CONSULTING SERVICES FOR INDEPENDENT ADMINISTRATOR TO PREPARE GUYANA’S 2NDEITI FOR THE FISCAL YEAR 2018
The Guyana Oil and Gas Capacity Building Project (the ‘Project’) is supported by the World Bank and aims to enhance the Government’s capacity to achieve its management goals for the petroleum sector through interventions focused on enhancing legal and institutional frameworks and strengthening the capacity of key institutions to manage the oil and gas sector in Guyana.
The Extractive Industries Transparency Initiative (EITI) is a global standard t0 promote transparency and accountability in the oil, gas and mining sectors. EITI has a robust yet flexible methodology for disclosing and reconciling company payments and government revenues in implementing countries.
EITI implementation has two core components:
• Transparency: oil, gas and mining companies disclose information about their operations, including payments to the government, and the government discloses its receipts and other relevant information on the industry. The figures are reconciled by an Independent Administrator, and published annually alongside other information about the extractive industries in accordance with the EITI Standard.
• Accountability: a multi-stakeholder group with representatives from Government, Companies and Civil Society is established to oversee the process and communicate the findings of the EITI reporting, and promote the integration of EITI into broader transparency efforts in that country.
The EITI Standard encourages the MSG to explore innovative approaches to extending EITI implementation to increase the comprehensiveness of EITI reporting and public understanding of revenues and encourage high standards of transparency and accountability in public life, government operations and in business. The requirements for implementing countries are set out in the EITI Standard 2019. Additional information is available via www.eiti.org.
It is a requirement that the MSG approves the Terms of Reference for the Independent Administrator (requirement 4.9 iii), drawing on the objectives and agreed scope of the EITI as set out in the MSG’s work plan. The MSG’s deliberations on these matters should be in accordance with the MSG’s internal governance rules and procedures (Requirement 1.4.b). The EITI requires an inclusive decision-making process throughout implementation, with each constituency being treated as a partner.
It is a requirement that the Independent Administrator be perceived by the MSG to be credible, trustworthy and technically competent (requirement 4.9.b.ii). The MSG and Independent Administrator should address any concerns regarding conflicts of interest. The EITI Report prepared by the Independent Administrator will be submitted to the MSG for approval and made publicly available in accordance with Requirement 7.1.
These Terms of Reference include “agreed upon procedures” for EITI reporting (see section 4) in accordance with EITI Requirement 4.9.b.iii. The International EITI Board had developed these procedures to promote greater consistency and reliability in EITI reporting. The EITI process should be used to complement, assess, and improve existing reporting and auditing systems. The Board recommends that the process rely as much as possible on existing procedures and institutions, so that the EITI process draws on, complements and critically evaluates existing data collection and auditing systems. In this way, the EITI process has the potential to generate important recommendations to strengthen other oversight systems.
EITI Implementation in Guyana
On the 4th May 2010 the Government of Guyana expressed Guyana’s commitment to implement EITI. On 17th November, 2015 Cabinet Decision gave approval for the continuation of the EITI Application Process and the establishment of a Steering Committee (Multi-Stakeholder Group). A ratio of 4:4:4 was agreed to provide for equal representation from each of the three (3) sectors; civil society, industry and government.
The Cabinet of Ministers of the Government of Guyana identified the Ministry of Natural Resources as the “Lead Agency responsible for implementing the Guyana-EITI”. Minister of Natural Resources, Hon Raphael G.C. Trotman was identified as GYEITI Champion to lead the implementation of EITI in Guyana.
On 22nd December, 2015 Hon. Raphael Trotman publicly announced the new government’s intention to continue Guyana’s commitment to EITI implementation as he declared the commencement of a process to establish a Multi Stakeholder Group (MSG).
On 15th February 2017 the GYEITI MSG was officially launched which comprise of twelve (12) members with four (4) representatives each from civil society, industry and government. Each MSG member has a designated alternate.
In February 2017 the Government of Guyana established the GYEITI National Secretariat within the Ministry of Natural Resources and appointed a National Coordinator and a Deputy Coordinator. The Secretariat operates under the supervision of the MSG and is tasked with carrying out the day to day administrative and operational functions of GYEITI.
In August 2017 Guyana officially submitted its candidature application to the EITI International Secretariat and on the 25th October 2017, Guyana’s EITI candidature application was accepted making the country the 53rd EITI implementing country.
On 25th April 2019 in conformity with the EITI Standard, the Cooperative Republic of Guyana submitted its 1st EITI Report to the EITI International Secretariat.
The GYEITI work plan, 1st EITI Report and Beneficial Ownership Roadmap can be viewed at the following link http://www.gyeiti.org
Guyana’s Validation deadline is 24th April 2020. Validation is the quality assurance mechanism in the EITI Standard. Validation’s assessment is heavily reliant on the last EITI Report published before this deadline.
2. OBJECTIVES AND SCOPE OF WORK
On behalf of GYEITI MSG and on its own behalf, the Government of the Cooperative Republic of Guyana seeks a competent and credible firm, free from conflicts of interest, to provide Independent Administrator services in accordance with the EITI Standard and with the directions of the Multi Stakeholder Group. The Consultancy team will provide Independent Administrator services in accordance with the EITI Standards 2019 and the directions of the MSG. The objectives of this assignment are to:
1. Prepare a Gap Analysis that covers position between the scoping study and present reality
2. Review all relevant legislations for conformance to EITI standards and make recommendations for any possible changes.
3. Produce Guyana’s 2nd EITI Report in 2020 in accordance with EITI Standards 2019 and section below.
4. Identify actions to be taken to address the recommendations from the 1st EITI Report for fiscal year 2017.
Scope of Services and Expected Deliverables
The work of the Independent Administrator has five (5) Conceptual Phases. The Independent Administrator’sresponsibilities in each phase are elaborated below.
Figure 1- Overview of the EITI Reporting process and deliverables
Phase o- Gap Analysis
• The Independent Administrator will review the Scoping Study conducted for GYEITI 1st Report and conduct a gap analysis to investigate and identify what are the likely gaps, shortfalls and issues of the scoping study and identify options, solutions and recommendations for an appropriate reporting methodology for consideration by the multi-stakeholder group in order to meet the requirement of the EITI Standard. The Gap Analysis sets the basis for producing a timely and comprehensive EITI Report. It is also an opportunity for the multi-stakeholder group to consider the feasibility of extending the scope of EITI reporting beyond the minimum requirements in order to address the objectives outlined in the GYEITI work plan.
The Gap Analysis involves looking at issues such as:
• The fiscal period to be reported;
• The comprehensiveness of the payments and revenues to be covered for oil, gas, fisheries, forestry, quarrying, bauxite and mining;
• The comprehensiveness of the companies and government entities that are required to report as defined by the MSG and in accordance with the EITI Requirement 4.1;
• Supporting the MSG with examining the audit and assurance procedures in companies and government entities participating in the EITI reporting process;
• Examine the MSG’s work plan in order to gain a clear understanding of the objectives and scope of Guyana’sEITI implementation. The IA should also review any annual progress reports that have been produced by the MSG to see the progress made in achieving the objectives.
• Assess to what extent information that is required in the EITI Standard, outlined in point 3, 4, and 5 below, or information that is otherwise relevant for achieving the objectives outlined in the MSG’s work plan, is already publicly available. Assess the timeliness, comprehensiveness and reliability of this information and provide recommendations on how publicly available data can be improved or complemented to address the EITI requirements and the MSG’s objectives.
1. The EITI Standard requires the disclosure of information about the management of the extractive industries in line with the extractive industry value chain (Requirement 2, 3, 4, 5 and 6). The Independent Administrator is expected to identify sources and disclosure options for the following information:
a) The legal and institutional framework, including disclosures related to the allocation of contracts and licenses (EITI Requirement 2.1-2.3);
b) Guyana’s policy and practices on disclosure of contracts and licenses that govern the exploration and exploitation of oil, gas and minerals and any reforms underway (Requirement 2.4);
c) the identity of the beneficial owners of companies that bid for, operate or invest in extractive assets in Guyana (EITI Requirement 2.5);
d) exploration, export and production data (EITI Requirement 3);
e) where applicable, information about the role of state-owned companies (SOE) in the extractive sector and the financial relationships between the government and the SOE, quasi-fiscal expenditures, and government ownership in oil, gas and mining companies operating in Guyana (EITI Requirement 2.6, 4.6 and 6.2);
f) information about revenue allocations and distribution of revenues in accordance with EITI Requirements 5;
g) Gather and report on gender, contextual social and environmental data on the extractive sector in Guyana
h) information about the social and economic spending, and the contribution of the extractive industries to the economy (EITI Requirement 6); and,
2. Based on the examination of the Scoping Study conducted for the 1st Report, the Independent Administrator should suggest a framework for EITI reporting suitable to the country’s situation and in line with the EITI Standard with special attention to the findings in the Preliminary analysis and inception report phase (emphasis on 1.2.1 to 1.2.4 of Standard ToRs for Independent Administrators ). To inform the options and recommendations to be presented to the MSG, the Independent Administrator is expected to:
a) assess to what extent the information set out above is available in government systems and/or corporate reports and whether it is available online and accessible and comprehensible to a significant proportion of Guyana’s citizens;
b) Assess the timeliness and reliability of the available data. If there are several public sources for the data, assess whether they are consistent;
c) Assess whether there are barriers to disclosure and recommend how gaps in publicly available information can best be addressed. The IA should assess if there is information available in government systems that is not publicly available but could easily be published online. For example, if an online license cadastre exists but does not contain all the data required by the EITI Standard, the IA should assess to what extent any missing information can be added to the existing cadastre , including a proposal for making this information publicly available;
d) Assess whether it is feasible to include in the EITI Report disclosure of other information about the sector that is more recent than the revenue data featured in the report;
e) Based on the above, present a recommendation on how the information should be captured in the EITI report: whether it is sufficient to include a link to existing information in the EITI Report or whether the EITI Report should include a partial or full description of the information, what information the Independent Administrator should collect and what can be directly drawn from the source and what weaknesses and challenges should be addressed in the EITI Report;
f) Document carefully in the Gap Analysis all information collected, the sources, and the basis for the assessments made.
3. Based on an assessment of the 1st GYEITI Report the IA is expected to provide the MSG with options and recommendations on how to strengthen disclosure practices on each of the points above primarily through integrating information into government and company portals and secondarily by publishing information in the EITI Report. The IA is expected to take into account the local premises (e.g. level of access to Internet) and international best practices.
4. The EITI Standard requires full disclosure of government revenues from the extractive sector and disclosure of material payments made by oil, gas and mining companies (Requirement 4.1.c). The IA is expected to assess the availability and reliability of revenue and payment data and explore ways how this information can best be made available. To this end, the IA is expected to undertake a comprehensive analysis of the payments and government revenue streams related to the extractive sector, noting in particular the revenue streams that must be covered in accordance with EITI Requirement 4.1(b). The analysis should also cover revenues related to the sale of the state’s share of production or other revenues collected in-kind (EITI Requirement 4.2), infrastructure provisions and other barter arrangements (4.3), transportation revenues (4.4), transactions related to state-owned enterprises (4.5), subnational payments (4.6), subnational transfers (5.2), social expenditures by extractive companies (6.1), and quasi-fiscal expenditures (6.2).
5. The Independent Administrator is expected to describe what revenue and payment data listed in point 4 above is publicly available either online or through other government or company sources. The IA should assess the timeliness, comprehensiveness and reliability of the data (EITI Requirement 4.8 and 4.9). Where disclosures are complete, the IA should make recommendations for how payment and revenue data can be made public through channels other than the EITI Report in accordance with EITI Requirement 7.2(c) . For example by embedding data into online license cadastres or including a database and/or reporting templates on government, company and/or national EITI websites. Where there are gaps in the information, the IA should make recommendations on how to address these with a view to embed EITI reporting in the future.
6. Following the analysis of revenue streams and payments, the IA is expected to:
a) Review cadastre and revenue data from 2017-2018 and make recommendations as to which of these tax payments and government revenues streams should be considered material, including suggesting materiality thresholds for company disclosure if appropriate (with reference to the guidance note 13 and EITI requirement 4).
b) Based on the proposed materiality definition by the Multi Stakeholder Group, develop a preliminary list of the companies that make material payments and should be covered in the EITI Report (EITI requirement 4.1.a). Where materiality thresholds are proposed, this should include an estimate of coverage of company payments that will be disclosed relative to total government revenues from the sector. It should also identify the total contribution of companies not required to report (i.e. those that fall below the materiality threshold), with a clear indication of the relative size of each company. (This information will inform the assessment of the comprehensiveness of the EITI Report as per Requirement 4.1)
c) For each company, identify where available :
i. Company’s Tax Payer Identification Number (TIN)
ii. Sector and phase of operation, i.e. exploration, production, oil, gas, mining etc.
iii. Type of license(s) held and the license number(s).
iv. Investigate any other information as mandated by the MSG.
d) Based on the proposed materiality definition, identify which government entities should be required to report. It should be noted that the government is required to disclose all revenues, regardless of the materiality (EITI Requirement 4.1.c). Thus where materiality thresholds for company disclosures are established, a reconciliation of the company payments and government revenues in accordance with the materiality threshold would be appropriate. Any additional government revenues (i.e. from companies below the materiality threshold) would also need to be disclosed in the EITI Report as per Requirement 4.1(c).
e) In considering which government entities should participate in the reconciliation process, the IA should identify whether sub-national government entities receive direct or indirect revenues from the extractive sector in accordance with Requirement 4.6 and Requirement 5.2.
f) Identify any legal, regulatory, administrative or practical barriers to comprehensive disclosure, and if necessary set out options and make and recommendations for addressing these barriers (see examples onguidance note 11).
7. In accordance with EITI Requirement 4.9 examine the audit and assurance procedures in companies and government entities that are likely to participate in the EITI reporting process, including the relevant laws and regulations, any reforms that are planned or underway, and whether these procedures are in line with international standards. Review the reliability of data that is already available from public sources and recommend how reliability can be improved.
8. In accordance with EITI Requirement 4.9 propose assurances to be provided by reporting entities to the Independent Administrator.
Phase 1 – Preliminary analysis and Inception Report
Objective: The purpose of the inception report phase is to confirm that the scope of the EITI reporting process has been clearly defined, including the reporting templates, data collection procedures, and the schedule for publishing the 2nd EITI Report. It is imperative that the scope of EITI reporting is clearly defined, in line with the EITI Standard and with the MSG’s agreed objectives and expectations for the EITI process. The findings from this phase should be documented in an Inception Report. The administrator shall undertake the following tasks during the inception phase:
1.1 Review the relevant background information, including the governance arrangements and tax policies in the extractive industries, the findings from any preliminary scoping work and the conclusions and recommendations from Report, inception and the 1st EITI Report (annex 1, 2 and 3).
1.2 The Independent Administrator should review the scope proposed by the MSG in annex 1 with a particular focus on the following:
1.2.1 Reviewing the comprehensiveness of the payments and revenues to be covered in the EITI Report as proposed by the MSG in Annex 1 and in accordance with EITI Requirement 4.
1.2.2 Reviewing the comprehensiveness of the companies and government entities that are required to report as defined by the MSG in Annex 1 and in accordance with EITI Requirement 4.1
1.2.3 Supporting the MSG with examining the audit and assurance procedures in companies and government entities participating in the EITI reporting process. This includes examining the relevant laws and regulations, any reforms that are planned or underway, and whether these procedures are in line with international standards. It is recommended that the EITI Report includes a summary of the findings, otherwise the MSG should make the results of the review of audit and assurance practices publicly available elsewhere.
1.2.4 Providing advice to the MSG on the reporting templates based on the agreed benefit streams to be reported and the reporting entities (1.1.1– 1.1.2 above). Sample templates are available from the 1st EITI Report and the International Secretariat. It is recommended that the templates include a provision requiring companies to report “any other material payments to government entities” above an agreed threshold. The Independent Administrator shall review the template used in the 1st EITI Report and draft the reporting templates for 2nd Report for consideration and approval by the MSG.
1.3 On the basis of 1.1 and 1.2 as applicable, produce an inception report that:
1.3.1 Review the payments and revenues to be covered in the GYEITI 2nd Report in accordance with EITI Requirement 4. The Inception Report should clearly indicate the GYEITI MSG’S decision on:
• The definition of materiality and thresholds, (as defined by the MSG annex 4) and the resulting revenue streams to be included in accordance with Requirement 4.1(b).
• The sale of the state’s share of production or other revenues collected in-kind in accordance with Requirement 4.2.
• The coverage of infrastructure provisions and barter arrangements in accordance with Requirement 4.3
• The coverage of social expenditure in accordance with Requirement 6.1.
• The coverage of transportation revenues in accordance with Requirement 4.4.
• Disclosure and reconciliation for payments to and from state owned enterprises in accordance with Requirement 4.6.
• The materiality and inclusion of direct sub-national payments in accordance with Requirement 4.5.
• The materiality and inclusion of sub-national transfers in accordance with Requirement 5.2.
• The level and type of disaggregation of the EITI Report in accordance with Requirement 4.7.
• Any other aspects as agreed by the MSG
1.3.2 Review the companies and government entities that are required to report in accordance with EITI Requirement 4.2. The Inception Report shall:
• Identify and list the companies that make material payments to the state and will be required to report in accordance with Requirement 4.2 (a)
• Identify and list the government entities that receive material payments and will be required to report in accordance with Requirement 4.2 (a).
• Identify any barriers to full government disclosure of total revenues received from each of the benefit streams agreed in the scope of the EITI Report, including revenues that fall below agreed materiality thresholds (Requirement 4.2 (b))
• Confirm the GYEITI MSG’s position on disclosure and reconciliation of payments to and from state owned enterprises in accordance with Requirement 4.2 (c)
• Confirm the GYEITI MSG’s position on materiality and inclusion of sub-national payments in accordance with Requirement 4.2 (d)
• Confirm the GYEITI MSG’s position on the materiality and inclusion of sub-national transfers in accordance with Requirement 4.2 (e)
1.4 Provide advice to the GYEITI MSG in examining the audit and assurance procedures in companies and government entities participating in the EITI reporting process in accordance with Requirement 5.2 (b). This includes examining the relevant laws and regulations, any reforms that are planned or underway, and whether these procedures are in line with international standards.
1.5 Provide advice to the GYEITI MSG on the Reporting Templates based on the agreed benefit streams to be reported and the reporting entities.
1.6 Provide advice to the GYEITI MSG on what information it should require to be provided to the Administrator by the participating companies and government entities to assure credibility of the data in accordance with Requirement 5.2(c). The Administrator should then employ professional judgement and apply appropriate international professional judgment to determine the extent to which reliance can be placed on the existing controls and audit frameworks of the companies and government entities. The Administrator should document the options considered and the rationale for the assurances to be provided. Where deemed necessary by the Administrator and the GYEITI MSG, assurances may include:
• Requesting sign-off from a senior company or government official from each reporting entity attesting that the completed reporting form is a complete and accurate record.
• Requesting a confirmation letter from the companies’ external auditor that confirmsthat the information they have submitted is comprehensive and consistent with their audited financial statements. The MSG may decide to phase in any such procedure so that the confirmation letter may be integrated into the usual work programme of the company’s auditor. Where some companies are not required by law to have an external auditor and therefore cannot provide such assurance, this should be clearly identified, and any reforms that are planned or underway should be noted.
• Where relevant and practicable, requesting that government reporting entities obtain a certification of the accuracy of the government’s disclosures from their external auditor or equivalent.
1.7. The Administrator should exercise judgement and apply appropriate professional standards in developing a procedure that provides a sufficient basis for a comprehensive and reliable EITI Report.
Table 1 – Non-revenue information to be provided in the EITI Report
Provide advice to the GYEITI MSG on agreeing appropriate provisions relating to safeguarding confidential information. Inception Report should document the options considered and the rationale for the assurances to be provided.
Phase 2- Data Collection
The Independent Administrator is expected to undertake the following tasks during the data collection phase:
2.1 Distribute the reporting templates and collect the completed forms and associated supporting documentation directly from the participating reporting entities, as well as any contextual or other information that the MSG has tasked the Independent Administrator to collect in accordance with 1.3.4 above. Where an alternative approach – e.g. where the GYEITI National Secretariat assists with data collection, or where the data is collected through an existing reporting mechanism, there should be consultations with the Independent Administrator to ensure the integrity of the information transmitted to the Independent Administrator.
2.2 At the direction of the MSG, the Independent Administrator will provide advice on ensuring that the request for data includes appropriate guidance to the reporting entities, and on where to seek additional information and support.
2.3 Contact the reporting entities directly to clarify any information gaps or discrepancies.
Phase 3 – Initial Reconciliation and initial reconciliation report
The Independent Administrator shall undertake the following tasks:
3.1 Compile a database with the data provided by the reporting entities.
3.2 Comprehensively reconcile the information disclosed by the reporting entities, identifying any discrepancies (including offsetting discrepancies) in accordance with the agreed scope.
3.3 Prepare an initial reconciliation report based on the reported (unadjusted) data for consideration by the GYEITI MSG in accordance with the agreed scope.
3.4 Identify any discrepancies above the agreed margin of error established in agreement with the MSG
Phase 4 – Investigation of discrepancies and draft EITI Report
The Independent Administrator shall undertake the following tasks:
4.1 Contact the reporting entities to clarify the causes of any significant discrepancies or other gaps in the reported data.
4.2 Prepare a draft EITI Report to the MSG for comment that comprehensively reconciles the information disclosed by the reporting entities, identifying any discrepancies, and reports on contextual and other information requested by the MSG.
The draft EITI Report shall:
• Describe the methodology adopted for the reconciliation of company payments and government revenues, and demonstrate the application of international professional standards.
• Include a description of all revenue streams, related materiality definitions and thresholds (Requirement 4.1).
• Include an assessment from the Independent Administrator on the comprehensiveness and reliability of the (financial) data presented, including an informative summary of the work performed by the Independent Administrator and the limitations of the assessment provided.
• Indicate the coverage of the reconciliation exercise, based on the government’s disclosure of total revenues as per Requirement 4.1(d).
• Include an assessment of whether all companies and government entities within the agreed scope of the EITI reporting process provided the requested information. Any gaps or weaknesses in reporting to the Independent Administrator must be disclosed in the EITI Report, including naming any entities that failed to comply with the agreed procedures, and an assessment of whether this is likely to have had material impact on the comprehensiveness of the report.
• Document whether the participating companies and government entities had their financial statements audited in the financial year(s) covered by the EITI Report. Any gaps or weaknesses must be disclosed. Where audited financial statements are publicly available, it is recommended that the EITI Report advises readers on how to access this information.
• Include non-revenue information as per Requirement 2,3,5 and 6 and other information requested by the MSG. The contextual information should be clearly sourced in accordance with the procedures agreed by the Independent Administrator and the MSG.
4.3 Comment on the progress in implementing the corrective actions and reforms recommended in the 1st EITI Report. The Administrator should make recommendations for strengthening the reporting process in the future.
Phase 5 – Final EITI Report
The Administrator shall undertake the following tasks:
5.1 Produce electronic data files that can be published together with the final EITI Report.
5.2 Produce electronic data files that can/or code or tage EITI Reports and data files preferably in an Open Data format (xlsx or csv) online and publicize its availability in accordance with requirement 7.1(c).
5.3 Submit summary data from the EITI Report electronically to the International Secretariat according to the standardized reporting format following approval by the GYEITI MSG of the EITI Report.
5.4 The Independent Administrator shall take appropriate measures to ensure that the report is comprehensible and available in an open data format (xlsx or csv) as per requirement 7.1 (c). This includes ensuring that the report has high levels of readability, legibility and usability. The MSG may wish to request that the report be edited by a professional copy-editor and/or be designed by a professional graphical designer.
The Administrator will publish the final EITI Report only upon the instruction of the GYEITI MSG. The GYEITI MSG will endorse the EITI Report prior to its publication. Where stakeholders other than the Administrator wish to include additional comments, authorship should be clearly indicated.
3. DELIVERABLES AND OUTPUTS
The Consultant’s deliverables shall include the following:
a) A Gap Analysis report that includes the present reality, recommendations and challenges.
(b) The development of Reporting Templates and the preparation of reporting guidelines for data on payments made by the Companies and data on revenues received by government.
c) The collection and reconciliation of payments and revenue data from the Companies and Government respectively for the fiscal year 2018 in accordance with international professional accounting standards. Companies and Government reporting entities will be required to have their Reporting Templates certified by their auditors before submission to the Administrator. In cases where data have not been certified or audited to international standards to the satisfaction of the Administrator, the Administrator shall request supporting documentation ( audited financial statements etc.) to verify the accuracy of the data from the companies and the government.
d) Reporting on the total mining and oil and gas for which payments were made and revenue collected for each fiscal period;
e) Preparation of a list of all licensed or registered companies involved in the extractive industries, noting which companies participated in the EITI reporting process and those that did not (with an indication of the relative size, whether by production or revenue/payments) and the reasons for their non-participation;
f) Reporting on companies and government agencies that failed to participate in the reporting process, if any with an assessment of whether that had a material impact on the stated figures and conclusions reported;
g) Investigation of and explanation for any discrepancies shown in the Report between the payments and revenue data received;
h) Opinions on the quality of data received and the process of collection with recommendations for improving the process;
i) Final report, presenting aggregated data of payments made by the companies and revenue received by government in accordance with international professional standards;
j) Printed copies and electronic versions of the Report (both draft and final) for the MSG’s approval;
k) Direct discussions with the respective stakeholders to develop consensus on the format of reporting templates;
l) Clear guidelines and documented procedures for the companies and government for the completion of the reporting templates;
m) Workshops, organized by and in consultation with the MSG to train companies and government personnel in the completion of the reporting templates.
4. EXPECTED EXPERIENCE AND REQUIRED QUALIFICATIONS
The reconciliation of company payments and government revenues must be undertaken by an Independent Administrator applying international professional standards (requirement 4.9). It is a requirement that the Independent Administrator is perceived by the MSG to be credible, trustworthy and technically competent. Bidders must follow (and show how they will apply) the appropriate professional standards for the reconciliation / agreed-upon-procedures work in preparing their report.
The Independent Administrator shall demonstrate:
• Expertise and experience in the oil, gas and mining sectors in Guyana.
• Expertise in accounting, auditing and financial analysis.
• A track record in similar work. Previous experience in EITI reporting is not required, but would be advantageous.
• Availability of staff with appropriate skills to complete the required task on schedule.
The key members of the Consultant’s team shall not change throughout the duration of the contract with the Department of Energy, Ministry of the Presidency, save and except with the prior approval of the Department of Energy.
In order to ensure the quality and independence of the exercise, Independent Administrators are required, in their proposal, to disclose any actual or potential conflicts of interest, together with commentary on how any such conflict can be avoided.
5. Reporting Requirements and Time Schedule for Deliveries.
The assignment is expected to commence on (date to be inserted), culminating in the finalization of the EITI Report by (date to be inserted). The proposed schedule is set out below:
The schedule of payments shall be as follows:
10% following contract signing
30% following delivery and acceptance of the Gap Analysis Report outputs.
30% following delivery and acceptance of the draft EITI report.
30% following MSG approval and publication of the EITI report.
6. IMPLEMENTATION ARRANGEMENTS
The Administrator will report to the GYEITI MSG through the GYEITI Secretariat. The Administrator will be assisted by the GYEITI Secretariat in facilitating any logistical and administrative arrangements between the Administrator and the reporting companies and government reporting entities.
The project will be executed over the period November 2019 to March 2020 during which time one EITI report will be produced.
7. CONFLICT OF INTEREST
The Consultant is required to comment on any potential, actual, or perceived conflicts of interest arising out of other assignments or a conflicting involvement in other assignments. Where the Consultant currently represents any party or potential stakeholders that would create conflict of interest or to the extent any conflict of interest would arise in the future, the Consultant shall detail any measures that may be required to avoid conflicts of interest in connection with the implementation of this assignment.
The Consultant and / or its employees agree to keep confidential all information that these receive, directly or indirectly, from the Authorities, its agencies or ministries, and any other stakeholder, as well as all copies or analyses that it makes, or have been made by third parties, on the basis of such information (collectively, the Material). The Consultant will use the Material exclusively for the purpose of preparing deliverables relevant to this assignment. The confidentiality obligations will not apply to information in the public domain. The Consultant will only permit access to the Material to persons within their organizations on a need-to-know basis. The Consultant will explicitly inform such persons of the confidential nature of the Material and, prior to providing them the Material, subject them to the confidential obligations contained in these Terms of Reference.