In-kind revenues: Trinidad and Tobago

Trinidad and Tobago’s 2010-11 EITI Report identified incomplete reporting on in-kind revenues paid by companies to state owned enterprises (SOEs), and the revenue received by the SOEs from the sale of these commodities.

The National Gas Company of Trinidad and Tobago Limited (NGC) is a SOE which purchases, transports, sells and distributes natural gas to industrial users. NGC supplies some of the gas that it collects in-kind as royalty to the Trinidad and Tobago Electricity Commission. The 2010-11 EITI Report found that there is no formal contract in place setting out the terms for the sale and payment of this gas to the Electricity Commission, and the take or pay arrangements for the royalty entitlement are not clearly understood. The Independent Administrator, the firm producing the EITI Report, noted that “it is important that transactions relating to state owned enterprises are properly regulated and transparently explained”.

The 2010-11 EITI Report recommended that the government should clarify how these arrangements should work, and establish an appropriate reporting framework to cover such arrangements.

The reports published since have included information on NGCs agreements with companies and provided details on the types of revenue flows that NGC collects in-kind. For example, the 2011-12 EITI Report disclosed information on the types of payments that are permitted to be received inkind by the government and SOEs. The 2012-13 EITI Report included information on the volumes of gas paid by the companies that have arrangements providing for payments to be made in-kind.