THE EXTRACTIVE INDUSTRIES TRANSPARENCY INITIATIVE (EITI)
The Extractive Industries Transparency Initiative (EITI) is a global standard that promotes transparency and accountability in the oil, gas and mining sectors. It has a robust yet flexible methodology for disclosing and reconciling company payments and government revenues in implementing countries.
Aim of the EITI
The EITI international Board and implementing member countries believe that a country’s natural resource wealth are the patrimony of its citizens. Through increased transparency and accountability, EITI can increase public trust and dialogue, improve governance, attract investment, and manage and enhance growth so that citizens receive financial and societal benefits from a country’s natural resources. In each of the implementing countries, the EITI is supported by a coalition of government, companies, and civil society.
EITI Fact Sheet: https://eiti.org/sites/default/files/documents/eiti_factsheet_en.pdf
Benefits of EITI Implementation
The benefits for the implementation countries include more investments. This is a clear signal for investors and international financial institutions that the government is engaged for a better transparency process. EITI also promotes open and accountable governance, as well as greater political and economic stability.
The benefits for the companies and investors are concentrated in the political risk mitigation and a good reputation. Political instability, caused by opaque governance, is a clear threat to investments. Intensive investment in the extractive industry and profit generation need long-term stability. Reduction of instability is beneficial to business.
The benefits for the civil society come from a better and more information in public domain for the revenues that governments managed on behalf of its citizens, resulting in a more responsible government. The initiative also promotes dialogue between the Government, industry and civil society.
HISTORY OF GYEITI
On the 4th May 2010 in Georgetown, Guyana, the then Prime Minister of Guyana Samuel Hinds during a meeting with EITI Regional Director Dr Francisco Paris gave the first impetus for the implementation of EITI in Guyana.
On May 15, 2012, Guyana’s commitment to implement EITI was followed by the signing of a Memorandum of Understanding (MOU) between the Government of the Cooperative Republic of Guyana and the Extractive Industries Transparency Initiative (EITI).
Following elections in May 2015 in the Cooperative Republic of Guyana, a new Government took office and on 17th November 2015 Cabinet Decision gave approval for the continuation of the EITI Application Process and the establishment of a Steering Committee (Multi-Stakeholder Group). A ratio of 4:4:4 was agreed to provide for equal representation from each of the three (3) sectors; civil society, industry and government.
The Cabinet of Ministers of the Government of Guyana identified the Ministry of Natural Resources as the “Lead Agency responsible for implementing the Guyana-EITI”. Minister of Natural Resources, Hon Raphael Gregory Conwright Trotman was identified as GYEITI Champion to lead the implementation of EITI in Guyana.
On 22nd December, 2015 Minister Raphael Trotman publicly announced the new government’s intention to continue Guyana’s commitment to EITI implementation in an effort to bring greater transparency and accountability to the extractive sector as he sought to reach out to stakeholder groups in order to find the most open, participatory and inclusive mechanism in the appointment of representatives of the sectors.
On 15th February 2017, the GYEITI Multi-Stakeholder Group was officially launched which comprise of twelve (12) members with four (4) representatives each from civil society, industry and government with each member having a designated alternate.
On 2nd February 2017, the Government of Guyana established the GYEITI National Secretariat within the Ministry of Natural Resources and appointed a National Coordinator in the person of Dr Rudy Jadoopat and a Deputy Coordinator in the person of Ms Diane Barker. The Secretariat operates under the supervision of the MSG and is tasked with carrying out the day to day administrative and operational functions of GYEITI.
After completing the sign-up requirements for EITI implementation, the Cooperative Republic of Guyana applied for admission to the EITI on the 18th August 2017.