PH-EITI Media Training Overview of Extractive Industries in Cebu
An Overview of
Atty. MARIA KARLA ESPINOSA
EITI is an international initiative that promotes a
global standard of transparency in the extractives
by requiring extractive industries (mining, oil & gas,
coal) to publish what they pay to the government,
and the government to publish what they collect
from these industries, towards the open and
accountable management and governance of
1 Prudent use of natural resource wealth should be an important engine for sustainable economic growth that
contributes to sustainable development and poverty reduction, but if not managed properly, can create negative
economic and social impacts.
2 Management of natural resource wealth for the benefit of a country’s citizens is in the domain of sovereign
governments to be exercised in the interests of their national development.
3 Benefits of resource extraction occur as revenue streams over many years and can be highly price dependent.
4 Public understanding of government revenues and expenditure over time could help public debate and inform
choice of appropriate and realistic options for sustainable development.
5 Importance of transparency by governments and companies in the extractive industries and the need to enhance
public financial management and accountability.
6 Achievement of greater transparency must be set in the context of respect for contracts and laws.
7 Financial transparency may bring enhanced environment for domestic and foreign direct investment.
8 Accountability by government to all citizens for the stewardship of revenue streams and public expenditure
9 High standards of transparency and accountability in public life, government operations and in business
10 A broadly consistent and workable approach to the disclosure of payments and revenues is required.
11 Payments disclosure in a given country should involve all extractive industry companies operating in that country.
12 In seeking solutions, all stakeholders have important and relevant contributions to make.
in the Philippines
The Philippine government committed to support and participate in
EITI through Executive Order No. 79, s. 2012.
PH-EITI was created by Executive Order No. 147, s. 2013.
The Philippines was admitted as an EITI candidate country on 22 May
Institutionalizing EITI is part of Philippine Development Plan 2017-
EITI implementation is one of our country’s commitments under the
Open Government Partnership (OGP).
DENR issued Administrative Order (DAO) No. 2017-07 mandating
all mining contractors to participate in PH-EITI.
The Five P’s of PH-EITI
Multi-Stakeholder Group (MSG)
Government: DOF (Chair), DENR, DOE, DILG, ULAP
Industry: Chamber of Mines, Petroleum Association
Civil society: Bantay Kita – PWYP Phils
Secretariat lodged in the DOF
Stakeholders in the extractives and natural resource governance
1. Show direct and indirect contribution of extractives to the economy
2. Increase public understanding of the management of natural
resources and public accessibility of data
3. Strengthen national resource management / strengthen
4. Create opportunities for dialogue and constructive engagement in
natural resource management in order to build trust and reduce
conflict among stakeholders
5. Pursue and strengthen the contribution of the extractive
industries to sustainable development
WHY ARE WE IMPLEMENTING THE EITI?
CHALLENGES IN EXTRACTIVE SECTOR
Annual Report with recommendations
Dissemination of Report to inform public debate and
follow-up of recommendations
Pillars of the EITI Process
1. Oversight by the multi-stakeholder group
2. Legal and institutional framework, including allocation of
contracts and licenses
3. Exploration and production
4. Revenue collection
5. Revenue allocations
6. Social and economic spending
7. Outcomes and impact
8. Compliance and deadlines for implementing
ANNUAL COUNTRY REPORT = data + recommendations
ANNUAL PROGRESS REPORT
STAKEHOLDER ENGAGEMENT/OUTREACH ACTIVITIES
Annual NATIONAL CONFERENCE
Annual NATIONWIDE ROADSHOW
Various FORA and WORSHOPS
1. Has produced and published 3 Country Reports, 4 studies, etc.
2. Has held 47 MSG meetings, 5 national conferences, 3 nationwide
roadshows, numerous forums/workshops
3. Has generated recommendations that have translated to reform:
direct release of LGU share in national wealth; ENR Data
Management Tool; NCIP Royalty Monitoring Tool; Contracts
4. Conferred the EITI International Chair’s Award for “impactful
implementation” during the 7th Global Conference in Lima in
5. EITI Compliance. First country to be declared to have made
“satisfactory progress” against the 2016 EITI Standard.