Papua New Guinea Extractive IndustriesTransparencyInitiativeTerms of Reference (ToR) forPreparation of the FY2023 PNGEITI ReportJuly, 2024

    The Independent State of Papua New Guinea has undertaken to promote the transparency and accountability
    of revenue it receives from the oil, gas and mining sectors, and how it spends these funds. This is been
    implemented through PNG Extractive Industries Transparency Initiative (EITI), an independent body
    established by the National Government through an NEC Decision No. 90/2023. PNGEITI is part of the global
    best practice standard known as the Extractive Industries Transparency Initiative (EITI) that promotes good
    governance in the extractive sector.
    In EITI implementing countries, companies involved in the extractive natural wealth (oil, gas and minerals)
    industries are required to report on what they pay to the governments, and governments are required to
    publish what they receive from these companies. In a given financial year, these financial data are then
    reconciled by an independent administrator and are published in the Annual EITI Report for public information.
    Accordingly, this Terms of Reference (TOR) outlines for an Independent Administrator tasked with producing
    the 2023 Annual EITI Report in compliance with EITI Standards.
    The Extractive Industries Transparency Initiative (EITI) is a global standard for governance of natural
    resources. It promotes transparency and accountability in the extractive industries by disclosing information
    about revenue flows between extractive industry companies and governments.
    As part of EITI requirements, member countries are obligated to produce an annual report detailing extractive
    industry revenue, payments, and other relevant data.
    The PNG Government signed up to implement the EITI Global Standard in 2013 and subsequently became an
    EITI implementing country in 2014. A Multi-Stakeholder Group (MSG) was established in 2015 to oversee the
    implementation of the EITI in the country.
    One of the core responsibilities of each EITI implementing countries is to publish Annual EITI Country Reports
    covering activities and revenues received from the extractive sector in the form of taxes, levies, royalties,
    permits and social voluntary contributions of the sector to the government. These revenues are then reconciled
    by an Independent Administrator (IA) engaged by the MSG through public tendering process. The reconciliation
    process covers payments made by extractive companies to the government and the receipts of these payments
    by governments. This regular reporting is required by the EITI Global Standard.
    PNG published its first and second EITI Reports covering the financial years 2013 and 2014 in 2016. These
    were followed by publications of the financial years 2015 to 2021 Reports and lately the 2022 report in March
  3. The FY2023 Report will be prepared for publication by 31st December 2024.
    Implementation of EITI in the country was first validated in 2018 which resulted in PNG scoring “Meaningful
    Progress” with recommendations made in a number of areas for corrective actions to be undertaken before the
    second validation. The second validation was undertaken in April 2022 that critically assessed progress made
    in addressing the corrective actions and gaps identified and recommendations from the first validation. The
    second validation also assessed progress made in acting on the recommendations made from other PNGEITI
    MSG sanctioned study reports that were published.
    The objective of the assignment is to support the PNGEITI MSG in strengthening disclosures in accordance with the
    EITI Standard, provide an assessment of the comprehensiveness and reliability of the disclosures, and support the MSG
    in agreeing to specific recommendations for strengthening government systems and natural resource governance.
    Page | 4
    The Independent Administrator (IA) is expected to produce an accurate, timely, and comprehensive 2023
    Annual EITI Report by addressing the status of progress on the recommendations resulting from the first and
    second validations.
    The preparation of Financial Year 2023 Report will build on from previous reports that have been published to
    progressively update on the recommendations made from these reports, as well as the recommendations made
    from the 2018 and 2022 validations that were undertaken respectively.
    The IA is also required to assess and produce a Scoping Report for the MSG to discuss and agree on the scope of
    work required for preparing the FY2023 PNGEITI Report. The scoping work should continue to cover the
    outcomes and their recommendations from FY2013 to FY2023 PNGEITI Reports, the 2018 and 2022 Validation
    Report outcome and their recommendations (corrective actions), and any other reports including:
    (i) Beneficial Ownership (BO) Disclosure Report 2020
    (ii) SOEs Scoping Study Report 2020
    (iii) Contract Transparency Report 2021
    (iv) Sub-national Payments and Transfers Scoping Study Report
    (v) Recommendations made from JICA Technical Cooperation Project on Resources Related Revenue
    Management and the two World Bank funded Scoping Study Reports recommendations on Education
    Mainstreaming and the EITI Data Online Reporting Platform.
    Technical Working Groups (TWGs) including a TWG on the EITI Legislation have been established for each of
    the above activity and these TWGs can provide progress updates to the IA for the 2023 PNGEITI Report.
    Additional information that may be relevant for preparing this report may be sought from other sources as well
    as from the PNGEITI website

Reffer Attached ;

Share this post


Leave a Reply