Showing posts with label Energy Security Through Transparency Act. Show all posts
Showing posts with label Energy Security Through Transparency Act. Show all posts

Tuesday, October 06, 2009

Experts Discuss Extractive Industry Contracts

By Sothearith Im, VOA, Khmer
Original report from Washington
05 October 2009


More than 3 billion people live in countries rich in natural resources, but half of those remain poor, prompting a question. Why are some countries rich and others poor?

This question and others were discussed in Washington recently, at an international conference on the extractive industries, sponsored by Oxfam America, where experts from civic organizations, extractive industries, universities and others met to discuss the essence of contracts between governments and the extractive industry.

Solutions for natural resource problems include bringing more information to the public, especially in how much money a company pays the government to exploit resources, said Ian Gary, a senior policy adviser for Oxfam America.

A contract can describe the amount of money the government gets, the work plan of the company and other obligations in terms of social development. Too often, he said, the contracts are kept secret.

“The importance of this conference is that it’s the first time that the international community of practitioners, experts and civil society organizations have sat in the same room to discuss how we can bring more information to the public about contracts and how we can improve the situation on the grounds,” he said.

Mam Sambath, executive director of Cambodians for Resource Revenue Transparency, who participated in the September conference, said his participation and that of others constituted important capacity building.

“Through this conference, experts shared their experiences in managing contracts between governments and companies in the countries they have been exploring and doing business in, in either oil, gas, or mines, either in Africa, Latin America or other countries in the world,” Mam Sambath said.

Lim Solin, East Asia program officer for Oxfam America, told VOA Khmer at the conference that the conference was a rare opportunity to bring experts together, even if they didn’t all agree.

“I’m sure you’ve heard the differences of opinion from other participants,” Lim Solin said. “For me, especially where I am coming from, Cambodia, I see that it’s a great opportunity for Oxfam America to host such a tripartite forum that brings together the public sector, private sector and civil society to come to a common place to discuss the issues, contracts and transparency. I hope that Oxfam America will be able to host this kind of international conference in Cambodia as well to ensure that this knowledge and experience can be shared with our friends and colleagues in Cambodia.”

On that day, U.S. bill, “Energy Security Through Transparency Act of 2009” was introduced to U.S. Senate and was happily welcomed by participants in the conference. The bill is expected to put more weight to the international efforts to improve the management of the natural resources in the world.

Saturday, September 26, 2009

US registered oil companies will have to disclose amount paid to Hun Xen's regime?

US Energy Act Could Help Cambodia

By Im Sothearith, VOA Khmer
Original report from Washington
25 September 2009


Cambodia could benefit from a new energy security act, introduced to the Senate this week.

The “Energy Security Through Transparency Act” proposes changes to the Securities and Exchange Commission to stabilize energy sources and require energy extractive companies registered in the US to disclose the amount of money they pay to foreign countries and the US government for oil, gas and minerals.

Cambodia is on the cusp of offshore oil exploration, but critics warn an “oil curse” could put the money from the resource into the pockets of corrupt officials.

The transparency bill was introduced by Sen. Richard Lugar, a Republican from Indiana, among others.

Nilmini Rubin, a staff member for international economics and development for the Senate Foreign Relations Committee, told VOA Khmer that Lugar was passionate on energy security and fighting corruption. The bill was prepared after examination of more than 15 countries, including Cambodia, and a report, “The Petroleum and Poverty Paradox.”

Lugar sent staff to countries “to look at the impact of the resource curse and to think of how the US government, with the international partners, whether either bilateral countries, or the IMF or the World Bank, or multilateral agencies, what could we do to fight the resource curse,” Rubin said at a conference on the extractive industries in Washington. “The report outlines a number of suggestions. I think the key ideas percolated up into this legislation.”

Ian Gary, a senior policy adviser on extractive industries for Oxfam America, told VOA Khmer at the conference the legislation could benefit countries around the world.

This legislation would require any company that registers in the US to publish their payment to the governments around the world where they operate,” Gary said. “And this would be mandatory. It does not depend on the political will of a country to agree to disclosing information.”

Lim Solin, East Asia program manager for Oxfam America, said she was optimistic the bill, if passed, would benefit Cambodia.

“The trickledown effect of the adoption of this bill will be enormous, actually, for a country like Cambodia, because once the bill is adopted, simply all the companies that are listed in the US stock exchange will have to disclose all the information related to contracts and payment,” Lim said. “And that will be a great turning point in the history for the area of transparency. And I believe that the more Cambodia becomes transparent, the more competitive she will be.