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: 1 | ARCHIVED on 29-Apr-2020 | ISR40962 | 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 Overall Implementation Progress (IP) -- Satisfactory Overall Risk Rating -- High Implementation Status and Key Decisions The finding of this ISR are largely based on a implementation support mission undertaken by the team on February 15 - 20, 2020, this was the first mission since the project reached effectiveness and implementation of the project is still at the beginning stages. Overall implementation particularly with regards to the gas infrastructure component has been satisfactory, but it has required extensive hand-holding by the Bank. Overtime measures should be taken to increase the MoMP's capacity to implement with a greater level of automony. While it is too early to record project results and concert progress, some highlights are as follows: - Procurement of the Supervision Engineer for the Construction of the Sherbeghan-Mazar Pipeline (SMPL), including pre-construction surveys, detailed design, ESIA and optimization of field facility - is currently underway with the technical proposals having been evaluated. The procurement process for this activity is expected to be finalized in early May 2020. - Project Management Support Firm (PMSF): There have been some delays in the procurement of the project management support firm . ToRs were cleared by the Bank. 4/29/2020 Page 1 of 7 The World Bank Implementation Status & Results Report Afghanistan Gas Project (AGASP) (P172109) Afghanistan Extractives Industry Transparency Initiative (AEITI). Afghanistan was suspended from EITI in January 2019 following its first validation under EITI. AGASP project has been supporting AEITI in its efforts to reverse the suspension, by providing Technical Assistance to vital corrective actions recommended during the country's first EITI validation. Broadly, this has involved: (i) strengthening the governance mechanism of the Multi-Stakeholder Group (MSG) with more open and transparent nomination process of stakeholders; (ii) publishing improved AEITI reports, additional studies and infographics to address data gaps identified by the first EITI Validation Report; (iii) making AEITI more sustainable by launching, curating and enhancing an online Transparency Portal at the Ministry of Mines and Petroleum (MoMP) which allows public access to data on extractives production, revenue, ownership, and payments. The AEITI process, with assistance from the World Bank and donors, has improved tremendously since Afghanistan's suspension from EITI. However, AEITI's strength on data collection and reporting has not been matched by its stakeholder engagement mechanisms. The capacity constraints facing AEITI in terms of stakeholder engagement, however, are reflective of similar constraints across the country. Constraints to stakeholder engagement due to security issues has now been severely increased because of the spread of the coronavirus. Issues in governance of the multi-stakeholder group that steers AEITI are now being addressed, with improved election procedures for the refreshment of CSO and industry members to the MSG having been adopted. However, the actual elections/replenishment of the constituencies have been put off due to coronavirus concerns. Afghanistan's planned application for early re-validation, which was to be submitted in March, 2020, has now been postponed due to coronavirus concerns impeding implementation of AEITI’s stakeholder engagement activities. A high priority of the AGASP project will be to support the government in undergoing re-validation and successfully reversing suspension from EITI by demonstrating fulfillment of the recommended corrective actions. Afghanistan's application for EITI re-validation is now likely to be made in May/June, 2020. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance High -- High Macroeconomic High -- High Sector Strategies and Policies Moderate -- Moderate Technical Design of Project or Program High -- High Institutional Capacity for Implementation and High -- High Sustainability Fiduciary Substantial -- Substantial Environment and Social Substantial -- Substantial Stakeholders Substantial -- Substantial Other High -- High Overall High -- High Results PDO Indicators by Objectives / Outcomes Facilitate a sustainable supply of gas through targeted investments in gas infrastructure 4/29/2020 Page 2 of 7 The World Bank Implementation Status & Results Report Afghanistan Gas Project (AGASP) (P172109) IN00817874 ►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 -- 450,000.00 900,000.00 Date 06-Sep-2019 -- 30-Mar-2020 16-Sep-2024 this indicator measures increase capacity to deliver commercial quality natural gas to off-takers in Comments: Sheberghan and Mazar (Mcmd cumulative). Facilitate a sustainable supply of gas through enhanced gas sector governance IN00817875 ►Improved institutional, regulatory and contractual framework for gas sector management and oversight (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Primary regulatory and Hydrocarbons Law Hydrocarbons Law contractual framework (2018) and Exploration & (2018) and Exploration for upstream and mid- Value -- Production Sharing & Production Sharing stream gas sector Contract Template. Contract Template. development submitted to Cabinet. Date 06-Sep-2019 -- 30-Mar-2020 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 IN00817916 ►Launch of an international tender Totimaidan gas blocks (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No -- No Yes Date 06-Sep-2019 -- 30-Mar-2020 16-Sep-2024 IN00817919 ►Commissioning of the new amine plant (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No -- No Yes Date 06-Sep-2019 -- 30-Mar-2020 16-Sep-2024 This indicator measures if the new amine plant for gas processing has been fully installed and Comments: commissioned IN00817921 4/29/2020 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 Yes Date 02-Dec-2019 -- 30-Mar-2020 16-Sep-2024 This indicator measures the final construction and full commissioning for the Sheberghan-Mazar Gas Comments: Pipeline IN00817923 ►Adoption of an updated field development plan for Yatimtaq gas field (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No -- No Yes Date 06-Sep-2019 -- 30-Mar-2020 16-Sep-2024 Comments: This indicator measures the capacity of the MoMP and AOGRA to assess field development plans COMPONENT B: STRENGTHENING SECTOR GOVERNANCE IN00817918 ►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 Final Draft of Hydrocarbons Law Hydrocarbons Law Prioritized Contractual (2018) and Exploration & (2018) and Exploration Value -- and Regulatory Production Sharing & Production Sharing Framework ready for Contract Template. Contract Template. submission to Cabinet. Date 06-Sep-2019 -- 30-Mar-2020 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. IN00817920 ►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 10.00 Date 06-Sep-2019 -- 30-Mar-2020 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. IN00817922 ►Development and dissemination of code of conduct to prevent Gender Based Violence in the extractive sector for investors (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No -- No Yes 4/29/2020 Page 4 of 7 The World Bank Implementation Status & Results Report Afghanistan Gas Project (AGASP) (P172109) Date 06-Sep-2019 -- 30-Mar-2020 16-Sep-2024 This indictor measures the development and dissemination of guidelines to prevent violence against Comments: women in the extractives sector. IN00817924 ►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 -- No Yes Date 06-Sep-2019 -- 30-Mar-2020 16-Sep-2024 From Component B1.4. This indicator measures the success of implementation of key accountability and Comments: transparency initiatives based on international standards of transparency, in particular the Extractives Industry Transparency Initiative (EITI) IN00817925 ►Percent of project related grievances addressed within one month (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 70.00 Date 06-Sep-2019 -- 30-Mar-2020 16-Sep-2024 Comments: This indicator measures the responsiveness of the project grievance redress mechanism. IN00817926 ►Environmental and Social Unit of the MoMP fully staffed, operational and maintained. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Unit is staffed with fully civil servants and operational - Staffing Unit is currently staffed of Unit is maintained, with consultants only. an E&S management Unit is currently staffed Recruitment of team Value -- system has been with consultants only lead and international developed and is specialists for E&S unit systematically used by delayed. staff to monitor E&S risks/impacts in the sector Date 06-Sep-2019 -- 30-Mar-2020 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 IN00817927 ►Implementation of key recommendations from functional management review for AOGRA (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target All recommendations Value No Functional review -- No Functional review from functional review implemented Date 16-Sep-2019 -- 30-Mar-2020 15-Oct-2024 This indicator maps to subcomponent B2 and measures the staffing and operationalization of AOGRA Comments: 4/29/2020 Page 5 of 7 The World Bank Implementation Status & Results Report Afghanistan Gas Project (AGASP) (P172109) COMPONENT C: PROJECT MANAGEMENT IN00817917 ►Project management firm recruited and maintained by MoMP (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No -- No Yes Date 06-Sep-2019 -- 30-Mar-2020 16-Sep-2024 Comments: This indicator measures the ability of the implementing unit to maintain strong project management. Overall Comments IR Project is at the very early stages of implementation - thus few results have been recorded. 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 1.60 51.16 3% 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 4/29/2020 Page 6 of 7 The World Bank Implementation Status & Results Report Afghanistan Gas Project (AGASP) (P172109) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 4/29/2020 Page 7 of 7