The first ever report of the Myanmar Extractive Industries Transparency Initiative (MEITI) will be published at the end of December, 2015 to disclose the information related to revenue received from the extractive industries to the public. The report has been compiled since July 2, 2014 when Myanmar was recognized as an Extractive Industries Transparency Initiative (EITI) Candidate Country, and it is an important requirement for Myanmar to become an EITI member country.
Internationally-recognized Independent Administrator, Moore Stephens Ltd, reconciled the information and data disclosed by the Government and that of the companies in line with the EITI Standards. In disclosing the information in accordance with the MEITI Template, it is internationally significant that there are 100% participation from the Government and 95% participation from the companies involved in the EITI scope. In comparison, the 2015 the Philippines EITI report has 70% of the companies’ participation and the 2016 Mongolia report has just over 65% of the companies’ participation. Currently, Moore Stephens Ltd, is preparing the MEITI draft report containing findings of reconciliation and background information about the extractive industries of Myanmar, in order to present a draft report to the Multi-Stakeholders Group (MSG) representatives and key stakeholders of Myanmar EITI process in the third week of December, 2015.
Scope of MEITI
In the Myanmar EITI scope, 13 oil and gas companies representing the 100% of the revenue income from the oil and gas sector based on the information of the 2013-14 fiscal year, 30 gems companies representing 67% of the revenue income from the gems emporium, 11 companies representing 50% of the revenue income of mining sector have been included. As Government Departments, Myanma Oil and Gas Enterprise under the Ministry of Energy, Department of Mines, Myanmar Mining Enterprises (1), (2) and (3) and Myanmar Gems Enterprise under the Ministry of Mines, Budget Department, Treasury Department, Internal Revenue Department and Customs Department under the Ministry of Finance, Forestry Department under the Ministry of Environmental Conservation and Forestry have participated. In addition, 3 mining companies have been included on demand of the Civil Society Organizations (CSOs) as a special case, although they are not required in the EITI scope, according to the proportion of revenues (the materiality). Significantly, among the EITI implementing countries, Myanmar becomes the first country which includes gems sector. Although not compulsory to disclose in accordance with the EITI standard, as per decision of the Multi-Stakeholders Group (MSG), the disclosure of the revenue and tax received from the oil and gas transportation through the pipeline by the Myanmar Oil and Gas Enterprise (MOGE) has been included in the Myanmar EITI scope.
Myanmar and EITI
For the implementation of Myanmar EITI process, the Multi-Stakeholder Group (MSG) comprised of stakeholders from the government, private companies and civil society organisations is formed according to Requirement 1.3 (f) of the 2013 EITI Standard. The group includes 9 representatives from civil society organisations, 6 representatives from oil, gas and mining companies and 6 representatives from the government. At the International EITI Board’s 27th Meeting held on July 2, 2014, Myanmar was approved as the 45th Candidate Country. The International EITI Board requires Myanmar to publish its first EITI report by 2nd January 2016 for Myanmar’s transparency in line with the EITI standards. Besides, the second Myanmar EITI Report will have to be published in early 2017. After the International EITI Board reviews and approves that Myanmar EITI has fulfilled all 7 requirements of EITI Standards, Myanmar will be recognised as a Compliant Country in the mid-2017. The Multi-Donor Trust Fund (MDTF) has provided funding for the Myanmar EITI implementation process and the expenses are spent through the Ministry of Finance with the approval of the MSG in line with the World Bank’s procedures
In order to raise public awareness on the EITI Standards and the objectives of EITI implementing process, numerous EITI awareness raising workshops were conducted in Kachin, Kayin, Taninharyi, Mandalay, Magwe Rakhine, Sagaing and Shan States and Regions in cooperation with the local governments, civil society organisations and companies. It is already decided to form the Sub-National Coordination Units in Mandalay Region, Magwe Region, Shan State and Rakhine State as models for others in order to resolve the local consequences and complaints. As of July 2015, the Sub-National Coordination Units for Mandalay Region and Magwe Region are already established and it has been under-preparation to continue to form in Shan and Rakhine States.
In order to publish the Myanmar EITI report timely in accordance with the EITI standards, relevant line ministries have adopted required policies for transparency and implemented the reforms accordingly. Due to the EITI’s implementation process, new mechanisms for coordination between the government and civil society, and also between the civil society and companies have emerged.
For further information: www.myanmareiti.org, email@example.com or 09250066126.
The press release can also be downloaded via the following links: