EITI International Secretariat 2011 Report

Transcription

1 January 2012 Government revenues from natural resources have too often been badly managed, veiled in secrecy and fraught with corruption. A coalition of 50 countries, civil society organisations and 60 of the largest oil, gas and mining companies is now working together to change this. 35 countries are now implementing the EITI (Extractive Industries Transparency Initiative), the global standard for improving transparency of revenues from natural resources. Citizens in these countries can find out how much their governments receive from their natural resources, and hold them to account. EITI International Secretariat 2011 Report 1. Introduction This report provides an account of the EITI International Secretariat s activities in It reflects the 2011 workplan 2 agreed by the Board at its meeting in Dar es Salaam in October The EITI highlights of 2011 include: Eight countries completed the Validation process bringing the total number of validated countries to 25. Eight candidate countries that had been deemed close to Compliant in 2010 underwent an EITI Secretariat Review to assess its progress. Six countries became EITI Compliant (Kyrgyz Republic, Mali, Mongolia, Niger, Norway and Yemen). This doubled the number from the beginning of 2011 to 12 Compliant countries. 19 countries produced a total of 21 EITI Reports. 30 countries have now produced EITI reconciliation reports, and there were 78 reports in total by the end of Seven countries (Albania, Burkina Faso, Iraq, Madagascar, Mozambique, Tanzania and Zambia) published their first EITI Reports. Now, more than half a billion people have access to information on revenues from their country s natural resource sector many for the first time. Almost 850 companies have reported. The Secretariat published a document assessing and analysing the key information on government revenues and companies payments from these reports which can be found on the EITI website. 3 Guatemala and Trinidad and Tobago began implementing the EITI, expanding EITI in Latin America and bringing the total EITI implementing countries to 35. Clare Short was elected as the new EITI Chair in March. 1. This report is distinct from the glossy EITI Progress Report which is published in time for the Global EITI Conferences, with the next Progress Report, , scheduled for publication ahead of the Global Conference in The financial reporting, including the audited accounts, is being presented separately. In September, the United States announced that it would implement the EITI, becoming the second OECD country to commit to EITI implementation. Several other countries declared their intention to implement the EITI including Solomon Islands, South Sudan and Tajikistan. Australia launched a pilot to implement the EITI in October giving recognition to the EITI standard as a governance tool. EITI continued to be a platform for policy dialogue at the international level with Heads of State, CEOs and leaders of international civil society taking part in the EITI Global Conference in Paris in March. Around 1000 participants from more than 70 countries gathered in Paris to explore the impact that the EITI is having in implementing countries and to discuss the future of the EITI. The first EITI National Exhibition took place in the margins of the EITI Global Conference, displaying the EITI materials from the 35 implementing countries: reports, posters, newspaper articles, videos, radio programmes, cartoons, T-shirts, etc. Several new publications were launched, including the EITI Progress Report, Revised EITI Rules, Good Practice Notes, an EITI Video and EITI case studies. These have been translated into one or more languages. 2. /workplan. 3. /document/extracting-data. 1/14

2 Introduction 13 new companies declared their support for the EITI: Avocet, Centerra Gold, DNO, Dundee Precious Metal, Eramet, GALP Energia, Glencore, Intierra, Kinross Gold Corporation, Mærsk Oil, Pacific Rubiales, Tata Steel Cote d Ivoire and Tullow Oil. The EITI is now supported by 61 companies internationally. Leaders at the 2011 summits of the G20 and of the Commonwealth Heads of Government issued clear endorsements of the EITI. The G20 leaders stated that the disclosure of payments and revenues empower[s] citizens and contributes to reducing poverty. An evaluation of the EITI undertaken in early 2011 found that it has built a credible international brand that is attracting new members and support at country level and has established functioning multi-stakeholder groups, reconciliation reports, dissemination and public debate, and increased demand for transparency in the sector. However, it also noted some major challenges ahead, including recommending a fundamental change to the Validation process to ensure that the EITI brings about fundamental changes. This reflected a concern that EITI Compliance alone does not necessarily bring about the aims sets out in the EITI Principles established in Even if EITI Compliance is alone not sufficient to generate desired change, many countries are not achieving compliance and a few appear to be losing political momentum. The adoption of the revised EITI Rules contributed improving the quality of the reporting, amongst other things. The recommendations in the evaluation are noted in the 2012 workplan 4 and are being addressed in on-going Board strategy discussions. Two countries, Yemen and Madagascar, were suspended from the EITI implementation process due to a nonconducive environment for effective multi-stakeholder dialogue. The International Secretariat would like to thank all EITI stakeholders for their hard work in 2011 and the invaluable contribution they have made in ensuring the progress seen in countries implementing the EITI. The Secretariat looks forward to meeting the challenges that the EITI will face in the coming year with the help and support of dedicated stakeholders. It remains committed to furthering the principles of transparency, cooperation and consensus building upon which the EITI was created. Civil society, government and company representatives discussing revenues from tin mining at EITI community forum in Bangka, Indonesia. 4. /workplan. 2/14

3 EITI implementation activities 2. EITI implementation activities The EITI International Secretariat s first priority as set out in the 2011 workplan 5 was support to implementing countries. In 2011, two new countries became EITI Candidate countries, Guatemala and Trinidad and Tobago, taking the total number of EITI implementing countries to 35. Of these, 19 published an EITI Report, eight went through Validation, and eight undertook Secretariat Reviews. In addition, various implementing countries were busy with the following: the establishment of multi-stakeholder groups and national secretariats; the identification of funding; awareness raising and dissemination activities; capacitybuilding programmes; scoping studies; development of websites; and the promotion of debate. These were key themes raised by the Heads of States and EITI national champions at the Paris Conference in March. The implementation work was carried out by host governments and national multi-stakeholder groups, in close collaboration with various organisations, in particular the World Bank, which provided political, technical or financial support to EITI programmes. The staff at the International Secretariat were in frequent contact with implementing countries and EITI partners, providing guidance on EITI requirements, coordinating and participating in technical assistance delivery, and collecting and sharing best practices. This technical and organisational support from the International Secretariat augmented technical assistance available through a range of channels, including the World Bank-administered Multi-Donor Trust Fund, and technical assistance projects administered by regional development banks, bilateral development agencies and non-governmental organisations. Implementation missions in 2011 provided an important opportunity for the International Secretariat to inform and explain the EITI Rules to national EITI stakeholders. 18 implementing countries were visited by the International Secretariat in During these visits, the Secretariat met with government, company and civil society representatives. The Secretariat engaged with technical assistance providers to increase understanding of the revised rules. Every implementing country was provided with direct training about the revised rules (see below on training). During 2011 the Chair and the Secretariat visited the following implementing coutnries: January: Burkina Faso, Democratic Republic of Congo February: Guatemala, Togo April: Albania, Cameroon, May: Democratic Republic of Congo, Republic of Congo, Guinea, Mozambique, Tanzania, Togo, Zambia June: Azerbaijan, Kyrgyzstan July: Peru, Indonesia, Madagascar, Sierra Leone, Billboard at the roadside in Sierra Leone 5. /workplan. 3/14

4 EITI implementation activities August: Zambia October: Azerbaijan, Indonesia, Mauritania, Timor Leste November: Mozambique EITI Reports. As EITI reporting gained momentum, the number of reports published increased and the quality of data disclosed steadily improved. In the 30 countries that have produced EITI Reports, 106 fiscal years of data is covered in 78 reports. Citizens of Albania, Burkina Faso, Iraq, Madagascar, Mozambique, Tanzania and Zambia, can now see payments from the extractive sector for the first time. Other EITI implementing countries, such as Kyrgyzstan, Mongolia, Niger, Nigeria and Timor-Leste, published their second or third report. Although the introduction of the 2011 edition of the EITI Rules (see below) will improve the regularity and content of EITI Reports, much remains to be done in improving the EITI Reports and how the data is presented. Even though they differ widely, EITI Reports have started to become a useful tool for analytical work as shown in the Secretariat publication Extracting Data. 6 For example, these reports reveal that the Nigerian government received US$ 400 on behalf of each citizen in 2008 from the production of oil and gas. This figure was US$ 15,000 per citizen in Norway, US$ 2,500 in Timor-Leste, US$ 200 in Mongolia and US$ 30 in Niger. Revised Rules. The EITI Board agreed a new edition of the EITI Rules in February The EITI Rules bring together all of the requirements for implementing the EITI. The changes in the EITI Rules edition were the result of an extensive consultation process, and based on detailed feedback received from many EITI stakeholders. Amongst other changes, the new Rules required that EITI Reports were timely and produced annually. While efforts were made to ensure that the new Rules came into effect as soon as possible, implementing countries also needed time to adjust as there were EITI Reports, Validations and corrective actions being undertaken during the year based on the previous version of the Rules. Peer Learning. Peer learning continued apace amongst EITI Implementing Countries. For example, in March, representatives from Mongolia and the Kyrgyz Republic were invited to share their experiences when Afghanistan EITI organised a workshop for EITI stakeholders in the country. In June, the governments of Azerbaijan and Norway hosted a meeting about EITI and resource transparency. Also, in June, more than 30 representatives from Azerbaijan, Kazakhstan, Kyrgyzstan, Mongolia and Tajikistan gathered in Cholpon-Ata, Kyrgyzstan, for the second EITI Issyk-Kul International Conference. The purpose of the conference, entitled Beyond Validation: looking to the future of EITI, was to share experiences with implementation and identify priorities ahead. In November, Ken Salazar, US Secretary The EITI Rules 2011 edition, launched in March 6. /document/extracting-data. 4/14

5 EITI implementation activities of Interior and US lead on EITI, met with Ola Borten Moe, Norwegian Minister of Petroleum and Energy, to discuss cooperation in the energy sector between Norway and the US, including EITI implementation. Supporting technical assistance providers. The EITI continues to rely on support from Supporting Countries, international agencies, and NGOs, both internationally and within implementing countries. Internationally, engagement with these groups took a number of forms: EITI materials, s, telephone conversations, presentations, conferences, and face-to-face meetings. The International Secretariat regularly engaged with key agencies specifically the World Bank, Publish What You Pay, the Revenue Watch Institute, German cooperation agency GIZ, the Norwegian Oil for Development, and the UK s DFID. The Secretariat undertook a two-day training meeting with World Bank EITI task team leaders in Washington in June. At the national level, most of the engagement took place in the capitals, but the International Secretariat used its networks and know-how to bring these agencies together and bring coordinating energy to the activities. A roundtable of EITI technical assistance providers, held in Paris, sought to help to keep other stakeholders informed, build networks, and come to an increasing joint understanding of each agency s comparative advantage. Validation. Eight countries undertook validation in These processes involved close liaison and incountry visits with EITI national coordinators, multistakeholder groups and stakeholders in implementing countries, as well as international partners such as the World Bank. Support included reviewing draft terms of reference, contracts, no objection reviews as required in Policy Note #2, and liaison with the accredited validators. In its role of supporting the Validation Committee, the Secretariat also undertook monitoring of the Validation processes, reviewed draft and final Validation reports, and advised on policy issues relating to Validation. Eight countries which were deemed close to compliance in 2010 were assessed by the International Secretariat in Five of these reviews were considered by the Board. These assessments were time and resourceconsuming for the Secretariat. Compliant countries. The Validation reports for the Compliant countries included recommendations for the continuation and improvement of the process in each country. The Secretariat encouraged and provided support to Compliant countries to advance innovations in their national process beyond the EITI core and to deepen implementation. The EITI National Exhibition at the Global Conference in Paris 5/14

6 EITI implementation activities EITI Workshops and training. The EITI International Secretariat works closely with its partners to provide training and build capacity amongst those preparing to implement or already implementing the EITI. Training aims to respond to the growing number of implementing countries, stakeholders and EITI processes that become deeper and more complex, requiring more specialised capacities, integrating the increasing body of lessons learnt, information and documentation. In the margins of the Jakarta Board meeting on 25 October 2011, the EITI International Secretariat brought partners together to discuss coordination of activities for 2012 and beyond. EITI workshops were held in cooperation with development partners from the World Bank, the German Government (Inwent/GIZ), bilateral agencies and international civil society organisations such as the Revenue Watch Institute (RWI) and Publish What You Pay (PWYP). Workshops often cover specific aspects of EITI implementation such as civil society participation and communicating the EITI. Trainings and workshops that involved the International Secretariat included: January: PWYP training for Francophone African civil society organisations, Ouagadougou May: EITI training for Francophone African EITI stakeholders in Berlin, with DRC, Congo, Gabon, CAR, Mali, Niger, Mauritania, Rwanda, Cameroon (funded by German government) May: Training for EITI Guinea, Conakry (funded by German Government) June: EITI training for EITI stakeholders from Togo, Burkina Faso and Chad (World Bank funded) June: RWI training for Iraqi civil society, Beirut September: Workshop on the revised EITI Rules in Nairobi, for EITI stakeholders and donor representatives from Ghana, Mozambique, Nigeria, Sierra Leone, Tanzania and Zambia (funded by German Government) October: Asia EITI regional meeting, Jakarta (World Bank funded) Training for Iraqi civil society in Beirut, June 6/14

7 Outreach activities 3. Outreach Activities 3.1 Countries The EITI International Secretariat worked with a wide array of stakeholders to strengthen the EITI as a global standard, attract new countries and supporters, and forge stronger links with like-minded organisations. The Chair and Secretariat undertook outreach missions in 2011 to the following countries: Australia, Brazil, Canada, Chile, Colombia, Dominican Republic, Ethiopia, Kenya, Libya, South Africa, South Sudan, Uganda, UK and US. The Secretariat hosted 13 delegations in Oslo including ones from Ecuador, Greenland, South Africa and Uganda, to discuss the benefits of EITI implementation. In Africa, the Secretariat visited South Sudan and Uganda to meet with key stakeholders and discuss support to implementation following commitments from these two countries to implement the EITI. High level policy dialogue continued with the Government of South Africa on support to the EITI. In Libya, the Secretariat participated in a roundtable on transparency and governance in the oil sector, and initiated a dialogue with the National Transition Council and civil society groups on a possible implementation of the EITI. In December, the Secretariat visited Ethiopia to observe progress with its domestic revenue transparency process and discuss the government s intention to renew its application for EITI Candidature. In Asia, the Secretariat, together with the World Bank, hosted an outreach seminar in Jakarta in late October. The Secretariat continued to respond to requests for information and support from Papua New Guinea, the Philippines and the Solomon Islands. In November, EITI Chair Clare Short travelled to Australia and met with Minister of Foreign Affairs Kevin Rudd who had announced the previous month that the Australian government would pilot EITI implementation. The Secretariat strived to strengthen dialogue with partners and stakeholders in Bulgaria and Ukraine which are considering implementing the EITI. 3.2 Companies and Institutional Investors 61 of the world s largest oil, gas and mining companies support and actively participate in the EITI process through their country operations in implementing countries, international-level commitments, and industry associations. The EITI International Secretariat had extensive contact with companies supporting the EITI and with companies considering supporting the EITI. This led to 13 new companies expressing their support at the international level and becoming EITI Supporting Companies: Avocet, Centerra Gold, DNO, Dundee Precious Metal, Eramet, GALP Energia, Glencore, Intierra, Kinross Gold Corporation, Mærsk Oil, Pacific Rubiales, Tata Steel Cote d Ivoire and Tullow Oil. Institutional investors continued to provide strong support to the EITI, especially in urging companies not yet supporting the EITI to do so and deepening engagement with existing ones. In 2011, the more than 80 institutional investors supporting the EITI had over US$ 16 trillion in assets under management. The International Secretariat assisted in organising the meetings of the institutional investor constituency group during In Latin America, outreach focused on Brazil, Chile, and Colombia. The Secretariat and the World Bank conducted joint missions to Chile, Colombia and the Dominican Republic. Asia EITI regional meeting, Jakarta, October 7/14

8 Gloabal Conference Communications Global Conference The 5th EITI Global Conference Transparency Counts was held on 2-3 March. It was an opportunity to discuss the impact of the EITI, share lessons learnt from implementation and address future challenges for the EITI. Three Heads of State, over 30 Ministers, other government leaders, companies and civil society organisations, and around 1,000 participants from more than 70 countries gathered in Paris to shape the future of the EITI. The conference sought to put national EITI implementation front and centre. It focused on how the EITI was making a difference to the nearly half a billion people in countries who had access to reliable revenue figures from the production of their country s natural resources. An EITI National Exhibition reminded participants that, amongst all the debates on international disclosure requirements, the EITI is making a difference on the ground in 35 countries. EITI Chair s Awards recognised three outstanding EITI efforts that have worked together in difficult circumstances to achieve the remarkable, and have gone beyond the EITI minimum standard. The Chair awarded them to Mongolia for consistent improvement in reporting, the Central African Republic for rapid implementation, and the Kyrgyz Republic for achievement despite political instability. The conference included six plenary sessions, nine executive parallel sessions and several workshops and seminars held in the margins of the event. In all, over 120 speakers directly addressed the conference, along with many who made contributions from the floor. The conference attracted considerable media interest with the participation of around 70 accredited journalists from 15 countries. The days during and following the conference saw an unprecedented peak in newspaper articles about the EITI. A full conference report is available at files/final_report_5th_eiti_global_conference.pdf. 5. Communications The EITI International Secretariat communicates regularly with a wide and diverse set of stakeholders, not only representatives from governments, companies and civil society, but also from academia, think-tanks, traditional media, social media, and interested citizens. The results that the EITI generates depend on deepening relationships with these stakeholders and the quality of the communication with them. During the year, the Secretariat undertook a range of activities to improve its communications both internally and externally. 5.1 Media The EITI Secretariat reached out to international media whenever important EITI events and key developments occurred. This was done both by distributing press releases as well as via targeted approaches to established press contacts. In December, the Secretariat further strengthened its media outreach capacity by establishing a partnership with a press release distribution service. All staff participated in media training. Media interest in the EITI increased markedly. Measured by the number of news articles referencing the EITI, media interest increased by 17% from 2010 (source: factiva.com). This increase can, to a certain extent, be explained by improved communications efforts and better relationships with journalists that now know about the EITI, the EITI Global Conference and big developments such as the US commitment to implement the EITI. 8/14

9 Communications 5.2 Website is the Secretariat s communications channel with the broadest reach. The site saw a steady increase in users and now receives an average of almost 13,000 unique visits per month, up from 10,410 in All materials are available in English and most of them in French, many in Russian and some in Arabic and Spanish. EITI Blog. The EITI Blog is a forum for ideas about the role of transparency and natural resources in creating economic growth and fighting poverty and corruption. The blog is authored by key stakeholders of the EITI and International Secretariat staff. The EITI Newsletter. This redesigned bi-monthly e-publication reached 2,300 subscribers. The newsletter is produced in English and French. To sign up to the newsletter, visit. A specific newsletter targeting extractive companies was also produced for the first time. EITI Video: Transparency Counts. A second video on how the EITI has had an impact in implementing countries was launched at the Paris Conference. This video and others can be viewed at /eiti/ video. 5.3 Publications The EITI Secretariat has developed a body of publications now used by implementers, other stakeholders and newcomers to the EITI. The full range of current publications can be seen on page 15. Some of the new or revised publications include: EITI Progress Report brings together highlights from the 33 countries that were implementing the EITI when the report was launched at the EITI Global Conference in Paris, 2 March The report is available in English and French at /document/ progressreport. EITI Rules 2011 edition. On 16 February 2011, the EITI Board agreed a revised edition of the EITI Rules. The changes are the result of an extensive consultative process, and based on detailed feedback from many EITI stakeholders. The EITI Rules 2011 edition is available in French, Arabic, Portuguese, Russian and Spanish at www. eiti.org/document/rules. EITI Fact Sheet is a concise four-page introduction to the EITI. A redesigned version was launched in mid It is available in English, French, Russian, Spanish, Portuguese and Arabic. Extracting Data is an overview of around 80 EITI Reports that compiles key information such as total government revenues and companies payments from EITI Reports published in 30 countries. A draft of the first annual edition was published in October. It is available at www. eiti.org/document/extracting-data. Highlights of 2011 international media coverage: The EITI featured in seven op-ed pieces or articles in the Financial Times (London). Two articles in The Economist featured the EITI, including one on 8 October that said: This ingenious scheme makes oil and gas companies publish the details of what they pay to governments, with the aim of giving citizens a chance to see how much of those payments actually end up in public coffers. A total of 1,855 news articles mentioned the EITI (source: factiva.com). Clare Short appeared on BBC World Debate: Does Mining Benefit Africa PBS NewsHour (US) aired on 31 October: For Liberia, Natural Resources Are Blessings, Curses on Road to Democracy. 9/14

10 Servicing the Board 6. Servicing the Board The EITI International Secretariat is accountable to the EITI Board and is responsible for the day-to-day running of the EITI. It therefore works with the Chair and Board to develop policy, draft papers, prepare agendas, oversee translation of documents and make other practical arrangements for Board meetings. In the lead up to the Global Conference, the International Secretariat worked with the Board to facilitate a smooth transition to a new Chair and Board. With the appointment of Clare Short, the Chairman s office in Berlin was closed in the end of March. The International Secretariat supported the new Chair by organising meetings, preparing briefs and speeches, and making travel arrangements. During 2011, the International Secretariat organised trips for the Chair to the Democratic Republic of Congo, Mauritania, Mozambique, the Republic of Congo, Indonesia, Timor Leste, and Zambia, as well as provided the Chair support for several conferences and visitors to the UK, and media engagements. The International Secretariat organised four EITI Board meetings in 2011: Paris (two meetings) in March; Amsterdam in June; and Jakarta in October. During the course of the year 31 Board circulars were issued and almost 40 Board papers were prepared for EITI Board meetings. The Secretariat produced five implementing country progress reports for the Board identifying the main obstacles being faced in individual countries and four outreach updates. The International Secretariat plays a key role in convening and supporting the deliberations of Board committees and working groups, and ensuring effective communication and information exchange via Board circulars and committee meetings. 6.1 Validation Committee The Validation Committee met 13 times after the Paris Conference. In that time, it assessed seven Validation reports and eight Secretariat Reviews as well as extension requests and applications for renewal of candidature. Developing transitional procedures for the 2011 edition of the EITI rules and identifying priority issues for a review of the Validation model were other important aspects of the Committee s work in Rapid Response Committee There were no situations requiring the convening of the Rapid Response Committee in Finance Committee The Finance Committee met seven times. Its major product was the Revenue Review presented to the Jakarta Board meeting. The Revenue Review made recommendations that will provide the main planks of the Committee s work in 2012: cash flow profile, generic wording for the multi-year funding agreements, assessment and strategy of funding. The Committee reviewed the EITI s 2010 and 2011 expenditures in detail on behalf of the Board, and considered that the Secretariat had made effective and appropriate use of its funding. 6.4 Governance Committee The Governance Committee met on five occasions in 2011 to discuss several issues related to the governance of the EITI. A major issue discussed was how the EITI should deal with countries implementing the EITI led by governments whose recognition is disputed. The Committee also developed papers on the functioning of Board Committees, on decisions between meetings, on terms of reference of Board Committees, and on the policy vis-à-vis observers. 6.5 Audit Committee The Audit Committee met once in 2011 to confirm its understanding that the auditor was satisfied with the financial probity and management of the Secretariat. 6.6 Outreach and Candidature Committee An EITI Outreach and Candidature Committee of the Board was established in October 2010 to ensure that new countries seeking to apply for Candidature are adequately prepared and to strengthen the Board s involvement in outreach. The Committee met six times in 2011 and began to develop a global outreach strategy for the EITI. 10/14

11 Managing the Secretariat EITI Finances 7. Managing the Secretariat The International Secretariat began 2011 with ten full time staff spread over two locations, with additional support from interns, and three part-time special advisers. Following the end of Peter Eigen s tenure as Chair, the Berlin office was closed. Clare Short is supported by the Oslo office. The Board agreed that the International Secretariat should steadily grow. In 2011, the main area of growth was increased capacity to analyse and assess EITI Reports. Communications skills and capacity have also been strengthened by the addition of a senior parttime advisor. By the end of 2011, the Secretariat had the equivalent of 12 full time staff and additional support from interns, and three part-time special advisers. 8. EITI Finances The funding of the international management of the EITI reflects its multi-stakeholder support. The almost US$ 4.3 million budget in 2011 covered the salaries and associated costs for the team, Board meetings, travel costs, consultants and communications. Most significantly in 2011, the budget also covered the Global Conference. Funding is raised from all the supporters of the EITI according to a funding formula which is reflected in the pie chart below. In 2011, the EITI Board reviewed the International Secretariat s revenue process and principles (see above). The 2011 accounts have not been finalised nor audited, so the below is based on provisional data only. Audited figures will be available in March Income. In 2011, funding received by the Secretariat totalled around US$ 4.3 million, up from US$ 3.5 million in The International Secretariat successfully widened its funding base to 43 organisations and countries in 2011, up from 34 in The Government of Australia was amongst the most significant new contributors. The International Council on Mining and Metals (ICMM) acted as a funding channel for their members. Expenditure. The International Secretariat has managed its overall expenses in line with the budget approved by the Board at its meeting in Dar es Salaam in October It spent almost US$ 4.5 million in 2011 against a forecast budget of US$ 4.3 million, however the outturn figures include spending on the Global Conference for which extra money was raised. The below chart is a summary of EITI expenditure in Revenue (total $4.3m) provisional figures 2011 Expenditure (total $4.3m) provisional figures Mining 18% Institutional investors <1% Norway 10% Governments and International Development Agencies 54% Staff and associated costs 51% Implementation support 8% Outreach support 4% Board meetings 5% EITI conferences 22% Oil and gas 16% Communications 3% Office and administration 7% 11/14

12 Monitoring and evaluation 9. Monitoring and evaluation A thorough evaluation of the EITI was commissioned by the EITI Board and conducted from October 2010 to May 2011 by Scanteam. 8 The purpose and overall aim of this evaluation was to document, analyse and assess the relevance and effectiveness of the EITI, where the EITI s objectives are to strengthen transparency of natural resource revenues recognising that this can reduce corruption, and that the revenue from extractive industries can transform economies, reduce poverty, and raise the living standards of entire populations in resource-rich countries (EITI Articles of Association 2.2). The evaluation combined an assessment of the EITI results at country and global levels, and evaluated whether EITI s governance and support structures are fit for purpose. These included the Board, International Secretariat and the EITI s policy and procedural framework. The evaluation found that the EITI had built a credible international brand that was attracting new members and support at country level and had established functioning multi-stakeholder groups, reconciliation reports, dissemination and public debate, and increased demand for transparency in the sector. It also noted some major and fundamental challenges ahead, especially relating to the ability of the Validation process to develop wider societal changes. The EITI Board invited stakeholders to comment on the evaluation report on the EITI blog. Following the evaluation and the related discussion, the international EITI Board agreed that there was a need to carefully consider strategic options and established a Strategy Working Group which spent much of the second half of the year reviewing the current assessment systems for the EITI standard. The Secretariat has been supporting this process with the production of papers and organisation of some of the meetings. At the end of 2011, the Secretariat commissioned a piece of work on alternative frameworks for assessing compliance with the standard and EITI performance. Key Performance Indicators (KPIs) were agreed by the Board in its circular no.75 in August The below provides a snapshot of the performance of the International Secretariat against these KPIs. EITI International Secretariat key performance indicators Part I. Outcome indicators 2007 Actual 2008 Actual 2009 Actual 2010 Actual 2011 Actual (Target) 1. No. of compliant countries N/A N/A (15) No. of implementing countries (33) No. of supporting companies (55) No. of supporting investors 7 (before 2010 measured in assets under management) 2012 Target N/A USD14trm USD16trm (85) No. of supporting countries (18) No. of countries that have submitted final validation reports 7 N/A N/A (26) Communication and awareness raising Visits to EITI website (per month) (12000) Articles published about the EITI (per year) (30) 30 References of EITI in articles, news items and blogs (per year) (2500) 2900 Subscribers to EITI s newsletter N/A N/A (2500) Reporting No. of EITI reports (25) Percentage of implementing countries reporting 41% 33% 74% 34% 54% (75%) 97% Companies participation 13 N/A N/A N/A N/A N/A (85%) 85% 8. Full report is available at 9. Cumulative 10. Including Madagascar whose final validation has not been assessed by the Board due to suspension. 11. Includes FT, The Economist, Le Monde, Le Figaro 12. Include references to EITI in English sites and ITIE in French sites. 13. Percentage of target companies that actually report in individual reconciliation reports 14. Cumulative All EITI implementing countries, except Madagascar and Yemen (which are suspended), are expected to produce reports in 2012 covering in many cases more than 1 year. It is also expected that reports become an annual exercise thereafter. 12/14

13 Monitoring and evaluation EITI International Secretariat key performance indicators continued Part II. Agency effectiveness indicators Agency effectiviness (resources) 2010 (USD) % 2011 (USD) 16 % Support to implementing countries Outreach activities Board meetings and Chairman support Rel. Stakeholders (Conference, NCs) Rel. Companies and Investors Communication Training Management and administration Outputs Website & Publications News items Tweets Blogs 8 20 Newsletter 3 6 Regular publications Videos 0 5 Progress report 1 1 Validations reports reviewed 15 7 Reconciliation reports reviewed Meetings Donors roundtables 1 1 National coordinators meeting 1 0 Board meetings 4 4 People trained Countries visited Implementing Outreach activities 7 14 Disclosure of Revenues No of EITI Reports No of EITI Reports (disaggregated) 6 11 Sector coverage N/A N/A Regularity of EITI disclosure 34% 54% Companies participating in reporting N/A N/A 16. January-June 2011 figures only July to Dec figures have not been completed. Website secretariat@eiti.org Telephone Fax Address EITI Secretariat, Ruseløkkveien 26, 0251 Oslo, Norway 13/14

14 PUBLICATIONS EITI Rule Book including Validation guide This publication brings together the EITI s requirements for implementing the EITI. It includes the EITI Principles, Criteria, Requirements, Validation Guide,and Policy Notes issued by the EITI Secretariat, conveying decisions taken by the EITI Board. /document/rules EITI Business Guide How companies can support implementation of the EITI /document/ businessguide Talking Transparency A guide for communicating the EITI /document/ communicationsguide FACT SHEETS are short documents explaining elements of the EITI policy: EITI Fact Sheet /document/factsheet How to become an EITI Candidate country /document/how-becomecandidate-country How to support the EITI Extractive Companies /document/supporting-extractive How to support the EITI Non-Extractive Companies /document/supporting-nonextractive How to support the EITI Countries /supporters/countries EITI Endorsements /document/endorsements Good Practice Note 1: EITI reporting /document/good-practice-eitireporting Good Practice Note No 2: Communications /document/good-practicecommunications EITI Guide for Legislators How to support and strengthen resource transparency /document/ mpguide EITI Source Book A guide to assist countries that are implementing the EITI /document/ sourcebook Advancing the EITI in the Mining Sector A report from consultations with mining stakeholders /document/mining Implementing the EITI Applying early lessons from the field (by the World Bank) /document/ implementingtheeiti Drilling Down A civil society guide to the EITI (by RWI) /document/ drillingdown EITI Progress Report This publication outlines progress made in EITI implementation following the EITI Global Conference in Doha February It was launched at the EITI Global Conference in Paris March /document/progressreport Website secretariat@eiti.org Telephone Fax Address EITI Secretariat, Ruseløkkveien 26, 0251 Oslo, Norway 14/14