The Philippines has surpassed the requirements in nine areas set by the Extractive Industries Transparency Initiative (EITI) on global benchmarks for good governance in the oil, gas and mineral sectors in becoming the first country to have successfully obtained a ‘satisfactory progress’ assessment under the 2016 EITI Standard.
Besides going beyond the minimum required by the EITI in these nine areas, the Philippines also achieved “satisfactory” progress in 18 of the 33 requirements set by the EITI in evaluating countries under the 2016 EITI Standard.
“In taking this decision, the Board recognized the Philippines’ pioneering efforts in using EITI data to drive government reforms and generating a vibrant public debate around issues on natural resource governance,” said former Fredrik Reinfeldt, the chairman of the EITI International Board, in his letter to Finance Secretary Carlos Dominguez III congratulating the Philippines on its landmark achievement.
Last October 5, the EITI International Board declared the Philippines as the first country to meet all the requirements of the EITI Standard, which requires countries to publish timely and accurate information on key aspects of their natural resource management, including how licenses are allocated, how much tax and social contributions companies are paying and where this money ends up in the government at the national and regional level.
The Philippines, beginning in January this year, underwent the validation process of the EITI, a Norway-based international initiative that promotes open and accountable management of extractive industries, including the mining and oil and gas sectors.
In his letter to Dominguez, Reinfeldt also said he was looking forward to meeting Dominguez when the EITI holds it 38thboard meeting in Manila on October 25-26 and “hear about how the EITI in the Philippines will continue to create impact and drive reforms in your extractive sector.”
On behalf of the International Board, Reinfeldt commended the Philippines for going beyond the requirements of the EITI Standard in nine areas in its Assessment Scorecard. These are: 1) the multi-stakeholder group’s oversight of the EITI process and 2) work plan; 3) the legal framework and 4) policy on contract disclosure, 5) revenue management and expenditures, 6) social expenditures, 7) public debate, 8) follow-up on recommendations, and 9) outcomes and impact of implementation.
The EITI Board will revalidate the Philippines’ status in three years, or in October 2020.
Dominguez earlier welcomed the EITI Board’s decision and pointed out that “the forum that EITI provides has been indispensable to achieving mutually beneficial collaboration between all stakeholders in the country.”
“With the proper governance framework in place, the extractive industries may do what they do without causing harm,” said Dominguez, who is at the helm of Philippine EITI (PH-EITI).
“To achieve that, they must be transparent and the communities ever watchful. I trust that the international recognition we have received will further spur our nation to build institutions of accountability and enterprises that are better able to serve the common good,” he said.
In a statement released by the EITI Board last October 5, it said, “the Philippines presents a dynamic case of EITI implementation, with its fast-paced and innovative multi-stakeholder group engaging in strategic discussions linking the EITI to national priorities for the extractive sector”. It also said that “EITI has also built trust in a country where the mining sector has often been contentious”.
Referring to the Philippines’ validation, Reinfeldt said: “I congratulate the Philippines on its use of the EITI Standard to build trust, generate public debate and inform policy, which serves as an example to other countries. Meeting all the EITI requirements is a milestone for the EITI and, more importantly, a significant achievement for all the stakeholders in the Philippines that have supported EITI implementation. I urge them to continue to ensure progress, particularly in the coal sector where further work is needed to ensure full transparency.”
Earlier, the Philippines earned several citations for best practices in the implementation of global standards on the management of mining resources during the 37th EITI board meeting held in Oslo, Norway last May.
