Wednesday, January 20 2016 17:56

ArmInfo. A non-budgetary fund will be set up at the Government of Armenia to ensure transparency in the mining sector, according to the Government's decision adopted today on January 20. 

Presenting the draft decision, David Haroutiunyan, the chief of the Government Staff, said the fund will be replenished with the grants of the US Agency for International Development  (USAID) and will be operating for the coming two years.  In particular, in the period from Nov 12 2015 up to Jul 11 2017, the fund will receive a total of $356,205, of which $254.650 will be spent in 2016 and $101,555 in 2017.  The fund will be ensuring the transparency and accountability of the mining industry and working to digitize the Geological Fund.  The state decision in the mining sector will become available to public, which will help reduce the corruption risks and increase democracy in the field. 

Earlier, environmentalists, politicians and economists have repeatedly expressed concerns over the environmental impact of the developing mining industry.  Lack of information of commercial nature gave rise to many rumors and suppositions. 

Earlier in mid-2015, the Government of Armenia called it inexpedient joining EITI (Extractive Industries Transparency Initiative). Talking to ArmInfo, Tigran Jrbashyan, said the support to this initiative by the government of Armenia could bring forward really revolutionary changes in one of the most important industries in the country, namely the mining industry, as well as contribute to improving the business climate in Armenia. ArmInfo correspondent asked the expert to tell about the initiative and possible ways for Armenia to join it.

ITI is a coalition of governments, civil society, investors, and international organizations.  It was established in 2002 based on the initiative of the then Prime-Minister of Great Britain Tony Blair during the conference on Sustainable Development in Johannesburg. The goal of the initiative is raising the transparency and improving the quality of the management in the extractive industry by publishing regular reports, adhering to standards, and strengthening the institutional potential.  Within the framework of the Initiative, the extractive companies shall disclose the information on tax and non-tax payments to the governments, while the latter shall publish the reports on the received revenues. The transparency of the information on the received revenues, which is achieved due to the EITI standards, allows the parliaments of the countries, non-governmental organizations, and the citizens to control the activities of the companies and the government. Not only does such civil control hamper the cases of misuse in this sector, but it also contributes to more effective development of the countries as a result of improved economic conditions and more active attraction of direct investments. As global experience shows, the extractive companies win only as a result of the greater transparency thanks to the formation of equal and predictable economic relations.