Local government units (LGUs) are entitled to 40% of the total collections from extractive companies in their locality. To facilitate the transfer of LGUs’ shares, the relevant central government agencies issue a certification to the Department of Budget and Management (DBM), which is then tasked to release the shares to the LGUs.

Starting 2016, the country also implemented a system of direct transfers of shares from the Bureau of Treasury to the LGUs, effectively speeding up subnational transfers. Currently, DBM is finalizing the draft joint circular containing enhanced guidelines with provisions for the following: streamlined processes, compressed schedules, transparency in the allocation of the shares, and posting/reporting requirements in the utilization of the shares.

The 2018 report recorded a total of PhP 63.4 billion in reconciled revenues from the mining, oil, and gas industries for 2018. This amount is higher by 68% than the reconciled revenues reported in 2017. The report explains that the increase was a result of the implementation of the Tax Reform for Acceleration and Inclusion (TRAIN) Law and the overall improvement of the PH-EITI reporting process, among other factors. 

In order to improve reporting of subnational data, the PH-EITI has collaborated with the Bureau of Local Government and Finance to implement an online reporting system for local government units. This system ensures timely reporting of extractive revenues in mining communities. With the implementation of Local Government Unit (LGU) online reporting, reported LGU reconciled amount increased from PHP 452 million in 2014 to PHP 626 million in 2016 and PHP 1 million in 2017.

The PH-EITI MSG has agreed to implement mainstreaming, and has taken steps to ensure further mainstreaming of its EITI implementation. The PH-EITI has initiated the Systematic Electronic Extractives Disclosure or SEED initiative, which is a package of innovations developed by PH-EITI and/or its partner agencies and organizations to mainstream extractives transparency in the Philippines.

The 2020 workplan includes several steps on advancing mainstreaming further, including:

• Implementation of a scoping study on mainstreaiming
• Review of the MSGs roles and responsibilities in light of PH-EITI moving towards mainstreaming

In 2019, the MSG agreed that mainstreamed EITI implementation in the Philippines would have a central portal and could potentially involve other interconnected, uniform, and standardized portals of implementing government agencies and companies.
It was also decided that thier forthcoming 6th EITI report (FY 2018) will be produced as a transitional report for mainstreaming. Data will be collected through the Online Reporting in the Extractives tool (ORE) and published on the PH-EITI website. 

The EITI encourages multi-stakeholder groups to explore innovative approaches to make the EITI more relevant and useful.

• The 2018 EITI Report includes a pilot reporting of over 100 beneficial owners
• The 2018 Report used an Online Reporting in the Extractives (ORE) tool that has been developed to make reporting of companies and national government agencies more efficient and cost-effective. The ORE tool continues to be enhanced with a view to possibly making it the official central data collection and disclosure system among reporting entities.
• The 2017  Report also includes a pilot report on transparency in Small-Scale Mining (SSM) in South Cotabato.
• The 2015-2016 EITI Report includes a scoping study on beneficial ownership and a pilot reporting of six large-scale non-metallic mining companies.
• A contracts portal was launched in October 2015, extracting contract information from PDF and allowing more interactive use.
• The 2014 EITI Report includes information on Mining Forestry Programmes as well as a list of environmental projects and expenditures of mining companies
• The 2013 EITI Report includes two scoping studies on small-scale metallic mining and large-scale non-metallic mining.
• The 2012 Report in cludes figures on commodity reserves and information on free and prior informed consent (FPIC), environmental funds and detailed explanations of contracts and the policy for contract disclosure.

The Government of the Philippines committed to implementing EITI on 6 July 2012, through  Executive Order No. 79. The following year, in 2013, the Philippines officially became an EITI candidate country. The MSG’s Terms of Reference notes the roles and responsibilities of MSG members.

The PH-EITI work plan, agreed by the MSG, contains the following five objectives for EITI implementation in 2020-2022, reflecting on national priorities in the extractive sector:

1. Improve the platform of commitment for transparency and create a safe space for dialogue and debate on natural resource governance.
2. Maintain an impartial and verified database on the extractives sector.
3. Develop capacities to effectively participate in natural resource governance.
4. Strengthen and expand the linkages of EITI.
5. Formulate and propose policy reforms, including processes and mechanisms of natural resource governance.

An Open Data Policy was agreed in 2016. 

Governance 

PH-EITI is administered by the Multi-stakeholder Group or MSG chaired by the Department of Finance, and composed of representatives of government, industry, and civil society.

• The government is represented by the Department of Finance, Department of Environment and Natural Resources-Mines and Geosciences Bureau, Department of Energy, Department of the Interior and Local Government, and the Union of Local Authorities of the Philippines.
• The industry or business sector is represented by the Chamber of Mines of the Philippines, and the Petroleum Association of the Philippines.
• Civil society is represented by Bantay Kita-Publish What You Pay Philippines.

The MSG has been involved in Congressional hearings on legislative amendments where provisions on making the EITI mandatory for companies are included. 

The EITI has helped create opportunities for dialogue and constructive engagement on issues of extractive industries management, helping to start building trust and reduce conflict between the three constituencies.The PH-EITI Secretariat and MSG have been proactive in ensuring the public accessibility of EITI information both through online channels, in hard copy through dissemination and outreach events and through several ‘use of data’ events.

Name of Chairman of MSG:

Ms Maria Teresa S. HABITAN,  Assistant Secretary, Department of Finance, Philippines

Name of National Coordinator: 

N/A

Ministries involved

• Department of Finance
• Department of Environment and Natural Resources-Mines and Geosciences Bureau
• Department of Energy
• Department of the Interior and Local Government
• The Union of Local Authorities of the Philippines

Timeline