EITI highlights transparent management of oil, gas and mining sectors
Wednesday 11 January - The EITI Board has determined that Peru has made “meaningful progress” in implementing the EITI Standard. The international EITI Board reached this decision following a Validation that commenced on 1 July 2016. Validation is the EITI’s independent evaluation mechanism. Having been compliant with the EITI Rules since 2012, this is the first time Peru is assessed against the more demanding 2016 EITI Standard.
Peru was the first country in Latin America to become complaint with the EITI Rules and the first implementing country to host the EITI Global Conference. As one of the pioneer countries in implementing the EITI, Peru has used the EITI to strengthen transparency and improve the management of revenues from the oil, gas and mining sectors. Peru has produced EITI Reports, covering 12 fiscal years (from 2004 to 2015). The reports are used by parliamentarians, national and regional government officials and other stakeholders in monitoring extractive revenues. Supervisory bodies, such as the Comptroller General, have drawn on the EITI Reports to recommend improvements in government systems.
The EITI multi-stakeholder process and community outreach efforts have contributed to building trust. As part of the Validation process, stakeholders explained how the EITI has improved access to revenue data and has facilitated acceptance of this data as trustworthy. In recent years, EITI-Peru has sought to improve the management of extractive revenues in the regions that host extractive industries. Stakeholders in the Moquegua and Piura regions have welcomed EITI implementation as a platform for lifting their capacity to monitor the industry, discussing local industry impacts and ensuring better utilisation of revenues.
Fredrik Reinfeldt, Chair of the EITI, said:
“For the last decade, Peru has led the way in EITI implementation in Latin America. This work is a tangible demonstration of the government’s commitment to greater transparency and accountability, working in partnership with industry and civil society. The Validation process has highlighted the progress made on revenue transparency, contract transparency, production data, distribution of revenues and transfers from the national to subnational governments. The recent efforts to extend this work to the region is exemplary”.
Peru has taken steps to address all requirements of the EITI Standard, however the Validation has also identified a number of areas for further improvement. These corrective actions include more thorough documentation of scoping decisions, data quality assurances procedures, and documenting the impact of this work. In accordance with the Board’s decision, Peru has until 11 January 2018 to implement these corrective actions ahead of a second Validation.
- The EITI is a coalition of governments, companies, civil society groups, investors and international organisations. Learn more at eiti.org.
- EITI is chaired by Fredrik Reinfeldt. Mr Reinfeldt was the Prime Minister of Sweden (2006-2014).
- 51 countries are members of the EITI. No country has yet made satisfactory progress with the 2016 EITI Standard. See the list of countries at www.eiti.org/countries.
- Validation is the EITI’s independent evaluation mechanism. It assesses countries against progress made in meeting the 2016 Standard.
- The Board decision in full, including corrective actions and impact of the EITI in the country, can be found here: eiti.org/validation/peru/2017
- The reports giving an extensive review of Peru's extractive sector can be found here: https://eiti.org/document/validation-peru-2017-documentation
- The Board has taken decisions on the status of three more countries on 11 January: Mongolia, Nigeria and Timor-Leste
- See here for a full explanation of the various levels of progress under the EITI Standard.