The World Bank Implementation Status & Results Report Nigeria: Mineral Sector Support for Economic Diversification Project (MinDiver) (P159761) Nigeria: Mineral Sector Support for Economic Diversification Project (MinDiver) (P159761) AFRICA | Nigeria | Energy & Extractives Global Practice | IBRD/IDA | Investment Project Financing | FY 2017 | Seq No: 3 | ARCHIVED on 25-Apr-2019 | ISR36562 | Implementing Agencies: Ministry of Mines and Steel Development, Federal Ministry of Finance Key Dates Key Project Dates Bank Approval Date: 14-Apr-2017 Effectiveness Date: 02-Nov-2017 Planned Mid Term Review Date: 31-Jan-2020 Actual Mid-Term Review Date: -- Original Closing Date: 30-Jun-2022 Revised Closing Date: 30-Jun-2022 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) To enhance the mining sector's contribution to the economy by strengthening key government institutions, improving information infrastructure and knowledge, and fostering domestic investment in the sector. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Establishing a Strong Foundation for Mining Sector Development:(Cost $68800000.00 M) Facilitating Downstream Sector Development & Enhancing Competitiveness:(Cost $67600000.00 M) Project Management and Coordination:(Cost $9600000.00 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 Substantial Substantial Implementation Status and Key Decisions This ISR presents the implementation status of the “MinDiver” project as of April 20019 and is based primarily on supervision of the project remotely, including monthly video conferences and a mission in late September 2018. . Overall the pace of project implementation is proceeding at a moderate pace. Over the past year the PIU has been focused on channeling a large number of contracts through the procurement pipeline, which is expected to yield positive results in the coming months as consultancies begin to implement activities. Over the last several months the project has achieved the following results: - Establishment of PIU and Project Management: The PIU has been fully established and is functioning effectively. This includes the newly procured professional project management firm to support the PIU in project planning, contracts management, M&E, etc. 4/25/2019 Page 1 of 8 The World Bank Implementation Status & Results Report Nigeria: Mineral Sector Support for Economic Diversification Project (MinDiver) (P159761) - Industrial Minerals: Demand/Gap Analysis for Industrial Minerals for Local Industry: The project undertook a detailed review of main industrial mineral suppliers and consumers and estimated potential demand in the country for industrial minerals based on the mineral type. In addition an action plan/roadmap with recommendations was development and a consultant was procured to support its implementation. - Decision Support System (DSS): The DSS is one of the cornerstone activities under the project as the successful implementation several key project activities will depend on its full operationalization. There have been some delays in this regard, and in Mid-March 2019 a decision was taken to close the contract for the original firm procured to support the ministry on its development and operationalization, and procure another firm to support the government. An assessment of gaps in the operationalization of the current DSS system has been undertaken, and over the next several month the government will aim to address those gaps. -Cadastre- Work to strengthen the minerals cadaster on-going, and it expected to move to the 6 geopolitical zones in the next several months. This activities is expected to improve the management and transparency of the sector. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Substantial Substantial Macroeconomic Moderate Moderate Moderate Sector Strategies and Policies Low Low Low Technical Design of Project or Program Substantial Substantial Substantial Institutional Capacity for Implementation and Sustainability Moderate Moderate Moderate Fiduciary Moderate Moderate Moderate Environment and Social Substantial Substantial Substantial Stakeholders Substantial Substantial Substantial Other -- -- -- Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes Mining information management systems (including geological database, DSS, EIMS) developed. Only DSS IN00688274 ►Mining information management systems (including geological database, DSS, EIMS) developed. Only DSS established but not rolled-out. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Only DSS established but not rolled-out. All systems in place None of the systems System currently and in use by staff in Value have been fully -- under review. MIST relevant agencies and developed not yet in place. institutions 4/25/2019 Page 2 of 8 The World Bank Implementation Status & Results Report Nigeria: Mineral Sector Support for Economic Diversification Project (MinDiver) (P159761) Date 01-May-2017 12-Jan-2018 15-Apr-2019 01-May-2022 Number of proof of concept transactions undertaken through the project IN00688275 ►Number of proof of concept transactions undertaken through the project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 7.00 Date 01-May-2017 20-Sep-2018 15-Apr-2019 01-May-2022 Activity at infancy stage, site visits have been done to ascertain the assets of firms. The selection of proof of concept sites (assets) is ongoing. During the initial stages the MMSD/PIU team has visited numerous sites throughout the country in order to verify the assets of the companies that have applied for Proof of Concept support, and also to ascertain the level of support needed. A new phase of selection. The project undertook call for proposals for this activity and collected about 250 expressions of Comments: interests. Of these about 30 sites were visited. It was agreed during the mission that the ministry will need to communicate shortly to the respondents on the status of their proposals so as to manage expectations. In addition to this, the project will need to take steps to recruit a new geological analyst to support them in the next stages of the site selection process. Geological knowledge enhanced through an integrated geological database made publically accessable IN00688376 ►Geological knowledge enhanced through an integrated geological database made publically accessable (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes No Yes Date 01-May-2017 20-Sep-2018 15-Apr-2019 01-May-2022 The project selected British Geological Survey (BGS) under contract to review and compile electronic Comments: geodata archive for NGSA. The BGS will also develop Geodata Policy and data protocols to support transparent and most beneficial to Nigeria use of the data. Increased economic linkages from industrial minerals to the services and manfactoring sectors IN00688377 ►Increased economic linkages from industrial minerals to the services and manfactoring sectors (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 10.00 Date 01-May-2017 20-Sep-2018 15-Apr-2019 01-May-2022 The project financed a consultancy to deepen the understanding of the industrial minerals sector of Nigeria and to design a roadmap to improve industrial minerals contribution to Nigeria’s economy. An Industrial Minerals Roadmap launch, hosted by MMSD with participation of sector stakeholders, took Comments: place during the mission. The strategy for expediting the development of industrial minerals involves supporting local industrial mineral producers with the necessary mining and mineral processing equipment identified to be hindering the production of specified mineral commodities. 4/25/2019 Page 3 of 8 The World Bank Implementation Status & Results Report Nigeria: Mineral Sector Support for Economic Diversification Project (MinDiver) (P159761) ASM operators inventoried, formalized, and supported through technical assistance IN00688378 ►ASM operators inventoried, formalized, and supported through technical assistance (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 40.00 Date 01-May-2017 20-Sep-2018 15-Apr-2019 01-May-2022 Activity pending implementation, procurement is progressing. Comments: Mining exportation and production projects subject to formal environmental and safety inspections IN00688379 ►Mining exportation and production projects subject to formal environmental and safety inspections following good international practices set under the project (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 75.00 Date 01-May-2017 20-Sep-2018 15-Apr-2019 01-May-2022  SESA is delayed  Review of laws and statutes ongoing Comments:  Safeguards activity ongoing Production data collected from Artisinal, Small and Medium size mining operations IN00688380 ►Production data collected from Artisinal, Small and Medium size mining operations (as a % of total number of operations inventoried under the project) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 50.00 Date 20-Oct-2016 20-Sep-2018 15-Apr-2019 30-Jun-2022 Procurement of consultant is in progress. Comments: Intermediate Results Indicators by Components Establishing a Strong Foundation for Mining Sector Development IN00688381 ►Functional reviews undertaken and action plan implemented (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target • Assessment of some agencies in Functional review No functional review has Value -- preliminary stage. undertaken and action taken place • Agencies plan fully implemented. that are to be 4/25/2019 Page 4 of 8 The World Bank Implementation Status & Results Report Nigeria: Mineral Sector Support for Economic Diversification Project (MinDiver) (P159761) assessed at the moment are NGSA and SMDF Date 01-May-2017 20-Sep-2018 15-Apr-2019 01-May-2022 Procurement ongoing Comments: IN00688384 ►Esablishment of a system for the transparent assessment and collection of revenues from the mining sector (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Revenue system for assessment and No such system has No such system has Value -- collection fully been established been established established and operational Date 01-May-2017 20-Sep-2018 20-Sep-2018 01-May-2022 IN00688386 ►Establishment fiscal accountability and transparency framework for the Solid Mineral Development Fund (SMDF) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Independent audit of No fiscal accountability No fiscal accountability the SMDF carried out Value and transparency -- and transparency on an annual basis framework in place. framework in place. and disseminated publicly. Date 01-May-2017 20-Sep-2018 15-Apr-2019 01-May-2022 Activity yet to commence. Under procurement Comments: IN00688388 ►Number of exploration sites monitored and inspected by the Mines Inspectorate Department in collaboration with other relevant agencies (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 40.00 Date 01-May-2017 20-Sep-2018 20-Sep-2018 01-May-2022 IN00688390 ►Number of staff of MMSD and agencies trained through MINDIVER to manage, regulate, and monitor the mining sector, disaggregated by gender and function (policy, regulation, planning, revenue management (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 200.00 Date 01-May-2017 20-Sep-2018 20-Sep-2018 01-May-2022 Project at the stage of hiring consultant to perform skills assessment of MMSD and its Agencies. Comments: IN00688392 ►Partnership programs for skill development and vocational training under implementation (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value NIMG has been -- NIMG has been Action plan developed, established but has not established but has partnerships established, and 4/25/2019 Page 5 of 8 The World Bank Implementation Status & Results Report Nigeria: Mineral Sector Support for Economic Diversification Project (MinDiver) (P159761) been effective in fulfilling not been effective in training programs its mandate fulfilling its mandate implemented Date 01-May-2017 20-Sep-2018 20-Sep-2018 01-May-2022 This activity has yet to commence Comments: IN00688393 ►Decision Support System upgraded with new geo-data on strategic areas (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 01-May-2017 20-Sep-2018 20-Sep-2018 01-May-2022 This activity is on-going. Some data has been uploaded. Comments: IN00688394 ►Citizen participation and accountability mechanism established for CSO/CBO/Non-state actor participation in the mineral value chain (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 01-May-2017 20-Sep-2018 20-Sep-2018 01-May-2022 Facilitating Downstream Sector Development & Enhancing Competitiveness IN00688382 ►Number of mineral resources identified from new geoscience knowledge and information collected (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 10.00 Date 01-May-2017 20-Sep-2018 15-Apr-2019 01-May-2022 this activity is still on-going. Comments: IN00688385 ►Number of potential mineral prospectivity areas identified for targeting (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 18.00 Date 01-May-2017 20-Sep-2018 15-Apr-2019 01-May-2022 The selection of proof of concept sites (assets) is ongoing. During the initial stages the MMSD/PIU team has visited numerous sites throughout the country in order to verify the assets of the companies that have Comments: applied for Proof of Concept support, and also to ascertain the level of support needed. A new phase of selection. The project undertook call for proposals for this activity and collected about 250 expressions of interests. Of these about 30 sites were visited. . IN00688387 ►Number of artisanal miner cooperatives accessing finance and equipment from microfinance institutions and leasing companies (percentage that are female) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target 4/25/2019 Page 6 of 8 The World Bank Implementation Status & Results Report Nigeria: Mineral Sector Support for Economic Diversification Project (MinDiver) (P159761) Value 0.00 0.00 0.00 100.00 Date 01-May-2017 20-Sep-2018 15-Apr-2019 01-May-2022 IN00688389 ►Guidance on local supply chain development for industrial minerals developed (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 01-May-2017 20-Sep-2018 15-Apr-2019 01-May-2022 The project financed a consultancy to deepen the understanding of the industrial minerals sector of Nigeria and to design a roadmap to improve industrial minerals contribution to Nigeria’s economy. An Industrial Minerals Roadmap launch, hosted by MMSD with participation of sector stakeholders, took Comments: place during the mission. The strategy for expediting the development of industrial minerals involves supporting local industrial mineral producers with the necessary mining and mineral processing equipment identified to be hindering the production of specified mineral commodities. IN00688391 ►Mechanism for attracting long term capital into the SMDF SPV in place (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 01-May-2017 20-Sep-2018 20-Sep-2018 01-May-2022 Project Management and Coordination IN00688383 ►Number of ineligible expenditures (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 0.00 Date 02-Nov-2017 18-Sep-2018 15-Apr-2019 30-Jun-2022 Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P159761 IDA-59900 Effective USD 150.00 150.00 0.00 41.97 112.07 27% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date 4/25/2019 Page 7 of 8 The World Bank Implementation Status & Results Report Nigeria: Mineral Sector Support for Economic Diversification Project (MinDiver) (P159761) P159761 IDA-59900 Effective 14-Apr-2017 08-May-2017 02-Nov-2017 30-Jun-2022 30-Jun-2022 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 4/25/2019 Page 8 of 8