The World Bank Supporting Gas Project Negotiations and Enhancing Institutional Capacities (P163563) REPORT NO.: RES51064 DOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF SUPPORTING GAS PROJECT NEGOTIATIONS AND ENHANCING INSTITUTIONAL CAPACITIES APPROVED ON MARCH 16, 2018 TO MINISTRY OF ECONOMY AND FINANCE ENERGY & EXTRACTIVES AFRICA WEST Regional Vice President: Ousmane Diagana Country Director: Nathan M. Belete Regional Director: Dena Ringold Practice Manager/Manager: Michael C. Stanley Task Team Leader(s): Susana Moreira The World Bank Supporting Gas Project Negotiations and Enhancing Institutional Capacities (P163563) I. BASIC DATA Product Information Project ID Financing Instrument P163563 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 16-Mar-2018 23-Sep-2022 Organizations Borrower Responsible Agency Ministry of Economy and Finance Ministry of Petroleum, Energy and Mines Project Development Objective (PDO) Original PDO To support the government capacity to drive negotiation towards final investment decision, and lay the foundations for the gas sector’s contribution to the economy through enhanced legal and regulatory frameworks and capacity building. Summary Status of Financing (US$, Millions) Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-D2730 16-Mar-2018 19-Apr-2018 19-Apr-2018 23-Sep-2022 20.00 8.74 11.09 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No II. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES The World Bank Supporting Gas Project Negotiations and Enhancing Institutional Capacities (P163563) PROJECT STATUS The progress in project implementation has continued to improve, with disbursements increasing from 28% in July 2021 to 44% at mid-April 2022 and the achievement of several objectives: 3 of 5 project development objectives and 10 of 16 intermediary project objectives. Commitments are at 65% of the total amount of financing. In addition, the project has also met or surpassed all the measurable targets previously set. This project has achieved: (1) the mobilization of the expertise and advice necessary to support the Government in the negotiations of gas projects, in particular GTA (Greater Tortue Ahmeyim); (2) the roll-out of several studies that will help lay the foundations for the sector's contribution to the economy (e.g., new strategic vision for the hydrocarbons sector, local content strategy, gas master plan); (3) the implementation of significant assistance to the energy transition through the financing of several key studies such as the roadmap for the development of a low-carbon hydrogen sector; (4) the execution of a major capacity building plan, including an institutional diagnosis of the MPME and the SMH, training, recruitment of key personnel, etc.; and (5) significant support to the vocational training sector, which has enabled, for example, the creation of a training institute for industrial technologies, including gas. Project implementation however is still being undermined by: (1) the context of the international oil and gas sector that has resulted in delays in the GTA project; (2) complex procurement procedures in Mauritania that continue to generate significant delays, and (3) delays in the execution of contracts driven primarily by difficulties in gathering information and securing the beneficiaries' review and approval of deliverables. The project is continuing to follow the strategy discussed and adopted following the mid-term review, which includes: (1) prioritization of activities with a high impact on disbursement and on the achievement of PADG's objectives; (2) mobilization of PADG beneficiaries through: i) the realization of workshops and recruiting consultants to assist in the review and validation of the deliverables, ii) the hiring by the PIU of a specialist to focus exclusively on contract management, and iii) the participation in quarterly meeting of the PADG Steering Committee; (3) improving procurement processes and contract execution through: i) weekly meetings between the PIU and the Bank team, ii) strengthening of the project's evaluation and contract negotiations team so that multiple procurement processes can be handled in parallel, and iii) adoption of an online based procurement tool ; and (4) improving the project monitoring and supervision system through: i) weekly meetings between the PIU and the Bank team, ii) training to enhance the PIU's fiduciary, monitoring and evaluation (M&E) and technical capacity, and iii) set up of a Cloud-based archive to hold all relevant materials pertaining to PADG's implementation, including all key deliverables. PROPOSED CHANGE On April 12, 2022, the Government requested an 18-month extension on the closing date of the loan (IDA-D2730) from September 23, 2022 to March 22, 2024 to allow the completion of key activities in order for the PDO to be fully achieved. This would be the first extension of closing date of the loan. This extension is necessary for the continuity of the technical support for the negotiations of the gas projects, and in particular for phase 2 of GTA, and of the technical assistance for the development of the energy transition. This restructuring does not propose a change in the Environmental Assessment category nor trigger any safeguards policies. There are no outstanding audits for this grant and Financial Management arrangements are adequate and remain unchanged. Finally, the performance of the Recipient is satisfactory and the PDO remains relevant and achievable. The World Bank Supporting Gas Project Negotiations and Enhancing Institutional Capacities (P163563) III. DETAILED CHANGES LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications IDA-D2730 Effective 23-Sep-2022 22-Mar-2024 22-Jul-2024