Peru

The Ministry of Energy and Mines and Mines has led the Government’s active participation in the EITI. It has maintained a satisfactory level of engagement, appointed senior officials to lead, and coordinated and mobilised resources for EITI implementation. Stakeholders confirmed that they trust and have confidence in the appointed officials

There is an enabling environment for company participation. Companies are actively and effectively engaged in the EITI process. Obstacles to company participation regarding taxpayer confidentiality provisions have successfully addressed.

Civil society is actively and effectively engaged in the EITI process. There is an enabling environment for civil society participation. The fundamental rights of civil society actors are respected and there are no major obstacles to their participation in EITI related activities and discussions. Civil society stakeholders speak freely, collaborate with each other, are not restrained, coerced or reprimanded as result of their EITI-related activities. There is, however, scope to increase civil society engagement in the EITI beyond the multi-stakeholder group.

The CMPE comprises relevant actors and appears to function well with an inclusive decision-making process. Stakeholders have identified opportunities for reviewing the representation of government entities. The ToRs for the CMPE largely addresses the requirements of the EITI Standard and appears to be followed in practice.

Peru has an updated work plan that sets out the key aspects of the EITI process, aligned with national priorities. The work plan is publicly accessible with specific and measurable implementation objectives. Stakeholders and companies were adequately engaged in the EITI work plan´s preparation.

Comprehensive disclosure of relevant laws, regulations and fiscal regime in the 2014 Report. Improvement in the disclosure vis-ávis the 2013 Report.

While the E-cadastre system appears to comprehensively address license allocation in the mining sector, the issue of licence transfers in the hydrocarbon sector has not been addressed by the CMPE. Similarly, in the oil and gas sector, substantial information is publically available. However, the comprehensiveness of this information and the disclosure of license transfers has not been addressed by the CMPE.

The information required is publically available through the webpages of INGEMMET and Perupetro.

Peru’s approach to contract transparency is exemplary. Contracts are publically available via MINEM or Perupetro’s websites. The EITI Reports provide an overview of the mining projects that have signed special contracts for guarantees and promotion of investments and links to hydrocarbon contracts.

There is no evidence that the CMPE has discussed this topic in any detail.

With respect to Activos Mineros, EITI Peru provided a detailed explanation of the prevailing rules and practices regarding the financial relationship between this state-owned enterprise and the government. Activos Mineros has no ownership in any operating company within the country’s extractive sector. EITI Peru provided a clear description of Perupetro’s activities and revenues, including the operation of Block Z-2B. The coverage of royalty payments from license contracts appears to be comprehensive.

The EITI Reports provides an overview of exploration including significant exploration activities. Links to further reading are provided. Stakeholders were satisfied with these disclosures.

Production data by commodity is included in Peru’s EITI reports and on government websites

The EITI Report contains the value of exports by main commodities. Although export volumes are not disclosed as part of the EITI Report, the International Secretariat has confirmed this data is readily available through other official publications.

EITI Peru have agreed a definition of materiality in terms of the value of production. However, the EITI Board has been clear that basing the definition of materiality on the value of production alone is not sufficient. An ex post assessment of the coverage of payments showed that a material company have been omitted.

Based on the information that is publically available, it seems clear that this requirement is not applicable.

This requirement is not applicable in Peru. The Independent Administrator has confirmed the inapplicability of the “Works for Taxes” regime under 4.3 Requirement, noting its coverage under income tax payments under requirement 4.1.

The assessment confirms that the government does not collect material revenues from transportation of oil, gas or minerals.

The 2013 EITI Report addresses the role of the state-owned enterprises. Material revenues collected by Perupetro are well documented in the assessment of Requirement 4.1. Revenues collected by Petroperu are related to the downstream sector and are not relevant for the EITI in Peru.

The International Secretariat could establish that subnational government entities do not levy any specific taxes to the extractives industries. Other taxes collected by subnational governments as registration fees appear to be immaterial.

It has been confirmed that the report is fully disaggregated by company and revenue stream.

Peru has published timely EITI Reports covering four fiscal years (2011-2014). Minutes of CMPE meetings document the decision regarding the fiscal period covered by the reports, the approval of the reports and a decision to pilot an online disclosure system.

Although the standard ToRs for Independent Administrator services has not been consistent with the Board-approved template, the 2015-2016 EITI Report addresses most of the key requirements and the overall objective of safeguarding reliable data has been satisfied. The Independent Administrator has reviewed the scope of the payments (and revenues) to be reported and reviewed the associated audit and assurance procedures. The Independent Administrator commented on the comprehensiveness and reliability of the data.

EITI reports indicate how the income from the extractives revenues are distributed. Peru has a publicly available system disclosing the distribution and use of these revenues.

Statutory subnational transfers in Peru are disclosed. Two regions are piloting EITI implementation.)

EITI Reports disclose earmarked revenues as part of the Requirement 5.2. Peru has publicly available government systems disclosing national budget, audit processes and studies addressing the sustainability and resource dependence. EITI Reports could be an opportunity to educate the public about these systems.

EITI Peru have agreed on the existence of mandatory social expenditures in the oil and the mining sector. There remains however a lack of comprehensive disclosure of social expenditures codified in provisions of mining companies’ mandatory environmental impact assessments and oil and gas mandatory social expenditures by law or terms of the contract governing extractives activities.

Based on the information available, the understanding of the International Secretariat is that SOE’s quasi-fiscal expenditures are not applicable in Peru.

Information regarding the contribution of the extractive sector to the economy is widely available in the webpages of public entities as well as in the EITI Reports

Peru EITI Reports have been actively promoted and distributed, are publicly available and contributed to the public debate. The government, parliamentarians, civil society, the media and the industry are familiar with the reports. Dissemination events have been carried out in the capital and in several regions. Civil society and the industry have separately disseminated the EITI Reports.

EITI-Peru has undertaken some work to make data from EITI Reports accessible like an online visualization tool. Nevertheless, additional efforts should be implemented to fully address this provision.

The MSG has taken steps to act upon lessons learnt, to identify weaknesses of the EITI process and to consider the recommendations for improvements from the Independent Administrator. There is evidence that stakeholders have discussed how to strengthen EITI’s impact.

The APR notes on recommendations provided by the Independent Administrator. Even though an impact assessment was not launched, there is evidence on regularly discussions to identify opportunities to increase impact. EITI Peru has an active role in developing recommendations and exploring options for addressing issues of greatest relevance such as subnational implementation.