Philippines first to meet global standards in extractive sector

MANILA, Philippines — An international multi-stakeholder group has cited the Philippines as the first country to meet all the requirements in the governance standards for the extractive sector – the oil, gas and mining industries.

Following a series of validations, the board of the Extractive Industries Transparency Initiative (EITI) reported that the Philippines made satisfactory progress in implementing the EITI standard, which requires countries and companies to disclose information on the key steps in the governance of oil, gas and mining revenues.

“The country was found to be a dynamic case of EITI implementation, with its fast-paced and innovative multi-stakeholder group engaging in strategic discussions linking the EITI to national priorities for the extractive sector,” the EITI board said.

It said the country’s pioneering efforts in using EITI data helped drive government reforms and generate vibrant public debate.

The Chamber of Mines of the Philippines (COMP) lauded the EITI decision, saying the industry has worked hard over the past years.

“This validation of our efforts at transparency reporting could not have come at a better time. The mining industry is under strict scrutiny by government, and this recognition that the mining industry is fully transparent in its payment and reporting of revenues to government will be of great help,” COMP executive director Ronald Recidoro said.

“The cooperation shown by all groups in the multi-stakeholder group, the leadership of the Department of Finance and the dedication of the National Secretariat have all contributed to this successful outcome,” COMP chairman Gerard Brimo added.

The EITI board identified several areas where the Philippines went beyond the minimum required by the standard, including work plan, legal framework, policy on contract disclosure, revenue management and expenditures, social expenditures, public debate, follow-up on recommendations, and outcomes and impact of implementation.

EITI is an international multi-stakeholder group that sets international standards for transparency in extractive industry payments and receipts, where companies are required to publish what they pay to governments and governments are required to publish what they receive from companies.

On the local front, the Phl-EITI Multi-Stakeholder Group provides a platform for business and civil society stakeholders to engage government in the implementation of EITI in the Philippines.

Among the requirements included the disclosure of information related to the rules for how the extractive sector is managed and the institutional responsibilities of the state in managing the sector.

It also covered information related to exploration and production; comprehensive reconciliation of company payments and government revenues from the extractive industries which will include taxes, infrastructure provisions and barter arrangements, among others.

It required the information related to revenue allocations and social expenditures and the impact of the extractive sector on the economy.

The Philippines will again be revalidated by the EITI in 2020.