5 January 2013

Tanzania: Firm Commends Dar for Attaining EITI Compliance

THE Publish What You Pay initiative (PWYP), under Fordia Tanzania has paid tribute to Tanzania's recent raise to being an Extractive Industries Transparency Initiative (EITI) compliant country.

It, however, urges the country not to be complacent but rather consider the milestone achievement as both challenge and motivation to practically do more on extractive industries value chain transparency.

The Executive Director of Fordia Tanzania, Mr Bubelwa Kaiza, said in Dar es Salaam on Friday that the Tanzania EITI Multi-Stakeholders (MSG) and the government alike should take concrete leadership steps, including to support the current EIT International Board efforts to expand the EITI domain, specifically the mandatory disclosure of mining, oil and gas contracts reports, among others.

"PWYP Tanzania is fully supportive of stakeholders' efforts striving to achieve an expanded and meaningful EITI in Tanzania and beyond," he said.The International Board of the Extractive Industries Transparency had on that day declared Tanzania the EITI Compliant country. "This is definitely considered Tanzania's 2012 significant milestone achievement," he said.

He said Tanzania becomes one of the 18 EITI Compliant countries that rose from EITI candidacy status since launch of the initiative in 2002.

Tanzania made a public commitment to join, therefore formally admitted to implement EITI in February 2009. By December 2012 - 37 countries are implementing EITI and have collectively published 100 reports worth over $700 billion of oil, gas and mining revenues.

"The implication of being EITI Compliant country is that Tanzania is now internationally recognized as one governing her mining, oil and gas resources transparently and accountably, certainly with positive bearing on prudent and efficient management of the national economy, "he said.

He said it also implies that information about material revenue from mining, oil and gas operations in the country is fully disclosed and therefore publicly available, making citizens fully aware and availed with opportunity to scrutinize patterns and amounts of revenue the government receives from extractive companies.

"Governance of extractive industries in the country is not explicit yet, enough to validate information disclosure, prudent resource governance, predictability and equitable redistribution of revenue resulting from extractive industries, "he said.

He said that despite government good intentions to govern the mining, oil and gas resources transparently and accountably, Tanzania is yet to legislate the laws, setting regulatory framework to guarantee mandatory disclosures consistent with extractive industries value chain - decisions to extract, undertake exploration, issue licences, seal contracts, monitor operations, budgeting and allocation of resources.

He noted there is need for the government to conceive the Community Development Agreements (CDAs) as necessary tool for meaningful compensation of displaced and relocated communities resulting from mining or gas extraction operations.

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