afrol News, 25 September - The United States has enhanced its ability to promote revenue transparency around the world by contributing $6 million to the Extractive Industries Transparency Initiative (EITI) trust fund facility.

The contribution is part of the administration’s commitment to foster good governance and cultivate effective development in resource-rich countries, most of which are in the sub-Saharan Africa.

The EITI trust fund facility, administered by the World Bank, provides countries with grant resources to implement the EITI principles of revenue transparency. The trust fund finances technical assistance, capacity building, and global knowledge sharing activities in EITI implementing countries. The trust fund also works with those countries considering EITI implementation, and currently has work plans in over 40 countries.

The EITI calls for full, public disclosure and verification of oil, gas, and mining company payments to host governments and disclosure of the host governments’ revenues from these industries. It is a voluntary process that brings together willing governments, businesses, and civil society organizations to improve governance so that citizens can reap the benefits of extractive industry revenues.

Currently, 30 countries are implementing EITI, each undertaking a multi-step process to strengthen resource revenue transparency. The Department of State represents the US government in the EITI Board. USAID manages the funding mechanism and is engaged in the technical agenda. With the contribution, the United States gains representation on the Management Committee, which has oversight of the trust fund.

Secretary of State Hillary Clinton has made clear that the United States strongly supports EITI and its revenue transparency goals, has proudly noted that the US has been an active participant in EITI since its inception, and believes this contribution to the trust fund only intensifies America’s engagement and role in the promotion of transparency.

The State Department's Coordinator for International Energy Affairs, David Goldwyn said, "We hope the US contribution to the trust fund will help EITI candidates reach compliant status and help countries utilise their new-found resources in the best interests of their citizenry."

By staff writer

© afrol News

Related pages and feature

Current afrol News Top Stories