News

The World Bank’s EGPS Trust Fund: Accelerating EITI adoption through continuing donor support

27 February 2020

The World Bank’s Extractives Global Programmatic Support (EGPS) Multi-Donor Trust Fund has been extended, with donors pledging approximately USD $40 million for continued support. A key funding mechanism for EITI implementation in developing countries, the programme is designed to improve the capacity of resource-rich developing countries to use their oil, gas and mineral resources in a transparent, sustainable and gender-inclusive manner.

The second phase of EGPS, from 2019 to 2025, takes a focused approach, providing assistance where demand is highest and where EGPS grants can make the greatest difference. A call for proposals will be announced in mid-March.

Supporting good governance

The programme is flexible and demand-driven and responds to the challenges faced by resource-dependent developing countries, through the following four components:

Revenue transparency – helping countries to implement the Extractives Industries Transparency Initiative (EITI).
Regulation and institutional strengthening – setting the framework for an extractives sector that enables investment and ensures inclusive and sustainable development.
Integration of extractives into the local economy – promoting local jobs and economic development.
Maximizing the benefits of extractives for local communities and environments, while mitigating any negative impacts.

“By extending and expanding the EGPS, donors and the World Bank are making an essential contribution to improve extractive industries’ governance globally”, said Mark Robinson, Executive Director of the EITI, welcoming the next phase of World Bank support. "The EGPS strives to enhance transparency and strengthen institutions, while supporting communities and protecting the environment".

Supporting EITI implementation

Mongolia, Nigeria, Peru, Philippines and Senegal have benefitted from first phase EGPS funding for EITI implementation. All have achieved satisfactory progress, meaning that all aspects of each EITI Requirement have been implemented and fulfilled. EGPS also provided funding for a wide range of countries (including Albania, Chad, Cote d’Ivoire, Ethiopia, Ghana, Iraq, Mauritania, Nigeria, Papua New Guinea, Peru, Togo, Ukraine and Zambia) that achieved meaningful progress, whereby significant aspects of each requirement have been implemented and the broader objectives of the requirements are being fulfilled.

In many countries, EITI implementation has sparked a wider ongoing dialogue on the country’s vision for a sustainable and responsible extractives sector, creating a kind of multiplier effect. Some examples:

Armenia: The multi-stakeholder group (MSG) chose to go beyond the remit of transparency and sought to develop a Mineral Sector Policy, a policy framework to guide mining operations that would shape the future of every mine across the country.
Senegal: EGPS grants supported EITI implementation including through the publication and dissemination of EITI Reports, strengthening of relevant government institutions, assessment of the petroleum legal and institutional framework, work on streamlining data reporting and addressing beneficial ownership information.
Mongolia: Groups worked together to develop an open data policy, produced a three-year beneficial ownership roadmap (2017–2020), and began to mainstream EITI processes into public financial management.

A continuing collaboration

Looking beyond 2020, the EGPS Trust Fund will expand its support for EITI implementation and strengthen its work with civil society organisations (CSOs) to advocate for accountability and fight against corruption. EGPS and the EITI will work together to take a gender-sensitive approach by including women’s voices in multi-stakeholder dialogue and promoting equal access to extractives-related benefits.

More about the World Bank EGPS Multi-Donor Trust Fund

The EGPS Multi-Donor Trust Fund has 11 donors that have pledged approximately USD $40 million in support for the second phase. Switzerland was the first donor to contribute USD $7.1 million, while Norway quickly followed in its footsteps with USD $3.3 million. EGPS donors continue to demonstrate their strong commitment to translating the benefits from extractives into sustainable development for all.