'Action Plan' to Implement Extractive Industries Transparency Initiative (EITI) in Peru
31 July 2005
The EITI is an initiative spearheaded by the UK government to "ensure that the revenues from extractive industries contribute to sustainable development and poverty reduction". Peru has signed up to the initiative.
The working group, set up in December 2004 to implement the EITI in Peru, includes representatives from government, civil society and the companies operating in Peru. At the end of June 2005, and after criticism from both domestic and international campaigning groups, an Action Plan was finally published as to how the EITI will be implemented in Peru.
The plan includes publishing and auditing of payments and budget surveillance in two pilot areas, possibly Cajarmarca and Cusco. The plan has been approved by the participating NGOs and companies and the World Bank have agreed to support and fund it, but the government has stalled its implementation and have not yet approved it.
Campaigning groups have asked the government to publicly sign a memorandum of commitment to the IETI, but this has not been taken up by congress. The EITI could have a great impact on the level of transparency in mining revenues in Peru, a commitment to the core principles would mean a huge step forward, but without absolute commitment at a National level, it is unlikely that there will be any progress.