Initial  Work  and  Advocacy  Plan

 

 

1. Aim of the Project

 

The aim of the project is to work out recommendations towards improving the quality of governance in Azerbaijan’s extractive industries and creating effective mechanisms of public monitoring. The implementation of these mechanisms can contribute to a more effective use of the country’s revenues from the development of oil and gas fields.

 

To achieve this aim, the following activities are planned:

 

  • Studying and assessing good governance components in Azerbaijan in general and in extractive industries in particular. Preparing recommendations on improving the quality of governance;
  • Analyzing the risks of ineffective use of oil revenues, budget resources and the loans received by the government;
  • Analyzing the potential and capabilities of the civil society (namely, NGOs and mass media) to monitor the government’s activity/inactivity. Preparing recommendations to improve the potential and capacity of the civil society.

 

 

2. Identification programs and projects that may serve as partners

 

2.1. OSI programs and projects

 

Existing contacts with the following projects will be developed as part of this project:

 

  • Caspian Revenue Watch Project;
  • Publish What You Pay Initiative;
  • Extractive Industry Transparency Initiative;
  • Local Government and Public Sector Reform Initiative.

 

2.2. Other donors programs and projects

 

The programs and projects in the area of good governance implemented by the WB, UNDP, USAID, EU, OECD, GTZ will be studied.

 

2.3. Programs and projects by international and local organizations

 

The results of researches and activities of the following organizations will be studied:

 

  • Global Witness;
  • Save the Children;
  • ABA CEELI;
  • Fridrich Ebert Foundation;
  • Fridrich Nauman Foundation;
  • Transnational Crime and Corruption Center;
  • Public Finance Monitoring Center (local organization);
  • Center for Economic Research (local organization)  

 

These organizations are implementing a number of anti-corruption projects and those on improving transparency in extractive industries. Closer contact will be established with these organizations and exchange of information facilitated.

 

 

3. Final outcome of the project

 

3.1. 20-page policy study

 

Analyzing main laws. Identifying the provisions that don’t meet transparency, reporting and other good governance requirements. These include the Constitution and such laws and legal acts as:

 

  • Law “On Public Service”;
  • Law “On Fighting Corruption”;
  • Law “On State Purchases”;
  • State program to fight corruption;
  • “Tax Code”;
  • “Customs Code”;
  • Law “On the Chamber of Accounts”;
  • Law “On the state budget and the budget process”;
  • Provisions regulating the activity of the State Oil Fund;
  • Regulations for recruiting public workers;
  • Regulations of financial accountability of public workers.

 

3.2. Policy briefing paper

 

Recommendations:

 

  • On improving the legislation: strengthening the requirements concerning transparency and accountability; eliminating vague provisions preconditioning corruption and arbitrariness; fulfilling the recommendations of international organizations and the World Bank group in the area of good governance;
  • On boosting the potential of the civil society in an effort to create more effective mechanisms for monitoring the government’s activity in managing public funds.

 

3.3. Research paper

 

  • Analysis of the risks and possible consequences of ineffective governance of oil revenues;
  • Analysis of the results of Azerbaijan’s two-year participation in the EITI;
  • Analysis of the legal acts regulating the financial and budgetary activities of national companies operating in the extractive and energy sectors of the economy;
  • Analysis of oil contracts: problems of transparency and accountability;
  • Civil society tasks.

 

3.4. Publications:

 

  • Newspaper articles: results of the analysis of laws and the legal acts; results of the analysis of documents regulating the financial and budgetary activities of national companies operating in the extractive and energy sectors of the economy; results of the analysis of transparency and accountability problems in oil contracts;
  • Book containing the results of a research as part of the project and recommendation for the government, companies, civil society and the media.