Ingilab Ahmadov - PWYP Montreal Conference 2009


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Civil Society Successes and Challenges: Stories from the Ground

Ingilab Ahmadov, Public Finance Monitoring Centre, Azerbaijan

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Ingilab Ahmadov - PWYP Montreal Conference 2009

  1. 1. Azerbaijani EITI : thorny path towards transparency Dr. Ingilab Ahmadov Public Finance Monitoring Center (Baku) Montreal, 16 th November 2009
  2. 2. Background <ul><li>Azerbaijan is the first EITI pilot country ( 2003 ) </li></ul><ul><li>Azerbaijan is the most reporting country ( 11reports ) </li></ul><ul><li>Azerbaijan is the first compliant status country ( 2009 ) </li></ul>Dr.Ingilab Ahmadov
  3. 3. But Azerbaijan EITI reporting is pretty modest… Dr.Ingilab Ahmadov
  4. 4. Dr.Ingilab Ahmadov But Azerbaijan EITI reporting is pretty modest…
  5. 5. What is next? <ul><li>Short term target: </li></ul><ul><li>Company to Company reporting </li></ul>Dr.Ingilab Ahmadov
  6. 6. What is next? <ul><li>Long term target: </li></ul><ul><li>Expanding to : </li></ul><ul><li>transportation </li></ul><ul><li>refinery processing </li></ul><ul><li>license acquisition and contract </li></ul><ul><li>state expenditures </li></ul>Dr.Ingilab Ahmadov
  7. 7. Advantages <ul><li>Covering totally oil & gas companies and successfully shifting to gold sector payment </li></ul><ul><li>No denial on information to audit company from any extractive companies so far </li></ul><ul><li>Most regular payment for audit company fee by government and companies </li></ul><ul><li>Absence of any unexplained discrepancy between government and companies’ reports </li></ul>Dr.Ingilab Ahmadov
  8. 8. Disadvantages <ul><li>Reporting successfully develops in breadth, rather than in deepness </li></ul><ul><li>It’s impossible to promulgate name of the company, even, who made mistakes in reporting templates filling (due to MoU term) </li></ul><ul><li>Absence of gladly willingness of Companies on CSO cooperation within EITI </li></ul><ul><li>Government can not impact on Companies in moving to individual reporting </li></ul>Dr.Ingilab Ahmadov
  9. 9. What does report afford? <ul><li>Publicly availability of full info related to oil & gas companies’ payment to Government within PSA contracts, a bit fewer SOCAR payment within local fields </li></ul><ul><li>Availability of independent comparative analysis, EITI reporting outcomes with other statistics, even with Government expenditures </li></ul><ul><li>Observing more carefully “Azeri-Cirag-Guneshli” PSA contract’s cash flow and Government sharing of benefit </li></ul>Dr.Ingilab Ahmadov
  10. 10. What doesn’t report afford ? <ul><li>Making sure on reliability and the reporting info verification. CSO has to satisfy just with audit company clarification </li></ul><ul><li>Calculation of each Company’s contribution </li></ul><ul><li>Access to Government expenditures info </li></ul>Dr.Ingilab Ahmadov
  11. 11. Questions … <ul><li>What is preferable; Liberian discrepancy or Azerbaijani complete correspondence? </li></ul><ul><li>What is preferable; Government sympathy or real movement on transparency, but with official’s irritability? </li></ul><ul><li>What is preferable; country substantial transparency achievement, or geographical expansion? </li></ul><ul><li>What is benchmark? </li></ul>Dr.Ingilab Ahmadov
  12. 12. Lessons <ul><li>EITI is a process, rather than achieving a result </li></ul><ul><li>EITI is a consensus among parties, rather than dominancy of the stakeholder </li></ul><ul><li>EITI mission is very specific and we shouldn’t expect any full country transparency and good governance, thanks just to EITI development </li></ul><ul><li>EITI current agenda is very narrow and we have to think of expanding of this </li></ul>Dr.Ingilab Ahmadov
  13. 13. So, <ul><li>Azerbaijani EITI looks like… a half filled glass of water </li></ul><ul><li>Government : “We have half filled glass of water” </li></ul><ul><li>CSO : “ We have half empty glass of water” </li></ul>Dr.Ingilab Ahmadov
  14. 14. Thank you!