The World Bank Armenia Mineral Sector Policy (P163060) REPORT NO.: RES39841 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF ARMENIA MINERAL SECTOR POLICY APPROVED ON AUGUST 21, 2017 TO REPUBLIC OF ARMENIA ENERGY & EXTRACTIVES EUROPE AND CENTRAL ASIA Regional Vice President: Cyril E Muller Country Director: Sebastian-A Molineus Global Director: Riccardo Puliti Practice Manager/Manager: Christopher Gilbert Sheldon Task Team Leader(s): Kirsten Lori Hund The World Bank Armenia Mineral Sector Policy (P163060) ABBREVIATIONS AND ACRONYMS The World Bank Armenia Mineral Sector Policy (P163060) Note to Task Teams: The following sections are system generated and can only be edited online in the Portal. BASIC DATA Product Information Project ID Financing Instrument P163060 Investment Project Financing Original EA Category Current EA Category Approval Date Current Closing Date 21-Aug-2017 30-Apr-2020 Organizations Borrower Responsible Agency Republic of Armenia RA Prime Minister Office Financing (in USD Million) FIN_SUMM_PUB_TBL SUMMARY Total Project Cost 0 Total Financing 0 Financing Gap 0 DETAILS -NewFin3 The World Bank Armenia Mineral Sector Policy (P163060) Project Development Objective (PDO) Original PDO To support the development of a Mineral Sector Policy for Armenia that focuses on strengthening of the contribution of the mining sector to sustainable economic growth. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net TF Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed TF-A5519 25-Oct-2017 25-Oct-2017 06-Nov-2017 30-Apr-2020 .45 .08 .37 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank Armenia Mineral Sector Policy () I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. Project status 1. The project is ongoing and two components are currently under implementation. (i) The Mineral Sector Policy grant agreement was signed in 2017. The Grant has so far faced some delays in its implementation, mainly due to political changes in Armenia over the past years. The fact that the development of the policy needs the active engagement and coordination of several different ministries has contributed to this. The overall project was also delayed by several months due to difficulties finding a local consulting firm to conduct the Environmental and Health Assessment of the mining sector. (ii) Currently two studies are under implementation; an Economic Assessment and Environmental and Health Assessment of the mining sector in Armenia. The government already received a draft of the Economic Assessment of the Mining Sector. Unfortunately, the quality of the Report was not considered satisfactory, and the contract of the company was just extended to allow for company time to review the report and incorporate all comments received from stakeholders. By the agreement with the PM’s Office, the final report should be ready by the end of January 2020. The Environmental and Health study was launched in September 2019. The final report is expected by March 2020. (iii) The Government is working on the Terms of Reference for the development of the actual Mineral Sector Policy and consultations. (iv) The government has requested additional financing to support the dissemination of the policy, as well as the development of new legislation based on the policy, once it is adopted. (v) The government of Armenia has decided to change its project implementation structure, per January 2020, moving away from a central project implementation unit within the Ministry of Finance. The project will fall under the responsibility of the Prime Minister’s Office per January 1, 2020. The World Bank Armenia Mineral Sector Policy () II. DESCRIPTION OF PROPOSED CHANGES 1. The responsible agency for this project will be changed from the Ministry of Finance Project Implementation Department (PID) to the Prime Minister’s Office (PM’s Office). III. SUMMARY OF CHANGES Changed Not Changed Implementing Agency ✔ Institutional Arrangements ✔ Project's Development Objectives ✔ Results Framework ✔ Components and Cost ✔ Loan Closing Date(s) ✔ Cancellations Proposed ✔ Additional Financing Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursements Arrangements ✔ Disbursement Estimates ✔ Change in Overall Risk Rating ✔ Safeguard Policies Triggered ✔ The World Bank Armenia Mineral Sector Policy () EA category ✔ Legal Covenants ✔ Financial Management ✔ Procurement ✔ Implementation Schedule ✔ Other Change(s) ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_IA_TABLE IMPLEMENTING AGENCY Implementing Agency Name Type Action PID , Ministry of Finance Implementing Marked for Deletion Agency RA Prime Minister Office Implementing New Agency Note to Task Teams: End of system generated content, document is editable from here.