INTEGRATED SAFEGUARDS DATA SHEET CONCEPT STAGE Report No.: ISDSC408 Public Disclosure Copy Date ISDS Prepared/Updated: 25-Jan-2012 I. BASIC INFORMATION A. Basic Project Data Country: Mozambique Project ID: P129847 Project Name: Mining and Gas Technical Assistance Project (P129847) Task Team Leader: Ekaterina Mikhaylova Estimated Appraisal Date: 26-Jul-2012 Estimated Board Date: 13-Nov-2012 Managing Unit: SEGOM Lending Instrument: Technical Assistance Loan Sector: Public administration- Energy and mining (40%), Oil and gas (30%), Other Mining and Extractive Industries (30%) Theme: Other environment and natural resources management (50%), Rural non-farm income generation (20%), Other accountability/anti-corrupti on (20%), Other Private Sector Development (10%) Financing (In USD Million) Financing Source Amount BORROWER/RECIPIENT 0.00 International Development Association (IDA) 50.00 Total 50.00 Environmental Category: B - Partial Assessment Is this a Repeater project? No B. Project Objectives The proposed project objectives are to (i) improve fiscal and economic benefits of extractive industries sector; (ii) set policy frameworks for participatory economic, environmental and social sustainability of the extractive industries; and (iii) improve transparency and accountability of extractive industries sector through strengthened demand for good governance. C. Project Description Public Disclosure Copy The proposed project will support reforms, initiatives, and capacity building to enhance the efficiency and accountability of institutions involved in the management and planning of the mining and hydrocarbon sectors. The project will also assist in the development of a framework that promotes regional and local development of mining and gas producing areas and strengthens demand for good governance. Implementation period is expected to be about 5 years, with effectiveness by the end of calendar year 2012. The proposed project will be supported by an IDA Credit of $ 50 million through a Technical Assistance Project. The project follows the Value Chain for Extractive Industries methodology and includes three main components and a project management and monitoring overhead: Component A. Building Core Capacities and Functions of Ministry of Mineral Resource and Related Government Agencies to Improve Extractive Industries Sector Management: A1. Institutional Strengthening of Government Institutions, including designing and implementing a capacity building program to strengthen MIREM, ENH, INP core functions related to extractive industries sector supervision and monitoring to ensure regulatory, contractual and fiscal compliance of the operations. The project shall support technical assistance and transaction-level advisory services of MIREM, ENH and INP to plan, evaluate, structure and negotiate natural resource projects and related infrastructure agreements. The project shall also assist with structuring financial needs and enhance ENH's capacity to raise financing for the State participation in oil and gas concessions. Support will also be provided to central and regional offices of MIREM to support artisanal and small scale mining sector with the objective to formalize jobs and create cooperatives, and improve quality, productivity, safety measures of the ASM operations. A2. Environmental and Social Management. The project shall carry out a Strategic Environmental and Social Sector Assessment (SESA) for the mining sector and for the gas sector and update, as needed, environmental and social framework for extractive industries sector, including norms, standards, requirements, and regulation. The project shall support in coordination with other sectors a national policy/regulation on land acquisition/involuntary resettlement, including grievance redress mechanisms that guide the sustainable implementation of mining investments in Mozambique. Specific support will also be provided to improve environmental and social performance of artisanal and small scale mining sub- sector in Mozambique. The project will finance capacity building and equipment to MIREM and Ministry of Environmental Coordination (MICOA) to implement the new frameworks and carry out effective consultations and outreach with stakeholders. A3. Geodata Collection Management. The main objective of this support is to strengthen capacity of the Mozambique Geological Survey and other government agencies in managing, storing and interpreting geodata (for mining and gas exploration and production), as well as to improve geological data quality, depth and availability for public use. The project will finance collection of additional geodata and mapping of selected areas with high prospectivity for strategic minerals, update and coverage expansion of metallogenic maps, support seismic and geo-hazard mapping and monitoring, as well as hydro-geological mapping of selected areas. Component B. Revenue Management and Transparency B1. Extractive Industries sector transparency, including continued support of the ongoing Extractive Industries Transparency Initiative (EITI) for its Public Disclosure Copy full institutionalization. It will include enhancing the capacity of public and CSOs in Mozambique to monitor the extractive industries sector. B2. Extractive Industries Revenue collection, including improving revenue collection from extractive industries by the revenue authority and improving revenue forecasting and planning both on micro and macro levels. The project will provide technical assistance to strengthen skills related to petroleum specific aspects of tax assessment and financial audit, revenue forecasting, tax policy analysis, investment negotiations and economic planning. It will also strengthen procedures and guidelines, for prepare operational technical / production audits of large-scale mines and gas production projects. B3. Revenue Management. In collaboration with other projects and donors the project will support, as needed, the update of fiscal regimes for mining and gas, as well as revenue sharing arrangements between the central and regional/local levels. It will assess various options for macro economic revenue management and means to mitigate resource curse and support implementation of the reforms. The project will also support improving transparency of revenue management through various reporting mechanisms (beyond EITI) at local and regional levels. B4. Demand-side management: capacity building to civil society and community based organizations, and outreach, development and implementation of monitoring tools for extractive industries. The project will also build awareness and capacity to use grievance redress mechanisms that will be developed under the project. Component C. Facilitate Cross-Sectoral Platform and Integrate Mining, Oil and Gas Projects into Local and Regional Development C1. Cross-Sectoral Platform for Minerals and Gas (in collaboration with Spatial Development Project and SDI). The project will work with other projects to contribute towards strengthening the existing cross-sectoral ministerial platform to ensure its full effectiveness in regards to cross- sectoral contribution to mining, gas and related infrastructure contracts. Based on lessons learnt from other countries and within Mozambique, various options of advisory boards or tri-partite dialogue arrangements will reviewed and selected for implementation to improve economic, social and environmental impacts of mining and gas development. C2. Natural Gas Vision and related Policies, Strategies and Legislation, including an integrated cross-sectoral vision and approach to maximizing the monetary, social and environmental value of natural gas in Mozambique by promoting domestic and (regional) export markets. The project will support the establishment of institutions (e.g. gas mid/downstream regulator) or special purpose vehicles (e.g. gas transport company) necessary to implement the government's vision plan, and will support the development/modernization of gas mid/downstream policies (e.g. pricing) and legislation. C3. Economic Linkages of Mines and Gas Production. The project will assess and implement models targeted to integrate regional and ancillary infrastructure and regional development objectives into the mining and gas development agreements and assist with designing and implementation of such programs on the ground. This will include assessment and structuring of potential PPPs or similar arrangements driven by mining and gas development. As a learning/testing tool, the project will provide transaction advice for a few (tbd) top priority projects as per the Public Disclosure Copy plan that will be developed. The project will carry out studies and assessments to pinpoint the potential for local procurement and services to supply and service mines and gas projects, and will develop an agreeable to the industry, the government and the local population targets for implementation to maximize local procurement and local employment opportunities in a sustainable manner. The project will specifically support preparation of bankable business opportunities related to development of the domestic gas sector. To support local employment opportunities, the project shall provide support to Vocational Training Institutes, Technical Colleges and Universities to develop educational programs on a sustainable basis that meets skills and capacity needs of the public and private extractive industries sector over time to maximize local employment and procurement going forward; both central and regional programs are envisaged that will focus on developing staff, curricula and laboratory equipment only at existing educational institutions. C4. Improvement of livelihoods in artisanal and small scale mining areas, including assessing and developing value addition opportunities in gemstone, dimension stone and construction minerals sub-sectors in ASM areas; and supporting business opportunities for women in mining and value-addition activities C5. Pilot Programs: Support 3-4 pilots (pilot selection criteria, desirable pilots size and scope TBD during project preparation) to test the approaches to: (i) community development and participatory budgeting in affecting areas around large-scale operations; (ii) structuring/ transaction advice for an infrastructure PPP for downstream gas sector; (iii)community planning and management in mining areas. Component D. Project Management and M&E. Incremental operating costs and implementation support; develop M&E framework for sector performance (including its direct and indirect benefits and contributions) D. Project location and salient physical characteristics relevant to the safeguard analysis (if known) Non-specific, Mozambique E. Borrowers Institutional Capacity for Safeguard Policies Ministry of Environment (MICOA) has clear policy guidelines that is being well implemented in the country. Moreover, set up with the help of the WB, MICOA is receiving Technical Assistance from the WB on Social and Environmental Safeguards policies, either alone or through their continuous involvement in WB financed operations. MIREM's capacity to monitor social and environmental safeguards is rated as relatively low due to lack of experience. Details will be assessed through the SESA, which will be undertaken as part of Project implementation. Strengthening for social and environmental monitoring of the sector is included under component A2. F. Environmental and Social Safeguards Specialists on the Team Cheikh A. T. Sagna (AFTCS) Lungiswa Thandiwe Gxaba (AFTEN) II. SAFEGUARD POLICIES THAT MIGHT APPLY Public Disclosure Copy Safeguard Policies Triggered? Explanation (Optional) Environmental Assessment OP/BP 4.01 Yes This is a technical assistance project which will support legal and regulatory review and capacity building. No physical investments or activities will be undertaken during project implementation. A Strategic Environmental and Social Assessment (SESA) will be carried out by the Government as part of project implementation to inform design of this technical assistance (TA). The project will also: (i) update the environmental and social frameworks for extractive industries sector, as needed, including norms, standards, requirements and regulations; (ii) develop a subset of regulations and practice handbooks, and set up extension services for the artisanal and small scale mining sub-sector; and (iii) provide capacity building and equipment to MIREM and MICOA and INGC to implement the new frameworks on the ground, and carry out effective and iterative public consultations and participation/outreach with stakeholders. TORs will be developed by the government in consultations with the Bank and the draft documents will be elaborated and publicly disclosed both in-country and at the InfoShop prior to Appraisal. For transaction advice related activities and pilots (none of which are expected to include any works or physical investment) safeguards arrangements will be made when such transactions are identified and scope defined (commensurate to the TA level of effort). Criteria for selection of transactions to be supported and pilots to test project approaches, their anticipated scope and size and arrangements will be defined during project preparation and will be reflected in PAD and legal documents and PAD stage ISDS Natural Habitats OP/BP 4.04 No Forests OP/BP 4.36 No Pest Management OP 4.09 No Physical Cultural Resources OP/BP 4.11 No Indigenous Peoples OP/BP 4.10 No Public Disclosure Copy Involuntary Resettlement OP/BP 4.12 Yes The project will not carry out any land acquisitions or cause resettlements and it does not involve land-use planning. There are no specific geographic locations. The project (under component A2) will develop national policy/ regulation on land acquisition/involuntary resettlement that guide the sustainable implementation of mining and gas investments in Mozambique, as well as design and set up grievance redress mechanism in affected areas. This activity would safeguard the sustainable development of mining and gas operations. Safety of Dams OP/BP 4.37 No Projects on International Waterways OP/BP No 7.50 Projects in Disputed Areas OP/BP 7.60 No III. SAFEGUARD PREPARATION PLAN A. Tentative target date for preparing the PAD Stage ISDS: 20-Apr-2012 B. Time frame for launching and completing the safeguard-related studies that may be needed. The specific studies and their timing1 should be specified in the PAD-stage ISDS: A Strategic Sectoral Environmental and Social Assessment (SESA) will be carried out as part of project implementation. The TORs will be developed during project preparation, reviewed and disclosed both in-country and at the World Bank InfoShop prior to appraisal. The project will also develop and disclose prior to appraisal the Terms of Reference for activities that will be supported by the project under component A2 -- development of the land acquisition and involuntary resettlement policies as well as grievance redress mechanisms. IV. APPROVALS Task Team Leader: Name: Ekaterina Mikhaylova 1 Reminder: The Bank's Disclosure Policy requires that safeguard-related documents be disclosed before appraisal (i) at the InfoShop and (ii) in country, at publicly accessible locations and in a form and language that are accessible to potentially affected persons. Approved By: Regional Safeguards Coordinator: Name: Alexandra C. Bezeredi (RSA) Date: 19-Mar-2012 Sector Manager: Name: Anwar B. Ravat (SM) Date: 27-Jan-2012 Public Disclosure Copy Public Disclosure Copy