The Board concluded that the Philippines has made satisfactory progress overall in implementing the 2016 EITI Standard.

The Board's decision

The Board came to the following decision regarding the Philippines' status:

The Board agrees that the Philippines has made satisfactory progress overall in implementing the 2016 EITI Standard. The Board’s determination of the Philippines’ progress with the EITI’s requirements is outlined in the assessment card below.

The EITI Board agrees that the Philippines has gone beyond the requirements in the EITI Standard on Requirements 1.4, 1.5, 2.1, 2.4, 5.1, 6.1, 7.1, 7.3 and 7.4. The Board agrees that the Philippines has made satisfactory progress in meeting all other requirements.  

The EITI Board disagrees with the Validator on requirement 4.1 related to comprehensiveness, considering that the broader objective of comprehensive revenue transparency was achieved despite relatively small gaps in reconciliation. However, the EITI Board strongly encourages the MSG to ensure comprehensive reconciliation of all material revenues from companies in the scope of reporting in future EITI Reports.

Accordingly, the EITI Board agrees that the Philippines will be designated as EITI Compliant and be revalidated in three year, with Validation commencing on 5 October 2020. In accordance with the EITI Standard, the Philippines’ MSG may request an extension of this timeframe, or request that Validation commences earlier than scheduled.

The Board’s decision follows a Validation that commenced on 1 January 2017. 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, who was invited to comment on the findings. The MSG’s comments on the report were taken into consideration by the Independent Validator, who responded to the MSG and finalised a Validation report. The final decision was taken by the EITI Board.

Assessment card

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Background

The Philippines has been an EITI implementing country since 2013. The Philippines’ decision to implement the EITI was primarily intended to address public mistrust over mining and strengthen the government’s oversight of the extractive sector. The Philippines EITI MSG was formally established by Executive Order 79.

The Validation process commenced on 1 January 2017. In accordance with the Validation procedures, an initial assessment was prepared by the International Secretariat. The Independent Validator reviewed the findings and wrote a draft Validation report. Comments were received from the MSG. The Independent Validator reviewed the comments and responded to the MSG, before finalising the Validation Report.

The Validation Committee reviewed the case on 28 August 2017. Based on the findings above, the Validation Committee agreed to recommend the assessment card below.

The Committee also agreed to recommend an overall assessment of “satisfactory progress” in implementing the 2016 EITI Standard. Requirement 8.3.b. of the EITI Standard states that:

b) Consequences of compliance

Where Validation verifies that a country has made satisfactory progress on all of the requirements, the EITI Board will designate that country as EITI Compliant.

EITI Compliant countries must maintain adherence to the EITI Principles and Requirements in order to retain Compliant status. Where a country has become EITI Compliant, but concerns are raised about whether its implementation of the EITI has subsequently fallen below the required standard, the EITI Board reserves the right to require the country to undergo a new Validation. Stakeholders may petition the EITI Board if they consider that Compliant status should be reviewed. This request may be mediated through a stakeholder’s constituency representative(s) on the EITI Board. The EITI Board will review the situation and exercise its discretion as to whether to require an earlier Validation or Secretariat Review. Subject to the findings of that assessment, the EITI Board will determine the country’s status.

Where a Compliant country is being re-validated and validation concludes that the country has not met all EITI requirements, the consequences set out in (c) below apply.

In accordance with Requirement 8.3.d.i, Philippines will be revalidated in three years:

d) Timeframes for achieving compliance.

(i) EITI Candidate countries are required to commence the first Validation within two and a half years of becoming an EITI Candidate. EITI Compliant countries are required to be re-validated every three years. In accordance with provision 8.5, a country may request an extension of this timeframe. A country may also request to commence Validation earlier than scheduled by the EITI Board.

Corrective actions

The MSG is encouraged to consider the recommendations in the Validation Report and the International Secretariat’s initial assessment that could help the Philippines make even greater use of the EITI as an instrument to support reforms, and to document the MSG’s responses to these recommendations in the next annual progress report.