Extractive Industries Transparency Initiative (EITI)

1. Extractive Industries Transparency Initiative (EITI) EITI Board Meeting Lima, Peru – June 27 & 28, 2012 An Overview Briefing on WB/EITI MDTF -- Strategy and Work Plan Priorities Javier Aguilar / Diana Corbin / Kristina Svensson EITI Multi-donor Trust Fund (MDTF) World Bank - Oil, Gas and Mining Policy Unit (SEGOM)

2. Recap - a MOU between EITI Board and EITI MDTF donors guides MDTF work programs in support of EITI

3. EITI MDTF’s core mandate continues - four pillars • Technical assistance (TA) and funding to MSWGs – EITI implementation • MDTF work plan covers 60+ MSWGs / countries • increasing focus on post-compliant support • TA work done in liaison with EITI Secretariat Oslo and donors; CSOs; IFIs • New countries - aligned with Outreach and Candidacy committee strategy • Active support to applicant countries - close coordination with Int. Secretariat • New CSOs capacity building strategy (in addition to TA via MSWGs)  close liaison and collaboration with international and national CSOs • Active EITI MDTF support for global/regional EITI knowledge management  Active coordination on training; publications; peer to peer learning; monitoring & evaluation

4. Evolving MDTF support in EITI- implementing countries As of March 31, 2012 • US$58.8 million pledged by 15 donors, US$53.5 million received • Work program for FY13-14 calls for a total budget of US$50.9 million: • US$27.3 million actual disbursements - US$14.2m active or closed recipient-level grants; - US$8.2m in technical assistance by the World Bank; and - US$5.0m for knowledge, learning, CSO support, fiduciary • US$23.6 million planned disbursements - US$11.2m in grants being processed or planned; - US$7.5m in technical assistance by the World Bank; and - US$4.8m for knowledge, learning, CSO support, fiduciary • In addition, from inception through March 2012, the World Bank Group has disbursed US$6.6m through its own budget processes and US$1.1m through the Development Grant Facility (DGF)

5. Status of country-level support • 15 grants Completed and Closed, total value US$4.7 million • 22 currently Signed/Active Phase I and/or Phase II grant for a total value of US$9.4 million • 13 new grants being Processed—10 grant agreements for candidate countries 3 post-compliance grants for a total value of US$5.4 million • 12 grants have been Approved by the Management Committee and Not Yet Processed for a total value of US$3.8 million • 6 countries are in dialogue for a total value of US$2.0 million.

6. Country Portfolio Summary - WB EITI MDTF technical assistance As of June 06, 2012 1/ = by decision of EITI Board, as reflected on International EITI web site. Candidate countries required to complete validation process (for EITI-compliant status) within timeline specified by the EITI Rules. 2/ = Sao Tome e Principe and Equatorial Guinea, previously EITI candidate countries, were delisted from EITI effective April 16, 2010 – but now have resumed the EITI work needed to apply for new candidacy. 3/ = The EITI status of these is that of “EITI-compliant – Suspended” and “ EITI candidate – Suspended”” respectively, for the country-specific reasons and for duration as indicated by the EITI Board decisions.

7. Summary EITI MDTF Work Plan for FY12–FY14 WB/MDTF faces two wide-ranging challenges going forward: • Sustain current WB/MDTF support for EITI implementation, through: • - Continued support to implementing countries to achieve compliance status; • - Expanded CSO capacity building efforts; • - Enhanced training beyond stand alone activities; • - Development of the EITI Handbook into an interactive tool for knowledge sharing and advisory/guidance to all EITI practitioners; and • - Closer follow-up on MDTF results framework and improvements to capturing country results. • Adjust WB/MDTF support to implement the “new” EITI. • WB/MDTF technical assistance and funding would very likely need to be adjusted. Main implications: scope, time line, cost of MDTF assistance

8. EITI implementation demands - FY12 Candidate Countries • Applications / Preparatory work for new applicants • Scoping studies for materiality / quality assurance • Tax confidentiality studies, study tours, specially in LAC • Pre-validation assessments – awareness for MSG • Regular reporting Compliant Countries • Regular reporting • Follow up on recommendations • Links and existing innovations