Dili, August 25, 2011 - World Bank Managing Director, Sri Mulyani Indrawati today congratulated the Government of Timor-Leste for improving transparency and accountability in the management of its natural resources. Timor-Leste has secured compliance with the Extractive Industries Transparency Initiative (EITI) which commits governments to disclosing the revenues they earn from oil, gas and mining, and is holding the first regional Conference for the Asia-Pacific.
“This important initiative gives Timor-Leste the opportunity to manage its precious oil revenues for the future security and prosperity of its people, and it is a mark of the progress Timor-Leste has achieved that it was admitted to the EITI,” said Sri Mulyani.
In 2010 Timor-Leste became only the third country in the world to be granted compliance status to the EITI and the first in the Asia-Pacific, which Sri Mulyani noted was a remarkable achievement and showed that Timor-Leste could be a global leader and example for other developing countries.
“Timor-Leste, as a nation, is building strength and economic resilience and has demonstrated how much can be won in a short space of time. Here as elsewhere the EITI standard can be a stepping stone in building sustainable and more inclusive growth in member countries: growth that provides opportunity and prosperity for whole populations.”
The EITI is in place to help ensure that revenues from oil resources are managed sustainably and can benefit the whole population today as well as in generations to come. The initiative is a globally developed standard that supports transparent and accountable management of petroleum revenues by verifying and publishing all company and government accounts from oil, gas and mining.
Delegates from more than 30 countries are participating in the two day conference which is being held in Dili and they will hear from the Government of Timor-Leste about how it is using EITI to ensure sustainable income management for the nation through its Transparency Model.
Sri Mulyani Indrawati spoke of the importance of transparent and accountable management of public finances to ensure stability and security for people living in resource-rich nations.
The World Bank has supported Timor-Leste’s admission to the EITI through a US$230,000 grant from a Multi-Donor Trust Fund.
The World Bank will continue to support Timor-Leste’s effort to manage its oil revenue transparently and wisely, so that this income can be used to support more inclusive growth and create opportunities across the country.