Public Disclosure Copy
The World Bank Implementation Status & Results Report
Afghanistan: Sustainable Development of Natural Resources Project II (P118925)
Afghanistan: Sustainable Development of Natural Resources Project II (P118925)
SOUTH ASIA | Afghanistan | Energy and Mining Global Practice |
IBRD/IDA | Technical Assistance Loan | FY 2011 | Seq No: 5 | ARCHIVED on 13-Dec-2014 | ISR16999 |
Implementing Agencies:
Key Dates
Key Project Dates
Board Approval date:31-May-2011 Effectiveness Date:21-Sep-2011
Planned Mid Term Review Date:27-Jan-2014 Actual Mid-Term Review Date:27-Jan-2014
Original Closing Date:30-Jun-2016 Revised Closing Date:30-Jun-2016
Project Development Objectives
Project Development Objective (from Project Appraisal Document)
to assist the Ministry of Mines (MoM) and the National Environmental Protection Agency (NEPA) in further improving their capacitiesto effectively
regulate Afghanistan‘s mineral resource development in a transparent and efficient manner, and foster private sectordevelopment.
Has the Project Development Objective been changed since Board Approval of the Project Objective?
No
PHRPDODEL
Components
Name
Component A. Award of Contracts and Licenses:(Cost $8300000.00 M)
Component B: Regulation and Monitoring of Operations:(Cost $19100000.00 M)
Component C: Preservation of Aynak Antiquities and Support for Alternative Livelihoodsthrough Sustainable ASM:(Cost $6600000.00 M)
Component D: Project Implementation Support:(Cost $9000000.00 M)
Overall Ratings
Name Previous Rating Current Rating
Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory
Overall Implementation Progress (IP) Moderately Satisfactory Satisfactory
Overall Risk Rating -- Substantial
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Public Disclosure Copy
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The World Bank Implementation Status & Results Report
Afghanistan: Sustainable Development of Natural Resources Project II (P118925)
Implementation Status and Key Decisions
This ISR is based on discussions with the PMU, other relevant government counterparts, and project consultants (i.e GAF, UNICON,DAFA, GIZ) which
took place from April - October 2014. (Please note that due to the security situation in the country and the suspension of missions, required several
missions outside of Kabul, as well as a reliance on VCs and ACs). Key achievements and implementation status during the reporting period include the
following:
Project Restructuring: Based on the findings of the MTR, the project restructuring was reciently approved by Bank management. On August 06, 2014
the Bank received an official letter (No. 23310323) from the Ministry of Finance, Government of Afghanistan, requesting a restructuring of SNDRP2. The
MTR concluded that there was scope for restructuring of the project to reduce duplication with other donor funded activities and to enhance the project
responsiveness to the MoMP and NEPA’s evolving priorities in the sector. The restructuring included the cancellation of a number of specific project
activities and in some cases a reduction in the allocated amount budgeted for other activities, resulting in a US $9 million cancellation in the grant
amount. The restructuring also include revisions to the project results framework and target indicators.
Component 1 Award of Contracts and Licenses: Transaction based activities around Hajigak iron ore have been impeded by a weakening
commodity price, delays in passage of the new Mining Law and appointment of a new Minister. As indicated in the results framework there have been a
total of 10 larger mining and hydrocarbon tenders throughout the country including: Aynak, Hajigak, Badakhshan Gold, Zarkashan deposit,
Balkhab Copper Deposit & two oil tenders.
Component 2 Regulation and Monitoring of Operations: An independent external inspection and contract compliance monitoring system is in place,
but field security has impeded field inspection. Capacity building of National Environmental Protection Agency(NEPA) on inspectorate service functions
and regulatory monitoring (around ESIA’s) has begun, but the consultant has yet to report back with an overall assessment of the challenges. This
consultancy was mobilized in August 2014. The MoMP continues to struggle to implement the first Resettlement Action Plan (RAP) for Aynak in a timely
manner and prepare adequate documentation regarding the process and the associated Grievance Redress Mechanism (GRM); further, the MoMP has
initiated further acquisition without following the stabndrads set out in the first RAP or in the subsequent Resettlement Policy Framework included in the
ESMF. To address these weaknesses in MoMP. the Aynak Monitoring & Compliance consultant (GAF) has been asked to reinforce the social
development consultants within its’ team.
According to the results framework, the project aims to support the promulgation of six mine related regulations by project closure. Preparation of Mining
Regulations in the areas of technical, HSE, Explosives, with support from the World Bank, currently is underway. Preparation of financial and
environmental and social regulations will commence in early 2015. The Bank has urged the government to ensure that all relevant stakeholders are
adequately consulted with and inputs are considered in the preparation of the regulations.
Afghanistan Extractive Industies Transparency Initiative (AEITI) underwent validation in 2013, resulting in the Board deciding to extend the country’s
candidacy by 18 months. Afghanistan had until 10 October 2014 to demonstrate compliance with the 2011 rules (and address 8 identified deficiencies).
The Bank team has worked closely with DFID and the International Secretariat in Oslo to respond with appropriate capacity building support and policy
advice; however concern remain that the conditions for compliance have not adequately been met. This as a result of a number of factors including
frequent changes in key staffing of AEITI. The Secretariat will make recommendation to the Board around the options of suspension, delisting or
compliance; and the International Secretariat, Bank team and DFID agree that this is priority for the President and new Minister of Finance to resolve
internally.
• Component 3 Preservation of Aynak antiquities and support for alternative livelihoods through sustainable artisanal and small-scale mining
(ASM): As indicated in the results framework, 80 percent of the archeological site located in the "red zone" has been excavated, including through the
procurement of some 20+ international archeologists, 50 national archeologists, and some 500+ laborers residing in the surrounding communities. Over
the past year, the MoMP and Ministry of Information and Cultural (MoIC) has significantly increased t heir level of coordination (a bottleneck to progress
in the past) and ownership over the project.
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Public Disclosure Copy
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The World Bank Implementation Status & Results Report
Afghanistan: Sustainable Development of Natural Resources Project II (P118925)
Risks
Systematic Operations Risk-rating Tool
Risk Category Rating at Approval Previous Rating Current Rating
Political and Governance -- -- High
Macroeconomic -- -- Moderate
Sector Strategies and Policies -- -- Substantial
Technical Design of Project or Program -- -- Moderate
Institutional Capacity for Implementation and
Sustainability
-- -- Moderate
Fiduciary -- -- Moderate
Environment and Social -- -- High
Stakeholders -- -- Moderate
Other -- -- --
Overall -- -- Substantial
Results
Project Development Objective Indicators
PHINDPDOTBL
Cumulative number of tenders for larger mining and hydrocarbon deposits (Number, Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value 1.00 10.00 10.00 4.00
Date 01-Sep-2011 01-Apr-2014 25-Nov-2014 30-Dec-2016
Comments
The actual number includes , Hajigak, Badakhshan Gold, Zarkashan deposit, Balkhab Copper Deposit & two oil tenders.
PHINDPDOTBL
Production data collected and reported for medium scale and for large scale mining and hydrocarbon operations (Number,
Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value 1.00 1.00 1.00 10.00
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The World Bank Implementation Status & Results Report
Afghanistan: Sustainable Development of Natural Resources Project II (P118925)
Date 01-Sep-2011 01-Apr-2014 24-Nov-2014 30-Dec-2016
Comments
The Ministry has received the production data from Amu Darya oil production Company (CNPCI).
These data are including;
• Daily production report.
• Seismic Data Acquisition
• Well Lock Report
• Well test Report
PHINDPDOTBL
Number of corporatization plans drafted (cumulative) (Number, Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value 0.00 0.00 0.00 2.00
Date 01-Sep-2011 01-Apr-2014 01-Apr-2014 30-Dec-2016
Comments
MoMP have hired a consultancy firm for Afghan Gas Corporatization and Northern Coal. he consultancy for AGE commenced their work in
Dec. 2013 and the consultancy for NCE commenced their work in June 2014.
PHINDPDOTBL
EITI Reconciliation Reports issued (cumulative) (Number, Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value 1.00 2.00 3.00 3.00
Date 01-Sep-2010 01-Apr-2014 24-Nov-2014 30-Dec-2016
Comments
Nov-2014
Three Reconciliation Reports, one Validation Report and one Scoping study report have been produced.
1- 1st Reconciliation report covering year 2008-2009
2- 2nd Reconciliation report covering year 1389
3- 3rd Reconciliation report covering year 1390.
PHINDPDOTBL
Field investigation reports for HSE compliance at medium and large scale mining and oil/gas operations (reports prepared,
issued, corrective actions taken by operator) (Number, Custom)
Baseline Actual (Previous) Actual (Current) End Target
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The World Bank Implementation Status & Results Report
Afghanistan: Sustainable Development of Natural Resources Project II (P118925)
Value 1.00 1.00 1.00 5.00
Date 01-Sep-2011 01-Apr-2014 24-Nov-2014 30-Dec-2016
Comments
Field investigation report for HSE has been completed by CNPCI. 2 other reports for the Dragon and Turkish Petroleum are being drafted
and would be prepared before the activities of the firm are started (March 2015).
PHINDPDOTBL
Percent of Women trained (as a percentage of total trained) in gemstone cutting, polishing and jewelry making. (Number,
Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value -- 0.00 0.00 40.00
Date 01-Sep-2011 01-Apr-2014 24-Nov-2014 30-Dec-2016
Comments
Under SDNRP Ⅱ, the consultancy services for Artisanal and Small Mining (ASM) will commence the services by first week of Dec. 2014.
PHINDPDOTBL
Percentage of sites in Aynak Valley with antiquities where protection activities have started versus total number of sites within
the red zone (Percentage, Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value 10.00 75.00 80.00 50.00
Date 01-Sep-2010 01-Apr-2014 24-Nov-2014 30-Dec-2016
Overall Comments
80 % of the red zone done. Due to high security threat MoMP had to reduce number of the internationals at the site. Therefore, the recovery and
preservation process become slow. The challenge MoM{ have is to remove the stupas and artifacts on top of the red zone. However, with the
current team we cannot do it. The plan for removal of the stupas and required resource shared with the Bank during June 2014 mission.
Intermediate Results Indicators
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Afghanistan: Sustainable Development of Natural Resources Project II (P118925)
PHINDIRITBL
Publication of a new Mining Sector Development Strategy and new policies and plans regarding quarrying and ASM mining
(Text, Custom)
Baseline Actual (Previous) Actual (Current) End Target
One main and 18 One main and 18
Overarching national
individual policies individual policies ASM Mining
Extractive Industries
Value including ASM have including ASM have plan approved
Excellence Program
been made approved been made approved and published
(NEIEP) published in draft
and published. and published.
Date 01-Sep-2011 01-Apr-2014 24-Nov-2014 31-Dec-2015
PHINDIRITBL
% of new geodata collected as a percentage to total area (Percentage, Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value 10.00 80.00 85.00 85.00
Date 01-Sep-2011 01-Apr-2014 24-Nov-2014 30-Dec-2016
Comments
GIZ-IS have identified more than 300 scientific reports & papers published from 1830 to 2014 in scientific journals, conferences & etc. The
two GIZ-IS librarians have so far added more than 100 to the Ministry database.
PHINDIRITBL
Percent of licenses digitized (Percentage, Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value 5.00 90.00 90.00 85.00
Date 01-Sep-2011 01-Apr-2014 24-Nov-2014 30-Dec-2016
PHINDIRITBL
Number of days to process medium scale licenses (Days, Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value 180.00 90.00 150.00 --
Date 01-Sep-2011 01-Apr-2014 02-Dec-2014 30-Dec-2016
Comments
MoMP cadaster decentralized to 34 provincial offices. The Cadastre office sometimes cant properly manage the situation.
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The World Bank Implementation Status & Results Report
Afghanistan: Sustainable Development of Natural Resources Project II (P118925)
PHINDIRITBL
Number of trained mine inspectors (cumulative) (Number, Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value 30.00 32.00 32.00 50.00
Date 01-Sep-2011 01-Apr-2014 02-Dec-2014 30-Dec-2016
Comments
The Geomin (Consulting firm) is hired to train the inspectors. The Team planning to commence their services by first week of December
2014.
PHINDIRITBL
Staffing and annual budget for the compliance office at NEPA (Text, Custom)
Baseline Actual (Previous) Actual (Current) End Target
One National
(Translator/Interpreter).
The contract of
Two national, in
Consultancy Services Additional staff
addition to one
for Building Regulatory positons
international.
Value 0 Capacity in the National identified and in
Procurement of a firm
Environmental the process of
for capacity building for
Protection Agency was being filled.
NEPA is finalized.
awarded to SIM S.p.A
and commenced their
work on 1st Sep. 2014.
Date 01-Sep-2011 01-Oct-2014 02-Dec-2014 31-Dec-2015
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The World Bank Implementation Status & Results Report
Afghanistan: Sustainable Development of Natural Resources Project II (P118925)
PHINDIRITBL
Number of inspectors trained in inspecting appropriate mining techniques and environmental management (Number, Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value 10.00 -- 10.00 30.00
Date 01-Dec-2011 -- 02-Dec-2014 30-Jun-2016
Comments
The Consultant hired under SDNRP –II will commence the services by first week of December 2014. At least 10 inspectors were trained
during SDNRP1.
PHINDIRITBL
Number of Mining Regulations Promulgated (Number, Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value 0.00 0.00 0.00 6.00
Date 12-Aug-2014 01-Oct-2014 02-Dec-2014 30-Jun-2016
Comments
First draft of Health & Safety, Technical and Explosive nearly being completed. Work on preparation of the financial regulations just started.
However, there is no progress on Environmental & Social regulations
PHINDIRITBL
NEPA Promulgates sector standards for mining (Text, Custom)
Baseline Actual (Previous) Actual (Current) End Target
Final draft
Value 0 0 0 standard tabled
for adoption
Date 12-Aug-2014 01-Oct-2014 24-Nov-2014 30-Jun-2016
PHINDIRITBL
Annual Report for contract compliance monitoring of Aynak and Hajigak prepared and publicly disseminated (Number,
Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value 0.00 2.00 2.00 5.00
Date 30-Sep-2012 01-Oct-2014 24-Nov-2014 30-Jun-2016
12/13/2014 Page 8 of 10
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Afghanistan: Sustainable Development of Natural Resources Project II (P118925)
Overall Comments
So far 12 quarterly reports and 2 annual report have been produced. There is only two annual report as the project was originally two years.
There would have been a project final report after that, but the project has been extended & so the final report will come at the end.
Data on Financial Performance
Disbursements (by loan)
Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed
P118925 IDA-H6990 Effective XDR 32.80 32.80 0.00 10.07 22.73 31%
Key Dates (by loan)
Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date
P118925 IDA-H6990 Effective 31-May-2011 16-Jul-2011 21-Sep-2011 30-Jun-2016 30-Jun-2016
Cumulative Disbursements
Restructuring History
Level 2 Approved on 25-Nov-2014
Related Project(s)
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There are no related projects.
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