World Bank urges Yemen to endorse EITI [Archives:2007/1062/Local News]

SANA'A, June 24 ) Yemen must join the Extractive Industry Transparency Initiative (EITI) in order to upkeep the remaining oil reserves and get the optimal benefit out of it, says the World Bank.

The bank also called for ending petroleum subsidies in a gradual but time-bound way and further to work on improving the management of oil sector.

It hinted that the endorsing of the initiative by the Yemeni government would improve the government's credibility with civil society and the international donor community. Such a step requires a regular publication of all oil, gas and mining payments and revenues, making all information accessible to the public.

Transparency also involves making payments and revenues subject to credible and independent audit and engaging the civil society in design, monitoring, and the evaluation of the Extractive Industry Transparency Initiative implementation process.

The bank also stressed the importance of phasing out petroleum subsidies as they would improve macroeconomic stability, indicating that the prices are below the international ones and subsidies on the petroleum products for domestic consumption remain large, about nine percent of GDP in 2005.

Moreover, the bank pinpointed that Yemen lacks relevant environmental laws and regulations on production and use of oil and gas, demanding the establishment of quality standards and requirements for oil products.
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