Ms. Esther Petrilli IFC/World Bank Room F8K-322 2121 Pennsylvania Ave., NW Washington, DC 20433 April 30, 2008 Dear Esther, On behalf of the Revenue Watch Institute I am pleased to submit the Final Narrative Report for the project Development Grant Facility (DGF) 2006 and 2007 grants 202706-11 and 202707-11. This joint program sought to support capacity building for civil society groups in EITI implementing countries in Sub-Saharan Africa. Over the course of the two year project RWI has supported 11 civil society organizations in 8 sub-Saharan African countries. We are pleased to say that 7 of the 8 countries supported under the DGF achieved EITI “Candidate Country” status during the pre-validation process as a direct result of World Bank financing and RWI technical and financial support. We are grateful to the World Bank for its support of this important initiative, and look forward to continued cooperation on the promotion of transparency and good governance in the extractive industries. A hardcopy of this report has been sent to your attention via post. Please do not hesitate to contact us if you have any remaining questions. All the best, Morgan Mandeville Program Officer, Revenue Watch Institute Enclosed:

1. Final Narrative Report 2. Annexes to the Report

a. Budget Narrative

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April 30, 2008

REVENUE WATCH INSTITUTE FINAL REPORT

FOR THE WORLD BANK – DEVELOPMENT GRANT FACILITY Grant No./DGF File: 202706-11 Grant No./DGF File: 202707-11

I. Introduction II. Program Management and Implementation III. Statement of Findings IV. Recommendations and Conclusions Annex 1: Budget Narrative

I. Introduction

Over the course of the two year World Bank Development Grant Facility (FY2006 and FY2007) RWI received a total of $516,944 USD in grant funds for the purposes of supporting civil society involvement in the implementation of the Extractive Industries Transparency Initiative (EITI) in sub-Saharan Africa. The Development Grant Facility partnership had several key objectives in relation to the implementation of the EITI:

Increase civil society organizations’ (CSOs) awareness of the Extractive Industries Transparency Initiative (EITI)

Improve understanding among CSOs of the EITI principles, criteria and implementation process

Develop an understanding among CSOs of the essential elements of the oil, gas and mining industries and the related fiscal arrangements so as to improve their understanding of EITI

Strengthen the capacity of CSOs to communicate with the broader population about the EITI and its implementation in their country

Improve coordination among CSOs in order to play a more effective role as stakeholders in the EITI implementation process

Reinforce inclusion in the EITI process of CSOs outside of main metropolitan centers, and from oil, gas and mining regions and communities

Strengthen contacts and coordination among CSOs at a regional and global level in relation to EITI

We are pleased to say that 7 of the 8 countries supported under the DGF program achieved EITI “Candidate Country” status during the pre-validation process as a direct

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result of World Bank and RWI financial and technical support by ensuring free and meaningful participation of civil society at the country level. The DGF program resulted in building a broader base of EITI knowledge and support in the target countries, enhanced the sophistication of knowledge among civil society of EITI processes and the role of CSOs for influencing the initiative at the country level, and improved the capacity of stakeholders to follow-up on recommendations from EITI reports and take forward new projects in direct response. Working with coalitions at the country level has attuned RWI to the diverse levels of expertise and experience that exist between national coalitions in the region. The activities conducted by our sub-grantees have also highlighted the importance of experience-sharing and knowledge transfer between producing country partners in an effort to promote further development of local expertise, and several of our project partners have now begun to mentor other national coalitions as a direct result of this program.

II. Program Management and Implementation The DGF project was administered in two phases, once in July 2006 and once in March 2007. Together with the World Bank (WB), RWI issued two requests for proposals, disseminated them widely across pre-established priority countries and received almost 80 applications in total over the two-year window from civil society organizations in over 20 countries. RWI and the WB reviewed these proposals, assessing the projects against a set of criteria that focus on the project's relevance to EITI and its ability to reinforce partnerships. The primary questions we addressed were: • Strategic importance in terms of moving forward EITI implementation with

participation of governments, extractive companies, affected local communities, and other relevant civil society groups,

• Contribution to addressing the important issues for EITI, such as raising public awareness, building capacity, creating credible EITI coalitions/partnerships, training for NGOs media and communities, combating corruption, and poverty reduction,

• Implications for the broader EITI agenda e.g. regional or sectoral impacts (multi-country benefit, knowledge sharing, revenue management issue),

• Does the project promote and reinforce partnerships with key players in the development arena, e.g.; multilateral development banks, UN agencies, foundations, bilateral donors, professional associations, research institutes, private sector corporations, NGOs, and civil society organizations,

• Are the proposed activities geared towards enhancement of local capacities, e.g. an explicit emphasis on the sustainable development of skill-sets, intellectual resources and organizational capacities of relevant parties that contribute to the promotion of public finance accountability and transparency in resource dependent countries.

After RWI's internal review and assessments, the short-listed projects/candidates were sent on to the World Bank to be reviewed and assessed by the relevant country offices

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and Task Team Leaders (TTLs). Simultaneously, RWI also gathered feedback and input on the short-listed applicants from local Soros Foundation Network partners including the Open Society Initiative for Southern Africa (OSISA), the Open Society Initiative for West Africa (OSIWA), Publish What You Pay Regional Africa Coordinator Matteo Pelligrini, former Publish What You Pay International Coordinator Henry Parham, and local international partners including the Netherlands’s Institute for Southern Africa (NIZA). After extensive consultation RWI awarded World Bank DGF funding to the following organizations in 2006 and 2007: 1. Integrated Social Development Center (ISODEC) – Ghana 2. National Advocacy Coalition on the Extractives (NACE) – Sierra Leone 3. Association Africaine de Defense des Droits de l’Homme (ASADHO Katanga) – DRC 4. Association des Femmes Chefs de Famille (AFCF) – Mauritania 5. Catholic Relief Services Cameroon (CRS) - Cameroon 6. Réseau des Journalistes pour les Droits de l'Homme (RJDH) - Niger 7. Publiez Ce que Vous Payez Côte d’Ivoire (PCQVP) - Cote d'Ivoire 8. l’Association Guinéenne pour la Transparence (AGT) - Guinea Conakry 9. Publiez Ce que Vous Payez / EITI Cameroon Coalition (CRS) - Cameroon 10. CRONGD Kasai Oriental (Eastern Kasai Coalition) – Democratic Republic of Congo 11. Réseau des Organisations pour la Transparence et l’Analyse Budgétaire (ROTAB) - Niger Not only did the selected projects reinforce the priorities of the WB’s Development Grant Facility, they also directly supported two of RWI's primary benchmarks for 2006-2008 with regard to expanding EITI participation, namely that new countries sign up to EITI and that currently implementing countries move forward along their EITI action plans and begin reporting, with active participation and pressure from CSO's and the media.

III. Statement of Findings

In the narrative statement of findings below, we have detailed the specific groups and activities that were funded under this grant facility, the achievements and challenges of the projects, and the lessons learned by RWI and its sub-grantees. GHANA The project funded under this grant facility focused on educating Ghanaian civil society on the principles of EITI and how those principles encourage accountable and responsible governance on the part of governments and mining companies with regard to natural resource exploitation and revenue management. The project was managed by ISODEC on behalf of the PWYP-Ghana coalition, and sought to build the interest and capacity of civil society groups, especially at the community level to engage on EITI, revenue monitoring and advocacy towards participatory community-based planning in the

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extractives sector. The major stages of project implementation were: public education and sensitization (radio/TV discussions), community mobilization (community workshops/training on budget analysis, sound resource utilization etc), capacity building (training on monitoring, evaluation and tracking mechanisms based on the content of the GEITI reporting templates), and coordination and networking. Achievements and Milestones As a direct result of DGF and RWI support, Ghana achieved EITI “Candidate Country” status in September 2007 after a successful pre-validation process. At the time when DGF support was awarded (in December, 2006), the Ghana PWYP Coalition had just been launched, following a series of community mobilization seminars organized in the four mining enclaves of Ghana, and a strategic planning meeting. The challenge at the time was to organize the citizenry of the four major mining enclaves; incorporate them into the PWYP campaign; and deepen their understanding of the essence of the EITI initiative and the role civil society ought to play. A team of communication / media experts were quickly assembled to develop a strategy paper for meeting the challenge. The team’s draft document recommended an initial approach that relied heavily on interactive communication. The purpose was to create room for immediate feedback and to be able to provide rapid response to the queries of community members. The suggested communication forms were: sensitization / training workshops which blended into them, field trips aimed at providing insight into the social and environmental cost of mining, and therefore the need for all members of the community to be part of an initiative that seeks to improve the development outcomes of mining. At the same time, the multi-stakeholder committee of GEITI was planning a national conference on EITI implementation (January 2007) and there was an urgent need to consolidate civil society demands and expectations of the EITI process. In response PWYP Ghana/ISODEC organized a 2-day community-based sensitization & training workshop in January at Oboasi, Ghana’s oldest mining enclave (and home to Anglo-Gold Ashanti). The workshop looked at the issues of mining and development, focusing on the legal and regulatory framework of the mining sector (contracts, environmental impact assessment, social responsibility agreements etc) as well as an overview of mining sector revenue streams and their disbursements. Participants were also taken through the principles, criteria and validation process of EITI, the role of civil society in the process, and the monitoring framework for effective engagement (budgets and revenue tracking) and EITI reporting templates. The workshop provided the opportunity to discuss and formulate a civil society response to Ghana’s EITI Inception Report (which was to be discussed at the aforementioned multi-stakeholder conference), and which was then in its draft stage; as well as collate and firm-up a set of civil society demands on the Ghana EITI process. This strategy allowed for civil society to constructively engage in the multi-stakeholder discussions. PWYP-Ghana sponsored 8 community members drawn from the four mining enclaves to the conference. It was a welcomed opportunity to state PWYP’s demands on EITI in Ghana, namely: to bring on board all other legitimate concerns not captured in the

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current framework, including other dimensions of transparency, such as contracts, policy formulation, regulatory regime, social and environmental costs and compensation, and also to bring on board other extractive sector activities. The success of the Oboasi workshop prompted ISODEC to subsequently replicate the process it the western regional mining enclave of Tarkwa and the Ahafo mining enclave of Sunyani. The first EITI report in Ghana was completed in February 2007, and as part of ISODEC’s strategy to mobilize civil society around its publication it commissioned Richard Murphy, a UK tax expert to undertake a technical review of the report. Following the submission of the independent critique, ISODEC arranged a civil society technical roundtable to discuss the report’s findings. The roundtable drew the participation of coalition members, private legal practitioners, geologists from academia and the accounting firm responsible for conducting the EITI audit. The roundtable also provided the platform for formulating a civil society response to the first EITI report, and a consensus emerged to push for disaggregated reporting as part of the current reform of international securities and accounting standards. During the program implementation period, ISODEC developed a revenue flow and utilization monitoring framework and tools for use by community members. This followed the constitution of 7-member revenue monitoring teams in the four major mining enclaves of Ghana, known as the Extractive Engagement Groups. The Extractive Engagement Groups constitute the sub-national governing structure for the PWYP-Ghana Coalition. They are responsible for the coordination and implementation of PWYP-Ghana activities at the district level. In cooperation with the Extractive Engagement Groups, ISODEC organized four separate training sessions for the Eastern, Western, Ashanti, and Ahafo zones on the revenue monitoring framework and the use of the designed templates for data gathering on revenue flow and utilization at the district level. Overall the cumulative outcome of ISODEC’s intervention has been an increased capacity of CSO’s to engage government and industry stakeholders on extractive industry policies, and improved awareness and galvanized community support for EITI implementation throughout Ghana. In addition to all of the Coalition’s work on the domestic front, ISODEC continues to offer its unlimited support to other national coalitions in the sub-region, notably Sierra Leone and Liberia, to transfer the knowledge and lessons it has learned throughout this project for the benefit of other African coalitions promoting EITI and resource revenue transparency in the region. Challenges Two major challenges were encountered during the implementation of the proposal - the lack of co-operation of traditional authorities (particularly New Ebirem in the Eastern Mining Enclave home to Newmont Lassource) and how to accommodate the incessant demand of the mining communities for social and environmental accountability on the part of mining companies within the EITI framework.

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During one of PWYP’s community mobilization activities in the Eastern Mining Enclave (New Ebirem), the traditional authority met representatives of PWYP-Steering Committee with some hostility. The chief of Yayaso, a suburb of New Ebirem blatantly refused the team permission to hold a community meeting on EITI in town and threatened to send his palace security to disrupt any such meeting if the order was ignored. When the venue was changed to New Ebirem as a result of his threats, this same chief sent word to the New Ebirem chief to also prohibit such a meeting because PWYP was conspiring against Newmont’s activities in the area. The PWYP-Ghana team later discovered that Newmont had a hand in the attempts to disrupt the planned meeting. The company had apparently expressed interest in attending the meeting earlier, but the request was turned down by the Eastern Regional focal person for the campaign on the grounds that it was a purely civil society meeting. It is believed that the company may have asked the traditional authorities to prevent such meetings from taking place. Newmont subsequently went ahead to organize a counter meeting, apparently to discuss issues of crop compensation, on the same day the PWYP-Ghana meeting had been planned. PWYP’s response was to wait until Newmont’s hurriedly organized community seminar was over, and then go from house to house to gather the people for the PWYP-Ghana meeting. In the subsequent sensitization and training workshop, PWYP-Ghana invited the company to attend. The invitation was accepted, although as the Community Relations Officer of the company revealed in his message to participants, that Newmont was surprised to receive an invitation from what he described as an anti-mining group. At the conclusion of the meeting, the company’s representatives apparently became convinced that there was no alternative motive to PWYP’s activities in the area other than mobilizing support for EITI (which Newmont has on its own accord acceded to). Participants were therefore invited to the company’s premises for further discussions on their concerns on the last day of the workshop. Subsequently, Newmont requested ISODEC to conduct a three day training on EITI for its senior staff at the Akyem Mine. The second challenge - which had to do with the incessant demands for social and environmental accountability on the part of mining companies operating in Ghana -permeated almost all the meetings and workshops organized in the communities during the project implementation period. The coalition agrees with these concerns and subsequently incorporated these issues into its recommendations for EITI implementation. The difficulty however is how to accommodate these concerns within the current EITI framework. PWYP Ghana has decided to organize a technical roundtable to solicit ideas for the purpose of developing a social and environmental accountability template, which will then be piloted for inclusion in future GEITI reports. One of the results from these consultations is the recent creation of framework for social audits which the coalition hopes to pilot in the coming year.

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Lessons-Learned There were no major unforeseen developments that significantly impacted the project, however increasing militarization of mining communities by the state security apparatus (and in collaboration with the mining companies) has increased tension and mistrust between the companies and the communities in which they operate, with some community members dismissing the EITI initiative as not addressing the core of the concerns they have with regard to the activities of mining companies. Most of the members of PWYP-Ghana also belong to the National Coalition on Mining (NCOM), which seeks to carry forward those human right concerns not captured in the EITI framework. There seems to be a sharp divide between mining companies in Ghana and organized civil society working on environmental, mining, and mining policy related issues. This divide is reinforced by mutual suspicion, which makes collaboration on an initiative like EITI even more strained. It would be in the best interest of all stakeholders if both the companies and organized civil society dealt with their mutual suspicion through openness in their activities and engagements. The companies could particularly help in this regard by resisting from unduly influencing traditional authorities. Although EITI is limited both in scope and content, concerted attempts should be made to accommodate other legitimate accountability concerns of mining-affected communities as noted previously. SIERRA LEONE This project sought to educate civil society in Sierra Leone on the principles of EITI and how those principles ensure accountable and responsible governance on the part of governments and mining companies in natural resource exploitation and revenue management. RWI provided support under this grant facility to the National Advocacy Coalition on the Extractives (NACE), whose aim was to build the interest and capacity of civil society groups, especially at the community level, around transparent and participatory management of public resources through a series of trainings, regional exchanges, and research and advocacy projects. Achievements and Milestones Due in large part to the work of NACE carried out within the DGF/RWI joint grant facility, Sierra Leone officially signed on to the EITI process in June 2007 and successfully achieved EITI “Candidate Country” status in February 2008. Throughout the duration of the project term, NACE successfully conducted regional consultations with civil society organizations, representatives from district councils and traditional authorities in Bo, Kenema, and Makeni to discuss the creation of regional PWYP networks. NACE also conducted workshops and seminars to promote public education and awareness around EITI in the regions. These promotional activities included production of EITI educational materials, brochures and flyers, local radio programs, and Q&A public forums.

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NACE also conducted training sessions for civil society organizations in mining communities of Rutile, Kono, Port Loko and Solima on issues of contracts, budget analysis and advocacy, and campaigning for better mining resource utilization. These activities included training on collecting and collating data, tools for monitoring extractive sector expenditures and allocations, research and analysis. In order to improve the capacity of the coalition itself, NACE engaged in study tours and exchanges with colleagues in the sub-region, particularly the PWYP coalitions in Ghana and Nigeria which offered NACE valuable mentoring experience and knowledge transfer. As a complementary component to the capacity building project, NACE also commissioned the University’s Geology Department to conduct a research product that profiles the mining companies active in the country and the scope of their engagements. The research included desk and field studies on the status and operations of all mining companies in the country, investigations into the sources of financing, and details of the socio-economic and environmental impacts of the operations of each company. The report will be used by civil society to craft recommendations to the multi-stakeholder committee as EITI continues to gain progress. Challenges Although Sierra Leone was ultimately successful in the pre-validation process, it was a contentious process that required hands on support from RWI and PWYP International. Following the government’s official EITI launch in June 2007 progress was made on several criteria leaving the adoption of the final costed work-plan as the last necessary step to achieve candidate country status. However in August 2007 a new government was elected resulting in the turnover of several key EITI stakeholders, in particular the government champion based at the Ministry for Presidential Affairs. While NACE adapted its activities to work with the new government, this required considerable efforts to bring the new members up to speed on the EITI process to pick up where the previous administration had left off. At the same time it was perceived by SLEITI stakeholders that the local World Bank consultant seemed to derail progress by taking advantage of this transition to put forth a separate work plan which it felt was better then what local stakeholders had collectively approved with the previous administration. This deviation from the principles of local ownership has been extremely frustrating for local civil society and the SLEITI Committee in general, particularly the way in which the second work plan emerged. The creation of a parallel document appears to have led to unnecessary confusion and delay in the implementation process particularly because the civil society and government stakeholders on the National Committee were never even aware that there were perceived problems and/or required modifications needed with the work plan they had previously adopted. Though the elections and the change of government explain part of the delay, it appears that the role of the WB consultant and its relationship with the Steering Committee was ultimately counterproductive. The tensions

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stemmed from the lack of clarity on the responsibility and legitimacy of the Steering Committee in the SLEITI and the technical support role of the consultant to this body. Lessons-Learned Although the challenges were ultimately overcome with the assistance of RWI and PWYP and intervention with the EITI Secretariat, the situation is cause for concern and illustrates the fragility of the EITI process. It underpins the importance of the “locally driven” principle of the initiative and reinforces the need for flexibility by outside actors and the donor community. NIGER Within the scope of the DGF program, RWI chose to support two complementary organizations in Niger that were both founding members of the country’s PWYP coalition - Réseau des Journalistes pour les Droits de l'Homme (RJDH) and Réseau des Organisations pour la Transparence et l’Analyse Budgétaire (ROTAB). Together these two projects sought to increase the capacity of the PWYP Coalition members to better understand the origins, objectives, principles and criteria of the EITI and strengthen the capacities of journalists so that they play a leading role in terms of public awareness and advocacy for greater transparency in Niger’s extractives sector. These programs included training CSO’s in EITI principles and criteria, raising public awareness of the importance of transparent revenue management, enhancing the network of CSOs and local communities, building the capacity of the media to conduct their own analyses of information, increase awareness of mining affected communities and locally elected officials on the issues of resource revenue transparency Achievements and Milestones Complementary to RWI and the WB’s funding priorities under this grant facility, the Niger projects looked at sectoral management issues as well as EITI with a strong focus on raising public awareness, capacity building, the media, and action strategies to help move forward EITI implementation. By engaging Rotab and RJDH to work collaboratively the project was able to focus on a very targeted set of EITI and oil/gas/mining education plans along with a series of dissemination-oriented activities with diverse means of raising awareness and getting local communities energized about the issues. Radio programs (12 in total) and printed materials (brochures, newsletters, and FAQ leaflets) were produced in French (the national language) as well as Huasa and Zarma (the most widely spoken regional languages). Radio programs were broadcast on 120 stations – 99 community stations and 21 privately-owned stations. The coalition also engaged in televised debates which took a constructively critical look at EITI implementation in Niger. The debates highlighted that although Niger has made progress in the start-up stage of the initiative with the creation of decision making structures and the development of an action plan, all of the implementation stages remain to be done. The debate also enabled civil society organizations and the media to

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reaffirm their commitment to using legislative means to ensure that the country’s endorsement of EITI does not remain mere rhetoric. For promoting the inclusion of civil society organizations located outside the primary metropolitan areas, and more specifically the communities living close to the areas affected by oil, gas, or mining exploitation in the EITI process - the Coalition focused on crafting creative strategies for raising public awareness among marginalized populations because of the high level of illiteracy in producing communities. In particular the coalition conducted trainings for illiterate workers on the process origins, principles, and criteria of EITI, as well as the transparent management resource revenues, environmental deterioration, and health-related consequences. Challenges Due to escalating armed conflict in northern Niger (between the Movement for Niger People for Armed Justice and the Niger Armed Forces) during the project implementation period RJDH and Rotab had to alter certain program components. Access to certain mining areas was prohibited by the government making execution of the awareness caravans impossible. The coalition thus adapted its activities by persuading the leading radio station ‘Alternative’ (the most widely listened too) to broadcast five organized debates. These debates focused on the following topics: transparency of gold mining in Samira, conditions for issuing oil and mining exploration permits, price increases for uranium and other economic impacts of the armed conflict, the role of civil society in promoting transparency in the extractive industries, the impacts on the new mining law on producing communities. Each debate was moderated by different leading CSO activsts. Lessons-Learned This project demonstrated the importance of promoting solidarity among coalition members to reinforce the spirit of partnership and collaboration (a key priority of the World Bank and RWI!). To often coalitions fail to realize this key component to successful advocacy initiatives, and we commend the Niger Coalition’s efforts to instill such principles in the early years of their organizational development. In addition to the output-related impacts on media engagement mentioned, the implementation of this project created a space for the issue of EI transparency in the agenda of public and political debates. In this regard, it is important to stress that the training workshops allowed NGOs, journalists, and policymakers to better understand what is at stake under EITI, its requirements, and primarily how it is implemented. This project has, without a doubt, contributed to the emergence of a dynamic civil society. The program also illustrated the importance of a well informed press. As a result of the coalition’s advocacy campaigns, the Parliament set up a parliamentary investigation committee on gold mining in Samira.

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COTE D’IVOIRE Unfortunately Cote d’Ivoire is the one country funded under the DGF program that did not meet the pre-validation criteria to be considered and EITI “Candidate Country”. This was due primarily to delays in finalizing a work plan among Steering Committee members, although it should be noted that the EITI Secretariat should have played a more active role in helping the country overcome this hurdle in time for the pre-validation deadline. That being said, in respect to the work of civl society, the PWYP-CI coalition engaged in several meaningful activities as a result of this facility which has allowed the country to make great progress towards spawning a movement for resource revenue transparency. The project also uncovered several insights and lessons-learned of relevance to donors working on these issues. The activities carried out under this program sought to increase citizen awareness of the EITI (its principles, criteria, and process for implementation) and work with parliamentarians to institutionalize EITI through legislative reforms so that civil society and government can work together towards the initiative’s implementation. Achievements and Milestones One of the primary activities of the coalition was training and awareness seminars for civil society and NGOs on the EITI process. The seminar covered the ABC’s of EITI by discussing the origins of the initiative, the criteria and principles of EITI, and other country examples of how the process is implemented in practice. However the coalition also sought to cover components that drew links between resource revenue transparency and human development and poverty reduction. This linkage is an integral part of advocacy and public awareness because it illustrates the impact that good governance initiatives have on improving living standards for average citizens, and thus the coalition dedicated sessions of the seminar to discussing EITI in the context of wider development. The seminars resulted in increased media coverage (both print and television) on the extractive industries, as well as increased interest on these issues among local NGOs who sought out the coalition for several follow-up discussions and avenues for increased involvement. As a complementary component to the citizen awareness workshops, the coalition also conducted seminars for the “agoras” and public parliaments. These sessions also covered the ABC’s of EITI while simultaneously focusing on the benefits that transparency creates for governments, particularly the links between good governance, improved business climate, and increased capital investment for the country. The coalition also successfully engaged in several executive and legislative advocacy activities which RWI had, during the proposal review stage, been unsure that civil society could actually leverage. Much to our delight, PWYP-CI held meetings with several parliamentary deputies, as well as the parliament administration, the Secretary for Good Governance, the Ministry of Economy and Finance, the Director of Privatization, the Coordinator of the Oil Committee, leaders of the key political parties, and the Director of Hydrocarbons at the Ministry of Energy and Mines. During these individual meetings,

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PWYP-CI covered the basics of EITI and provided recommendations for how implementation in Cote d’Ivoire could move forward. As a result of these discussions, several of the leading government stakeholders requested follow-up meetings so that they could get more in depth training for themselves and their staff! In addition, several unexpected statements were made by public officials about EITI and the state of the extractive industries in Cote d’Ivoire (this was a welcome surprise, and clearly illustrates the impact that civil society pressure had on the country’s leaders who previously never felt compelled to address these issues in public fora). To complement the trainings and advocacy meetings, the coalition also held several press briefings. By disseminating information obtained from policymakers during the advocacy meetings in conjunction with subsequent public statements by government, the press has in fact increased the dialogue between civil society and government. The coalition has also witnessed a noticeable change in the availability of policymakers to discuss these issues as well as publish some figures on resource revenues in the state budget which was previously unheard of (oil revenues now appear in the 2008 state budget)! Challenges The other major activity conducted by PWYP-CI was the drafting of legislation to institutionalize EITI. Although this is an achievement in itself, it also remains one of the key challenges that the coalition faced under this project. With the assistance of specialists and legal experts, the coalition drafted a proposed law and decree to begin a framework for EITI implementation. However the current political situation has brought uncertainty to the role of the parliament and its oversight functions. In 2007 a political agreement extended the term of the country’s president who subsequently used a presidential decree to extend the term of the parliament which had expired in 2005 by giving it a mandate to focus on the country’s continuing domestic and military strife. As a result of this decree, the role and responsibilities of certain institutions (in particular the parliament) remain unclear, and current deputies of the National Assembly have no mandate to draft legislation. Many of the deputies from the opposition party subsequently moved into the president’s camp in a show of solidarity since the decree in effect saved their jobs. Thus under this framework it is nearly impossible for the National Assembly to meet to review issues of proposed legislation – for instance the 2008 state budget was adopted without review and approval of the parliament! Because legislation passed by presidential decree lacks legitimacy, the coalition is hesitant to promote EITI under this political structure. In response to this challenge PWYP-CI continues to hold consultations with deputies of the National Assembly to improve the draft legislation, improve their understanding of the issues, identify actors for a provisional EITI committee, and seek their endorsement so that candidates in the next election can use it as the main public platform on which to campaign (and ultimately enact into law via legitimate processes). Lessons-Learned One of the primary observations identified during the civil society workshops was the lack of understanding that many local groups have on the differences between the EITI

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and the PWYP Campaign. This is not unique to Cote d’Ivoire, however it does illustrate the importance of maintaining clarity among the donor community and international NGOs advocating for transparency around the rhetoric they use and the mechanisms they promote. This observation lead the coalition to adapt the seminar to include sessions that focused on distinguishing EITI from PWYP and demonstrating the different yet complementary objectives that exist. As a result of this project PWYP-CI also witnessed the benefits of a well-informed citizenry. Through increasing citizen awareness and involvement of the media on issues surrounding EITI and the transparency movement more broadly, PWYP-CI was able to break the entrenched silence of policymakers in Cote d’Ivoire. It also enabled civil society to be officially invited by the state to cooperate on the initiative’s implementation as it moves forward. PWYP-CI membership has also expanded and the coalition is regularly called on for its expertise and recommendations. Recent invitations by the IMF and the World Bank to collaborate on programs in the coming year also demonstrate the value of this project in meeting the objectives of the Development Grant Facility. CAMEROON Within the mandate of the DGF program, RWI supported two projects in Cameroon – the first sought to address EITI awareness and capacity building issues at the regional level (i.e. continental Africa) and the second sought to support domestic PWYP and EITI Coalitions in Cameroon. Because the former project has been previously reported on in depth and also influenced the selection of many of the programs funded by the DGF 2007 window, it will only be discussed here in brief. Essentially the continental project sought to prepare for and conduct an EITI Regional Training for African civil society activists in Limbe, Cameroon. This training, in March, 2007, aimed to boost the capacity of the most active and promising civil society leaders in sub-Saharan Africa to actively participate in EITI processes in their own countries. The event was a ‘training of trainers’ follow-on to the World Bank/PWYP- hosted training in Kribi, Cameroon in late 2005. This project addressed several major challenges related to CSO capacity-building around EITI in West Africa, including: increasing coordination of CSOs participating in EITI at a regional level to ensure continuing exchange of best practices, training on EITI principles and criteria, validation processes and audit, and addressing issues such as the impact of different fiscal and contracting arrangements for extractives, international best practices on licensing, and model revenue management laws. As such the remainder of this section will focus on the accomplishments, challenges and lessons learned from the national-level project, while it should also be noted that the regional training was the impetus for the other country projects supported under this grant facility. Achievements and Milestones As a result of this project, as well as the aforementioned regional training in 2006, Cameroon achieved EITI “Candidate Country” status during the pre-validation exercise in 2007. The aim of the national-level project supported in 2007 was to improve the

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ability of Cameroonian civil society to contribute actively to the sustainable management and utilization of extractive revenues towards improved human development and poverty reduction. The action plan focused on strengthening civil society organizations’ ability to collect reliable information, advocate effectively for transparency and good governance, and ensure their own financial sustainability. This project took a multi-stakeholder approach to bridging the knowledge gap common in many developing countries by bringing together all sectors of society to discuss best practices in EITI implementation and how different stakeholders can use the information provided by EITI reports. Members of the Cameroonian EITI/PWYP coalition and civil society, as well as a few journalists enjoyed two intensive training sessions on participatory budgeting, oil taxation and regulatory and fiscal regimes, best practices in financial management, and fund-raising techniques for civil society. The presentations of the first training session allowed participants to understand budgetary mechanisms, principles of proper budgetary governance, strengths and weaknesses of the Cameroon budgetary process, mechanisms for quantitative analysis of the State budget, advocacy techniques, and EI fiscal regimes (e.g. legal frameworks, types of contracts, the way these contracts are negotiated and entered into) and instruments for taxation (cash premiums, production bonuses, rents or surface royalties, proportional mining royalties, corporate tax structures). These activities were widely covered by the media. The television chains Ariane Télévision and Equinoxe broadcast workshop’s images while providing information on EITI, the PWYP campaign, and the achievements of the Coalition to the general public. The coalition also conducted a few research projects including an independent evaluation of the existing EITI reconciliation reports and production of a comprehensive mapping of the mining sector in Cameroon. A think-tank was also set up within the coalition, and two (of three proposed) roundtables were organized. The discussions during these roundtables played a large part in the coalition’s strategic planning for 2008 and have influenced the selection of certain actions/activities under the 2008 action plan. Two days of public information on EITI, the PWYP campaign, and the achievements of the coalition were organized in Limbé and Bertoua. These public awareness campaigns improved the understanding of local populations in two producing regions on the initiatives taken thus far by government and civil society to improved resource revenue transparency in the country, and also outlined ways that average citizens can get involved in the process at the community level. Following these forums the coalition received several requests for membership and a contact group comprised of several local associations was set up in Bertoua. In addition to the EITI related training and awareness activities, the coalition also organized a training session for its members on fundraising and proposal writing

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techniques. This activity provided participants with the tools to enable them to better engage the donor community, independently look for project financing, as well as train them in best practices for financial management at the institutional level. Challenges The participation of the coalition members in the EITI committee while not specifically a part of this project, was crucial for the coalition’s action. Certain committee members working for the government used several tricks to intimidate, disparage, and discourage coalition members arguing that they did not have the required skills to review the highly technical work of the committee. The intent here was to silence the coalition. Confronted with that challenge, the coalition chose to focus on strengthening its capacities by inviting certain expert members of the committee to conduct technical trainings for the civil society members.

At times, it was difficult to find experts in specific industries who were thoroughly familiar with extractive industries to moderate the coalition’s training sessions. Many experts who used to work with the government or reputable organizations demanded fees which the Coalition could not afford to pay under their current budget. To remedy this problem, members of the civil society (particularly from neighboring countries) were asked to step in. Their services were very appreciated by their colleagues, and other civil society organizations, but access to qualified resource persons and trainers is a challenge that many coalitions still confront.

It also took time for coalition members to take ownership of the project. It took time for the coordination committee (set up when the coalition was organized in 2007 and responsible for leading/moderating the structure) to become operational. The initiative and relevance of actions were left to the Technical Secretary, which affected the quality and impact of certain activities at the beginning of the project. However regular evaluations conducted after each activity brought this problem to light, and resulted in an adjustment of the organization of the activities and encouraged the coordination committee to assume its responsibilities.

And due to fallout from the political crisis in neighboring Chad, the coalition was unable to conduct some of the planned program activities – notably reproduction and dissemination of the independent research, holding 1 think-tank roundtable, and carrying out the last national training session. An extension request has been submitted by RWI on their behalf to enable them to complete theses remaining activities for 2007. Lessons-Learned The regional workshop helped to inform RWI and other international donor organizations about the varying needs and capacities of civil society that differ considerably among countries in the sub-region. In particular, RWI’s participation in the regional workshop helped to better inform our evaluation of 2007 DGF applicants and provided us the opportunity to discuss various proposals with the applicant organizations, assess their

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commitment to the principles of resource revenue transparency, and craft a strategy for capacity building that would be complementary to the needs of the local coalitions. It was identified that while parliamentarians have a key role to play in the transparency process, they are often times unaware and ill-informed of their responsibilities. Thus a strategy should be devised to increase parliamentary interest in these issues. The various activities conducted in 2007 were also quite informative for the strategic planning of the coalition. A better structure of the group and the implementation of administrative and financial management procedures will make the coalition’s work more efficient. Nevertheless the dual programs represented a milestone towards greater ownership of the regional campaign which was originally a main challenge in the early stages of the project and is now clearly being overcome. DEMOCRATIC REPUBLIC OF CONGO Although the DRC achieved EITI “Candidate Country” status, it is still noticeable that local governments and civil society often lack the capacity and knowledge to enforce fundamental reforms. In this vein, the programs supported in the DRC sought to build the capacity and awareness of provincial authorities and regional CSO’s in an effort to help them push for internal reforms and regulations that support transparent management of natural resource revenues. Achievements and Milestones RWI provided support to both the Natural Resources Network through ASAHDO, a local NGO specialized in working on economic justice issues linked to the management of natural resource revenues, as well as the Eastern Kasai Coalition. The overall goal of these projects was to increase the ability of civil society organizations to participate in EITI and effectively play the role they are called to fulfill by its implementation processes. This included building skills of CSOs participating in the EITI to conduct an analysis of the revenue information and verify related data, and raising public awareness about the importance of EITI, mainly through the organization of two provincial awareness workshops and the subsequent publication of a guide on EITI implementation and minerals extraction in DRC for local communities’ utilization. During the project term, several workshops on capacity building for civil society organizations were held in the provinces, particularly Katanga and Eastern Kasai, as well as at the national level held in Kinshasa. Participants were informed on the principles and criteria of EITI, the PWYP campaign, tools and techniques in budget monitoring, and mining and forestry taxation schemes in the DRC. Furthermore, those who took part in the workshops went back to their respective communities to share their new knowledge with other organizations through feedback sessions which took place in the provinces of Bandundu, East-Kasai, Equateur, South Kivu and Kinshasa.

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The general public has become more informed about resource revenue transparency issues and the importance of EITI through radio and television broadcasts and newspaper articles on the workshops held, as well as through distribution of mining and forestry codes and brochures on EITI validation processes to local community representatives by the implementing groups. Several newspapers published a number of papers and presentations given by delegates at the provincial and national workshops, and two radio stations and one television station aired programs on transparency and EITI during the workshop in Lubumbashi. Lessons-Learned After participating in the national workshop in Kinshasa, numerous donors and international partners including DFID, the US Embassy, Pact Congo, MONUC and the Carter Center all expressed strong interest in working with ASAHDO on EITI implementation going forward. Currently the coalition is negotiating with MONUC to obtain financing for office equipment in an effort to continue institutionalizing the coalition. Engaging in this project also allowed the coalition in DRC to acquire other management structures, including a coordinating body, administrative council and a monitoring committee were all set up to support the EITI process in-country. This project has also made possible the creation of provincial committees of PWYP, which will work with the political administration authorities to set up EITI committees in each province. RWI staff also conducted some technical assistance visits which concluded that in addition to basic community-based trainings, CSO’s at the national level benefit greatly from international technical assistance and capacity-building to more effectively participate in and monitor the contracts review and possibly renegotiation process. MAURITANIA and GUINEA-CONAKRY The DGF projects funded in Mauritania and Guinea were of a slightly smaller scale then several of the other countries we chose to fund under the DGF program. Both of these programs mainly sought to increase the capacity and networking of local CSOs already engaged in monitoring activities (many outside of the energy sector, particularly forestry, fisheries, and environmental groups) by bringing them together in national fora and training sessions. As the governments of Mauritania and Guinea have demonstrated their commitment to EITI, local civil society felt that it was important to use this facility as a means for building NGOs’ capacity to apply their existing skills to monitoring the extractive industries. Essentially both projects sought to improve civil society’s ability to engage their governments on these ‘new’ issues and to bring them up to speed in the current debate to ensure sound oversight of the EITI implementation process. Unlike the other country level projects supported by the DGF, the activities in Mauritania and Guinea were more narrowly defined as this project represented RWI’s first engagement in the countries and was simultaneously an attempt for RWI and the World Bank to test

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the waters so to speak. It was also the first time CSOs had expressed an interest to engage in these issues in the extractive sector context. The aim of the Mauritania project was to begin creating a local knowledge base and promoting CSO buy in around existing EITI processes and issues with impacted parties. Many of these impacted groups include community organizations focused on environmental defense and fisheries. The primary activity was the execution of a national multi-day workshop which focused on training CSOs in EITI processes, raising their awareness of the importance of transparent resource revenue management, and building their capacity to conduct their own analyses of information related to extractive revenues. The project demonstrated strategic thinking on the part of the newly formed PWYP coalition because it sought to recruit interested groups with the analytical capacities and demonstrated achievements in other socio-economic sectors to draw the link between extractive industry transparency and improved governance and human development. The aim of the Guinea-Conakry project was to train, inform, and increase the awareness of CSOs to engage companies and government on EITI implementation in mining affected communities in Guinea. The trainings included modules that improved awareness among stakeholders of the economic and social stakes of the transparent management of the extractive industry revenues; improved participants’ understanding of EITI principles and criteria as well as its implementation processes; paid special attention to appropriation of the PWYP campaign’s themes by local associations interested in increasing synergies among monitoring activities; and provided participants with advocacy, research, management, and information dissemination techniques to facilitate more effective engagement with government and industry representatives. Because of the steps taken by the Governments of Mauritania and Guinea-Conakry to-date, it was crucial that civil society in these countries be empowered to hold them to account for their endorsements of EITI and be able to monitor and advocate progressive implementation of the initiative. The workshops held in both countries have done just that by equipping NGOs with the knowledge, tools and communication mechanisms to proactively engage the local administrations and companies on transparent use of the countries’ oil, gas and mining revenues. As a result of these trainings local civil society in both countries have come together and put forth analysis of the deficiencies of recently released EITI reports and recommendations for improvements going forward. This is a great milestone for civil society in both countries which were new to the EITI and resource revenue transparency movement prior to DGF funding of their projects. Both countries achieved EITI “Candidate Country” status in 2007, and the governments have taken notable steps to now engage civil society with requests for technical assistance.

IV. Recommendations and Conclusions The Development Grant Facility was a great success. It succeeded in building a broader base of EITI knowledge and support in the target countries, it enhanced the sophistication of knowledge among civil society of EITI processes and their (CSOs) role for influencing

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the initiative at the country level, and it improved the capacity of stakeholders to follow-up on recommendations from EITI reports and take forward new projects in direct response. Working with coalitions at the country level has attuned RWI to the diverse levels of expertise and experience that exist between national coalitions in the region. The activities conducted by our sub-grantees have also highlighted the importance of experience-sharing and knowledge transfer in an effort to promote development of sustainable skill-sets and reinforce partnerships at the local. Several of our project partners have now begun to mentor other national coalitions as a direct result of this program. The program also identified that while parliamentarians have a key role to play in the transparency process, they are often times unaware and ill-informed of their responsibilities. In response to this challenge RWI has developed a capacity building program for parliamentarians at the sub-national level. RWI will continue to build from the insights of our local coalition partners in order to strengthen parliamentary engagement on effective policies, strategies, structures, and techniques for managing and overseeing extractive industry revenues. Although EITI is limited both in scope and content, efforts should be made to accommodate other legitimate transparency and accountability concerns of EI producing communities that may not fall directly within the current EITI mandate. As the World Bank begins to embark on the new EITI++ framework, these concerns, as well as consultations with civil society, must be taken into consideration during the strategic planning. In conclusion, RWI would like to again express our gratitude to the World Bank for partnering with us on this important program and providing the financial resources that made its implementation possible. We look forward to continued cooperation on the promotion of transparency and accountability in the extractive industries going forward.

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ANNEX 1: Budget Narrative In FY 2006 RWI received $225,000 USD. RWI disbursed $181,642 USD to sub-grantees in 2006, and returned the remaining $43,358 USD to the World Bank. In FY 2007 RWI received $291,944 USD. According to our agreement, RWI was allowed to spend a portion (up to $15,000) of the 2007 funds on translation costs in order to allow applicants to submit proposals in their native language. As such RWI spent a total of $9,646.65 on translation. The remaining $282,297 (for FY2007) was disbursed to sub-grantees. RWI did not use any of the awarded funds for administration costs associated with our implementation of the project. While the vast majority of the proposals selected reflect the requirements of the DGF, namely an explicit emphasis on advancing EITI in-country, some of the proposals received also proposed activities that the WB deemed tangential to our funding arrangement (such as budget monitoring activities specifically), but which RWI views as crucial to making EITI relevant and meaningful in the applicants' respective countries. It must be noted that for FY 2006 RWI only received DGF funds in July 2006; however the WB required that sub-grantees of RWI expend this funding in full on or before March 31, 2007. Virtually all of the proposals RWI received proposed projects within timelines that extended well beyond March 31, 2007 into the fall of 2007. Accordingly, in order to get WB funds out the door by the required deadlines and simultaneously respect the well-constructed longer term action plans proposed by local groups, RWI decided to co-fund the post-March 31 portion of these projects. This decision was taken on the basis that 1) the costs are minimal; 2) EITI support for CSOs is a strategic priority for RWI irrespective of WB funding and; 3) developing strong relationships with African groups interested in revenue transparency work is also an RWI strategic priority independent of WB funds. For FY 2007 funding was received in a timely manner. Thus in instances where the WB deemed certain proposed activities to be irrelevant (or certain countries to be less of a priority, such as Tanzania) to the DGF's thematic funding priorities, RWI crafted a strategy to co-fund these projects so that they could be supported and executed in full. Below we have detailed the breakdown of funding for both the 2006 and 2007 DGF projects. In accordance with abovementioned implementation of DGF funds and subsequent RWI co-funding, project support was distributed in the following breakdown: A. Projects Funded Solely with World Bank DGF Funds: (For FY 2006) All projects in 2006 had to receive co-funding from RWI, see section B below.

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(For FY 2007) RJDH Niger: Total Project Cost = $ 29,488 ROTAB Niger: Total Project Cost = $ 48,608 AGT Guinea: Total Project Cost = $ 53,185 PWYP Cote d’Ivoire: Total Project Cost = $ 70,000 B. Projects Funded with World Bank And RWI Funds: (For FY 2006) ISODEC Ghana: Total Project Cost = $ 70,000

• $27,000 was covered by DGF • $43,000 was covered by RWI

CRS Cameroon: Total Project Cost = $ 70,000

• $60,000 was covered by DGF • $10,000 was covered by RWI

AFCF Mauritania Total Project Cost = $ 30,000

• $18,410 was covered by DGF • $11,590 was covered by RWI

ASHADO/Katanga DRC Total Project Cost = $ 70,000

• $41,030 was covered by DGF • $28,970 was covered by RWI

NACE Sierra Leone Total Project Cost = $ 70,000

• $35,000 was covered by DGF • $35,000 was covered by RWI

(For FY 2007) CRS Cameroon: Total Project Cost = $ 64,000

• $49,000 was covered by DGF • $15,000 was covered by RWI

Eastern Kasai Coalition DRC: Total Project Cost = $74,260

• $32,016.35 was covered by DGF • $42,243.65 was covered by RWI