EIB support for the Extractive Industry Transparency Initiative
- Feb 28, 2008
EIB is endorsing and supporting the Extractive Industries Transparency Initiative - EITI - established to encourage and assist resource rich countries to put into place procedures for publishing verified information on payments made and revenues received.
The European Investment Bank (EIB), set up to promote European Union objectives, has a mandate to support the EU’s development cooperation policies in many regions outside the EU Member States. Weak governance, corruption and lack of transparency are a major issue in some of the regions in which EIB operates and acts a serious brake on economic and social development. This is particularly crucial in the countries rich in oil and gas and mineral resources where the failure to disclose information on payments and revenues can lead to a misuse of resources.
EIB therefore is endorsing and supporting the Extractive Industries Transparency Initiative - EITI - established to encourage and assist resource rich countries to put into place procedures for publishing verified information on payments made and revenues received.
Poverty reduction in support of the Millennium Development Goals is an overarching objective for EIB, and the projects it finances contribute directly or indirectly to reducing poverty and improving employment opportunities in developing countries.
Well managed extractive industries can make a significant contribution to economic development and job creation. EIB is convinced that improved transparency and accountability in the extractive industries are essential elements for underpinning economic development, poverty reduction, and for political stability in resource rich countries.
EIB is committed to promoting good transparency and governance in all the projects it finances. Supporting the objectives of the EITI will reconfirm the Bank’s recent statement with other development financing institutions on promoting corporate governance , as well as confirming the orientation of its recently revised anti-fraud and corruption policy.
EIB will support EITI’s work in resource rich countries in which the Bank operates, by working with its project sponsors to introduce greater transparency and consistency in reporting on payments at a project level. At the same time, EIB will promote the initiative in its contacts with governments and national authorities and encourage them to adopt the EITI principles for reporting and publishing extractive industry revenues. EIB will also actively support the work of the EITI International Secretariat based in Oslo.
Countries adopting EITI principles and internationally recognised reporting standards, coupled with good governance policies, will strengthen their capacity to ensure an effective use of national resources and improve economic efficiency and growth as well as enhancing investor confidence. EIB applies European Union standards and international best practice in all projects it finances, paying special attention to development, environmental and social issues.