The World Bank Implementation Status & Results Report Bhutan: Supporting Minerals Management Policy Reform (P163172) Bhutan: Supporting Minerals Management Policy Reform (P163172) SOUTH ASIA | Bhutan | Energy & Extractives Global Practice | Recipient Executed Activities | Investment Project Financing | FY 2018 | Seq No: 2 | ARCHIVED on 25-Sep-2019 | ISR36920 | Implementing Agencies: Ministry of Economic Affairs - Department of Geology and Mines, Ministry of Finance Key Dates Key Project Dates Bank Approval Date: 02-May-2018 Effectiveness Date: 05-Jun-2018 Original Closing Date: 12-Dec-2019 Revised Closing Date: 12-Dec-2019 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The objective of the project is to provide support to ongoing mining sector reforms with a focus on the most critical initial steps necessary to implement the recently approved Mining Development Policy (MDP). Has the Project Development Objective been changed since Board Approval of the Project Objective? No Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Implementation Status and Key Decisions Revision of Mines and Minerals Management Regulation 2002 – The Department has completed first draft of the Regulation in line with the Mineral Development Policy and the Mines and Mineral Bill 2019. The Department would continue with the review and consultation with stakeholders in this first half of financial year. Further, it has been made mandatory that Regulation be submitted along with the Bill. Therefore, the Department will submit the draft Regulation to the Parliament for Mines and Mineral Bill. The learning trip to Western Australia helped the team from Department of Mines, Industry Regulation and Safety (DMIRS) to learn on international best practices, and it has been critical on reviewing and improving the mining sector regulations. The amended version has very thin time period for implementation as the revised version will be replaced only upon the enactment of the Bill. The project has utilized the funding to revise the Regulations in line with the Bill (amended regulation is ready). That will provide a longer benefit to the nation. However, the revised version will not be approved until the Bill is enacted which is expected to be passed by summer session of 2020. Therefore, within the project period, the final draft will be completed. Building Capacity of newly established division – The project has helped strengthen the capacity of the newly established Mineral Development Division with required ICT equipment and furniture. Development of web-based mineral information portal – an IT Firm has been hired and is working on design and prototype of the system. The system would go live in November 2019 including training of users. Mines Monitoring Tools - The monitoring tool have been developed and Mines Inspectors have been trained on usage. The tool has been issued for implementation with effect from July 2019. Enhancing capacity of Regional Offices – The Regional Offices have been supplied with desktop computers and printers which will increase the efficiency in service delivery. Further, the offices being primary sources of information for web-based mineral information system, it is very critical that the offices are equipped with adequate computers. 9/25/2019 Page 1 of 4 The World Bank Implementation Status & Results Report Bhutan: Supporting Minerals Management Policy Reform (P163172) Connecting Regional Offices with fiber optics – The offices has been connected with fiber optics using Royal Government of Bhutan budget and no expenditure had been booked from earlier assigned project’s budget. Training of Mines Inspector – Thirteen mine inspectors participated in 5 day training on Environment Management in Bangkok, Thailand . Later, these inspectors conducted training to rest of the staffs working on mining inspection. Overall, there is a good progress made in implementation of activities under the project and it is expected that outcomes would be achieved within the project closing date. As most of the activities are currently work-in progress, the impact would be felt much later at the end of project life and afterwards. Risks Overall Risk Rating Risk Category Rating at Approval Previous Rating Current Rating Overall Moderate Moderate Moderate 5. Results Project Development Objective Indicators IN00698486 ►Mines and Minerals Management Regulations along with frameworks and guidelines in place for supporting implementation of the Mineral Development Policy in strategic areas (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 30-Apr-2018 10-Sep-2018 10-Sep-2018 31-Mar-2020 Overall Comments PDO Right after seeking International Mining Expert’s advice and institutional learning of drafting team, a two-week retreat program in Phuentsholing from March 11-22, 2019 has been completed to revise the Mines and Minerals Regulation 2002. The drafting team were able to introduce substantial change to the Regulation incorporating international best practices recommended by the international consultant as well as new learning from Australia. Further, the drafting team completed the first draft with one-week retreat program being held at Thimphu in June 2019. The revision and improvement would continue in August-December 2019 too. A team of eight lead by Director General of the Department undertook 5-day institutional learning from the Department of Mines, Industry Regulation and Safety, Government of Western Australia from 25th February – 1st March 2019. The visit was arranged upon request to Department of Foreign Affairs and Trade, Government of Australia through Ministry of Foreign Affairs, Royal Government of Bhutan without having to pay any fees for all the workshops and site visits as well. The team was introduced to some of the best international practices being implemented which are of government's interest such as modern geological survey, mineral licenses allocation and mining rehabilitation fund. 9/25/2019 Page 2 of 4 The World Bank Implementation Status & Results Report Bhutan: Supporting Minerals Management Policy Reform (P163172) Intermediate Results Indicators IN00698487 ►Number of workshops carried out in dzongkhags (districts) to sensitize on mining policy and legal frameworks [Target – on a defined number of dzongkhag] (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 8.00 10.00 Date 30-Apr-2018 10-Sep-2018 31-Jul-2019 12-Dec-2019 Comments: IN00698488 ►Number of training sessions or workshops carried out as part of DGM staff development program and number of persons trained (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 7.00 8.00 Date 30-Apr-2018 10-Sep-2018 31-Jul-2019 12-Dec-2019 Comments: IN00698489 ►Monitoring tools, SOPs and reporting system developed for effective compliance monitoring to be used by Mines Inspectors (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No Yes Yes Date 30-Apr-2018 10-Sep-2018 31-Jul-2019 31-Mar-2020 Comments: IN00698490 ►Communication system improved by establishing ICT connectivity to Regional Offices (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 7.00 7.00 Date 30-Apr-2018 10-Sep-2018 31-Jul-2019 31-Mar-2020 Comments: Data on Financial Performance Disbursements (by loan) 9/25/2019 Page 3 of 4 The World Bank Implementation Status & Results Report Bhutan: Supporting Minerals Management Policy Reform (P163172) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P163172 TF-A7016 Effective USD 0.30 0.30 0.00 0.25 0.05 84% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P163172 TF-A7016 Effective 02-May-2018 05-Jun-2018 05-Jun-2018 12-Dec-2019 12-Dec-2019 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 9/25/2019 Page 4 of 4