Extractive Industries Transparency Initiative in Tanzania - Phase II

The purpose of this project is to promote responsible and sustainable development of the mining oil and gas industries in Tanzania. It supports systems and processes that promote transparency. The project aims to strengthen the legal and institutional framework of the Extractive Industries Transparency Initiative (EITI) in Tanzania as well as its operational processes. It also aims to increase public understanding of revenues from the mining oil and gas sector and how these revenues are used. The EITI has set global standards to increase transparency in the mining oil and gas sector. The EITI requires that extractive companies disclose the tax and royalty payments they make to the government and that the government disclose the payments it receives from these companies. The EITI also requires that the verified payment information be widely distributed to Tanzanian citizens. Greater transparency in the extractive industry is expected to lead to: increased revenues for the Government of Tanzania making it possible for the government to reduce poverty and improve the services it provides to Tanzanians; greater investment in the extractive and related sectors; improved accountability to citizens; and in some instances the prevention of conflict. In addition providing citizens with information about tax and royalty payments remitted to their government enables them to hold their government accountable and helps them understand how they benefit from the mining oil and gas industries.

The expected intermediate outcomes for this project include: increased accountability to citizens on resource revenues and their use for poverty reduction; and improved functioning of the Extractive Industries Transparency Initiative (EITI) systems in Tanzania to support responsible and sustainable development of the extractive industry.