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Philippines

Implement EITI (PH0061)

Overview

At-a-Glance

Action Plan: Philippines Action Plan 2019-2021

Action Plan Cycle: 2019

Status: Active

Institutions

Lead Institution: Department of Finance (DOF) Department of Environment and Natural Resources (DENR) Department of Budget and Management (DBM) Department of Energy (DOE) Department of the Interior and Local Government (DILG) Union of Local Authorities of the Philippines (ULAP) Mining Industry Coordinating Council (MICC)

Support Institution(s): Department of Budget and Management (DBM) Department of Energy (DOE) Department of the Interior and Local Government (DILG) Union of Local Authorities of the Philippines (ULAP) Mining Industry Coordinating Council (MICC)

Policy Areas

Access to Information, Anti-Corruption, Beneficial Ownership, Capacity Building, E-Government, Environment and Climate, Extractive Industries, Gender, Legislation & Regulation, Legislative, Marginalized Communities, Open Data, Private Sector, Public Procurement, Sustainable Development Goals

IRM Review

IRM Report: Pending IRM Review

Starred: Pending IRM Review

Early Results: Pending IRM Review

Design i

Verifiable: Pending IRM Review

Relevant to OGP Values: Pending IRM Review

Potential Impact: Pending IRM Review

Implementation i

Completion: Pending IRM Review

Description

What is the problem the commitment addresses?

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

More specifically, PH-EITI has sought to address the following issues in natural resource management, among others:
● Need for more transparency and accountability in the extractive industries;
● Lack of understanding on how the extractive industries work;
● Lack of or conflicting data on the taxes and other amounts paid or contributed by extractive companies and collected by the government (both national and local) as well as on the benefits received by communities from extractive activities; and
● Conflict/tension between and among stakeholders

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

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

What is the commitment?

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

Mainstreaming EITI entails the creation and issuance of policies, and development of web-based systems that will effect systematic disclosure (to replace traditional publication) of data and information about the extractive industries in the country (mining and oil and gas). Extractives data include requirements under the 2019 EITI Standard such as contract transparency, company payments to government, beneficial ownership, and data on environment and gender, among others.

In addition, mainstreaming seeks to enhance the role and sustain the operations and activities (data analyses, research, creation of policy recommendations, outreach, and communications) of the Multi-stakeholder Group.

On Systematic disclosure and mainstreaming:
It must be noted that the EITI has a robust yet flexible methodology for disclosing company payments and government revenues from oil, gas and mining as well as other information about the extractive sector such as information about the legal framework and fiscal regime, licensing practices, state-owned companies, production, exports, etc. Each implementing country creates its own EITI process adapted to the specific needs of the country. This involves defining the scope of information to be published and exploring how disclosure of information about the extractive sector can be integrated into government and company portals to complement and strengthen wider efforts to improve extractive sector governance.

To date, most of the information required by the EITI Standard to be disclosed has been collected and made public through EITI Reports. At the EITI Board meeting in February 2018, the EITI Board agreed on a set of recommendations regarding encouraging systematic disclosure. The EITI Standard enables implementing countries to disclose the information required by the EITI Standard through routine government and corporate reporting systems such as websites, annual reports, etc. The EITI Board agreed that “systematic disclosure should be firmly established as the default expectation, with EITI Reports used to address any gaps and concerns about data quality. Implementing countries could still continue to publish annual EITI reports collating and analyzing information from primary sources in order to make this information more accessible and comprehensible, especially for stakeholders that do not have access to online information”.

Systematic disclosure means that EITI’s disclosure requirements are met through routine and publicly available company and government reporting. This could include enabling access to EITI data through public financial reporting, annual company or government agency reports, information portals, and other open data and freedom of information initiatives. A key concern will be ensuring that the published data is comprehensive and reliable.

This should include an explanation of the underlying audit and assurance procedures that the data has been subject to, with public access to the supporting documentation. Mainstreaming refers to the process for realizing this goal, which may include interim measures, pilots, and other capacity building activities.

See Action Plan for milestone acitivities


Commitments

  1. Citizen Participation in Local Government

    PH0056, 2019, Capacity Building

  2. Participation in Local Tourism Development

    PH0057, 2019, Capacity Building

  3. Basic Education Inputs Program

    PH0058, 2019, Capacity Building

  4. Open Data Portal

    PH0059, 2019, Access to Information

  5. Participatory Monitoring of Infrastructure Projects

    PH0060, 2019, Capacity Building

  6. Implement EITI

    PH0061, 2019, Access to Information

  7. Passage of Freedom of Information Law

    PH0062, 2019, Access to Information

  8. Labor Inclusivity and Dispute Resolution

    PH0063, 2019, Access to Justice

  9. Participatory Children's Health and Nutrition Program

    PH0064, 2019, Gender

  10. Indigenous Representation in Local Legislative Councils

    PH0065, 2019, E-Government

  11. Open Contracting Data Publication

    PH0066, 2019, Access to Information

  12. Civil Society Participation to Improve LGU Service Delivery

    PH0042, 2017, Access to Information

  13. Engage Communities in the Fight Against Corruption, Criminality and Illegal Drugs

    PH0043, 2017, Capacity Building

  14. Ease of Doing Business:Competitiveness

    PH0044, 2017, Legislation & Regulation

  15. Ease of Doing Business: Philippines’ Anti-Red Tape Challenge)

    PH0045, 2017, Capacity Building

  16. Citizen Participatory Audit)

    PH0046, 2017, Anti-Corruption

  17. 8888 Citizens’ Complaint Center

    PH0047, 2017, Public Participation

  18. Government Feedback Mechanism

    PH0048, 2017, Capacity Building

  19. Access to Information Legislation

    PH0049, 2017, Access to Information

  20. e-Participation Through the National Government Portal

    PH0050, 2017, Access to Information

  21. Open Budget Index and Budget Reform Bill

    PH0051, 2017, Access to Information

  22. Philippine Extractive Industries Transparency Initiative

    PH0052, 2017, Anti-Corruption

  23. Institutional Mechanisms for Disaster Response

    PH0053, 2017, Access to Information

  24. Shelter Development for Informal Settler Families

    PH0054, 2017, Access to Information

  25. Open Local Legislative Processes

    PH0055, 2017, E-Government

  26. Law on ATI

    PH0029, 2015, Access to Information

  27. Transparency of Local Govs Plans and Budgets

    PH0030, 2015, Fiscal Openness

  28. Open Data

    PH0031, 2015, Access to Information

  29. Extractive Industries' Transparency

    PH0032, 2015, Anti-Corruption

  30. CSO Engagement in Public Audit

    PH0033, 2015, Social Accountability Measures & Feedback Loops

  31. Civic Enagement in Local Budget Planning

    PH0034, 2015, Fiscal Openness

  32. Civic Enagement in Local Budget Planning – Community Capacity-Building

    PH0035, 2015, Capacity Building

  33. Improving Public Service Delivery

    PH0036, 2015, Public Participation

  34. Improving Local Govs' Performance

    PH0037, 2015, Capacity Building

  35. Improve the Ease of Doing Business

    PH0038, 2015, Private Sector

  36. Local Government Competitiveness

    PH0039, 2015, Access to Information

  37. Public and Private Sector Dialogue

    PH0040, 2015, Private Sector

  38. Improving Corporate Accountability

    PH0041, 2015, Private Sector

  39. Sustain Transparency in National Government Plans and Budgets

    PH0020, 2013, E-Government

  40. Support for the Passage of Legislations on Access to Information and Protection of Whistleblowers

    PH0021, 2013, Access to Information

  41. Engage Civil Society in Public Audit

    PH0022, 2013, Public Participation

  42. Enhance Performance Benchmarks for Local Governance

    PH0023, 2013, Capacity Building

  43. Enhance the Government Procurement System

    PH0024, 2013, Anti-Corruption

  44. Strengthen Grassroots Participation in Local Planning and Budgeting

    PH0025, 2013, Fiscal Openness

  45. Provide More Accessible Government Data in a Single Portal and Open Format

    PH0026, 2013, Access to Information

  46. Starred commitment Initiate Fiscal Transparency in the Extractive Industry

    PH0027, 2013, Anti-Corruption

  47. Starred commitment Improve the Ease of Doing Business

    PH0028, 2013, Private Sector

  48. Disclose Executive Budgets

    PH0001, 2011, Fiscal Openness

  49. Access to Information Initiative

    PH0002, 2011, Access to Information

  50. Broader CSO Engagement

    PH0003, 2011, Public Participation

  51. Participatory Budget Roadmap

    PH0004, 2011, Fiscal Openness

  52. Local Poverty Reduction

    PH0005, 2011, Subnational

  53. Empowerment Fund

    PH0006, 2011, Capacity Building

  54. Social Audit

    PH0007, 2011, Public Participation

  55. Results-Based Performance

    PH0008, 2011, Capacity Building

  56. Performance-Based Budgeting

    PH0009, 2011, Capacity Building

  57. Citizen’S Charters

    PH0010, 2011, Capacity Building

  58. Internal Audit

    PH0011, 2011, Anti-Corruption

  59. Single Portal for Information

    PH0012, 2011, Access to Information

  60. Integrated Financial Management System

    PH0013, 2011, E-Government

  61. Electronic Bidding

    PH0014, 2011, Anti-Corruption

  62. Procurement Cards

    PH0015, 2011, Anti-Corruption

  63. Manpower Information System

    PH0016, 2011, E-Government

  64. Expand the National Household Targeting System (NHTS)

    PH0017, 2011, Public Participation

  65. e-TAILS

    PH0018, 2011, E-Government

  66. Budget Ng Bayan

    PH0019, 2011, Fiscal Openness

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