Published Date: 
February, 2016

The EITI Standard 2016

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The EITI Standard outlines the requirements applicable to countries implementing the EITI as well as the Articles of Association governing the EITI.

The EITI Standard 2016 was formally launched at the EITI Global Conference in Lima 24-25 February 2016.

The International Secretariat has developed guidance notes and templates to support countries with the implementation of the requirements. 

The Standard in English is the primary document. French, Spanish, Portuguese and Russian versions were commissioned by the International Secretariat. In case of doubts or differences in interpretation, it is the English version that prevails.
 
The Ukrainian and Mongolian versions were commissioned by the respective national secretariats. The International Secretariat does not take responsibility for the quality of the translation. 

See overview of key changes from the 2013 EITI Standard which it replacesSee the previous 2013 edition.

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EITI Requirement 1 - Oversight by the multi-stakeholder group.
1.1 Government engagement.
1.2 Company engagement.
1.3 Civil society engagement.
1.4 Multi-stakeholder group.
1.5 Work plan.

EITI REQUIREMENT 2 - Legal and institutional framework, including allocation of contracts and licenses.
2.1 Legal framework and fiscal regime.
2.2 License allocations.
2.3 Register of licenses.
2.4 Contracts.
2.5 Beneficial ownership.
2.6 State participation.

EITI REQUIREMENT 3 - Exploration and production​.
3.1 Exploration
3.2 Production
3.3 Exports

EITI REQUIREMENT 4 - Revenue collection.
4.1 Comprehensive disclosure of taxes and revenues.
4.2 Sale of the state’s share of production or other revenues collected in kind.
4.3 Infrastructure provisions and barter arrangements.
4.4 Transportation revenues.
4.5 Transactions related to state-owned enterprises.
4.6 Subnational payments.
4.7 Level of disaggregation.
4.8 Data timeliness.
4.9 Data quality and assurance.

EITI REQUIREMENT 5 - Revenue allocations.
5.1 Distribution of extractive industry revenues.
5.2 Subnational transfers.
5.3 Revenue management and expenditures.

EITI REQUIREMENT 6 - Social and economic spending.
6.1 Social expenditures by extractive companies.
6.2 Quasi-fiscal expenditures.
6.3 The contribution of the extractive sector to the economy.

EITI REQUIREMENT 7 - Outcomes and impact.
7.1 Public debate.
7.2 Data accessibility.
7.3 Discrepancies and recommendations from EITI Reports.
7.4 Review the outcomes and impact of EITI implementation.

EITI REQUIREMENT 8 - Compliance and deadlines for implementing countries.
8.1 Adapted implementation.
8.2 EITI reporting deadlines.
8.3 EITI Validation deadlines and consequences.
8.4 Annual progress report deadlines.
8.5 Extensions.
8.6 Suspension.
8.7 Delisting.
8.8 Appeals.

 

EITI Requirement 1 - Oversight by the multi-stakeholder group.

Overview: The EITI requires effective multi-stakeholder oversight, including a functioning multi-stakeholder group that involves the government, companies, and the full, independent, active and effective participation of civil society.

The key requirements related to multi-stakeholder oversight include: (1.1) government engagement; (1.2) industry engagement; (1.3) civil society engagement; (1.4) the establishment and functioning of a multi-stakeholder group; and (1.5) an agreed work plan with clear objectives for EITI implementation, and a timetable that is aligned with the deadlines established by the EITI Board.

1.1 Government engagement.

a)    The government is required to issue an unequivocal public statement of its intention to implement the EITI. The statement must be made by the head of state or government, or an appropriately delegated government representative.

b)    The government is required to appoint a senior individual to lead the implementation of the EITI. The appointee should have the confidence of all stakeholders, the authority and freedom to coordinate action on the EITI across relevant ministries and agencies, and be able to mobilise resources for EITI implementation.

c)    The government must be fully, actively and effectively engaged in the EITI process.

d)    The government must ensure that senior government officials are represented on the multi-stakeholder group.

1.2 Company engagement.

a)    Companies must be fully, actively and effectively engaged in the EITI process.

b)    The government must ensure that there is an enabling environment forcompany participation with regard to relevant laws, regulations, and administrative rules as well as actual practice in implementation of the EITI. The fundamental rights of company representatives substantively engaged in the EITI, including but not restricted to members of the multi-stakeholder group, must be respected.

c)    The government must ensure that there are no obstacles to company participation in the EITI process.

1.3 Civil society engagement.

In accordance with the civil society protocol:

a)    Civil society must be fully, actively and effectively engaged in the EITI process.

b)    The government must ensure that there is an enabling environment for civil society participation with regard to relevant laws, regulations, and administrative rules as well as actual practice in implementation of the EITI. The fundamental rights of civil society substantively engaged in the EITI, including but not restricted to members of the multi-stakeholder group, must be respected.

c)    The government must ensure that there are no obstacles to civil society participation in the EITI process.

d)    The government must refrain from actions which result in narrowing or restricting public debate in relation to implementation of the EITI.

e)    Stakeholders, including but not limited to members of the multi-stakeholder group must:

i.    Be able to speak freely on transparency and natural resource governance issues.

ii.    Be substantially engaged in the design, implementation, monitoring and evaluation of the EITI process, and ensure that it contributes to public debate.

iii.   Have the right to communicate and cooperate with each other.

iv.   Be able to operate freely and express opinions about the EITI without restraint, coercion or reprisal.

1.4 Multi-stakeholder group.

a)    The government is required to commit to work with civil society and companies, and establish a multi-stakeholder group to oversee the implementation of the EITI. In establishing the multi-stakeholder group, the government must:

i.    Ensure that the invitation to participate in the group is open and transparent.

ii.    Ensure that stakeholders are adequately represented. This does not mean that they need to be equally represented numerically. The multi-stakeholder group must comprise appropriate stakeholders, including but not necessarily limited to: the private sector; civil society, including independent civil
society groups and other civil society such as the media and unions; and relevant government entities which can also include parliamentarians. Each stakeholder group must have the right to appoint its own representatives, bearing in mind the desirability of pluralistic and diverse representation. The nomination process must be independent and free from any suggestion of coercion. Civil society groups involved in the EITI as members of the multi-stakeholder group must be operationally, and in policy terms, independent of government and/or companies.

iii.   Consider establishing the legal basis of the group.

b)    The multi-stakeholder group is required to agree clear public Terms of Reference
(ToRs) for its work. The ToRs should, at a minimum, include provisions on:

The role, responsibilities and rights of the multi-stakeholder group:

i.    Members of the multi-stakeholder group should have the capacity to carry out their duties.

ii.    The multi-stakeholder group should undertake effective outreach activities with civil society groups and companies, including through communication such as media, website and letters, informing stakeholders of the government’s commitment to implement the EITI, and the central role of companies and civil society. The multi-stakeholder group should also widely disseminate the public information that results from the EITI process such as the EITI Report.

iii.   Members of the multi-stakeholder group should liaise with their constituency groups.

Approval of work plans, EITI Reports and annual progress reports:

iv.   The multi-stakeholder group is required to approve annual work plans, the appointment of the Independent Administrator, the Terms of Reference for the Independent Administrator, EITI Reports and annual progress reports.

v.    The multi-stakeholder group should oversee the EITI reporting process and engage in Validation.

Internal governance rules and procedures:

vi.   The EITI requires an inclusive decision-making process throughout implementation, with each constituency being treated as a partner. Any member of the multi-stakeholder group has the right to table an issue for discussion. The multi-stakeholder group should agree and publish its procedures for nominating and changing multi-stakeholder
group representatives, decision-making, the duration of the mandate and the frequency of meetings. This should include ensuring that there is a process for changing group members that respects the principles set out in Requirement 1.4.a. Where the multi-stakeholder group has a practice of per diems for attending EITI meetings or other payments to multi-stakeholder group members, this practice should be transparent and should not create conflicts of interest.

vii.  There should be sufficient advance notice of meetings and timely circulation of documents prior to their debate and proposed adoption.

viii. The multi-stakeholder group must keep written records of its discussions and decisions.

1.5 Work plan.

The multi-stakeholder group is required to maintain a current work plan, fully costed and aligned with the reporting and Validation deadlines established by the EITI Board. The work plan must:

a)    Set EITI implementation objectives that are linked to the EITI Principles and reflect national priorities for the extractive industries. Multi-stakeholder groups are encouraged to explore innovative approaches to extending EITI
implementation to increase the comprehensiveness of EITI reporting and public understanding of revenues and encourage high standards of transparency and accountability in public life, government operations and in business.

b)    Reflect the results of consultations with key stakeholders, and be endorsed by the multi-stakeholder group.

c)    Include measurable and time bound activities to achieve the agreed objectives.
The scope of EITI implementation should be tailored to contribute to the desired objectives that have been identified during the consultation process. The work plan must:

i.    Assess and outline plans to address any potential capacity constraints in government agencies, companies and civil society that may be an obstacle to effective EITI implementation.

ii.    Address the scope of EITI reporting, including plans for addressing technical aspects of reporting, such as comprehensiveness (4.1) and data reliability (4.9).

iii.   Identify and outline plans to address any potential legal or regulatory obstacles to EITI implementation, including, if applicable, any plans to incorporate the EITI Requirements within national legislation or regulation.

iv.   Outline the multi-stakeholder group’s plans for implementing the recommendations from Validation and EITI reporting.

d)    Identify domestic and external sources of funding and technical assistance where appropriate in order to ensure timely implementation of the agreed work plan.

e)    Be made widely available to the public, for example published on the national EITI website and/or other relevant ministry and agency websites, in print media or in places that are easily accessible to the public.

f)    Be reviewed and updated annually. In reviewing the work plan, the multi- stakeholder group should consider extending the detail and scope of
EITI reporting including addressing issues such as revenue management and expenditure (5.3), transportation payments (4.4), discretionary social expenditures (6.1.b), ad hoc subnational transfers (5.2.b), beneficial ownership (2.5) and contracts (2.4). In accordance with Requirement 1.4.b (viii), the multi- stakeholder group is required to document its discussion and decisions.

g)    Include a timetable for implementation that is aligned with the reporting and Validation deadlines established by the EITI Board (8.1-8.4) and that takes into account administrative requirements such as procurement processes and funding.

EITI REQUIREMENT 2 - Legal and institutional framework, including allocation of contracts and licenses.

Overview: The EITI requires disclosures of information related to the rules for how the extractive sector is managed, enabling stakeholders to understand the laws and procedures for the award of exploration and production rights, the legal, regulatory and contractual framework that apply to the extractive sector, and the institutional responsibilities of the State in managing the sector. The EITI Requirements related to a transparent legal framework and award of extractive industry rights include: (2.1) legal framework and fiscal regime; (2.2) license allocations (2.3) register of licenses; (2.4) contracts; (2.5) beneficial ownership; and (2.6) state-participation in the extractive sector.

2.1 Legal framework and fiscal regime.

a)    Implementing countries must disclose a description of the legal framework and fiscal regime governing the extractive industries. This information must include a summary description of the fiscal regime, including the level of fiscal devolution, an overview of the relevant laws and regulations, and information on the roles and responsibilities of the relevant government agencies.

b)    Where the government is undertaking reforms, the multi-stakeholder group is encouraged to ensure that these are documented.

2.2 License allocations.

a)    Implementing countries are required to disclose the following information related to the award or transfer of licenses pertaining to the companies covered in the EITI Report during the accounting period covered by the EITI Report:

i.       a description of the process for transferring or awarding the license;

ii.      the technical and financial criteria used;

iii.   information about the recipient(s) of the license that has been transferred or awarded, including consortium members where applicable; and

iv.   any non-trivial deviations from the applicable legal and regulatory framework governing license transfers and awards.

It is required that the information set out above is disclosed for all license awards and transfers taking place during the accounting year covered by the EITI Report, including license allocations pertaining to companies that are not included in the EITI Report, i.e. where their payments fall below the agreed materiality threshold. Any significant legal or practical barriers preventing such comprehensive disclosure should be documented and explained in the EITI Report, including an account of government plans for seeking to overcome such barriers and the anticipated timescale for achieving them.

b)    Where companies covered in the EITI Report hold licenses that were allocated prior to the accounting period of the EITI Report, implementing countries are encouraged, if feasible, to disclose the information set out in 2.2(a) for these licenses.

c)    Where licenses are awarded through a bidding process during the accounting period covered by the EITI Report, the government is required to disclose the list of applicants and the bid criteria.

d)    Where the requisite information set out in 2.2(a-c) is already publicly available, it is sufficient to include a reference or link in the EITI Report.

e)    The multi-stakeholder group may wish to include additional information on the allocation of licenses in the EITI Report, including commentary on the efficiency and effectiveness of licensing procedures.

2.3 Register of licenses.

a)    The term license in this context refers to any license, lease, title, permit, contract or concession by which the government confers on a company(ies) or individual(s) rights to explore or exploit oil, gas and/or mineral resources.

b)    Implementing countries are required to maintain a publicly available register or cadastre system(s) with the following timely and comprehensive information regarding each of the licenses pertaining to companies covered in the EITI Report:

i.       License holder(s).

ii.      Where collated, coordinates of the license area. Where coordinates are not collated, the government is required to ensure that the size and location of the license area are disclosed in the license register and that the coordinates are publicly available from the relevant government agency without unreasonable fees and restrictions. The EITI Report should include guidance on how to access the coordinates and the cost, if any, of accessing the data. The EITI Report should also document plans and timelines for making this information freely and electronically available through the license register.

iii.   Date of application, date of award and duration of the license.iv.   In the case of production licenses, the commodity being produced.

It is expected that the license register or cadastre includes information about licenses held by all entities, including companies and individuals or groups that are not included in the EITI Report, i.e. where their payments fall below the agreed materiality threshold. Any significant legal or practical barriers preventing such comprehensive disclosure should be documented and explained in the EITI Report, including an account of government plans for seeking to overcome such barriers and the anticipated timescale for achieving them.

c)    Where the information set out in 2.3.b is already publicly available, it is sufficient to include a reference or link in the EITI Report. Where such registers or cadastres do not exist or are incomplete, the EITI Report should disclose any gaps in the publicly available information and document efforts to strengthen these systems. In the interim, the EITI Report itself should include the information set out in 2.3.b above.

2.4 Contracts.

a)    Implementing countries are encouraged to publicly disclose any contracts and licenses that provide the terms attached to the exploitation of oil, gas and minerals.

b)    It is a requirement that the EITI Report documents the government’s policy on disclosure of contracts and licenses that govern the exploration and exploitation of oil, gas and minerals. This should include relevant legal provisions, actual disclosure practices and any reforms that are planned or underway. Where applicable, the EITI Report should provide an overview of the contracts and licenses that are publicly available, and include a reference or link to the location where these are published.

c)    The term contract in 2.4(a) means:

i.       The full text of any contract, concession, production-sharing agreement or other agreement granted by, or entered into by, the government which provides the terms attached to the exploitation of oil gas and mineral resources.

ii.      The full text of any annex, addendum or rider which establishes details relevant to the exploitation rights described in 2.4(c)(i) or the execution thereof.

iii.   The full text of any alteration or amendment to the documents described in 2.4(c)(i) and 2.4(c)(ii).

d)    The term license in 2.4(a) means:

i.       The full text of any license, lease, title or permit by which a government confers on a company(ies) or individual(s) rights to exploit oil, gas and/or mineral resources.

ii.      The full text of any annex, addendum or rider that establishes details relevant to the exploitation rights described in in 2.4(d)(i) or the execution thereof.

ii.      The full text of any alteration or amendment to the documents described in2.4(d)(i) and 2.4(d)(ii).

2.5 Beneficial ownership.

a)    It is recommended that implementing countries maintain a publicly available register of the beneficial owners of the corporate entity(ies) that bid for, operate or invest in extractive assets, including the identity(ies) of their beneficial owner(s), the level of ownership and details about how ownership or control is exerted. Where possible, beneficial ownership information should be incorporated in existing filings by companies to corporate regulators, stock exchanges or agencies regulating extractive industry licensing. Where this information is already publicly available, the EITI Report should include guidance on how to access this information.

b)    It is required that:

i.       The EITI Report documents the government’s policy and multi-stakeholder group’s discussion on disclosure of beneficial ownership. This should include details of the relevant legal provisions, actual disclosure practices and any reforms that are planned or underway related to beneficial ownership disclosure.

ii.      By 1 January 2017, the multi-stakeholder group publishes a roadmap for disclosing beneficial ownership information in accordance with clauses (c)- (f) below. The multi-stakeholder group will determine all milestones and deadlines in the roadmap, and the multi-stakeholder group will evaluate implementation of the roadmap as part of the multi-stakeholder group’s annual progress report.

c)    As of 1 January 2020, it is required that implementing countries request, and companies disclose, beneficial ownership information for inclusion in the EITI Report. This applies to corporate entity(ies) that bid for, operate or invest in extractive assets and should include the identity(ies) of their beneficial owner(s), the level of ownership and details about how ownership or control is exerted. Any gaps or weaknesses in reporting on beneficial ownership informationmust be disclosed in the EITI Report, including naming any entities that failed to submit all or parts of the beneficial ownership information. Where a country is facing constitutional or significant practical barriers to the implementation of this requirement by 1 January 2020, the country may seek adapted implementation in accordance with requirement 8.1.

d)    Information about the identity of the beneficial owner should include the name of the beneficial owner, the nationality, and the country of residence, as well

as identifying any politically exposed persons. It is also recommended that the national identity number, date of birth, residential or service address, and means of contact are disclosed.

e)    The multi-stakeholder group should agree an approach for participating companies assuring the accuracy of the beneficial ownership information they provide. This could include requiring companies to attest the beneficial ownership declaration form through sign off by a member of the senior management team or senior legal counsel, or submit supporting documentation.

f)        Definition of beneficial ownership:

i.       A beneficial owner in respect of a company means the natural person(s) who directly or indirectly ultimately owns or controls the corporate entity.

ii.      The multi-stakeholder group should agree an appropriate definition of the term beneficial owner. The definition should be aligned with (f)(i) above and take international norms and relevant national laws into account, and should include ownership threshold(s). The definition should also specify reporting obligations for politically exposed persons.

iii.   Publicly listed companies, including wholly-owned subsidiaries, are required to disclose the name of the stock exchange and include a link to the stock exchange filings where they are listed.

iv.   In the case of joint ventures, each entity within the venture should disclose its beneficial owner(s), unless it is publicly listed or is a wholly-owned subsidiary of a publicly listed company. Each entity is responsible for the accuracy of the information provided.

g)    The EITI Report should also disclose the legal owners and share of ownership of such companies.

2.6 State participation.

Where state participation in the extractive industries gives rise to material revenue payments, implementing countries must disclose:

a)    An explanation of the prevailing rules and practices regarding the financial relationship between the government and state-owned enterprises (SOEs), e.g., the rules and practices governing transfers of funds between the SOE(s) and the state, retained earnings, reinvestment and third-party financing. 

For the purpose of EITI reporting, a SOE is a wholly or majority government- owned company that is engaged in extractive activities on behalf of the government. Based on this, the multi-stakeholder group is encouraged to discuss and document its definition of SOEs taking into account national laws and government structures.

b)    Disclosures from the government and SOE(s) of their level of ownership in mining, oil and gas companies operating within the country’s oil, gas and mining sector, including those held by SOE subsidiaries and joint ventures, and any changes in the level of ownership during the reporting period. 

This information should include details regarding the terms attached to their equity stake, including their level of responsibility to cover expenses at various phases of the project cycle, e.g., full-paid equity, free equity, carried interest. Where there have been changes in the level of government and SOE(s) ownership during the EITI reporting period, the government and SOE(s) are expected to disclose the terms of the transaction, including details regarding valuation and revenues. Where the government and SOE(s) have provided loans or loan guarantees to mining, oil and gas companies operating within the country, details on these transactions should be disclosed.

EITI REQUIREMENT 3 - Exploration and production.

Overview: The EITI requires disclosures of information related to exploration and production, enabling stakeholders to understand the potential of the sector.
The EITI Requirements related to a transparency in exploration and production activities include: (3.1) information about exploration activities; (3.2) production data; and (3.3) export data.

3.1 Exploration. Implementing countries should disclose an overview of the extractive industries, including any significant exploration activities.

3.2 Production. Implementing countries must disclose production data for the fiscal year covered by the EITI Report, including total production volumes and the value of production by commodity, and, when relevant, by state/region. This could include sources of the production data and information on how the production volumes
and values disclosed in the EITI Report have been calculated.

3.3 Exports. Implementing countries must disclose export data for the fiscal year covered by the EITI Report, including total export volumes and the value of exports by commodity, and, when relevant, by state/region of origin. This could include sources of the export data and information on how the export volumes and values disclosed in the EITI Report have been calculated.

EITI REQUIREMENT 4 - Revenue collection.

Overview: An understanding of company payments and government revenues can inform public debate about the governance of the extractive industries. The EITI requires a comprehensive reconciliation of company payments and government revenues from the extractive industries. The EITI Requirements related to revenue collection include: (4.1) comprehensive disclosure of taxes and revenues; (4.2) sale of the state’s share of production or other revenues collected in kind; (4.3) Infrastructure provisions and barter arrangements; (4.4) transportation revenues; (4.5) SOE transactions; (4.6) subnational payments; (4.7) level of disaggregation; (4.8) data timeliness; and (4.9) data quality.

4.1 Comprehensive disclosure of taxes and revenues.

a)    In advance of the reporting process, the multi-stakeholder group is required to agree which payments and revenues are material and therefore must
be disclosed, including appropriate materiality definitions and thresholds. Payments and revenues are considered material if their omission or misstatement could significantly affect the comprehensiveness of the EITI Report. A description of each revenue stream, related materiality definitions and thresholds should be disclosed. In establishing materiality definitions and thresholds, the multi-stakeholder group should consider the size of the revenue streams relative to total revenues. The multi-stakeholder group should document the options considered and the rationale for establishing the definitions and thresholds.

b)    The following revenue streams should be included:

i.     The host government’s production entitlement (such as profit oil)

ii.    National state-owned company production entitlement iii.   Profits taxes

iv.   Royalties v.    Dividends

vi.   Bonuses, such as signature, discovery and production bonuses

vii.  License fees, rental fees, entry fees and other considerations for licences and/or concessions

viii. Any other significant payments and material benefit to government

Any revenue streams or benefits should only be excluded where they are not applicable or where the multi-stakeholder group agrees that their omission will not materially affect the comprehensiveness of the EITI Report.

c)    Implementing countries must provide a comprehensive reconciliation of government revenues and company payments, including payments to and from state-owned enterprises, in accordance with the agreed scope. All companies making material payments to the government are required to comprehensively disclose these payments in accordance with the agreed scope. An entity should only be exempted from reporting if it can be demonstrated that its payments and revenues are not material. All government entities receiving material revenues are required to comprehensively disclose these revenues in accordance with the agreed scope.

d)    Unless there are significant practical barriers, the government is additionally required to provide aggregate information about the amount of total revenues received from each of the benefit streams agreed in the scope of the EITI Report, including revenues that fall below agreed materiality thresholds. Where this data is not available, the Independent Administrator should draw on any relevant data and estimates from other sources in order to provide a comprehensive account of the total government revenues.

4.2 Sale of the state’s share of production or other revenues collected in kind.

Where the sale of the state’s share of production or other revenues collected in kind is material, the government, including state-owned enterprises, are required to disclose the volumes sold and revenues received. The published data must be disaggregated by individual buying company and to levels commensurate with the reporting of other payments and revenue streams (4.7). Reporting could also break down disclosures by the type of product, price, market and sale volume. Where practically feasible, the multi-stakeholder group is encouraged to task the Independent Administrator with reconciling the volumes sold and revenues received by including the buying companies in the reporting process.

4.3 Infrastructure provisions and barter arrangements.

The multi-stakeholder group and the Independent Administrator are required to consider whether there are any agreements, or sets of agreements involving the provision of goods and services (including loans, grants and infrastructure works), in full or partial exchange for oil, gas or mining exploration or production concessions or physical delivery of such commodities. To be able to do so, the multi-stakeholder group and the Independent Administrator need to gain a full understanding of: the terms of the relevant agreements and contracts, the parties involved, the resources which have been pledged by the state, the value of the balancing benefit stream (e.g. infrastructure works), and the materiality of these agreements relative to conventional contracts. Where the multi-stakeholder group concludes that these agreements are material, the multi-stakeholder group and the Independent Administrator are required to ensure that the EITI Report addresses these agreements, providing a level of detail and transparency commensurate with the disclosure and reconciliation of other payments and revenues streams. Where reconciliation of key transactions is not feasible, the multi-stakeholder group should agree an approach for unilateral disclosure by the parties to the agreement(s) to be included in the EITI Report.

4.4 Transportation revenues.

Where revenues from the transportation of oil, gas and minerals are material, the government and state-owned enterprises (SOEs) are expected to disclose the revenues received. The published data must be disaggregated to levels commensurate with the reporting of other payments and revenue streams (4.7). Implementing countries could disclose:

a)    A description of the transportation arrangements including: the product; transportation route(s); and the relevant companies and government entities, including SOE(s), involved in transportation.

b)    Definitions of the relevant transportation taxes, tariffs or other relevant payments, and the methodologies used to calculate them.

c)    Disclosure of tariff rates and volume of the transported commodities.

d)    Disclosure of revenues received by government entities and SOE(s), in relation to transportation of oil, gas and minerals.

e)    Where practicable, the multi-stakeholder group is encouraged to task the Independent Administrator with reconciling material payments and revenues associated with the transportation of oil, gas and minerals.

4.5 Transactions related to state-owned enterprises.

The multi-stakeholder group must ensure that the reporting process comprehensively addresses the role of state-owned enterprises (SOEs), including material payments to SOEs from oil, gas and mining companies, and transfers between SOEs and other government agencies.

4.6 Subnational payments.

It is required that the multi-stakeholder group establish whether direct payments, within the scope of the agreed benefit streams, from companies to subnational government entities are material. Where material, the multi-stakeholder group is required to ensure that company payments to subnational government entities and the receipt of these payments are disclosed and reconciled in the EITI Report.

4.7 Level of disaggregation.

The multi-stakeholder group is required to agree the level of disaggregation for the publication of data. It is required that EITI data is presented by individual company, government entity and revenue stream. Reporting at project level is required, provided that it is consistent with the United States Securities and Exchange Commission rules and the forthcoming European Union requirements.

4.8 Data timeliness.

a)    Implementing countries are required to produce their first EITI Report within 18 months of being admitted as an EITI candidate. Thereafter, implementing countries are expected to produce EITI Reports on an annual basis.

b)    Implementing countries must disclose data no older than the second to last complete accounting period, e.g. an EITI Report published in calendar/financial year 2016 must be based on data no later than calendar/financial year 2014. Multi- stakeholder groups are encouraged to explore opportunities to disclose data as soon as practically possible, for example through continuous online disclosures or,
where available, by publishing additional, more recent contextual EITI data than the accounting period covered by the EITI revenue data. In the event that EITI reporting
is significantly delayed, the multi-stakeholder group should take steps to ensure that EITI Reports are issued for the intervening reporting periods so that every year is subject to reporting.

c)    The multi-stakeholder group is required to agree the accounting period covered by the EITI Report.

4.9 Data quality and assurance.

a)    The EITI requires an assessment of whether the payments and revenues are subject to credible, independent audit, applying international auditing standards.

b)    It is a requirement that payments and revenues are reconciled by a credible, Independent Administrator, applying international auditing standards, and with publication of the administrator’s opinion regarding that reconciliation including discrepancies, should any be identified.

i.      The reconciliation of company payments and government revenues must be undertaken by an Independent Administrator applying international professional standards.

ii.     The Independent Administrator must be perceived by the multi-stakeholder group to be credible, trustworthy and technically competent. The multi- stakeholder group should endorse the appointment of the Independent Administrator.

iii.   The multi-stakeholder group and the Independent Administrator are required to agree a Terms of Reference for the EITI Report based on the standard Terms of Reference and the ‘agreed upon procedure for EITI Reports’3 endorsed by the EITI Board. Should the multi-stakeholder group wish to adapt or deviate from these agreed upon procedures, approval from the EITI Board must be sought in advance (Requirement 8.1).

c)    Where the assessment in 4.9(a) concludes that there is (i) routine disclosure of the data required by the EITI Standard in requisite detail, and (ii) that the financial data is subject to credible, independent audit, applying international standards, the multi-stakeholder group may seek Board approval to mainstream EITI implementation in accordance with the ‘Agreed upon procedure for mainstreamed disclosures’.4 Without such prior approval, adherence to 4.9.b is required.

EITI REQUIREMENT 5 - Revenue allocations.

Overview: The EITI requires disclosures of information related to revenue allocations, enabling stakeholders to understand how revenues are recorded in the national and where applicable, subnational budgets. The EITI Requirements related to revenue allocations include: (5.1) distribution of revenues; (5.2) subnational transfers; and (5.3) revenue management and expenditures.

 

5.1 Distribution of extractive industry revenues.

Implementing countries must disclose a description of the distribution of revenues from the extractive industries.

a)    Implementing countries should indicate which extractive industry revenues, whether cash or in kind, are recorded in the national budget. Where revenues are not recorded in the national budget, the allocation of these revenues must be explained, with links provided to relevant financial reports as applicable, e.g., sovereign wealth and development funds, subnational governments, state-owned enterprises, and other extra-budgetary entities.

b)    Multi-stakeholder groups are encouraged to reference national revenue classification systems, and international standards such as the IMF Government Finance Statistics Manual.

5.2 Subnational transfers.

a)    Where transfers between national and subnational government entities are related to revenues generated by the extractive industries and are mandated by a national constitution, statute or other revenue sharing mechanism, the multi- stakeholder group is required to ensure that material transfers are disclosed. Implementing countries should disclose the revenue sharing formula, if any, as well as any discrepancies between the transfer amount calculated in accordance with the relevant revenue sharing formula and the actual amount that was transferred between the central government and each relevant subnational entity. The multi-stakeholder group is encouraged to reconcile these transfers. Where there are constitutional or significant practical barriers to the participation of subnational government entities, the multi-stakeholder group may seek adapted implementation in accordance with Requirement 8.1.

b)    The multi-stakeholder group is encouraged to ensure that any material discretionary or ad hoc transfers are also disclosed and where possible reconciled.

5.3 Revenue management and expenditures.

The multi-stakeholder group is encouraged to disclose further information on revenue management and expenditures, including:

a)    A description of any extractive revenues earmarked for specific programmes or geographic regions. This should include a description of the methods for ensuring accountability and efficiency in their use.

b)    A description of the country’s budget and audit processes and links to the publicly available information on budgeting, expenditures and audit reports.

c)    Timely information from the government that will further public understanding and debate around issues of revenue sustainability and resource dependence. This may include the assumptions underpinning forthcoming years in the budget cycle and relating to projected production, commodity prices and revenue forecasts arising from the extractive industries and the proportion of future fiscal revenues expected to come from the extractive sector.

EITI REQUIREMENT 6 - Social and economic spending.

Overview: The EITI requires disclosures of information related to social expenditures and the impact of the extractive sector on the economy, helping stakeholders to assess whether the extractive sector is leading to the desirable social and economic impacts and outcomes. The EITI Requirements related to social and economic spending include: (6.1) social expenditures by companies; (6.2) SOE quasi-fiscal expenditures; and (6.3) an overview of the contribution of the extractive sector to the economy.

6.1 Social expenditures by extractive companies.

a)    Where material social expenditures by companies are mandated by law or the contract with the government that governs the extractive investment, implementing countries must disclose and, where possible, reconcile these transactions. Where such benefits are provided in kind, it is required that implementing countries disclose the nature and the deemed value of the in kind transaction. Where the beneficiary of the mandated social expenditure is a third party, i.e. not a government agency, it is required that the name and function of the beneficiary be disclosed. Where reconciliation is not feasible, countries should provide unilateral company and/or government disclosures of these transactions.

b)    Where the multi-stakeholder group agrees that discretionary social expenditures and transfers are material, the multi-stakeholder group is encouraged
to develop a reporting process with a view to achieving transparency commensurate with the disclosure of other payments and revenue streams to government entities. Where reconciliation of key transactions is not possible, e.g., where company payments are in kind or to a non-governmental third party, the multi-stakeholder group may wish to agree an approach for voluntary unilateral company and/or government disclosures.

6.2 Quasi-fiscal expenditures.

Where state participation in the extractive industries gives rise to material revenue payments, implementing countries must include disclosures from SOE(s) on their quasi-fiscal expenditures. Quasi-fiscal expenditures include arrangements whereby SOE(s) undertake public social expenditure such as payments for social services, public infrastructure, fuel subsidies and national debt servicing, etc. outside of the national budgetary process. The multi-stakeholder group is required to develop a reporting process with a view to achieving a level of transparency commensurate with other payments and revenue streams, and should include SOE subsidiaries and joint ventures.

6.3 The contribution of the extractive sector to the economy.

Implementing countries must disclose, when available, information about the contribution of the extractive industries to the economy for the fiscal year covered by the EITI Report. It is required that this information includes:

a)    The size of the extractive industries in absolute terms and as a percentage of Gross Domestic Product as well as an estimate of informal sector activity, including but not necessarily limited to artisanal and small scale mining.

b)    Total government revenues generated by the extractive industries (including taxes, royalties, bonuses, fees, and other payments) in absolute terms and as a percentage of total government revenues.

c)    Exports from the extractive industries in absolute terms and as a percentage of total exports.

d)    Employment in the extractive industries in absolute terms and as a percentage of the total employment.

e)    Key regions/areas where production is concentrated.

EITI REQUIREMENT 7 - Outcomes and impact.

Overview: Regular disclosure of extractive industry data is of little practical use without public awareness, understanding of what the figures mean, and public debate about how resource revenues can be used effectively. The EITI Requirements related to outcomes and impact seek to ensure that stakeholders are engaged in dialogue about natural resource revenue management. EITI Reports lead to the fulfilment of the EITI Principles by contributing to wider public debate. It is also vital that lessons learnt during implementation are acted upon, that discrepancies identified in EITI Reports are explained and, if necessary, addressed, and that EITI implementation is on a stable, sustainable footing.

7.1 Public debate.

The multi-stakeholder group must ensure that the EITI Report is comprehensible, actively promoted, publicly accessible and contributes to public debate. Key audiences should include government, parliamentarians, civil society, companies and the media. The multi-stakeholder group is required to:

a)    Produce paper copies of the EITI Report, and ensure that they are widely distributed. Where the report contains extensive data, e.g. voluminous files, the multi-stakeholder group is encouraged to make this available online.

b)    Agree a clear policy on the access, release and re-use of EITI data. Implementing countries are encouraged publish EITI under an open license, and to make users aware that information can be reused without prior consent.

c)    Make the EITI Report available in an open data format (xlsx or csv) online and publicise its availability.

d)    Ensure that the EITI Report is comprehensible, including by ensuring that it is written in a clear, accessible style and in appropriate languages.

e)    Ensure that outreach events, whether organised by government, civil society or companies, are undertaken to spread awareness of and facilitate dialogue about the EITI Report across the country.

7.2 Data accessibility.

The multi-stakeholder group is encouraged to make EITI Reports machine readable, and to code or tag EITI Reports and data files so that the information can be compared with other publicly available data by adopting Board-approved EITI data standards. As per Requirement 5.1(b), the multi-stakeholder group is encouraged to reference national revenue classification systems, and international standards such as the IMF Government Finance Statistics Manual. The multi-stakeholder group is encouraged to:

a)    Produce brief summary reports, with clear and balanced analysis of the information, ensuring that the authorship of different elements of the EITI Report is clearly stated.

b)    Summarise and compare the share of each revenue stream to the total amount of revenue that accrues to each respective level of government.

c)    Where legally and technically feasible, consider automated online disclosure of extractive revenues and payments by governments and companies on a continuous basis. This may include cases where extractive revenue data is already published regularly by government or where national taxation systems are trending towards online tax assessments and payments. Such continuous government reporting could be viewed as interim reporting, and as an integral feature of the national EITI process which is captured by the reconciled EITI Report issued annually.

d)    Undertake capacity-building efforts, especially with civil society and through civil society organisations, to increase awareness of the process, improve understanding of the information and data from the reports, and encourage use of the information by citizens, the media, and others.

7.3 Discrepancies and recommendations from EITI Reports.

With a view to strengthen the impact of EITI implementation on natural resource governance, as per Requirement 7.4, the multi-stakeholder group is required to take steps to act upon lessons learnt; to identify, investigate and address the causes of any discrepancies; and to consider the recommendations resulting from EITI reporting.

7.4 Review the outcomes and impact of EITI implementation.

The multi-stakeholder group is required to review the outcomes and impact of EITI
implementation on natural resource governance.

a)    The multi-stakeholder group is required to publish annual progress reports.

The annual progress reports must include:

i.    A summary of EITI activities undertaken in the previous year.

ii.    An assessment of progress with meeting and maintaining compliance with each EITI Requirement, and any steps taken to exceed the requirements. This should include any actions undertaken to address issues such as revenue management and expenditure (5.3), transportation payments (4.4), discretionary social expenditures (6.1), ad hoc subnational transfers (5.2), beneficial ownership (2.5) and contracts (2.4).

iii.   An overview of the multi-stakeholder group’s responses to and progress made in addressing the recommendations from reconciliation and Validation in accordance with Requirement 7.3. The multi-stakeholder group is required to list each recommendation and the corresponding activities that have been undertaken to address the recommendations and the level of progress in implementing each recommendation. Where the
government or the multi-stakeholder group has decided not to implement a recommendation, it is required that the multi-stakeholder group documents the rationale in the annual progress report.

iv.   An assessment of progress with achieving the objectives set out in its work plan (Requirement 1.5), including the impact and outcomes of the stated objectives.

v.    A narrative account of efforts to strengthen the impact of EITI implementation on natural resource governance, including any actions to extend the detail and scope of EITI reporting or to increase engagement with stakeholders.

b)    All stakeholders should be able to participate in the production of the annual progress report and reviewing the impact of EITI implementation. Civil society groups and industry involved in the EITI, particularly, but not only those serving on the multi-stakeholder group, should be able to provide feedback on the EITI process and have their views reflected in the annual progress report.

c)    The multi-stakeholder group is required to submit a Validation Report in accordance with the deadlines established by the EITI Board (section 8).

EITI REQUIREMENT 8 - Compliance and deadlines for implementing countries.

Overview: This section outlines the timeframes established by the EITI Board for publication of EITI Reports (8.2), annual progress reports (8.4) and Validation (8.3). It outlines the consequences of non-compliance with the deadlines and the requirements for EITI implementation. It also explains the possibility and criteria for countries to apply for adapted implementation (8.1) and extensions (8.5).

8.1 Adapted implementation.

Should the multi-stakeholder group conclude that it faces exceptional circumstances that necessitate deviation from the implementation requirements, it must seek prior EITI Board approval for adapted implementation. The request must be endorsed by the multi-stakeholder group and reflected in the work plan. The request should explain the rationale for the adapted implementation.

The EITI Board will only consider allowing adaptations in exceptional circumstances. In considering such requests, the EITI Board will place a priority on the need for comparable treatment between countries and ensuring that the EITI Principles are upheld, including ensuring that the EITI process is sufficiently inclusive, and that the EITI Report is comprehensive, reliable and will contribute to public debate.

8.2 EITI reporting deadlines.

The EITI requires timely publication of EITI Reports (Requirement 4.8). If the EITI Report is not published by the required deadline, the country will be suspended. The suspension will be lifted if the EITI Board is satisfied that the outstanding EITI Report is published within six months of the deadline. If the outstanding reports are not published within six months of the deadline, the suspension will remain in force until the EITI Board is satisfied that the country has published an EITI Report that covers data no older than the second to last complete accounting period (Requirement 4.8). If the suspension is in effect for more than one year the EITI Board will delist the country.

8.3 EITI Validation deadlines and consequences.

a)    Assessment of progress with EITI implementation

i.    Assessment of each EITI Requirement. The Validation process will assess the country’s progress in complying with each of the EITI Requirements. Detailed guidance on the types of evidence that are required in order to make an assessment on individual requirements is set out in the Validation Guide available at www.eiti.org. The level of progress and compliance with each individual EITI Requirement shall be indicated by applying one of the following designations:

Satisfactory progress. In order for the EITI Board to conclude that a country has made satisfactory progress, Validation needs to demonstrate that all aspects of the requirement have been implemented and that the broader objective of the requirement has been fulfilled.

Meaningful progress. In order for the EITI Board to conclude that a country has made meaningful progress, Validation needs to demonstrate that significant aspects of the requirement have being implemented and that the broader objective of the requirement is being fulfilled.

Inadequate progress. In order for the EITI Board to conclude that a country has made inadequate progress, Validation needs to demonstrate that significant aspects of the requirement have not been implemented and that the broader objective of the requirement is far from fulfilled.

No progress. In order for the EITI Board to conclude that a country has made no progress, Validation needs to demonstrate that all or nearly all aspects of the requirement remain outstanding, and that the broader objective of the requirement is not fulfilled.

ii.    Overall assessments. Pursuant to the Validation Process, the EITI Board will make an assessment of overall compliance with all requirements in the EITI Standard.
In determining a country’s overall assessment, the EITI Board will apply the same minimum threshold tests for the overall assessment as used for the assessment of the individual requirements outlined in provision 8.3(i) above. The Board will also take into account provision 8.3(c)(i) below, as well as the following factors:

  • the advice and recommendations of Validators and the Validation Committee;
  • the nature of the outstanding requirements and how close the requirements are to being met;
  • the magnitude and complexity of the extractive sector of the country;
  • other barriers to meeting requirements such as but not limited to state fragility and recent or ongoing political change, and the extent to which the multi-stakeholder group has undertaken actions to resolve barriers encountered;
  • the good faith efforts undertaken by the multi-stakeholder group to comply with the requirements;
  • the reasons and justifications for not complying with the requirements; and
  • any plans agreed by the multi-stakeholder group to address the requirements in the future.

iii.   Efforts beyond the requirements. In addition to the assessment of the requirements, Validation will document:

  • Efforts to go beyond the EITI Requirements. This will include efforts by multi- stakeholder group to address ‘encouraged’ or ‘recommended’ aspects of the EITI Standard. It will also include efforts by the multi-stakeholder group to successful achieve any work plan objectives that fall outside the scope of the EITI Standard, but that have been identified by the multi-stakeholder group to be necessary objectives for the EITI to address national priorities for the extractive sector. These efforts will be documented in the Validation process but will not be taken into account in assessing compliance with the EITI Standard. Where Validation concludes that the multi-stakeholder group has comprehensively implemented ‘encouraged’ or ‘recommended’ aspects of the EITI Standard, and/or MSG work plan objectives, the EITI Board will recognise these efforts in the assessment card.
  • The direction of progress towards meeting each EITI Requirement as compared to the country’s previous Validation(s), indicating whether implementation is improving or deteriorating.

In accordance with the Validation guide, the results of the assessment will be documented in an assessment card and a narrative report, presenting the evidence, stakeholder views, references and conclusions.

b)   Consequences of compliance

Where Validation verifies that a country has made satisfactory progress on all of the requirements, the EITI Board will designate that country as EITI compliant.

EITI compliant countries must maintain adherence to the EITI Principles and Requirements in order to retain Compliant status. Where a country has become EITI compliant, but concerns are raised about whether its implementation of the EITI has subsequently fallen below the required standard, the EITI Board reserves the right to require the country to undergo a new Validation. Stakeholders may petition the EITI Board if they consider that Compliant status should be reviewed. This request may be mediated through a stakeholder’s constituency representative(s) on the EITI Board. The EITI Board will review the situation and exercise its discretion as to whether to require an earlier Validation. Subject to the findings of that assessment, the EITI Board will determine the country’s status.

Where a compliant country is being re-validated and Validation concludes that the country has not met all EITI Requirements, the consequences set out in (c) below apply.

c)    Consequences of non-compliance

i.    A country must achieve satisfactory progress on the following four requirements in order to avoid suspension: government engagement (1.1), company engagement (1.2), civil society engagement (1.3) and timely EITI reporting (4.8). Where a country achieves less than meaningful progress on data quality (4.9) and data comprehensiveness (4.1), the MSG will be required to disclose a time-bound action plans for addressing weaknesses in data reliability and comprehensiveness. Progress with implementation of this plan will be taken into account in subsequent Validations.

With regards to the other EITI Requirements, the consequences of non- compliance depend on the Board’s assessment of overall progress:

ii.    No progress. The country will be delisted.

iii.   Inadequate progress. The country will be suspended and requested to undertake corrective actions until the second Validation. For the suspension to be lifted, the country must in its second Validation demonstrate at least meaningful progress. 

If a country achieves meaningful progress in the second Validation, the procedure in provision (iv)(2) below applies. If the country achieves inadequate progress, in the second Validation the procedure in provision (ii) above applies.

iv.   Meaningful progress. The country will be considered an EITI candidate and requested to undertake corrective actions until the second Validation.

(1) If the country achieves meaningful progress overall in the second Validation, but with no improvements on individual requirements, the country will be suspended and requested to undertake corrective actions until the third Validation. If the country achieves meaningful progress overall in the third Validation but with no improvements on individual requirements, the country will be delisted. If the country achieves meaningful progress overall in the
third Validation, but with considerable improvements across several individual requirements (i.e. several but not all requirements that were previously unmet have been met), the country will remain suspended.
The Board will establish new corrective actions. Failure to meet all requirements in the fourth Validation will result in delisting.

(2) If the country achieves meaningful progress overall in the second Validation, and with considerable improvements across several individual requirements (i.e. several but not all requirements that were previously unmet have been met), the country will be considered an EITI candidate whilst undertaking corrective actions. If the country achieves meaningful progress overall in the third Validation, the country will be suspended. 

The Board will establish new corrective actions. Failure to meet all requirements in the fourth Validation will result in suspension or delisting.

(3) If the country achieves inadequate progress in the second or subsequent Validations, the procedure in point (ii) above applies.

d)   Timeframes for achieving compliance.

i.    EITI candidate countries are required to commence the first Validation within two and a half years of becoming an EITI candidate. EITI compliant countries are required to be re-validated every three years. In accordance with provision 8.5, a country may request an extension of this timeframe.
A country may also request to commence Validation earlier than scheduled by the EITI Board.

ii.    Where Validation verifies that a country has not achieved compliance, the EITI Board will establish the corrective actions that the country is required
to undertake and a timeframe of 3-18 months for the next Validation where progress with the corrective actions will be assessed. In establishing the timeframe for completing the corrective actions, the EITI Board will consider the nature of the corrective actions and local circumstances. The Board retains the right to establish shorter or longer timeframes. In accordance with provision 8.5, a country may request an extension of this timeframe. A country may also request to commence Validation earlier than scheduled by the EITI Board.

iii.   In accordance with provision (8.3.c) and (8.3.d)(i-ii) above, a country may hold EITI candidate status for a maximum of 7 years from the date that the country was designated as an EITI candidate.7

8.4 Annual progress report deadlines.

Multi-stakeholder groups are required to publish annual progress reports (Requirement 7.4). The report of the previous year’s activities must be published by 1 July of the following year. The EITI Board will establish appropriate deadlines for new EITI candidate countries. If the annual progress report is not published within six months of this deadline, i.e. by 31 December of the following year, the country will be suspended until the EITI Board is satisfied that the outstanding progress report has been published.

8.5 Extensions.

An implementing country may apply for an extension if it is unable to meet any of the deadlines specified in provisions 8.2-8.4 above. The EITI Board will apply the following tests in assessing any extension requests:

a)    The request must be made in advance of the deadline and be endorsed by the multi-stakeholder group.

b)    The multi-stakeholder group must demonstrate that it has been making continuous progress towards meeting the deadline and has been delayed due to exceptional circumstances. In assessing continuous progress the EITI Board will consider:

i.    The EITI process, in particular the functioning of the multi-stakeholder group and clear, strong commitment from government.

ii.    The status and quality of EITI reporting, including meaningful progress in meeting the requirements for timely reporting as per Requirement 4.8 and efforts to address recommendations for improving EITI reporting.

c)    The exceptional circumstance(s) must be explained in the request from the multi-stakeholder group.

d)    No extensions will be granted which would increase the maximum candidature period.

8.6 Suspension.

a) Suspension due to breaches of the EITI Principles and Requirements

Where it is manifestly clear that a significant aspect of the EITI Principles and Requirements are not adhered to by an implementing country, the EITI Board will suspend or delist that country. In accordance with provisions 8.2-8.4, this includes cases where a country has not met the requirements for timely EITI reporting, publication of annual progress reports and/or achieving compliance with the EITI Requirements by the deadlines established by the EITI Board. Where the EITI Board is concerned that adherence to the EITI Principles and Requirements is compromised, it may task the International Secretariat with gathering information about the situation and submitting a report to the EITI Board.

Suspension of an implementing country is a temporary mechanism and is subject to the maximum candidature period. In accordance with provisions 8.2-8.4 above, the EITI Board shall set a time limit for the implementing country to address breaches of the EITI Standard. During the period of suspension, the country will have the status “suspended”. If the matter is resolved to the satisfaction of the EITI Board by the deadline, the country’s candidate or compliant status will be re-instated. If the matter has not been resolved to the satisfaction of the EITI Board by the deadline, the EITI Board will delist the country.

b) Suspension due to political instability or conflict.

The EITI Board may decide to suspend countries in cases where political instability or conflict manifestly prevents the country from adhering to a significant aspect of the EITI Principles and requirements. Countries that are experiencing exceptional political instability or conflict may also voluntarily apply to be suspended. In this situation, the government should lodge an application for voluntary suspension with the EITI Board. The government’s application should note the views of the multi-stakeholder group.

Where countries are suspended due to political instability or conflict, the period that the country is suspended will not be counted as part of the maximum candidature period. The EITI Board will monitor and review the situation on a regular basis and retains the right to extend the suspension period or delist the country.

c) Lifting the suspension.

The government may apply to have the suspension lifted at any time. The application should document the steps agreed by stakeholders to re-start the EITI implementation and Validation process, and the work plan to achieve compliance. If the EITI Board is satisfied that the reasons for suspension have been addressed, the suspension will be lifted. Upon lifting a suspension, the EITI Board will consider setting new reporting and Validation deadlines as appropriate. At all stages in the process, the EITI Board shall ensure its concerns and decisions are clearly communicated to the implementing country.

8.7 Delisting.

Delisting, i.e. revoking a country’s status as an EITI implementing country, will occur if:

1)    In accordance with provision 8.6, an implementing country has been subject to suspension, and the matter has not been resolved to the satisfaction of the EITI Board by the agreed deadline.

2)    In accordance with provision 8.3, the EITI Board concludes that a country has not made satisfactory progress in implementing the EITI within the established timeframes.

Where it is manifestly clear that a significant aspect of the EITI Principles and Requirements are not adhered to by an implementing country, the EITI Board reserves the right to delist the country. A delisted country may reapply for admission as an EITI candidate at any time. The EITI Board will apply the agreed procedures with respect to assessing EITI candidate applications. It will also assess previous experience in EITI implementation, including previous barriers to effective implementation, and the implementation of corrective measures.

8.8 Appeals.

The implementing country concerned may petition the EITI Board to review its decision regarding suspension, delisting or the country designation as EITI candidate or EITI compliant following Validation. In responding to such petitions, the EITI Board will consider the facts of the case, the need to preserve the integrity of the EITI and the principle of consistent treatment between countries. The EITI Board’s decision is final. The country concerned may, prior to the notice periods under Article 8 of the Articles of Association, appeal a decision of the EITI Board to the next ordinary Members’ Meeting.

The following figure illustrates the consequences of compliance and non-compliance as per requirement 8.3(b) and 8.3(c).

EITI Validation flow chart