The Dominican Republic has achieved a moderate score in implementing the 2019 EITI Standard (83.5 points). The overall score reflects an average of the three component scores on Stakeholder engagement, Transparency, and Outcomes and impact.
On Outcomes and impact, the Dominican Republic achieved a moderate score (79 points), which reflects the Dominican Republic EITI’s (EITI-DR) consistent publication of work plans and annual progress reports to guide and track progress on implementing recommendations from EITI implementation. The Board commends ongoing efforts by EITI-DR to publish data in open format through the adoption of an open data policy. While the Dominican Republic EITI has had tangible impacts on extractive industry governance in the country, there are opportunities to further strengthen the EITI’s contribution to public debate on natural resource governance issues, especially at the subnational level, and to reinforce regular open data publications of data required under the EITI Standard. The Dominican Republic was awarded one additional point for the effectiveness and sustainability of its implementation.
The Dominican Republic achieved a high component score on Stakeholder engagement (90 points). The government has remained committed and engaged in the EITI process with a marked improvement of attendance of MSG meetings in the second half of the period under review. General elections were held in the middle of the Validation period yet government and industry commitment has remained strong through the change in administration, with a notable improvement in attendance at EITI events by industry representatives in the last two years. The oil and gas sector has recently joined the EITI-DR and there are discussions to expand membership to the non-metallic mining sector. Constitutional court rulings in 2020 struck down laws that were deemed to limit freedom of expression and civil society has remained a vocal proponent for reform efforts in EITI meetings and in local communities.
On the Transparency component, the Dominican Republic achieved a moderate score (82 points). The Board commends the Dominican Republic for following-up on previous corrective actions concerning license allocations to make the award and transfer process more transparent. The Dominican Republic has made tangible progress in newer areas of the EITI Standard, such as contract transparency, where a nascent oil and gas sector is already publishing their contracts in full. The country has begun efforts to disclose beneficial ownership information collected by the Directorate General of Internal Taxes, even if more work is needed to ensure comprehensive and reliable disclosures of ownership information on all extractive companies. Subnational transfers remain a contentious issue but the disclosure of the formulas used to calculate these transfers has enabled a more robust and detailed discussion of the expected and actual value of extractive revenue transfers to subnational governments.
The Board has determined that the Dominican Republic will have until a next Validation commencing on 1 January 2026 to carry out corrective actions regarding Public debate (Requirement 7.1), Data accessibility and open data (Requirement 7.2), Beneficial ownership (Requirement 2.5), Data quality (Requirement 4.9), Subnational transfers (Requirement 5.2), and Social and environmental expenditures (Requirement 6.1). Failure to demonstrate progress on Stakeholder engagement, Transparency or Outcomes and impact in the next Validation may result in temporary suspension in accordance with Article 6 of the EITI Standard. In accordance with the EITI Standard, the Dominican Republic may request an extension of this timeframe or request that Validation commences earlier than scheduled.
Corrective actions and strategic recommendations
The EITI Board agreed the following corrective actions to be undertaken by the Dominican Republic. Progress in addressing these corrective actions will be assessed in the next Validation commencing on 1 January 2026:
- In accordance with Requirement 7.1, the MSG must ensure that outreach activities to disseminate findings from the 2019-2020 EITI Report reach all audiences and that the information is accessible and consider access challenges and information needs of different genders and subgroups of citizens, particularly of the communities affected by extractive industries. These activities should be included in the EITI-DR Strategic Communication and Dissemination Plan, which should include a detailed budget and be published and implemented according to the MSG’s agreed timelines.
- In accordance with Requirement 7.2, the MSG is required to disclose all EITI data in open format online, including tables and reports. To strengthen implementation of Requirement 7.2, government agencies and companies are encouraged to disclose data related to the extractive sector in open format to facilitate its use. The Dominican Republic is encouraged to undertake additional capacity building efforts to support the use of EITI data, especially with civil society organizations, local communities, media and legislators.
- In accordance with Requirement 2.5, the Dominican Republic is required to disclose beneficial, as well as legal, ownership information for all corporate entities and shareholders that apply for or hold a participating interest or shares of equity in an oil, gas or mining license. Furthermore, the Dominican Republic is required to request all companies holding extractive licenses to disclose beneficial ownership information, including at the application stage. This must include all data points listed in Requirement 2.5, including the identity of any politically exposed persons. The Dominican Republic must introduce adequate assurances and publish regular assessments to ensure the reliability and comprehensiveness of this data. Significant gaps or weaknesses in reporting of this information must be disclosed and entities that have failed to disclose beneficial ownership information should be named. To strengthen implementation of Requirement 2.5, the Dominican Republic is strongly encouraged to establish a central public register of beneficial ownership information on all companies holding or applying for mining and petroleum rights.
- In accordance with Requirement 4.9, the Dominican Republic must guarantee that all reporting companies provide the quality assurances agreed in the reporting scope.
- In accordance with Requirement 5.2, the Dominican Republic must ensure that it publishes an assessment of any discrepancies between the amount of subnational transfers calculated in accordance with the relevant revenue sharing formula and the actual amount that were transferred between the central government and each relevant subnational entity in the period under review by EITI reporting, reflecting the differences of opinion between stakeholders on the variables used in the calculation of subnational transfers of extractive revenues. To strengthen implementation, the Dominican Republic is encouraged to provide information on how extractive revenues earmarked for specific programmes of investments at the subnational level are managed, and actual disbursements.
- In accordance with Requirement 6.1, the Dominican Republic EITI must review annually whether changes in laws and terms of extractive contracts have introduced any new requirements for extractive companies to undertake mandatory environmental payments to government or social or environmental expenditures. The Dominican Republic must ensure that any material mandatory environmental payments to government or social or environmental expenditures are comprehensively and reliably disclosed. To strengthen implementation, the Dominican Republic EITI is encouraged to disclose voluntary social and environmental expenditures.
The Dominican Republic is encouraged to consider the following recommendations to strengthen EITI implementation:
Outcomes and impact
- To strengthen implementation of Requirement 1.5, the Dominican Republic is encouraged to align the EITI work planning with an explicit monitoring, evaluation and learning framework.
- To strengthen implementation of Requirement 7.3, the MSG is encouraged to ensure that follow-up on EITI recommendations is institutionalised and systematised.
- To strengthen implementation of Requirement 7.4, the MSG is encouraged to periodically carry out workshops to discuss the impacts of EITI implementation on natural resource governance in the country and how gender considerations and inclusiveness are included in EITI reporting.
- To strengthen implementation of Requirement 1.1, the Dominican Republic is encouraged to ensure that all government entities involved in the oversight of the extractive industries are adequately represented in all aspects of the EITI process.
- To strengthen implementation of Requirement 1.2, the company constituency is encouraged to continue to strengthen its engagement in the EITI, including engagement by non-metallic companies that are currently not members of CAMIPE.
- To strengthen implementation of Requirement 1.3, the civil society constituency is encouraged to continue conducting capacity-building events in affected communities and ensure that regional CSOs can contribute to MSG meetings and priority issues. The government is urged to ensure that there are no constraints on civic space for civil society members engaged in the EITI process, including those not directly represented on the MSG. The government and MSG should monitor and discuss any legal and regulatory reforms to ensure that there continues to be an enabling environment for civil society participation and ensure that the MSG is discussing the status of civil society participation in the EITI regularly. All stakeholders including the government are encouraged to conduct capacity building activities for various civil society stakeholders on the EITI Standard and on citizen rights in extractive industry governance.
- To strengthen implementation of Requirements 1.4, the Dominican Republic is encouraged to ensure that the MSG’s ToR adequately reflects the practice of the MSG’s operations, including the frequency of meetings and period of representation. The Dominican Republic is encouraged to ensure a collegial working environment at its meetings that ensures that all stakeholders continue to be treated as equal partners in the MSG’s decision-making.
- To strengthen Requirement 3.1, the Dominican Republic is encouraged to systematically disclose information about informal sector activities, including artisanal and small-scale mining potentials.
- To strengthen implementation of Requirement 6.3, the Dominican Republic is encouraged to provide employment figures disaggregated by gender for the extractives sector, when available. To strengthen implementation, The Dominican Republic is encouraged to address the topic of informal mining activity and cite third-party estimates when these are available and up to date.
- To strengthen implementation of Requirement 2.1, the Dominican Republic is encouraged to document ongoing and planned reform efforts, especially in the nascent hydrocarbon sector.
- To strengthen implementation of Requirement 6.4, the Dominican Republic is encouraged to extend transparency efforts to the public disclosure of documents related to environmental management and monitoring of the environmental impact of extractive activities, such as those mandated by Law 64-00. The Dominican Republic is encouraged to use EITI reporting to provide a diagnostic of the practices related to the management of environmental impacts of extractive activities.
- To strengthen implementation of Requirement 2.2, the MSG is encouraged to include commentary on the efficiency and effectiveness of license and contract allocation systems.
- To strengthen implementation of Requirement 2.3, the Dominican Republic is encouraged to continue developing a publicly available petroleum license register, which includes information on license holders, license coordinates, date of application, award and duration of the license and in the case of production licenses, the commodity being produced.
- To strengthen implementation of Requirement 3.2, the Dominican Republic is encouraged to provide information about how disclosed production volumes and values are calculated. The Dominican Republic is likewise encouraged to provide estimates of ASM production volumes and values. The Dominican Republic is encouraged to further disaggregate production figures by company and region.
- To strengthen implementation of Requirement 3.3 the Dominican Republic is encouraged to provide information about calculation methods for export data. The Dominican Republic is also encouraged to provide estimates of ASM exports volumes and values.
- To strengthen implementation of Requirement 4.1 and according to the standard Terms of Reference for the Independent Administrator agreed by the EITI Board, the MSG and Independent Administrator could consider including in future EITI Reports an explicit and clear statement on the reliability and comprehensiveness of reconciled financial data.
- To strengthen Implementation of Requirement 4.4, the MSG in Dominican Republic could consult and document whether civil society’s allegations of transportation revenues being relevant for communities should be included within the reporting scope.
- To strengthen implementation of Requirement 4.7, the Dominican Republic should ensure that reconciled financial data in future EITI Reports is disaggregated by project for revenue streams that are levied on a per-project basis. To do so, the Dominican Republic should determine the revenue streams that are imposed at the level of legal agreement rather than at the company level.
- To strengthen implementation of Requirement 4.8, the Dominican Republic could consider improving the timeliness of reporting to strengthen value to public debate and policy-making.
- To strengthen implementation of Requirement 5.3, the government is encouraged to publicly document financial reports related to earmarked extractive revenues to ensure accountability and efficiency in their use. Furthermore, the government is encouraged to provide revenue forecasts arising from the extractive sector and the proportion of future fiscal revenues from this sector, other than those already provided for gold production.
The government and the MSG are encouraged to consider these recommendations and to document the MSG’s responses to these recommendations in the next annual review of outcomes and impact of EITI implementation.
In February 2020, the EITI Board agreed that the Dominican Republic had made “meaningful progress” in implementing the 2016 EITI Standard. The next Validation of the Dominican Republic was scheduled to commence on 14 August 2020. In December 2020 and October 2022, the EITI Board agreed revisions to the Validation schedule, with Dominican Republic’s Validation scheduled to commence on 1 April 2023.
The Dominican Republic EITI collated documentation for Validation using the Board-agreed data collection templates on Stakeholder engagement, Transparency, and Outcomes and impact. The files are available on the Dominican Republic EITI website. The International Secretariat’s Validation team prepared an initial assessment following the Validation procedure and Validation Guide. In accordance with the Validation procedure, a public call for stakeholder views on EITI implementation was open from 30 January 2023 to 1 April 2023. Stakeholder consultations were undertaken virtually in April and May 2023. The draft assessment was shared with the MSG for feedback on 28 August 2023. The MSG comments were received on 27 September 2023.
In accordance with Article 4.c of Section 4 of the 2019 EITI Standard, the overall assessment consists of component scores on Stakeholder engagement, Transparency, and Outcomes and impact, as well as an overall numerical score. The component score represents an average of the points awarded for each applicable requirement. The points awarded on the effectiveness and sustainability indicators are added to the component score on Outcomes and impact. The overall score is the average of the three component scores.
The Validation Committee reviewed the case at its 31 October and 14 November 2023 meetings. Following comments from Validation Committee members, the Committee agreed to downgrade the assessment of Requirement 5.2 on subnational transfers from ‘fully met’ to ‘mostly met’, with related corrective actions.
Assessment of EITI requirements
- Not met
- Partly met
- Mostly met
- Fully met
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The three components of Validation each receive a score out of 100, as follows:
Outcomes and impact