The World Bank Report No: ISR11606 Implementation Status & Results Tanzania Sustainable Management of Mineral Resources (P096302) Public Disclosure Copy Operation Name: Sustainable Management of Mineral Resources (P096302) Project Stage: Implementation Seq.No: 8 Status: ARCHIVED Archive Date: 10-Sep-2013 Country: Tanzania Approval FY: 2009 Product Line: IBRD/IDA Region: AFRICA Lending Instrument: Technical Assistance Loan Implementing Agency(ies): Key Dates Board Approval Date 09-Jun-2009 Original Closing Date 30-Jun-2014 Planned Mid Term Review Date 15-Oct-2012 Last Archived ISR Date 26-Feb-2013 Effectiveness Date 22-Sep-2009 Revised Closing Date 30-Jun-2014 Actual Mid Term Review Date 12-Nov-2012 Project Development Objectives Project Development Objective (from Project Appraisal Document) To strengthen the Governments capacity to manage the mineral sector to improve the socioeconomic impacts of large and small-scale mining for Tanzania and Tanzanians and enhance private local and foreign investment. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost A. Improving the Benefits of the Mineral Sector for Tanzania: Artisanal and Small-scale Mining, and 15.90 Local Economic Development, B. Strengthening Governance and Transparency in MIning 8.70 C. Stimulating Mineral Sector Investment 25.00 D. Project Coordination and Management 2.50 Public Disclosure Copy Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status Overview This ISR reports on progress since Novemver 2012. The Bank has carried out three supervision and implementation support missions during the period. The first mission was held during November 12-20, 2013 with a focus on midterm review and handover of TTL responsibilities. The second mission was held during May 11-21 with a focus on rearranging some activities to bunch procurement items and increase the speed of disbursement. The third mission took place during June 23-July 1 and focused on finalizing and delivering key Page 1 of 7 The World Bank Report No: ISR11606 activities which were critical to the project’s development objectives. During the period, the project has made noticeable progress towards achieving its development objectives. Policy changes, improved capacity, steady gold prices and continued investors interest have resulted in significant increases between 2011 and 2012 in license rents (from TSh7 billion up to TSh16.5 billion) and royalties (from TSh 77 billion up to Tsh Public Disclosure Copy 107 billion). Processing of mineral licenses has significantly improved, with the backlog being reduced by 80% and processing of prospecting licenses at an average of 6 months and primary mining licenses at 3 weeks, compared to 9 months for prospecting licenses and primary mining licenses at 2 months in 2012. The number of mine audits and inspections has increased by 350%. Digitization of geological maps is ahead of schedule with 70% of maps now digitized. The airborne geological survey is progressing well with 83% of line kilometers flown for magnetic and radiometric, 83% for gravity and 100% for electromagnetic. The survey has already identified previously unknown geological structures including potential new gold and Tanzanite mineralization. The third EITI reconciliation report, covering company and government revenues from July 1, 2010 to June 30, 2011, was published in June 2013. Thirty (30) companies were covered and the Government reported to have received total revenue of USD 329,640,000. Further highlights of this last period include: Artisanal and Small-Scale Mining (ASM) Small Grants Program: Phase 1 of the Program was signed between the MEM and TIB Ltd., the administrative entity to manage the grants disbursement. Phase 1 pilots a total grant pool of 500,000$ to 10 small-scale operators according to specific eligibility criteria, as laid out in the Small Grants Implementation Manual approved by the World Bank. If successful, administration of Phase 2, to a total of 3.5M$, would be considered under the same TIB Ltd. arrangement. Multi-Stakeholder Partnership Initiative (MSPI) on ASM-LSM Coexistence in Tanzania: the MSPI made significant advances since the last ISR with the signing of the MSPI Framework Agreement between all concerned Steering Committee members (MEM, African Barrick Gold, Geita Gold Mine/AngloGold Ashanti, the World Bank, and the Small-Scale Miners Federation). In addition the pilot plans made considerable headway with presentations made by both companies and comments received by the Steering Committee members. The next scheduled Committee meeting in October 2013, will discuss the final pilot plans and move towards effective implementation by January 2013. The MSPI has achieved a high level of commitment and buy-in from all Steering Committee members. It represents an important achievement for collaborative and innovative approaches towards development in mining environments. The MSPI Framework is available to the public, upon request to any Steering Committee member. Locations Country First Administrative Division Location Planned Actual Tanzania Mara Region Tarime District Tanzania Not Entered United Republic of Tanzania Tanzania Tanga Region Tanga Region Tanzania Kilimanjaro Region Same District Tanzania Kilimanjaro Region Rombo District Public Disclosure Copy Tanzania Rukwa Region Mpanda District Tanzania Not Entered Morogoro Urban Tanzania Mbeya Region Mbozi District Tanzania Mbeya Region Mbeya Region Tanzania Singida Region Manyoni District Tanzania Lindi Region Mandawa Page 2 of 7 The World Bank Report No: ISR11606 Country First Administrative Division Location Planned Actual Tanzania Iringa Region Makete District Public Disclosure Copy Tanzania Kilimanjaro Region Kilimanjaro Region Tanzania Kigoma Region Kasulu District Tanzania Shinyanga Region Kahama District Tanzania Kagera Region Kabanga Tanzania Singida Region Itigi Tanzania Mwanza Region Geita District Tanzania Mbeya Region Chunya District Tanzania Shinyanga Region Bukombe Tanzania Kagera Region Bukoba District Tanzania Kagera Region Biharamulo District Tanzania Arusha Region Arusha Tanzania Kagera Region Kagera Tanzania Mtwara Region Mtwara Region Tanzania Ruvuma Region Mbinga District Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Public Disclosure Copy Percentage increase of household income Percentage Value 0.00 97.00 100.00 levels in selected ASM communities Date 27-Aug-2013 30-Jun-2014 Comments 2009-baseline US$4/day New ASM survey underway in US$8/day pilot areas. Drop in gold price may play a factor but focus is on increase of production and efficiency,through the grant program. Page 3 of 7 The World Bank Report No: ISR11606 Percent of citizens in participating communities Percentage Value 12.00 12.00 60.00 who consider that their views have been taken Date 31-Dec-2010 27-Aug-2013 30-Jun-2014 into account in the local economic development Comments Based on field survey under Will be retested at project strategic planning process (perception survey) Public Disclosure Copy the Benefits Study close. Time to process mineral rights (exploration Months Value 18.00 4.00 2.00 licenses). Date 09-Jun-2009 02-Aug-2013 30-Jun-2014 Comments 15 Months was a rough Processing of prospecting estimate at appraisal and was licenses at an average of 6 underestimated. months and primary mining licenses at 3 weeks compared to 9 months for prospecting licenses and primary mining licenses at 2 months in 2012. Annual publication of mining sector revenue Yes/No Value No Yes Yes Date 30-Jun-2009 27-Aug-2013 Comments Third report published Third report and compliant status Improvement in Tanzania's ranking as a mining Text Value 48/71 for policy ranking & 74/96, a slight worsening of Increase of 2-3 points/palces investment destination as evidenced by 22/71 for mineral potential ranking or more over baseline in one independent investor survey (Fraser Institute). or both indicators. Date 30-Jun-2009 27-Aug-2013 30-Jun-2014 Comments Over the past year no changes in the policy attractiveness ranking and mineral potential. The geological attractiveness ranking is expected to improve further after geological component results. SMMRP has been supporting promotion of Tanzania's Public Disclosure Copy geology an international mining events. Percentage increase in mining revenue Percentage Value 0.00 140.00 5.00 Date 30-Jun-2009 27-Aug-2013 30-Jun-2014 Comments First EITI Report showed EITI report covered thirty (30) Revenues increase of 5% consolidated revenue of companies and the over baseline. $100million. Government with reported total revenue of USD 329,640,000. Increases in license rents (from TSh7 Page 4 of 7 The World Bank Report No: ISR11606 billion up to TSh16.5 billion) and royalties (from TSh 77 billion up to Tsh 107 billion) from 2011 - 2012. Public Disclosure Copy Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Improved performance in selected ASM Text Value 4.7 tons of gold N/A TBD coummunities as evidenced by increased Date 09-Jun-2009 31-May-2012 30-Jun-2014 production (quantity and USD). Comments Baseline. Yearly targets to be Monitoring only starting now developed in tandem with with ASM Small Grants ASM baseline survey (see Program. The Small Grants PDO indicator 1). Program will document these indicators. Percentage of pending mineral rights Percentage Value 0.00 80.00 80.00 applications reduced. Date 01-Mar-2009 02-Aug-2013 30-Jun-2014 Comments Pending/backlog of Processing has significantly 80% reduction expected from applications from Oct 2007- improved with the backlog baseline number March 2009. 10000 being reduced by 80% applications in total. Percentage of country covered by geophysical Percentage Value 3.00 14.00 airborne surveys at 1:100,000 scale. Date 09-Jun-2009 02-Aug-2013 30-Jun-2014 Comments 3% of the country coverd by The airborne geological airborne geophysics survey is progressing well with 83% of line kilometers flown for magnetic and radiometric, 83% for gravity and 100% for electromagnetic. Project monitoring and evaluation. Text Value Project start In progress Successful M&E Public Disclosure Copy Date 09-Jun-2009 27-Aug-2013 30-Jun-2014 Comments Project M&E system, building M&E in place. Regular project reporting will on results framework, to be be used to track project developed in Year 1 results. Revised mineral law and regulations Text Value Revisions ongoing Done Revisions and dissemination disseminated completed. Date 09-Jun-2009 02-Aug-2013 30-Jun-2014 Comments Changes in law and regulations completed and disseminated accordingly. Page 5 of 7 The World Bank Report No: ISR11606 Number of mines inspections (including Text Value 1,000 per year Increased by 350% from Regular and systemized environmental) and remedial actions; number baseline inspections and audits of audits. Date 09-Jun-2009 02-Aug-2013 Public Disclosure Copy Comments Mine audits and inspections process improved across all mining districts. Data on Financial Performance (as of 23-Aug-2013) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P096302 IDA-45840 Effective 09-Jun-2009 22-Jul-2009 22-Sep-2009 30-Jun-2014 30-Jun-2014 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P096302 IDA-45840 Effective XDR 33.50 33.50 0.00 21.02 12.48 63.00 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation The March and June 2013 Supervisory Missions confirmed that the project development objective remains valid. Page 6 of 7 The World Bank Report No: ISR11606 The MSPI Steering Committee agreed to make the Framework Agreement available to the public, upon request. Restructuring History Public Disclosure Copy There has been no restructuring to date. Related Projects There are no related projects. Public Disclosure Copy Page 7 of 7