Published Date: 
February, 2020

Implementation Committee #10 - Tuesday 21 April

Agenda

Draft agenda for Implementation Committee meeting #10, Tuesday 21 April at 14:30-16:00 (CEST):

  1. Latest implications of COVID-19 on implementation (for information)
    IC paper 10-1-A Addressing the implications of COVID-19 on EITI reporting
    IC/VC paper  Addressing the implications of COVID-19 on Validation
    Board Circular 288

    The Secretariat has consulted key stakeholders in EITI member countries and provided a preliminary analysis of likely impact of the global pandemic on the extractive sector and on EITI implementation, shared with the EITI Board through Board circular 288. The Secretariat will put forward options for the Committee’s consideration on appropriate responses to support implementation and undertake Validation in countries. 

    It is proposed that the Implementation Committee provides feedback on the options presented by the Secretariat and discusses an approach to addressing implications of COVID-1 on implementation and Validation.
     
  2. Piloting alternative approaches to EITI reporting (for decision)
    IC paper 10-2 Update on piloting alternative approaches to EITI reporting 

    Following the Board’s decision to launch a pilot on accelerating systematic disclosures, the International Secretariat has prepared an update on piloting alternative approaches to EITI reporting for the Committee’s consideration. The paper provides some preliminary proposals, addressing: the objectives of the pilot, the types of alternative approaches to EITI reporting that could be included, the criteria for selecting pilot countries, and options for engaging pilot participants and independent administrators. The paper also sets out a proposed timeline and the likely cost implications.

    It is proposed that the Implementation Committee agrees to the proposals in the paper and recommends that the EITI Board approves them by circular.
     
  3. Next steps on measuring the impact of the EITI (for information)  
    IC paper 10-3 Draft Results measurement and impact assessment in EITI

    Following the Board’s discussion on impact at the Board retreat in February, the consultant Christopher Wilson has submitted a draft report. It includes a review of best practices in similar organisations on measuring results and assessing impact, a review of the EITI’s approach and opportunities to improve the latter.

    The International Secretariat (cberger@eiti.org) welcomes any feedback in writing on the draft report by 28 April 2020.
     
  4. Updated draft guidance notes on state participation, quasi-fiscal expenditures, and infrastructure provisions and barter arrangements (for information)
    IC paper 10-4-A Guidance note on state participation
    IC paper 10-4-B Guidance note on quasi-fiscal expenditures

    In light of the 2019 EITI Standard, discussions at the EITI Global Conference and recent best practice, the International Secretariat has updated its guidance on state participation (Requirement #2.6) and quasi-fiscal expenditures (#6.2).

    The Secretariat welcomes any feedback on the draft guidance notes by Tuesday 5 May. The final guidance notes will be recirculated to the Committee before they are shared with the Board by circular and shared with countries as part of capacity-building activities.
     
  5. AOB

Minutes

Observers: Matt Edwards (DFID), Allie Fink (Canada), Lina Holguin (Canada), Johannes Loymeyer (GIZ), James Nicholson (Trafigura), Sven Renner (World Bank), Mark Richards (Rio Tinto), Lorena Roa (Colombia). Dyveke Rogan (NBIM), David Wachira (World Bank), Chris Wilson (consultant), Johanna Wysluch (GIZ).

International Secretariat: Chiugo Aghaji, Marie Ah-Lime, Bady Baldé, Sam Bartlett, Christina Berger, Gisela Granado, Catherine Greene, Andrew Irvine, Joanne Jones, Lyydia Kilpi, Annie Magnus, Ines Marques, Gilbert Makore, Gay Ordenes, Hugo Paret, Mark Robinson, Jaqueline Terrel, Indra Thévoz, Olesia Tolochko, Oliana Valigura.

  1. Latest implications of COVID-19 on implementation (for information)
    IC paper 10-1-A Addressing the implications of COVID-19 on EITI reporting
    VC paper 22-2 Addressing the implications of COVID-19 on Validation
    Board Circular 288

The Chair noted that the International Secretariat had received a Validation extension request from Papua New Guinea, and that other extension requests were expected following the COVID-19 outbreak. Ines provided an update on the impact of COVID-19 on EITI implementation, highlighting the importance of balancing flexibility and incentives for progress. She summarised the options prepared by the International Secretariat.

Committee members raised the following points:

  • It is key for countries to benefit from flexibility when facing serious budget constraints due to the crisis.
  • With the prospect of implementing countries facing recessions, exploring ways to ensure the EITI’s relevance in the current context is crucial. The crisis could represent an opportunity to reorient EITI implementation so that it is more relevant to governments, industry and civil society. Forward-looking studies would demonstrate the relevance of disclosures and support decision-makers in addressing the economic and social implications of the crisis.

Committee members agreed that a combination of the first and second option in the paper –was most likely to address these considerations, pending clarification of the following:

  • Encouraging unilateral disclosures by companies alongside unilateral disclosures by government;
  • Further implementation support to be provided to implementing countries in filling out summary data templates and using other data disclosure tools;
  • The Committee to reconsider the practice of COVID-19 constituting an “exceptional circumstance” as per Article 7 – extensions when the situation stabilises in implementing countries. 
  • Expectation that countries would need to follow up on data gaps and deviations from the Standard once the situation normalises.

It was agreed that the International Secretariat would update the paper to reflect input from Committee members, before sharing with the Committee for approval.

Lyydia introduced the Validation Committee for input from the Implementation Committee. She summarised the options for Validation in response to the COVID-19 crisis. Committee members expressed support for option 2 in the paper, i.e., that the Board consider COVID-19 an “exceptional circumstance” as per Article 7 – extensions and to consider extensions of up to six months.

Following Committee members’ questions, Lyydia noted that the Validation review working group had made good progress, with a discussion potentially to be held at the virtual Board meeting in June. The working group was reflecting on how to address temporary suspensions for countries that did not achieve satisfactory progress overall following their third Validation.

It was agreed that the International Secretariat would note the feedback from the Implementation Committee when the Validation Committee considers the paper at its 6 May meeting.

Mark noted that the International Secretariat had identified urgent needs in implementing countries in light of the COVID-19 crisis, and was exploring ways to provide additional implementation support. The Secretariat is having discussions with partners about establishing a rapid response fund, to be managed by the International Secretariat with appropriate risk management and disbursement protocols. A more detailed outline will be shared with Board members in the coming week, ahead of a thorough update to the Board on responses from the International Secretariat to the COVID-19 crisis. 

Following questions from Committee members, Sven noted that the World Bank was focusing on supporting countries with emergency responses on the ground, including regions with high prevalence of artisanal and small-scale activities. He added that these activities would not restrict funds available for EITI implementation, with several proposals from implementing countries expected in the ongoing EGPS round.

  1. Piloting alternative approaches to EITI reporting (for decision)
    IC paper 10-2 Update on piloting alternative approaches to EITI reporting  

The Chair noted that, following the Board’s decision to launch a pilot on alternative approaches to EITI reporting, the International Secretariat had prepared an update for the Committee’s consideration. Sam summarized the paper, noting that the pilot aimed to make EITI implementation more effective and cost efficient, which was even more important given the COVID-19 crisis . Following Committee members’ questions, he clarified that:

  • It is expected that half a dozen countries would join the pilot, once the Board agrees the criteria for participating, and depending on available resources and the impact of the crisis. 
  • The updated version of the paper will outline the link between the pilot and work done by implementing countries on mainstreaming feasibility studies, as well as the need to align the pilot with World Bank support on strengthening systematic disclosures.
  • The Secretariat will improve messaging to countries on the link between piloting alternatives to reporting and flexibility introduced on reporting in light of the crisis in the updated version of the paper, including on implications for countries that recently joined the EITI or were preparing a candidature application.
  • The expected timeline of the pilot will be flexible, taking into consideration different approaches chosen by countries, availability of resources and level of MSG support.

It was agreed that the Secretariat would update the paper to reflect Committee members’ feedback, before the final version is shared with the Committee for approval by email, and with the Board for decision by circular.

  1. Next steps on measuring the impact of the EITI (for information)  
    IC paper 10-3 Draft Results measurement and impact assessment in EITI

The Chair noted that, following the Board’s discussion on impact at the Board retreat in February, the consultant Christopher Wilson had submitted a draft report. Christina noted that the independent report would be finalised by 8 May to reflect input from Board members. Drawing from the report, the Secretariat will submit a paper for the Committee’s review with recommendations on the way forward ahead of the Committee’s 19 May meeting.

Committee members welcomed the draft report and noted the following:

  • Budget implications of each recommendation, as well as expectations from implementing countries, have to be clearly spelled out in the upcoming paper prepared by the Secretariat for the Committee’ and Board’s consideration. Prioritisation of ongoing work will be important to ensure that the recommendations could be taken forward despite limited resources.
  • Recommendations on quick wins were considered reasonable, including the consistent adoption of the existing GIZ monitoring and evaluation tool.
  • An independent evaluation of the EITI is considered necessary by the supporting countries constituency, and would not necessarily have high cost implications depending on the approach.

The Secretariat (cberger@eiti.org) welcomes any feedback in writing on the draft report by Friday 28 April 2020.

  1. Updated draft guidance notes on state participation, quasi-fiscal expenditures, and infrastructure provisions and barter arrangements (for information)
    IC paper 10-4-A Draft Guidance note on state participation
    IC paper 10-4-B Draft Guidance note on quasi-fiscal expenditures

The Chair noted that the Secretariat had updated its guidance on state participation (Requirement #2.6) and quasi-fiscal expenditures (#6.2), following high demand from implementing countries to provide more detailed guidance on requirements related to state-owned enterprise transparency. She highlighted that Secretariat was suggesting a new template for guidance notes as presented in these two examples, which will be further developed with the Secretariat’s Communications team.

The Secretariat welcomes any feedback on the draft guidance notes by Friday 8 May.

Documents

Draft report - Results Measurement and Impact Assessment in EITI: a Review of Best and Current Practice

Executive Summary in French [full report to follow]