The EITI Board agreed that Guinea has made meaningful progress in implementing the EITI Standard.
Description: see below for the decision in full. PDF attached at bottom of the page.
Where: 42nd Board meeting in Kyiv, Ukraine
- Internal: Board paper 42-5
- Public domain:
- Guinea Validation 2018
- News item on the decision: EITI countries progress on path to transparent and accountable extractive sectors
- Scorecard: Guinea's progress by requirement
Keywords: Validation; Guinea
Following the conclusion of Guinea’s Validation, the EITI Board decided that Guinea has made meaningful progress overall in implementing the EITI Standard.
The Board congratulated the Government of Guinea and the Multi-Stakeholder Group (MSG )on the progress made inimproving transparency and accountability in the extractive industries. In the context of rapidly growing mining sector, the Board believes that Guinea EITI has the potential to play a keyrole insupporting sector reforms and informing the public debate on natural resource governance.
The Board congratulated stakeholders for strengthenin the comprehensiveness and quality of EITI reporting, and enhancing transparency in licence allocation procedures ,the licence register, and in the disclosures of state-owned enterprises. The Board also recognised Guinea’s efforts to go beyond the requirements of the EITI Standard in the disclosure of mining contracts through its contract transparency portal (www.contratsminiersguinee.org).
The Board encouraged Guinea EITI to ensure that improvements in MSG oversight over the EITI process are commensurate with improvements in EITI reporting. The Board encouraged Guinea EITI to deepen efforts in the disclosure of direct subnational payments, licence allocation, and quasi-fiscal expenditures by state-owned enterprises. It also encouraged stakeholders to strengthen the MSG’s follow-up on EITI recommendations and evaluation ofoutcomes and impact of EITI implementation.
The Board encouraged Guinea EITI to shift the focus from overseeing the preparation of EITI Reports to supporting changesto enable systematic and regular disclosure of EITI data through government systems; and to support the implementation of the new Local Economic Development Fund (FODEL).
The Board determined that Guinea will have 18 months, i.e. until 27 August 2020 before a second Validation to carry outcorrective actions regarding the requirements relating to industry engagement(1.2), MSG governance (1.4), license allocation (2.2), infrastructure agreements (4.3), direct subnational payments(4.6), quasi-fiscal expenditures (6.2), follow up on recommendations (7.3), and documenting outcomes and impact of implementation (7.4). Failure to achieve meaningful progress with considerable improvements across several individual requirements in the second Validation will result in suspension in accordance with the EITI Standard. In accordance with the EITI Standard, Guinea’sMSG may request an extension of this timeframe, or request that Validation commences earlier than scheduled.
The Board’s decision followed a Validation that commenced on 1 July 2018. In accordance with the 2016 EITI Standard, an initial assessment was undertaken by the International Secretariat. The findings were reviewed by an Independent Validator, who submitted a draft Validation report to the MSG for comment. The MSG’s comments on the report were taken into consideration by the independent Validator in finalising the Validation report and the independent Validator responded to the MSG’s comments. The final decision was taken by the EITI Board.
The EITI Board agreed the following corrective actions to be undertaken by Guinea. Progress in addressing these corrective actions will be assessed in a second Validation commencing on 27 August 2020:
- In accordance with Requirement 1.2, the industry constituency should demonstrate that they are fully, actively and effectively engaged in the EITI process. In accordance with requirement 8.3.c.i, the industry constituency should develop and disclose an action plan for addressing the deficiencies in industry engagement documented in the Validator’s report within three months of the Board’s decision, i.e. by 27 May 2019.
- In accordance with requirement 1.4b, the MSG should update the 2012 Decree and Ministerial Order on MSG membership, and the June 2018 ToR to ensure that they align with the 2016 EITI Standard. The industry and civil society constituencies should develop, publish and implement procedures for an inclusive, fair, and transparent nomination of their representatives on the MSG. The MSG may also wish to consider options to broaden industry participation on the MSG. The MSG may wish to clarify the MSG governance framework, which is currently described over four different documents. Itmay wish in particular to combine the Ministerial Order on the composition of the MSG, the Internal Rules and the ToR into a single document.
- In accordance with Requirement 2.2, Guinea should ensure that the detailed technical and financial criteria for both license awards and transfers be publicly accessible. In light of significant public concern over the legacy of non-trivial deviations from statutory licensing procedures, Guinea should ensure that its approach to publicly disclosing non-trivial deviations be commensurate with the number of licenses awarded and transferred in the year under review.
- In accordance with Requirement 4.3, Guinea should assess the existence of infrastructure provisions during the scoping phase for its next EITI reporting cycle to ensure disclosure of any agreements, or sets of agreements involving the provision of goods and services (including loans, grants and infrastructure works), in full or partial exchange for oil, gas or mining exploration or production concessions or physical delivery of such commodities. Guinea should gain a full understanding of the terms of the relevant agreements and contracts, the parties involved, the resources that have been pledged by the state, the value of the balancing benefit stream (e.g. infrastructure works), and the materiality of these agreements relative to conventional contracts.
- In accordance with Requirement 4.6, Guinea should ensure that information on extractives company direct payments to subnational governments, where material, be comprehensively disclosed and reconciled with each local government’s receipts of these payments.
- In accordance with Requirement 6.2, Guinea should undertake a comprehensive review of all expenditures undertaken by extractives SOEs that could be considered quasi-fiscal and develop a reporting process with a view to achieving a level of transparency on all types of quasi-fiscal activities linked to extractives revenues commensurate with other payments and revenue streams. To strengthen implementation, Guinea is strongly encouraged to consider the extent to which routine publication of SOEs’ annual audited financial statements would help promote greater trust in the quality and comprehensiveness of public disclosures of quasi-fiscal expenditures.
- In accordance with Requirement 7.3, the MSG should introduce a systematic and structured mechanism to track and follow up on recommendations, with a clear timeframe and clear responsibilities for following up. The MSG should also take a more proactive role in formulating its own recommendations. The MSG may also wish to include Validation, as a means of ensuring closer attention to implementation. The MSG may also wish to consider utilising the Supervisory Committee to follow-up on recommendations from past EITI Reports and Validation as a means of ensuring the sustainability and continued effectiveness of follow-up channels.
- In accordance with Requirement 7.4, the MSG should consider using the annual progress report to evaluate the impact of the EITI, beyond describing outputs and outcomes of workplan activities. The MSG should also undertake an impact assessment with a view to identify opportunities for increasing the impact of implementation in Guinea. Greater effort could also be made to canvass the broader constituencies for input in assessing the outcomes and impact of EITI implementation through the annual progress report.
The government and the MSG are encouraged to consider the other recommendations in the Validator’s Report and the International Secretariat’s initial assessment, and to document the MSG’s responses to these recommendations in the next annual progress report.