EITI & Afghanistan

On 16 March 2009 the Government of Islamic Republic of Afghanistan (GOIRA) announced its endorsement of the principles of EITI, after which all remaining EITI sign-up indicators were entirely implemented to become EITI candidate country that was officially endorsed by the International EITI Board at its meeting in Oslo in February 2010. GOIRA has requested that the donor community provides immediate technical and financial support to develop good governance and accountability mechanisms in Extractive Industries Sector via effective EITI implementation process in Afghanistan. For this purpose the AEITI (Afghanistan Extractive Industries Transparency Initiative) Secretariat was established within the Ministry of Finance in July 2010 to take the lead of EITI implementation in Afghanistan.

In Afghanistan, the extractive (mining, oil & gas) sector is expected to contribute a significant and growing proportion of Government revenues for country’s development. In light of this, GOIRA has fully committed to EITI implementation to ensure that all payments and receipts in the extractive industry are made in an effective and transparent manner. To ensure that the long-term objective is achieved, GOIRA started with producing the first and second National reconciliation reports that required the services of an independent audit firm to collect, collate and reconcile all material payments made by relevant extractive companies and revenues received by the Government in accordance with the AEITI Reporting Template for 1387, 1388 (21 March 2008 – 20 March 2010), 1389 (21 March 2010 – 20 March 2011) fiscal years respectively. So far six EITI reports have been published by Afghanistan EITI for the years 1387-1396 respectively.

In following the EITI standard, GOIRA commits to publish all payments of taxes, royalties and fees it has received from its extractive sector. Equally, extractive companies operating in Afghanistan should publish what they have paid to GOIRA. Overseen by a multi-stakeholder group with representatives from the Government, companies and civil society, these figures are then reconciled and published in the AEITI Report.