93493
                                          Papua New Guinea
                                          Second Mining Sector Institutional Strengthening
                                          Technical Assistance Project




                                                                                                  Improving benefits to
                                                                                                Papua New Guinea from
                                                                                                 the mining, oil and gas
                                                                                                       industries.




 Support mining communities to             Background
 better monitor the delivery of            Papua New Guinea is a relatively young country, having gained independence in 1975. Since
 community programs and services.
                                           then, minerals — particularly gold and copper — have been the backbone of the economy.
 Empower women and youth living            However, the country has made only modest progress in using its minerals for poverty
 in mining areas.                          reduction and better living conditions for Papua New Guineans.

 Improve the effectiveness of key           About the Project
 institutions in the mining, oil and
                                           The Second Mining Sector Institution Strengthening Technical Assistance Project builds on the
 gas industries.
                                           results of the first technical assistance project, completed in 2006. The first project strengthened
                                           institutional capacity within the Mining Department and the Internal Revenue Commission and
                                           contributed to improving the framework for socially and environmentally sustainable private
                                           mineral investment.

                                           This second project will improve the benefits from the extractive industries — mining, oil ,and gas
                                           — to the national budget and to mining-affected communities. The project will also reduce the
                                           mining sector’s health and safety risks for small-scale miners. After agriculture, small-scale
                                           mining is the largest source of rural incomes, supporting an estimated 500,000 people including
                                           the miners and their families.

                                           The project will improve the effectiveness of key institutions; support communities so they are
                                           better able to monitor the delivery of programs and services; empower disadvantaged groups,
Location: The project will work in         including women and youth, in areas affected by extractive industries; and improve the
areas affected by extractive industries     accountability of the sector through better management and use of mining-related revenues.
across Papua New Guinea.
                                           The primary target groups are institutions involved in the mining sector, communities nearby to
 Approval Date: 26 June 2008               both large-scale and small-scale mining operations, and recipients and managers of mining
                                           benefits streams.
 Closing Date: 31 December 2014
                                           The project consists of five components:
 Total Project Cost: US$18.7 million       1. Strengthening the policy and regulatory frameworks for the mining sector;
                                           2. Strengthening mining sector governance, regulation, and sustainable development outcomes;
 Donors: World Bank (International
                                           3. Improving revenue collection and audits of the sector;
 Development Association) — US$17
 million                                   4. Strengthening the foundations for a conflict-free mining sector in Bougainville; and
 Papua New Guinea Government —             5. Project management.
 US$1.7 million

 Implementing Agency: Mineral            Contact: World Bank Task Team Leader
 Resources Authority
                                                                                                                  www.worldbank.org/pg
                                         Mamadou Barry, Senior Mining Specialist, Mbarry2@worldbank.org