Background E.O. No. 79, Sec. 14: Presidential declaration to implement and participate in EITI. On 25 July, MICC created EITI TWG, headed by Sec. Gozun and under the Cabinet Cluster on Good Governance

Updates & Actions Taken Visits by EITI Int’l Secretariat, Revenue Watch Inst. & Indonesian Parliamentary Center to express support for PHL implementation of EITI. Exploratory meetings held with Bantay Kita on 27 July & 3 Aug; exploratory meeting with Chamber of Mines of the Philippines on August 14. Agreement reached to set up an Interim MSG with Bantay Kita and COMP representing civil society & business sectors.

The EITI Compliance Process SIGN-UP EITI CANDIDATE (1.5 years) EITI COMPLIANT Requirements: Issue public statement Commit to work w/ stakeholders Appoint EITI lead official Form MSG Craft EITI Work Plan Preparation of EITI Report (8 Requirements) Retaining Compliance: Maintain adherence to all requirements… Note: a detailed version is in the handouts Disclosure & Dissemination (5 Requirements) Review & Validation (2 Requirements) else… Suspension

EITI Candidacy Checklist The government is required to issue an unequivocal public statement of its intention to implement EITI EO 79, Section 14. Improving Transparency in the Industry by Joining the Extractive Industries Transparency Initiative

EITI Candidacy Checklist  The government is required to commit to work with civil society and companies on the implementation of EITI met with Bantay Kita , the Chamber of Mines and other large scale mining companies that are not members of the Chamber & reps of the Petroleum Assn of the Phil Regional CSO consultative Workshops held The EITI Rulebook states that “Civil society and companies must be substantially engaged in the design, implementation, monitoring and evaluation of the EITI process, contributing to public debate.”

EITI Implementation Structure Cabinet Cluster on Good Governance and Anti-Corruption Mining Industry Coordination Council (Jt. Econ & Climate Clusters) Implementation of EITI; Policy Consultation & Feedback Mechanism EITI Philippines (Multi-Stakeholder Group) Discussion Notes: This slide shows that: We are expected to report to both the Governance Cluster and the MICC relative to our progress in implementing EITI We are expected to initiate the convention of the EITI Multi-Stakeholder Group and provide technical support to it We envision the Multi-Stakeholder Group to not only be a mechanism for implementing EITI but also as a mechanism for policy consultation and feedback with stakeholders EITI TWG

EITI Candidacy Checklist The government is required to appoint a senior individual to lead on the implementation of EITI Secretary Elisea Gozun was identified in the first MICC meeting last July 25, 2012, to lead the process of complying the EITI

EITI Candidacy Checklist The government is required to establish a multi-stakeholder group (MSG) to oversee the implementation of EITI The interim Multi-Stakeholder group was convened on August 21, 2012 At the onset, it is composed of 9 members, 3 from government, namely the Office of the Presidential Assistant for Climate Change, Department of Environment and Natural Resources and the Department of Finance, 3 from civil society, and 3 from the business sector.

EITI Candidacy Checklist The multi-stakeholder group, in consultation with key EITI stake-holders, should agree and publish a fully costed work plan, containing measurable targets, and a timetable for implementation and incorporating an assessment of capacity constraints. Governance Secretariat & EITI TWG & Interim MSG drafted an initial work plan, for discussion and fleshing-out The EITI Secretariat has kindly provided us sample work plans by Timor Leste and the Solomon Islands The work plan should be updated on an annual basis

EITI Candidacy Checklist Target: Candidacy application by early Feb In addition, governments should review the legal framework to identify potential obstacles to EITI implementation Once we have been declared an EITI Candidate, we have 18 months to publish an EITI Report and 2.5 years to submit a final Validation report endorsed by the MSG to the EITI Board

The EITI TWG Sec. Gozun DENR (MGB) DoF (BIR, BoC, BLGF) DILG DoE NEDA EITI Lead Official + TWG chair DENR (MGB) general mining data, regulation & linkages DoF (BIR, BoC, BLGF) mining revenues (nat’l – BIR & BoC; local – BLGF) DILG small mining revenues & regulation by LGUs DoE oil industry regulation, revenues & other data NEDA MICC Secretariat internal communication DBM (RIU, SPIB, BMB-G) LGU rev shares (BMB-G) regulation organizations & systems review (SPIB) Governance Cluster Secretariat (RIU)

Updates & Actions Taken Technical Working Group (TWG) established and actively working Meetings held on: - August 10 - August 17 - November 6 - December 5

Interim MSG convened (9 members): - September 6 - September 24 - October 5 - December 18

ACTIONS TAKEN Decided on initial scope: - large scale metallic mining Drafted the TOR & sought comments Drafted the Work Plan & sought comments

ACTIONS TAKEN Mobilized support for CSO outreach: - October 18-19 Training of Trainors - Regional Consultations: * Baguio Nov 26-27 * NCR Nov 29-30 * Davao Dec 3-4 * Pagadian Dec 6-7 * Cebu Dec 10-11

ACTIONS TAKEN Outreach: Different National Government Agencies – DoF, DOE, DENR-MGB, BIR, NEDA, DBM* , DILG*, NCIP* Local Governments Business Sector: - Chamber of Mines of the Philippines - non-members of the Chamber - oil & gas exploration CSO – Indigenous Peoples, Different religious groups* * to be done within January

Proposed PH-EITI Work Plan Key Milestones Q1 2013: Fulfill requirements for EITI Candidacy, including MSG, Work Plan & PH-EITI Launch; Set-up PH-EITI Unit, conduct studies on materiality, capacity assessment & set-up PH-EITI website Q2 2013: Finalize reporting policies, mechanisms & templates, hire independent validator & procure publishing requirements H2 2013: Design and production of the 2011-2012 PH-EITI Report, w/ continuous consultation H1 2014: Independent validation

Proposed PH-EITI MultiStakeholder Group (15 members) 5 from Government: Sec. Gozun, Dept of Finance (DOF), Dept of Environment and Natural Resources (DENR), Dept of Energy (DoE) , Union of Loal Authorities of the Philippines (ULAP) 5 from Industry: 4 from Chamber of Mines of the Philippines, 1 from large scale mining companies that are not members of the Chamber 5 from Civil Society: convened by Bantay Kita CSO networks, IP networks, academe, Peoples Organizations, etc.

Upcoming Milestones Public launching of PH-EITI Submission of the PH - EITI Application to the EITI International Secretariat by early February

PREPARATION Fully engage industry and civil society Remove obstacles to implementation Agree on materiality Develop reporting templates Ensure company and government accounts are properly audited to international standards

Other TASKS Draft a disclosure policy, including flow-charting of revenue data Identify potential obstacles to EITI, use of technology & application of open data Determine other areas for transparency & participation in extractive industries, including allocation of special shares Support and closely monitor sub-national EITI implementation Secure support from national and int’l partners