Regional - EITI - Beneficial Ownership Disclosure Support Programme

Overview
Project Summary Document

TCRS 7476

Status TC Com approved

Location

Regional

Business Sector

Notice Type

Public

PSD Disclosed

20 Dec 2016

Project Description

This technical cooperation programme (the ‘Programme’) focuses on supporting the implementation of new beneficial ownership disclosure requirements, recently committed to by the governments of 51 member countries of the Extractive Industries Transparency Initiative (EITI), in up to seven EBRD member countries. Those countries are Armenia, Azerbaijan, Kazakhstan, Kyrgyz Republic, Mongolia, Tajikistan and Ukraine.

The Programme will be implemented in association with the EITI International Secretariat (EITIIS), the multi-lateral custodian of the EITI Standard, with EITIIS being retained as Programme consultant. EITI: The rationale behind EITI is that increased transparency and disclosure of revenues from the extractive industries will empower citizens and institutions to better hold governments accountable. EITI itself is a policy, legal and regulatory framework that aims to ensure the proceeds of mining and energy industries are used for broader and sustainable economic development. It provides an agreed international standard for regular publication of all material oil, gas and mining payments by companies to governments and all material revenues received from those companies to a wide audience in a publicly accessible, comprehensive and comprehensible manner.

The main idea behind the beneficial ownership requirements in the extractive sector is that identity of the real owners of companies that have obtained rights to extract oil, gas and minerals is often unknown, hidden by a chain of unaccountable corporate entities. Extractive companies play a crucial role in turning a country’s natural resources into revenues that can serve development. Thus, citizens of resource rich countries are at particular risk of losing out as extractive assets are too often misallocated for corrupt reasons. While in many cases responsible companies run such projects with the necessary technical and financial capacity, experience has also shown that in many cases, in particular where governance is weak, rights to extract oil and minerals may be given to companies that do not have such competence. Rather, such companies may be given access to lucrative extractive projects because their owners are politically ‘connected’, or because their owners are willing to engage in questionable deals aimed at generating quick profits for a few rather than benefits for wider society.

It has been estimated that developing countries lose more than USD 1 trillion each year as a result of corrupt or illegal deals, many of which involve anonymous companies. For instance, in 2013, the Africa Progress Panel suggested that the Democratic Republic of Congo in the period 2010-12 lost at least USD1.36bn from five mining deals hidden behind a structure of complex and secret company ownership, estimated to be about the same as the country’s average annual revenue from oil, gas and mining in the same time period. Disclosure of beneficial ownership will help lower the risk of such financial misconduct. While the issue might not be of that scale in the EBRD region, there are nonetheless concerns that the absence of a requirement to reveal the beneficial owners of companies with interests in extractives projects allows scope for the exploitation of that secrecy or anonymity. With this in mind, the benefits of beneficial ownership transparency are numerous. It can help improve the investment climate, reduce reputational and financial risks, prevent corruption and illicit financial flows, improve the rule of law, increase trust and accountability, and enhance revenue collection. Put simply, enhanced transparency and the associated trust that goes with it is good for business and good for growth.

The country strategies of the seven countries targeted in this programme have identified transparency in the extractives sector as a key transition challenge or provide explicit references to the Bank’s desire and/or intention to support the implementation of EITI provisions in those countries, or otherwise to support the broadening of transparency within the extractives sector, and otherwise across the economy. The Project is fully consistent with the Legal Transition Programme (LTP) Action Plan 2016 – 2018. Specifically one of the four key types of activities that the LTP envisages LTT carrying out in the 2016-2018 time period includes “[a]ccountability and transparency in the natural resources sector: [in particular] deepening of the Bank’s support for Extractive Industry Transparency Initiative (EITI) at the country level, support for national EITI secretariats and for the International EITI Secretariat.” The Programme is also consistent with the Bank’s Mining Sector Policy support EITI, and that policy’s commitment ‘….[t]hrough active policy dialogue with the authorities and its clients the Bank will act as an honest broker between governments, companies and [Civil Society Organisation]s to improve transparency in all aspects of mining operations.’

Enquiries

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

TCRS 7476

Status TC Com approved

Location

Regional

Business Sector

Notice Type

Public

PSD Disclosed

20 Dec 2016

Project Description

Project Objectives

In each of the countries targeted, advances towards comprehensive disclosure of beneficial ownership and user friendly beneficial ownership registries, enabling government officials and other stakeholders to access information on the ultimate beneficial owners of extractive companies from easily accessible single sources open to public scrutiny.

TC Recipient Information

Governments in the EBRD's Countries of Operations.

Project Cost

€ 1,310,000.00

Funding Summary

EBRD’s Special Shareholders Fund (SSF)

Any competitive selections for business opportunities relating to this project will be published on the EBRD's website: Consultancy Procurement Opportunities.

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.

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Regional - EITI - Beneficial Ownership Disclosure Support Programme

Project Description

Enquiries

Business opportunities

General enquiries

Project Description

Project Objectives

TC Recipient Information

Project Cost

Funding Summary

General enquiries

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)