Second National Reconcilation Study EITI Peru - unofficial…

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Consultoría para la Elaboración del Segundo Estudio Nacional de Conciliación de la Iniciativa de Transparencia para las Industrias Extractivas (ITIE) en el Perú (2008 – 2010) (continuación) 2.2. Distribution Once the oil royalty is determined, Perupetro calculates the oil canon and sobrecanon based on the value of production in the month underway and informs the Secretariat of Decentralization of the President’s Office of the Council of Ministers. The amount corresponding to the oil canon and sobrecanon is detracted from the oil royalties collected during the first and second half of the month underway. The balance of the royalties collected but not used for the canon or sobrecanon will be utilized to determine the shares that Perupetro, MEM, OSINERGMIN will perceive according to law and the monitoring expenses incurred to audit commercial transactions during the period. 2.2.1 Area of Influence This is determined according to the territorial area of the Local and Regional Governments in which oil exploitation takes place according to what the law establishes for different departments. Currently, INEI”S Digital Census Cartography is used to distribute income from the canon between district and provincial municipalities. This cartography is demarcates the territorial circumscriptions of the country’s districts and provinces and will be used until official cartography is available to precisely define the boundaries of all the country’s districts and provinces. 2.2.2 Distribution Criteria The oil canon and sobrecanon are distributed among local and regional governments according to the distribution indices that MEF develops according to criteria for i) Population ii) Unsatisfied Basic Needs. Data on the latter is obtained from the INEI. The distribution percentages that correspond to the five departments where oil companies operate is as follows: (Loreto, Piura and Huánuco for the Canon; and Ucayali and Tumbes for the sobrecanon). Loreto (Canon and Sobrecanon) – Ucayali (Sobrecanon) Percentage % Beneficiary 52% Regional Government 40% Provincial Municipalities in the department 5% Universidad Nacional de la Amazonía 3% Instituto de Investigación de la Amazonía Peruana Consultoría para la Comisión Multisectorial Permanente de la ITIE Perú 56
Consultoría para la Elaboración del Segundo Estudio Nacional de Conciliación de la Iniciativa de Transparencia para las Industrias Extractivas (ITIE) en el Perú (2008 – 2010) (continuación) Ucayali (Canon) Percentage % Beneficiary 40% Local governments of the department’s district and provincial municipalities 20% Local governments of the municipalities in the province where the resource is exploited 20% Regional government 10% Local government of the municipality in which the resource is exploited 5% National universities 3% Instituto Tecnológicos Nacionales 2% Instituto de Investigación de la Amazonía Peruana Piura and Tumbes (Canon and sobrecanon) Percentage % Beneficiary 20% Regional Government 20% District and provincial municipalities where production is located 50% Other district and provincial municipalities in the department 5% Universidad nacional 5% Instituto superiores pedagógicos y tecnológicos Huánuco - Puerto Inca (Canon) Percentage % Beneficiary 100% Municipal council of the district of Puerto Inca 2.2.3 Calculating the distribution indices MEM, through the General Directorate for Hydrocarbons, sends DGDFAS - MEF (formerly DGAES – MEF) the location of the administrative economic units (oil companies) per District, Province and Department. The INEI provides information on the population and Unsatisfied Basic Needs (UBN) per District - Province – Department. The DGDFAS - MEF (antes DGAES – MEF) uses the aforementioned elements to determine the indices of distribution and sends the results to the Secretariat of Decentralization. The distribution indices are built with the following criteria: (i) In the case of Tumbes and Piura, the distribution index is built on the foundation of the equitable provincial distribution index per territory and within the provinces based on a combination of factors relative to population, poverty, environmental contamination and basic needs. (ii) In the case of Loreto and Puerto Inca – Huanuco, the distribution index has been determined according to the distribution percentages that were established by Law (Art. 8° de la Ley N° 24300). Consultoría para la Comisión Multisectorial Permanente de la ITIE Perú 57
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Second National Reconcilation Study EITI Peru - unofficial…

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