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5/7/2017 Myanmar | Extractive Industries Transparency Initiative
https://eiti.org/myanmar 1/11
EITI Status Yet to be assessed against the 2016 Standard
EITI Member Since 2014
Latest Data From 2014
Website EITI Myanmar (http://myanmareiti.org/)
Myanmar's natural resources include oil and gas, minerals and gems. The extractive sector accounted for 6% of GDP, 23.6% of State revenue
and 38.5% of exports in 2013. It has proven oil reserves of 50 m barrels and proven gas reserves of 10 trillion cubic feet. The extractive sector is
the second largest source of foreign direct investment and represent close to 40% of exports, with gas and gems being the two main revenue
generating commodities.
The Myanmar government's 12-point Economic Policy accentuates the strategic role of EITI in the reform process, speciড়cally in natural
resource governance.  The EITI creates a platform for vibrant discussions on issues around resource sharing which is widely debated and
central to the ongoing peace process. The EITI is also stimulating public debate and shedding light on lost revenues from the jade and gems
sector. O৴cial revenues from gem stones sales in 2014 were estimated at US$3.4 bn, according to the ড়rst Myanmar EITI Report published in
2016. However, real ড়gures from other sources have been cited to range between US$9-US$30 bn. According to a World Bank study
commissioned by Myanmar EITI in 2016,  it is estimated that 70-80% of gemstones produced in Myanmar are not declared and therefore
bypass the formal system.  The ড়rst EITI Report disclosed that Future Myanmar EITI Reports will include royalties from jade and gems disclosed
by both government and companies. 
On this page
Myanmar
Overview
5/7/2017 Myanmar | Extractive Industries Transparency Initiative
https://eiti.org/myanmar 2/11
  Overview
  News, blogs and more
  Tax and legal framework
  Beneড়cial ownership disclosure
  Production
  Innovations
  Implementation
  Validation
  EITI Reports and other key document
s
  Contacts
News, blogs and more
5/7/2017 Myanmar | Extractive Industries Transparency Initiative
https://eiti.org/myanmar 3/11
5/7/2017 Myanmar | Extractive Industries Transparency Initiative
https://eiti.org/myanmar 4/11
Blog
Opportunities for reforms at a time of transition
From reports to reform
State-participation: Myanmar
(http://progrep.eiti.org/2016/contracts­licenses/state­participation­myanmar)
News
5/7/2017 Myanmar | Extractive Industries Transparency Initiative
https://eiti.org/myanmar 5/11
Myanmar has a Petroleum Law, a Mines Law and a Gemstone Law, but Production Sharing Contracts (PSC) typically govern all extractive
projects. Contracts are conড়dential, but model oil and gas PSCs are disclosed by the Ministry of Energy. PSC holders and their legal owners are
disclosed in their EITI Report. The main revenue streams in both the hydrocarbon and mining sector are production spilt, state-owned
company entitlement, royalties and commercial tax/corporate income tax. State-owned companies collect 85% of the revenues from the
extractive sector on behalf of the government. Tax revenues are collected by the Ministry of Finance. No revenues are collected by subnational
governments.
 
Ministry of Mines: Laws and regulations (http://www.mining.gov.mm/LAWS/Default.asp)
Ministry of Energy: Laws and regulations (http://www.energy.gov.mm/index.php/issues/laws)
Institutional and regulatory assessment of the Extractive Industries in Myanmar (http://www­wds.worldbank.org/external/default/WDSContentServe
r/WDSP/IB/2015/05/14/090224b082e8301a/1_0/Rendered/PDF/Executive0summary.pdf)
Gilded gatekeepers: Myanmar’s state-owned oil, gas and mining enterprises (http://www.resourcegovernance.org/publications/gilded­gatekeepers­my
anmars­state­owned­oil­gas­and­mining­enterprises)
The shell starts to crack: Real owners of Myanmar’s oil and gas blocks come forward (https://www.globalwitness.org/en/reports/shell­starts­crack/)
Myanmar lifts the veil on state-owned companies
Tax and legal framework
Myanmar's tax code
Overview of tax laws and regulations (http://www.mo
f.gov.mm/en/content/laws­and­regulations)
Contracts in Myanmar
Model Production Sharing Contract (PSC) (https://ww
w.facebook.com/MinistryOfEnergy.Myanmar/photos/ms.c.eJw
1zMENADEIA8GOToAJxv03dkpCnqOVTWglq8qq3OLjdQtSAmPyOHLcEURwv
d7ae6)
License registry
Registry of oil and gas contracts, mining permits and gems permits compiled as part of the 2013 EITI Report (excel ড়le)
(https://eiti.org/sites/default/files/meiti_report_appendix_10_11_0.xlsx)
5/7/2017 Myanmar | Extractive Industries Transparency Initiative
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Myanmar started work on beneড়cial ownership by mapping the corporate structure of the companies operating in the country. The 2013 EITI R
eport  (https://eiti.org/report/myanmar/2013)includes the legal ownership of oil, gas and mining companies. More than 95 % of the extractive
companies are Chinese, Myanmar or Thai. The report recommends to establish a public register of beneড়cial ownership. Global Witness has
already documented the beneড়cial owners of many of the oil and gas companies  (https://www.globalwitness.org/en/campaigns/oil­gas­and­mining/mya
nmar­oil­and­gas/)operating in the country.
The MSG is currently discussing the publication of Myanmar's beneড়cial ownership roadmap to disclose real owners of extractive companies in
the country. 
 
Myanmar Beneড়cial Ownership Roadmap (https://eiti.org/document/myanmar­beneficial­ownership­roadmap)
Natural resources and subnational governments in Myanmar: Key considerations for wealth sharing (http://www.asiafoundation.org/publications/
pdf/1367)
EITI Myanmar week - Day 4 (https://eiti.org/blog/eiti­myanmar­week­day­four)
Could natural resource revenue sharing help secure peace in Myanmar (http://www.resourcegovernance.org/news/blog/could­natural­resource­reven
ue­sharing­help­secure­peace­myanmar)
Although extractive industries contributed substantially to the rapid growth of the economy in recent years, we ha
ve been facing many challenges in relation to social and environmental issues. In this regard, strong institutions, cl
ear environmental regulations and governance, law enforcement and social safeguards are undoubtedly required,
along with social, economic and environment factors to achieve sustainable development. Therefore, Myanmar ha
s been trying to be an Extractive Industries Transparency Initiative-compliant country to ensure transparency and
accountability in natural resources exploitation and ড়nancial management.
Minister U Ohn Win, Ministry of Natural Resources and Environmental Conservation
(https://www.oxfordbusinessgroup.com/interview/down­earth­u­ohn­winn­minister­natural­resources­and­environmental­conservation­environmental)
Beneড়cial ownership disclosure
Production
5/7/2017 Myanmar | Extractive Industries Transparency Initiative
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Natural resources
Myanmar has rich deposits of natural gas, petroleum, coal, copper, gemstones, precious and semi-precious stones, tin, tungsten, and zinc.
Around 90% of the world’s supply of rubies are sourced from Myanmar and the country is also the world’s largest single source of Jade. Oil and
gas is found both o৴shore and onshore. Mining occurs throughout the country with most of the jade deposits located in Kachin state.
Commodity Reserves Unit Signi૴cance
Oil 50 million barrels
Gas 10 trillion Sm3 Second largest natural gas producer within South-East Asia
2013 EITI Report (https://eiti.org/files/meiti_reconciliation_report_2013­2014_final_version.pdf)
USGS 2012 Minerals Yearbook: Burma (http://minerals.usgs.gov/minerals/pubs/country/2012/myb3­2012­bm.pdf)
The EITI encourages multi-stakeholder groups to explore innovative approaches to make the EITI more relevant and useful.
EITI subnational units have been established in Mandalay, Magway, Rakhine and Shan.
The EITI Report discloses the cost of oil and gas sales to domestic reড়neries at subsidised prices.
Governance
Innovations
Implementation
5/7/2017 Myanmar | Extractive Industries Transparency Initiative
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On 19 December 2016, the Union Government formally appointed the Myanmar EITI Leading Committee composed of the Minister of Planning
and Finance (MOPF) as Chair, the Minister of Natural Resources and Conservation and the Minister of Energy and Electricity as members, and
the Deputy Minister of MOPF as Secretary.  The Renaissance Institute was appointed as the National Coordination O৴ce. Civil society is
represented by nine members of the Myanmar Alliance for Transparency and Accountability (MATA), while industry is represented by members
of the Myanmar Federation of Mining Associations (MFMA) and oil and gas companies. Government has seven representatives.
The workplan is currently being drafted by the MSG and is expected to be approved by April 2017.  On 7 March 2017, the EITI International
Board approved MEITI's request for extension of deadlines, setting 31 March 2018 as the deadline for the publication of the second EITI Report,
and 1 July 2018 as the commncement date for their Validation.  
Timeline
 (https://eiti.org/sites/default/files/inline/image­timeline­myanmar
_0.png)
 
Myanmar's Validation (http://eiti.org/validation) against the Standard (https://eiti.org/standard) will commence (https://eiti.org/document/validation­schedul
e) on 1 July 2018. The country was admitted as EITI candidate in 2014. (https://eiti.org/countries­archive)
Validation
5/7/2017 Myanmar | Extractive Industries Transparency Initiative
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EITI Reports and other key documents
Myanmar EITI Annual Progress Report 2015-2016
Published Date: November, 2016
Publisher: Myanmar EITI
Read more
2013-2014 Myanmar EITI Report
Published Date: November, 2015
Publisher: Myanmar EITI
This EITI Report covers Myanmar's extractive sector in 2013 and 2014. It was published in December 2015. 
Read more
Myanmar EITI 2014-2015 Annual Progress Report
Published Date: December, 2015
Publisher: Myanmar EITI
This is the Myanmar EITI 2014-2015 Annual Progress Report (in accordance with Requirements 7.4 and 8.4).
Read more
Myanmar EITI scoping study
Published Date: November, 2015
Publisher: Myanmar EITI
5/7/2017 Myanmar | Extractive Industries Transparency Initiative
https://eiti.org/myanmar 10/11
View all documents related to Myanmar in our publications library (https://eiti.org/publications?search_api_views_fulltext=&field_doc_type_public=All&
field_doc_country%5B%5D=MM&field_doc_publisher=&field_doc_published_date%5Bmonth%5D=&field_doc_published_date%5Byear%5D=&field_doc_published_da
te_1%5Bmonth%5D=&field_doc_published_date_1%5Byear%5D=)
International Secretariat
Executive summaryMyanmar EITI has carried out a scoping study in order to set out the EITI reconciliation scope which will be
used for the ড়rst Myanmar EITI report. This assignment is the ড়rst step and pre-condition to the reconciliation process.
Objective of the missionThe objective of the report is to clearly deড়ne the scope of the EITI reconciliation exercise, the
Reporting Templates, the data collection process and the working schedule, in accordance with the EITI Requirements (Version
2013) and objectives agreed by the EITI Committee.
Read more
Contacts
Dyveke Rogan
(http://twitter.com/@DyvekeRogan) dyveke.rogan
Policy and Regional Director drogan@eiti.org
EITI responsibilities: Support to EITI implementation and outreach in Asia.  
Prior to joining the EITI in 2009, Dyveke worked for Xstrata Nickel in the Dominican Republic and at the Center for Development Studies at the
University of Agder.
Read more
Marie Gay Alessandra Ordenes
(http://twitter.com/@GigayOrdenes) alessandra.v.ordenes
Regional Director gordenes@eiti.org
5/7/2017 Myanmar | Extractive Industries Transparency Initiative
https://eiti.org/myanmar 11/11
EITI responsibilities: South East Asia and Asia Paciড়c
Gay was the National Coordinator of  Philippine EITI before joining the International Secretariat. A lawyer by profession,
Read more
The global standard for the good governance of oil, gas and mineral resources.
EITI International Secretariat
Ruseløkkveien 26, 0251
Oslo, Norway
+47 222 00 800
secretariat@eiti.org
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5/7/2017 Opportunities for reforms at a time of transition | Extractive Industries Transparency Initiative
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Apr 11, 2016 Gay Ordenes
The expectations on the new government in Myanmar are high - the EITI provides a list of to-dos to improve transparency.
All eyes are on Myanmar as it enters yet another period of transition. The country has seen many reforms in the past years, one
of which is the implementation of the EITI since 2014. For a country that previously o៛�ered limited civic participation, EITI’s multi
stakeholder platform fast became the venue for discussing reforms in the extractive sector.
First EITI Report points to areas for improvements in the sector
A landmark EITI Report was published in January 2016 disclosing valuable information on payments made by companies and
surfacing gaps in existing systems that the government should address. This report could very well be used as a diagnostic tool
for government in assessing areas where governance can be improved. How the EITI in Myanmar can leverage on the
recommendations from its EITI Report is a challenge that the multi-stakeholder group (MSG) and the incoming government
should take on. 
Opportunities for reforms at a time of transition
5/7/2017 Opportunities for reforms at a time of transition | Extractive Industries Transparency Initiative
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Transparency in public nancial systems
Myanmar’s EITI (MEITI) Report revealed the extensive use of ‘other accounts’ in Myanmar’s budget system. The report explains
that “Other Accounts used are essentially accounts held by ministries and SEEs (State Economic Enterprise) in the Myanmar
Economic Bank (MEB) for management of their own-source revenues. FY2012/13 data from the Budget Department show total
Other Account receipts of 2.54 trillion kyat (USD 2.4 billion) which is 44% of total budgeted revenue, and expenditures of 2.26
trillion kyat, which represents 28% of total budgeted expenditure. How these accounts are managed was not disclosed to the EITI
which made it impossible for the Independent Administrator preparing the report to examine rules and practices governing
transfers of funds between the SOE(s) and the state, retained earnings, reinvestment and third-party ៯�nancing. The report thus
recommended the disclosure of more information on these “other accounts”.
Moreover, there’s the issue of tracking sources of revenues. The MEITI Report mentions that the Union Budget does not have a
line item for extractive sector revenues, making it di៝�cult to track revenue ៯�ows from the industry to the ministries and to
determine its total contribution to national revenues. Based on the above ៯�nding, the report recommends improvements on the
system of reporting and recording of disaggregated revenues from the extractive industry.
The report further ៯�nds that the considerable delay from the time companies pay to the time the Internal Revenue Department
issues receipts leads to discrepancies between government and company ៯�gures. It thus highlights the need for timely issuance
of receipts for corporate income tax payments.
The report also stresses the need to ensure reliability of ៯�nancial information from the government through the disclosure of
reports from the O៝�ce of the Auditor General. All of these ៯�ndings are relevant to the incoming administration’s plan to create a
transparent public ៯�nancial management system. The above recommendations could contribute to this reform by informing
policy makers on the need and the means to revise tax administration and budget processes. 
Informing public debate
The EITI process can be a catalyst for deeper discussions on contract transparency and bene៯�cial ownership. As evidenced by the
disclosures in the ៯�rst report, the MEITI MSG is using the EITI as a platform for sustained dialogue to discuss openly issues 
previously shrouded in secrecy. The reporting process subjects data to further scrutiny that could hopefully lead to meaningful
debates.
5/7/2017 Opportunities for reforms at a time of transition | Extractive Industries Transparency Initiative
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One example is how the EITI provides the opportunity to compare government data with other sources.  For example, the sales
data for gems and jade disclosed in the EITI Report (USD 1.4 billion) does not tally with other sources of data (USD 30.9 billion
according to a Global Witness Report). The report recommends that data on gems and jade in future reports be not limited to
sales made through the emporium but also include revenues from the government’s share of production collected by Myanmar
Gem Enterprise as well as sales outside of the emporium.
Another important piece of information disclosed in the report is about the state-owned enterprises, the extent of their
participation in mining, oil and gas sectors and the transfers they make to the Ministry of Finance (MOF). This information should
pave the way for the MEITI MSG to stimulate debate on issues surrounding SOEs including their incentives, how they manage
their revenues and whether the revenues they collect from companies can be reconciled with the transfers they make to MOF.
Although bene៯�cial owners of all privately held companies were not yet disclosed, the information on legal ownership is a good
step forward enabling mapping of the corporate structure in the county. These disclosures are accompanied by a strong
recommendation to raise awareness of the importance of bene៯�cial ownership and to develop a reporting format enabling
bene៯�cial ownership disclosure in the future.
Improving license processes and registers
The MEITI Report examines Myanmar’s cadaster system and recommends that an online register be established that will
includeinformation on coordinates of concessions and transfers of mineral rights, fees paid, and cadastre maps with details of
licenses. According to the report,while the mining legislation lays down the criteria for the assessment of a permit application, the
tendering process is not systematically followed in practice due to lack of geologic information and the presence of con៯�ict in
most areas. This can be problematic for a country that seeks to create a favorable investment climate and has opened up its
mining sector (except for precious stone mines) to full foreign ownership.  
Myanmar’s new mining law is expected to attract more foreign investors. Among the salient provisions of this law are the
relaxation of taxes imposed on investors and the lifting of prohibitions on small scale and medium enterprises to enter into joint
ventures with foreign ៯�rms.  The law also lays down the terms of operation of foreign mining companies. The MEITI report’s
៯�ndings could input into the ongoing drafting of rules and regulations of the new mining law. The MEITI MSG can participate in
and even facilitate consultations especially on issues where the report has identi៯�ed gaps in the licensing system and its potential
impact on foreign investments.  
Recent developments
5/7/2017 Opportunities for reforms at a time of transition | Extractive Industries Transparency Initiative
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There are considerable expectations that the new administration will bring about a clear energy policy, and more broadly, a
national strategy for the exploration of natural resources. In the same vein, the merger of the Ministry of Mines with the Ministry
of Forestry to create the Ministry of Natural Resources could potentially result in a less fragmented regulatory process which
could work well for the extractive sector. As for EITI in Myanmar, the challenge is how to align its e៛�orts with the priorities of the
new administration and build on its progress in the current political context.
Marie Gay Alessandra Ordenes is the Regional Director for South East Asia and Asia Paci c at the EITI International Secretariat. Before
joining the Secretariat she was the EITI National Coordinator of Philippines EITI.
To nd out more about the EITI in Myanmar, visit the country page on eiti.org or Myanmar’s EITI website (http://myanmareiti.org/). 
The global standard for the good governance of oil, gas and mineral resources.
EITI International Secretariat
Ruseløkkveien 26, 0251
Oslo, Norway
+47 222 00 800
secretariat@eiti.org
HOME
MAP
ABOUT
NEWS
PUBLICATIONS
DATA
GLOBAL CONFERENCE
CONTACT US
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PRIVACY POLICY
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Unless otherwise noted, you may republish our content for free. Please give credit to our source (for web, with direct link, for print with EITI International Secretariat,
eiti.org).
5/7/2017 State­participation: Myanmar | EITI Progress Report
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State-participation: Myanmar
Myanmar’s 2013-14 EITI Report documented that state-owned companies
retain considerable amounts of revenue from the extractive sector.
EITI
Published 18.02.2016, 19:56
State-owned enterprises (SOEs) in Myanmar play a signi២�cant role in collecting revenues from
the extractive sector. In the ២�nancial year April 2013 to March 2014, SOEs collected 85% of all
extractive industry revenue through “other accounts”. According to the report, these “other
accounts” are essentially accounts held by state-owned companies for the management of
their own resources. SOEs use this revenue to pay corporate income tax (25% of pro២�t) and
the state contribution (20% of pro២�t) to government budget accounts, after which the SOE is
entitled to spend the remaining 55% of net revenue on raw materials and operating costs.
For example, in 2013-14, state-owned Myanma Oil and Gas Enterprise (MOGE) retained USD
1.3 billion of the total USD 2.9 billion that the company collected on behalf of the state. The
four state-owned mining companies collectively retained about USD 230 million. The report
noted that “functioning modalities and use of these accounts were not provided. As a result
we cannot provide explanation on rules and practices governing transfers of funds between
the SOE(s) and the State, retained earnings, reinvestment and third-party ២�nancing as
requested by Requirement 3.6 of the EITI Standard”.
The 2013-14 EITI Report recommended that, in order to improve the transparency and
comprehensiveness of the budgeting process, the Ministry of Finance should consider
whether revenues collected by SOEs from the extractive sector could be rede២�ned as
5/7/2017 State­participation: Myanmar | EITI Progress Report
http://progrep.eiti.org/2016/contracts­licenses/state­participation­myanmar 2/2
normal budgetary revenue and whether more information need to be disclosed with
regards to “other accounts” in the budget.
The report was released in January 2016. The government and Myanmar´s multi-stakeholder
group has not yet had the opportunity to consider how to act on this recommendation.
5/7/2017 Myanmar lifts the veil on state­owned companies | Extractive Industries Transparency Initiative
https://eiti.org/news/myanmar­lifts­veil­on­stateowned­companies 1/5
Jan 21, 2016 Dyveke Rogan EITI Report
State-owned companies retain 49% of revenues according to ២�rst MEITI report
 
This EITI Report is not just a tool for transparency; it is a driving force for strengthening
democratic process and building trust among stakeholders. Apart from that, the EITI Report
enlightens us on how Myanmar can better improve natural resource governance and public
ᡸnance management systems.
H.E. Dr. Maung Maung Thein. Union Deputy Minister, Ministry of Finance and Revenue
Myanmar lifts the veil on state-owned companies
5/7/2017 Myanmar lifts the veil on state­owned companies | Extractive Industries Transparency Initiative
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 Myanmar published its ២�rst EITI Report on 2 January, opening up the extractive sector for the ២�rst time. The report shows that
the government received a total of USD 3.1bn from the extractive sector. After having paid its taxes and other dues, Myanma Oil
and Gas Enterprise (MOGE), the state-owned company, retained USD 1.3bn of this revenue for own operating costs and raw
materials. The four state-owned mining companies collectively retained appx. USD 230m, illustrating the signi២�cant role that
state-owned companies play in the country’s extractive sector.   The report covers ២�nancial year April 2013 to March 2014.
“All over the world, national resource companies have been criticised for their opacity - and it is in such circumstances that resources are
often mismanaged. Myanmar’s સrst EITI Report contributes to changing this reputation, and sheds important light on the role of such
companies in managing the extractive sector. It is heartening to see how the government, companies and civil society have worked
together determinedly for more openness and to create a better future for their country”, said EITI Chair Clare Short about the
publication of the report.
Figure – Allocation of revenues to SOE accounts and government accounts
5/7/2017 Myanmar lifts the veil on state­owned companies | Extractive Industries Transparency Initiative
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Source: MEITI Report for the period April 2013- March 2014, p.45. 
According to the report, information on the functioning and use of these accounts held by state-owned companies was not
provided to the ២�rm hired to produce the report.  Thus, the report recommends that in order to improve the transparency and
comprehensiveness of the budgeting process, the Ministry of Finance should consider whether revenues from extractive sector
collected by state-owned companies could be rede២�ned as normal budgetary revenue and whether more information need to be
disclosed with regards to “other accounts” in the budget.  
The report also documents the cost of oil and gas subsidies. MOGE sells some limited amounts of oil and gas domestically below
market price. While amounts are small compared to what has been the practice in the region, it is estimated that the cost of the
subsides amounted to USD 58m. 
5/7/2017 Myanmar lifts the veil on state­owned companies | Extractive Industries Transparency Initiative
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Conᢐicting data reaᢐrms need for reform
While the oil and gas sector is Myanmar’s most developed extractive industry, the country is famous worldwide for its jade and
gems. The report reconciles payments and revenues from the top 30 jade and gems companies.  Although the USD 400m in
revenues from these companies is much lower than ២�gures reported elsewhere[1], the report explains some of the reasons for
this, including the decision by MEITI to only use Myanmar Gems Emporium data for the purpose of this report, leaving out any
taxes and payments made by companies that do not export their production through the emporium. In addition, revenues
collected by the State from the sale of their share of gems and jade production have not been captured by the report.  The report
also explains that the tendering process that is required for companies wishing to mine jade and gems is currently not applied. 
Rather, permits are awarded on a ២�rst come ២�rst serve basis without applying speci២�c criteria. This is because most of the
deposits are located in con២�ict zones and there is a lack of available geological data.
Knowing who is extracting the oil, gas and minerals
In 2013/14, Myanmar was in the spotlight as it launched its ២�rst ever competitive bidding processes for oil and gas rights,
resulting in the award of 26 onshore and o៌�shore blocks to 24 companies.  Although some information on the two oil and gas
bidding rounds has been disclosed, the report stops short of disclosing the bid criteria and whether the established procedure
for allocating these blocks was followed.  Despite this, the report compiles for the ២�rst time a register of all oil and gas, mining
and gems and jade license holders enabling stakeholders to see who is operating where, for how long and for what purpose. The
legal owners of the extractive companies have also been reported, which is an important step towards disclosing the name of the
people who own and control the companies operating in Myanmar, and ultimately pro២�t from their activities.
Read the full Myanmar 2013/14 EITI Report (PDF) >
For more information about extractives transparency in Myanmar, visit Myanmar’s EITI website.
[1] The Myanmar Business Update (June 2015) states that according to the Chinese Customs, China imported USD 12.3bn of Jade
and Gems in 2014;  A report by Global Witness (2015) estimated the production of jade in 2014 to be worth USD 30.9bn. 
According to the MEITI report, the value of the gems and jade sold through the Myanmar Gems Emporium in 2014 amounted to
USD 1.4bn.
The global standard for the good governance of oil, gas and mineral resources.
5/7/2017 Myanmar lifts the veil on state­owned companies | Extractive Industries Transparency Initiative
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1	
	
Myanmar EITI Annual Activity Report 
July 2015 ‐– June 2016 
 
   
2	
	
 
Message of the Chairman of the MEITI-MSG
First of all, I would like to express my sincere appreciation to the MSG members for their
active participation throughout the process to delivering the functions of EITI
implementation in Myanmar in order to improve fiscal transparency and accountability, and
the revenue management system.
As an EITI candidate country, Myanmar has published its first Myanmar EITI report which
revealed findings related to the extractive sectors, especially revenue from the mining, oil
and gas sector. Even though the first report could not cover the whole sector’s revenue, it
was the first and significant achievement in such atmosphere where aforementioned
information had been never shared to the public. In fact, it was the step to move forward to
having transparency and accountability in the extractive sectors.
Implementation of EITI is a continuous process. As the standards require, we remain
committed to perform the tasks as planned in our country’s EITI work plan. This report
highlights the efforts of our MSG and coordination team in achieving important priorities
under the work plan. Currently, we have started drafting the 2nd
MEITI report with the
selection of Independent Administrators to reconcile the Government’s revenue and the
extractive industries’ payment. No matter what challenges and difficulties prevailing, we
sincerely believe that Myanmar EITI-MSG will be able to submit the report to international
EITI within the stipulated time.
U Maung Maung Win
Interim-Chairman
3	
	
1. General Assessment of Annual Performance
After Myanmar’s application was approved and accepted as an EITI candidate country, it has
prepared and submitted the First Country EITI report on the reconciliation of the Government’s
revenue and the extractive industries’ payments. The table below illustrates the process which
MEITI undertook to deliver the first Myanmar EITI report.
Implementation Process
Steps Implemented Status
Select Independent Administrator and
decide the scope of the report
The technical sub-committee, with the support of
International EITI, selected Moore Steven Team
as the independent administrator.
Develop reporting template and collect
data
Developed and explained the template to relevant
stakeholders through a workshop
Finalize draft report and receive
feedback and recommendations from
MSG and each constituency group
Data collection process was completed on time
with the support of various government
departments’ representatives and selected private
companies. The drafted report was finalized after
incorporating feedback from all stakeholders and
MSG in December 2015.
Finalize and submit First Myanmar EITI
report to International EITI
First Myanmar EITI report was submitted to
International EITI in January 2016.
Launch of the Inaugural MEITI Report and Preparation for Broader Dissemination
The implementation of EITI and fulfilling the EITI requirements is a continuous proess. The
MEITI team launched the report with other stakeholder representatives in Yangon during mid-
March 2016. The MSG representatives participated actively in the launch of the report, as well as
panel sessions wehre they responded to questions from the audience, leading to greater clarity and
understanding of the report. However, the implementation process faces uncertainty and
challenges given the political transition, and that slowed down the implementation process
stipulated by the work plan. Other challenges include the shortage of budget, and the team is stil
awaiting the approval of the grant contract. The MSG sub-committee members are trying to
maintain and define various possible ways to disseminate the report to the public through the
media. At the same time, the coordination team is engaging with two regions where subnational
coordination units are actively involved, to advocate and share information with new
administrators and relevant key personnel to enhance the understanding of implementing EITI.
Subnational units will also be assuming responsibilities such as disseminating information and
recommendations from the report and initiating public discourse on the report.
Preparation for 2nd
MEITI Report
It is the candidate country’s obligation to meet the EITI standards and Myanmar has to submit its
2nd
EITI report by January 2017. The preparation for the 2nd
report is one of the key activities
under this year’s work plan. While waiting to sign the agreement for grant during the political
4	
	
transition in April 2016, the MEITI coordination team moved forward through facilitating and
coordinating with MSG representatives, especially subcommittee members, World Bank, and
International EITI Secretariat office in preparing and developing the Terms of Reference (TOR)
for IA and budget forecasting for procurement. It is still an ongoing process while MEITI is
awaiting the Government’s commitment to fill the structural gaps of Leading authority- champion
and MSG and sign the agreement as early in third quarter of 2016.
MEITI National Secretariat
The MEITI Coordination Team of CESD is currently the Secretariat, coordinating the
implementation and information sharing amongst the MSG and constituency groups. Currently, it
is handing over the function to the EITI unit under the Budget Department of Ministry of Finance
(MOF). Both teams worked together in managing activities under the work plan during the period
covered by this report. While the MOF team managed the MDTF fund of $290,000/-, it also
worked on procurement and logistic for various events under the work plan in collaboration with
MEITI Coordination team of CESD. Due to the difficulties in recruiting staff for the Secretariat
team and the time needed to build required competency for key staff members of the MOF
secretariat team, the handing over process has been longer than expected. Thus, it was extended
to June 2016. Under such a situation, the combined team could manage and deliver the actions
planned under the work plan up to December 2015 timely and tried to share human resource for
managing those activities and preparation of first EITI report to be finished by timely by the end
of December 2016. on the teams also organized regular team meetings among the MOF EITI Unit
team, MEITI Coordination Team of CESD and World Bank up till February 2016. However, after
facing uncertainties due to the political change and its impact on various Ministries’ functions,
the meetings could not be conducted as usual. Therefore, both teams tried to maintain the
momentum by organizing low cost subcommittee meetings. The Coordination Team also
organized workshops on beneficial ownership, EITI implementation, and contract negotiation and
transparency, with the respective support of partners – NRGI, Mongolia EITI, and GIZ. The
Coordination team of CESD and the MOF secretariat discussed and prepared for the handover of
administrative documents by the end of June 2016. As the coordination team of CESD depleted
their own funds for managing day-to-day EITI coordination function, the CESD Team has
committed to contribute their time on a voluntary basis as the MOF secretariat team still needs
support for coordination and delivering the actions under the work plan
Regular MSG Meetings
There were a total of four MSG meetings during the reporting period. Through these MSG
meetings, participants discussed on scoping study recommendation to be used for making
decision for not only scope for first EITI report but also for the process implementation of
preparation for first EITI report in working with Independent Administrator to deliver the actions
and develop the report in timely. Even though the final product may not be as comprehensive as it
is ideally expected, the commitment and support from the MSG and the Chairperson has enabled
both members of the private and public sector to contribute the best possible information and data
on revenue administration in the data template stipulated by the MSG. During the meetings,
decisions were also made such that the budget and funds were use and managed effectively,
particularly in the field of capacity building for various constituency groups. CSO representatives
also actively participated and gave their feedback and inputs throughout the process of
preparation for the first Myanmar EITI report. With the commitment and overwhelming support
stemming from each constituency group, Myanmar achieved its milestone of implementing EITI
by submitting its first EITI report timely. The MSG also discussed and delivered the subsequent
steps of releasing the EITI report to the wider public, and tried conducting outreach and
communication activities to initate public dialogue under the work plan of 2016 when they faced
challenges stemming from the handover process and the committee change due to the outcomes
of the 2015 election..
5	
	
Regular MSG Sub-Committee Meetings
From July 2015 to June 2016, there were more than 25 sub-committee meetings. The sub-
committees are namely, Outreach and Communication sub-committee, Work plan and
Governance sub-committee, and Technical sub-committee. Individual sub-committees effectively
and actively discussed the relevant issues carried out their respective roles and responsibilities
such that decisions can be made efficiently at MSG meetings and activities can be prioritized and
implemented according to the work plan. . Working alongside one another has helped to build
rapport and relationships that are extremely useful in facilitating cooperation between the
constituency groups and consensus decision making. As there are numerous challenges for
Myanmar to overcome in order to improve transparency and accountability, the MSG tries to
manage the time constraint and existing limitations revolving the legal framework and , and
promote and build better coordination and relationships among the three stakeholder groups. Such
efforts were only possible given the open and flexible environment facilitated by the sub-
committee meetings.
Outreach, Communications and Capacity-Development
Under this reporting period, the Sub-National Coordination Units (SNCU) was also initiated and
started to implement as pilot project in Mandalay region where many gold mining projects are
located, and Magway region where many small, medium and some major oil production projects
are located. During the initial stage, the SNCU seems to be functioning well, but due to the
representatives’ lack of understanding at the regional level, the functions were not carried out as
quickly as expected. After key decision makers are changed after the November election in 2015,
the CSO representatives who are selected as representatives for their respective regional sub-
national coordination unit team tried to continue organizing meetings among SNCU members till
today. For example, Magway SNCU group invited the National Coordination team
representatives to present to the new Chief Minister of the region to help him understand the
objectives of the SNCU and how it is related with the National MSG TOR, the work plan, and
the existing problems and conflicts in their respective region’s extractive sector. And they also
continuous in action of review and replace the three constituency groups representative with more
committed and giving time for SNCU too. Mandalay SNCU is also trying to do the same and help
the new Chief Minister of the region to better understand the role of SNCU through sharing the
first EITI report and other relevant EITI documents and information with the new administrators.
Individual constituency group’s capacity building was conducted through organizing specific
trainings for Government, Private and CSOs using the findings from the training need assessment
which was conducted by International EITI consultant during mid-2015. The topics covered
under the capacity building trainings are: (1) Understanding EITI in broader context and the
Importance of Reporting, (2) Facilitating and Communicating with Different Stakeholders, and
(3) Basic Natural Resource Governance from the perspective of EITI.
The SNCU also disseminated the first Myanmar EITI report broadly to other stakeholders from
the three constituency groups and media to enhance their understanding on the report’s findings
and recommendations that are to be implemented in the future as a continuous reform process. It
also had the chance to share the EITI report with all Members of Parliament from Yangon
Division and seek their actions to take on the recommended reform actions. The coordination
team also followed up with the decision of the sub-committee to engage with the media. As it was
discussed in May 2016, the coordination team hopes to share the first EITI report’s
recommendations and finding with the public through platforms such as radio or TV programs,
news outlet such as MRTV in August 2016.
In order to continuously engage the International EITI, the MSG representatives and coordination
team members, including the National Coordinator, participated in several International events
organized by International EITI in collaboration with Philippines EITI, NRGI, and GIZ
Mongolia, to enhance relationships and networks with regional countries that have implemented
the EITI and possess relevant experiences to be applied in the context of Myanmar. Myanmar
consequently also enjoys opportunities to learn from other countries’ experiences and thus, be
6	
	
able to be better unleash the potential and manage existing risks through dialogue in these
platforms. Participants in these events also had the chance to gain a deeper understanding of the
EITI report, the reforms required, and the updated standards, which then can be communicated to
respective constituency group members through the MSG meetings.
Long-Term Funding for EITI
The implementation of EITI is a continuous action for the country and it needs to have enough
budget to implement activities under its work plan for the next three years for Myanmar to reach
the level of a compliant country. It has discussed with development partners like DFID, DFAD,
EU, and the World Bank, and it has also prepared the budget forecast by reflecting its work plan
for the subsequent three years which was agreed by Development Partners, supported through the
World Bank. Although MEITI prepared and did up the budget plan by the end of November
2015, the political change affected the plan as political appointments and leadership structure
were affected by the transition, causing delay in the signing of the agreement between MOF and
WB. This is still awaiting the Cabinet’s decision. As such, the implementation process of EITI in
Myanmar to deliver the prioritised activities under the work plan since March 2016 was also
delayed. Under such circumstances, the coordination team has being trying to maintain some
functions such as organize workshops on beneficial ownership and contract negotiation and
transparency with the budgetary support from NRGI and GIZ Mongolia for Myanmar MSG
representatives and Mongolia EITI representatives. Thus, the coordination team and the MSG are
trying to maintain the momentum by incurring minimal cost while it waits for the signing of
agreement between the government and the World Bank.
MEITI MSG and Civil Society’s Concerns
Additional Inputs from CSOs:
Successes:
1. Sub-committee meetings are conducted regularly and effectively even when the national
level MSG meeting has stopped.
2. Similarly, Sub-National Coordination Units meetings in MDY and Magway are conducted
regularly while the government members have not been officially appointed.
3. Civil society has built good relationship with the Ministry of Natural Resources and
Environmental Conservation. They have organized and participated in mining monitoring
trip together with CSO, regional and local governments, Department of Mines, and the
private sector in January 2016. They are also planning to conduct a similar trip again in
June-July 2016 in the Sagaing region.
4. CSO representatives - MSG-MEITI has organized a press conference regarding its
position and stance on the first Myanmar EITI report in January 2016.
5. Due to the formation of Sub National Coordination Units in the Mandalay region, the
situation of illegal mining has slightly improved as there is a better monitoring process
and local responsive mechanism by three constituencies, and the SNCU members.
6. CSO has facilitated community research in Lapadaung copper mine and advocated
Members of Parliament, regional government and the media to respond to the findings in
June 2016.
7. CSO conducted an advocacy meeting with Members of Parliament in Natural Resources
Committees in Ahmyothar and Phythu Hluttaw, Ministry of Natural Resources and
Environmental Conservation, and regional governments in May 2016, highlighting the
importance of implementing EITI recommendations to enhance transparency and
accountability in natural resources governance in Myanmar.
7	
	
Challenges:
1. There were no capacity development activities for MEITI-MSG apart from the workshop
on beneficial ownership which was held in May 2016.
2. Although regular SNCU meetings were held at the regional level, there is a need for the
SNCU to be more functional so that they can effectively respond to local issues and
improve resources management in the regions.
3. CSO has submitted its recommendations (13 in total) upon the final draft version of
Myanmar EITI report in the 12th MSG meeting which was held in Dec 2015; however,
the first Myanmar EITI report has not covered and reflected them in their entirety.
4. MEITI-MSG has yet to conduct public debates in the regions regarding the first Myanmar
EITI report, and has only launched the report in March 2016.
5. MDTF fund has been delayed because it has yet to receive the government’s official
approval to implement MEITI activities according to the work plan. This is because there
exists much bureaucratic red tapes between MEITI Secretariat team from CESD (Former
MDRI) and the MOPF.
6. CSO has changed its representatives in November and December internally. Myanmar
Alliance ob Transparency and Accountability (MATA) and CSO representatives have
informed MEITI Secretariat with an official change of appointment letter; however,
MEITI-Secretariat has yet to recognize the changes and they are still using the old CSO
representatives’ names meetings, workshops or training invitations. Thus, the CSO-MSG
representative feels that they have been discriminated against amongst other
constituencies within the MEITI-MSG.
7. The official announcement to continue implementing the Myanmar EITI process has not been
released yet. Therefore, there exists uncertainty in the continuation of MEITI implementation
process.
Recommendations to Improve Engagement and the Implementation of EITI in Myanmar from
the Perspective of Relevant Constituencies
First Myanmar EITI report is highly incomplete. However, the recommendations are strong.
Nevertheless, there is little discussion on how to implement these recommendations amongst the
MEITI-MSG members. CSO is also mainly concerned that the MEITI-MSG will produce the
second Myanmar EITI report based on the weak points of the first report as mentioned below,
 Approximately 50 percent of public money from oil, gas and mining are kept by state-
owned economic enterprises (SEEs) in off-budget’s “Other Accounts.”
 It is necessary to disseminate the information regarding the list of active oil, gas,
gemstones and mineral licenses updated as of March 2014 so that these information
can be publicly available.
 The value of jade production and revenue generation should be disclosed as only 54
percent of the gemstone companies in the emporium,— a small fraction of the total
industry -- was covered in the first Myanmar EITI report.
 The revenues from the extractive industry should be reported on a project-by-project
basis so that public can understand the sources of resource revenues and their
respective owners, to monitor their performance in managing the projects in
accordance with the standards.
 Licensing procedures and allocation criteria has to be disclosed according to the EITI
requirements to improve transparency and accountability.
 Data on beneficial ownership has to be disclosed according to revised EITI standard in
2016.
8	
	
 Contracts and licenses’ terms should be disclosed despite the EITI guidelines
‘encourage’ disclosure. The lack of transparency and disclosure reduces stakeholders’
ability to monitor and enforce companies’ financial, operational and social obligation.
Thus, CSO urged all MEITI-MSG to place emphasis on implementing the above-mentioned
points to improve the transparency mechanism for better natural resources governance in
Myanmar.
As a first step to implement Myanmar first EITI report’s recommendations, the CSO would like
the MEITI-Secretariat to follow up the decision stemming from the Outreach and
Communication, Governance and Work plan sub-committee meeting, which was held on 3rd
June:
1. As an advocacy group of the MEITI-MSG, one representative from MEITI-MSG will
meet with EITI-related ministries in July 2016 to discuss what the ministries are doing
regarding the recommendations. This is to better understand the challenges, strengths, and
opportunities to move forward with the recommendations on revenue management to
enhance resource governance in Myanmar.
2. In order to meaningfully implement the EITI process in Myanmar, CSO would like to
recommend that more capacity building opportunities be offered on top of workshops and
trainings. This entails offering all MEITI-MSG members (3 constituencies) opportunities
to act as the facilitator in the meetings, discussions, workshops, etc. According to the
consensus decision making practices within MSG members of EITI process, it is required
that 3 constituencies have a sense of equal participation and non-discrimination without
any impeding information sharing.
3. Although MEITI communication strategy has been drafted since late 2015, there is no
major attempt to implement this strategy. The strategy entails outreach activities to raise
public awareness on Myanmar’s EITI implementation process. Moreover, the
communication mechanism is not properly worked out when the information is shared
internally or externally.
4. Myanmar EITI-MSG is required to agree and develop the strategy vs work plan in
accordance with Myanmar’s context to implement the MEITI process effectively and
efficiently.
5. Finally, CSO would like to recommend developing an action plan to carry out the
implementation of the first Myanmar EITI report’s recommendations by MEITI-MSG.
Additional Input from Governments:
(Still waiting while they are confusing and not clear their role)
Additional Input from Privates:
(Still waiting while they are preparing )
9	
	
2. Assessment of performance against targets and activities set out in the workplan
The MSG discussed and reviewed the Work plan’s objectives and activities after the MSG workshop for 2014-2015 Annual Activity Progress
Report. It was revised with more clarification on the activities but it did not change the context of the work plan with the inputs of MSG member
by the end of February 2016.
The following is an assessment of progress against the activities in the Work plan, from July 2015 (when the Work plan was agreed by the MSG)
until June 2016.
Objective 1: Contribute to broader reform for resource governance
Number Activity Status Time
in WP
Remark/ Summary of Progress from July 2014-July 2015
1.2.1 Carry out legal study to build on
recommendations of legal review and the
scope of the study
Not
achieved
Mid
2017
This was discussed by the MSG at the time when the Work plan
was finalized in April 2014, and was briefly discussed again at
the MSG workshop in July 2015. It will be carried forward in the
revised Work plan as an activity for the subsequent year.
1.2.2 Prepare for drafting of the EITI bill
including consultation with legislators
and other key stakeholders
Not
achieved
Early
2017
This was discussed by the MSG at the time the Work plan was
agreed to in April 2014 and was briefly discussed again by the
MSG at the MSG workshop in July 2015. It will be included as
an activity in the revised Work plan, based on the findings of the
legal study.
1.2.3 Government EITI Coordination
1. Establish inter-departmental EITI
working group under each key EITI-
related ministry (EITI Special Units)
2. Review and strengthen existing
governmental EITI coordination
mechanism
Partially
achieved
/
Ongoing
Mid
2014
and
onward
s
Some ministries, e.g. Ministry of Mines, established an inter-
departmental EITI working group. However, the Ministry of
Energy, MOECAF and GAD have indicated that they may set up
a working group. Ministry of Finance have not yet done so, but
have established the EITI National Secretariat unit.
However, the process is awaiting with the guidance and
commitment of the new Government. The renewal of
10	
	
commitment by the new Government can reduce the delay and
confusion within the MSG structure, as it is currently fraught
with uncertainty due to the change in government
representatives.
1.2.4 MEITI Coordination Office/ Secretariat
transition to Ministry of Finance (MDRI-
MEITI team to work with Leading
Authority to agree and implement step-
by-step plan)
Partially
achieved
/
Ongoing
Mid
2016
A plan was agreed with the Government EITI Leading Authority
that the MDRI-CESD MEITI Coordination Office would slowly
hand over responsibility of the National Secretariat function to a
designated team in the Ministry of Finance. This could not
implemented as planned in the late 2015. Due to not having
enough staff members and the turnover of the department head,
the plan of the handover process was pushed back to early 2016,
and then the end of June 2016.
The CESD MEITI Coordination Office continues to work as
closely as possible with this team, although the handover process
is completed in June 2016. It is therefore expected that the
CESD team will need to continue to work with the team in the
Ministry of Finance for the foreseeable future.
1.2.5 Identify and plan the support required for
the government (central and regional
offices) to understand and calculate: 1.
regional/local extractive industries’
contribution to national economy and 2.
production and export volumes and
pricing
Not
achieved
Mid
2014-
2015
The Independent Administrator’s Terms of Reference included
an assessment of these requirements. It is anticipated that the
Independent Administrator will make recommendations for
improving and strengthening the government’s management and
collation of such data moving forward.
This activity is therefore carried over into next year’s Work plan.
1.2.6 Establish a centralised government
register of licenses which covers both the
national and sub-national levels
Not
achieved
Mid
2016-
2019
This activity has been included in the Work plan by the MSG
with the caveat that it is not strictly or normally an EITI issue,
but that it was included to ensure alignment with EITI
Requirement 3.9.
11	
	
Discussions about establishing a minerals cadastre are now in
place with MOM. This activity will therefore remain in the Work
plan for 2016-2017, and there will also be a workshop at the end
of 2015/early 2016 to identify and decide on the best options for
Myanmar.
1.2.7 Carry out review of the illegal and
artisanal and small scale mining (ASM)
sector to understand potential
contribution to national economy and
estimation of production data
Not
achieved
Late
2014
This activity was included in Moore Stephens TOR, and will
therefore be carried forwards into next year based on the
Independent Administrator’s recommendations.
1.2.8 Carry out review of the jade and
gemstone sectors for other potential
inclusion in scope of second MEITI
report (If not effectively covered and/or
included in scoping study and first EITI
report)
Achieve
d
Early
2016
In December 2014, the MSG agreed that the scope of the study
would only include formal government data on jade and
gemstones from the Gems Emporium. As such, the entire jade
and gemstone sectors will not be wholly covered in the study or
in the first MEITI report.
There have been some discussion in the MSG regarding the
options for producing this report and some preliminary data has
been gathered. The MSG decided in June 2015 that the review
should be carried out after the scoping study has been completed.
1.2.9 Government (including SOE) needs to
identify its level of ownership in the
sector
In
progress
Mid
2014-
2017
There has been initial discussion during the government’s
working committee meetings, especially on the available data for
the scoping study’s preparation. There exists a need for
continuous discussion amongst key stakeholders.
This was also included in the Independent Administrator’s TORs
and will be carried forward based on their recommendations
12	
	
accordingly.
1.2.10 Government to review availability of
EITI-related data among SOEs for
disclosure in EITI report
In
progress
Mid
2014-
2016
There has been initial discussion during the government working
committee meetings, especially on the available data for the
scoping study’s preparation. There exists a need for continuous
discussion amongst key stakeholders.
This was also included in the Independent Administrator’s TORs
and will be carried forward based on their recommendations
accordingly.
1.2.11 Government to review extractive
industry-related sub-national practices,
payments and revenues
Partially
achieved
/ on
going
Mid
2014-
2015
This was discussed in the MSG sub-committee and a
representative of the Internal Revenue Department offered to
organise a workshop to review extractive industry-related
practices at the subnational level. It was organized in late 2015.
This was included in the Independent Administrator’s TORs and
will be carried forward based on their recommendations
accordingly.
1.2.12 Carry out a study to map and identify
levels of beneficial ownership in the
extractive sectors in Myanmar (If not
effectively covered and/or included in
scoping study)
Under
discussio
n
End
2016
The MSG discussed this when agreeing to include it in the Work
plan in April 2014.
In March, a government representative from the Myanmar
Investment Commission participated in a beneficial ownership
workshop organised by the EITI International Secretariat in the
UK.
The issue of beneficial ownership was discussed briefly at the
MSG workshop in July 2015. The oil and gas companies present
indicated that they would not have a problem making their
beneficial owners public and for this to be included on a public
13	
	
register in Myanmar. It was noted that the mining company
representatives were less comfortable with this suggestion.
The Independent Administrator’s TOR for the scoping study
requires them to propose a definition of beneficial ownership
consistent with EITI requirement 3.11.d, and a mechanism for
reporting and disclosure in accordance with EITI Requirements
3.11.a-b.
1.2.13 1. Government to agree procedure for
disclosure of information related to the
allocation of licenses
2. Disclose information about bidding
process including list of applicants and
the bid criteria (2013-2014) in line with
EITI 2013 Standard Requirement 3.10
In
Progress
Late
2014-
2015
This activity, which focuses on MOGE and the disclosure of
some data about the 2013-2014 bidding process, was briefly
discussed in one or two MSG meetings and in some sub-
committee meetings.
The information was provided to the Independent Administrator
for inclusion in their report.
1.2.14 MSG members will explore the
methodology and the extent of contract
disclosure and social expenditures
In
Progress
2014-
2015
Contract disclosure and social expenditures have been briefly
discussed a few times, although not formally at a regular MSG
meeting.
At the MSG workshop in July 2015, there was some discussion
about contract disclosure.
The Independent Administrator’s TOR covers both of these
issues in line with EITI Requirements 3.12 (b) and 4.1 (b). It is
therefore expected that the MSG will address these issues more
substantially once the Independent Administrator has completed
their work.
Objective 2: Create enabling environment for EITI
Activity Activity Status Time in Remarks/Summary of Progress during 2014-2015
14	
	
Number WP
2.1.1 1. Carry out Training Needs Assessment for
MSG and key stakeholders
2. Design training plan, training manual
materials etc. to include training of trainers
(TOT)
Achieve
d
Mid
2015
The draft training plan has been produced and the
accompanying report was finalised and approved in early
September.
2.2.1 Two or 3 training activities per year
depending on training needs
identified/training plan - for MSG members
Achieve
d/
ongoing
End
2015-
2019
Several training activities were offered/delivered to MSG
members throughout the year (although these took place
before the training needs assessment had been carried out).
2.2.2 MSG Study Tour & Exchange visit to
Mongolia
Achieve
d
Late
2014
A group of MSG representatives was invited to Mongolia in
November 2014 by GIZ to participate in a conference and
meet Mongolian EITI representatives to share, learn and
discuss EITI implementation.
2.2.3 MSG Study Tour & Exchange visit to the
Philippines
Achieve
d
Mid-late
2014
This took place later than originally anticipated, but was a
very valuable experience for the MSG participants.
2.2.4 Government training and capacity
development (as requested by government)
1. Basic natural resource governance
training to EITI related (Union) ministries
2. Basic natural resource governance and
EITI training to regional governments
(especially from resource rich states and
regions)
3. Advance Natural Resource Governance
and Reporting Practice Training to MEITI
Government, Working Group and Working
Group/Focal Group from Each EITI Related
Achieve
d/Ongoin
g
Mid
2014-
Onwards
A range of EITI related training has been offered to key
government ministries, including:
- Introduction to EITI
oMinistry of Mines
oVarious other ministries including GAD and some
parliamentarians
- Natural Resource Governance
o Ministry of Mines
- Preparation for EITI Reporting
oMinistry of Finance
oVarious government departments
15	
	
Government Agencies
4. Fiscal regime in EI related training
5. International accounting standard and
project financing and evaluation training
2.2.5 Civil Society Organisation (CSOs) training
and capacity development
Training activities to be developed as per
Training Needs Assessment
Achieve
d /
Ongoing
Mid
2014-
2016
A number of CSO training activities took place during the
year are including –
 Introduction to EITI
 TOT for EITI Awareness
 Natural Resource Governance
 Contract Transparency
In particular, NRGI is working closely with Myanmar
CSOs to support them and build capacity to participate
effectively in the EITI process.
2.2.6 Private Sector training and capacity
development
Training activities to be developed as per
Training Needs Assessment
Achieve
d/Ongoin
g
Mid
2014-
2016
Prioritised training for the private sector will focus on
supporting the reporting companies with the reporting
process. However, some local level companies have
participated in events related to outreach and raising
awareness, especially in Mandalay and Magway where the
two subnational coordination units have been established.
There are plans to to organize two trainings for Private
Sector with MFMA in Yangon and Mandalay by December
2015.
2.3.1 Legal Review Achieve
d
Late
2013-
2014
A legal consultant (Baker & McKenzie) was contracted by
the World Bank in 2013 to carry out the legal review. The
final report was produced in 2014.
2.3.2 Political Economy Study (Pre-scoping
Study)
Achieve
d
By mid
2014
Adam Smith International: ‘Institutional and Regulatory
Assessment of the Extractive Industries in Myanmar’ was
16	
	
finalised and published in 2015.
Objective 3: Prepare and facilitate the process for implementing EITI
Number Activity Status Time in
WP
Remarks/ Summary of Progress during 2014-2015
3.1.1 Prepare and secure World Bank Multi
Donor Trust Fund (MDTF) funding until
end 2015
Achieved A USD 290,000 grant to the Ministry of Finance from the
World Bank-managed EITI MDTF provides funding until
the end of 2015. This is complemented by Bank-executed
activities, including financing of a technical adviser, a
communications consultant, and a public financial
management consultant, and the financing of the Scoping
Study. The Bank-executed activities are also financed by
the EITI MDTF.
3.1.2 Prepare and Secure DFID and/or
alternative development partner for short-
medium-long term funding
In
progress
In principle agreement has been reached with the World
Bank to provide a grant from Myanmar Partnership
MDTF, with funding from DFID and perhaps DFAT.
Grant development is underway.
3.1.3 Prepare and secure government
contribution to EITI
Under
discussio
n
Onward Some preliminary discussion has been held with the
government on the potential financial contribution to
EITI.
3.1.4 Prepare and secure core funding for MEITI
Coordination Office
Achieved Given the need for ongoing MDRI MEITI team support
to the EITI process and the Ministry of Finance, funding
is being factored in to the revised 2016 – 2019 Work
plan.
3.2.1 Hold MSG Meeting every two months Achieved
/ Ongoing
Candidate
Onward
MSG meetings have been held regularly approximately
every 2 months.
17	
	
3.2.2 Establish MSG Sub-Committees,
Taskforces, Supporting Committees or
Monitoring Committees as necessary and
hold Meetings accordingly
Achieved
/ Ongoing
Candidate
Onward
In July 2014 the MSG agreed to establish 3 sub-
committees to support its work and with the mandate to
work in more detail on key areas, on behalf of the MSG.
The 3 sub-committees are:
 Work plan and Governance
 Technical and Reporting
 Communications and Outreach
The 3 sub-committees have met regularly during the year.
3.2.3 Procure reconciler firm to carry out
detailed scoping study and prepare first
MEITI report
Achieved
/ Ongoing
After
MEITI
Candidacy
Applicatio
n
Approved
The Independent Administrator was procured in June
2015. The MSG established a ‘Selection Committee’ to
oversee and lead the selection process.
3.2.4 Scoping Study Achieved Early 2015 This activity was delayed to mid-late 2015.
3.2.5
1. MSG to agree scope and definition of
materiality threshold for the first report
based on the results of the scoping study
2. Reconciler to develop reporting
templates with MSG in line with agreed
scope
3. MSG to approve the reporting templates
Achieved Based on
scoping
study,
early 2015
This activity was delayed slightly. It is anticipated that
the scoping study will be finalised in October 2015. The
MSG has agreed on the scope and reporting templates
accordingly.
3.2.6
Training on EITI reporting and templates
for all Reporting Entities
Achieved After
scope
agreed
(2015)
This was carried out by Moore Stephens, the Independent
Administrator after the scope of the first report has been
agreed.
3.2.7
Preparation and Production of MEITI
report
Achieved Jan 2016 Moore Stephens produced the first MEITI report. This
began in October 2015.
3.2.8 Approve and Launch Of MEITI Report by Achieved After Once the draft report was finalised, and the MSG and key
18	
	
MSG -Ongoing completio
n of
MEITI
Report
stakeholders have had the opportunity to give any
feedback, the MSG formally approved the report. Once
the final version had been approved it was officially
launched.
3.3.1
Prepare for the 2nd Report including
procurement of Reconciler and possible
second scoping study
Under
process
Early
2016-End
2016
The MSG will make a decision on this during 2016.
3.3.2
Production of 2nd MEITI Report
Under
discussio
n
2016-2017 This will take place during 2016 (possibly 2017).
3.4.1
Engage in validation, review and approval
of validation report
Under
discussio
n
By
January
2017
Validation must take place by January 2017 (2.5 years
after candidate status granted).
Objective 4: Increase the accessibility of data (Communication and Information Sharing)
Number Activity Status Time in
WP
Remarks/ Summary of Progress during 2014-2015
4.1 Widespread communication and
dissemination of MEITI report, ensuring
contribution to public debate including e.g.:
- Press Release
- (Media) Including TV, Radio, Print, events
and activities
Ongoing Early
2016-late
2106
It has been taking place once the EITI report is published
and in line with the Communications Strategy.
4.2.1
MEITI Website (regular updating and
maintenance)
Ongoing 2014 and
Ongoing
A new Communications Officer was appointed in June
2015. The website is also now being revised and
improved.
It has been handed over to the MOF team by April 2015
and one staff who is assigned to undertake the role of
19	
	
communications.
4.2.2
MEITI Secretariat to establish online and
physical 'library' of EITI related information
for EITI stakeholders (where the information
is not publicly available, it should be
approved by MSG)
Ongoing Late
2014 -
Onwards
The MEITI office are collating numerous relevant and
insightful documents/reports etc. which will be available
for downloading from the MEITI website (in both
Myanmar and English languages).
This will also be covered in the Communications
Strategy.
4.2.3
Develop MEITI communications
plan/strategy
Achieve
d
Late
2015
This activity was slightly delayed but was produced by
the end of 2015.
4.2.4
Implement communications plan/strategy
including e.g. information, education and
communication materials, outreach events,
workshops, seminars etc.
Ongoing Late
2014 -
Onwards
In line with the MEITI Communications Strategy, a range
of communications and outreach events and activities will
held each year, including e.g.:
- National EITI conference
- Annual MSG workshop
- Subnational coordination unit events
- Outreach events and workshops
4.2.5
Possible Outreach Events to include:
1. Seminars and workshops (approx. 15)
2. National EITI Conference
Ongoing 2014-
2016
Various outreach events were held during the year as
follow
 7 seminars with EITI introduction of regional level
 8 trainings and workshops with Media and
Government
4.2.6
Outreach events for each constituency group
Partially
Achieve
d
/Ongoing
Mid
2014-
2016
Outreach events were held primarily for CSOs and
government stakeholders during the year.
4.2.7
MSG to discuss and agree options for
establishing regional CSO-government EITI
Partially
Achieve
Late
2014
This activity became the MSG agreement, in December
2014, to establish the ‘pilot’ 4 subnational coordination
20	
	
support groups
- options for establishing groups followed up
d Onward units. The agreed 4 states and regions were: Mandalay,
Magway, Shan and Rakhine.
By July 2015, two of these-- Mandalay and Magway --
had been successfully established. It is intended that the
remaining 2 will be established as per the MSG decision
later this year.
4.3.1
MSG to establish internal monitoring and
evaluation mechanism e.g. MSG Monitoring
and Evaluation Sub-Committee
Not
achieved
Late
2016
Onwards
The following activities all contribute to ongoing
monitoring and evaluation of the EITI process:
- CSOs as non-reporting entities, play monitoring and
oversight role
- The Annual Activity Report process
- Regular Workplan and Governance Sub-Committee
meetings i.e. the governance, institutions etc. of the
EITI process.
- The Validation process (for Myanmar this will begin
by January 2017).
Whether additional monitoring is still needed can be
discussed by the MSG.
4.3.2
Post MEITI First Report Activities -
- Evaluate and review first report process
- Follow up MEITI Report recommendations
- Carry out any research/ studies as necessary
including CSO study using participatory
action research methodology and PAME
2016 2016
Onwards
Not applicable during this year
4.3.3
1. Carry out review of government financial
data management system needs for effective
EITI implementation (Consultant)
2. Consultant to develop the system based on
the needs identified, and provide training
Under
process
2015-
2016
This activity will be carried based on the IA’s
recommendations in the first MEITI report.
21	
	
accordingly
4.3.4
MSG to review and revise the Workplan
Achieve
d
March
2015
This was one of the key objectives of the MSG workshop
in Pyin Oo Lwin in July 2015.
The MSG Workplan and Governance Sub-Committee has
met a few times to discuss the Workplan and budget. In
particular, after the MSG workshop in July, there have
been several meetings to review and revise the Workplan
in time for the MSG’s approval in September.
4.3.5
MSG to review annual progress (Workplan),
produce annual activity/progress report and
send to International Secretariat
Partially
Achieve
d
February
2016-
July
2016
The main objective of the MSG Workshop in Pyin Oo
Lwin in July 2015 was to review annual progress against
the Work plan and prepare for the Annual Activity
Report. However, as this was not possible, the process of
preparing the Annual Activity Report was slightly
delayed.
22	
	
3. Assessment of performance against EITI requirements
During the course of the year (from July 2015 to June 2016), the MSG had 4 meetings, and there
were meetings of each sub-committee at least once in between MSG meetings.
In preparation for the Independent Administrator’s TORs for 2nd
EITI report, which was
substantially discussed by the MSG Technical and Reporting Sub-Committee, the committee
ensured that each of the EITI Requirements would be covered in the scope of the IA’s work. Even
though this is the second year of EITI implementation for Myanmar, progress in meeting specific
requirements in the Standard has been limited given the time constraint and the changing
Government structure. Thus, the second report would have its scope extended and additional
sections. However, while the first report is completed timely and contains useful
recommendations, it is difficult to hold regular meetings to enforce the implementation of reform
measures due to the impact of political change and its consequent structural change in the
Government’s Ministries.
Even though the EITI Requirements per se were not formally discussed in MSG meetings in
2016, they are all included in the Work plan and also in the Independent Administrator’s TOR.
The MSG will be able to discuss them more systematically during and after the Independent
Administrator has designated their tasks for the second report.
Beneficial ownership (3.11)
Even the workshop on Understanding Beneficial Ownership was organized in early June, there is
still the need for continuous discussion on of the definition of BO by Myanmar EITI. This
component in the work plan is delayed and will be postponed to late 2016.
Contracts (3.12)
Due to the uncertainties within the MSG caused by the changes in political appointments within
the Ministries, the component of contract transparency could not move forward as planned. It
was also difficult to build a broader understanding on existing practices and cover topics under
the contractdespite the drafts by both parties in the public and private sectors. are following the
same legal framework.
23	
	
4. Overview of the Multi-Stakeholder Group’s Responses to the
Recommendations from Reconciliation and Validation, if applicable
Under the process of preparation by MSG sub-committee, it has been decided that
separate meetings with respective Government departments’ key staff members will
be conducted to allow them to have an understanding on the report’s
recommendations and how they can be integrated in their existing development and
reform plans. Due to the political change, Myanmar administrative structure are also
relatively fluid given that some ministries are merging and Ministerial appointments
are filled with new members. Advocacy on the report’s recommendation and the
implementation will be prioritized in the next six months of 2016.
5. Any specific strengths or weaknesses identified in the EITI process
Strengths
Coordination
Under the reporting period, coordination among three constituency groups is continuously
improved and having dialogue for better improvement of policy reform and issue management
between Government and CSOs representatives like having meeting with Mining for some issues
related mining in region. Participation of sub committee members is functioning well even there
was some changes in focal for sub com member from the side of Government and CSOs, was not
impact in the coordination for moving forward the action. It was also organized regular internal
team meeting among CESD coordination team, MOF secretariat Team and WB focal persons
monthly until early 2016. It’s also build the effective dialogue and making decision for delivering
the activities under work plan and prioritise activity in line with requirements and time frame.
Debate and Adaptation to Context
As a continuous action of developing the TOR for IA and the preparation plan for the first EITI
report, debates on the scope, reporting template, including the number of companies based on
their revenue payment to Government took place and the follow sectors are decided by scoping
study:
 Oil and Gas
 Mining (including jade and gemstones but only formal government’s Gem Emporium
data)
Even though the MSG agreed that a separate feasibility study to determine the inclusion of the
hydropower sector into the EITI process should also be carried out in time for the second MEITI
report in its first annual progress report, the dialogue at sub-committee meetings also pushed for
the inclusion of the fishery sector.
While the MSG mechanism is slowed down, it is still maintaining dialogue and discussion
through sub-committee meetings to discuss the preparation of the IA’s TOR.
Increased Dialogue
In terms of increasing engagement with stakeholders, the MEITI process led to civil society
representatives entering into a regular, open dialogue and relationship with key ministries. For
example, as a result of discussions in the MSG, CSOs and Ministry of Mines representatives are
now meeting on a regular basis.
It is also set up mechanism of having regular dialogue and meeting among three stakeholders
representatives at two pilot regions where SNCU set up as pilot.
24	
	
Outreach, Inclusion and Capacity Development
There were considerable efforts to build awareness and capacity of MEITI stakeholders
throughout the year. This includes numerous training sessions for all key stakeholder groups,
including some not directly involved in the MEITI process such as the media and
parliamentarians.
There were also numerous outreach events at the subnational level in several states and regions.
Most of them were organised collaboratively by MATA and CESD MEITI Coordination Office
to raise awareness in communities. At times, MATA CSO coalition and some government
support are involved.
It was also organized trainings related technical knowledge building for three stakeholders and
some skill required for constituency groups to do better coordination and delivering the action
effectively in facilitative approach by the late 2015 in collaborate with NRGI and with some
external International experts for facilitation and communication sill. By the end of 2015, some
trainings were organized for the three types of stakeholders in terms of technical knowledge build
up, and constituency groups were also offered opportunities to develop coordination,
communication, and facilitation skills. These were conducted in collaboration with NRG and
various external international experts.
Positive Reflections
The first Multi Donor Trust Fund for implementing EITI in Myanmar was depleted by the end of
2015 and due to the delay of signing the grant agreement caused by the political change, MSG
members have been trying to maintain the momentum and contribute their time on low-cost
deliverables while attempting to find the collective solution to meet the EITI requirements and
standards. to support better reform of the accountability and transparency practice and mechanism
in Myanmar under the critical change of political situation when Government representatives are
unclear for their role and participation in EITI.
Weaknesses
Myanmar tried to implement EITI and overcome some challenges to improve coordination among
the three groups who lack trust in one another. After the first EITI report has been developed,
Myanmar is preparing for the second report to be submitted timely in early 2017 while ensuring
to carry out the recommendations from the first report.
Limitation
. Build a balanced tripartite understanding and confidence towards the building of a
developed nation while ensuring good governance and transparency;
· Regular verbal communication between different interest groups is necessary to
improve more strategic communication through the MEITI communication channel.
· Have expectation of being a member of MSG, become a member after overcoming
obstacles, need to gain benefits for the general public;
· Mixed results: While there is some improvement, there were unpleasant occurrences at
the ground level., Some examples are the Lapadaung case in Sagaing Region ,Pin Pat Mining
in Shan State, Ta Gaung Taung Nikle Mining in Sagaing Region, etc.
· Establish good relations with the government, companies, and CSO. However, CSO still
25	
	
feels that there is a difference between champion and MSG member in reality.
· There are many challenges ahead in the action plan and the work plan for the next year to
agree upon consensus practices.
- After political change takes place, new leaders are trying to manage and improve various
sectors. As they place more focus on building peac , EITI was less prioritized.
- The change in leadership and ministerial appointments made existing MSG structure
uncertain as Government representatives are unclear of their participation and state of
involvement.
Poor Data Quality
It was covered under the recommendation from the first EITI report. Ideal data collection could
not be implemented as the key practitioners involved with the data management do not have a
clear understanding on the importance ensuring good data quality. It could not link and
collaborate between development of quality data in Ministry with the support of other
development agency, have being implementing process and EITI data quality requirement.
Institutional Culture and Paradigm Shift
After the 2015 November election, the change in the country’s authority and resulting bureaucrati
change often hamper progress in EITI implementation. This ranges from simple meeting requests
(which often require various levels of authorisation, approval and procedure), to disclosing agreed
data/information for the purpose of EITI reporting (which, in this first year of reporting, has
presented a significant challenge).
As the government reforms slowly continue, and people become increasingly familiar with the
EITI process over time, we hope that these constraints will be reduced and the systems involved
will improve. Therefore, the transition to greater transparency and open operating environment–
in line with the spirit of EITI – is likely to necessitate a major paradigm shift that will probably
need more time.
Institutionalisation
The National Secretariat in the Ministry of Finance was supposed to be firmly established during
the course of the year, with the aim of being fully functional by the end of 2015. However, due to
various challenges during the year, the MDRI-CESD MEITI Coordination Office team continues
to play the lead role of the National Secretariat function, with some part-time participation from
the MOF EITI team. The MDRI-CESD MEITI Coordination Office team has made clear the
importance of assigning full time MOF staff to EITI activities. The aim is to have a fully
functioning MEITI National Secretariat team based in the Ministry of Finance who effectively
supports the MSG as required.
In practice, it was difficult to collaborate between two teams as the CESD MEITI is based in
Yangon while the MOF EITI is based in Nay Pyi Taw., The difference in locations also delayed
the hand over process and thus, it was extended to the end of June 2016.
Expectations
Human rights-related concerns and grievances have been brought into EITI MSG discussions
repeatedly during the year, even though EITI as a process is not equipped or intended to capture
these issues. It is therefore very clear that there is a strong need in Myanmar for other fora in
which human rights-related issues and concerns can be properly addressed. This could include,
for example, corporate grievance mechanisms, a credible and responsive human rights
commission, and the general strengthening and implementation of the Rule of Law.
26	
	
5. Total Costs of Implementation
Costs for implementation were divided during 2014-2015 as follows:
Executing Agency Beneficiary Budget
DFID Accountable
Grant ‘for Strategic
Coordination of EITI
in Myanmar’
CESD Effective EITI implementation
for the benefit of the people
and government of Myanmar
July 2014 - February 2016: USD 331,318
Extension up to June 2016- USD
DFID Externally
Funded Output (EFO)
World Bank Overall support for effective
EITI implementation
May 2013 – May 2015: USD 599,600
World Bank Global
EITI Multi Donor
Trust Fund (Global
EITI MDTF)
Ministry of Finance
MEITI Secretariat /
World Bank
MEITI Work plan
implementation
2014- December 2015: USD 290,000 plus Bank-
executed technical assistance
World Bank Myanmar
Partnership Multi
Donor Trust Fund
(MP-MDTF)
Ministry of Finance
MEITI Secretariat /
World Bank
MEITI Work plan
implementation
From January 2016 until 2019 (4 years? subject to
MSG decision)
‐ USD 3.5 million (approx. to fund entire
Workplan)
(under the process of signing agreement)
27	
	
5. Any Additional Comments
6. Has this Activity Report been Discussed Beyond the MSG?
Due to the limitation of a lack of budget, the coordination team has provided a
general timeframe for individual constituency group representative to collect various
information in order to prepare the annual report. At the same time, the coordination
team prepared the draft annual report which is shared with MSG representatives for
their inputs and recommendation, hoping to receive the inputs and concerns by 24th
June. However, there was not enough time for each constituency group
representatives to respond and Government representatives are not sure of their own
involvement in the MSG. The representatives from the private sector is also
concerned about the MSG structure and has been relatively slow in responding to the
coordination team. Therefore, the coordination team is trying to submit this draft
report to the International EITI and trying to get each constituency group’s
recommendation and contribution in the meantime.
After drafted the report to be shared to International EITI on 3rd
July 2016, MEITI
secretariat team continue to contribute this draft report among MSG and request their
feedback and comments on it by giving time until by the 2nd
week of August 2016.
And then accepted no reply and comments from MSG, mean they all are agreed on it
and then finalized this report to be shared to International EITI and share to wider
public through MEITI Web site.
7. Details of Membership of the MSG During the Period
(including details of the number of meetings held and attendance record)
Please see table in Annex 1
Approved by MSG:
-------------------------------------------------------------------------------------------------------
-
Date:
-------------------------------------------------------------------------------------------------------
-
28	
	
Annex 1: List of MSG members, and attendance at MSG meetings
No Name Organization
MSG Meetings in 2015/2016 Remark
Tenth Eleventh Twelfth Thirteen
1 Chair MoF √ √
2 Vice-Chair MoE √
Government Representatives
1 U Tin Myint GAD/MoHA √ Become MSG Representative
on 12th
MSG Meeting
2 Dr Nyi Nyi Kyaw MoECAF √ √ √
3 U Myo Mynt Oo MOGE
4 U Win Htein MoM √ √ √
5 U Min Htut MoF
6 Daw Khin Aye Swe AGO √ √ √
Government Alternates
7 U Ye Naing GAD/MoHA √ √ √
8 Thura U Htin Kyaw
Moe
MoF √ √ √ √
9 U Kyaw Thet MoM √ √
10 U Than Htay Aung MOGE √ √ √ √
11 U Nanda Win Aung MoECAF √ √ √ √
Private Sector Representatives
1 Mr Xiaver Preel Total E & P Myanmar
2 Mr Terence J. Howe MPRL E & P Myanmar
3 Mr Li Hongyuan CNMC Nickel Co. Ltd. √ √ √
4 Mr Chen Kah Seong PC Hong Kong √ √
5 Mr Song Huai Yin Goldpetrol Joint
Operation Company Inc.
√
6 U Aye Lwin MFMA √ √
Private Sector Alternates
7 Mr Bertrand Brun Total E & P Myanmar √ √ √ √
8 U Andy Tin Win PC Hong Kong √ √ √ √
9 U Aye Thwin Goldpetrol Joint √ √ √ √
29	
	
No Name Organization
MSG Meetings in 2015/2016 Remark
Tenth Eleventh Twelfth Thirteen
Operation Company Inc.
10 Daw Kyisin H Aung MPRL E & P Myanmar √ √
11 U Khin Maung Han MFMA √ √ √ √
Civil Society Representatives
1 U ALex KESAN
2 U Win Myo Thu Eco/Dev √
3 Dr Kyaw Thu Paung Ku √ √ √ √
4 U Ye Thein Oo √ √ √ √ Become MSG Representative
on 12th
MSG Meeting
5 Daw Su Hlaign
Myint
GBP (Sagaing) √ √ √ Become MSG Representative
on 12th
MSG Meeting
6 U Khaing Kaung San Wun Lat Development
Foundation
√ √ √ √
7 U Mung Dan TANK (Kachin) √ Become MSG Representative
on 13th
MSG Meeting
8 U Thant Zin DDA √ √
9 Moe Moe Tun Green Trust (Pyin Oo
Lwin)
√ √ √ √
Civil Society Alternates
10 U Moe Myo Sat Thit (Shan) √
11 U Naing Lin Htun Pyoe Khin Thit
(Ayeyarwaddy)
√ √
12 U Andrew CNRWG (Chin)
13 U Saw Me Bway
Doh Htun
Hoo Phoo Kapaw
(Kayin)
√ √
14 U Myo Myint Oo Green Network
(Magway)
√ √ √
15 U Zaw Lwin Public Network (Bago) √ √ √
30	
	
Annex 2: MATA
Background Information of MATA
Myanmar Alliance for Transparency and Accountability (MATA) is a nation-wide network, consisting of
over 400 local civil society groups, think tank groups and interested individuals. Since its inception in 2012,
it has worked on advocating improved management of natural resource sectors, including greater public
involvement in natural resource management. MATA is the representative coalition from which the nine
civil society members on the MEITI MSG are derived. MATA was established in early 2013, growing out
of the civil society organizations engaged on EITI and broader resource governance related issues. Prior to
the current reform process, initiated in 2011, Myanmar had very strict limitations on the freedom of speech
and freedom of assembly, offering very little space for discussion or public debate on natural resource
issues. In this context MATA has come together timely fashion in order to coordinate and provide a
representative structure for CSO engagement in EITI, and engage on other resource related issues, including
the FLEGT initiative. However, MATA and its CSO members are all engaged in a steep learning curve,
given the very recent nature of their ability to legal organize, conduct debate, engage with media, and hold
discussions with Government. Most of the new initiatives and new comers are started engaging with MATA
as a member.
MATA’s structure includes 14 regional working groups, which are spreading across the country. There is a
National Coordination Office in Yangon, plus a regional office in Mandalay. MATA has plans as well to
open offices in each of the 14 states and regions. The MATA National Coordination Office serves as the
secretariat for CSO participation in the Myanmar EITI MSG. This includes convening CSO meetings,
generating meeting minutes, distribution of EITI related information, including minutes and results of MSG
and sub-committee meetings, and coordinating technical inputs to EITI related matters.
MATA’s Mission
 To advocate for transparency and accountability by government, elected representatives, companies,
donors and civil society.
 To promote the freedom of public participation in, and scrutiny of, Myanmar’s legal frameworks and
guidelines relating to resources.
MATA’s Objectives
 Advocate for transparency and accountability in the management of natural resources by Government,
private sector and civil society organizations.
 Raise awareness of the importance of transparency through education and training sessions
 Build partnerships with INGO, NGO, Government, CSOs and other stakeholders.
 Strengthen the capacity of CSO and communities to improve Natural Resources Governance.
 Increase freedom of information, monitoring mechanisms and the accessibility of data.
 Promote the freedom of CSO participation in Myanmar.

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Myanmar Extractive Industries Transparency Initiative (MEITI)

  • 1. 5/7/2017 Myanmar | Extractive Industries Transparency Initiative https://eiti.org/myanmar 1/11 EITI Status Yet to be assessed against the 2016 Standard EITI Member Since 2014 Latest Data From 2014 Website EITI Myanmar (http://myanmareiti.org/) Myanmar's natural resources include oil and gas, minerals and gems. The extractive sector accounted for 6% of GDP, 23.6% of State revenue and 38.5% of exports in 2013. It has proven oil reserves of 50 m barrels and proven gas reserves of 10 trillion cubic feet. The extractive sector is the second largest source of foreign direct investment and represent close to 40% of exports, with gas and gems being the two main revenue generating commodities. The Myanmar government's 12-point Economic Policy accentuates the strategic role of EITI in the reform process, speciড়cally in natural resource governance.  The EITI creates a platform for vibrant discussions on issues around resource sharing which is widely debated and central to the ongoing peace process. The EITI is also stimulating public debate and shedding light on lost revenues from the jade and gems sector. O৴cial revenues from gem stones sales in 2014 were estimated at US$3.4 bn, according to the ড়rst Myanmar EITI Report published in 2016. However, real ড়gures from other sources have been cited to range between US$9-US$30 bn. According to a World Bank study commissioned by Myanmar EITI in 2016,  it is estimated that 70-80% of gemstones produced in Myanmar are not declared and therefore bypass the formal system.  The ড়rst EITI Report disclosed that Future Myanmar EITI Reports will include royalties from jade and gems disclosed by both government and companies.  On this page Myanmar Overview
  • 2. 5/7/2017 Myanmar | Extractive Industries Transparency Initiative https://eiti.org/myanmar 2/11   Overview   News, blogs and more   Tax and legal framework   Beneড়cial ownership disclosure   Production   Innovations   Implementation   Validation   EITI Reports and other key document s   Contacts News, blogs and more
  • 4. 5/7/2017 Myanmar | Extractive Industries Transparency Initiative https://eiti.org/myanmar 4/11 Blog Opportunities for reforms at a time of transition From reports to reform State-participation: Myanmar (http://progrep.eiti.org/2016/contracts­licenses/state­participation­myanmar) News
  • 5. 5/7/2017 Myanmar | Extractive Industries Transparency Initiative https://eiti.org/myanmar 5/11 Myanmar has a Petroleum Law, a Mines Law and a Gemstone Law, but Production Sharing Contracts (PSC) typically govern all extractive projects. Contracts are conড়dential, but model oil and gas PSCs are disclosed by the Ministry of Energy. PSC holders and their legal owners are disclosed in their EITI Report. The main revenue streams in both the hydrocarbon and mining sector are production spilt, state-owned company entitlement, royalties and commercial tax/corporate income tax. State-owned companies collect 85% of the revenues from the extractive sector on behalf of the government. Tax revenues are collected by the Ministry of Finance. No revenues are collected by subnational governments.   Ministry of Mines: Laws and regulations (http://www.mining.gov.mm/LAWS/Default.asp) Ministry of Energy: Laws and regulations (http://www.energy.gov.mm/index.php/issues/laws) Institutional and regulatory assessment of the Extractive Industries in Myanmar (http://www­wds.worldbank.org/external/default/WDSContentServe r/WDSP/IB/2015/05/14/090224b082e8301a/1_0/Rendered/PDF/Executive0summary.pdf) Gilded gatekeepers: Myanmar’s state-owned oil, gas and mining enterprises (http://www.resourcegovernance.org/publications/gilded­gatekeepers­my anmars­state­owned­oil­gas­and­mining­enterprises) The shell starts to crack: Real owners of Myanmar’s oil and gas blocks come forward (https://www.globalwitness.org/en/reports/shell­starts­crack/) Myanmar lifts the veil on state-owned companies Tax and legal framework Myanmar's tax code Overview of tax laws and regulations (http://www.mo f.gov.mm/en/content/laws­and­regulations) Contracts in Myanmar Model Production Sharing Contract (PSC) (https://ww w.facebook.com/MinistryOfEnergy.Myanmar/photos/ms.c.eJw 1zMENADEIA8GOToAJxv03dkpCnqOVTWglq8qq3OLjdQtSAmPyOHLcEURwv d7ae6) License registry Registry of oil and gas contracts, mining permits and gems permits compiled as part of the 2013 EITI Report (excel ড়le) (https://eiti.org/sites/default/files/meiti_report_appendix_10_11_0.xlsx)
  • 6. 5/7/2017 Myanmar | Extractive Industries Transparency Initiative https://eiti.org/myanmar 6/11 Myanmar started work on beneড়cial ownership by mapping the corporate structure of the companies operating in the country. The 2013 EITI R eport  (https://eiti.org/report/myanmar/2013)includes the legal ownership of oil, gas and mining companies. More than 95 % of the extractive companies are Chinese, Myanmar or Thai. The report recommends to establish a public register of beneড়cial ownership. Global Witness has already documented the beneড়cial owners of many of the oil and gas companies  (https://www.globalwitness.org/en/campaigns/oil­gas­and­mining/mya nmar­oil­and­gas/)operating in the country. The MSG is currently discussing the publication of Myanmar's beneড়cial ownership roadmap to disclose real owners of extractive companies in the country.    Myanmar Beneড়cial Ownership Roadmap (https://eiti.org/document/myanmar­beneficial­ownership­roadmap) Natural resources and subnational governments in Myanmar: Key considerations for wealth sharing (http://www.asiafoundation.org/publications/ pdf/1367) EITI Myanmar week - Day 4 (https://eiti.org/blog/eiti­myanmar­week­day­four) Could natural resource revenue sharing help secure peace in Myanmar (http://www.resourcegovernance.org/news/blog/could­natural­resource­reven ue­sharing­help­secure­peace­myanmar) Although extractive industries contributed substantially to the rapid growth of the economy in recent years, we ha ve been facing many challenges in relation to social and environmental issues. In this regard, strong institutions, cl ear environmental regulations and governance, law enforcement and social safeguards are undoubtedly required, along with social, economic and environment factors to achieve sustainable development. Therefore, Myanmar ha s been trying to be an Extractive Industries Transparency Initiative-compliant country to ensure transparency and accountability in natural resources exploitation and ড়nancial management. Minister U Ohn Win, Ministry of Natural Resources and Environmental Conservation (https://www.oxfordbusinessgroup.com/interview/down­earth­u­ohn­winn­minister­natural­resources­and­environmental­conservation­environmental) Beneড়cial ownership disclosure Production
  • 7. 5/7/2017 Myanmar | Extractive Industries Transparency Initiative https://eiti.org/myanmar 7/11 Natural resources Myanmar has rich deposits of natural gas, petroleum, coal, copper, gemstones, precious and semi-precious stones, tin, tungsten, and zinc. Around 90% of the world’s supply of rubies are sourced from Myanmar and the country is also the world’s largest single source of Jade. Oil and gas is found both o৴shore and onshore. Mining occurs throughout the country with most of the jade deposits located in Kachin state. Commodity Reserves Unit Signi૴cance Oil 50 million barrels Gas 10 trillion Sm3 Second largest natural gas producer within South-East Asia 2013 EITI Report (https://eiti.org/files/meiti_reconciliation_report_2013­2014_final_version.pdf) USGS 2012 Minerals Yearbook: Burma (http://minerals.usgs.gov/minerals/pubs/country/2012/myb3­2012­bm.pdf) The EITI encourages multi-stakeholder groups to explore innovative approaches to make the EITI more relevant and useful. EITI subnational units have been established in Mandalay, Magway, Rakhine and Shan. The EITI Report discloses the cost of oil and gas sales to domestic reড়neries at subsidised prices. Governance Innovations Implementation
  • 8. 5/7/2017 Myanmar | Extractive Industries Transparency Initiative https://eiti.org/myanmar 8/11 On 19 December 2016, the Union Government formally appointed the Myanmar EITI Leading Committee composed of the Minister of Planning and Finance (MOPF) as Chair, the Minister of Natural Resources and Conservation and the Minister of Energy and Electricity as members, and the Deputy Minister of MOPF as Secretary.  The Renaissance Institute was appointed as the National Coordination O৴ce. Civil society is represented by nine members of the Myanmar Alliance for Transparency and Accountability (MATA), while industry is represented by members of the Myanmar Federation of Mining Associations (MFMA) and oil and gas companies. Government has seven representatives. The workplan is currently being drafted by the MSG and is expected to be approved by April 2017.  On 7 March 2017, the EITI International Board approved MEITI's request for extension of deadlines, setting 31 March 2018 as the deadline for the publication of the second EITI Report, and 1 July 2018 as the commncement date for their Validation.   Timeline  (https://eiti.org/sites/default/files/inline/image­timeline­myanmar _0.png)   Myanmar's Validation (http://eiti.org/validation) against the Standard (https://eiti.org/standard) will commence (https://eiti.org/document/validation­schedul e) on 1 July 2018. The country was admitted as EITI candidate in 2014. (https://eiti.org/countries­archive) Validation
  • 9. 5/7/2017 Myanmar | Extractive Industries Transparency Initiative https://eiti.org/myanmar 9/11 EITI Reports and other key documents Myanmar EITI Annual Progress Report 2015-2016 Published Date: November, 2016 Publisher: Myanmar EITI Read more 2013-2014 Myanmar EITI Report Published Date: November, 2015 Publisher: Myanmar EITI This EITI Report covers Myanmar's extractive sector in 2013 and 2014. It was published in December 2015.  Read more Myanmar EITI 2014-2015 Annual Progress Report Published Date: December, 2015 Publisher: Myanmar EITI This is the Myanmar EITI 2014-2015 Annual Progress Report (in accordance with Requirements 7.4 and 8.4). Read more Myanmar EITI scoping study Published Date: November, 2015 Publisher: Myanmar EITI
  • 10. 5/7/2017 Myanmar | Extractive Industries Transparency Initiative https://eiti.org/myanmar 10/11 View all documents related to Myanmar in our publications library (https://eiti.org/publications?search_api_views_fulltext=&field_doc_type_public=All& field_doc_country%5B%5D=MM&field_doc_publisher=&field_doc_published_date%5Bmonth%5D=&field_doc_published_date%5Byear%5D=&field_doc_published_da te_1%5Bmonth%5D=&field_doc_published_date_1%5Byear%5D=) International Secretariat Executive summaryMyanmar EITI has carried out a scoping study in order to set out the EITI reconciliation scope which will be used for the ড়rst Myanmar EITI report. This assignment is the ড়rst step and pre-condition to the reconciliation process. Objective of the missionThe objective of the report is to clearly deড়ne the scope of the EITI reconciliation exercise, the Reporting Templates, the data collection process and the working schedule, in accordance with the EITI Requirements (Version 2013) and objectives agreed by the EITI Committee. Read more Contacts Dyveke Rogan (http://twitter.com/@DyvekeRogan) dyveke.rogan Policy and Regional Director drogan@eiti.org EITI responsibilities: Support to EITI implementation and outreach in Asia.   Prior to joining the EITI in 2009, Dyveke worked for Xstrata Nickel in the Dominican Republic and at the Center for Development Studies at the University of Agder. Read more Marie Gay Alessandra Ordenes (http://twitter.com/@GigayOrdenes) alessandra.v.ordenes Regional Director gordenes@eiti.org
  • 11. 5/7/2017 Myanmar | Extractive Industries Transparency Initiative https://eiti.org/myanmar 11/11 EITI responsibilities: South East Asia and Asia Paciড়c Gay was the National Coordinator of  Philippine EITI before joining the International Secretariat. A lawyer by profession, Read more The global standard for the good governance of oil, gas and mineral resources. EITI International Secretariat Ruseløkkveien 26, 0251 Oslo, Norway +47 222 00 800 secretariat@eiti.org HOME MAP ABOUT NEWS PUBLICATIONS DATA GLOBAL CONFERENCE CONTACT US JOBS PRIVACY POLICY Content Use Policy Unless otherwise noted, you may republish our content for free. Please give credit to our source (for web, with direct link, for print with EITI International Secretariat, eiti.org).
  • 12. 5/7/2017 Opportunities for reforms at a time of transition | Extractive Industries Transparency Initiative https://eiti.org/blog/opportunities­for­reforms­at­time­of­transition 1/6 Apr 11, 2016 Gay Ordenes The expectations on the new government in Myanmar are high - the EITI provides a list of to-dos to improve transparency. All eyes are on Myanmar as it enters yet another period of transition. The country has seen many reforms in the past years, one of which is the implementation of the EITI since 2014. For a country that previously o៛�ered limited civic participation, EITI’s multi stakeholder platform fast became the venue for discussing reforms in the extractive sector. First EITI Report points to areas for improvements in the sector A landmark EITI Report was published in January 2016 disclosing valuable information on payments made by companies and surfacing gaps in existing systems that the government should address. This report could very well be used as a diagnostic tool for government in assessing areas where governance can be improved. How the EITI in Myanmar can leverage on the recommendations from its EITI Report is a challenge that the multi-stakeholder group (MSG) and the incoming government should take on.  Opportunities for reforms at a time of transition
  • 13. 5/7/2017 Opportunities for reforms at a time of transition | Extractive Industries Transparency Initiative https://eiti.org/blog/opportunities­for­reforms­at­time­of­transition 2/6 Transparency in public nancial systems Myanmar’s EITI (MEITI) Report revealed the extensive use of ‘other accounts’ in Myanmar’s budget system. The report explains that “Other Accounts used are essentially accounts held by ministries and SEEs (State Economic Enterprise) in the Myanmar Economic Bank (MEB) for management of their own-source revenues. FY2012/13 data from the Budget Department show total Other Account receipts of 2.54 trillion kyat (USD 2.4 billion) which is 44% of total budgeted revenue, and expenditures of 2.26 trillion kyat, which represents 28% of total budgeted expenditure. How these accounts are managed was not disclosed to the EITI which made it impossible for the Independent Administrator preparing the report to examine rules and practices governing transfers of funds between the SOE(s) and the state, retained earnings, reinvestment and third-party ៯�nancing. The report thus recommended the disclosure of more information on these “other accounts”. Moreover, there’s the issue of tracking sources of revenues. The MEITI Report mentions that the Union Budget does not have a line item for extractive sector revenues, making it di៝�cult to track revenue ៯�ows from the industry to the ministries and to determine its total contribution to national revenues. Based on the above ៯�nding, the report recommends improvements on the system of reporting and recording of disaggregated revenues from the extractive industry. The report further ៯�nds that the considerable delay from the time companies pay to the time the Internal Revenue Department issues receipts leads to discrepancies between government and company ៯�gures. It thus highlights the need for timely issuance of receipts for corporate income tax payments. The report also stresses the need to ensure reliability of ៯�nancial information from the government through the disclosure of reports from the O៝�ce of the Auditor General. All of these ៯�ndings are relevant to the incoming administration’s plan to create a transparent public ៯�nancial management system. The above recommendations could contribute to this reform by informing policy makers on the need and the means to revise tax administration and budget processes.  Informing public debate The EITI process can be a catalyst for deeper discussions on contract transparency and bene៯�cial ownership. As evidenced by the disclosures in the ៯�rst report, the MEITI MSG is using the EITI as a platform for sustained dialogue to discuss openly issues  previously shrouded in secrecy. The reporting process subjects data to further scrutiny that could hopefully lead to meaningful debates.
  • 14. 5/7/2017 Opportunities for reforms at a time of transition | Extractive Industries Transparency Initiative https://eiti.org/blog/opportunities­for­reforms­at­time­of­transition 3/6 One example is how the EITI provides the opportunity to compare government data with other sources.  For example, the sales data for gems and jade disclosed in the EITI Report (USD 1.4 billion) does not tally with other sources of data (USD 30.9 billion according to a Global Witness Report). The report recommends that data on gems and jade in future reports be not limited to sales made through the emporium but also include revenues from the government’s share of production collected by Myanmar Gem Enterprise as well as sales outside of the emporium. Another important piece of information disclosed in the report is about the state-owned enterprises, the extent of their participation in mining, oil and gas sectors and the transfers they make to the Ministry of Finance (MOF). This information should pave the way for the MEITI MSG to stimulate debate on issues surrounding SOEs including their incentives, how they manage their revenues and whether the revenues they collect from companies can be reconciled with the transfers they make to MOF. Although bene៯�cial owners of all privately held companies were not yet disclosed, the information on legal ownership is a good step forward enabling mapping of the corporate structure in the county. These disclosures are accompanied by a strong recommendation to raise awareness of the importance of bene៯�cial ownership and to develop a reporting format enabling bene៯�cial ownership disclosure in the future. Improving license processes and registers The MEITI Report examines Myanmar’s cadaster system and recommends that an online register be established that will includeinformation on coordinates of concessions and transfers of mineral rights, fees paid, and cadastre maps with details of licenses. According to the report,while the mining legislation lays down the criteria for the assessment of a permit application, the tendering process is not systematically followed in practice due to lack of geologic information and the presence of con៯�ict in most areas. This can be problematic for a country that seeks to create a favorable investment climate and has opened up its mining sector (except for precious stone mines) to full foreign ownership.   Myanmar’s new mining law is expected to attract more foreign investors. Among the salient provisions of this law are the relaxation of taxes imposed on investors and the lifting of prohibitions on small scale and medium enterprises to enter into joint ventures with foreign ៯�rms.  The law also lays down the terms of operation of foreign mining companies. The MEITI report’s ៯�ndings could input into the ongoing drafting of rules and regulations of the new mining law. The MEITI MSG can participate in and even facilitate consultations especially on issues where the report has identi៯�ed gaps in the licensing system and its potential impact on foreign investments.   Recent developments
  • 15. 5/7/2017 Opportunities for reforms at a time of transition | Extractive Industries Transparency Initiative https://eiti.org/blog/opportunities­for­reforms­at­time­of­transition 4/6 There are considerable expectations that the new administration will bring about a clear energy policy, and more broadly, a national strategy for the exploration of natural resources. In the same vein, the merger of the Ministry of Mines with the Ministry of Forestry to create the Ministry of Natural Resources could potentially result in a less fragmented regulatory process which could work well for the extractive sector. As for EITI in Myanmar, the challenge is how to align its e៛�orts with the priorities of the new administration and build on its progress in the current political context. Marie Gay Alessandra Ordenes is the Regional Director for South East Asia and Asia Paci c at the EITI International Secretariat. Before joining the Secretariat she was the EITI National Coordinator of Philippines EITI. To nd out more about the EITI in Myanmar, visit the country page on eiti.org or Myanmar’s EITI website (http://myanmareiti.org/).  The global standard for the good governance of oil, gas and mineral resources. EITI International Secretariat Ruseløkkveien 26, 0251 Oslo, Norway +47 222 00 800 secretariat@eiti.org HOME MAP ABOUT NEWS PUBLICATIONS DATA GLOBAL CONFERENCE CONTACT US JOBS PRIVACY POLICY Content Use Policy Unless otherwise noted, you may republish our content for free. Please give credit to our source (for web, with direct link, for print with EITI International Secretariat, eiti.org).
  • 16. 5/7/2017 State­participation: Myanmar | EITI Progress Report http://progrep.eiti.org/2016/contracts­licenses/state­participation­myanmar 1/2 State-participation: Myanmar Myanmar’s 2013-14 EITI Report documented that state-owned companies retain considerable amounts of revenue from the extractive sector. EITI Published 18.02.2016, 19:56 State-owned enterprises (SOEs) in Myanmar play a signi២�cant role in collecting revenues from the extractive sector. In the ២�nancial year April 2013 to March 2014, SOEs collected 85% of all extractive industry revenue through “other accounts”. According to the report, these “other accounts” are essentially accounts held by state-owned companies for the management of their own resources. SOEs use this revenue to pay corporate income tax (25% of pro២�t) and the state contribution (20% of pro២�t) to government budget accounts, after which the SOE is entitled to spend the remaining 55% of net revenue on raw materials and operating costs. For example, in 2013-14, state-owned Myanma Oil and Gas Enterprise (MOGE) retained USD 1.3 billion of the total USD 2.9 billion that the company collected on behalf of the state. The four state-owned mining companies collectively retained about USD 230 million. The report noted that “functioning modalities and use of these accounts were not provided. As a result we cannot provide explanation on rules and practices governing transfers of funds between the SOE(s) and the State, retained earnings, reinvestment and third-party ២�nancing as requested by Requirement 3.6 of the EITI Standard”. The 2013-14 EITI Report recommended that, in order to improve the transparency and comprehensiveness of the budgeting process, the Ministry of Finance should consider whether revenues collected by SOEs from the extractive sector could be rede២�ned as
  • 17. 5/7/2017 State­participation: Myanmar | EITI Progress Report http://progrep.eiti.org/2016/contracts­licenses/state­participation­myanmar 2/2 normal budgetary revenue and whether more information need to be disclosed with regards to “other accounts” in the budget. The report was released in January 2016. The government and Myanmar´s multi-stakeholder group has not yet had the opportunity to consider how to act on this recommendation.
  • 18. 5/7/2017 Myanmar lifts the veil on state­owned companies | Extractive Industries Transparency Initiative https://eiti.org/news/myanmar­lifts­veil­on­stateowned­companies 1/5 Jan 21, 2016 Dyveke Rogan EITI Report State-owned companies retain 49% of revenues according to ២�rst MEITI report   This EITI Report is not just a tool for transparency; it is a driving force for strengthening democratic process and building trust among stakeholders. Apart from that, the EITI Report enlightens us on how Myanmar can better improve natural resource governance and public ᡸnance management systems. H.E. Dr. Maung Maung Thein. Union Deputy Minister, Ministry of Finance and Revenue Myanmar lifts the veil on state-owned companies
  • 19. 5/7/2017 Myanmar lifts the veil on state­owned companies | Extractive Industries Transparency Initiative https://eiti.org/news/myanmar­lifts­veil­on­stateowned­companies 2/5  Myanmar published its ២�rst EITI Report on 2 January, opening up the extractive sector for the ២�rst time. The report shows that the government received a total of USD 3.1bn from the extractive sector. After having paid its taxes and other dues, Myanma Oil and Gas Enterprise (MOGE), the state-owned company, retained USD 1.3bn of this revenue for own operating costs and raw materials. The four state-owned mining companies collectively retained appx. USD 230m, illustrating the signi២�cant role that state-owned companies play in the country’s extractive sector.   The report covers ២�nancial year April 2013 to March 2014. “All over the world, national resource companies have been criticised for their opacity - and it is in such circumstances that resources are often mismanaged. Myanmar’s સrst EITI Report contributes to changing this reputation, and sheds important light on the role of such companies in managing the extractive sector. It is heartening to see how the government, companies and civil society have worked together determinedly for more openness and to create a better future for their country”, said EITI Chair Clare Short about the publication of the report. Figure – Allocation of revenues to SOE accounts and government accounts
  • 20. 5/7/2017 Myanmar lifts the veil on state­owned companies | Extractive Industries Transparency Initiative https://eiti.org/news/myanmar­lifts­veil­on­stateowned­companies 3/5 Source: MEITI Report for the period April 2013- March 2014, p.45.  According to the report, information on the functioning and use of these accounts held by state-owned companies was not provided to the ២�rm hired to produce the report.  Thus, the report recommends that in order to improve the transparency and comprehensiveness of the budgeting process, the Ministry of Finance should consider whether revenues from extractive sector collected by state-owned companies could be rede២�ned as normal budgetary revenue and whether more information need to be disclosed with regards to “other accounts” in the budget.   The report also documents the cost of oil and gas subsidies. MOGE sells some limited amounts of oil and gas domestically below market price. While amounts are small compared to what has been the practice in the region, it is estimated that the cost of the subsides amounted to USD 58m. 
  • 21. 5/7/2017 Myanmar lifts the veil on state­owned companies | Extractive Industries Transparency Initiative https://eiti.org/news/myanmar­lifts­veil­on­stateowned­companies 4/5 Conᢐicting data reaᢐrms need for reform While the oil and gas sector is Myanmar’s most developed extractive industry, the country is famous worldwide for its jade and gems. The report reconciles payments and revenues from the top 30 jade and gems companies.  Although the USD 400m in revenues from these companies is much lower than ២�gures reported elsewhere[1], the report explains some of the reasons for this, including the decision by MEITI to only use Myanmar Gems Emporium data for the purpose of this report, leaving out any taxes and payments made by companies that do not export their production through the emporium. In addition, revenues collected by the State from the sale of their share of gems and jade production have not been captured by the report.  The report also explains that the tendering process that is required for companies wishing to mine jade and gems is currently not applied.  Rather, permits are awarded on a ២�rst come ២�rst serve basis without applying speci២�c criteria. This is because most of the deposits are located in con២�ict zones and there is a lack of available geological data. Knowing who is extracting the oil, gas and minerals In 2013/14, Myanmar was in the spotlight as it launched its ២�rst ever competitive bidding processes for oil and gas rights, resulting in the award of 26 onshore and o៌�shore blocks to 24 companies.  Although some information on the two oil and gas bidding rounds has been disclosed, the report stops short of disclosing the bid criteria and whether the established procedure for allocating these blocks was followed.  Despite this, the report compiles for the ២�rst time a register of all oil and gas, mining and gems and jade license holders enabling stakeholders to see who is operating where, for how long and for what purpose. The legal owners of the extractive companies have also been reported, which is an important step towards disclosing the name of the people who own and control the companies operating in Myanmar, and ultimately pro២�t from their activities. Read the full Myanmar 2013/14 EITI Report (PDF) > For more information about extractives transparency in Myanmar, visit Myanmar’s EITI website. [1] The Myanmar Business Update (June 2015) states that according to the Chinese Customs, China imported USD 12.3bn of Jade and Gems in 2014;  A report by Global Witness (2015) estimated the production of jade in 2014 to be worth USD 30.9bn.  According to the MEITI report, the value of the gems and jade sold through the Myanmar Gems Emporium in 2014 amounted to USD 1.4bn. The global standard for the good governance of oil, gas and mineral resources.
  • 22. 5/7/2017 Myanmar lifts the veil on state­owned companies | Extractive Industries Transparency Initiative https://eiti.org/news/myanmar­lifts­veil­on­stateowned­companies 5/5 EITI International Secretariat Ruseløkkveien 26, 0251 Oslo, Norway +47 222 00 800 secretariat@eiti.org HOME MAP ABOUT NEWS PUBLICATIONS DATA GLOBAL CONFERENCE CONTACT US JOBS PRIVACY POLICY Content Use Policy Unless otherwise noted, you may republish our content for free. Please give credit to our source (for web, with direct link, for print with EITI International Secretariat, eiti.org).
  • 24. 2   Message of the Chairman of the MEITI-MSG First of all, I would like to express my sincere appreciation to the MSG members for their active participation throughout the process to delivering the functions of EITI implementation in Myanmar in order to improve fiscal transparency and accountability, and the revenue management system. As an EITI candidate country, Myanmar has published its first Myanmar EITI report which revealed findings related to the extractive sectors, especially revenue from the mining, oil and gas sector. Even though the first report could not cover the whole sector’s revenue, it was the first and significant achievement in such atmosphere where aforementioned information had been never shared to the public. In fact, it was the step to move forward to having transparency and accountability in the extractive sectors. Implementation of EITI is a continuous process. As the standards require, we remain committed to perform the tasks as planned in our country’s EITI work plan. This report highlights the efforts of our MSG and coordination team in achieving important priorities under the work plan. Currently, we have started drafting the 2nd MEITI report with the selection of Independent Administrators to reconcile the Government’s revenue and the extractive industries’ payment. No matter what challenges and difficulties prevailing, we sincerely believe that Myanmar EITI-MSG will be able to submit the report to international EITI within the stipulated time. U Maung Maung Win Interim-Chairman
  • 25. 3 1. General Assessment of Annual Performance After Myanmar’s application was approved and accepted as an EITI candidate country, it has prepared and submitted the First Country EITI report on the reconciliation of the Government’s revenue and the extractive industries’ payments. The table below illustrates the process which MEITI undertook to deliver the first Myanmar EITI report. Implementation Process Steps Implemented Status Select Independent Administrator and decide the scope of the report The technical sub-committee, with the support of International EITI, selected Moore Steven Team as the independent administrator. Develop reporting template and collect data Developed and explained the template to relevant stakeholders through a workshop Finalize draft report and receive feedback and recommendations from MSG and each constituency group Data collection process was completed on time with the support of various government departments’ representatives and selected private companies. The drafted report was finalized after incorporating feedback from all stakeholders and MSG in December 2015. Finalize and submit First Myanmar EITI report to International EITI First Myanmar EITI report was submitted to International EITI in January 2016. Launch of the Inaugural MEITI Report and Preparation for Broader Dissemination The implementation of EITI and fulfilling the EITI requirements is a continuous proess. The MEITI team launched the report with other stakeholder representatives in Yangon during mid- March 2016. The MSG representatives participated actively in the launch of the report, as well as panel sessions wehre they responded to questions from the audience, leading to greater clarity and understanding of the report. However, the implementation process faces uncertainty and challenges given the political transition, and that slowed down the implementation process stipulated by the work plan. Other challenges include the shortage of budget, and the team is stil awaiting the approval of the grant contract. The MSG sub-committee members are trying to maintain and define various possible ways to disseminate the report to the public through the media. At the same time, the coordination team is engaging with two regions where subnational coordination units are actively involved, to advocate and share information with new administrators and relevant key personnel to enhance the understanding of implementing EITI. Subnational units will also be assuming responsibilities such as disseminating information and recommendations from the report and initiating public discourse on the report. Preparation for 2nd MEITI Report It is the candidate country’s obligation to meet the EITI standards and Myanmar has to submit its 2nd EITI report by January 2017. The preparation for the 2nd report is one of the key activities under this year’s work plan. While waiting to sign the agreement for grant during the political
  • 26. 4 transition in April 2016, the MEITI coordination team moved forward through facilitating and coordinating with MSG representatives, especially subcommittee members, World Bank, and International EITI Secretariat office in preparing and developing the Terms of Reference (TOR) for IA and budget forecasting for procurement. It is still an ongoing process while MEITI is awaiting the Government’s commitment to fill the structural gaps of Leading authority- champion and MSG and sign the agreement as early in third quarter of 2016. MEITI National Secretariat The MEITI Coordination Team of CESD is currently the Secretariat, coordinating the implementation and information sharing amongst the MSG and constituency groups. Currently, it is handing over the function to the EITI unit under the Budget Department of Ministry of Finance (MOF). Both teams worked together in managing activities under the work plan during the period covered by this report. While the MOF team managed the MDTF fund of $290,000/-, it also worked on procurement and logistic for various events under the work plan in collaboration with MEITI Coordination team of CESD. Due to the difficulties in recruiting staff for the Secretariat team and the time needed to build required competency for key staff members of the MOF secretariat team, the handing over process has been longer than expected. Thus, it was extended to June 2016. Under such a situation, the combined team could manage and deliver the actions planned under the work plan up to December 2015 timely and tried to share human resource for managing those activities and preparation of first EITI report to be finished by timely by the end of December 2016. on the teams also organized regular team meetings among the MOF EITI Unit team, MEITI Coordination Team of CESD and World Bank up till February 2016. However, after facing uncertainties due to the political change and its impact on various Ministries’ functions, the meetings could not be conducted as usual. Therefore, both teams tried to maintain the momentum by organizing low cost subcommittee meetings. The Coordination Team also organized workshops on beneficial ownership, EITI implementation, and contract negotiation and transparency, with the respective support of partners – NRGI, Mongolia EITI, and GIZ. The Coordination team of CESD and the MOF secretariat discussed and prepared for the handover of administrative documents by the end of June 2016. As the coordination team of CESD depleted their own funds for managing day-to-day EITI coordination function, the CESD Team has committed to contribute their time on a voluntary basis as the MOF secretariat team still needs support for coordination and delivering the actions under the work plan Regular MSG Meetings There were a total of four MSG meetings during the reporting period. Through these MSG meetings, participants discussed on scoping study recommendation to be used for making decision for not only scope for first EITI report but also for the process implementation of preparation for first EITI report in working with Independent Administrator to deliver the actions and develop the report in timely. Even though the final product may not be as comprehensive as it is ideally expected, the commitment and support from the MSG and the Chairperson has enabled both members of the private and public sector to contribute the best possible information and data on revenue administration in the data template stipulated by the MSG. During the meetings, decisions were also made such that the budget and funds were use and managed effectively, particularly in the field of capacity building for various constituency groups. CSO representatives also actively participated and gave their feedback and inputs throughout the process of preparation for the first Myanmar EITI report. With the commitment and overwhelming support stemming from each constituency group, Myanmar achieved its milestone of implementing EITI by submitting its first EITI report timely. The MSG also discussed and delivered the subsequent steps of releasing the EITI report to the wider public, and tried conducting outreach and communication activities to initate public dialogue under the work plan of 2016 when they faced challenges stemming from the handover process and the committee change due to the outcomes of the 2015 election..
  • 27. 5 Regular MSG Sub-Committee Meetings From July 2015 to June 2016, there were more than 25 sub-committee meetings. The sub- committees are namely, Outreach and Communication sub-committee, Work plan and Governance sub-committee, and Technical sub-committee. Individual sub-committees effectively and actively discussed the relevant issues carried out their respective roles and responsibilities such that decisions can be made efficiently at MSG meetings and activities can be prioritized and implemented according to the work plan. . Working alongside one another has helped to build rapport and relationships that are extremely useful in facilitating cooperation between the constituency groups and consensus decision making. As there are numerous challenges for Myanmar to overcome in order to improve transparency and accountability, the MSG tries to manage the time constraint and existing limitations revolving the legal framework and , and promote and build better coordination and relationships among the three stakeholder groups. Such efforts were only possible given the open and flexible environment facilitated by the sub- committee meetings. Outreach, Communications and Capacity-Development Under this reporting period, the Sub-National Coordination Units (SNCU) was also initiated and started to implement as pilot project in Mandalay region where many gold mining projects are located, and Magway region where many small, medium and some major oil production projects are located. During the initial stage, the SNCU seems to be functioning well, but due to the representatives’ lack of understanding at the regional level, the functions were not carried out as quickly as expected. After key decision makers are changed after the November election in 2015, the CSO representatives who are selected as representatives for their respective regional sub- national coordination unit team tried to continue organizing meetings among SNCU members till today. For example, Magway SNCU group invited the National Coordination team representatives to present to the new Chief Minister of the region to help him understand the objectives of the SNCU and how it is related with the National MSG TOR, the work plan, and the existing problems and conflicts in their respective region’s extractive sector. And they also continuous in action of review and replace the three constituency groups representative with more committed and giving time for SNCU too. Mandalay SNCU is also trying to do the same and help the new Chief Minister of the region to better understand the role of SNCU through sharing the first EITI report and other relevant EITI documents and information with the new administrators. Individual constituency group’s capacity building was conducted through organizing specific trainings for Government, Private and CSOs using the findings from the training need assessment which was conducted by International EITI consultant during mid-2015. The topics covered under the capacity building trainings are: (1) Understanding EITI in broader context and the Importance of Reporting, (2) Facilitating and Communicating with Different Stakeholders, and (3) Basic Natural Resource Governance from the perspective of EITI. The SNCU also disseminated the first Myanmar EITI report broadly to other stakeholders from the three constituency groups and media to enhance their understanding on the report’s findings and recommendations that are to be implemented in the future as a continuous reform process. It also had the chance to share the EITI report with all Members of Parliament from Yangon Division and seek their actions to take on the recommended reform actions. The coordination team also followed up with the decision of the sub-committee to engage with the media. As it was discussed in May 2016, the coordination team hopes to share the first EITI report’s recommendations and finding with the public through platforms such as radio or TV programs, news outlet such as MRTV in August 2016. In order to continuously engage the International EITI, the MSG representatives and coordination team members, including the National Coordinator, participated in several International events organized by International EITI in collaboration with Philippines EITI, NRGI, and GIZ Mongolia, to enhance relationships and networks with regional countries that have implemented the EITI and possess relevant experiences to be applied in the context of Myanmar. Myanmar consequently also enjoys opportunities to learn from other countries’ experiences and thus, be
  • 28. 6 able to be better unleash the potential and manage existing risks through dialogue in these platforms. Participants in these events also had the chance to gain a deeper understanding of the EITI report, the reforms required, and the updated standards, which then can be communicated to respective constituency group members through the MSG meetings. Long-Term Funding for EITI The implementation of EITI is a continuous action for the country and it needs to have enough budget to implement activities under its work plan for the next three years for Myanmar to reach the level of a compliant country. It has discussed with development partners like DFID, DFAD, EU, and the World Bank, and it has also prepared the budget forecast by reflecting its work plan for the subsequent three years which was agreed by Development Partners, supported through the World Bank. Although MEITI prepared and did up the budget plan by the end of November 2015, the political change affected the plan as political appointments and leadership structure were affected by the transition, causing delay in the signing of the agreement between MOF and WB. This is still awaiting the Cabinet’s decision. As such, the implementation process of EITI in Myanmar to deliver the prioritised activities under the work plan since March 2016 was also delayed. Under such circumstances, the coordination team has being trying to maintain some functions such as organize workshops on beneficial ownership and contract negotiation and transparency with the budgetary support from NRGI and GIZ Mongolia for Myanmar MSG representatives and Mongolia EITI representatives. Thus, the coordination team and the MSG are trying to maintain the momentum by incurring minimal cost while it waits for the signing of agreement between the government and the World Bank. MEITI MSG and Civil Society’s Concerns Additional Inputs from CSOs: Successes: 1. Sub-committee meetings are conducted regularly and effectively even when the national level MSG meeting has stopped. 2. Similarly, Sub-National Coordination Units meetings in MDY and Magway are conducted regularly while the government members have not been officially appointed. 3. Civil society has built good relationship with the Ministry of Natural Resources and Environmental Conservation. They have organized and participated in mining monitoring trip together with CSO, regional and local governments, Department of Mines, and the private sector in January 2016. They are also planning to conduct a similar trip again in June-July 2016 in the Sagaing region. 4. CSO representatives - MSG-MEITI has organized a press conference regarding its position and stance on the first Myanmar EITI report in January 2016. 5. Due to the formation of Sub National Coordination Units in the Mandalay region, the situation of illegal mining has slightly improved as there is a better monitoring process and local responsive mechanism by three constituencies, and the SNCU members. 6. CSO has facilitated community research in Lapadaung copper mine and advocated Members of Parliament, regional government and the media to respond to the findings in June 2016. 7. CSO conducted an advocacy meeting with Members of Parliament in Natural Resources Committees in Ahmyothar and Phythu Hluttaw, Ministry of Natural Resources and Environmental Conservation, and regional governments in May 2016, highlighting the importance of implementing EITI recommendations to enhance transparency and accountability in natural resources governance in Myanmar.
  • 29. 7 Challenges: 1. There were no capacity development activities for MEITI-MSG apart from the workshop on beneficial ownership which was held in May 2016. 2. Although regular SNCU meetings were held at the regional level, there is a need for the SNCU to be more functional so that they can effectively respond to local issues and improve resources management in the regions. 3. CSO has submitted its recommendations (13 in total) upon the final draft version of Myanmar EITI report in the 12th MSG meeting which was held in Dec 2015; however, the first Myanmar EITI report has not covered and reflected them in their entirety. 4. MEITI-MSG has yet to conduct public debates in the regions regarding the first Myanmar EITI report, and has only launched the report in March 2016. 5. MDTF fund has been delayed because it has yet to receive the government’s official approval to implement MEITI activities according to the work plan. This is because there exists much bureaucratic red tapes between MEITI Secretariat team from CESD (Former MDRI) and the MOPF. 6. CSO has changed its representatives in November and December internally. Myanmar Alliance ob Transparency and Accountability (MATA) and CSO representatives have informed MEITI Secretariat with an official change of appointment letter; however, MEITI-Secretariat has yet to recognize the changes and they are still using the old CSO representatives’ names meetings, workshops or training invitations. Thus, the CSO-MSG representative feels that they have been discriminated against amongst other constituencies within the MEITI-MSG. 7. The official announcement to continue implementing the Myanmar EITI process has not been released yet. Therefore, there exists uncertainty in the continuation of MEITI implementation process. Recommendations to Improve Engagement and the Implementation of EITI in Myanmar from the Perspective of Relevant Constituencies First Myanmar EITI report is highly incomplete. However, the recommendations are strong. Nevertheless, there is little discussion on how to implement these recommendations amongst the MEITI-MSG members. CSO is also mainly concerned that the MEITI-MSG will produce the second Myanmar EITI report based on the weak points of the first report as mentioned below,  Approximately 50 percent of public money from oil, gas and mining are kept by state- owned economic enterprises (SEEs) in off-budget’s “Other Accounts.”  It is necessary to disseminate the information regarding the list of active oil, gas, gemstones and mineral licenses updated as of March 2014 so that these information can be publicly available.  The value of jade production and revenue generation should be disclosed as only 54 percent of the gemstone companies in the emporium,— a small fraction of the total industry -- was covered in the first Myanmar EITI report.  The revenues from the extractive industry should be reported on a project-by-project basis so that public can understand the sources of resource revenues and their respective owners, to monitor their performance in managing the projects in accordance with the standards.  Licensing procedures and allocation criteria has to be disclosed according to the EITI requirements to improve transparency and accountability.  Data on beneficial ownership has to be disclosed according to revised EITI standard in 2016.
  • 30. 8  Contracts and licenses’ terms should be disclosed despite the EITI guidelines ‘encourage’ disclosure. The lack of transparency and disclosure reduces stakeholders’ ability to monitor and enforce companies’ financial, operational and social obligation. Thus, CSO urged all MEITI-MSG to place emphasis on implementing the above-mentioned points to improve the transparency mechanism for better natural resources governance in Myanmar. As a first step to implement Myanmar first EITI report’s recommendations, the CSO would like the MEITI-Secretariat to follow up the decision stemming from the Outreach and Communication, Governance and Work plan sub-committee meeting, which was held on 3rd June: 1. As an advocacy group of the MEITI-MSG, one representative from MEITI-MSG will meet with EITI-related ministries in July 2016 to discuss what the ministries are doing regarding the recommendations. This is to better understand the challenges, strengths, and opportunities to move forward with the recommendations on revenue management to enhance resource governance in Myanmar. 2. In order to meaningfully implement the EITI process in Myanmar, CSO would like to recommend that more capacity building opportunities be offered on top of workshops and trainings. This entails offering all MEITI-MSG members (3 constituencies) opportunities to act as the facilitator in the meetings, discussions, workshops, etc. According to the consensus decision making practices within MSG members of EITI process, it is required that 3 constituencies have a sense of equal participation and non-discrimination without any impeding information sharing. 3. Although MEITI communication strategy has been drafted since late 2015, there is no major attempt to implement this strategy. The strategy entails outreach activities to raise public awareness on Myanmar’s EITI implementation process. Moreover, the communication mechanism is not properly worked out when the information is shared internally or externally. 4. Myanmar EITI-MSG is required to agree and develop the strategy vs work plan in accordance with Myanmar’s context to implement the MEITI process effectively and efficiently. 5. Finally, CSO would like to recommend developing an action plan to carry out the implementation of the first Myanmar EITI report’s recommendations by MEITI-MSG. Additional Input from Governments: (Still waiting while they are confusing and not clear their role) Additional Input from Privates: (Still waiting while they are preparing )
  • 31. 9 2. Assessment of performance against targets and activities set out in the workplan The MSG discussed and reviewed the Work plan’s objectives and activities after the MSG workshop for 2014-2015 Annual Activity Progress Report. It was revised with more clarification on the activities but it did not change the context of the work plan with the inputs of MSG member by the end of February 2016. The following is an assessment of progress against the activities in the Work plan, from July 2015 (when the Work plan was agreed by the MSG) until June 2016. Objective 1: Contribute to broader reform for resource governance Number Activity Status Time in WP Remark/ Summary of Progress from July 2014-July 2015 1.2.1 Carry out legal study to build on recommendations of legal review and the scope of the study Not achieved Mid 2017 This was discussed by the MSG at the time when the Work plan was finalized in April 2014, and was briefly discussed again at the MSG workshop in July 2015. It will be carried forward in the revised Work plan as an activity for the subsequent year. 1.2.2 Prepare for drafting of the EITI bill including consultation with legislators and other key stakeholders Not achieved Early 2017 This was discussed by the MSG at the time the Work plan was agreed to in April 2014 and was briefly discussed again by the MSG at the MSG workshop in July 2015. It will be included as an activity in the revised Work plan, based on the findings of the legal study. 1.2.3 Government EITI Coordination 1. Establish inter-departmental EITI working group under each key EITI- related ministry (EITI Special Units) 2. Review and strengthen existing governmental EITI coordination mechanism Partially achieved / Ongoing Mid 2014 and onward s Some ministries, e.g. Ministry of Mines, established an inter- departmental EITI working group. However, the Ministry of Energy, MOECAF and GAD have indicated that they may set up a working group. Ministry of Finance have not yet done so, but have established the EITI National Secretariat unit. However, the process is awaiting with the guidance and commitment of the new Government. The renewal of
  • 32. 10 commitment by the new Government can reduce the delay and confusion within the MSG structure, as it is currently fraught with uncertainty due to the change in government representatives. 1.2.4 MEITI Coordination Office/ Secretariat transition to Ministry of Finance (MDRI- MEITI team to work with Leading Authority to agree and implement step- by-step plan) Partially achieved / Ongoing Mid 2016 A plan was agreed with the Government EITI Leading Authority that the MDRI-CESD MEITI Coordination Office would slowly hand over responsibility of the National Secretariat function to a designated team in the Ministry of Finance. This could not implemented as planned in the late 2015. Due to not having enough staff members and the turnover of the department head, the plan of the handover process was pushed back to early 2016, and then the end of June 2016. The CESD MEITI Coordination Office continues to work as closely as possible with this team, although the handover process is completed in June 2016. It is therefore expected that the CESD team will need to continue to work with the team in the Ministry of Finance for the foreseeable future. 1.2.5 Identify and plan the support required for the government (central and regional offices) to understand and calculate: 1. regional/local extractive industries’ contribution to national economy and 2. production and export volumes and pricing Not achieved Mid 2014- 2015 The Independent Administrator’s Terms of Reference included an assessment of these requirements. It is anticipated that the Independent Administrator will make recommendations for improving and strengthening the government’s management and collation of such data moving forward. This activity is therefore carried over into next year’s Work plan. 1.2.6 Establish a centralised government register of licenses which covers both the national and sub-national levels Not achieved Mid 2016- 2019 This activity has been included in the Work plan by the MSG with the caveat that it is not strictly or normally an EITI issue, but that it was included to ensure alignment with EITI Requirement 3.9.
  • 33. 11 Discussions about establishing a minerals cadastre are now in place with MOM. This activity will therefore remain in the Work plan for 2016-2017, and there will also be a workshop at the end of 2015/early 2016 to identify and decide on the best options for Myanmar. 1.2.7 Carry out review of the illegal and artisanal and small scale mining (ASM) sector to understand potential contribution to national economy and estimation of production data Not achieved Late 2014 This activity was included in Moore Stephens TOR, and will therefore be carried forwards into next year based on the Independent Administrator’s recommendations. 1.2.8 Carry out review of the jade and gemstone sectors for other potential inclusion in scope of second MEITI report (If not effectively covered and/or included in scoping study and first EITI report) Achieve d Early 2016 In December 2014, the MSG agreed that the scope of the study would only include formal government data on jade and gemstones from the Gems Emporium. As such, the entire jade and gemstone sectors will not be wholly covered in the study or in the first MEITI report. There have been some discussion in the MSG regarding the options for producing this report and some preliminary data has been gathered. The MSG decided in June 2015 that the review should be carried out after the scoping study has been completed. 1.2.9 Government (including SOE) needs to identify its level of ownership in the sector In progress Mid 2014- 2017 There has been initial discussion during the government’s working committee meetings, especially on the available data for the scoping study’s preparation. There exists a need for continuous discussion amongst key stakeholders. This was also included in the Independent Administrator’s TORs and will be carried forward based on their recommendations
  • 34. 12 accordingly. 1.2.10 Government to review availability of EITI-related data among SOEs for disclosure in EITI report In progress Mid 2014- 2016 There has been initial discussion during the government working committee meetings, especially on the available data for the scoping study’s preparation. There exists a need for continuous discussion amongst key stakeholders. This was also included in the Independent Administrator’s TORs and will be carried forward based on their recommendations accordingly. 1.2.11 Government to review extractive industry-related sub-national practices, payments and revenues Partially achieved / on going Mid 2014- 2015 This was discussed in the MSG sub-committee and a representative of the Internal Revenue Department offered to organise a workshop to review extractive industry-related practices at the subnational level. It was organized in late 2015. This was included in the Independent Administrator’s TORs and will be carried forward based on their recommendations accordingly. 1.2.12 Carry out a study to map and identify levels of beneficial ownership in the extractive sectors in Myanmar (If not effectively covered and/or included in scoping study) Under discussio n End 2016 The MSG discussed this when agreeing to include it in the Work plan in April 2014. In March, a government representative from the Myanmar Investment Commission participated in a beneficial ownership workshop organised by the EITI International Secretariat in the UK. The issue of beneficial ownership was discussed briefly at the MSG workshop in July 2015. The oil and gas companies present indicated that they would not have a problem making their beneficial owners public and for this to be included on a public
  • 35. 13 register in Myanmar. It was noted that the mining company representatives were less comfortable with this suggestion. The Independent Administrator’s TOR for the scoping study requires them to propose a definition of beneficial ownership consistent with EITI requirement 3.11.d, and a mechanism for reporting and disclosure in accordance with EITI Requirements 3.11.a-b. 1.2.13 1. Government to agree procedure for disclosure of information related to the allocation of licenses 2. Disclose information about bidding process including list of applicants and the bid criteria (2013-2014) in line with EITI 2013 Standard Requirement 3.10 In Progress Late 2014- 2015 This activity, which focuses on MOGE and the disclosure of some data about the 2013-2014 bidding process, was briefly discussed in one or two MSG meetings and in some sub- committee meetings. The information was provided to the Independent Administrator for inclusion in their report. 1.2.14 MSG members will explore the methodology and the extent of contract disclosure and social expenditures In Progress 2014- 2015 Contract disclosure and social expenditures have been briefly discussed a few times, although not formally at a regular MSG meeting. At the MSG workshop in July 2015, there was some discussion about contract disclosure. The Independent Administrator’s TOR covers both of these issues in line with EITI Requirements 3.12 (b) and 4.1 (b). It is therefore expected that the MSG will address these issues more substantially once the Independent Administrator has completed their work. Objective 2: Create enabling environment for EITI Activity Activity Status Time in Remarks/Summary of Progress during 2014-2015
  • 36. 14 Number WP 2.1.1 1. Carry out Training Needs Assessment for MSG and key stakeholders 2. Design training plan, training manual materials etc. to include training of trainers (TOT) Achieve d Mid 2015 The draft training plan has been produced and the accompanying report was finalised and approved in early September. 2.2.1 Two or 3 training activities per year depending on training needs identified/training plan - for MSG members Achieve d/ ongoing End 2015- 2019 Several training activities were offered/delivered to MSG members throughout the year (although these took place before the training needs assessment had been carried out). 2.2.2 MSG Study Tour & Exchange visit to Mongolia Achieve d Late 2014 A group of MSG representatives was invited to Mongolia in November 2014 by GIZ to participate in a conference and meet Mongolian EITI representatives to share, learn and discuss EITI implementation. 2.2.3 MSG Study Tour & Exchange visit to the Philippines Achieve d Mid-late 2014 This took place later than originally anticipated, but was a very valuable experience for the MSG participants. 2.2.4 Government training and capacity development (as requested by government) 1. Basic natural resource governance training to EITI related (Union) ministries 2. Basic natural resource governance and EITI training to regional governments (especially from resource rich states and regions) 3. Advance Natural Resource Governance and Reporting Practice Training to MEITI Government, Working Group and Working Group/Focal Group from Each EITI Related Achieve d/Ongoin g Mid 2014- Onwards A range of EITI related training has been offered to key government ministries, including: - Introduction to EITI oMinistry of Mines oVarious other ministries including GAD and some parliamentarians - Natural Resource Governance o Ministry of Mines - Preparation for EITI Reporting oMinistry of Finance oVarious government departments
  • 37. 15 Government Agencies 4. Fiscal regime in EI related training 5. International accounting standard and project financing and evaluation training 2.2.5 Civil Society Organisation (CSOs) training and capacity development Training activities to be developed as per Training Needs Assessment Achieve d / Ongoing Mid 2014- 2016 A number of CSO training activities took place during the year are including –  Introduction to EITI  TOT for EITI Awareness  Natural Resource Governance  Contract Transparency In particular, NRGI is working closely with Myanmar CSOs to support them and build capacity to participate effectively in the EITI process. 2.2.6 Private Sector training and capacity development Training activities to be developed as per Training Needs Assessment Achieve d/Ongoin g Mid 2014- 2016 Prioritised training for the private sector will focus on supporting the reporting companies with the reporting process. However, some local level companies have participated in events related to outreach and raising awareness, especially in Mandalay and Magway where the two subnational coordination units have been established. There are plans to to organize two trainings for Private Sector with MFMA in Yangon and Mandalay by December 2015. 2.3.1 Legal Review Achieve d Late 2013- 2014 A legal consultant (Baker & McKenzie) was contracted by the World Bank in 2013 to carry out the legal review. The final report was produced in 2014. 2.3.2 Political Economy Study (Pre-scoping Study) Achieve d By mid 2014 Adam Smith International: ‘Institutional and Regulatory Assessment of the Extractive Industries in Myanmar’ was
  • 38. 16 finalised and published in 2015. Objective 3: Prepare and facilitate the process for implementing EITI Number Activity Status Time in WP Remarks/ Summary of Progress during 2014-2015 3.1.1 Prepare and secure World Bank Multi Donor Trust Fund (MDTF) funding until end 2015 Achieved A USD 290,000 grant to the Ministry of Finance from the World Bank-managed EITI MDTF provides funding until the end of 2015. This is complemented by Bank-executed activities, including financing of a technical adviser, a communications consultant, and a public financial management consultant, and the financing of the Scoping Study. The Bank-executed activities are also financed by the EITI MDTF. 3.1.2 Prepare and Secure DFID and/or alternative development partner for short- medium-long term funding In progress In principle agreement has been reached with the World Bank to provide a grant from Myanmar Partnership MDTF, with funding from DFID and perhaps DFAT. Grant development is underway. 3.1.3 Prepare and secure government contribution to EITI Under discussio n Onward Some preliminary discussion has been held with the government on the potential financial contribution to EITI. 3.1.4 Prepare and secure core funding for MEITI Coordination Office Achieved Given the need for ongoing MDRI MEITI team support to the EITI process and the Ministry of Finance, funding is being factored in to the revised 2016 – 2019 Work plan. 3.2.1 Hold MSG Meeting every two months Achieved / Ongoing Candidate Onward MSG meetings have been held regularly approximately every 2 months.
  • 39. 17 3.2.2 Establish MSG Sub-Committees, Taskforces, Supporting Committees or Monitoring Committees as necessary and hold Meetings accordingly Achieved / Ongoing Candidate Onward In July 2014 the MSG agreed to establish 3 sub- committees to support its work and with the mandate to work in more detail on key areas, on behalf of the MSG. The 3 sub-committees are:  Work plan and Governance  Technical and Reporting  Communications and Outreach The 3 sub-committees have met regularly during the year. 3.2.3 Procure reconciler firm to carry out detailed scoping study and prepare first MEITI report Achieved / Ongoing After MEITI Candidacy Applicatio n Approved The Independent Administrator was procured in June 2015. The MSG established a ‘Selection Committee’ to oversee and lead the selection process. 3.2.4 Scoping Study Achieved Early 2015 This activity was delayed to mid-late 2015. 3.2.5 1. MSG to agree scope and definition of materiality threshold for the first report based on the results of the scoping study 2. Reconciler to develop reporting templates with MSG in line with agreed scope 3. MSG to approve the reporting templates Achieved Based on scoping study, early 2015 This activity was delayed slightly. It is anticipated that the scoping study will be finalised in October 2015. The MSG has agreed on the scope and reporting templates accordingly. 3.2.6 Training on EITI reporting and templates for all Reporting Entities Achieved After scope agreed (2015) This was carried out by Moore Stephens, the Independent Administrator after the scope of the first report has been agreed. 3.2.7 Preparation and Production of MEITI report Achieved Jan 2016 Moore Stephens produced the first MEITI report. This began in October 2015. 3.2.8 Approve and Launch Of MEITI Report by Achieved After Once the draft report was finalised, and the MSG and key
  • 40. 18 MSG -Ongoing completio n of MEITI Report stakeholders have had the opportunity to give any feedback, the MSG formally approved the report. Once the final version had been approved it was officially launched. 3.3.1 Prepare for the 2nd Report including procurement of Reconciler and possible second scoping study Under process Early 2016-End 2016 The MSG will make a decision on this during 2016. 3.3.2 Production of 2nd MEITI Report Under discussio n 2016-2017 This will take place during 2016 (possibly 2017). 3.4.1 Engage in validation, review and approval of validation report Under discussio n By January 2017 Validation must take place by January 2017 (2.5 years after candidate status granted). Objective 4: Increase the accessibility of data (Communication and Information Sharing) Number Activity Status Time in WP Remarks/ Summary of Progress during 2014-2015 4.1 Widespread communication and dissemination of MEITI report, ensuring contribution to public debate including e.g.: - Press Release - (Media) Including TV, Radio, Print, events and activities Ongoing Early 2016-late 2106 It has been taking place once the EITI report is published and in line with the Communications Strategy. 4.2.1 MEITI Website (regular updating and maintenance) Ongoing 2014 and Ongoing A new Communications Officer was appointed in June 2015. The website is also now being revised and improved. It has been handed over to the MOF team by April 2015 and one staff who is assigned to undertake the role of
  • 41. 19 communications. 4.2.2 MEITI Secretariat to establish online and physical 'library' of EITI related information for EITI stakeholders (where the information is not publicly available, it should be approved by MSG) Ongoing Late 2014 - Onwards The MEITI office are collating numerous relevant and insightful documents/reports etc. which will be available for downloading from the MEITI website (in both Myanmar and English languages). This will also be covered in the Communications Strategy. 4.2.3 Develop MEITI communications plan/strategy Achieve d Late 2015 This activity was slightly delayed but was produced by the end of 2015. 4.2.4 Implement communications plan/strategy including e.g. information, education and communication materials, outreach events, workshops, seminars etc. Ongoing Late 2014 - Onwards In line with the MEITI Communications Strategy, a range of communications and outreach events and activities will held each year, including e.g.: - National EITI conference - Annual MSG workshop - Subnational coordination unit events - Outreach events and workshops 4.2.5 Possible Outreach Events to include: 1. Seminars and workshops (approx. 15) 2. National EITI Conference Ongoing 2014- 2016 Various outreach events were held during the year as follow  7 seminars with EITI introduction of regional level  8 trainings and workshops with Media and Government 4.2.6 Outreach events for each constituency group Partially Achieve d /Ongoing Mid 2014- 2016 Outreach events were held primarily for CSOs and government stakeholders during the year. 4.2.7 MSG to discuss and agree options for establishing regional CSO-government EITI Partially Achieve Late 2014 This activity became the MSG agreement, in December 2014, to establish the ‘pilot’ 4 subnational coordination
  • 42. 20 support groups - options for establishing groups followed up d Onward units. The agreed 4 states and regions were: Mandalay, Magway, Shan and Rakhine. By July 2015, two of these-- Mandalay and Magway -- had been successfully established. It is intended that the remaining 2 will be established as per the MSG decision later this year. 4.3.1 MSG to establish internal monitoring and evaluation mechanism e.g. MSG Monitoring and Evaluation Sub-Committee Not achieved Late 2016 Onwards The following activities all contribute to ongoing monitoring and evaluation of the EITI process: - CSOs as non-reporting entities, play monitoring and oversight role - The Annual Activity Report process - Regular Workplan and Governance Sub-Committee meetings i.e. the governance, institutions etc. of the EITI process. - The Validation process (for Myanmar this will begin by January 2017). Whether additional monitoring is still needed can be discussed by the MSG. 4.3.2 Post MEITI First Report Activities - - Evaluate and review first report process - Follow up MEITI Report recommendations - Carry out any research/ studies as necessary including CSO study using participatory action research methodology and PAME 2016 2016 Onwards Not applicable during this year 4.3.3 1. Carry out review of government financial data management system needs for effective EITI implementation (Consultant) 2. Consultant to develop the system based on the needs identified, and provide training Under process 2015- 2016 This activity will be carried based on the IA’s recommendations in the first MEITI report.
  • 43. 21 accordingly 4.3.4 MSG to review and revise the Workplan Achieve d March 2015 This was one of the key objectives of the MSG workshop in Pyin Oo Lwin in July 2015. The MSG Workplan and Governance Sub-Committee has met a few times to discuss the Workplan and budget. In particular, after the MSG workshop in July, there have been several meetings to review and revise the Workplan in time for the MSG’s approval in September. 4.3.5 MSG to review annual progress (Workplan), produce annual activity/progress report and send to International Secretariat Partially Achieve d February 2016- July 2016 The main objective of the MSG Workshop in Pyin Oo Lwin in July 2015 was to review annual progress against the Work plan and prepare for the Annual Activity Report. However, as this was not possible, the process of preparing the Annual Activity Report was slightly delayed.
  • 44. 22 3. Assessment of performance against EITI requirements During the course of the year (from July 2015 to June 2016), the MSG had 4 meetings, and there were meetings of each sub-committee at least once in between MSG meetings. In preparation for the Independent Administrator’s TORs for 2nd EITI report, which was substantially discussed by the MSG Technical and Reporting Sub-Committee, the committee ensured that each of the EITI Requirements would be covered in the scope of the IA’s work. Even though this is the second year of EITI implementation for Myanmar, progress in meeting specific requirements in the Standard has been limited given the time constraint and the changing Government structure. Thus, the second report would have its scope extended and additional sections. However, while the first report is completed timely and contains useful recommendations, it is difficult to hold regular meetings to enforce the implementation of reform measures due to the impact of political change and its consequent structural change in the Government’s Ministries. Even though the EITI Requirements per se were not formally discussed in MSG meetings in 2016, they are all included in the Work plan and also in the Independent Administrator’s TOR. The MSG will be able to discuss them more systematically during and after the Independent Administrator has designated their tasks for the second report. Beneficial ownership (3.11) Even the workshop on Understanding Beneficial Ownership was organized in early June, there is still the need for continuous discussion on of the definition of BO by Myanmar EITI. This component in the work plan is delayed and will be postponed to late 2016. Contracts (3.12) Due to the uncertainties within the MSG caused by the changes in political appointments within the Ministries, the component of contract transparency could not move forward as planned. It was also difficult to build a broader understanding on existing practices and cover topics under the contractdespite the drafts by both parties in the public and private sectors. are following the same legal framework.
  • 45. 23 4. Overview of the Multi-Stakeholder Group’s Responses to the Recommendations from Reconciliation and Validation, if applicable Under the process of preparation by MSG sub-committee, it has been decided that separate meetings with respective Government departments’ key staff members will be conducted to allow them to have an understanding on the report’s recommendations and how they can be integrated in their existing development and reform plans. Due to the political change, Myanmar administrative structure are also relatively fluid given that some ministries are merging and Ministerial appointments are filled with new members. Advocacy on the report’s recommendation and the implementation will be prioritized in the next six months of 2016. 5. Any specific strengths or weaknesses identified in the EITI process Strengths Coordination Under the reporting period, coordination among three constituency groups is continuously improved and having dialogue for better improvement of policy reform and issue management between Government and CSOs representatives like having meeting with Mining for some issues related mining in region. Participation of sub committee members is functioning well even there was some changes in focal for sub com member from the side of Government and CSOs, was not impact in the coordination for moving forward the action. It was also organized regular internal team meeting among CESD coordination team, MOF secretariat Team and WB focal persons monthly until early 2016. It’s also build the effective dialogue and making decision for delivering the activities under work plan and prioritise activity in line with requirements and time frame. Debate and Adaptation to Context As a continuous action of developing the TOR for IA and the preparation plan for the first EITI report, debates on the scope, reporting template, including the number of companies based on their revenue payment to Government took place and the follow sectors are decided by scoping study:  Oil and Gas  Mining (including jade and gemstones but only formal government’s Gem Emporium data) Even though the MSG agreed that a separate feasibility study to determine the inclusion of the hydropower sector into the EITI process should also be carried out in time for the second MEITI report in its first annual progress report, the dialogue at sub-committee meetings also pushed for the inclusion of the fishery sector. While the MSG mechanism is slowed down, it is still maintaining dialogue and discussion through sub-committee meetings to discuss the preparation of the IA’s TOR. Increased Dialogue In terms of increasing engagement with stakeholders, the MEITI process led to civil society representatives entering into a regular, open dialogue and relationship with key ministries. For example, as a result of discussions in the MSG, CSOs and Ministry of Mines representatives are now meeting on a regular basis. It is also set up mechanism of having regular dialogue and meeting among three stakeholders representatives at two pilot regions where SNCU set up as pilot.
  • 46. 24 Outreach, Inclusion and Capacity Development There were considerable efforts to build awareness and capacity of MEITI stakeholders throughout the year. This includes numerous training sessions for all key stakeholder groups, including some not directly involved in the MEITI process such as the media and parliamentarians. There were also numerous outreach events at the subnational level in several states and regions. Most of them were organised collaboratively by MATA and CESD MEITI Coordination Office to raise awareness in communities. At times, MATA CSO coalition and some government support are involved. It was also organized trainings related technical knowledge building for three stakeholders and some skill required for constituency groups to do better coordination and delivering the action effectively in facilitative approach by the late 2015 in collaborate with NRGI and with some external International experts for facilitation and communication sill. By the end of 2015, some trainings were organized for the three types of stakeholders in terms of technical knowledge build up, and constituency groups were also offered opportunities to develop coordination, communication, and facilitation skills. These were conducted in collaboration with NRG and various external international experts. Positive Reflections The first Multi Donor Trust Fund for implementing EITI in Myanmar was depleted by the end of 2015 and due to the delay of signing the grant agreement caused by the political change, MSG members have been trying to maintain the momentum and contribute their time on low-cost deliverables while attempting to find the collective solution to meet the EITI requirements and standards. to support better reform of the accountability and transparency practice and mechanism in Myanmar under the critical change of political situation when Government representatives are unclear for their role and participation in EITI. Weaknesses Myanmar tried to implement EITI and overcome some challenges to improve coordination among the three groups who lack trust in one another. After the first EITI report has been developed, Myanmar is preparing for the second report to be submitted timely in early 2017 while ensuring to carry out the recommendations from the first report. Limitation . Build a balanced tripartite understanding and confidence towards the building of a developed nation while ensuring good governance and transparency; · Regular verbal communication between different interest groups is necessary to improve more strategic communication through the MEITI communication channel. · Have expectation of being a member of MSG, become a member after overcoming obstacles, need to gain benefits for the general public; · Mixed results: While there is some improvement, there were unpleasant occurrences at the ground level., Some examples are the Lapadaung case in Sagaing Region ,Pin Pat Mining in Shan State, Ta Gaung Taung Nikle Mining in Sagaing Region, etc. · Establish good relations with the government, companies, and CSO. However, CSO still
  • 47. 25 feels that there is a difference between champion and MSG member in reality. · There are many challenges ahead in the action plan and the work plan for the next year to agree upon consensus practices. - After political change takes place, new leaders are trying to manage and improve various sectors. As they place more focus on building peac , EITI was less prioritized. - The change in leadership and ministerial appointments made existing MSG structure uncertain as Government representatives are unclear of their participation and state of involvement. Poor Data Quality It was covered under the recommendation from the first EITI report. Ideal data collection could not be implemented as the key practitioners involved with the data management do not have a clear understanding on the importance ensuring good data quality. It could not link and collaborate between development of quality data in Ministry with the support of other development agency, have being implementing process and EITI data quality requirement. Institutional Culture and Paradigm Shift After the 2015 November election, the change in the country’s authority and resulting bureaucrati change often hamper progress in EITI implementation. This ranges from simple meeting requests (which often require various levels of authorisation, approval and procedure), to disclosing agreed data/information for the purpose of EITI reporting (which, in this first year of reporting, has presented a significant challenge). As the government reforms slowly continue, and people become increasingly familiar with the EITI process over time, we hope that these constraints will be reduced and the systems involved will improve. Therefore, the transition to greater transparency and open operating environment– in line with the spirit of EITI – is likely to necessitate a major paradigm shift that will probably need more time. Institutionalisation The National Secretariat in the Ministry of Finance was supposed to be firmly established during the course of the year, with the aim of being fully functional by the end of 2015. However, due to various challenges during the year, the MDRI-CESD MEITI Coordination Office team continues to play the lead role of the National Secretariat function, with some part-time participation from the MOF EITI team. The MDRI-CESD MEITI Coordination Office team has made clear the importance of assigning full time MOF staff to EITI activities. The aim is to have a fully functioning MEITI National Secretariat team based in the Ministry of Finance who effectively supports the MSG as required. In practice, it was difficult to collaborate between two teams as the CESD MEITI is based in Yangon while the MOF EITI is based in Nay Pyi Taw., The difference in locations also delayed the hand over process and thus, it was extended to the end of June 2016. Expectations Human rights-related concerns and grievances have been brought into EITI MSG discussions repeatedly during the year, even though EITI as a process is not equipped or intended to capture these issues. It is therefore very clear that there is a strong need in Myanmar for other fora in which human rights-related issues and concerns can be properly addressed. This could include, for example, corporate grievance mechanisms, a credible and responsive human rights commission, and the general strengthening and implementation of the Rule of Law.
  • 48. 26 5. Total Costs of Implementation Costs for implementation were divided during 2014-2015 as follows: Executing Agency Beneficiary Budget DFID Accountable Grant ‘for Strategic Coordination of EITI in Myanmar’ CESD Effective EITI implementation for the benefit of the people and government of Myanmar July 2014 - February 2016: USD 331,318 Extension up to June 2016- USD DFID Externally Funded Output (EFO) World Bank Overall support for effective EITI implementation May 2013 – May 2015: USD 599,600 World Bank Global EITI Multi Donor Trust Fund (Global EITI MDTF) Ministry of Finance MEITI Secretariat / World Bank MEITI Work plan implementation 2014- December 2015: USD 290,000 plus Bank- executed technical assistance World Bank Myanmar Partnership Multi Donor Trust Fund (MP-MDTF) Ministry of Finance MEITI Secretariat / World Bank MEITI Work plan implementation From January 2016 until 2019 (4 years? subject to MSG decision) ‐ USD 3.5 million (approx. to fund entire Workplan) (under the process of signing agreement)
  • 49. 27 5. Any Additional Comments 6. Has this Activity Report been Discussed Beyond the MSG? Due to the limitation of a lack of budget, the coordination team has provided a general timeframe for individual constituency group representative to collect various information in order to prepare the annual report. At the same time, the coordination team prepared the draft annual report which is shared with MSG representatives for their inputs and recommendation, hoping to receive the inputs and concerns by 24th June. However, there was not enough time for each constituency group representatives to respond and Government representatives are not sure of their own involvement in the MSG. The representatives from the private sector is also concerned about the MSG structure and has been relatively slow in responding to the coordination team. Therefore, the coordination team is trying to submit this draft report to the International EITI and trying to get each constituency group’s recommendation and contribution in the meantime. After drafted the report to be shared to International EITI on 3rd July 2016, MEITI secretariat team continue to contribute this draft report among MSG and request their feedback and comments on it by giving time until by the 2nd week of August 2016. And then accepted no reply and comments from MSG, mean they all are agreed on it and then finalized this report to be shared to International EITI and share to wider public through MEITI Web site. 7. Details of Membership of the MSG During the Period (including details of the number of meetings held and attendance record) Please see table in Annex 1 Approved by MSG: ------------------------------------------------------------------------------------------------------- - Date: ------------------------------------------------------------------------------------------------------- -
  • 50. 28 Annex 1: List of MSG members, and attendance at MSG meetings No Name Organization MSG Meetings in 2015/2016 Remark Tenth Eleventh Twelfth Thirteen 1 Chair MoF √ √ 2 Vice-Chair MoE √ Government Representatives 1 U Tin Myint GAD/MoHA √ Become MSG Representative on 12th MSG Meeting 2 Dr Nyi Nyi Kyaw MoECAF √ √ √ 3 U Myo Mynt Oo MOGE 4 U Win Htein MoM √ √ √ 5 U Min Htut MoF 6 Daw Khin Aye Swe AGO √ √ √ Government Alternates 7 U Ye Naing GAD/MoHA √ √ √ 8 Thura U Htin Kyaw Moe MoF √ √ √ √ 9 U Kyaw Thet MoM √ √ 10 U Than Htay Aung MOGE √ √ √ √ 11 U Nanda Win Aung MoECAF √ √ √ √ Private Sector Representatives 1 Mr Xiaver Preel Total E & P Myanmar 2 Mr Terence J. Howe MPRL E & P Myanmar 3 Mr Li Hongyuan CNMC Nickel Co. Ltd. √ √ √ 4 Mr Chen Kah Seong PC Hong Kong √ √ 5 Mr Song Huai Yin Goldpetrol Joint Operation Company Inc. √ 6 U Aye Lwin MFMA √ √ Private Sector Alternates 7 Mr Bertrand Brun Total E & P Myanmar √ √ √ √ 8 U Andy Tin Win PC Hong Kong √ √ √ √ 9 U Aye Thwin Goldpetrol Joint √ √ √ √
  • 51. 29 No Name Organization MSG Meetings in 2015/2016 Remark Tenth Eleventh Twelfth Thirteen Operation Company Inc. 10 Daw Kyisin H Aung MPRL E & P Myanmar √ √ 11 U Khin Maung Han MFMA √ √ √ √ Civil Society Representatives 1 U ALex KESAN 2 U Win Myo Thu Eco/Dev √ 3 Dr Kyaw Thu Paung Ku √ √ √ √ 4 U Ye Thein Oo √ √ √ √ Become MSG Representative on 12th MSG Meeting 5 Daw Su Hlaign Myint GBP (Sagaing) √ √ √ Become MSG Representative on 12th MSG Meeting 6 U Khaing Kaung San Wun Lat Development Foundation √ √ √ √ 7 U Mung Dan TANK (Kachin) √ Become MSG Representative on 13th MSG Meeting 8 U Thant Zin DDA √ √ 9 Moe Moe Tun Green Trust (Pyin Oo Lwin) √ √ √ √ Civil Society Alternates 10 U Moe Myo Sat Thit (Shan) √ 11 U Naing Lin Htun Pyoe Khin Thit (Ayeyarwaddy) √ √ 12 U Andrew CNRWG (Chin) 13 U Saw Me Bway Doh Htun Hoo Phoo Kapaw (Kayin) √ √ 14 U Myo Myint Oo Green Network (Magway) √ √ √ 15 U Zaw Lwin Public Network (Bago) √ √ √
  • 52. 30 Annex 2: MATA Background Information of MATA Myanmar Alliance for Transparency and Accountability (MATA) is a nation-wide network, consisting of over 400 local civil society groups, think tank groups and interested individuals. Since its inception in 2012, it has worked on advocating improved management of natural resource sectors, including greater public involvement in natural resource management. MATA is the representative coalition from which the nine civil society members on the MEITI MSG are derived. MATA was established in early 2013, growing out of the civil society organizations engaged on EITI and broader resource governance related issues. Prior to the current reform process, initiated in 2011, Myanmar had very strict limitations on the freedom of speech and freedom of assembly, offering very little space for discussion or public debate on natural resource issues. In this context MATA has come together timely fashion in order to coordinate and provide a representative structure for CSO engagement in EITI, and engage on other resource related issues, including the FLEGT initiative. However, MATA and its CSO members are all engaged in a steep learning curve, given the very recent nature of their ability to legal organize, conduct debate, engage with media, and hold discussions with Government. Most of the new initiatives and new comers are started engaging with MATA as a member. MATA’s structure includes 14 regional working groups, which are spreading across the country. There is a National Coordination Office in Yangon, plus a regional office in Mandalay. MATA has plans as well to open offices in each of the 14 states and regions. The MATA National Coordination Office serves as the secretariat for CSO participation in the Myanmar EITI MSG. This includes convening CSO meetings, generating meeting minutes, distribution of EITI related information, including minutes and results of MSG and sub-committee meetings, and coordinating technical inputs to EITI related matters. MATA’s Mission  To advocate for transparency and accountability by government, elected representatives, companies, donors and civil society.  To promote the freedom of public participation in, and scrutiny of, Myanmar’s legal frameworks and guidelines relating to resources. MATA’s Objectives  Advocate for transparency and accountability in the management of natural resources by Government, private sector and civil society organizations.  Raise awareness of the importance of transparency through education and training sessions  Build partnerships with INGO, NGO, Government, CSOs and other stakeholders.  Strengthen the capacity of CSO and communities to improve Natural Resources Governance.  Increase freedom of information, monitoring mechanisms and the accessibility of data.  Promote the freedom of CSO participation in Myanmar.