WB Encourages Candidate Countries to Complete EITI Validation Process
OREANDA-NEWS. Ahead of the Extractive Industries Transparency Initiative (EITI) Board meeting in Berlin on April 15-16, the World Bank Group called on candidate countries to maximize their efforts to achieve the key transparency milestone of completing EITI validation as soon as possible, reported the press-centre of WB.
Two countries – Azerbaijan and Liberia – completed validation in 2009 and were subsequently designated “EITI-compliant.” Sixteen more candidate countries are now working to complete the validation process. Eight of those countries have already sent in a draft or final validation report for review by the EITI Board. Three countries have validators working on the reports and will soon issue them. Five countries are in a bid process for hiring validators. And only four countries have not yet begun the validation process, of which two are in/or seeking a voluntary suspension.
“The World Bank Group is encouraged by the tremendous progress that has been made and we are supporting several countries in their efforts to finish the validation process,” said Paulo de Sa, Manager of the World Bank’s Oil, Gas, and Mining Policy Division. “Transparency in the extractive industries is vital for achieving poverty reduction, and so we ask countries not to give up on its efforts.”
The EITI process seeks to commit oil, gas, and mining companies to publish the payments they make to governments and to commit governments to publish the revenues they receive from companies in the sector. The two sets of numbers are compared and give societies in the respective countries the opportunity to monitor the prudent use of income from extracting and selling natural resources like oil, gas, gold, copper, and others.
In Berlin, the EITI Board will assess the progress of countries implementing EITI, particularly in reaching the milestone of completing external validation. Compliance establishes that a country's revenue reporting standards in its extractive sector have achieved a greater level of transparency. The EITI Board will also assess each country’s request for extension of the validation deadline on its own merit.
The World Bank Group and donor partners to the multi-donor trust fund (MDTF), managed by the Bank, are also meeting in Berlin on April 13 to assess the progress of the MDTF work program in over 40 countries, some of which are either EITI implementing countries or interested in adopting EITI principles. Through technical assistance, supplemented by donor funding in the form of grants, the World Bank Group over the past few years has supported countries in moving toward validation.
“We are providing technical assistance and funding support to these countries’ transparency reforms as a pathway to development through better management of their natural resources,” said Anwar Ravat, Program Manager of the World Bank’s multi-donor trust fund (MDTF) for EITI implementation in countries around the world.
About the World Bank and multi-donor trust fund (MDTF) partners for EITI implementation
Comprised of 185 member governments, the Word Bank’s primary focus is to help the world’s poorest people and the poorest countries. The World Bank uses its financial resources, its staff, and extensive experience to help developing countries reduce poverty, increase economic growth, and improve their quality of life. 13 donor partners support the EITI technical assistance through the Multi-donor Trust Fund administered by the World Bank: Australia, Belgium, Canada, the European Commission, Finland, France, Germany, Netherlands, Norway, Spain, Switzerland, UK, and USA. For more information on the World Bank’s work with the EITI, visit http://www.worldbank.org/eititf.
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