EITI report

On March 15, 2005 the Committee on the EITI released the first government reports examined by independent auditor – “Deloitte & Touche” company. The document was the first published report of this kind in the world.

The EITI implementation in Azerbaijan is a sustainable process. The government of Azerbaijan on regular basis makes publication of all oil, gas and mining payments by companies to government and all revenues received by government from oil, gas and mining companies to a wide audience in a publicly accessible, comprehensive and comprehensible manner.

It should be noted that all companies operating in extractive industries, as well as state enterprises are involved in the EITI implementation process. The EITI reporting mechanism: The selection of companies for reconciliation of the EITI reports is conducted by the Multi-stakeholder group (MSG). In the first stage, the information on the tender shall be issued and the highly regarded and internationally recognized audit companies invited to participate.

The procedure is that after opening an envelope with proposals at the MSG meeting, each proposal shall be individually evaluated based on a number of criteria. A winning company shall be selected based on a final assessment. Upon signing the contract with the winner, it shall receive reports from concerned companies and the government during the statutory period for response (annual reports must be submitted by the 15th day of March of the subsequent year). After summarizing the reports received from the companies, such reports shall be verified against the government's report.

If any deviations are detected, the auditing company shall send requests for clarification to the relevant parties and prepare comments based on received clarifications. Finally, the auditor’s opinion is issued on behalf of the Independent Accountants. The IAO on behalf of the audit company shall be submitted at the MSG meeting during a period set forth in the MSG’s Work Plan. After issuing the opinion, the parties shall prepare and distribute a joint press release. The government report and an opinion of the Independent Accountants shall then be posted on the websites of the State Oil Fund and the EITI.

Hereinafter, the Analytical Group established under the EITI NGO Coalition shall analyze the government report and the IAO, and prepare an Alternative Opinion of the EITI NGO Coalition within 1 (one) month. Primarily, such opinion shall be discussed during a meeting of the EITI NGO Coalition Board meeting and then submitted on behalf of the Coalition. The presentation shall mainly be focused on the recommendations contained in the report of the EITI NGO Coalition, and each member of the EITI Commission and representatives of the Group of Companies shall express their opinions. The parties shall declare their positions towards criticism /proposals included in the alternative opinion and prepare on its basis the relevant proposals for the next reporting period, or otherwise establish a working group with the participation of representatives of the parties for preparation and discussion of such proposals.

Starting from 2012, the EITI report is issued on in the form of an integrated document. This document includes a report on the aggregate revenues received by the Government of the Republic of Azerbaijan from the extractive industries, the Independent Accountants opinion and the opinion of the EITI NGO Coalition of public organizations, which earlier were issued separately. The report also includes analysis of macroeconomic situation in the country.

EITI implementation report
Starting from 2012, the EITI implementation reports are published in Azerbaijan. These reports are issued in accordance with the rules adopted at the V EITI Global Conference held in Paris in 2011.

The first EITI implementation report covered 2011. Given the fact that the document was prepared in Azerbaijan for the first time, it included the philosophy (principles and strategy) of the EITI, the history of the EITI implementation in Azerbaijan, the data on the MSG’s activities and the analysis of 15 reports on the EITI, as well as information on achievements in this field along with the works which were executed in 2011. The report contains the views expressed by the Committee on the EITI, the EITI NGO Coalition and the representatives of the Group of Companies which are the stakeholders of the EITI process.

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