Can We Export Our EITI Experience?
Head, TTEITI Secretariat
Sherwin Long has served as TTEITI head since 2015. Previously, Mr. Long held the positions of Senior Research Specialist, Energy and Chairman of the Energy Efficiency and Alternate Energy Committee at the Energy Chamber of Trinidad and Tobago.
Trinidad and Tobago’s position as the Caribbean’s leading energy province has always forced us to take a less insulated view of our regional role in the sector. The country has led several efforts to share our experience with our CARICOM neighbours, highlighting our unique story.
This story includes chapters on developing a coherent industrial policy, transitioning from an oil to gas-based economy, developing downstream gas industries as well as creating opportunities for local energy service companies.
One interesting footnote to this story has been our participation in the Extractive Industries Transparency Initiative (EITI).
As the name suggests, the EITI focuses on resource revenue transparency, providing independently verified assurance on the revenues that T&T earns from oil, gas and mining. The information is disseminated through annual EITI Reports and T&T has published four such reports to date covering Fiscal Years 2010 to 2015.
Based on the reports’ findings, an estimated $840 million in differences between extractive companies’ declared revenue payments and Government’s declared corresponding receipts have been identified, audited and reconciled.
The reports have also provided extensive recommendations on improving Government revenue collection, data management and audit and assurance processes.
Data published in the reports have also informed the findings of the recent Gas Master Plan and assisted T&T in meeting its obligations to the Open Government Partnership.
Importantly, the EITI has helped T&T extend goodwill to its CARICOM neighbours by sharing our unique EITI experience.
For instance, in 2015, the TTEITI in partnership with the UK’s Foreign and Commonwealth Office’s Prosperity Fund, hosted a series of regional capacity building workshops that resulted in Suriname becoming EITI compliant in May of this year and Guyana applying for membership this month.
In light of this success, the TTEITI will again be partnering with the FCO through its Prosperity Fund Project, for phase two of its capacity building workshop to promote best practice in natural resources management in Barbados, Belize and Jamaica.
The workshops will seek to promote transparency, accountability and improved natural resources management in the extractive sectors (oil, gas and mining) of these countries through EITI adoption and implementation.
By implementing the EITI, these countries, among other things, can improve government’s revenue receipts, enhance their reputation and assist in boosting the investment climate and ease of doing business indicators as is reflected in T&T.
In a globalised world with free movement of capital, attracting investment from international sources requires the creation of a competitive economy. And, as international investors have many different options about where they can place their investment dollars, it is important that we benchmark our economy against other global economies.
Benchmarking exercises not only help us determine how we are doing compared to our competitors, but also highlight areas of strength and weakness within the competitiveness framework for the country. Sound resource governance is a major component of increasing competitiveness and country branding.
And, Trinidad and Tobago’s participation in the EITI has helped our performance on a respected global governance index, the Resource Governance Index.
Recently, the country scored 64 out of 100 in the 2017 Resource Government Index (RGI) and ranked 14th out of 89 assessments for the 81 countries surveyed.
According to the RGI, an international benchmarking standard which measures how countries govern their resources with a focus on revenue management, value realisation and enabling the environment, T&T scored relatively high for publishing timely, regular reports on oil and gas production, prices and exports as well as sound Heritage Stabilisation Fund governance.
Given the impact of the EITI on our index score, other Caricom neighbours can also learn from the example of Trinidad and Tobago’s experiences. Suriname and Guyana’s involvement with EITI has shown that the country can not only take the lead in sharing technical expertise when it comes to energy but promote good governance and transparency as well.
In the near future, other Caricom countries such as Barbados, Belize and Jamaica will also be part of the EITI story as we continue to share valuable lessons in best practice in resource governance.
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