The World Bank Implementation Status & Results Report Afghanistan Gas Project (AGASP) (P172109) Afghanistan Gas Project (AGASP) (P172109) SOUTH ASIA | Afghanistan | Energy & Extractives Global Practice | IBRD/IDA | Investment Project Financing | FY 2020 | Seq No: 3 | ARCHIVED on 30-Sep-2021 | ISR47500 | Implementing Agencies: Ministry of Mines and Petroluem, Islamic Republic of Afghanistan Key Dates Key Project Dates Bank Approval Date: 26-Nov-2019 Effectiveness Date: 08-Jan-2020 Planned Mid Term Review Date: 14-Mar-2022 Actual Mid-Term Review Date: Original Closing Date: 31-Oct-2024 Revised Closing Date: 31-Oct-2024 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The PDO is to facilitate a sustainable supply of gas through targeted investments in gas infrastructure and enhanced gas sector governance . Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Component A: Sustaining Gas Supply:(Cost $35200000.00 M) Component B: Strengthening Gas Sector Governance:(Cost $13300000.00 M) Component C: Project Management:(Cost $4000000.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Unsatisfactory Overall Risk Rating High High Implementation Status and Key Decisions This ISR is prepared on the basis of a virtual implementation support mission undertaken by the task team on May 24 - June 16, 2021, as well as limited follow-up activities that took place through to August 15, 2021. Overall implementation progress, particularly with regards to the project's gas infrastructure component, has waned noticeably over the last several months. Measures to support the speed and efficiency of decision making processes regarding project management and oversight should be taken. While it is too early to record project results, some highlights are as follows: Procurement of the Supervision Engineer for the Construction of the Sheberghan-Mazar Pipeline (SMPL), including pre-construction surveys, detailed design, ESIA and optimization of field facility: The team is pleased that the SE was procured in record time. ILF has continued its work and has produced a number of key deliverables including the surveys and detailed design and engineering for the SMPL, key Environmental and Social documents, e.g Environmental and Social Audit (ESA) for the constructed portion of the SMPL and existing field facilities, Environmental and Social Impact Assessment (ESIA) for the unconstructed portion of the SMPL, Environmental and Social Management Plan (ESMP) for Constructed and Unconstructed portion of the SMPL. ILF has also conducted several technical and safety training activities for 9/30/2021 Page 1 of 7 The World Bank Implementation Status & Results Report Afghanistan Gas Project (AGASP) (P172109) AGE personnel and developed procedures for the safe operation of field facilities. The 2nd extension of the 1st phase contract is expected in August 2021. Project Management Support Firm (PMSF): There have been delays in the procurement of the Project Management Support Firm. The shortlist was cleared by the Bank in December 2020. The Technical Evaluation Report for the above-mentioned consulting services was submitted to the Bank on April 15, 2021 and the no objection was provided on April 19, 2021.The Combined Evaluation Report and Draft Negotiated Contract was approved on June 21, 2021. Contract award is expected by end of July 2021. Technical and Legal Support Firm (TLSF): ToR for TLSF was cleared on 11 November 2020, and procurement has progressed, albeit at a slow pace. It is expected that the procurement process will be finalized by the end of August 2021, at which time work can commence. Afghanistan Extractives Industry Transparency Initiative (AEITI): Afghanistan was suspended from EITI in January 2019 due to ‘inadequate progress’ in the implementation of its standards. Nineteen corrective actions were recommended by the EITI Secretariat for completion in eighteen months. With technical assistance from the World Bank under the AGASP project, AEITI successfully fulfilled fourteen and partially fulfilled five corrective actions. As a result, Afghanistan successfully reversed its suspension from EITI in October 2020. Afghanistan currently has achieved a ‘status of meaningful progress' under EITI. The 7th AEITI Report, covering the Afghanistan years 1398 and 1399 (21 December 2017- 20 December 2019), was published on 27 June 2021 following the alternative EITI process. The report was developed in house by the AEITI multi-stakeholder group with intensive technical assistance from the World Bank and the International EITI Secretariat. The Dari and Pashto versions of the report are expected to be published in July 2021. Afghanistan’s 8th AEITI Report, covering year 1399 (21 December 2019- 20 December 2020) is due for publication by December 2022. Afghanistan’s third validation under the EITI Standard, 2019 was scheduled for January 1, 2023. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance High High High Macroeconomic High High High Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program High Substantial Substantial Institutional Capacity for Implementation and High High Substantial Sustainability Fiduciary Substantial Substantial Substantial Environment and Social Substantial Substantial Substantial Stakeholders Substantial Substantial Substantial Other High High High Overall High High High Results PDO Indicators by Objectives / Outcomes Facilitate a sustainable supply of gas through targeted investments in gas infrastructure IN01015474 9/30/2021 Page 2 of 7 The World Bank Implementation Status & Results Report Afghanistan Gas Project (AGASP) (P172109) ►Increased capacity to deliver commercial quality natural gas through to off-takers in Sheberghan and Mazar (Cubic Meter(m3), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 330,000.00 450,000.00 560,000.00 900,000.00 Date 06-Sep-2019 30-Nov-2020 14-Jul-2021 16-Sep-2024 This indicator is reliant on a number of activities to be implemented over the next several months/years Comments: including the commissioning of the gas pipeline and the new amining plant. Facilitate a sustainable supply of gas through enhanced gas sector governance IN01015475 ►Improved institutional, regulatory and contractual framework for gas sector management and oversight (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Hydrocarbons Law Primary regulatory and (2018) and Exploration Hydrocarbons Law Hydrocarbons Law contractual framework & Production Sharing (2018) and Exploration & (2018) and Exploration & for upstream and mid- Value Contract Template. Production Sharing Production Sharing stream gas sector Administrative Contract Template. Contract Template. development regulations have been submitted to Cabinet. approved. Date 06-Sep-2019 30-Nov-2020 14-Jul-2021 16-Sep-2024 This indicator measures the progressive development of a institutional, legal, regulatory, and contractual Comments: framework that governs the gas sector Intermediate Results Indicators by Components COMPONENT A: SUSTAINING GAS SUPPLY IN01015601 ►Launch of an international tender Totimaidan gas blocks (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 06-Sep-2019 30-Nov-2020 14-Jul-2021 16-Sep-2024 IN01015604 ►Commissioning of the new amine plant (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 06-Sep-2019 30-Nov-2020 14-Jul-2021 16-Sep-2024 This indicator measures if the new amine plant for gas processing has been fully installed and Comments: commissioned IN01015606 9/30/2021 Page 3 of 7 The World Bank Implementation Status & Results Report Afghanistan Gas Project (AGASP) (P172109) ►Commissioning for new Sheberghan-Mazar Gas Pipeline (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 02-Dec-2019 30-Nov-2020 14-Jul-2021 16-Sep-2024 This indicator measures the final construction and full commissioning for the Sheberghan-Mazar Gas Comments: Pipeline IN01015608 ►Adoption of an updated field development plan for Yatimtaq gas field (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 06-Sep-2019 30-Nov-2020 14-Jul-2021 16-Sep-2024 Comments: This indicator measures the capacity of the MoMP and AOGRA to assess field development plans COMPONENT B: STRENGTHENING SECTOR GOVERNANCE IN01015603 ►Production of a jointly-developed (MoMP and AOGRA) contractual and regulatory package for gas sector development. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Hydrocarbons Law (2018) and Exploration & Production Sharing Final Draft of Hydrocarbons Law Hydrocarbons Law Contract Template Prioritized Contractual (2018) and Exploration & (2018) and Exploration & were approved prior to Value and Regulatory Production Sharing Production Sharing broad, representing Framework ready for Contract Template. Contract Template. the baseline. submission to Cabinet. Administrative regulations were more recently approved. Date 06-Sep-2019 30-Mar-2020 19-Jul-2021 16-Sep-2024 This component combines B.1. Strengthening the MoMP’s capacity to manage the gas sector; and B.2. Comments: Strengthening AOGRA's sector oversight, regulatory and monitoring institutions governing gas sector activities. IN01015605 ►Share of women professionals in technical and managerial fields at MoMP and OAGRA (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 5.00 5.00 5.00 10.00 Date 06-Sep-2019 30-Nov-2020 19-Jul-2021 16-Sep-2024 From Component B1.2. This indicator measures the success of recruitment and training efforts in the gas Comments: sector for women through the project. IN01015607 ►Development and dissemination of code of conduct to prevent Gender Based Violence in the extractive sector for investors (Yes/No, Custom) 9/30/2021 Page 4 of 7 The World Bank Implementation Status & Results Report Afghanistan Gas Project (AGASP) (P172109) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 06-Sep-2019 30-Nov-2020 19-Jul-2021 16-Sep-2024 This indictor measures the development and dissemination of guidelines to prevent violence against women in the extractives sector. With the recruitment of the gender specialists, this document is currently Comments: under preparation. IN01015609 ►Afghanistan’s EITI validation report shows improved results on greater number of parameters than the previous validation report (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 06-Sep-2019 01-Dec-2020 01-Dec-2020 16-Sep-2024 On 28 October 2020 the EITI International Board agreed that Afghanistan has made meaningful progress Comments: overall in implementing the 2019 EITI Standard. IN01015610 ►Percent of project related grievances addressed within one month (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 70.00 Date 06-Sep-2019 01-Dec-2020 01-Dec-2020 16-Sep-2024 While a grievance mechanisms is in place and grievances are being logged, there is no evidence that they Comments: are being resolved. IN01015611 ►Environmental and Social Unit of the MoMP fully staffed, operational and maintained. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Unit is currently staffed with consultants only, Unit is staffed with fully and includes a team civil servants and lead, 2 env specialists, operational - Staffing Unit is currently staffed one social of Unit is maintained, with consultants only. development an E&S management Unit is currently staffed Recruitment of team lead Value specialist, and a GRM system has been with consultants only and international specialists. developed and is specialists for E&S unit Procurement systematically used by delayed. international staff to monitor E&S specialists (firm) to risks/impacts in the support the E&S unit sector has been delayed. Date 06-Sep-2019 30-Nov-2020 19-Jul-2021 16-Sep-2024 This indicator measures the establishment and sustainability of the MoMP environmental and social unit, Comments: which plays a key monitoring and governance function IN01015612 ►Implementation of key recommendations from functional management review for AOGRA (Text, Custom) 9/30/2021 Page 5 of 7 The World Bank Implementation Status & Results Report Afghanistan Gas Project (AGASP) (P172109) Baseline Actual (Previous) Actual (Current) End Target All recommendations Value No Functional review No Functional review No Functional review from functional review implemented Date 16-Sep-2019 30-Nov-2020 19-Jul-2021 15-Oct-2024 This indicator maps to subcomponent B2 and measures the staffing and operationalization of AOGRA Comments: COMPONENT C: PROJECT MANAGEMENT IN01015602 ►Project management firm recruited and maintained by MoMP (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 06-Sep-2019 30-Nov-2020 14-Jul-2021 16-Sep-2024 Comments: This indicator measures the ability of the implementing unit to maintain strong project management. Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P172109 IDA-D5210 Effective USD 52.50 52.50 0.00 4.37 50.68 7.9% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P172109 IDA-D5210 Effective 26-Nov-2019 11-Dec-2019 08-Jan-2020 31-Oct-2024 31-Oct-2024 Cumulative Disbursements 9/30/2021 Page 6 of 7 The World Bank Implementation Status & Results Report Afghanistan Gas Project (AGASP) (P172109) PBC Disbursement Achievement Disbursed amount in Disbursement % PBC ID PBC Type Description Coc PBC Amount Status Coc for PBC Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 9/30/2021 Page 7 of 7