Summary
On behalf of the Board of the Extractive Industries Transparency Initiative (EITI), the International EITI Secretariat seeks applications from suitably qualified service providers to be accredited to undertake EITI Validation. The EITI sets a global standard for transparency in the extractive industries. It supports improved governance in resource-rich countries through the verification and full publication of company payments and government revenues from oil, gas and mining. Validation is the EITI's quality assurance mechanism to ensure that the countries implementing the initiative are fully complying with the requirements of the EITI standard. The methodology for Validation is set out in the EITI Rules[1].
The Validator procurement process is carried out by national contracting agencies (governments or legally mandated EITI multi-stakeholder groups) in EITI implementing countries. They are required to follow set EITI standards for procurement of the Validator and implementation of Validation in accordance with Policy note #2 of the EITI Rules. Adherence to these standards is ensured by the EITI International Secretariat (an association registered in Norway) which is not a contracting party. Only Validators that have beforehand been accredited by the EITI Board are eligible to undertake this work. The work should be undertaken in accordance with the standard Terms of reference for EITI Validators (Chapter 4.6 of the EITI Rules).
The list of firms currently accredited to perform validation is available online[2]. These firms are invited to re-apply. In assessing their applications, the Board will take into account the quality of their validation work to date. The EITI Board reserves the right to revise the list of accredited Validators at any time.
Additional information is presented below regarding:
(1) Background on EITI Validation
(2) Overview of the Validator Procurement Process
(3) Skills and competencies required of Validators
(4) Details on the application process to become an accredited Validator
Disclaimer: The EITI International Secretariat is not a contracting party. Accredited Validators are not guaranteed any Validation work. Validators are selected through procurement process undertaken in implementing countries. Local procurement regulations and requirements apply.
Background
Validation is EITI's quality assurance mechanism and an essential feature of the EITI process. It serves two critical functions. First, it safeguards the EITI brand by holding all EITI implementing countries to the same global standard. Second, it promotes dialogue and learning at the country level.
Validation is the mechanism that the EITI Board uses to determine a country’s candidate or compliant status. There are currently 22 Candidate countries (and 14 Compliant countries). These countries have met the five “sign-up” requirements and are at different stages in EITI implementation. The EITI requires that Candidate countries complete Validation within two and a half years of acquiring Candidate status to assess whether they have achieved EITI Compliance.
Validation is not an audit. It does not repeat the disclosure and reconciliation work that is carried out to produce EITI reports. Validation has broader objectives: it evaluates EITI implementation in consultation with stakeholders, it verifies achievements with reference to the EITI global standard, and it identifies opportunities to strengthen the EITI process going forward.
Through Validation, countries that demonstrate their compliance with the EITI (or demonstrate substantive progress toward achieving this goal) receive international recognition for their efforts and achievements. If Validation is not completed, or if the validation shows that there has been no meaningful progress toward achieving EITI Compliance, the EITI Board will revoke that country’s Candidate status.
The Validation Process is carried out at the national level and is overseen by the national multi-stakeholder group. Validation firms are contracted directly by national governments or EITI multi-stakeholder groups that are legally mandated. The Validation methodology is set out in the EITI Rules.
Overview of the Validator Procurement Process
EITI Policy Note #2 provides detailed advice to Implementing Countries on the process for procuring and contracting an EITI Validator. It sets out the key steps in the process, and the roles and responsibilities of the Implementing Countries, the Validator and the EITI Board and EITI secretariat. Applicants should familiarize themselves with this process.
Skills and competencies required
1. The Validator will need to bring a number of key skills and competencies to bear on the process of validation. The Validator (or members of the validation team) will need to be able to demonstrate that they have:
- Expertise, knowledge and experience of the EITI.
- Technical and financial skills, including knowledge of international auditing standards, private sector audit reports, government audit reports and public financial management.
- Technical extractive industry sector skills, including: knowledge of the oil, gas and mining sectors.
- Regional and country knowledge: a demonstrable track record in similar work in regions and countries where the EITI is implemented, including fragile states.
- Demonstrable ability to conduct work and produce reports in English and French and at least one third language (Russian, Spanish, or Portuguese).
- Experience of development work, including knowledge of governance mechanisms and working with civil society.
- Credibility and independence: the Validator needs to be credible in the eyes of the host government, the private sector and civil society.
- Local knowledge, though this can be drawn from national partners where no conflict of interest exists
2. It is expected that the Validator will comprise of a number of people with key skills and competencies. These may be drawn from one firm, such as an international audit firm, or comprise a number of separate individuals with appropriate skills and background. In such a situation, it will be important to have one person or firm to lead the process and take overall responsibility.
3. Possible validation teams:
- A team may be drawn from an international consulting or audit firm.
- A team may be put together by an international audit firm, drawing on external contacts.
- A team may reflect the multi-stakeholder character of the EITI.
Accredited Validators will be asked to present a list of all proposed team members to the EITI Board for approval.
4. In order to ensure the quality and independence of the Validation exercise, Validators are required to notify the contracting agency and the EITI Secretariat of any actual or potential conflict of interest, together with recommendations as to how the conflict can be avoided.
Application procedure
Process
Suitably qualified service providers should submit an expression of interest outlining how they meet the above requirements. The expression of interest should demonstrate:
1) Economic and financial capacity, stating the average annual turnover of the organization for the last three years.
2) Professional capacity in terms of in-house staff to manage 100% and implement at least 60% of a Validation mission. Organizations may, where appropriate and for a particular contract, rely on the capacities of other entities, regardless of the legal nature of the links which it has with them. In case of consortia, capacity of partners must be demonstrated. To this end, the candidate has to submit:
- A list of permanent in-house experts
- A list of temporary experts the candidate can provide
- A list of experts the partner(s) can provide
- CVs for the above experts
3) Technical capacity of candidate by including a list of at least 6 reference projects. For each reference, the list must indicate the link or links with the fields covered by the EITI generally and/or an EITI Validation process. At least 50 % of the references must be for projects carried out in the current EITI implementing countries.
Application format and details to be provided
The application should include a summary (no longer than 500 words) summarizing the applicant’s experience and expertise.
Applicants should specify a contact person for the application, including email, phone and postal address.
Submission of applications
Applications must be submitted in English exclusively to the EITI International Secretariat by email and official postal service. The electronic application must be submitted by 8 October 2012. The Secretariat will confirm receipt of all applications. Applications lodged after this date will not be accepted.
By email to:
Official postal service:
Validator Applications
Attention: Sam Bartlett
EITI International Secretariat
Ruseløkkveien 26
0251 Oslo
Norway
Selection Criteria
Tenders for this contract will be assessed in accordance with good commercial practice, taking into account the consultant’s relevant experience for the assignment and the qualifications of the key staff proposed.
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