What is EITI

Extractive Industries Transparency Initiative (EITI) is an international initiative, institutionalized in 2002, with the initiative of Mr. Tony Blair, Prime Minister of Grand Britain, during that period. The EITI initiative comes as a concern, for those economically poor countries which have abundant underground assets; in order to find the destination of the material goods coming from extractive industries, while these countries are economically poor.

EITI had two main purposes related to its organization: Is it possible to control the income produced by the extractive industries? Is this income used in favor of the community development, or does it go in the hands of the corrupt government or companies?

The object of EITI is the development and the implementation of a mechanism, in order to make the income statement, which comes as a result of the natural resources use through the extractive industries, and the publication of these data in a comprehensive format so the public should be informed about the income and the public revenues. This will also lead to a public debate and the creation of the right mechanisms for the due diligence of this income in favor of the community.

EITI, as an institution, has an international board, which consists of three main groups, civil society, companies and the state.

The EITI standard means the establishment of business transparency in extractive industries, in order that, the community should profit from the income coming from the use of natural resources. EITI, in function of transparency, monitors the income of the companies that operate in extractive industries, and the payments that these companies make to the government and are considered as income for the government. This is realized through an annual report which is prepared by an independent administrator. The annual EITI Report is published and accessible for everyone.

The EITI Principles are based in the trust that the careful use of natural resources contributes in the economical growth, sustainable development and poverty reduction in the countries reach in natural resources. EITI aims the promotion of transparency in order to prevent the corruption and to ensure to the citizens a basis for searching the fair use of the income. It is also expected that the transparency should have a positive contribution in the growth of investment in this sector.

EITI has a flexible methodology that assures a sustainable global standard for all the implementing countries. The EITI Rules defines the methodology that countries should follow, in order to become EITI Members. The main Rule of EITI, is the open collaboration of government, civil society and the companies that operate in extractive industries. The standard criteria of EITI, is the regular publication of the payment that the companies of oil, gas and mining make to the government and also the publication of the income that the government receive from these companies.

EITI Reporting in Albania it is regulated through the Law No. 10304 “For the Mining Sector in Albania” amended in October 2014 and Hydrocarbon Law no. 7746, date 28.7.1993, amended in March 2015 which obliges all companies operating in extractive sector to implement EITI.