Public Disclosure Copy The World Bank Implementation Status & Results Report Mozambique Mining and Gas Technical Assistance Project (P129847) Mozambique Mining and Gas Technical Assistance Project (P129847) AFRICA | Mozambique | Energy & Extractives Global Practice | IBRD/IDA | Technical Assistance Loan | FY 2013 | Seq No: 8 | ARCHIVED on 17-May-2017 | ISR27664 | Implementing Agencies: Key Dates Key Project Dates Bank Approval Date:28-Mar-2013 Effectiveness Date:22-Aug-2013 Planned Mid Term Review Date:20-Jun-2016 Actual Mid-Term Review Date:26-Aug-2016 Original Closing Date:31-May-2020 Revised Closing Date:31-May-2020 Project Development Objectives Project Development Objective (from Project Appraisal Document) The proposed project development objective is to strengthen the capacity and governance systems of key institutions to manage the mining and hydrocarbon sectors in Mozambique. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Component A: Mining Governance Capacity Building and Reform:(Cost $17.65 M) Component B: Natural Gas Capacity Building and Governance Reform:(Cost $11.05 M) Component C: Cross-cutting Mining/ Natural Gas Capacity Building and Reforms:(Cost $9.95 M) Component D: Cross-Sectoral Reforms:(Cost $0.80 M) Component E: Project Management and Coordination:(Cost $4.90 M) PPA Refinancing:(Cost $3.00 M) Contingencies:(Cost $2.65 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Satisfactory  Satisfactory 5/17/2017 Page 1 of 13 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Mozambique Mining and Gas Technical Assistance Project (P129847) Overall Implementation Progress (IP)  Satisfactory  Satisfactory Overall Risk Rating  Moderate  Moderate Implementation Status and Key Decisions MAGTAP continues to be implemented according to (and under some components ahead of) the planned schedule, with procurement progressing in all major components. the PMU team continues to manage the project with high performance standards. Several key activities have been completed: Strategic Environmental and Social Assessment (SESA) of mining and gas sectors; Artisanal and Small Scale Mining (ASM) strategy and geophysical surveying. Update of mining cadastre system is in advanced stages. MIREME has mainstreamed at least twenty civil servants’ positions which were engaged under transitional support under MAGTAP into permanent positions, vehicles to support inspections and geological campaign have been delivered. The project provided extensive training to various officials, with a specific focus on inspections, environmental management, mining licensing, geology, as well as more general project and financial management and procurement. A number of important activities are under way including continued support for negotiations of LNG projects in Areas I and IV, financial and marketing advisory services on gas. MAGTAP will be receiving an additional financing in the amount of $25 million from IDA and upto GBP 3 million co-financing from DfID. AF will cover cost overruns and continue supporting key activities on gas component. The AF will also take on implementation of recommendations of SESA and the new ASM strategy among other activities. Additional Financing is schedule for approval in early FY18. EITI process in Mozambique continues to be rather mixed. While Mozambique manages to produce timely report and maintain required data open and available, public debate and high level engagement in EITI remains weak. Mozambique’s second validation for EITI Standard 2016 compliance commenced in January 2017 and International Secretariat staff traveled to the country in February 2017 (coinciding with the WB team visit). Mozambique’s 2013-2014 EITI Report was published in December 2015, and the 2015- 2016 EITI Report is due to be published by the end of this calendar year. In December 2016, the country published Mozambique Beneficial ownership roadmap, and work on further improvement of this document is still continuing. The new work-plan and budget for 2017-2020 would be very important to define the next phase of EITI in Mozambique, including its institutionalization and sustainability in the long-run. Validation results for Mozambique are expected in October 2017. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  Substantial  Substantial Macroeconomic  --  Moderate  Moderate Sector Strategies and Policies  --  Moderate  Moderate Technical Design of Project or Program  --  Moderate  Moderate Institutional Capacity for Implementation and Sustainability  --  Moderate  Moderate Fiduciary  --  Moderate  Moderate Environment and Social  --  Moderate  Moderate Stakeholders  --  Moderate  Moderate Other  --  --  -- Overall  --  Moderate  Moderate 5/17/2017 Page 2 of 13 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Mozambique Mining and Gas Technical Assistance Project (P129847) Results Project Development Objective Indicators PHINDPDOTBL  Mining Cadastral database and GIS system integrated with the land-use databases & accessible on-line for public level information (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N Y Y Y Date 01-May-2013 26-Aug-2016 01-Mar-2017 31-May-2020 Comments Mining Cadastre was updated and made public in 2013. A new update is in progress to align with revised mining regulations issued January 2016. System and license back-log cleanup is in progress in parallel. Integration with land use system will not be taking place due to incompatibility issues with land cadastre system not having same level of detail and functionality as mining cadastre. It was agreed that the integration will be for now put aside pending improvement of the land cadastre system. This indicator will be updated as part of the AF processing. PHINDPDOTBL  Mines and gas construction projects subject to annual technical inspections in line with established standards. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 10.00 10.00 25.00 Date 01-May-2013 26-Aug-2016 01-Mar-2017 31-May-2020 Comments These indicators will be updated in mid-2017 (annual update) as part of AF processing, Mine inspection undertaken for major mines by IGREME with support of DIPREMEs. Some ASM operations are visited by DIPREMEs but not regularly and lack capacity. INP completed 5 annual audit and carries out semi-annual inspections. New targets for mining is about 5 per year and for gas 3 per year. PHINDPDOTBL  Mines construction projects subject to annual technical inspections in line with established standards (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 5.00 5.00 15.00 5/17/2017 Page 3 of 13 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Mozambique Mining and Gas Technical Assistance Project (P129847) Date 01-May-2013 26-Aug-2016 01-Mar-2017 31-May-2020 PHINDPDOTBL  Gas construction projects subject to annual technical inspections in line with established standards (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 5.00 5.00 10.00 Date 01-May-2013 26-Aug-2016 01-Mar-2017 31-May-2020 PHINDPDOTBL  Mines and gas operations subject to fiscal controls per year in line with established standards (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 7.00 7.00 25.00 Date 01-May-2013 26-Aug-2016 01-Mar-2017 31-May-2020 Comments These indicators will be updated in mid-2017 (annual update) as part of AF processing, For mining projects, fiscal audits are done ad hoc by the MRA where there are issues suspected. Major mining projects by Vale, Kenmarre, ICVL, Jindal, Baobab Resources. Completed audits for Anadarko, Sasol (all years of operation), ENI – on going. New targets for mining is about 5 per year and for gas 3 per year. PHINDPDOTBL  Mines operations subject to fiscal controls per year in line with established standards (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 5.00 5.00 15.00 Date 01-May-2013 26-Aug-2016 01-Mar-2017 31-May-2020 5/17/2017 Page 4 of 13 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Mozambique Mining and Gas Technical Assistance Project (P129847) PHINDPDOTBL  Gas operations subject to fiscal controls per year in line with established standards (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2.00 2.00 10.00 Date 01-May-2013 26-Aug-2016 01-Mar-2017 31-May-2020 PHINDPDOTBL  New mining/gas/infrastructure related contracts negotiated, benefitting from the developed frameworks and procedures (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3.00 3.00 5.00 Date 01-May-2013 26-Aug-2016 01-Mar-2017 31-May-2020 Comments Completed review of Rio Tinto/ICVL license transfer, and finalized several agreements related to FID for Anadarko and ENI. PHINDPDOTBL  Direct project beneficiaries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 989.00 1,400.00 2,390.00 Date 01-May-2013 26-Aug-2016 01-Mar-2017 31-May-2020 PHINDPDOTBL  Female beneficiaries (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 46.00 46.00 35.00 5/17/2017 Page 5 of 13 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Mozambique Mining and Gas Technical Assistance Project (P129847) Overall Comments Total number of people receiving training under MAGTAP. Records are kept based on approved annual training plans (completed for 2014, 2015 and 2016 training plan). Intermediate Results Indicators PHINDIRITBL  Mining Cadastre procedures updated (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N Y Y Y Date 01-May-2013 26-Aug-2016 01-Mar-2017 31-May-2020 Comments New mining cadastre system and related regulations in place since 2013, but with the revision of the law in 2014, new regulations were passed in 2016 and cadastre system upgrade is in progress in early 2017 – target completed until next upgrade is due. PHINDIRITBL  Mineral Information System upgraded with new geodata for strategic areas (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N N Y Date 01-May-2013 26-Aug-2016 01-Mar-2017 31-May-2020 Comments New geophysical data is collected, but system is not yet designed to provide public access. Selection of the consultant is in the final stages (contract negotiations). PHINDIRITBL  Number of ASM associations/cooperatives (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 63.00 0.00 0.00 89.00 Date 05-Nov-2012 26-Aug-2016 01-Mar-2017 31-May-2020 Comments 5/17/2017 Page 6 of 13 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Mozambique Mining and Gas Technical Assistance Project (P129847) This sub-component not yet started –the ASM strategy has been completed and approved by MIREME. Due to cost overruns in Component B, implementation of the ASM strategy is being postponed due to lack of funds into the additional financing. PHINDIRITBL  Procedures of tendering and evaluation of mineral assets developed (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N N Y Date 01-May-2013 26-Aug-2016 01-Mar-2017 31-May-2020 Comments Partially completed as part of new mining regulations and new mining cadastre which include tendering module. Evaluation of assets was part of Rio Tinto/ICVL deal in 2014, as part of the assignment, consultants designed a workflow to support review of the deal, but once completed it was not proposed for formal adoption. PHINDIRITBL  Number of ASMs who have received targeted training (of which female %) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 2,000.00 Date 01-May-2013 26-Aug-2016 01-Mar-2017 31-May-2020 Comments Not yet started (awaiting launch of Additional Financing). 5/17/2017 Page 7 of 13 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Mozambique Mining and Gas Technical Assistance Project (P129847) PHINDIRITBL  Health and safety and environmental regulations, including standards and monitoring procedures updated (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N N Y Date 01-May-2013 26-Aug-2016 01-Mar-2017 31-May-2020 Comments Not yet started. Following adoption of the new mining regulations in 2016, environmental regulations are to be updated; selection of consultant in final stages. PHINDIRITBL  Local law enforcement and judicial personnel trained on mining law and regulations under the project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2.00 2.00 200.00 Date 01-May-2013 26-Aug-2016 01-Mar-2017 31-May-2020 Comments Not yet started. This component will be implemented together with community development component in 2017. Training on mining inspection included some law enforcement personnel. PHINDIRITBL  Number of studies assessing economic and financial feasibility for development of gas infrastructure carried out (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 1.00 5.00 Date 01-May-2013 26-Aug-2016 01-Mar-2017 31-May-2020 Comments A study on potential gas pipeline from Rovuma has started and inception report produced. 5/17/2017 Page 8 of 13 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Mozambique Mining and Gas Technical Assistance Project (P129847) PHINDIRITBL  Staff of gas sector management institutions trained through MAGTAP to manage, regulate and monitor gas sector (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 19.00 19.00 60.00 Date 01-May-2013 26-Aug-2016 01-Mar-2017 31-May-2020 Comments Number of personnel from MIREME and INP benefiting from training to-date. PHINDIRITBL  Tools and mechanisms to attract financing for the State participation are in place (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N Y Y Y Date 01-May-2013 26-Aug-2016 01-Mar-2017 31-May-2020 Comments Phase 1 of financial advisory services to ENH on its state share in Rovuma is completed. It assessed several options and recommended mechanism that will apply to at least Block IV which is expected to proceed to FID in 2017. Financial advisory will continue with finalizing negotiations of financing agreements. PHINDIRITBL  Pemba Regional Office equipped and operational to undertake health and safety, and environmental inspections of gas field operations (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N Y Y Y Date 01-May-2013 26-Aug-2016 01-Mar-2017 31-May-2020 Comments Pemba office opened and IT equipment and furniture installed. Some limited training provided. More activities planned for next phases of the project. 5/17/2017 Page 9 of 13 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Mozambique Mining and Gas Technical Assistance Project (P129847) PHINDIRITBL  Computerized Environmental Management Information System developed (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N N Y Date 01-May-2013 26-Aug-2016 01-Mar-2017 31-May-2020 Comments Not yet started. PHINDIRITBL  Results of Strategic Environmental and Social Assessment publicly disclosed by GoM in papers and through workshops and public outreach (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N N Y Date 01-May-2013 26-Aug-2016 01-Mar-2017 31-Dec-2016 PHINDIRITBL  Annual disclosure of reports on extractive industries revenues and revenue allocation at national level (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 5.00 5.00 7.00 Date 01-May-2013 26-Aug-2016 01-Mar-2017 31-May-2020 Comments EITI reports are published annually. The latest report covered years 2014 and 2015 making EITI reports more current. 5/17/2017 Page 10 of 13 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Mozambique Mining and Gas Technical Assistance Project (P129847) PHINDIRITBL  Provincial Directorates of Mineral Resources equipped & capable to monitor and inspect mining & exploration operations in their jurisdictions (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 1.00 1.00 10.00 Date 01-May-2013 26-Aug-2016 01-Mar-2017 31-May-2020 Comments Provincial DIPREMEs of Tete, Zambezia, Niassa, Cabo Delgado, Manica and Nampula received vehicles, laptops, printers, scanners and data shows. All of those (except Manica) received new staff – civil servants – which were engaged under MAGTAP. Capacity is still low, but progress is made and more training is upcoming. PHINDIRITBL  Number of CSO/CBOs trained on transparency monitoring across the extractive sector value chain (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 50.00 Date 01-May-2013 26-Aug-2016 01-Mar-2017 31-May-2020 Comments Contract with provider of training and capacity building for CSOs is signed and launched. PHINDIRITBL  Number of studies completed and recommendations adopted to stimulate linkages between mining and gas projects and Mozambican economy (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 2.00 Date 01-May-2013 26-Aug-2016 01-Mar-2017 31-May-2020 Comments A study (led by IPEME) of SMEs and options for their engagement with the industry is being completed. A study (led by IPEME) of SMEs and options for their engagement with the industry is being completed. Presentations in provinces already took place and recommendations are to be adopted – with some of them expected to be supported in the additional financing. 5/17/2017 Page 11 of 13 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Mozambique Mining and Gas Technical Assistance Project (P129847) PHINDIRITBL  Sector specific regulations and action plan for local content developed and adopted (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N N Y Date 01-May-2013 26-Aug-2016 01-Mar-2017 31-May-2020 Comments Consultants’ services for “Business plan for ENH Logistics” has started to put in place framework for local industry participation through ENH. But, it is unlikely that MAGTAP would be able to meaningfully undertake other activities. PHINDIRITBL  Standards & procedures for oil & gas contingency planning & emergency preparations developed (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N N Y Date 01-May-2013 26-Aug-2016 01-Mar-2017 31-May-2020 Comments Draft report has been prepared and submitted to INAMAR. It is under consultation. Overall Comments Contract signed but not yet launched. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P129847 IDA-51990 Effective USD 50.00 50.00 0.00 27.75 18.11 55% P129847 TF-16113 Effective USD 6.67 6.67 0.00 4.99 2.40 75% Key Dates (by loan) 5/17/2017 Page 12 of 13 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Mozambique Mining and Gas Technical Assistance Project (P129847) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P129847 IDA-51990 Effective 28-Mar-2013 19-Apr-2013 22-Aug-2013 31-May-2020 31-May-2020 P129847 TF-16113 Effective 27-Jan-2014 27-Jan-2014 27-Jan-2014 30-Nov-2018 30-Nov-2018 Cumulative Disbursements Restructuring History Level 2 Approved on 15-Sep-2016 Related Project(s) P161683-Mining and Gas Technical Assistance Additional Financing 5/17/2017 Page 13 of 13 Public Disclosure Copy