EITI International Secretariat November 2016 Validation of Mauritania Report on initial data collection and stakeholder consultation Website www.eiti.org Email [email protected] Telephone +47 22 20 08 00 Fax +47 22 83 08 02 Address EITI International Secretariat, Ruseløkkveien 26, 0251 Oslo, Norway 2 Validation of Mauritania: Report on initial data collection and stakeholder consultation Abbreviations AfDB African Development Bank BCM Banque Centrale de Mauritanie BEPS Base Erosion and Profit Shifting BO Beneficial ownership Bpd Barrels Per Day BTU British thermal unit CdC Cour des Comptes (Court of Counts) CIT Corporate Income Tax CNITIE National EITI Committee CSO Civil Society Organisation DCMG Directorate of the Mining Cadastre and Geology DGD Directorate General of Customs DGH Directorate General of Hydrocarbons DGI Directorate General of Tax DGTCP Directorate General of Treasury and Public Accounts EU European Union FNRH National Hydrocarbon Revenue Fund GDP Gross Domestic Product GFS Government Finance Statistics GiZ Deutsche Gesellschaft für Internationale Zusammenarbeit IGF General Inspectorate of Finance IMF International Monetary Fund IRM Islamic Republic of Mauritania LNG Liquefied Natural Gas MAED Ministry of Economic Affairs and Development MDTF Multi-Donor Trust Fund MEDD Ministry of Environment and Sustainable Development MEF Ministry of Economy and Finance MPEM Ministry of Petroleum, Energy and Mines MRO Mauritanian Ouguiya MSG Multi-Stakeholder Group NGO Non-Governmental Organisation PEP Politically Exposed Person PSC Production-Sharing Contract PWYP Publish What You Pay Scf Standard cubic feet SMHPM Société Mauritanienne des Hydrocarbures et du Patrimoine Minier SNIM Société Nationale Industrielle et Minière de Mauritanie SOE State-Owned Enterprise Tcf Trillion cubic feet ToR Terms of Reference USD United States Dollar Website www.eiti.org Email [email protected] Telephone +47 22 20 08 00 Fax +47 22 83 08 02 Address EITI International Secretariat, Ruseløkkveien 26, 0251 Oslo, Norway Table of Contents Abbreviations ......................................................................................................................................... 2 Executive Summary ................................................................................................................................ 5 Introduction ......................................................................................................................................... 11 Part I – MSG Oversight ......................................................................................................................... 20 1. Oversight of the EITI process ......................................................................................................... 20 1.1 Overview .................................................................................................................................... 20 1.2 Assessment ................................................................................................................................. 20 Government engagement in the EITI process (#1.1) .......................................................................... 20 Company engagement in the EITI process (#1.2) ................................................................................. 22 Civil society engagement in the EITI process (#1.3) ............................................................................. 24 MSG governance and functioning (#1.4) .............................................................................................. 30 Workplan (#1.5) .................................................................................................................................... 39 Part II – EITI Disclosures ........................................................................................................................ 44 5. Award of contracts and licenses ................................................................................................ 44 2.1 Overview .................................................................................................................................... 44 2.2 Assessment ................................................................................................................................. 44 Legal framework (#2.1) ..................................................................................................................... 44 License allocations (#2.2) ..................................................................................................................... 46 License registers (#2.3) ......................................................................................................................... 49 Contract disclosures (#2.4) ................................................................................................................... 52 Beneficial ownership disclosure (#2.5) ................................................................................................. 53 State participation (#2.6) ..................................................................................................................... 55 5. Monitoring and production ....................................................................................................... 64 3.1 Overview .................................................................................................................................... 64 3.2 Assessment ................................................................................................................................. 64 Overview of the extractive sector, including exploration activities (#3.1) .......................................... 64 Production data (#3.2) ......................................................................................................................... 65 Export data (#3.3) ................................................................................................................................. 66 4. Revenue collection .................................................................................................................... 68 4.1 Overview .................................................................................................................................... 68 4.2 Assessment ................................................................................................................................. 68 Materiality (#4.1) .................................................................................................................................. 68 In-kind revenues (#4.2) ........................................................................................................................ 73 Barter and infrastructure transactions (#4.3) ...................................................................................... 74 Transport revenues (#4.4) .................................................................................................................... 75 Transactions between SOEs and government (#4.5) ........................................................................... 75 Subnational direct payments (#4.6) ..................................................................................................... 76 Level of disaggregation (#4.7) .............................................................................................................. 77 Data timeliness (#4.8) .......................................................................................................................... 78 Data quality (#4.9) ................................................................................................................................ 78 5. Revenue management and distribution .................................................................................... 89 Website www.eiti.org Email [email protected] Telephone +47 22 20 08 00 Fax +47 22 83 08 02 Address EITI International Secretariat, Ruseløkkveien 26, 0251 Oslo, Norway 4 Validation of Mauritania: Report on initial data collection and stakeholder consultation 5.1 Overview .................................................................................................................................... 89 5.2 Assessment ................................................................................................................................. 90 Distribution of revenues (#5.1) ............................................................................................................ 90 Subnational transfers (#5.2) ................................................................................................................. 91 Additional information on revenue management and expenditures (#5.3) ........................................ 92 6. Social and economic spending ................................................................................................... 94 6.1 Overview .................................................................................................................................... 94 6.2 Assessment ................................................................................................................................. 95 Social expenditures (#6.1) .................................................................................................................... 95 SOE quasi fiscal expenditures (#6.2) ...................................................................................................