EITI International Secretariat 18 March 2020 Validation of Armenia: Report on initial data collection and stakeholder consultation 2 Validation of Armenia: Report on initial data collection and stakeholder consultation Validation of Armenia: Report on initial data collection and stakeholder consultation Contents Abbreviations .............................................................................................................................. 4 Executive summary ..................................................................................................................... 6 Introduction ............................................................................................................................... 12 Part I – MSG Oversight .............................................................................................................. 15 1. Oversight of the EITI process ...................................................................................................... 15 1.1 Overview ................................................................................................................................. 15 1.2 Assessment ............................................................................................................................ 15 Government engagement in the EITI process (#1.1) ............................................................................ 15 Industry engagement in the EITI process (#1.2) ................................................................................... 17 Civil society engagement in the EITI process (#1.3) ............................................................................. 19 MSG governance and functioning (#1.4) ............................................................................................... 24 Work plan (#1.5) ...................................................................................................................................... 30 Part II – EITI Disclosures ........................................................................................................... 35 2. Award of contracts and licenses ................................................................................................ 35 2.1 Overview ................................................................................................................................. 35 2.2 Assessment ............................................................................................................................ 35 Legal framework (#2.1) ........................................................................................................................... 35 License allocations (#2.2) ....................................................................................................................... 36 License registers (#2.3) .......................................................................................................................... 39 Contract disclosures (#2.4) .................................................................................................................... 40 Beneficial ownership disclosure (#2.5) .................................................................................................. 41 State participation (#2.6) ........................................................................................................................ 43 3. Monitoring and production ......................................................................................................... 47 3.1 Overview ................................................................................................................................. 47 3.2 Assessment ............................................................................................................................ 47 Overview of the extractive sector, including exploration activities (#3.1) ........................................... 47 Production data (#3.2) ............................................................................................................................ 48 Export data (#3.3) ................................................................................................................................... 49 4. Revenue collection ..................................................................................................................... 53 4.1 Overview ................................................................................................................................. 53 4.2 Assessment ............................................................................................................................ 53 Materiality (#4.1) ..................................................................................................................................... 53 In-kind revenues (#4.2) ........................................................................................................................... 55 Barter and infrastructure transactions (#4.3) ....................................................................................... 56 Transport revenues (#4.4) ...................................................................................................................... 56 3 Validation of Armenia: Report on initial data collection and stakeholder consultation Transactions between SOEs and government (#4.5) ........................................................................... 57 Subnational direct payments (#4.6) ...................................................................................................... 57 Level of disaggregation (#4.7) ................................................................................................................ 58 Data timeliness (#4.8) ............................................................................................................................ 59 Data quality (#4.9)................................................................................................................................... 60 5. Revenue management and distribution .................................................................................... 65 5.1 Overview ................................................................................................................................. 65 5.2 Assessment ............................................................................................................................ 65 Distribution of revenues (#5.1) .............................................................................................................. 65 Subnational transfers (#5.2) .................................................................................................................. 66 Additional information on revenue management and expenditures (#5.3) ........................................ 69 6. Social and economic spending .................................................................................................. 73 6.1 Overview ................................................................................................................................. 73 6.2 Assessment ............................................................................................................................ 73 Social expenditures (#6.1) ...................................................................................................................... 73 SOE quasi fiscal expenditures (#6.2) ..................................................................................................... 74 Contribution of the extractive sector to the economy (#6.3) ................................................................ 75 Part III – Outcomes and Impact ................................................................................................ 78 7. Outcomes and Impact ................................................................................................................ 78 7.1 Overview ................................................................................................................................. 78 7.2 Assessment ............................................................................................................................ 78 Public debate (#7.1) ................................................................................................................................ 78 Data Accessibility (#7.2) ......................................................................................................................... 80 Lessons Learned and follow-up on recommendations (#7.3) .............................................................. 81 Outcomes and impact of implementation (#7.4) .................................................................................. 83 8. Impact analysis (not to be considered in assessing compliance with the EITI provisions) ........ 87 Annexes ..................................................................................................................................... 89 Annex A – List of MSG members and contact details ........................................................................... 89 Annex B – Cost of EITI Reports ............................................................................................................... 90 Annex C – List of stakeholders consulted .............................................................................................. 91 Annex D – List of reference