The World Bank MW: Mining Governance and Growth Support Project (P120825) REPORT NO.: RES31887 DOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF MW: MINING GOVERNANCE AND GROWTH SUPPORT PROJECT APPROVED ON MARCH 31, 2011 TO REPUBLIC OF MALAWI ENERGY & EXTRACTIVES AFRICA Regional Vice President: Makhtar Diop Country Director: Bella Bird Senior Global Practice Director: Riccardo Puliti Practice Manager/Manager: Christopher Gilbert Sheldon Task Team Leader: Javier Aguilar The World Bank MW: Mining Governance and Growth Support Project (P120825) I. BASIC DATA Product Information Project ID Financing Instrument P120825 Investment Project Financing Original EA Category Current EA Category Approval Date Current Closing Date 31-Mar-2011 31-Mar-2018 Organizations Borrower Responsible Agency Republic of Malawi Ministry Of Natural Resources Energy and Mining Project Development Objective (PDO) Original PDO To improve the efficiency, transparency and sustainability of mining sector management Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-49010 31-Mar-2011 02-Nov-2011 23-Aug-2012 31-Mar-2018 25.00 22.06 1.30 TF-12935 13-Aug-2012 22-Aug-2012 23-Aug-2012 15-Dec-2017 4.72 4.68 0 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No II. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES The World Bank MW: Mining Governance and Growth Support Project (P120825) PROJECT STATUS The MGGSP was approved on March 31, 2011 with co-financing by an IDA credit of SDR16,100,000 (USD25 million equivalent) (Credit No. 4901-MW) and an EU grant (TF-12935) of EUR4.1 million (US$5.66 million, equivalent at the time of Board approval). The project has been effective since August 23, 2012 with a current disbursement rate of 94 percent. The Project completion date was extended from September 30, 2016 to March 31, 2018. The no cost extension was to allow for completion of key activities of the project to meet the PDO. The EU grant was closed on December 15, 2017 after being extended from the revised closing date of October 15, 2017. So far, the overall project implementation and progress towards achieving the development objective are rated as Satisfactory. A modern computer-based cadastral system with efficient and transparent management of mineral exploration and mining rights was installed and Malawi’s mineral rights are visible online on http://portals.flexicadastre.com/malawi/. The 1981 Mines and Minerals Act was reviewed and the Bill and associated regulations were finalized. The high resolution countrywide airborne geophysical data that was collected with support from the Project was interpreted. The geodata center is fully functional but remains to be accessible online. A promotional strategy for various products generated by the project is being implemented. The safeguards rating is Satisfactory. The project is on its way to achieving the PDO and project's results are on target and on track. Nevertheless, the major work for the mining cadaster is still in progress which is construed to be critical to the outcome of the project. PROJECT RATINGS The project has made meaningful progress towards project's objectives. Because delivery of a number of activities under Component B (Generating and Managing Mineral Revenue) and Component A (Managing Mineral Rights and Operations) are on schedule and some activities under Component C (Promoting the Mining Sector) which were lagging behind have been accelerated. Progress towards achievement of PDO has been upgraded to Satisfactory during the last ISR due to improvements on activities performed increasing the likelihood for reaching the targets set for the project. Delivery of a number of activities under all components is on schedule, a few are being accelerated under close project’s management supervision to be brought back on schedule. As a consequence, project management has been also upgraded during the last ISR to Satisfactory. PROPOSED CHANGES The project became effective on 31st August 2011. IDA has been extended once for 18 months from the original closing date of September 30, 2016 to March 31, 2018. The decision to extend was arrived at during mid-term review to allow the project to disburse fully. This four-month proposed extension from March 31, 2018 to July 31, 2018, has been necessitated to allow the Project to complete renovations of the Mining Cadaster office. This office will house the Mining department and the cadaster which are currently in rented premises. The delay has come about because the contractor has been unable to complete according to planned schedule for various reasons. Should the extension be granted, the project proposes to procure materials on behalf of the contractor to help expedite the works as most of the delays have been due to erratic material supplies to the site. The Government requested a three-month extension mainly to allow adequate time to complete the construction of the renovations of the Cadastre Office. After the WB's team reviewed the outsta nding activities it was noted that the Civil Contract includes conduits for the Local Area Network (LAN) but the network itself is not included which is a vital part of the Cadastre connectivity. The procurement of this activity will start now and can only be completed after The World Bank MW: Mining Governance and Growth Support Project (P120825) construction works are done. These are estimated to take about six weeks. The extra Month will allow smooth completion and commissioning of the online Cadastre. III. DETAILED CHANGES LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications 31-Aug-2017, 30-Sep- IDA-49010 Effective 30-Sep-2016 31-Jul-2018 30-Nov-2018 2016, 31-Mar-2018 15-Oct-2017, 15-Dec- TF-12935 Closed 17-Nov-2015 2017, 26-Mar-2018