Bantay Kita · PYWP Philippines
SUBNATIONAL TRANSPARENCY AND ACCOUNTABILITY FRAMEWORK
The subnational initiative is necessary because the communities affected by mining operations should be able to make informed decisions on the role of extractive activities that directly affect their lives.
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OBJECTIVES
Institutionalize transparency and accountability in each stage of the extractive industry sector value chain.
Extend transparency and accountability at the subnational level.
Strengthen the role of subnational on natural resource governance to ensure that mining contributes to sustainable development.
OPPORTUNITIES FOR T&A AT THE SUBNATIONAL LEVEL Activation of the Provincial Mining Regulatory Board (PMRB), Mining Monitoring Team (MMT) and the Mine Rehabilitation Fund Committee (MRFC) Transparent Application of Disclosure of selection EITI standards MMT reports of CSO to Small–Scale representatives Miners
Local Economic Development Opportunity to ensure that mineral extraction contributes to local economic development
Opportunity to link Social Development and Management Programs (SDMP) to local development
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Declare and segregate existing gold-rich areas for small-scale mining
FUNCTIONS OF THE PROVINCIAL MINING REGULATORY BOARD (PMRB) The PMRB is responsible for the regulation of SSM
Reserve future gold and other mining areas for small-scale mining
Award contracts to small-scale miners
TRANSPARENCY & ACCOUNTABILITY OPPORTUNITIES IN THE PMRB
Formulates and implements rules and regulations related to small-scale mining/RA 7076
Settles disputes, conflicts or litigations over conflicting claims
Performs such other functions as may be necessary to achieve the goals and objectives of People’s Small Scale Mining Act (RA 7076).
• Transparent selection of CSO representatives in the PMRB • Transparent process in the issuance of SSM licenses • Tracking of taxes and fees collected from SSM • Monitoring of environmental compliance of SSM • Disclosure of PMRB documents
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FUNCTIONS OF THE MINING MONITORING TEAM (MMT)
• To ensure and check performance of and compliance with the approved Environmental Protection and Enhancement Program (EPEP) by the Contractors/Permit Holders. • To review the independent environmental audit undertaken by the Contractor to identify environmental management system.
TRANSPARENCY & ACCOUNTABILITY OPPORTUNITIES IN THE MMT • Disclosure of how the Monitoring Trust Fund is spent. • Disclosure of the company’s AEPEP/EPEP.
• Disclosure of the MMT quarterly reports. • Transparent selection of MMT members.
FUNCTIONS OF THE MINE REHABILITATION FUND COMMITTEE
• Conducts preliminary evaluation of company’s EPEP; • Manages, operates, monitors and looks after the safety of the Mine Rehabilitation Funds that shall be established and deposited in a Government depository bank; • Resolves issues involving the progressive mine rehabilitation programs; • Hires credible experts to do independent studies and researches on the environmental, engineering and socioeconomic impacts of the mining projects ; • Ensures that the approved EPEP/AEPEPs shall be strictly implemented by the Contractor/Permit Holders; • Deputizes a Multipartite Monitoring Team (MMT) to serve as its monitoring arm with the concerned Regional Office taking the lead role; 9
FUNCTIONS OF THE MINE REHABILITATION FUND COMMITTEE
• Monitors and evaluates the performance of the MMTs and reports its assessments to the Contingent Liability and Rehabilitation Fund (CLRF) Steering Committee; • Ensures that the Monitoring Trust Funds (MTFs) and Rehabilitation Cash Funds (RCFs) shall be kept separate and distinct from one another and maintains independent and specific books of records for all transactions of the said funds of each Contractor/Permit Holder; • Prepares and submits to the Secretary/ Director, within thirty (30) calendar days after the end of each year, an annual report of accomplishments , including audited financial statements and such periodic reports of activities as may be required; and • Performs other functions as may be assigned by the Secretary/Director.
TRANSPARENCY & ACCOUNTABILITY OPPORTUNITIES IN THE MRFC • Transparent selection of CSO representative in the MRFC. • Disclosure of the audit reports of the Monitoring Trust Funds (MTFs) and Rehabilitation Cash Funds (RCFs).
• Disclosure of independent studies commissioned by the MRFC. • Disclosure of MRFC reports.
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IMPORTANCE OF GENUINE CSO REPRESENTATION
• A transparent • A selection process process in also ensures the selecting the CSO involvement and representatives in commitment of the the PMRB, MMT and community. MRFC increases the • It leads to greater credibility of these transparency and committees. accountability. • A selection process • And eventually, may ensures that the reduce conflict at representatives the community selected are level since accountable to everyone will have the sector they are equal access to representing. information and will have opportunity to be involve.
LOCAL ECONOMIC DEVELOPMENT
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POVERTY INCIDENCE AMONG POPULATION FULL YEAR 2012
LO Currently, poverty in areas where mining is being conducted remain high. Given the fair share from mining, subnational can play a role in addressing this. Except for Benguet, Nueva Viscaya and Palawan, many of the mining areas have poverty levels greater than 30% of the local population. Map Source: National Statistical Coordination Board
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THE ROLE OF SUBNATIONAL INITIATIVES ON
LOCAL ECONOMIC DEVELOPMENT Infrastructure and Human Capital To contribute to local economic development, local governments and communities must get a fair share from the extraction of the resources. Satisfying that assumption, it is important for the returns from mining to be invested on infrastructure and human capital. Income from mining should be used to improve the quality of education, health care and social services provided at the local level.
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THE ROLE OF SUBNATIONAL INITIATIVES ON
LOCAL ECONOMIC DEVELOPMENT
Economic Diversification Local governments and communities should also realize that mineral resources are finite. Therefore, there is a need to develop other forms of livelihood in the area as source of income for the communities. The returns from mining can be invested in the development of these other sectors (e.g. agriculture, fishery etc.) In particular, proceeds from mining can target the agriculture and fishery sectors where poverty incidence is high. 16
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Intergenerational Equity In addition, local governments should also consider saving some of the proceeds for the benefit of future generation. The proceeds can be saved in a trust fund or an equity fund for investment similar to the sovereign wealth fund.
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THE SOCIAL DEVELOPMENT AND MANAGEMENT PROGRAM (SDMP) SDMP should be:
75 10 15 percent
For implementation of projects and programs for social development of the community.
For the improvement of mining technology.
percent
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percent
For information, education and communication programs.
An opportunity for subnational initiative includes transparent and inclusive budgeting, planning, and monitoring framework for the SDMP linking it to the local economic development plan of local governments.
SUBNATIONAL INITIATIVES The Subnational Initiative in Compostela Valley was initiated by Gov. Uy through EO No. 020-2012. The objective of the initiative was to implement T&A in all levels of the industry value chain. It includes transparency in the FPIC process, reporting of small scale mining and the royalties received by the IPs. It also intends to track how the money was spent.
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SUBNATIONAL INITIATIVES Subnational Initiative in T’boli, South Cotabato
The small scale mining cooperatives, local governments, IP groups and the community organizations have been working together to disclose the payment of SSMs to be able to link it local development.
Initiatives in Nueva Viscaya
Nueva Viscaya has included the formation of subnational EITI in their environmental code. The province is currently defining the scope of its subnational initiative. 20
Bantay Kita 1402 West Trade Center, 132 West Avenue Brgy. Phil-Am, Quezon City, Philippines www.bantaykita.ph