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: 6 | ARCHIVED on 15-Jun-2016 | ISR24076 | Implementing Agencies: Ministry of MIneral Resources 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:-- 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 6/15/2016 Page 1 of 12 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. Several major activities are under implementation, including transaction advisory support for the LNG project, financial and marketing advisory services to ENH, and geological data infrastructure development. Geophysical surveying has been completed and mapping to commence soon. Preparation of a Strategic Environmental and Social Assessment for mining and gas was launched in February, 2015, and after delays is expected to complete by December with consultations ongoing. The project remains on track to achieve its overall Project Development Objective and is rated as Satisfactory. The Project has achieved a number of its core intermediate results, including a computerized Mining Cadastre system and improving capacity for mine health and safety inspections, and is making steady progress on others. . The mining and gas industry in Mozambique has experienced important developments and challenges over the last couple of years. The new Mining and Petroleum Laws and corresponding Fiscal Laws were passed in August 2014, regulations were promulgated in early 2016. The mining sector has experienced serious difficulties over recent years, particularly in the coal sector. The continued low oil price environment and slowing growth of global LNG demand has resulted in declining gas prices, which puts at risk many global LNG projects at the planning stage. While Mozambique is well advanced in its preparation to become a major gas producer, final investment decisions by investors are delayed. According to the latest EITI report issued in December 2015, the revenue increase from the extractives sector is largely coming from capital gains taxes, while production went down for minerals as did traditional tax base. While new laws are in place, no new major projects have been launched under the new regime. It is noted that commodity ups and down are common, and that the Government of Mozambique continues to improve its frameworks and capacity in preparation to the next phase of activities in both mining and gas sectors. . Extractive Industries Transparency Initiative (EITI). Mozambique remains EITI compliant and MAGTAP provides support to the process. The latest report of December 2015 covers the accounts for two years: 2013 and 2014. Mozambique is expected to face its second validation for EITI compliance in 2016. Challenges for EITI include access to budget and ensuring follow up to recommendations. Discussion of various options on how to institutionalize EITI and better embed it ithin the government’s system are ongoing. 6/15/2016 Page 2 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Mozambique Mining and Gas Technical Assistance Project (P129847) 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 6/15/2016 Page 3 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Mozambique Mining and Gas Technical Assistance Project (P129847) Technical Design of Project or Program  --  Moderate  Moderate Institutional Capacity for Implementation and Sustainability  --  Substantial  Substantial Fiduciary  --  Moderate  Moderate Environment and Social  --  Moderate  Moderate Stakeholders  --  Moderate  Moderate Other  --  --  -- Overall  --  Moderate  Moderate 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 29-Oct-2015 08-Jun-2016 31-May-2020 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 7.00 7.00 7.00 Date 01-May-2013 29-Oct-2015 08-Jun-2016 31-May-2020 Comments Indicator will be updated during MTR 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 0.00 0.00 5.00 Date 01-May-2013 29-Oct-2015 08-Jun-2016 31-May-2020 6/15/2016 Page 4 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Mozambique Mining and Gas Technical Assistance Project (P129847) Comments Indicator will be updated during MTR PHINDPDOTBL  Regular health and safety and environmental monitoring visits and inspections to mines and gas exploration/production sites in linewith standards for supervision of compliance & monitoring of safety (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 59.00 59.00 50.00 Date 01-May-2013 29-Oct-2015 08-Jun-2016 31-May-2020 Comments Indicator will be updated during MTR 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 2.00 2.00 11.00 Date 01-May-2013 29-Oct-2015 08-Jun-2016 31-May-2020 PHINDPDOTBL  Direct project beneficiaries (Number, Core) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 450.00 450.00 2390.00 Date 01-May-2013 29-Oct-2015 08-Jun-2016 31-May-2020 PHINDPDOTBL  Female beneficiaries (Percentage, Core Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 46.00 46.00 35.00 6/15/2016 Page 5 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Mozambique Mining and Gas Technical Assistance Project (P129847) Overall Comments 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 29-Oct-2015 08-Jun-2016 31-May-2020 Comments Updated regulations promulgated in early 2016. Some system updates are still 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 29-Oct-2015 08-Jun-2016 31-May-2020 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 29-Oct-2015 08-Jun-2016 31-May-2020 6/15/2016 Page 6 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Mozambique Mining and Gas Technical Assistance Project (P129847) 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 29-Oct-2015 08-Jun-2016 31-May-2020 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 2000.00 Date 01-May-2013 29-Oct-2015 08-Jun-2016 31-May-2020 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 29-Oct-2015 08-Jun-2016 31-May-2020 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 29-Oct-2015 08-Jun-2016 31-May-2020 6/15/2016 Page 7 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Mozambique Mining and Gas Technical Assistance Project (P129847) 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 29-Oct-2015 08-Jun-2016 31-May-2020 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 19.00 140.00 Date 01-May-2013 29-Oct-2015 08-Jun-2016 31-May-2020 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 29-Oct-2015 08-Jun-2016 31-May-2020 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 29-Oct-2015 08-Jun-2016 31-May-2020 6/15/2016 Page 8 of 12 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 29-Oct-2015 08-Jun-2016 31-May-2020 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 29-Oct-2015 08-Jun-2016 31-May-2020 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 5.00 Date 01-May-2013 29-Oct-2015 08-Jun-2016 31-May-2020 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 29-Oct-2015 08-Jun-2016 31-May-2020 6/15/2016 Page 9 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Mozambique Mining and Gas Technical Assistance Project (P129847) 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 29-Oct-2015 08-Jun-2016 31-May-2020 PHINDIRITBL  Strategies and policies for strengthening linkages of mines and gas production with national economy developed (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N Y Y Y Date 01-May-2013 29-Oct-2015 08-Jun-2016 31-May-2020 PHINDIRITBL  Number of bankable business plans developed under the project related to local industry participation in provision of local goods and services to extractive industry (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 2.00 Date 01-May-2013 29-Oct-2015 08-Jun-2016 31-May-2020 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 29-Oct-2015 08-Jun-2016 31-May-2020 Overall Comments Data on Financial Performance 6/15/2016 Page 10 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Mozambique Mining and Gas Technical Assistance Project (P129847) 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 26.65 19.70 53% P129847 TF-16113 Effective USD 7.66 7.66 0.00 3.81 3.97 50% Key Dates (by loan) 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 There has been no restructuring to date. Related Project(s) 6/15/2016 Page 11 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Mozambique Mining and Gas Technical Assistance Project (P129847) There are no related projects. 6/15/2016 Page 12 of 12 Public Disclosure Copy