagement 100 Togo PC-1 100 Trinidad & Tobago Phase II 50 INCREASE/DECREASE IN ALLOCATIONS OF BANK-EXECUTED PORTION PURSUANT TO WORK PLAN REFINEMENT: Afghanistan 100 Colombia 120 Cote d'Ivoire PC-1 47 DRC Phase II 42 Dominican Republic 100 Equatorial Guinea -7 Ethiopia 200 46 BUILDING ON PROGRESS TO IMPLEMENT THE EITI STANDARD INCREASE/DECREASE IN ALLOCATIONS OF BANK-EXECUTED PORTION PURSUANT TO WORK PLAN REFINEMENT (CONTINUED): Guatemala 49 Guinea Phase II 100 Honduras 120 Indonesia 80 Indonesia Phase II 46 Iraq 150 Kazakhstan 50 Liberia PC-1 50 Mongolia PC-1 50 Peru PC-1 150 Senegal 100 South Sudan 20 Tajikistan 45 Yemen 150 Zambia PC-1 60 RETURN OF UNDISBURSED BALANCE FROM CLOSED GRANTS Albania II -31 Burkina Faso -21 Cameroon Phase II -200 Central African Republic -9 Cote d'Ivoire -44 Guinea -150 Madagascar -6 Mali -25 Mozambique -14 Niger -5 Nigeria Phase II -139 Zambia -11 INCREASE IN CSO SUPPORT, GLOBAL KNOWLEDGE, LEARNING AND FIDUCIARY 2,334 INCREASES DUE TO NEW EITI STANDARD: Regional training 500 Regional communications training 500 World Bank managed program 2,000 Managed by international CSOs 3,000 ROUNDING 1 Total revised work plan, October 2013 67,808 EITI MDTF 2013 ANNUAL REPORT 47 http://www.worldbank.org/en/topic/extractiveindustries