On 8 March 2017, the EITI Board came to the following decision on the Kyrgyz’s Republic’s status:
The Board agrees that the Kyrgyz Republic has made inadequate progress overall in implementing the 2016 EITI Standard. In taking this decision the EITI Board noted the revival of the commitment by the Government of the Kyrgyz Republic and the important contributions by civil society and industry to the process. The Board highlighted that although there is a need for improvement in terms of disclosure of information related to the extractive sector, the EITI reporting process has underscored opportunities for reform. The Board was encouraged by the efforts of the government, industry and the civil society in the last couple of months and the Supervisory Board to act on the recommendations from EITI institutional setup study to strengthen EITI implementation. The Board was also encouraged by the efforts of the Supervisory Board to ensure disclosure of beneficial ownership and mandatory EITI reporting, amount of information disclosed under the EITI Standard available on government portals on monthly basis as well as increase of reporting companies and level of disaggregation.
The Board’s determination of Kyrgyz Republic’s progress with the EITI’s requirements is outlined in the assessment card, below. The EITI Board agreed that the Kyrgyz Republic had not made satisfactory progress on requirements 1.1, 1.4, 2.2, 2.3, 2.4, 2.6, 3.2, 3.3, 4.3, 4.4, 4.5, 4.6, 4.9, 5.2, 6.1.a, 6.2, 6.3, 7.1, 7.3 and 7.4. The major areas of concern relate to state participation (#2.6), export data (#3.3), barter agreements (#4.3), transportation revenues (#4.4), SOE transactions (#4.5), direct subnational payments (#4.6), data quality (#4.9), subnational transfers (#5.2), mandatory social expenditures (#6.1.a) SOE quasi-fiscal expenditures (#6.2) and follow up on recommendations (#7.3). The EITI Board disagreed with the validator on the following requirements: industry engagement (#1.2), work plan (#1.5), policy on contract disclosure (#2.4), production data (#3.2), comprehensiveness (#4.1), disaggregation (#4.7).
In accordance with requirement 8.3.c.iii, the EITI Board agreed that the Kyrgyz Republic will be suspended and will need to take corrective actions outlined below. Progress with the corrective actions will be assessed in a second Validation commencing on 8 September 2018. Failure to achieve meaningful progress with considerable improvements across several individual requirements in the second Validation will result in delisting in accordance with the EITI Standard. In accordance with the EITI Standard, the Kyrgyz Republic’s Supervisory Board may request an extension of this timeframe, or request that Validation commences earlier than scheduled.
The Board’s decision followed a Validation that commenced on 1 July 2016. In accordance with the 2016 EITI Standard, an initial assessment was undertaken by the International Secretariat. The findings were reviewed an Independent Validator, who submitted a Validation Report to the EITI Board. Kyrgyz Republic’s Supervisory Board were invited to comment throughout the process. The Supervisory Board’s comments on the report were taken into consideration. The final decision was taken by the EITI Board.