With the potential for vast state revenues from oil extraction and
mining in coming years, Cambodia is currently failing to manage its
nascent extractive industries, according to a think tank.
New York-based Revenue Watch Institute on Wednesday launched its 2013
Resource Governance Index, which included Cambodia for the first time.
It looked at 58 countries, assessing governments’ reporting practices,
control of corruption and rule of law in the oil, gas and mineral
sectors.
Cambodia was classed as “failing” and ranked in 52nd place in the index, just behind Zimbabwe, South Sudan and Afghanistan.
“While Cambodia received a fairly high score for its institutional
and legal setting, the nation’s very low scores in its reporting
practices and enabling environment accounted for its low ranking in
resource governance,” says a statement from Cambodians for Revenue
Resource Transparency, a local partner of Revenue Watch.
“The government does not publish information on licensing and
contract terms are not disclosed. Insufficient government reporting
mechanisms and a lack of effective checks on the licensing and budgetary
process also hamper accountability and transparency.”
The government has granted dozens of mining exploration licenses—and
a handful of extraction licenses—but mining has not yet begun on a
large scale in Cambodia.
A consortium headed by U.S. oil giant Chevron has found oil and gas
in an exploration block in a Cambodian-owned part of the Gulf of
Thailand. Talks to begin extracting hydrocarbons appear to have stalled
and the government is still drawing up a tax regime for such projects.
“Although Cambodia’s extractive industries sector is still in its
infancy and exploration is on-going—generating only a fraction of the
government’s revenues—civil society groups call for a greater, continued
focus on adopting and developing good governance practices in this
strategic sector,” the statement says.
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