Philippine Extractive Industries Transparency Initiative (PH-EITI)
The Philippine Extractive Industries Transparency Initiative (PH-EITI) is the Philippines’ implementation of the global EITI standard — an international framework requiring transparency and accountability in how governments collect, and companies pay, revenues from extractive industries (oil, gas, and mining).
Legal basis: EO 147 (s. 2013), signed November 26, 2013, by President Aquino III.
Antecedent: EO 79 (s. 2012) committed the Philippines to EITI participation; EO 147 created the institutional machinery for implementation.
Multi-Stakeholder Group (MSG)
PH-EITI is operationalized through the Multi-Stakeholder Group (PH-EITI-MSG), a decision-making body with equal representation from three sectors:
| Sector | Representatives | Designating Body |
|---|---|---|
| Government | 5 | Mining Industry Coordinating Council (MICC); LGUs via ULAP |
| Business | 5 | Business groups (independent selection) |
| Civil Society | 5 | CSOs (independent selection) |
Chairperson: Secretary of Finance (DOF)
Members serve 3-year terms, renewable. Decisions are by consensus. Quorum = at least 3 from each sector [EO 147, s. 2013, §3, 2013-11-26].
Functions
The PH-EITI-MSG:
- Sets the strategic direction and scope for EITI implementation in the Philippines
- Crafts, publishes, reviews, and updates a fully-costed Country Work Plan
- Produces regular EITI reports (reconciliation of government and industry revenue figures)
- Selects and appoints an independent administrator/auditor for revenue reconciliation
- Conducts outreach and capacity-building for national and sub-national EITI implementation [EO 147, s. 2013, §§4–5, 2013-11-26]
Secretariat: Based at the DOF; composition determined by the Finance Secretary in consultation with the MSG [EO 147, s. 2013, §6, 2013-11-26].
Energy-Sector Relevance
PH-EITI’s primary energy-sector function is transparency over petroleum and geothermal revenue flows — the single largest extractive industry revenue stream in the Philippines. Key flows include:
- SC 38 (Malampaya) government share: The Malampaya Fund (SAGF-151) receives 10% of Malampaya gross output (DOE share); Shell/Chevron pay corporate income tax (BIR). PH-EITI reconciles these flows between what companies report as paid and what government reports as received
- Mining and minerals royalties
- National Wealth Tax and special levy payments
The Malampaya revenues under PH-EITI reporting provided public transparency about Fund 151 inflows — complementary to the controversy over Malampaya Fund disbursements (see Malampaya Gas Field ).
EITI Compliance Status
The Philippines achieved EITI compliant-country status and has published multiple annual EITI Reports reconciling government and company disclosures of payments. PH-EITI is among the most active EITI implementations in Southeast Asia.