DAR ES SALAAM, Tanzania's compliance with the Extractive Industries Transparency Initiative (EITI), which promotes greater transparency and accountability in managing oil, gas and mining sectors, is a milestone for the country's economic growth prospects.
The World Bank said extractive industries contributed $305m to government revenues in the year ending June 30, 2010, up from $99m the previous year.
The World Bank's Country Director, Mr. Philippe Dongier told East African Business Week in Dar es Salaam last week that with the new gas discoveries, revenues are expected to rise significantly in the future.
"We congratulate Tanzania on achieving this milestone, which will help translate their natural resources into inclusive and sustainable economic growth," Dongier said.
The compliance with the EITI comes at a crucial time when Tanzania has made huge gas discoveries and the public is calling for responsible management of the new resources.
Compliance with EITI means that Tanzania's EITI process, launched in collaboration between government, mining companies and civil society, has been formally recognized by the EITI's international board, which made the decision last Tuesday Dec. 11.
Tanzania thus joins 17 countries that are already compliant. Another 20 are candidates for EITI compliance.
The EITI process in Tanzania commits mining companies to publishing their payments to government and commits government to publishing the revenues they receive from these companies.
"These two sets of numbers are matched up and published, giving citizens the opportunity to know of the income generated by extracting Tanzania's natural resources like gold, natural gas, and other minerals," he said.
Tanzania became an EITI candidate country in February 2009.
In support of Tanzania's efforts, the World Bank's Oil, Gas and Mining unit has used funds contributed under a Multi-donor Trust Fund to assist the country to implement the EITI principles, particularly by increasing technical capacity of government and civil society stakeholders so their participation in the process is more effective.
Source :allafrica.com
