THE Department of Public Information (DPI) announced last week that Guyana is on track to submit its first report to the Extractive Industries Transparency Initiative (EITI) in April.
Participation in the EITI is an important step in Guyana’s effort to ensure transparency and accountability for how oil revenues are spent and saved when production begins in 2020. More than 5 billion barrels have been found so far, including two new finds in the past month, and the government of Guyana is expected to take in tens of billions of US dollars in revenue over the next decade.

Many in Guyana are not familiar with the EITI organisation. The EITI does not have the same role as other international organisations, like the World Bank or the International Monetary Fund. Instead, the EITI is a voluntary global coalition of countries with active resource industries that have come together to promote “the open and accountable management of oil, gas and mineral resources,” according to its website.
To this end, the EITI is most well known for establishing a set of global standard practices for countries managing their resource industries. Countries with an interest and commitment to upholding the standards can apply for membership in the group. The 51 “implementing” countries are continuously measured on their individual progress toward established transparency goals.

The standards set by the coalition focus on transparency and require the disclosure of information throughout the extractive industry value chain. This includes reporting on how revenues make their way through the government and how they benefit the public. The EITI does not recommend specific tools for managing resource revenues like sovereign wealth funds. Instead, it aims to promote responsible management of extractive industry revenues by reinforcing the principle that public accountability and open political processes are less vulnerable to corruption and mismanagement.

The standards also focus on the role of stakeholders through the process including civil society groups, companies and government, and progress on compliance with these standards is reassessed regularly, depending on the country’s progress.

Membership in the EITI is broad and varied. The group includes countries as diverse as the United Kingdom, Azerbaijan, Botswana, Indonesia, Mongolia, and Norway. Membership generally serves as a signal to international investors and other nations that a participating country is taking responsible fiscal management seriously and is committed to reducing corruption.

Guyana became a candidate for membership in October 2017 and formed the Guyana Extractive Industries Transparency Initiative (GYEITI) as an independent agency. The government first committed to joining the nearly 40-year-old organisation in 2010.

The independent administrator of the EITI in Guyana told the DPI that their report on Guyana’s transparency progress will be submitted by April 25 as part of the two-and-a-half-year validation process for prospective members of the EITI. The report will include information on the mining, forestry, and energy sectors in Guyana. GYEITI plans to eventually suggest amendments to existing laws to increase transparency and accountability.

Critically, Guyana has already named a 12-member multi-stakeholder group that will be responsible for overseeing and implementing the EITI standards here in Guyana and has been receiving input from international experts on resource revenue auditing and taxation.

The chairs of the group include the Minister of Natural Resources, a representative of environmental group Conservation International, a technical officer for mining at the Ministry of Natural Resources, and a member of the Guyana Geology and Mines Commission Board of Directors. The multi-stakeholder group also includes representatives of various companies involved in resource extraction and community members.

This broad inclusion is a vital part of ensuring that Guyana’s resources are managed according to the wishes and best interests of all Guyanese. Representatives from many groups will have a chance to monitor progress and affect the outcome.

While Guyana already has multiple initiatives like the Natural Resources Fund, currently being established to manage the wealth gained from oil exploration, Guyana’s progress on full EITI implementation is hopefully a step in the right direction toward sustainable and accountable development.