TRANSPARENCY INITIATIVE MOVES FORWARD--SLOWLY

UNCLAS ABIDJAN 000592 SENSITIVE SIPDIS E.O. 12958: N/A TAGS: EAID ECON EMIN ENRG EPET PGOV PREL IV SUBJECT: TRANSPARENCY INITIATIVE MOVES FORWARD--SLOWLY REF: (A) ABIDJAN 431 (B) SECSTATE 28858 (C) ABIDJAN 240 ¶1. (U) Summary. Cote d'Ivoire's initial report for compliance with the Extractive Industry Transparency Initiative (EITI) is behind schedule. Nevertheless, it is still possible for the GOCI to meet the May 2010 deadline for EITI validation. End summary. ¶2. (U) In an October 8 meeting with emboffs and visiting desk officer (Emily Narkis),the president of Cote d'Ivoire's EITI National Council, N'Dri Koffi, said the Hart Group has not completed Cote d'Ivoire's initial EITI compliance report, which covers the hydrocarbon sector for 2006 and 2007. Koffi had previously predicted the report would be finished by September 30 (ref A). ¶3. (SBU) Koffi reported, and a Hart Group representative confirmed, that consultants have completed a template for the report but still do not have all the information needed to finalize it. The Hart Group has received information from private oil and gas producers, the national petroleum company (PETROCI),and the Bureau of the Treasury and Public Finance (DGTCP). The group awaits data from the Bureau of Taxes (DGI),without which it cannot reconcile the government and private-sector numbers. David Quinn, senior consultant at the Hart Group, reported that he has written the DGI director general directly to request the data. ¶4. (SBU) Quinn said Hart Group consultants are scheduled to visit Abidjan to resolve data differences the week of October 26, provided the firm has received the DGI data by that time. Koffi has proposed that the EITI National Council consider the final version of the report on November 13. Koffi said that before the end of January 2010 the GOCI plans to hire a consultant to carry out the EITI validation process. He also noted that the EITI website, which he thought would be operational by August 31 (ref A),will not be running before the end of November. ¶5. (SBU) Comment. It is not clear whether the GOCI will be able to complete the validation process before the May 11, 2010, deadline imposed by the EITI Board (ref B). Koffi seemed much less confident about the GOCI's ability to do so than he has in previous meetings. However, Richard Doffonsou, senior economist at the World Bank, told emboffs he believes the GOCI will be able to meet the deadline. As post noted in ref C, the Enhanced Heavily Indebted Poor Countries (HIPC) initiative provides a strong incentive for the GOCI to comply with EITI norms. The triggers for Cote d'Ivoire's floating HIPC completion point include "(r)egular public reporting of payments to, and revenues received by, the government for the extractive industries (mining, oil and gas) in line with the EITI criteria, with a recent annual report during at least the year immediately preceding the completion point." While HIPC may be the strongest incentive for EITI compliance, the May date set by the EITI Board is the operative deadline for the GOCI to stay on track. NESBITT