Implementation Status & Results Mozambique Mozambique Mining and Gas Technical Assistance Project (P129847)

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1 Public Disclosure Authorized Public Disclosure Authorized The World Bank Implementation Status & Results Mozambique Mozambique Mining and Gas Technical Assistance Project (P129847) Operation Name: Mozambique Mining and Gas Technical Assistance Project Project Stage: Implementation Seq.No: 3 Status: ARCHIVED Archive Date: 02-Dec-2014 (P129847) Country: Mozambique Approval FY: 2013 Product Line: IBRD/IDA Region: AFRICA Lending Instrument: Technical Assistance Loan Implementing Agency(ies): Ministry of MIneral Resources Key Dates Board Approval Date 28-Mar-2013 Original Closing Date Planned Mid Term Review Date Last Archived ISR Date 03-May-2014 Effectiveness Date 22-Aug-2013 Revised Closing Date Actual Mid Term Review Date 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? Yes No losure Authorized Public Disclosure Authorized Component(s) Component Name Component Cost Component A: Mining Governance Capacity Building and Reform Component B: Natural Gas Capacity Building and Governance Reform Component C: Cross-cutting Mining/ Natural Gas Capacity Building and Reforms 9.95 Component D: Cross-Sectoral Reforms 0.80 Component E: Project Management and Coordination 4.90 PPA Refinancing 3.00 Contingencies 2.65 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Substantial Substantial Page 1 of 8

2 Implementation Status Overview The mining and gas industry in Mozambique has seen some important developments over recent months. New mining and petroleum sector laws and new mining and petroleum fiscal laws were passed by the Parliament in July and August 2014, respectively. With adoption of the laws, Ministry of Mineral Resources is proceeding with supporting regulations including an update of mining licensing and cadastre procedures (with support of MAGTAP). Negotiations for major LNG projects continue after the passage of the Enabling Law. The mining sector, in particular coal, has seen a negative impact with low prices, compounded by infrastructure challenges. Mozambique remains EITI compliant and is on schedule to produce its 5th reconciliation report by December, The new report will be in line with the new EITI standard; 150 companies are expected to be covered and the EITI Secretariat will be issuing an implementation report by the end of the year reporting on achievement of various milestones including public engagement outreach and follow up to recommendations. MAGTAP implementation continues in accordance with the planned project and with procurement progressing in all major components. Several major activities are under implementation, including transaction advisory support for the LNG project, geophysical surveying, financial and marketing advisory services to ENH, review of a tantalum project and mining and gas communications strategy preparation for the Ministry of Mineral Resources (MIREM). Preparation of a Strategic Environmental and Social Assessment for mining and gas is starting with a delay but is expected to proceed from this point forward as planned. While it is early to report on results, the assessment of the project impact remains positive with strong commitment on behalf of key counterparts and dedication of the MIREM and its project management unit. The project coordinates across existing technical assistance projects for mining and gas governance in Mozambique and benefits from available analytical work supported by other development partners as well as by other World Bank programs. The disbursement rate for the IDA part of the project as of October 2014 is 9% (US$4.1 million). An additional $6.7 million is committed under signed contracts and procurement has started for an additional $9.0 million worth of contracts. The total signed, committed and ongoing procurements amounts to about 40% of the total amount, including the project's DfID co-financing. Locations Country First Administrative Division Location Planned Actual Mozambique Not Entered Província de Zambézia Mozambique Not Entered Tete Mozambique Not Entered Sofala Province Mozambique Not Entered Niassa Province Mozambique Not Entered Nampula Mozambique Not Entered Maputo Province Mozambique Not Entered Manica Province Mozambique Not Entered Inhambane Province Mozambique Not Entered Gaza Province Mozambique Not Entered Cabo Delgado Province Mozambique Not Entered Cidade de Maputo Results Page 2 of 8

3 Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Mining Cadastral database and GIS system Yes/No Value No Yes Yes integrated with the land-use databases & accessible on-line for public level information Mining cadastre became online accessible in The Mining Law was approved Jul DNM is proceeding with update of cadastre regulations. Mines and gas construction projects subject to Number Value annual technical inspections in line with established standards. Mine and gas inspectors positions in place since Jul Inspectors of all Provinces benefited from training in Health and Safetyin Mining Best-Practices 2014 in south Africa. The procurement of equipments and vehicles is done. Mines and gas operations subject to fiscal Number Value controls per year in line with established standards Currently not done. Program to establish these functions not yet prepared. Regular health and safety and environmental Number Value monitoring visits and inspections to mines and gas exploration/production sites in linewith standards for supervision of compliance & baseline at ad hoc basis No regular environmental monitoring of safety audits taking place. Regulations of mining and oil operations are under review by task force. New mining/gas/infrastructure related contracts negotiated, benefitting from the developed frameworks and procedures Number Value Date 01-May-2013 First contract for transaction advice on Mining signed and executed. TORs are under preparation to cover future Page 3 of 8

4 requests and establish coal price benchmarking. Direct project beneficiaries Number Value Date 01-May-2013 will be updated as part of annual report. Beneficiaries are people trained. Female beneficiaries Percentage Sub Type Supplemental Value Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Mining Cadastre procedures updated The Mining Law approved in July DNM is proceeding with regulations and update of the mining cadastre. Mineral Information System upgraded with new geodata for strategic areas Not yet started Number of ASM associations/cooperatives Number Value Date 05-Nov-2012 No update as yet. Component not started Procedures of tendering and evaluation of mineral assets developed No update as yet Number of ASMs who have received targeted Number Value training (of which female %) Not yet started Health and safety and environmental regulations, including standards and monitoring procedures updated Regulations under preparation. Page 4 of 8

5 Local law enforcement and judicial personnel trained on mining law and regulations under the project Number of studies assessing economic and financial feasibility for development of gas infrastructure carried out Staff of gas sector management institutions trained through MAGTAP to manage, regulate and monitor gas sector Tools and mechanisms to attract financing for the State participation are in place Pemba Regional Office equipped and operational to undertake health and safety, and environmental inspections of gas field operations Computerized Environmental Management Information System developed Results of Strategic Environmental and Social Assessment publicly disclosed by GoM in papers and through workshops and public outreach Number Value Date 01-May-2013 No training delivered as yet Number Value First study supported by Project (for Gas Transportation Feasibility Study) under procurement. Number Value staff of ENH will be trained in Dubai in structuring, pricing and negotiating of LNG. Number to be updated during annual review. EMEM business plan preparation in procurement; development of a Strategic Business Plan for ENH- Logistics is in the pipeline of planned activities. Construction is being completed by govt; equipment procurement will proceed next with deliver of vehicles in November, Not yet developed Preparation of the SESA by the National Directorate of Mines will commence soon Page 5 of 8

6 Annual disclosure of reports on extractive industries revenues and revenue allocation at national level Provincial Directorates of Mineral Resources equipped & capable to monitor and inspect mining & exploration operations in their jurisdictions Number of CSO/CBOs trained on transparency monitoring across the extractive sector value chain Strategies and policies for strengthening linkages of mines and gas production with national economy developed Number of bankable business plans developed under the project related to local industry participation in provision of local goods and services to extractive industry Standards & procedures for oil & gas contingency planning & emergency preparations developed Number Value Date 01-May th report to be issued by the end of 2014 (for 2012 accounts). Number Value MAGTAP acquired vehicles for Provincial Directorates and Equipment (computers, GPS, Printers) is under procurement. Is anticipated the DIPREMEs will be equipped by end Number Value Terms of reference are under preparation. Training provided as part of EITI CSO support in Cabo Delgado, Tete and Nampula. Numberto be updated as part of annual review One project submitted by IPEME is under procurement. Number Value One EOI has been disclosed by IPEME. National Congress on Oil Spill Prevention scheduled for November TOR for procedures for oil and gas contingency plan evaluation under preparation. Page 6 of 8

7 Data on Financial Performance (as of 22-Oct-2014) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P IDA Effective 28-Mar Apr Aug-2013 P IDA-Q8120 Effective 11-Apr May May Apr Apr-2013 P TF Effective 27-Jan Jan Jan Nov Nov-2018 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P IDA Effective USD P IDA-Q8120 Effective USD P TF Effective USD Disbursement Graph Key Decisions Regarding Implementation Since effectiveness, the project is on track to achieve its development objective and is rated as Satisfactory. There are no specific issues to be raised at this stage. Restructuring History There has been no restructuring to date. Page 7 of 8

8 Related Projects There are no related projects. Page 8 of 8