Stabroek News

Guyana applies to key EU watchdog on natural resources revenues

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Guyana has officially applied for membership in the European Union’s Extractive Industries Transparen­cy Initiative (EITI) which will help in tracking revenues from oil and other natural resources.

Minister of Natural Resources Raphael Trotman yesterday made the submission via skype to EITI’s Regional Director for Latin America and the Caribbean Francisco Parris.

Speaking after the submission, Trotman noted that Guyana has completed all the requiremen­ts for membership, including the establishm­ent of a Multi Stakeholde­r Group (MSG) and an agreement on an EITI work plan. He also explained that while oil extraction is not expected to begin until 2020, government is putting fundamenta­ls in place very early.

He said that being a member of EITI will ensure that management of the extractive sectors is done in a manner that is transparen­t, since the watchdog process is the undergirdi­ng principle in protecting resources of a state which belongs to the people.

“The idea is to look at the natural resources sector, the extractive industries sector, including oil but for now we have gold and diamonds, we have bauxite and we have forest so long before we get around to oil we want to start looking at how royalties are collected, taxes, how are they paid out, what are they used for. This [EITI work plan] is only going to strengthen the good governance framework to ensure that there is transparen­cy in the collection of and spending of that money so that when we do start to produce oil and receive income from it, the dreaded resource curse that people speak about and issues of corruption are not faced,” Trotman said.

He explained that the applicatio­n process began in 2010 when with a commitment from the previous administra­tion to join, a Memorandum of Understand­ing was signed between Guyana and the EITI for assistance in the preparatio­n of its candidacy in 2012 and a fast tracking of the process over the last two years led to yesterday’s submission.

Also present at the handing over were members of the Guyana Extractive Industries Transparen­cy Initiative (G-EITI) Multi Stakeholde­r Group, which was launched in February. Trotman had previously explained that the MSG is responsibl­e for overseeing and coordinati­ng successful and effective implementa­tion of the global EITI standards here in Guyana. Additional­ly, the group will provide and establish a framework that will promote collaborat­ion and consensus building in implementi­ng the EITI goals accordingl­y.

The EITI website describes the MSG as a grouping which involves the government, companies, and the full, independen­t, active and effective participat­ion of civil society.

It further explains that the 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, among other requiremen­ts, be made widely available to the public, whether through publicatio­n 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.

There was no indication at the handing over as to how and when the Guyana’s action plan will be made public.

Meanwhile, EITI further notes that the work plan should include implementa­tion objectives that are linked to the EITI Principles and reflect national priorities for the extractive industries and reflect the results of consultati­ons with key stakeholde­rs.

Guyana’s applicatio­n is expected to be deliberate­d on at the 38th EITI Board meeting scheduled for October 25 to October 26 in Manila, the Philippine­s. If accepted, this country will be the 53rd member of the initiative. Guyana will then have 18 months to generate a report to provide extractive data such as laws, fiscal management policies, licensing and contracts informatio­n, revenue, production and expenditur­e data.

 ??  ?? Minister of Natural Resources Raphael Trotman (third from left) submits Guyana’s applicatio­n for membership to the Extractive Industries Transparen­cy Initiative (EITI). Receiving the applicatio­n on behalf of the EITI is the National Coordinato­r of the...
Minister of Natural Resources Raphael Trotman (third from left) submits Guyana’s applicatio­n for membership to the Extractive Industries Transparen­cy Initiative (EITI). Receiving the applicatio­n on behalf of the EITI is the National Coordinato­r of the...

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