The World Bank Armenia EITI Support (P166274) REPORT NO.: RES38923 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF ARMENIA EITI SUPPORT APPROVED ON FEBRUARY 8, 2018 TO PRIME MINISTER'S OFFICE ENERGY & EXTRACTIVES EUROPE AND CENTRAL ASIA Regional Vice President: Cyril E Muller Country Director: Sebastian-A Molineus Global Director: Riccardo Puliti Practice Manager/Manager: Christopher Gilbert Sheldon Task Team Leader(s): Kirsten Lori Hund The World Bank Armenia EITI Support (P166274) ABBREVIATIONS AND ACRONYMS The World Bank Armenia EITI Support (P166274) Note to Task Teams: The following sections are system generated and can only be edited online in the Portal. BASIC DATA Product Information Project ID Financing Instrument P166274 Investment Project Financing Original EA Category Current EA Category Approval Date Current Closing Date 08-Feb-2018 30-Apr-2020 Organizations Borrower Responsible Agency Prime Minister's office Prime Ministers Office, Republic of Armenia Financing (in USD Million) FIN_SUMM_PUB_TBL SUMMARY Total Project Cost 0 Total Financing 0 Financing Gap 0 DETAILS -NewFin3 The World Bank Armenia EITI Support (P166274) Project Development Objective (PDO) Original PDO To assist the Government of Armenia to increase transparency and accountability in the mining sector by implementing the Extractive Industries Transparency Initiative standard. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net TF Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed TF-A6768 14-Feb-2018 20-Mar-2018 18-Apr-2018 30-Apr-2020 .35 .17 .18 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No Note to Task Teams: End of system generated content, document is editable from here. I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING 1. The World Bank has been supporting EITI implementation in Armenia since 2015. The current EGPS-MDTF Funded EITI Grant started in February 2018. During the fiscal year EITI made strong progress, and the agreed upon work plan is being implemented according to schedule. The first EITI Report was produced and published in January 2019 and presented at a national conference attended by the deputy Prime Minister and a large national and international audience. The EITI multi-stakeholder group (MSG), consisting of representatives from government, civil society and the mining industry is fully operational and meets at least 4 times in a year under the leadership of Deputy Prime Minister Avinyan. During the EITI Global Conference in Paris in June 2019, Armenia received an award of the EITI President for introducing multi-stakeholder mining governance in the country, and because of its innovative systematic disclosure of mining data. Multi-stakeholder sub-groups of the MSG, such as the Beneficial Ownership and Responsible Mining group work effectively. Legislation regarding beneficial ownership mandatory disclosure was approved by Parliament in Spring 2019. Currently the MSG Beneficial Ownership sub-group is working with experts to develop a beneficial ownership disclosure form and an associated government decree. The Responsible Mining sub-group developed a road-map and country priorities. The EITI MSG is working closely with the Mining Sector Policy team (see below). They reviewed and commented respective ToRs and review reports that are part of the policy development process. FM arrangements under the project are adequate and acceptable to the Bank; there is a single audit requirement for the project financial statements, which will cover the entire period during which withdrawals from the Grant Account were made. The audit is not due yet. 2. In September – November, Armenia will go through its first EITI independent validation process. Validation preparation training helped the MSG and EITI National Secretariat to be ready for validation. The World Bank Armenia EITI Support () The World Bank coordinates closely with other donors with regards to supporting EITI. Thanks to this, GiZ got involved in supporting the EITI Secretariat. As a result of GiZ stepping in this fiscal year, savings on the World Bank Grant have been made. The government of Armenia therefore requested an extension of the World Bank EITI Grant with 9 months, to allow them to use the additional time and resources to pay for the production of Armenia’s third EITI Report. 3. In addition, the government of Armenia has decided to change its project implementation structure, per January 2020, moving away from a central project implementation unit within the Ministry of Finance. The EITI project will fall under the responsibility of the Prime Minister’s Office per January 1, 2020. II. DESCRIPTION OF PROPOSED CHANGES Proposed Changes 4. The Project will be extended with 9 months: from April 30, 2020 till January 31st, 2021 5. The responsible agency for this project will be changed from the PID in the Ministry of Finance to the Prime Ministers Office III. SUMMARY OF CHANGES Changed Not Changed Implementing Agency ✔ Loan Closing Date(s) ✔ Institutional Arrangements ✔ Implementation Schedule ✔ Project's Development Objectives ✔ Results Framework ✔ Components and Cost ✔ Cancellations Proposed ✔ Additional Financing Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ Disbursement Estimates ✔ Change in Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ The World Bank Armenia EITI Support () Legal Covenants ✔ Financial Management ✔ Procurement ✔ Other Change(s) ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_IA_TABLE IMPLEMENTING AGENCY Implementing Agency Name Type Action PID, Ministry of Finance Implementing Marked for Deletion Agency Prime Ministers Office, Republic of Armenia Implementing New Agency OPS_DETAILEDCHANGES_LOANCLOSING_TABLE LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline TF Status Closing Closing(s) Closing for Withdrawal Applications TF-A6768 Effective 30-Apr-2020 31-Jan-2021 31-May-2021 Note to Task Teams: End of system generated content, document is editable from here.