The European Union (EU) and the World Bank Group (WBG) signed a grant agreement for a €5 million (about $5.6 million) contribution to the Extractives Global Programmatic Support (EGPS) program, a multi-donor trust fund aimed at improving governance and transparency of the extractives industry. So far, seven donors have contributed about $25 million to the program. EGPS helps countries around the world manage their natural resources, including oil, gas and minerals, in a more transparent and sustainable way and thus plays an important role in domestic resource mobilization efforts and institution building.
“The World Bank is grateful to the European Commission for its commitment to making the extractives industry more transparent and ensuring that natural resources are used in a way that promotes inclusive growth,” said Laura Tuck, World Bank Group Vice President, Sustainable Development Practice Group.
Stefano Manservisi, Director General of the Directorate General for International Cooperation and Development, stressed that domestic revenue mobilization is key to financing the implementation of the Sustainable Development Goals. Helping countries to adequately manage their natural resources revenues is possibly one of the best investments donors can make to promote development. The EC considers the World Bank a sound partner in the implementation of its 'Collect More – Spend Better' approach in support of developing countries.
Supporting macroeconomic and public finance institutions and policies in developing countries has long been a common objective of the EU and the Bank. Since the signature of the 2009 EU-WBG Framework Administrative Agreement the partnership has intensified with the organizations supporting each other’s work through regular staff consultations; budget support and WBG lending programs; and capacity development cooperation through WBG Multi-Donor Trust Funds.
The WBG works in the extractives sector in about 70 countries and is the largest provider of development assistance to the sector.