BAKU, Azerbaijan, Sept. 5
By Nargiz Sadikhova - Trend:
The Extractive Industries Transparency Initiative (EITI) encourages Kazakhstan to mainstream transparency, by disclosing information on the extractive sector through government and company systems, the organization told Trend in a written statement.
The EITI said that currently there are three areas in which Kazakhstan could increase transparency further to the benefit of its citizens.
“Firstly, as in all EITI implementing countries, the EITI encourages Kazakhstan to mainstream transparency, by disclosing information on the extractive sector through government and company systems. The country’s e-license portal is a good example of introducing transparency into government systems. Disclosing information in this way is more cost-effective over the long term and enables stakeholders to access up to date information that can inform public debate and policy decisions”.
Secondly, from 1 January 2021, countries implementing the EITI will be required to disclose any contracts and licenses that are granted, entered into, or amended, according to the organization.
“In its decision on the Validation of Kazakhstan, the EITI Board encouraged the government to work towards the comprehensive transparency of extractive contracts. Contract transparency allows citizens to understand the agreed terms for extractive projects in their countries, to check that all parties are following them, and to determine who is accountable for non-compliance.”
The EITI said the contract disclosure also allows for a comparison of different contracts.
“This can create a more level playing field and enable governments to negotiate better deals. There are already companies that support the EITI globally and are active in Kazakhstan. Many of these companies have committed to contract transparency at a global level and the EITI’s supporting company expectations.”
Thirdly, according to the EITI, increasing the transparency of state-owned enterprises – as highlighted in the most recent Validation decision.
“State-owned enterprise transparency is important in Kazakhstan because state-owned companies play an important role in the sector. Under current circumstances, where the impact of the COVID-19 pandemic and commodity price volatility may constrain future investment, extractive transparency is an essential tool in rebuilding a more open, resilient, and accountable sector, where citizens benefit from their resources,” concluded the statement.
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