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: 2 | ARCHIVED on 16-Dec-2020 | ISR44503 | 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 Satisfactory Overall Implementation Progress (IP) Satisfactory Moderately Satisfactory Overall Risk Rating High High Implementation Status and Key Decisions The finding of this ISR are largely based on a virtual implementation support mission undertaken by the team on July 13 - 22, 2020, as well as follow-up activities that have taken place over the last several months. 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: The team is pleased that the SE was procured in record time. ILF has commenced its work in Sherbeghan and has satisfactorily completed a number of key deliverables. ILF has also conducted several technical and safety training activities for AGE personnel and developed procedures for the safe operation of field facilities. The 1st phase of the consultant’s contract is expected to be successfully completed by December 30, 2020. 12/16/2020 Page 1 of 7 The World Bank Implementation Status & Results Report Afghanistan Gas Project (AGASP) (P172109) Project Management Support Firm (PMSF): There have been some delays in the procurement of the project management support firm. The shortlist was cleared by the Bank in late November 2020. Afghanistan Extractives Industry Transparency Initiative (AEITI). Afghanistan had been suspended from EITI due to ‘inadequate progress’ on January 18, 2019, after which the World Bank began providing technical assistance to the process. Nineteen corrective actions had been recommended by the EITI Secretariat for completion in eighteen months. Out of these, AEITI successfully fulfilled fourteen and partially fulfilled five corrective actions with technical assistance from the World Bank under the AGASP project. As a result, Afghanistan successfully reversed its suspension from EITI on October 29, 2020. Afghanistan currently has achieved a ‘status of meaningful progress' under EITI. Afghanistan's next EITI Report is scheduled to be published by December 20, 2020. However, the country will seek a six month extension of the deadline from the EITI Board for publication of the Report by June 20, 2020. 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 High Substantial Institutional Capacity for Implementation and High High High 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 IN00924272 ►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 330,000.00 450,000.00 450,000.00 900,000.00 Date 06-Sep-2019 30-Mar-2020 30-Nov-2020 16-Sep-2024 12/16/2020 Page 2 of 7 The World Bank Implementation Status & Results Report Afghanistan Gas Project (AGASP) (P172109) 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 IN00924273 ►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 Hydrocarbons Law contractual framework (2018) and Exploration & (2018) and Exploration & (2018) and Exploration for upstream and mid- Value Production Sharing Production Sharing & Production Sharing stream gas sector Contract Template. Contract Template. Contract Template. development submitted to Cabinet. Date 06-Sep-2019 30-Mar-2020 30-Nov-2020 16-Sep-2024 This indicator measures the progressive development of a institutional, legal, regulatory, and contractual Comments: framework that governs the gas sector Overall Comments PDO The project is still in the early stages of implementation, with procurement delays. One very large consultancy, the Technical Legal Support Firm (TLSF), will supporting the government in the implementation of the number of key activities mapped to indicators in the results framework (such as the international tenders, the construction of the contractual regulatory framework and operationalization of AOGRA). Until the consultancy has been procured and implementation had begun (June/July 2021), many of the targets in the results framework are likely to remain unchanged. Intermediate Results Indicators by Components COMPONENT A: SUSTAINING GAS SUPPLY IN00924274 ►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-Mar-2020 30-Nov-2020 16-Sep-2024 IN00924297 ►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-Mar-2020 30-Nov-2020 16-Sep-2024 This indicator measures if the new amine plant for gas processing has been fully installed and Comments: commissioned IN00924299 12/16/2020 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 No Yes Date 02-Dec-2019 30-Mar-2020 30-Nov-2020 16-Sep-2024 This indicator measures the final construction and full commissioning for the Sheberghan-Mazar Gas Comments: Pipeline IN00924301 ►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-Mar-2020 30-Nov-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 IN00924296 ►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 Hydrocarbons Law Prioritized Contractual (2018) and Exploration & (2018) and Exploration & (2018) and Exploration Value and Regulatory Production Sharing Production Sharing & Production Sharing Framework ready for Contract Template. Contract Template. Contract Template. submission to Cabinet. Date 06-Sep-2019 30-Mar-2020 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. IN00924298 ►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-Mar-2020 30-Nov-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. IN00924300 ►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 No Yes 12/16/2020 Page 4 of 7 The World Bank Implementation Status & Results Report Afghanistan Gas Project (AGASP) (P172109) Date 06-Sep-2019 30-Mar-2020 30-Nov-2020 16-Sep-2024 This indictor measures the development and dissemination of guidelines to prevent violence against Comments: women in the extractives sector. IN00924302 ►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 Yes Date 06-Sep-2019 30-Mar-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. IN00924303 ►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 30-Mar-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. IN00924304 ►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 Unit is currently staffed of Unit is maintained, with consultants only. with consultants only. an E&S management Unit is currently staffed Recruitment of team lead Recruitment of team Value system has been with consultants only and international lead and international developed and is specialists for E&S unit specialists for E&S unit systematically used by delayed. delayed. staff to monitor E&S risks/impacts in the sector Date 06-Sep-2019 30-Mar-2020 30-Nov-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 IN00924305 ►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 No Functional review from functional review implemented Date 16-Sep-2019 30-Mar-2020 30-Nov-2020 15-Oct-2024 Comments: This indicator maps to subcomponent B2 and measures the staffing and operationalization of AOGRA 12/16/2020 Page 5 of 7 The World Bank Implementation Status & Results Report Afghanistan Gas Project (AGASP) (P172109) COMPONENT C: PROJECT MANAGEMENT IN00924275 ►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-Mar-2020 30-Nov-2020 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 3.14 51.48 5.8% 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 12/16/2020 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. 12/16/2020 Page 7 of 7