EITI Process (PNG0007)

Status quo or problem addressed by the commitment: PNG is an Extractive Industry Transparency Initiative (EITI) candidate country. In 2013, a National Executive Council (NEC) Decision endorsed the implementation of the EITI in PNG. PNG published so far published four reports covering financial years 2013, 2014, 2015 & 2016. The first report (2013) highlighted certain key challenges including the unavailability of relevant extractive sector management data for public to access. One of the challenges was the absence of enabling legislation to compel reporting entities to provide timely and accurate data.; Main objective: By March 2019, PNG to have a national policy vehicle and an enabling legislation on EITI; Legal Establishment of an EITI Statutory Authority; Brief description of commitment: At the policy level, the Government, through a NEC decision endorsed key recommendations of the 2013 Report. There were a total of 11 NEC directives relating to improving Government reporting entities to either participate fully in the EITI process and to beef up reporting systems and processes for greater accountability and transparency. Despite this a major challenges remain surrounding its implementation. By introducing the EITI policy and legal framework, PNG will meet its OGP commitments by fostering an enabling environment for civic participation, open and transparent government and a more accountable extractive sector.; OPG challenge addressed by the commitment: OGP challenges this commitment attempts to address include: • Lack of transparency in the extractive industry payments (taxes, royalties) from both government and developers. • Lack of civil society voice in the extractive sector • Lack of contract transparency. • Lack of accountability and public participation • Lack of access to data • As a result of this commitment, the reporting entities will be more compliant and citizens will be better informed of how the extractive sector is managed in the country.; Relevance: Relevance commitment describe the way in which this is relevant to further advancing OGP values of access to information, public accountability, civic participation, and technology and innovation for openness and accountability. (A detailed description of these values is available in the OGP Values Guidance Note): Although PNG has an NEC decision backing EITI implementation, this decision is not binding on the reporting entities. Having an enabling legislation and a vibrant civil society voice will ensure mandatory reporting, compliance, access to information and sustainability of the EITI process.; Ambition: Briefly describe the intended results of the commitment and how it will either make government more open or improve government through more openness.: Having a policy and law in place will improve the way the extractive sector is governed and boost investor confidence.; Milestones: PNGEITI National Secratariat recruits consultant to draft PNGEITI policy framework.; Consultant reviews existing policies, legislations, and regulations relating to extractive relating to extractive sector in PNG. Identification of relevant stakeholders for initial consultation phase – PNGEITI National Secretariat identities OGP members for inputs. Consultant drafts desktop review. Submission of Desktop Review Consultant refines and submits desktop Review. Refinement and submission of updated draft PNG EITI policy framework. Circulation of Draft PNGEITI policy framework to relevant stakeholders prior to consultation visit.; Consultation on draft PNGEITI with relevant stakeholders-OGP members actively participate for a better PNGEITI policy.; Draft of consultation document/report on feedback provided by stakeholders including any recommendations to amend the draft PNGEITI policy framework.; Draft amendment to PNGEITI policy framework based on consultations feedback, Submission of revised PNGEITI policy.; Submission of PNGEITI Policy to National Executive Council.; Submission of PNGEITI policy to cabinet.; Consultant (Adam Smith) reviews Legislation existing statuary Authority.; Guage and incorporate stakeholder views on desktop review OGP Cluster members to actively participate.; Identification of options for the legal set-up of the PNGEITI Statutory Authority-consultant capturing stakeholder views.; Consultant prepares draft PNGEITI legislation on the establishment of PNGEITI Statutory Authority to coordinate and manage activities of PNGEITI.; Circulation of draft PNGEITI legislation on the establishment of PNGEITI Statutory Authority to relevant stakeholders- OGP members review draft legislation.; Consultation consult with relevant stakeholders finalize EITI Statutory Authority.; Consultation incorporating comments and inputs from stakeholders finalize EITI Statutory Authority.; Consultant delivers PNGEITI Legislation to National Secretariat and MSG for endorsement to be passes in parliament.; Parliament passes PNGEITI Legislation on the setup of PNGEITI Statuory Authority.

7. Support EITI Processes

Verifiable: Yes

Relevant to Open Government: Yes

Potential impact: Minor

Completion: Substantial

Under this commitment, an Extractive Industries Transparency Initiative (EITI) Policy was endorsed by National Executive Council Decision 80/2019. [50] The policy was developed in accordance with EITI standards for consultation. It was drafted internally by the EITI Multi-Stakeholder Group chaired by the EITI, with representatives of the Consultative Implementation and Monitoring Council, the private sector, and state implementing agencies including regulatory bodies. It was then shared with the EITI Working Group Committee (which is made up of the same representatives as the EITI Multi-Stakeholder Group, who also overlap with the working group for this commitment). [51] The EITI Commission Bill was drafted and regional consultations were held in 2021. [52] A Review Workshop finalized views from the consultations in March 2022, [53] after the end of the implementation period. This draft legislation responds to 2017 government recommendations based on the 2013 EITI annual report. [54] Since Papua New Guinea became an EITI member in 2014, implementation of responsibilities under the initiative has been challenging, with the absence of a binding legal framework to motivate government agencies, development partners, resource owners, and stakeholders to promote and maintain industry transparency. [55] With a cluster of commitments focused on EITI in the next draft action plan, the IRM recommends prioritizing passage of this legislation.