Public Disclosure Copy The World Bank Implementation Status & Results Report MW: Mining Governance and Growth Support Project (P120825) MW: Mining Governance and Growth Support Project (P120825) AFRICA | Malawi | Energy & Extractives Global Practice | IBRD/IDA | Specific Investment Loan | FY 2011 | Seq No: 8 | ARCHIVED on 09-Jun-2016 | ISR23413 | Implementing Agencies: Key Dates Key Project Dates Bank Approval Date:31-Mar-2011 Effectiveness Date:23-Aug-2012 Planned Mid Term Review Date:01-Dec-2014 Actual Mid-Term Review Date:05-Dec-2014 Original Closing Date:30-Sep-2016 Revised Closing Date:30-Sep-2016 Project Development Objectives Project Development Objective (from Project Appraisal Document) To improve the efficiency, transparency and sustainability of mining sector management Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Managing Mineral Rights and Operations:(Cost $6.50 M) Generating and Managing Mineral Revenue:(Cost $1.55 M) Promoting the Mining Sector:(Cost $17.00 M) Project Management:(Cost $2.72 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Moderately Satisfactory  Moderately Satisfactory Overall Implementation Progress (IP)  Moderately Satisfactory  Moderately Satisfactory Overall Risk Rating  Moderate  Moderate 6/9/2016 Page 1 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report MW: Mining Governance and Growth Support Project (P120825) Implementation Status and Key Decisions The MGGSP has been effective since August 23, 2012, with a current disbursement rate of 71%. Overall project implementation is rated as Moderately Satisfactory. Implementation Progress: The national-wide airborne geophysical survey has been completed in full, the raw data has been through a quality review and has been processed, and the data was publicly launched in August, 2015 and can be accessed at the geological survey’s offices in Zomba. The development of a modern GIS-based geo-data management system to manage and facilitate access to the data produced by the airborne survey is underway. A Strategic Environmenal and Social Action Plan was completed in 2015 and its Action Plan was adopted by Government in May, 2016. Delivery of activities related to the Mines and Minerals Act and the Mining Cadastre have been of critical importance. The 1981 Mines and Minerals Act has been reviewed by an international consultant, who assisted the Ministry of Mines to finalize the Bill, associated regulations and conduct consultation workshops. The activity suffered a number of delays and is now expected to be tabled in the May-June 2016 seating of Parliament together with amendments to the mining fiscal regime. A modern computer-based cadastral system will be established under the MGGSP, with efficient and transparent management of mineral exploration and mining rights. Procurement for the cadastre is at an advanced stage. The new cadastral system will be housed in refurbished offices at the Department of Mines. A review of the Fiscal Regime has been completed. Amendments to the Fiscal Law have been drafted and submitted for Ministry of Justice review together with the draft Mines and Minerals Act. In addition to detail on the fiscal instruments, the amendments to the Taxation Act and the draft Mines and Minerals Act include provisions increased transparency in the mining sector. Government currently anticipate that these will be passed into law as a “package” by parliament in May-June, 2016. Several activities have taken place to encourage investment in artisanal and small-scale mining (ASM) such as training, attendance at International ASM Indaba, skills development, and formation of cooperatives. Courses have been introduced at The Malawi Polytechnic and Chancellor College in mining related fields such Mining Engineering, Geology and disciplines. A curriculum review is also underway at Chancellor College to ensure that the course offered by these institutions meet the potential market demand for the skill in the mining sector. The project closing date was extended by 18 months until March 31, 2018, to allow for full implementation of all planned activities. 6/9/2016 Page 2 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report MW: Mining Governance and Growth Support Project (P120825) 6/9/2016 Page 3 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report MW: Mining Governance and Growth Support Project (P120825) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  Substantial  Substantial Macroeconomic  --  Moderate  Moderate Sector Strategies and Policies  --  Moderate  Moderate Technical Design of Project or Program  --  Moderate  Moderate Institutional Capacity for Implementation and Sustainability  --  Substantial  Substantial Fiduciary  --  Moderate  Moderate Environment and Social  --  Substantial  Substantial Stakeholders  --  Moderate  Moderate Other  --  --  -- Overall  --  Moderate  Moderate Results Project Development Objective Indicators PHINDPDOTBL  Efficiency - Days taken to issue mineral rights (Number, Custom) 6/9/2016 Baseline Actual (Previous) Actual (Current) End Target Page 4 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report MW: Mining Governance and Growth Support Project (P120825) Value 90.00 94.00 94.00 45.00 Date 23-Aug-2012 14-Sep-2015 02-Jun-2016 23-Aug-2017 PHINDPDOTBL  Transparency - Annual public reporting of mineral sector tax revenues (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value no Yes Yes yes Date -- 14-Sep-2015 02-Jun-2016 -- PHINDPDOTBL  Sustainability - Percentage of mining operations subjected to environmental certification (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 50.00 100.00 100.00 90.00 Date -- 14-Sep-2015 02-Jun-2016 -- Overall Comments Intermediate Results Indicators PHINDIRITBL  Modern mining legislation in place (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The Draft Mines and Minerals bill has been finalized. The draft bill is being reviewed by Mining Policy in place but The Mining Law Ministry of Justice and is new mining act and New mining regulations have been expected to be tabled in regulations, amended regulations drafted and are under Parliament in June Value mineral taxation legislation submitted to review (expected to be 2016. and model mining relevant completed by the end The Mining Law agreement still under authorities of 2015). regulations have been development drafted and are under review (and expected to be completed after the bill is approved). 6/9/2016 Page 5 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report MW: Mining Governance and Growth Support Project (P120825) Date -- 14-Sep-2015 02-Jun-2016 -- PHINDIRITBL  Modern computerized mining cadastre in use (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Selection for the Consultant to develop Technical the Mining Cadastre is Minerals licensing Specifications for the underway, as is Computerized Value conducted using slow and Mining Cadastre are at procurement for building cadastre in use paper based system the Evaluation Report refurbishments at the stage of procurement. Cadastre Office. Date -- 14-Sep-2015 02-Jun-2016 -- PHINDIRITBL  Multi-stakeholder forum on mining sector established with civil society participation (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Multi-stakeholder consultations were delivered as part of the Regular SESA. Multi-stakeholder meetings of Ad hoc and reactive As a Candidate EITI consultations were multi- Value arrangements for country, the Multi delivered as part of the stakeholder stakeholder dialogue Stakeholder Group SESA. forum taking (MSG) has been formed place and is meeting on a quarterly basis. Date -- 14-Sep-2015 02-Jun-2016 -- 6/9/2016 Page 6 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report MW: Mining Governance and Growth Support Project (P120825) PHINDIRITBL  Health, safety, environmental and social management policies and monitoring systems completed (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The Policy Framework The Policy Framework for Health and Safety for Safety, Policy Gaps exist in policy will be delivered under environmental and framework framework and monitoring Value the Action Plan from social management has complete and systems are in need of the SESA (to be been delivered under monitoring significant strengthening completed by October, the Action Plan from the system in place 2015) SESA. Date -- 14-Sep-2015 02-Jun-2016 -- PHINDIRITBL  Standardized fiscal regime (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Standardized royalty Standardized royalty Standardized Royalty and tax terms and tax laws and and tax laws and royalty and tax Value open to negotiation and regulations drafted. regulations drafted. laws and selective concession Target Achieved. Target Achieved. regulations drafted Date -- 14-Sep-2015 02-Jun-2016 -- PHINDIRITBL  Mineral tax administration and revenue management developed (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The mineral tax administration and revenue management The mineral tax manual & model have administration and been developed and are revenue management in use. Policies to manual & model have No specialized The development of address been developed and arrangements for minerals related policies revenue Value are in use. tax administration and (Standardized royalty volatility and The development of revenue management and tax laws and savings related policies is at the regulations) are drafted. introduced TOR stage of They are expected to be procurement. debated in Parliament during the June 2016 sitting. Date -- 14-Sep-2015 02-Jun-2016 -- 6/9/2016 Page 7 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report MW: Mining Governance and Growth Support Project (P120825) PHINDIRITBL  Geo-data management center providing online access (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Up-to-date geo-data is Up-to-date geo-data is in in place. The database place. and can be will be located in the accessed manually at GSD library, which will Geo-data GSD. be refurbished under management A Firm is delivering the Only old and insufficient the project. centre in Value design and installation of geo-data available The evaluation of operation and the on-line geological technical proposals for accessible on- database that will be the database will be line housed at the submitted to the Bank refurbished Geodata by September, 2015. Center. Date -- 14-Sep-2015 02-Jun-2016 -- PHINDIRITBL  Number of students newly enrolled in mining-related tertiary education programs in Malawi (with breakdown by gender) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value -- 174.00 262.00 -- Date -- 14-Sep-2015 02-Jun-2016 -- Comments 68 female, 192 male beneficiaries PHINDIRITBL  Number of public service personnel trained in sector-relevant fields (with breakdown by gender) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value -- 119.00 199.00 -- Date -- 14-Sep-2015 02-Jun-2016 -- Comments 37 female, 162 male beneficiaries Overall Comments 6/9/2016 Page 8 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report MW: Mining Governance and Growth Support Project (P120825) Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P120825 IDA-49010 Effective USD 25.00 25.00 0.00 16.98 6.40 68% P120825 TF-12935 Closed USD 3.19 3.19 0.00 2.88 0.71 90% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P120825 IDA-49010 Effective 31-Mar-2011 02-Nov-2011 23-Aug-2012 30-Sep-2016 30-Sep-2016 P120825 TF-12935 Closed 13-Aug-2012 22-Aug-2012 23-Aug-2012 17-Nov-2015 17-Nov-2015 Cumulative Disbursements Restructuring History Level Approved on 04-May-2012 ,Level 2 Approved on 11-May-2016 6/9/2016 Page 9 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report MW: Mining Governance and Growth Support Project (P120825) Related Project(s) There are no related projects. 6/9/2016 Page 10 of 10 Public Disclosure Copy