Philippine Open Government Partnership

DOF/PH-EITI Commitment

Number 5 on the 5th OGP Plan Commitments​

Institutionalize transparency and accountability ​in the extractive industries

​Program / Initiative

Mainstreaming implementation of the Extractive Industries Transparency Initiative (EITI)

What is the public problem that the commitment will address?

EITI implementation in the Philippines has contributed to efforts to avert the “resource curse” from afflicting the country. The “resource curse” refers to the paradoxical situation where countries, despite having abundant natural resources, manifest increased poverty and less economic growth and development.

More specifically, PH-EITI has sought to address the following issues in natural resource management, among others:

  • Need for more transparency and accountability in the extractive industries;
  • Lack of understanding on how the extractive industries work;
  • Lack of or conflicting data on the taxes and other amounts paid or contributed by extractive companies and collected by the government (both national and local) as well as on the benefits received by communities from extractive activities; and
  • Conflict/tension between and among stakeholders

Through EITI, the global standard for the open and accountable governance of oil, gas, and mineral resources, significant gains have been achieved in the areas of public availability of extractives data and information, stakeholder engagement, and policy reform in the extractives. Six years since its inception, EITI implementation in the Philippines continues to expand coverage of data disclosure, broaden stakeholder engagement, and encourage data utilization for the creation of policy recommendations and development plans ultimately aimed at pursuing sustainable development, not only at the national level but more so at the level of communities.

​EITI implementation has, however, entailed spending considerable resources particularly in the production of annual comprehensive reports, which require, among other costs, the services of an independent administrator, and the printing of copies of the voluminous report. In addition, challenges in funding and procurement have undermined report production and its potential benefits and impact. These have called for measures and mechanisms to ensure the sustainability of extractives transparency. Without sustainability, both the gains and potential of EITI would be stunted, reversed, or otherwise wasted. This problem, although not unique, presents an opportunity to generate sustainability approaches and models that better secure the attainment of long-term objectives.

What is the commitment?

​The DOF commits to institutionalize transparency and accountability in the extractive industries by mainstreaming implementation of EITI in the Philippines.

Mainstreaming EITI entails the creation and issuance of policies, and development of web-based systems that will effect systematic disclosure (to replace traditional publication) of data and information about the extractive industries in the country (mining and oil and gas). Extractives data include requirements under the 2019 EITI Standard such as contract transparency, company payments to government, beneficial ownership, and data on environment and gender, among others.
In addition, mainstreaming seeks to enhance the role and sustain the operations and activities (data analyses, research, creation of policy recommendations, outreach, and communications) of the Multi-stakeholder Group.

On Systematic disclosure and mainstreaming

It must be noted that the EITI has a robust yet flexible methodology for disclosing company payments and government revenues from oil, gas and mining as well as other information about the extractive sector such as information about the legal framework and fiscal regime, licensing practices, state-owned companies, production, exports, etc. Each implementing country creates its own EITI process adapted to the specific needs of the country. This involves defining the scope of information to be published and exploring how disclosure of information about the extractive sector can be integrated into government and company portals to complement and strengthen wider efforts to improve extractive sector governance.
To date, most of the information required by the EITI Standard to be disclosed has been collected and made public through EITI Reports. At the EITI Board meeting in February 2018, the EITI Board agreed on a set of recommendations regarding encouraging systematic disclosure. The EITI Standard enables implementing countries to disclose the information required by the EITI Standard through routine government and corporate reporting systems such as websites, annual reports, etc. The EITI Board agreed that “systematic disclosure should be firmly established as the default expectation, with EITI Reports used to address any gaps and concerns about data quality. Implementing countries could still continue to publish annual EITI reports collating and analyzing information from primary sources in order to make this information more accessible and comprehensible, especially for stakeholders that do not have access to online information”.

​Systematic disclosure means that EITI’s disclosure requirements are met through routine and publicly available company and government reporting. This could include enabling access to EITI data through public financial reporting, annual company or government agency reports, information portals, and other open data and freedom of information initiatives. A key concern will be ensuring that the published data is comprehensive and reliable. This should include an explanation of the underlying audit and assurance procedures that the data has been subject to, with public access to the supporting documentation. Mainstreaming refers to the process for realizing this goal, which may include interim measures, pilots, and other capacity building activities.

How will the commitment contribute to solve the public problem?

The commitment will reduce the cost of EITI reporting while strengthening the role of the MSG in the public discourse on and development of policies pertaining to extractives. With reduced cost, systematic disclosure, and strengthened multi-stakeholder participation, transparency and accountability in the extractives will be more sustainable.

Why is this commitment relevant to OGP values?

This commitment promotes all of the OGP values, NAMELY, transparency, accountability, participation, and technology and innovation.

Transparency – It sustains and enhances the disclosure of extractives information.
Accountability – It empowers and encourages stakeholders to monitor and assess fulfillment of obligations, and provides for a feedback mechanism where stakeholders may participate in resource governance.
Participation – It enables deeper stakeholder participation in extractives and natural resource governance by providing platforms and venues for engagement.
Technology and Innovation – It employs or utilizes electronic and user-friendly online tools and platforms and other technological innovations in the disclosure and dissemination of data as well as in engaging stakeholders.

Additional information

The commitment can contribute to reaching the United Nation’s Sustainable Development Goals, especially Goal 12 (Ensure sustainable consumption and production patterns), particularly the targets to:

  • achieve the sustainable management and efficient use of natural resources
  • encourage companies, especially large and transnational companies, to adopt sustainable practices and to integrate sustainability information into their reporting cycle
  • ensure that people everywhere have the relevant information and awareness for sustainable development and lifestyles in harmony with nature

by 2030.

Milestone Activity
with a verifiable deliverable
Midterm Deliverable
by August 31, 2020
End-of-term Deliverable
by August 31, 2021
Start Date – End Date

1


Systematic disclosure of extractives information through an integrated (centralized) network of independent databases and web portals
– Further enhancements on the PH-EITI website to make it more user-friendly, and to include a feedback mechanism where stakeholders can raise issues and concerns on extractives;



– Publication or systematic reporting of responses or specific actions taken on recommendations, issues, and concerns raised by stakeholders;


– Info sharing with Open Data Portal.
?- Development of an integrated network of independent databases and web portals;


– Issuance of policies or enactment of legislation/s that will institutionalize EITI;


– Publication or systematic reporting of responses or specific actions taken on recommendations, issues, and concerns raised by stakeholders.
August 2019  – August 2021

2


Public register of beneficial owners of extractive companies
– Enhancement of the Contracts Portal to integrate Beneficial Ownership informationValueAugust 2019 – January 2020

3


Standardized gender audit tool for extractive companies
– Launch of the Gender Scoping Study on the Extractives, and standardization of survey form as an audit tool to assess gender-inclusivity among extractive companies.August 2019 – January 2020

Accountable Senior Official

Atty. Bayani Agabin
Undersecretary, DOF
bagabin@dof.gov.ph
​(02) 523 9222

Designated Technical Focal Person

Ms. Ma. Teresa Habitan
Asst. Secretary, DOF
mhabitan@dof.gov.ph
​(02) 523 5678

Non-government Commitment Holder

Bantay Kita – Publish What You Pay Philippines (BK – PWYP)
secretariat@bantaykita.ph
(02) 921-8016

contact us

Mailing Address

5th Floor, DOF Building, BSP Complex,

Roxas Boulevard, Manila 1004 Philippines

 

Email Address

pheiti@dof.gov.ph

 

Phone Number

+632 8525 0497