PNG Extractive Industries Transparency Initiative (PNGEITI) is a global initiative adopted by the Government in 2013 to promote transparency and accountability in the country’s mining and petroleum value chain.
This followed discussion on the EITI concept in 2006.
A scoping study was conducted to determine the feasibility of PNG joining the EITI. The study identified that PNG was already implementing some of the initiatives required under the EITI at the national level, although it was not an EITI member country.
However, the study also highlighted that implementing EITI would greatly increase the transparency and accountability of extractive industries revenues to the national government and redistribution to the provincial and local level governments.
In 2011, based on the findings of the scoping study, NEC Decision No. 47/2011 endorsed for the establishment of a State Working Group (SWG) to assess the advantages and disadvantages of signing up to the EITI standard. In particular, the SWG was tasked to further investigate the possibility of implementing the EITI in PNG and report back to NEC with a detailed work plan for endorsement. As a result, the SWG engaged with major extractive industry participants and civil society organizations to gauge their views. A key recommendation by the SWG to Cabinet after consultations with stakeholders was to implement EITI and approved for the establishment of a Multi Stakeholder Group (MSG) to develop a detailed work plan for EITI implementation in the country.
In 2013, NEC Decision No. 90/2013 approved for PNG to sign up to the EITI and endorsed the minister responsible for Treasury matters to lead its implementation. The Treasurer made public announcement on behalf of the Government that
PNG would sign up to the EITI and eventually submitted its application for candidacy at the end of 2013. During the same time the PNGEITI MSG signed the MSG Memorandum of Understanding (MOU) that established a platform for collaborative efforts by these stakeholders to bring about revenue transparency and accountability to the extractive industry.
In 2014 the EITI International Board made a decision to accept PNG as an EITI candidate country. The PNGEITI National Secretariat was therefore established in 2015 to support MSG administratively and has been operating out of the Department of Treasury since then.
Papua New Guinea has so far published seven (7) EITI Reports. It is now preparing for the 2020 and 2021 reports. Papua New Guinea undergone its first country validation in 2018. The validation process began in April and ended in October 2018, with the EITI International Board awarding PNG ‘Meaningful Progress’ in its implementation of EITI. The country is now undergoing its second country validation, with the pre-validation preparation for the main validation to begin on the 1st of April 2022.