The Natural Resource Charter

Consultation SessionPWYP International Conference

17 November 2009

Award of licenses

&contracts

Regulation&

monitoring of operations

The EITI provides a Forum for dialogue and a Platform for broader reforms

RevenueDistribution

& Management

Implementation of Sustainable Development

Policies

Government Spending

Companies Disclose

Payments

Government Discloses Receipt

of Payments

Independent Verification of Tax & Royalty

Payments”EITI report”

Oversight by aMulti-Stakeholder

Group

Award of licenses

&contracts

Regulation&

monitoring of operations

RevenueDistribution

& Management

Implementation of Sustainable Development

Policies

Independent Verification of Tax & Royalty

Payments”EITI report”

The Natural Resource CharterBuilds on EITI

Charter Features

• Twelve core principles or “Precepts”

• An explanation of each Precept (Level 2)

• A detailed set of policy guidelines and prescriptions for each Precept (Level 3)

• A library and links to source documents (Level 4)

Two “Umbrella” Precepts

1. The development of natural resources should be designed to secure the maximum benefit for the citizens of the producing country.

• Companies have a business plan and economic assumptions before they do a deal;

• Countries need a plan for their extractive resources and a set of economic assumptions before they do a deal.

2. Extractive resources are public assets and decisions around their exploitation should be transparent and subject to informed public oversight.

• Red thread through entire Charter• Applies to every stage, from the decision to

extract to how the money is spent down to the community level

Two “Umbrella” Precepts

Precepts 3-6

3. Getting the best deal

4. Taxing extraction

5. National resource companies

6. Building in environmental and social protections before and during extraction

Award of licenses

&contracts

Regulation&

monitoring of operations

Precepts 7-10

7. Resource revenues should be used primarily for domestic investment

Non-renewable assets need to be replaced

8. Manage volatility

9. Improve the quality of public spending

10. Build the economy through local content and diversification

Revenue Distribution

& Management

Implementation of

Sustainable Development

Policies

Precepts 11-12The Other Players

11.The responsibilities of home governments of extraction companies

12.The responsibilities of extraction companies

What Happens Next?

• Depends on You

• “Consultation draft”

www.naturalresourcecharter.org

The Charter needs your input!