PWYP’s short guide to EITI Validation

Source: PWYP International
Date: 9 Mar 2010

1. What is the purpose of EITI Validation?

Validation is the EITI’s quality assurance mechanism. It measures progress that EITI countries have made in implementing the EITI Principles and Criteria. If a country is deemed to have fully implemented the EITI Principles and Criteria, the EITI Board can designate it as EITI Compliant.

2. Does EITI Validation lead to EITI Compliance?

Not necessarily. The EITI Board deems whether an EITI country is or is not Compliant based on the evidence presented in the Validation report. It is entirely possible for a country to successfully complete its Validation process but not be designated as Compliant.

3. What is the EITI Validation deadline (the “two-year rule”)?

Under the current EITI Rules, once a country is accepted as a Candidate country by the EITI Board, it has two years in which to complete the Validation process.

4. Why is 9 March 2010 significant?

In February 2008, the EITI Board decided that a “two-year rule” would apply to Candidate countries in order to complete a new process known as Validation. The 22 Candidate countries at that time were given a deadline of 9 March 2010. Therefore, 9 March 2010 marks the first ever Validation deadline in the history of the EITI.

5. What’s the big deal about a deadline?

The EITI is an international standard that is implemented nationally. The EITI Board established the Validation deadline to provide a clear timeframe in which countries are to demonstrate their progress in implementing the EITI’s Principles and Criteria. Validation is the EITI’s mechanism for quality assurance, thereby underpinning the credibility of the EITI as a global initiative.

6. When is the Validation process considered complete?

The Validation process is considered complete when a Candidate country has fulfilled the following activities:

  • The Validation report is agreed and endorsed by the country’s multi-stakeholder group, the government and the EITI Board;
  • The report has been published and is publicly available;
  • The Validator has been paid.

7. As of 9 March 2010, which countries have completed the Validation processes?

As of 9 March 2010, Azerbaijan and Liberia have completed their Validation processes. Following the completion of their Validation processes, they were also deemed to be Compliant with the EITI Principles and Criteria.

8. What about the other 20 countries facing a 9 March 2010 deadline?

Progress varies across the remaining 20 countries facing a 9 March 2010 deadline. As of 8 March 2010, eight countries have submitted draft Validation reports to the EITI Board. 7 countries are in earlier stages of the Validation process. 5 countries have not started Validation. Please refer to this table outlining country progress for more details.

9. What will happen to countries that will not have completed Validation by 9 March 2010?

Countries that do not expect to complete Validation by their deadline can apply for an extension from the EITI Board, outlining any “exceptional and unforeseen” circumstances encountered in completing Validation by the agreed deadline. Extension requests need to be sent to the EITI Board (via the EITI International Secretariat) in advance of the 9 March 2010 deadline. The extension requests need to have the backing of the multi-stakeholder group. The EITI Board will make a decision regarding extension requests at its next meeting in mid-April. Countries that are not granted an extension will face de-listing. Countries also have the option of seeking voluntary suspension.

10. Why does PWYP care so much about EITI Validation?

PWYP is a key stakeholder in the EITI. For over 7 years, PWYP has worked tirelessly at making the EITI as robust as possible. PWYP members in resource-rich countries play an active role in implementing the EITI through their participation in the national multi-stakeholder group. They also play a crucial role as the local watchdogs of the EITI. And finally, PWYP members serve on the EITI Board and help oversee EITI policy and strategy.

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