Ivoirian Budget Transparency and the Extractive Industries

UNCLAS SECTION 01 OF 02 ABIDJAN 000029

SENSITIVE
SIPDIS
DEPARTMENT FOR EEB/IFD/OMA BRIANA SAUNDERS

E.O. 12958: N/A
TAGS: EFIN EPET ECON PGOV PREL IV
SUBJECT: Ivoirian Budget Transparency and the Extractive Industries
Transparency Initiative

REF: (A) STATE 1923; (B) ABIDJAN 213


1. (SBU) In response to ref A request, post reports the following:



--The central government of Cote d'Ivoire currently receives
funding through the FY 2010 Department of State, Foreign

Operations, and Related Programs Appropriations Act (SFOAA) as part
of the President's Emergency Plan for AIDS Relief

(PEPFAR).



--The GOCI makes its annual budget available to the public at the
Ministry of Finance website, www.finances.gouv.ci.

Additionally, a hard copy of the budget document is readily
available from the Ministry of Finance upon request.



--The published budget includes a reasonable level of detail on
GOCI income and expenditures.



--Post is not convinced the GOCI includes all petroleum revenue in
the public budget. Reliable sources have indicated to

post that the GOCI substantially understates oil production in its
official reports.



--Post, working in conjunction with other donor countries and
international financial institutions, has strongly encouraged

the GOCI to be more transparent in its reporting of petroleum
revenue. Following post's submission of last year's report

on budget transparency (ref B) and the approval of a waiver for
Cote d'Ivoire, post has continued to demonstrate to

Ivoirian officials the USG's keen interest in the transparency of
revenue from extractive industries, and in particular in

the GOCI's continued work on the Extractive Industries Transparency
Initiative (EITI).



--Cote d'Ivoire became an EITI candidate country in May 2008,
following creation of the country's EITI National Committee.

The GOCI has stated its commitment to meeting the remaining
indicators in the EITI validation framework. In Cote

d'Ivoire's Poverty Reduction and Growth Facility (PRGF),approved
by the IMF Board in March 2009, the GOCI agreed to

prepare EITI-compliant reports for oil and gas extraction on a
regular basis. The triggers for Cote d'Ivoire's Enhanced

Highly Indebted Poor Countries (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."



--In early January the Hart Group, hired by the GOCI (with World
Bank assistance),completed the final draft of an EITI

report covering the Ivoirian hydrocarbon sector for the years 2006
and 2007--the first EITI report ever produced on Cote d'Ivoire.

ABIDJAN 00000029 002 OF 002


Members of the National EITI Committee received the report on
January 12, and committee members expect to consider the

document formally before the end of January. The report will then
undergo the EITI validation process. It appears that

the GOCI may be able to meet the May 2010 deadline for EITI
validation.



--Should a waiver be required this year, post recommends continuing
efforts to encourage GOCI compliance with the EITI-

related requirements in Cote d'Ivoire's IMF/HIPC program.
NESBITT