EXTRACTIVES GLOBAL PROGRAMMATIC SUPPORT [EGPS] ANNUAL REPORT 2021 TABLE OF CONTENTS ACKNOWLEDGEMENTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 EGPS TRUST FUND BASIC DATA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 ABBREVIATIONS AND ACRONYMS.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 EGPS PORTFOLIO.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 EGPS RESPONSE TO THE COVID-19 CRISIS.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 COMPONENT 1: REVENUE TRANSPARENCY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 COMPONENT 2: REGULATION AND INSTITUTIONAL STRENGTHENING. . . . . . . . . . . . . . . . . . 38 Highlight Story: Helping the Peruvian Mining Sector to Promote Inclusive and Equitable Development. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 COMPONENT 3: LOCAL VALUE AND DIVERSIFICATION .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 Highlight Story: Extractives-Led Local Economic Diversification Knowledge Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 COMPONENT 4: LOCAL COMMUNITIES AND ECOSYSTEMS .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 CLIMATE-SMART MINING: MINERALS FOR CLIMATE ACTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 Highlight Story: The New Kids on the Block: Redefining ‘Critical’ Minerals Essential for a Clean Energy Future. . . . . . . . . . . . . . . . . . . . . . . 70 APPENDIX A: COMPLETED, NEW, AND ONGOING ACTIVITIES, FY2021.. . . . . . . . . . . . . . . . . . 74 APPENDIX B: FINANCIAL REPORT, FY2021.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 Table B.1: EGPS-1 Grant Implementation Status. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177 Table B.2: EGPS-2 Grant Implementation Status. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197 Table B.3: Recipient-Executed Grant Process Tracking. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 205 Table B.4: Bank-Executed Grant Process Tracking. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213 Cover photo: 2021 Sebastian Janicki/Shutterstock 2 EGPS ANNUAL REPORT 2021 photo credit: 2020 Sony Herdiana/Shutterstock 3 ACKNOWLEDGEMENTS EGPS TRUST FUND BASIC DATA The EGPS Annual Implementation Progress Report is published by the EGPS Program Trust Fund Name Extractives Global Programmatic Secretariat on behalf of the World Bank as the administrator of the trust fund. This report Support (EGPS) was written by Charlotte Ampaire (External Affairs Officer) with preparation support from Zahra Hassanali (Results Measurement Specialist) and the EGPS core team: David Trust Fund Numbers: W. Wachira (Public Sector Specialist), Dolly Aziz (Operations Officer), and Sven Renner EGPS-1 TF072347 / TF072699 / TF072710 (Program Manager). EGPS-2 TF073398 Special thanks are extended to Jane Sunderland for copyediting and to the World Bank Donors/Partnership Council Members: design team for design work. EGPS-1 Australia, Belgium, Canada, This report is built on input provided by the World Bank task teams working on projects/ European Commission, Finland, grants financed through EGPS and benefits from the engagement and support provided by Germany, Netherlands, Norway, government counterparts and the EITI Secretariat. Switzerland, and United Kingdom The World Bank is grateful to its donors for financing this important engagement. EGPS-2 Belgium, France, Germany, Netherlands, Norway, Switzerland, and United Kingdom Trust Fund Managing Unit / Infra Energy Extractive Industry Global Practice Energy and Extractives Global Practice (GEEXI) Trust Fund Manager Sven Renner Acting Practice Manager Rachel Perks and Michael Stanley Trust Fund End Disbursement Dates: EGPS-1 October 31, 2020 / October 31, 2021 / October 31, 2022 EGPS-2 April 30, 2026 Progress Reporting Frequency Annual 4 EGPS ANNUAL REPORT 2021 EGPS Trust Fund Basic Data 5 ABBREVIATIONS AND ACRONYMS AfDB African Development Bank ASM artisanal and small-scale mining ATF associated trust funds BE bank-executed (projects/grants implemented by the World Bank) CCUS carbon capture storage and utilization CIMA Mining Information Center of Argentina CoP community of practice CSM Climate-Smart Mining CSO civil society organization EGPS Extractives Global Programmatic Support EI extractive industries EITI Extractive Industries Transparency Initiative EITI-SR Extractive Industries Transparency Initiative in Suriname ELLED extractives-led local economic diversification FDI foreign direct investment FY fiscal year GDP gross domestic product GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit (German Corporation DONORS for International Cooperation) IDB Inter-American Development Bank IFC International Finance Corporation IMF International Monetary Fund IPF Investment Project Financing Australia Belgium Canada European Finland France KEITI Kyrgyzstan Extractive Industries Transparency Initiative Commission LMS learning management system MCS mineral cadastre system MINEM Ministry of Energy and Mines (Peru) MOGE Myanmar Oil & Gas Enterprise Germany Netherlands Norway Switzerland United Kingdom MSD Mining Sector Diagnostic (tool) 6 EGPS ANNUAL REPORT 2021 photo credit: 2021 Adwo/Shutterstock abbreviations and acronyms 7 INTRODUCTION MSF multi-stakeholder forum MSG multi-stakeholder group NEITI Nigeria Extractive Industries Transparency Initiative EGPS Overview on key results and impacts from their work NNPC Nigerian National Petroleum Corporation programs. All ATFs feed into the single, inte- Norad Norwegian Agency for Development Cooperation The Extractives Global Programmatic grated (EGPS) results framework. Support (EGPS) multidonor trust fund helps NTPS National Technical Permanent Secretariat (Chad) resource-dependent developing countries Structure of the FY2021 Report OECD Organisation for Economic Co-operation and Development manage their oil, gas, and mining resources PC Partnership Council (previously named the Steering Committee) The EGPS Annual Report 2021 covers fiscal to support poverty reduction and boost year 2021 (FY2021), which spanned July 1, PNG Papua New Guinea inclusive, sustainable growth and develop- 2020, to June 30, 2021. It provides details on ment. EGPS work focuses on four key areas: PSC production sharing contract projects under the Umbrella’s anchor trust RE recipient-executed (projects/grants implemented by the recipient • Component 1: Revenue transparency fund (EGPS-2) and the ATFs. This year’s government agency or CSO) and efficiency of public management report also focuses on how EGPS reacted SCIESU State Committee on Industry, Energy and Subsoil Use (Kyrgyz Republic) systems to the ongoing crisis stemming from the COVID-19 pandemic. SDG Sustainable Development Goal • Component 2: Evidence-based, SOE state-owned enterprise effective regulation and institutional Highlight stories demonstrate how EGPS, strengthening through its grants, has helped its clients TEITI Tanzania Extractive Industries Transparency Initiative achieve greater development outcomes and TF trust fund • Component 3: Local value and impacts over the last years. After this intro- UNDP United Nations Development Programme diversification ductory chapter, the report is structured WBUA Western Balkans and Ukraine • Component 4: Local community into seven chapters: All dollars are U.S. dollars unless otherwise indicated benefits for all and mitigating impacts • EGPS Portfolio—EGPS highlights on local ecosystems • EGPS Response to the COVID-19 The World Bank introduced Umbrella Trust Crisis—How EGPS responded to the Fund Programs in the context of the 2019 immediate health and economic cri- trust fund reform as a flexible way to align sis stemming from the COVID-19 and manage development resources for pandemic, including the COVID-19 results at scale, and EGPS was established emergency response for artisanal and as the Umbrella covering the oil and gas small-scale mining and mining sectors. As a result of this con- • Component 1: Revenue transparency— solidation, the EGPS Umbrella has become What progress EGPS-financed coun- the overarching structure that hosts all tries have made toward implementing associated trust funds (ATFs) that relate and mainstreaming the Extractive to extractive industries. The EGPS annual Industries Transparency Initiative (EITI) * IIn 2019, the World Bank changed the terminology of the governing body for an Umbrella trust fund from Steering report provides an overview of activities Committee to Partnership Council. With EGPS-2 formally set up as the World Bank’s Umbrella 2.0 trust fund program into public financial management on extractives, this annual report will refer to the EGPS governing body as the Partnership Council. under the Umbrella and all ATFs, focusing 8 EGPS ANNUAL REPORT 2021 Introduction 9 systems, to ensure the long-term sus- (in good employment, local procurement, Communications and Outreach more light on the progress and chal- tainability of transparency reforms and decision-making, and gaining greater lenges of EGPS projects and to facili- EGPS shares its knowledge, advocacy, and • Component 2: Regulation and respect for women’s rights) and combat tate direct interaction between donors analysis through a wide range of commu- Institutional Strengthening—How EGPS discrimination, harassment, and violence. and implementing teams. Four success- nication channels, including regional and supports stakeholders to identify key This engagement to close the gender gap ful webinars have since been held on global events, social media platforms, and sector issues, define reform priori- cuts across the entire EGPS portfolio. topics of interest. In addition, the team other online venues. ties, and design adequate regulatory organized several internal webinars for The EGPS project portfolio met and sur- and management solutions for the This financial year was busy on the commu- the World Bank team working on the passed many of its gender-related objec- extractives sector nications front. A public affairs officer was oil and gas and mining sectors to keep tives set out in its FY2021 business plan and hired to build visibility and outreach infra- them abreast of what is happening in • Component 3: Local Value and gender strategy.1 Most notably, the 55 per- structure. The Partnership Council devel- the sectors. Diversification—How EGPS supports cent target for EGPS activities to be gen- countries in creating new opportunities oped and approved a communications and • EGPS overview video: In July 2020, der related was exceeded this year, with for local value and shared infrastructure visibility plan in December 2020 to ensure EGPS launched a new overview video, PL 77 percent of proposals featuring gender AY VID E O in the context of green growth through strategic engagement and clear, effective “Maximizing the Benefits of Oil, Gas, activities and reporting on gender-sensitive the promotion of innovation, long- communications and branding at both the and Mining for Developing Countries.” indicators in the EGPS results framework. term competitiveness, and regional secretariat and project level. It highlights how EGPS supports This was achieved in part by ensuring that resource-dependent developing coun- collaboration • EGPS website: The website was rede- dedicated personnel were available to the tries to build extractives sectors that • Component 4: Local Communities and signed to include multimedia con- task team leaders to ensure that gender drive inclusive, sustainable growth and Ecosystems—How EGPS engages in tent and improve the dissemination objectives in the EGPS results framework development and, ultimately, poverty consolidating environmental protection of knowledge. In FY2020, the website and business plan were accounted for at reduction, and it explains the positive and community benefits while support- averaged around 180 monthly visitors; every stage of the project life cycle. EGPS outcomes of our work, linked to our ing activities to minimize the environ- in FY2021, the average grew to more also funded a gender program within the mission. The video had 989 views on mental impact of extractive industries than 1,000 visitors a month—a 450 per- World Bank’s Energy and Extractives Global YouTube at the time of reporting. as well as develop workable solutions cent increase. The revamp improved Practice to provide operational support to and remedies to mitigate their adverse • Social media: Throughout the year, access to the website, allowing EGPS IEEXI lending operations to include gender effects EGPS used the World Bank’s social content to reach a new, broader gap analysis, gender-related project design, media channels to establish digital con- • Associated Trust Funds under the EGPS audience. and targeted gender progress monitoring. versation around our work on oil, gas, Umbrella—Climate-Smart Mining Five lending projects have benefited from • EGPS newsletter: The secretariat intro- and mining; to support EGPS exter- the support of this project. Four of the five duced a quarterly EGPS newsletter Cross-Cutting Themes nal engagements, such as events and projects (80 percent) have been approved (The EGPS Update) to keep stakehold- launches; and to promote general EGPS Gender by the Board and categorized as gender ers abreast of EGPS activities and proj- communications products, such as tagged by the Gender Group; one project is ects. Four issues have been sent out, videos. This online engagement grew EGPS supports the implementation of pol- expected to be approved in FY2022. averaging an open rate of 75 percent, increasingly important as the COVID- icies and strategies to increase the mean- which is 53 percent above the industry 19 pandemic took hold and in-person ingful economic engagement of women average of 22 percent. interactions became limited. • Webinar series: The program launched 1 EGPS gender strategy thematic areas include (a) promoting more data and research; (b) ensuring an enabling legal and regulatory environment for women; (c) building women’s leadership, voice, and agency; (d) providing education a Meet the TTL seminar series to shed and training; and (e) preventing and responding to gender-based violence. 10 EGPS ANNUAL REPORT 2021 Introduction 11 Event Highlights and Ukraine, and two regional events as part Publications of the launch of the 2020 State of the ASM COVID-19 restrictions limited the possibility Public Disclosure Authorized Reuse and Recycling: Sector Report. EGPS was also represented 2020 State of the MINING SECTOR Environmental Sustainability of Spatial Planning for Resilient Economic Diversification Artisanal and Small-Scale DIAGNOSTIC Lithium-Ion Battery Energy PERU to host the EGPS Second Global Gender in Mining Sector Storage Systems at a number of events on the global stage, Public Disclosure Authorized Oil, Gas, and Mining Conference in person. Final Report including the PDAC convention (February Spatial Planning for Chad SME Competitiveness and Global Value Chain Public Disclosure Authorized Upgrading Diagnostics with Focus on Opportunities in INTERNATIONAL DE VELOPMENT IN FOCUS The event, themed “Getting to Equal in a Resilient Economic the Domestic and Regional Markets Dobbin, Márquez, and Rietbergen-McCracken 2021), and the International Round Table on Diversification La Guajira, Colombia Changing World,” was organized with the James Dobbin, Tatiana Márquez, and Public Disclosure Authorized Mineral Criticality (November 17, 2020). Jennifer Rietbergen-McCracken Inter-American Development Bank (IDB) TRUST FUND ANNUAL REPORT A GLOBAL PLATFORM FOR ARTISANAL & SMALL SCALE MINING DATA Trust Funds and Partner Relations and the International Finance Corporation There were also several in-country proj- Development Finance 1 An Energy Storage Partnership Report (IFC) and held on March 3–4, 2021. The ect-level events. In Uzbekistan, for exam- The report microsite Watch a webinar EGPS work was virtual format allowed for greater global ple, the government with support from the generated more discussing key also profiled here. than 1,061 visits in findings from the participation. More than 800 people from World Bank, the African Development Bank, the first week alone. report here. governments, academia, industry, and civil and the European Bank for Reconstruction society attended, making it a major high- and Development teams organized the light for the gender portfolio this year. second roundtable on the energy sector Monitoring and Evaluation grant/project, to ensure that results are Through social media, the online conver- reform on October 23, 2020. The event was achieved as agreed. The secretariat is in EGPS monitors its programs and proj- sation on the conference themes reached to review the country’s progress and future continual contact with task team leaders to ects on a regular basis. The EGPS Program more than 250,000 people. plans in reforming the gas and electricity support their project design, data collec- Secretariat updates and reports to donors sectors, as well as to discuss how the World tion, and reporting efforts to maintain con- EGPS organized several other online events, during the Partnership Council meetings, Bank Group and other international finan- sistent quality reporting on the EGPS results including “Rethinking ASM Formalization: in Meet the TTL webinars, and through the cial institutions could further support these framework. How COVID-19’s Disruption Can Be annual report. initiatives. The event was shared widely on Catalyzed for Development,” the launch of At the project/grant level, each task team social media and covered by Uzbekistan’s At the EGPS program level, the secre- the Platform Initiative in Support of Coal leader prepares and submits to the secre- leading media outlets. tariat regularly monitors funding alloca- Regions in Transition in Western Balkans tariat an annual status report reflecting the tion and ensures that grants/projects are progress of each grant/project and results implemented in a timely manner and as achieved. Information from these status approved. The secretariat, using the results reports/progress reviews are consolidated framework, also monitors the annual sub- and incorporated in the EGPS annual report. mission of progress/status reports for each 12 2020 Press Service of the Ministry of Energy of the Republic of Uzbekistan Introduction 13 EGPS PORTFOLIO Challenges of Project Delivery hold of people for stakeholder consulta- tions. Eventually, some projects were able EGPS Highlights during the COVID-19 Pandemic to pivot where possible through the use of COMPONENT 1: CONTINUING SUPPORT FOR EITI IMPLEMENTATION The unprecedented COVID-19 crisis had or the change to remote tools and activi- ■ $25.3 million (45 percent) of the total EGPS allocation from both EGPS-1 and EGPS- a big impact on EGPS projects. The proj- ties—conducting data collection and fol- ects faced numerous implementation chal- 2 was allocated to Component 1 as of June 30, 2021, covering 53 country-specific low-up interviews remotely via email, phone lenges because of global shutdowns and activities and 5 global activities, with $2.7 million (11 percent) allocated to the 5 global calls, and virtual meeting—and by increas- many other restrictions. These challenges activities. ing their reliance on local/in-country consul- included changed priorities as governments ■ EGPS provided the most EITI support for countries in Africa, with funding of $7.9 tants. The move to virtual or internet-based focused on responding to the pandemic, million (31 percent) to a total of 14 countries. communication created opportunities to travel and worksite restrictions delaying ■ EGPS grants supported successful validation, with all EGPS-financed EITI countries introduce new levels of learning among project activities, and poor or lack of infra- beneficiaries with low levels of digital liter- rated “satisfactory” or “meaningful progress” against the 2016 EITI Standard. structure and technology for remote work ■ In FY2021, $5.5 million in new financing was allocated to 11 countries for acy. All projects adapted to a work environ- during lockdowns making it difficult to get ment with less social interactions. implementation of the EITI. Of the 11 countries that received funding in FY2021, Argentina, Guinea, and Mali are new recipients of EGPS funding. COMPONENT 2: ACCELERATING EXTRACTIVE INDUSTRIES REFORMS ■ EGPS allocated $12.6 million to extractive industries reform, inclwuding creating effective policy, legal, and regulatory frameworks and strengthening institutions. ■ EGPS has a robust, geographically diverse Component 2 portfolio, with 42 grants at the end of the FY2021: ■ Six new grants ($2.7 million) were approved in FY2021. ■ The country-specific grants went to Azerbaijan, Peru, Serbia, and the Western Balkans, with Serbia being a new recipient of EGPS funding. COMPONENT 3: PROMOTING LOCAL VALUE AND ECONOMIC DIVERSIFICATION ■ With $3.8 million at the end of FY2021, Component 3 accounts for the smallest share of financing. ■ Component 3 comprises 12 grants financing 6 country-specific activities and 6 global activities. ■ Two new grants for $1.0 million were approved in FY2021: 1 for global activities and 1 for country-specific activities. COMPONENT 4: ENSURING LOCAL COMMUNITY BENEFITS FOR ALL AND MITIGATING IMPACTS ON LOCAL ECOSYSTEMS ■ The total financing for Component 4 is $13.1 million, with $7.2 million allocated in FY2021 (or this fiscal year). ■ Component 4 has 33 grants both for country-specific and global activities, exploring a range of topical policy themes in the extractives sector. 14 EGPS ANNUAL REPORT 2021 photo credit: 2016 Jose Arcos Aguilar/Shutterstock EGPS Portfolio 15 EGPS Portfolio Allocation October 2020 for the Emergency Response FIGURE 1: Cumulative Allocation and Disbursement by Country and Artisanal Mining Communities Impacted by Global/Regional Activities as of June 30, 2021 (US$, millions) EGPS builds its portfolio from regular calls COVID-19 ($5.3 million). Twenty-two grants for proposals. EGPS focuses primarily on 66% totaling $10.8 million were awarded funding $40.0 $36.8 resource-rich developing countries (RRDCs). and added to the EGPS portfolio. Target countries for EGPS engagement are $35.0 low-income countries (LICs), lower mid- Of the 131 grants, 91 are country-specific $30.0 71% grants, covering 47 countries and account- $24.3 dle-income countries (LMICs), and upper $25.0 34% middle-income countries (UMIC) in this ing for $36.8 million, or 66 percent of fund- $20.0 $19.0 sequence of priority. Within these groups, ing, and 39 are global or regional grants, $15.0 29% preference is given to countries affected by accounting for $18.99 million, or 34 percent $9.9 $10.0 fragility, conflict, and violence (FCV). of funding (Figure 1). $5.0 Successful country-specific proposals Transparency is a powerful change agent to $0.0 demonstrate demand and strong govern- ensure that natural resource revenues have Country-Specific Activities Global Activities ment ownership and are consistent with transformative impacts on local develop- Allocations Disbursements one or more core elements of the relevant ment. EPGS grants through Component 1 Note: Includes supervision and reflects the cumulative allocation and disbursement for EGPS-1 (Rounds 1–8) and World Bank country’s priorities. The pro- help finance countries’ efforts to improve EGPS-2 (Rounds 9–11, COVID-19 emergency response for artisanal and small-scale mining, climate-smart mining). posals are also assessed and selected based extractives sector revenue transparency and on soundness of the proposal, readiness for efficiency, of which support to EITI remains implementation, ability to show measurable at the core. Component 1 projects/grants FIGURE 2: Cumulative Allocation by Component as of June 30, 2021 impact, clear monitoring and evaluation of dominate the EGPS portfolio (Figure 2). (US$, millions) EGPS performance indicators, and strategic Figure 3 illustrates the geographical allo- alignment with other World Bank work (to $30.0 cation of EGPS funding. Most country- obtain leverage). specific activities were carried out in Africa $25.0 EGPS has conducted 11 proposal selection (21.9 percent). Global and regional activities $20.0 rounds (8 under EGPS-1 and 3 under EGPS- make up 34 percent of the EGPS portfolio. 2), resulting in 131 grants (with a total alloca- $15.0 Donor contributions (including pledges not tion of $55.8 million) approved by the EGPS $10.0 yet received but being processed by the Partnership Council to receive funding as of donor) make up EGPS’s revenues. Once $5.0 June 30, 2021. donors have made core (unrestricted) con- tributions, they can make, in exceptional $0.0 Two proposal selection rounds were con- Component 1 Component 2 Component 3 Component 4 CSM ducted in FY2021 under EGPS-2 (Round cases, a contribution limited to a specific Note: Includes supervision and reflects the cumulative allocation and disbursement for EGPS-1 (Rounds 1–8) and 10 in December 2021 and Round 11 in May purpose (preference for a specific compo- EGPS-2 (Rounds 9–11, COVID-19 emergency response for artisanal and small-scale mining, climate-smart mining). 2021), including an allocation under the nent). Donor contributions to EGPS can be COVID-19 emergency support window in found in Table 1. 16 EGPS ANNUAL REPORT 2021 EGPS Portfolio 17 FIGURE 3: Cumulative Allocation by Region as of June 30, 2021 (US$, millions) 4.5% 0.5% TABLE 2: EGPS-2 Donor Contributions Received as of June 30, 2021 4.5% Global (US$ millions, equivalent) 34.0% AFR EAP 15.7% Total Total ECA Donor FY2020 FY2021 FY2020–2021 Pending* Commitments LAC Belgium 0.00 2.43 2.43 0.00 2.43 MENA France 0.00 2.56 2.56 3.62 6.18 SAR 14.5% 21.9% Germany 0.00 2.79 2.79 .48 3.28 Note: Includes supervision and reflects the cumulative allocation and disbursement for EGPS-1 (Rounds 1–8) Netherlands1 1.00 0.00 1.00 0.00 1.00 and EGPS-2 (Rounds 9–11, COVID-19 emergency response for artisanal and small-scale mining, climate-smart mining). AFR = Africa; EAP = East Asia and Pacific; ECA = Europe and Central Asia; LAC = Latin America and the Norway 1.71 1.17 2.87 .61 3.48 Caribbean; MENA = Middle East and North Africa; SAR = South Asia. Switzerland (SECO)2 2.51 3.86 6.36 1.10 7.46 TABLE 1: EGPS-1 Donor Contributions Received as of June 30, 2021 United Kingdom 2.25 1.79 4.03 0 4.03 (US$ millions, equivalent) Total Net 7.46 14.59 22.05 5.81 27.86 Contributions Total Add Investment 0.10 0.10 FY FY FY FY FY FY FY2015– Total Income Donor 2015 2016 2017 2018 2019 2020 2020 Commitments Less Administration 0.03 0.03 Fees Australia 3.82 2.89 1.51 2.05 10.27 10.27 Net Investment Belgium 1.32 0.48 0.46 2.26 2.26 0.10 0.10 Income (Gain/Loss) Canada 4.56 4.56 4.56 Total Net 22.13 5.81 27.96 Contributions European 2.67 2.85 5.52 5.52 Commission *Based on the current exchange rate 1 US$1 million preferenced for Climate-Smart Mining (CSM) Finland 2.25 0.19 2.44 2.44 2 Switzerland has pledged to contribute 10 million Swiss francs towards Artisanal Small-Scale Mining in Sahel Germany 0.34 0.29 0.32 0.33 1.28 1.28 Associated Trust Fund (in preparation). Netherlands 0 1.29 0.73 .50 2.52 2.52 Norway* 2.10 1.41 3.51 3.51 Switzerland* 1.53 1.08 2.61 2.61 United Kingdom* 2.04 1.66 3.03 6.72 6.719 Total Net 3.82 8.77 13.80 6.61 4.38 4.318 41.69 41.69 Contributions Add Investment 1.36 1.36 Income Less Administration 0.69 0.69 Fees Net Investment 0.67 0.67 Income (Gain/Loss) Total Net 42.36 42.36 Contributions *Contribution preferenced for Component 1 (EITI). 18 EGPS ANNUAL REPORT 2021 EGPS Portfolio 19 EGPS RESPONSE TO The project, executed in just under three financed a global data collection initiative months from late April 2020 to early July to capture how immediate lockdowns and THE COVID-19 CRISIS 2020, generated a first, high-level outlook travel restrictions, in response to the crisis, of the anticipated impact of COVID-19. It were impacting ASM communities world- resulted in a fully operational integrated wide. The data collection surveys were con- What started as a worldwide public health Understanding COVID-19’s macroeconomic and gas megaproject ducted by the World Bank working with 17 emergency quickly became an international model attuned to the national accounts of partner institutions in 22 countries across Impacts on the Extractives economic crisis, affecting all economic and Mozambique. With the help of this model, three continents. The findings of the sur- Sector and State Revenues social sectors from health to the environ- the team managed to simulate the impact veys were published on the Delve platform ment, industry and jobs, the macroecon- Resource-based economies, such as of the COVID-19 pandemic on key macro- and provided critical insights in all aspects omy, and government debt, among others. Mozambique, Papua New Guinea, and Peru, economic indicators, that is, fiscal revenue of life—personal security, income earned, Measures to limit the spread of the virus depend heavily on the extractives sector and debt sustainability of the country. food security, and supply chain challenges. came at a cost as shutdowns led to reduced for employment, export of mineral com- The data set remains to date the only pub- In parallel, the team developed an out- economic activity and a sharp contraction modities, and state revenues. Consequently, licly available global data set on the impacts look for commodity prices for key export of state revenues, especially in developing COVID-19 was expected to significantly of the evolving crisis on ASM communities. and fiscal revenue-generating minerals in “ countries. The negative impact on state rev- impact the short-term economic outlook for both Mozambique and Peru. In a separate enues and the surge of unemployment in these countries. A preliminary assessment report, the team presented an outlook of Some of the poorest and most countries has exacerbated the high levels of forecasted a worldwide drop in demand for the impact of COVID-19 on future develop- vulnerable people work in artisanal informal labor, such as in the artisanal and oil, gas, and minerals that would not only ment prospects in the mining sector in both and small-scale mining, and we are small-scale mining sector, along with all its impact anticipated revenues from existing countries. deeply concerned by the effects complications and risks. In many developing projects but also delay investments, leading of COVID-19 on their lives and countries, economic recovery, and the way to cancellations of new resource megaproj- COVID-19 Emergency Response back to normalcy, will depend heavily on revenues provided by the extractives sector. ects of transformational importance in their host countries. for Artisanal and Small-Scale Mining Communities livelihoods. We are convinced that EGPS is well-placed to provide significant and concerted support, “ At the start of the pandemic, EGPS identi- Supported by an EGPS grant, a World Bank with its evidence-based approach. In developing countries, the COVID-19 cri- fied two areas where it could make a unique team together with the country economists sis is having an immediate and amplified —Monica Rubiolo, Head of Trade contribution: in Mozambique and Peru set out to under- impact on the poorest and most vulnerable Promotion, Swiss State Secretariat stand the short- to medium-term effects of • Understanding the economic impact of regions. The estimated 44 million people for Economic Affairs the pandemic-induced impacts in the oil halted and reduced mining activity on working in artisanal and small-scale min- and gas and metal sectors on GDP, employ- state revenues and developing econo- ing (ASM) worldwide are particularly at risk ment, and fiscal revenues in client countries, The global data collection initiative informed mies more broadly and assessing the as many of them work in the informal sec- based on a project-by-project breakdown the EGPS design of a targeted COVID-19 role of the sector in economic recovery tor and are not supported by government of existing and prospective operations emergency response to help address vulner- social security safety nets. • Addressing the impact of the COVID-19 that allows for a quantified forecast of the abilities of artisanal miners and their commu- crisis on communities that rely on arti- aggregated impact on the macro level. The EGPS’s early warning that COVID-19 could nities around the world to better cope with sanal and small-scale mining as a pri- team also identified relevant sector-specific pose serious risks to many artisanal min- pandemic-related impacts. The emergency mary source of livelihood policies, regulation, and management pro- ers and their communities set the tone response was established in June 2020 with cesses to mitigate this impact. for a global response. In May 2020, EGPS seed funding of 1 million Swiss francs from 20 EGPS ANNUAL REPORT 2021 EGPS Response to the COVID-19 Crisis 21 the Swiss State Secretariat of Economic The emergency response provided short- Results in Numbers Affairs (SECO), and it has since received and medium-term assistance to a range of $4.8 million from Belgium and Germany. international, regional, national, and local “ organizations engaged in artisanal and 6,000 people receiving COVID-19 small-scale mining in three rounds: The COVID-19 pandemic has prevention-related training been a massive shock for • Round 1: Short-term relief (3–6 9,000+ stakeholders trained informal workers around the months)—projects responding to world and threatens to reverse the immediate health and economic the enormous progress that ASM impacts of the crisis communities have undertaken 10 initiatives • Rounds 2 and 3: Medium-term relief (up to formalize the sector. As the addressing to 1 year)—projects focusing on restruc- impacts of COVID-19 continue gender-based turing and resilient recovery stages, to evolve, EGPS has adjusted its violence helping ASM communities build greater work program to address these resilience for the future vulnerabilities and created this emergency response to provide Over the reporting period, funds were pro- 200+ ASM networks/associations the highly “ immediate action in support of vulnerable living and working in remote, miners vided to 28 organizations engaged in arti- sanal mining in more than 25 countries in Africa, Asia, and Latin America and the strengthened to prevent and address COVID-19 impacts in communities rural areas. Caribbean. More than 85 percent of the organizations had not previously received —Christopher Sheldon, Practice funding from the World Bank, about a third Manager, Energy and Extractives were women mining organizations, and 40+ women-led or Global Practice at the World Bank most were local grassroot organizations. women-owned organizations/mining entities supported to address gender gaps Type of 80% to social protection such as improvement of conditions Support Covered for women miners and COVID-19 awareness The EGPS COVID-19 Emergency Response capacities. In addition, they facilitated project team provided support and guid- monthly dialogue among organizations and ance to these organizations and helped other larger initiatives to exchange informa- 13% to economic resilience improve their monitoring and evaluation tion and experiences. such as improved ASM market access 7% to environmental activities such as prevention of encroachment in protected areas photo credit: rock photo in the infographic above: 2021 Wirestock Creators/Shutterstock 22 EGPS ANNUAL REPORT 2021 EGPS Response to the COVID-19 Crisis 23 Impact Stories HEALTH—ADOPTION OF COVID-19 REDUCING GENDER-BASED VIOLENCE PREVENTATIVE MEASURES IN COLOMBIA Beneficiary: Women’s Right to Education Programme (WREP) Beneficiary: Colombia Mining Association (ASOMINEROS) Objective: Mitigating the impact of COVID-19 on women through training and adoption of a gender-based violence (GBV) warning app in Nigeria Objective: Mitigation and reduction of the impacts by COVID-19 in artisanal and small- scale miners and their families in the municipality of Vetas, Santander, Colombia Since the outbreak of COVID-19, data and reports from those on the front lines have shown that all types of violence against women and girls, particularly domestic violence, inten- The project supported 300 families to protect themselves from COVID-19 by sensitizing the sified. This project aimed to create safe spaces for women who work in ASM in their local ASM communities on procedures for preventing the spread of COVID-19. The project sup- communities and to reduce the incidences of gender-based violence. ported the establishment of health committees to liaise with local government and the may- or’s office and to implement safety measures on mining sites, such as protocols with local The project put in place structures for the protection of survivors of GBV and used the health authorities that provided timely monitoring and provision of care to the community. ConstantSee app to report cases of GBV to a hub created in partnership with the Women Arise Development and Humanitarian Initiative (WADHI) and the Nigeria Ministry of Women I am a mining technician and an explosives handler within the La Elsy Affairs. WREP trained 24 people as vanguards within these communities to operate the tool company. I received training from ASOMINEROS where they explained and to provide help through existing channels. the proper use and care of personal items to prevent COVID-19, as well as handwashing, disinfection of areas, and the care of me and my family. The lockdown really affected my only source of income as it became hard for me to feed my children. Since the country was on lockdown, —Norbey Rodriguez Villamizar, an employee of La Elsy customers were no longer coming to buy our crushed stones, making the situation for us to earn money much more difficult. This project was a lifesaver. Aside from the reduction of harassment of women and girls both sexually and otherwise, I was able to learn how to produce liquid soap and hand sanitizer, I also learnt about menstrual hygiene management. —Amina Umar Photo credit: 2021 Sidney Aparicio, Vetas/Santander Ibrahim, a Photo credit: 2008 Curt Carnemark/World Bank 32-year-old mother of two who works at a rock crushing site in Alizaga community, Nasarawa State, Nigeria 24    25 FINANCIAL LITERACY AND ALTERNATIVE AND STRENGTHENING CAPACITIES FOR COMPLEMENTARY LIVELIHOOD SUPPORT ALTERNATIVE AND COMPLEMENTARY LIVELIHOODS Beneficiary: Association of Women in Energy and Extractives in Kenya (AWEIK) Beneficiary: SRADHA Objective: Supporting women artisanal miners to address challenges caused by COVID- 19 and to assess the barriers to their participation in the mining sector in Kenya Objective: Mitigating the impacts of COVID-19 in ASM communities in KBK regions of Odisha, India Government-issued lockdowns, movement restrictions, and the closure of some mine sites prevented most gemstone miners from easily accessing markets, placing great hardship The project supported ASM workers who belong to marginalized tribal families by rais- on those who depend on mining and trading gemstones for their livelihoods. This project ing awareness of the challenges they face and by building capacities of ASM communities provided financial literacy training and built partnerships with certified gold buyers to help through trainings and creation of a virtual learning and networking platform. The project women artisanal miners create alternative livelihoods. also gave support to existing and alternative livelihoods for miners wishing to complement their income or transition out of ASM. One of the things I learnt from the AWEIK Janaki Padhan, a single mother of three, is an ASM worker from Ulanda Block of Subarnapur trainings that I implemented immediately District. She pans gold from the bed of the Mahanadi River with other community members was to open an alternative business, a and also catches fish, which she dries and then sells at a local market. During pandemic- butchery, so as to have a secondary source induced lockdowns, Janaki could not pursue her ASM activity, losing her source of income. of income aside from my mining business. Although I already ran a formalized Since COVID-19, our lives have not business prior to the trainings supported been the same as before. Under normal by this project, I have significantly circumstances, I make about INR 1,500 in a improved my records keeping in the office week from mining and I am regularly paid. and started being compliant with business This was reduced to zero and my savings in regulations such as filing returns with cash, kind (grains and pulses), and poultry various government bodies and following birds were exhausted in feeding my children due process. From the trainings, I am a meal per day, which lasted for 1½ months. also currently working on expanding my My dry fish business stopped as I could not participation in gemstone value chain by reach the buyers in the local market due to Photo credit: Mitrabhanu Mishra /SRADHA investing in personal training on value complete lockdown. Photo credit: 2021 Josephat Yaro addition. I can now make necklaces, —Janaki Padhan earrings, and bracelets from gemstones and beads. This project has really empowered In early December 2020, Janaki received training on hygienically processing and packaging me as a woman. of dried fish to strengthen her alternative livelihood option. Project staff linked her to local buyers of hygienically packed fish and farm products who procure online or by telephone —Esther Okeno, a widow and mother of and supply using door-to-door delivery. Although she has since resumed gold mining, three who owns and operates a gemstone Janaki continues to sell fish. She mobilized other female artisanal miners in her community mining and dealing company in Taita to procure and process dried fish, which she then sells to the local supply chain, profiting Taveta County, Kenya everyone involved. 26 EGPS ANNUAL REPORT 2021 EGPS Response to the COVID-19 Crisis 27 ACCESS TO MARKETS AND RAISING AWARENESS AND INFORMING POLICY INCOME GENERATION ON GENDERED APPROACH TO ASM Beneficiary: Virtu Gem Beneficiary: Action Mines (AMINES) Objective: Restoring a disrupted supply chain in Zambia Objective: The promotion of socioeconomic rights of women in artisanal mining in Guinea Gemstone mining communities rely on sales of gems to support themselves and their fam- The project objective was to support the economic well-being of women involved in artis- ilies. The pandemic disrupted the gemstone supply chain throughout Zambia. Rural mining anal and small-scale mining while strengthening the resilience of local women’s associations communities faced food insecurity from lack of income and health risks for those who were and groups from the impacts of COVID-19. still working. With the EGPS grant, the Virtu Gem program created a virtual gem store to As part of its activities, this project organized a roundtable to advocate for women in the bring immediate economic and health support to artisanal gemstone miners in Zambia by ASM sector. The meeting brought together various stakeholders of the mining industry, providing access to international markets. including government representatives, private sector, and civil society organizations, to dis- The Virtu Gem online gemstone sales platform has resulted in more income for marginalized cuss how to integrate the concerns of women working in ASM into public policies in order ASM communities in rural Zambia, who were unable to sell their wares in the capital city and to strengthen the economic footprint of women after the COVID-19 crisis. Following the onward to international markets. It has clearly disrupted the business-as-usual approach meeting, AMINES established a partnership with state authorities—including the Ministry of and paved the way for continued and greater access to markets. Mines and Geology, Ministry of Empowerment and Women’s Rights, and Ministry of Social Action, Women’s Promotion and Childhood—and local authorities to ensure that the recom- mendations of the project are implemented. The organization also signed a memorandum of understanding with the industrial and small to medium enterprise development fund Fonds de Développement Industriel et de PME (FODIP), which has made a commitment to include the women economic interest groups in its monitoring portfolio. 28 29 COMPONENT 1 REVENUE TRANSPARENCY Revenue transparency and efficiency of public financial management sys- tems is a cornerstone of extractive industries governance. Implementation of the Extractive Industries Transparency Initiative and strengthening of civil society organizations’ capacity to engage in the transparency agenda creates benefits for citizens in resource-rich developing countries. OVERVIEW Transparency and accountability are essential for an inclusive and sus- tainable extractives sector. Component 1 focuses on revenue transparency and efficiency of public financial management systems. EGPS provides financial and advisory support to governments of resource-rich develop- ing countries in their implementation of the EITI. Under Component 1, EGPS supports the following activities: EITI implementation at national and subnational levels, including activities to close the gender gap Strengthening capacity of civil society organizations (CSOs) to engage in the transparency agenda 30 EGPS ANNUAL REPORT 2021 Photo credit: 2021 RHJ Photoandillustration/Shutterstock Revenue Transparency 31 Summary of Component 1 Portfolio* COMPONENT 1: ALLOCATION BY REGION • $25.3 million (45 percent) of the total EGPS allocation from both EGPS-1 and EGPS-2 was allocated to Component 1 as of June 30, 2021, covering 34 Chad Mali Zambia Ghana Togo Mauritania country-specific activities and 5 global activities. AFRICA 14 Guinea Nigeria Zimbabwe • $2.7 million (11 percent) was allocated to 5 global activities. Ethiopia Senegal Madagascar • $5.5 million in new financing was allocated to 11 countries in FY2021 for EITI Congo, Dem. Rep. Tanzania implementation. Summary of Portfolio Implementation EAST Indonesia ASIA Mongolia • 14 country-specific grants were completed in FY2021 (13 recipient executed AND 4 Phillipines and 1 Bank executed). PACIFIC Papua New Guinea • 22 grants under Component 1 are ongoing. *Listed activities and budgets refer to both EGPS-1 and EGPS-2. EUROPE Albania Tajikistan AND Armenia Ukraine CENTRAL 7 Azerbaijan Western Balkans COMPONENT 1: ALLOCATION BY REGION ASIA Kyrgyz Republic (EGPS-1 AND EGPS-2)* ■ Africa: 14 countries; $7.9 million, 31% LATIN Argentina Peru AMERICA Colombia Guyana ■ East Asia and Pacific: 4 countries; $5 million, 20% AND THE 7 Dominican Republic Suriname ■ Europe and Central Asia: 7 countries; $5.1 million, 20% CARIBBEAN Ecuador ■ Latin America and the Caribbean: 7 countries; $3.5 million, 14% ■ Middle East and North Africa: 1 country; $1.0 million, 4% ■ South Asia: 1 country; $0.06 million, 0.2% MIDDLE ■ Global: 5 grants; $2.75 million, 10.7% EAST AND NORTH 1 Iraq * Listed activities and budgets refer to both EGPS-1 and EGPS-2. AFRICA SOUTH ASIA 1 Bhutan 32 EGPS ANNUAL REPORT 2021 Revenue Transparency 33 COUNTRY-LEVEL IMPLEMENTATION facilitated a series of community discus- sions, completed a scoping study on mining OF THE EXTRACTIVE INDUSTRIES licensing and organized a multi-stakeholder TRANSPARENCY INITIATIVE forum on improving mining licensing gov- ernance at the provincial level. These activ- ities are contributing to ongoing public EITI implementation sheds light on the open data format for the first time for all citi- discussion on revenue management at the entire extractive industries value chain: from zens to access. Both the report and the ben- subnational level. the point of extraction to how the revenue eficial ownership system were presented at makes its way through the government, to the EITI Armenia Annual Conference on July EGPS is supporting Colombia to enhance how it benefits the public. EGPS pays special 23, 2021. The Armenia beneficial ownership transparency and accountability in its attention to integrating the EITI into pub- disclosure was considered to have made extractives sector governance by deepening lic financial management systems (main- “satisfactory progress” toward the 2019 EITI the implementation of the EITI into munic- streaming the EITI), to ensure the long-term Standard. ipalities to improve revenue management sustainability of transparency reforms. By transparency at the local level. The team con- In Togo, EGPS grant support is focused on the end of FY2021, EGPS-financed coun- ducted a prioritization study identifying four accountability of beneficial ownership and tries had made significant progress toward regions/municipalities for local EITI imple- contract transparency, as well as strength- implementing and mainstreaming the EITI mentation. Local stakeholders developed a ening multi-stakeholder groups governance. into public financial management systems. strategy in each of the four locations. The A transparency study of beneficial owner- subnational structure is ready to be imple- Data Disclosure and ship of mining companies and an institu- mented in the selected regions. The les- Dissemination Channels tional analysis for the internal governance sons learned from this exercise and a model of EITI Togo and its business planning were reporting template created by the team can Implementation of the EITI requires that completed. Overall, Togo has made prog- be replicated in other regions/municipalities. companies that apply for or hold a par- ress both in general EITI implementation ticipating interest in an oil, gas, or mining and in addressing the corrective actions Mainstreaming the EITI into Public license or contract disclose their real own- required for the EITI validation. Togo plans Photo credit: 2015 serato/Shutterstock Financial Management Systems ers. Many grant-recipient countries have to publish its 2018 EITI reconciliation report developed beneficial ownership road maps in July 2021. Weak governance in the mining sector with EGPS support. tends to create productive and allocation change in the administration and to act as Strengthening Subnational Dialogue inefficiencies, negative impacts on com- catalyst and platform for public debate. The In Armenia, despite the COVID-19 pan- NTPS internal administrative procedures munities around mine sites, and opportu- demic, armed conflict, and other challenges, In Indonesia, EGPS contributes to improv- nities for rent-seeking and tax avoidance. were developed, adopted, and posted on the EITI implementation has kept on track. ing management and governance in the In Chad, EGPS is strengthening the capac- the Chad EITI website. The project, which This year, the country published its third mining sector at the subnational level ity of the National Technical Permanent closed during FY2021, was able to carry out EITI report, EITI Armenia National Report through collaborative social accountability Secretariat (NTPS) to plan and execute its its activities despite the challenges posed 2019, and operationalized the Beneficial mechanisms. The proposed operation will work program and to assess its commu- by the COVID-19 pandemic and the military Ownership Electronic Declaration System, take a problem-driven approach to address nication effectiveness. A well-functioning coup in April 2021. in which all metal mining operations in the key governance challenges in the mining secretariat is essential to promote cultural country disclosed their beneficial owners in sector in select provinces. The team has 34 EGPS ANNUAL REPORT 2021 Revenue Transparency 35 Reporting arrangement. At the same time, the NNPC In Suriname, at the closure of the grant sup- for EITI implementation (July 2020). The also began publishing its monthly submis- porting the country’s participation in the project also analyzed and evaluated the Development impact can seldom be sions to the Federation Account Allocation EITI toward more transparent and efficient existing Ecuadoran cadastral management attributed to individual activities or initia- Committee. The submissions contain, management of its mining and oil sectors, information system and computing resource tives. Without claiming attributability, EGPS among other things, oil and gas revenue the project achievements included the pub- capacity to establish a new system. Several has been tracking a trajectory from EITI transfers to the account and gasoline sub- lication of EITI reports, improvements in reports established the initial framework for reports produced to reforms toward sector sidy amounts deducted (falling under qua- public involvement, and trained staff. From implementation of the new system under transparency and good governance in some si-fiscal expenditures). These two sets of July 2020 through September 2020, when the new WGS-84 geodetic reference system of its client countries. data series mark significant steps in realiz- the project closed, project implementa- with GPS compatibility. A substantial part Albania has made progress in attaining ing the EITI’s long-term goal of timely online tion was severely impacted by the COVID- of this engagement on mining cadastre was compliance under the 2016 EITI Standard. disclosure of data related to the upstream 19 pandemic, the July 2020 elections, and carried out in close coordination and collab- The country’s latest EITI report, published oil and gas sector. Importantly, Nigeria EITI the subsequent change in government (and oration with the IDB. in December 2020, covered the 2017–2018 is no longer the only main institution col- key staff in the implementing agency). In lecting and publishing disaggregated data. addition, planned training activities and Capacity Building and Knowledge Work fiscal years. The country continues to report on mining, oil and gas, and hydro- The NNPC now plays a very important role. several outreach events had to be canceled In Papua New Guinea (PNG), EGPS is sup- power and to disclose relevant information as a result of travel/gathering restrictions porting extractive industries accountabil- In 2018, Argentina created the website on commodity trading. Following the con- associated with the pandemic. However, ity and strengthening institutional capacity Mining Information Center of Argentina clusion of Albania’s second validation of the Suriname EITI website, developed with to achieve compliance with the 2016 EITI (CIMA), which discloses information on the 2019, the EITI Board concluded that Albania grant support, has provided an important Standard. The project activities include sector. A large amount of data is gathered, has made meaningful progress overall in platform for citizens to learn more about strengthening institutional capacity and but the CIMA repository stores informa- implementing the EITI Standard, with con- the country’s extractive industries as well as accountability at provincial or subnational tion in a static way and without possibilities siderable improvements across individual engage the government toward enhanced levels, improving public understanding of of crossings and interoperability. In addi- requirements. accountability and improved governance. extractive industry benefits, and advising tion, the information is incomplete and on the design of an online service to oper- With EGPS support, Nigeria’s national oil unranked, the databases do not include Government Ownership ationalize the national EITI website and company, the Nigerian National Petroleum the corresponding metadata, and the In Ecuador, country ownership and pursuit educational mainstreaming through EITI Corporation (NNPC), launched a new data site requires a better process for regular of the transparency agenda have acceler- educational curricula and syllabi. The project series titled “EITI Support (Open Data),” updating. Argentina requested support for ated project results. The project EITI scop- completed the scoping studies, but COVID- which is regularly updated with Excel files. enhancing its information systems that han- ing report, Feasibility Report for Ecuador’s 19 travel and meeting restrictions prevented The NNPC began posting Excel files con- dle and disclose mining activity data in line Adhesion to the EITI (2019), catalyzed the the team from completing the important taining data on its external website in with the EITI Standard. A newly approved vice ministry’s application for EITI candi- outstanding subnational awareness and January 2021. The data coverage is compre- EGPS grant aims to support the country in dacy in 2020. The vice minister of mines roadshows to complement the PNG EITI hensive, covering oil production, oil lifting, improving the transparency of the mining championed the submission of Ecuador’s Secretariat’s efforts in policy-driven pro- gas production, gas use breakdown (power value chain through the dissemination of application, which was discussed at the EITI vincial and regional outreach activities, EITI generation, industrial use, petrochemicals, up-to-date and systematic information and Board meeting in October 2020. The proj- education and provincial mainstreaming exported, flared, re-injected, natural gas liq- EITI reporting. Activities supported by this ect’s intense sensitization work has led to programs, and electronic data portal devel- uid extraction, and so on), royalties paid, grant will focus on setting up the data infor- the establishment of a multi-stakeholder opment. However, the canceled parts of the taxes paid, gasoline imports, and crude oil mation system for the mining sector. group, the amendment of related regula- project have been funded through an addi- sold under the direct purchase–direct sale tions, and the development of a work plan tional, subsequent grant. 36 EGPS ANNUAL REPORT 2021 Revenue Transparency 37 COMPONENT 2 REGULATION AND INSTITUTIONAL STRENGTHENING Evidence-based, effective regulation and institutional strengthening set the framework for an extractives sector that enables investment and ensures inclusive and sustainable development at local and national levels. OVERVIEW The extractives sector’s contribution to social and economic development is largely determined by a country’s policy, legal, regulatory, contractual, and fiscal frameworks and its institutional capacity to implement and enforce them. EGPS assists governments in three areas of sector reform: the development of evidence-based, inclusive, and transparent policies; the design of efficient legal frameworks; and strengthening institutional capac- ity based on performance assessment of the country’s extractives sector. There are two main types of activities under this component: In-country engagement, to provide targeted assistance to governments and their reform agenda, and global knowledge work, to advance the understand- ing of current and upcoming challenges (in extractives sector manage- ment) and to improve the quality and responsiveness of the World Bank’s support to its client countries. 38 EGPS ANNUAL REPORT 2021 2015 serato/Shutterstock. 39 Summary of Component 2 Portfolio* extractives sector project model specific to October 2020, the government, supported the country’s economy and is finalizing its by this EGPS project, organized the Reform • The total allocation for the EGPS Component 2 portfolio is $12.6 million (33 transfer to the country. Roundtable, which endorsed the road map Bank-executed grants and 9 recipient-executed grants). and implementation plan. Last November In Nigeria, EGPS is contributing to the anal- • EGPS has a robust, geographically diverse Component 2 portfolio, (2020) the Supervisory Control and Data ysis of the Petroleum Industry Act, signed with 42 grants at the end of FY2021: Acquisition (SCADA) technology concept into law on August 16, 2021. The team had was also finalized. Upon successful execu- • Six new grants (with a total budget of $2.7 million) were approved in reviewed several successive versions of tion by the state-owned transmission net- FY2021. the Petroleum Industry Bill and had shared work operator, methane emissions and its assessment with government counter- * Listed activities and budgets refer to both EGPS-1 and EGPS-2. thus commercial volume losses would be parts and development partners, including reduced. In phase 2, set to begin in July 2021, the International Monetary Fund (IMF) and EGPS will provide international best-prac- bilateral donors. After the law was passed, tice guidance to the government’s imple- IN-COUNTRY ENGAGEMENT the team was asked by government coun- mentation scheme to fully liberalize the gas terparts to help them understand the impli- market over the course of 2021–2022. cations of the new law and, to the extent With in-country assistance, EGPS helps Papua New Guinea has a wealth of natural strengthen the capacity of countries to cre- resources. Revenue from these resources that there are ambiguities or inconsisten- Improving Investment Climate cies, how best to handle them. ate evidence-based, inclusive, and trans- could contribute to reducing poverty and Under this pillar, EGPS also shares insights parent policies reflective of a country’s improving the lives of the country’s citizens. In Uzbekistan, an EGPS project is support- and analysis with decision-makers to clar- priorities through specialized technical The devastating impact of COVID-19 and ing the Ministry of Energy to undertake ify strategic directions, leading to more knowledge to policy makers, legislators, an increased focus on climate change have reforms to improve security, sustainability, sustainable mining investment and benefit regulators, and civil society organizations. stoked the urgency to develop a national and governance of the gas sector. Reforms flows over the long term. EGPS supports stakeholders to identify key mineral and oil and gas development strat- are required to ensure longer-term afford- sector issues, define reform priorities, and egy, which would allow the government to Georgia, a mineral-rich country in the able and secure domestic supply. The sec- design adequate regulatory and manage- better plan and manage the huge poten- Caucasus, has a history of mining that for tor reform takes place in the context of a ment solutions for the extractives sector. tial socioeconomic benefits of the country’s decades has helped generate revenues broad market-oriented five-year reform pro- mineral resources. An EGPS grant-funded important to the national and regional bud- gram transforming the country into an open Sector Analysis/Reform activity is supporting the government to gets and employ up to 45,000 people. In the economy, announced by the government in address these strategic challenges. The last five years, renewed interest in the min- Extractive resources such as oil, gas, and 2016. The first wave of sector reforms pre- work consists of building capacity in the rel- erals sector has emerged; an estimated 35 minerals can have a transformative impact dominantly targeted institutional reforms. evant institutions to create and implement percent of exports are mineral-related (met- on the development trajectory of a country; The second one, supported by the World a national mineral and oil and gas resource als and concentrates). In 2017, the country however, harnessing these opportunities Bank, aspires to achieve a comprehensive development strategy, modeling the eco- started a mining sector reform and modern- presents numerous challenges. This is espe- set of legal, regulatory, financial, market, nomic and social benefits of developing ization process to boost investments in the cially true in countries affected by fragil- institutional, and governance reforms. In resource megaprojects, and developing a sector and grow the country’s GDP and rural ity, conflict, and violence whose economies phase 1, the Gas Sector Reform Roadmap national fuel strategy across all sectors of development. EGPS is assisting the govern- depend on extractive industries, especially and Reform Implementation Plan for the the economy. This year, the project team ment of Georgia in promoting its mineral oil and gas. second reform wave were delivered to the developed an integrated macroeconomic/ potential to attract more responsible inves- Ministry of Energy in September 2020. In tors. An assessment of the current state of 40 EGPS ANNUAL REPORT 2021 Regulation and Institutional Strengthening 41 mining licensing and geological information models for generating public and private output of this project will provide a basis for country’s future petroleum sector develop- systems in Georgia and best practices was capital, as well as doing a review of the gov- future donor engagement with the govern- ment, one of the most contentious issues produced, as well as initial mining brochures ernance of state-owned mining enterprises. ment on its reform agenda. in the state-building process, especially to promote selected mineral deposits. This The project has drafted several strategic as it relates to revenue sharing between project is expected to deliver digitization reports: (a) an analysis of the economic per- Extractives Resources Can Be the regions. EGPS funding supported the of maps, a communication strategy, and a formance of developing strategic mineral Key for Nation Building petroleum reforms and institutional capac- catalogue with at least 20 project brochures deposits, (b) a bench-marking study on the ity building to help the government’s new Somalia and its international partners com- presenting potential reserves. costs and benefits of different models of administrative efforts for deriving agree- mitted to aligning behind Somalia’s new state participation in mining, and (c) an eval- ments of ownership and revenue sharing In Mongolia, the government wants to boost National Development Plan (2017–2020, uation of tax structures for the government for all of Somalia’s natural resources. This revenues, retain more value in-country, 2020–2023). The development plan’s import to consider; the final reports, incorporating project, which closed in December 2020, and create conditions for more diversified to the country’s state-building process stakeholder feedback, are expected in early achieved its objective of strengthening economic growth in the future. An EGPS- was reinforced by the New Partnership for FY2022. In addition, a report specifically on the capacity of the Federal Government of financed project is assessing drivers of sus- Somalia agreed at the London Conference sovereign wealth funds was also completed Somalia to manage its petroleum sector. tainable mineral resource development and in May 2017. It aspires to resolve the and delivered to the government. The final The Somalia Petroleum Authority was set 42 EGPS ANNUAL REPORT 2021 photo credit: TSD5555/Shutterstock Regulation and Institutional Strengthening 43 up in July 2020 with the basic tools (institu- changes made the operating environment strategy. This examination will be comple- of the Oil and Gas Sector, to change that. tional and organizational structure, human for mining companies more restrictive. mented by advice on strategies for address- This study will advance the understanding resources framework). The authority is now EGPS financed an impact assessment of the ing technical, economic, environmental, and of the challenges for petroleum-producing established as the institutional regulator. reforms and a dialogue process between social challenges. developing countries’ tax policy and tax stakeholders from government and indus- administration associated with the increas- Broader Sector Reforms try on the way forward. The team under- Generation of Global Knowledge ing uptake of digital technologies in the oil In Madagascar, an EGPS grant is helping took field research surveys in Dar es Salaam, Through this pillar, EGPS provides global and gas upstream sector and will improve improve the capacity of government to Dodoma, Shinyanga, and Mara, where they knowledge to advance the understanding the quality of the World Bank’s support to design legal, fiscal, and institutional reforms interviewed key stakeholders and made of current and upcoming challenges (in its client countries. for an effective, transparent, and sustain- direct observations of the three identified extractives sector management as well as The Mining Sector Diagnostic (MSD) tool, able development of the sector as part of and selected gold mining sites. The team sector taxation) and to improve the qual- an EGPS flagship project, is designed to the reforms laid out in the Plan Emergence is finalizing the report, which includes an ity and responsiveness of the World Bank’s comprehensively assess a country’s mining Madagascar (PEM 2019–2023). In FY2021, assessment of the impact of current policies support to its client countries. sector to inform dialogue and engagement the project delivered a range of techni- and regulations on Tanzania’s competitive- The future of oil and gas taxation: The tax across government, the private sector, and cal assistance on mining policy priorities, ness for mining foreign direct investments policy and tax administration challenges civil society while also identifying priority including implications of the COVID-19 cri- as well as lessons and recommendations for associated with the increasing digitaliza- areas for reform. During FY2021, two MSD sis as well as specific legal issues like the the government of Tanzania. tion of the economy are areas of recent assessments were completed—for Peru management of mining titles and aspects According to the USGS’s latest lithium report, interest by the Organisation for Economic and Afghanistan. The Afghanistan assess- of ASM formalization. In early 2021, a joint Bolivia has the largest known resources of Co-operation and Development (OECD) ment was a significantly updated version effort with the IMF produced a range of lithium in the world. The lithium market is and the IMF. Increasing digitalization across to reflect changes in the legal and regula- modeling tools and policy advice on fiscal growing exponentially because of its impor- industries is testing the fundamental ele- tory framework as well as to increase stake- regimes based on international practices. tance for the global battery industry, which ments and effectiveness of the global tax holder inputs from industry and civil society. However, the COVID-19 crisis slowed the in turn is key for the expansion of electric system—that is, where taxes should be The Peru MSD assessment, carried out from project, significantly delaying the reform vehicles and energy storage from renew- paid and what portion of profits should be April to November 2020, was presented by agenda. The project is due to conclude in ables more broadly. Despite the growing taxed. Despite a notable advancement in the World Bank at the PDAC 2021 conven- June 2022, yet it is unclear if activities can demand, and even though Bolivia identified standard setting and international cooper- tion held in February. The report includes be concluded as planned. lithium as a strategic resource and national ation, vulnerabilities remain and are exacer- a module focused on the transportation of priority in 2008, the country has so far failed minerals, which is of particular concern in Strategic Advice bated by the growing trend of digitalization to become a player on the global lithium in industries across the board. Currently, Peru, illustrating the flexibility of the MSD In July 2017, Tanzania passed several sweep- market. An EGPS grant is financing a review tool. The government of Peru was briefed no research is available on the challenges ing changes to the Mining Act of 2010—the of the current lithium policy and the prepa- on the results and subsequently requested associated with taxing oil and gas activi- legal and regulatory framework that regu- ration of a policy note that will include (a) World Bank assistance in designing a ties in an increasingly digitized world, or on lates the country’s natural resources—in a advice for improving the legal, institutional, national mineral policy (see the highlight the economic impact and administrability bid to garner more benefits from its signif- and regulatory framework, competitiveness, story on Peru) and further analytical work of emerging tax schemes in capacity-con- icant mineral resources and address chal- and sustainability, and for strengthening related to the sustainable use of the coun- strained petroleum producing countries. lenges and discontent in the mining sector. public policy on lithium; and (b) an anal- try’s mineral wealth. EGPS is supporting a global research proj- Supporting regulations were also enacted ysis of alternative paths to advance along ect, Tax Challenges of the Digitalization in 2018 and later amended in 2019. The the value chain and the industrialization 44 EGPS ANNUAL REPORT 2021 Regulation and Institutional Strengthening 45 HIGHLIGHT STORY: HELPING THE PERUVIAN MINING SECTOR TO PROMOTE INCLUSIVE AND EQUITABLE DEVELOPMENT photo credit: 2019 Nakleyka/Shutterstock. The economic reforms of the 1990s helped sustainability and loss of competitiveness previous formal mining operations and of mining projects. Mining investment has reverse Peru’s harsh economic, social, and for attracting investment. almost 60 percent are open pit mines. suffered from a lack of social legitimacy political crisis of the previous decade. Implementing these high-impact projects and acceptance, which is expressed in Currently, the sector faces the challenge Today, the country’s geological potential in new areas will require social acceptance direct actions and protests against mining of creating the necessary conditions to together with its legal security position it by communities and regions. projects in several regions. In some cases, move forward with the development of an among the top countries in the region in despite having all the necessary permits, extensive mining project pipeline within a Promoting exploration, making the projects mining investment, growth, and economic new mining projects could not be devel- context of social legitimacy. The profile of in the pipeline viable, and ensuring the nor- stability. In recent years, however, ques- oped, thereby slowing implementation of the mining investment portfolio requires it: mal operation of current activities require tions have arisen about the sector’s social the pipeline of new investments totaling 90 percent of Peru’s 48 projects totaling strengthening environmental sustainability some $57 billion. $57 billion are located in areas with no and improving the socioeconomic impact 46 EGPS ANNUAL REPORT 2021 Regulation and Institutional Strengthening 47 In recent years, social conflicts have delayed several projects worth US$12 billion. Taking full advantage of the mining sector’s potential for sustainable, inclusive development requires improving the quality of Peru’s mining institutions, regulatory framework, and infrastructure. Additionally, it calls for the creation of an efficient model where the wealth generated by mining activity contributes to the well-being of the inhabitants of mining communities and regions, generating shared prosperity. It was in response to this challenge that the country’s Ministry of Energy and Mines and the Ministry of Economy and Finance requested a Mining Sector Diagnostic (MSD) from the World Bank. This tool provides a comprehensive assessment of current regulations and policies in the mining sector and the gap between policy and practice. It is a systematic, practical assessment that provides data-driven, evidence-based conclusions. It also offers a structured analysis of the perspectives of the three main stakeholders: government, indus- try and civil society. The MSD explains why the current management framework, focused mainly on attracting mining investment, will no longer suffice for the future development of the industry, and above all, of Peru. To reach this conclusion, it carefully analyzes the management and each of the stages of the sector’s value chain, identifying areas that can be improved, both in the regulations and their enforcement. The final section of the MSD outlines a potential change agenda and recommendations for harmonizing competitiveness with sustainability, the goal being to boost national economic development and, especially, territorial development in mining regions. The MSD’s most important recommendation is to design a long-term, concerted national mining policy that provides guidance to regulators and stakeholders and enables construc- tive inter-ministerial coordination for improved competitiveness, sustainability and develop- ment impact. We invite all interested parties to read the report and its recommendations. We hope that it will serve the government administration in the 2021–2026 period and that it will help the Peruvian mining sector promote inclusive, equitable development. Marianne Fay World Bank Director for Bolivia, Chile, Ecuador, and Peru Note: Originally published as the foreword to the Peru MSD report. 48 EGPS ANNUAL REPORT 2021 photo credit: 2019 Nakleyka/Shutterstock. Regulation and Institutional Strengthening 49 COMPONENT 3 LOCAL VALUE AND DIVERSIFICATION Sustainability and resilience of local economies in resource-rich developing countries hinges on structural economic development and diversification at the local and national levels and integration of extractive industries into the local economy. OVERVIEW This component is designed to support the development of sustainable and resilient local economies in resource-rich developing countries by promoting innovation, long-term competitiveness, and regional collaboration. Through this component, EGPS supports countries to create local value and tap opportunities provided by shared infrastructure and green growth. Under Component 3, EGPS supports the following activities: • Strengthening global knowledge and dialogue on local economic development • Providing governments and other stakeholders with knowledge and reform recommendations on relevant topics (such as green growth, clean energy transition, economic diversification, shared infrastructure; women’s participation, and local employment and employability) 50 EGPS ANNUAL REPORT 2021 photo credit: 2016 Polina Petrenko/Shutterstock. Local Value and Diversification 51 Summary of Component 3 Portfolio* Declaration, which committed the region to Water Management in Oil and Gas rapid decarbonization in order to achieve Operations: Industry Practice and Policy • Component 3 comprises 12 grants financing 6 country-specific activities net-zero emissions by 2050 by transitioning Guidelines for Developing Countries and 6 global activities. away from coal. The closure of coal mines • Two new grants for $1 million were approved in FY2021: 1 global activity and in the Western Balkans will require huge The “industrial” sector, including the oil and 1 country-specific activity (Egypt). efforts. Coal mines will need to be decom- gas industry, accounts for 7 percent of global missioned while meeting environmental withdrawal of freshwater. In many countries, • This year, Component 3 accounts for $3.8 million. standards. More importantly, decarboniza- freshwater remains the major source of * Listed activities and budgets refer to both EGPS-1 and EGPS-2. tion will require a complex transformation water for oil and gas operations, and water and major shake-up of current economic produced during oil and gas operations is structures, energy supplies, and sources of dumped on the earth’s surface often with Decarbonization Pathways hydrocarbons sector to a low-carbon future. livelihoods, a process with significant poten- insufficient treatment. If properly treated, for the Oil and Gas Sector This research project intends to inform the tial for social unrest and conflict. produced water from oil and gas operations debate on the extent and prioritization of can serve to create important links in the The oil and gas industry contributes approx- petroleum sector reforms toward a low-car- The EGPS project Decarbonization and local economy. Regulatory approaches for imately 15 percent of overall energy sector bon energy transition. Clean Energy Transition in the Western produced water vary considerably across greenhouse gas emissions. The industry can Balkans Region focuses on enhancing the countries and destination use. therefore make significant contributions to A key contribution of the study will be the capacity of coal-dependent regions in the emissions reduction through decarboniza- creation of an oil and gas sector decar- Western Balkans to plan for a just tran- Because water is not part of a petroleum tion of its core business as well as invest- bonization assessment framework that will sition, one that is good for people and ministry’s (or other relevant government ment in clean energy technologies. Another provide a clear approach toward under- the planet. It builds on lessons learned authority’s) mandate, water treatment and opportunity lies in using oil and gas indus- standing how ready a country is to support in previous projects in Bulgaria, Greece, disposal arrangements data, typically part tries’ unique capabilities, such as large-scale the decarbonization of its oil and gas sec- Herzegovina, Serbia, Ukraine, and Western of the field development plans submitted engineering and project management, cut- tor. The framework will be used to identify Macedonia, as well as long-standing experi- by the operator, are not shared with the ting-edge visualization, measurement and practical steps toward decarbonization of ence from Poland, Romania, and the Russian relevant water authority for analysis and analytical tools, and sizable long-term capi- the sector, including the potential economic Federation, where the World Bank has been policy making. As such, policy makers are tal investment for a greener economy. and social impacts. It will also identify advising on solutions for decarbonization. rarely aware of the challenges and opportu- potential vulnerabilities and help countries nities associated with water produced in oil For the sector to actualize this potential, prioritize potential areas of focus, measure The project is building an evidence base and gas operations, even in water-stressed well-designed policies from governments their progress, and facilitate discussions for decarbonization by assessing the coal regions. Yet access to such data is required (such as carbon pricing and taxation) are with stakeholders on their respective roles sector, the current plans for decommission- to prioritize policy and regulatory solutions necessary to promote research, develop- and responsibilities. ing, the socioeconomic impact of coal mine as well as to identify cost-effective solutions. ment, and large-scale deployment of the closures, and constraints to the transition. relevant technologies and infrastructure, Decarbonization and Clean Energy In addition, the team is investigating how A new EGPS grant will finance the review of which in turn will require the identification Transition in the Western Balkans natural gas can help with the energy transi- industry practice and public policy regard- of a clear transition path for industry to nav- tion. This research and accompanying focus ing freshwater abstraction and the manage- Coal is the dominant source of energy in the ment of produced water, with the objective igate. EGPS is supporting a research project group discussions will help highlight the pri- Western Balkans, providing around 70 per- to identify policy and regulatory options to identify opportunities and strategies to orities and prerequisites needed to ensure a cent of all electricity in the region. In 2020, for the management of water in oil and gas facilitate and accelerate the transition of the just transition in the Western Balkans. the Western Balkans leaders issued the Sofia upstream operations. 52 EGPS ANNUAL REPORT 2021 Local Value and Diversification 53 HIGHLIGHT STORY EXTRACTIVES-LED LOCAL ECONOMIC DIVERSIFICATION KNOWLEDGE PROGRAM Extractives-led local economic diversification (ELLED) is a complex and rapidly evolving policy area. Extractive policies and regulations differ widely among countries, and at times between oil and gas and mining in the same country. For ELLED policies to achieve their potential, there needs to be a common understanding, shared value, and collaboration among stakeholders. EGPS funds an ELLED knowledge program to support innovative thinking and partnership approaches for the design and implementation of sustainable development policies and projects. The program helps address knowledge gaps in countries’ policies and regulations photo credit: 2018 Peruphotart/Shutterstock to improve policy design and implementation and increase awareness; it has provided a platform for knowledge creation and sharing and enabled sustained professional learning. This is done through selected research targeting knowledge gaps through the ELLED inter- Since 2020, the ELLED CoP online forum is jointly administered and financed by EGPS and active framework (delivered FY2020), outreach and advocacy, workshops and training Engineers Without Borders Canada and relies on the voluntary contribution of time and programs, and establishment of the ELLED community of practice (CoP) to support the knowledge of its members. development of strategic partnerships. The online ELLED CoP connects policy makers, companies, practitioners, and other stake- Member Testimonials holders and supports continuous professional learning. It continues to rank very highly The CoP is a valuable source of research and information on the latest research and among the World Bank’s communities of practice, with a strong and growing member base thinking in the sustainable economic development space.  The network of experts as well and a large body of knowledge on extractives policies. as upcoming events and discussions provide busy practitioners the opportunity to learn and stay current on external trends.  It’s an extremely useful platform! At the end of May 2021, the CoP had 500 members (a 15.7 percent increase from May 2020). Members’ engagement rates are strong: The monthly newsletter’s open rate stands —Kathy Khuu, Senior Adviser, Economic Development and Local Content, Government far above the sector average at 40.4 percent (versus 24.1 percent for nonprofit sector world- Relations, Shell International B.V. wide, and 26.5 percent for the government sector worldwide) and it has a click rate of 6.8 percent (versus 2.6 percent for the nonprofit sector worldwide, and 3.6 percent for the gov- The ELLED community of practice helped me a lot in my work on local content with its ernment sector worldwide). The annual member satisfaction survey shows that 88.9 percent huge variety of related articles and papers. To see how many different other colleagues are of respondents find the ELLED CoP features useful and relevant to their work, with 66.7 working on this issue within the community is fascinating. percent classifying it as very useful; 87.5 percent would recommend the CoP to a colleague or friend, and 55 percent post on the CoP at least once a month. —Thomas Grupp, Research Associate, Extractives and Development BGR, German Federal Institute for Geosciences and Natural Resources  54 EGPS ANNUAL REPORT 2021 Local Value and Diversification 55 COMPONENT 4 LOCAL COMMUNITIES AND ECOSYSTEMS Mitigating environmental and social impact and strength- ening community benefits from extractive industries includes mitigating socioeconomic impacts of coal mine closure in coal regions, supporting ASM communities affected by the COVID-19 pandemic and broad engage- ment to close the gender gap in extractive industries. OVERVIEW EGPS engages in consolidating community benefits from extractive industries as well as developing work- able solutions and remedies to mitigate their adverse effects. These activities include advocacy leveraging the World Bank’s convening power to close the gen- der gap in extractive industries, policy advice on the national level, baseline studies and road maps in regions of coal transition, and direct support to communities for help in securing their livelihoods and better coping with COVID-19–related adverse impacts. 56 EGPS ANNUAL REPORT 2021 photo credit: 2018 Peruphotart/Shutterstock Local Communities and Ecosystems 57 Summary of Component 4 Portfolio* conference, “Rethinking ASM Formalization: The report was released with two 60-min- How COVID-19’s Disruption Can Be ute regional virtual events cohosted with • As of June 30, 2021, the Component 4 portfolio accounted for $13.1 million Catalyzed for Development.” regional partners: the University of Surrey PLA total financing in allocation, with $7.2 million allocated in FY2021. Y VI D E O cohosted the Africa, Americas, Europe The survey and its findings also laid the • Ten new grants were allocated to Component 4 in FY2021 (3 country- Regional Launch Event, and the Sustainable analytic foundation for the design and specific and 7 global). Minerals Institute at The University of (ongoing) delivery of the EGPS COVID-19 Queensland co-hosted the Asia, Australia, * Listed activities and budgets refer to both EGPS-1 and EGPS-2. emergency response facility for ASM min- Pacific Regional Launch Event. A summary ers and their communities. The emergency of the key findings were shared in a press response provided short-term assistance to release, “Better Working Conditions Can a range of international, regional, national, Improve Safety and Productivity of Artisanal and local organizations focusing on areas Under this component, EGPS gener- ASM data, to help policy makers and prac- and Small-Scale Miners Around the World.” such as knowledge on COVID-19 and its ates global knowledge and innovative titioners take an informed approach to the prevention, access to work, food security, Closing the Gender Gap in Extractives approaches, disseminates best practices, sector. The Delve platform has continued to human security, and supply chains. and explores topical policy themes such as successfully operate over the past year, with Gender gaps in asset ownership, labor, live- the following: its crowning achievement being the prom- Through the Delve lihoods, social norms, legislation, and deci- 2020 State of the inent role it played in coordinating infor- Artisanal and Small-Scale Mining Sector platform, EGPS has sion-making mean that men and women are • Artisanal and small-scale mining mation sharing on COVID responses in the committed to pro- affected by extractive industries’ activities • Gender inequality in the extractives ASM sector. Delve established a dedicated ducing an annual in different ways. Through its Closing the sector website to share resources on COVID and to State of the ASM Gender Gap in Extractives Project, EGPS • Clean energy transition and coal mine host a bi-weekly call that served as a critical Sector report that sponsors and organizes the Global Gender closure forum for information sharing among part- highlights the sec- in Oil, Gas, and Mining Conference every A GLOBAL PLATFORM FOR ARTISANAL & SMALL SCALE MINING DATA ner institutions, which further positioned tor’s contribution to two years. The event brings together stake- • Climate-smart mining Delve as the global go-to for information on the Sustainable holders to share and build knowledge on • Artisanal and small-scale mining the sector. Development Goals (SDGs) by focusing on actions that can reduce the gender gaps in Artisanal and small-scale mining provides a critical sector theme/SDG link. The 2020 the extractives sector. This year, the project As the COVID-19 crisis unfolded, EGPS a livelihood for an estimated 100 million report focuses on the ASM link to SDG 8 team brought in the IDB as cosponsor and made a grant available to collect firsthand people in more than 80 developing coun- (promote sustained, inclusive and sustain- organizer, which opened the conference to information on the impacts of the pandemic tries in Africa, Latin America, and the Asia- able economic growth, full and productive Latin American audiences and provided a on select ASM communities. The Delve plat- Pacific region. EGPS support provides employment and decent work for all). strong regional dimension. form was instrumental in the quick data col- leverage to create positive impact and lection through a survey that involved 17 improve gender equality, protect the envi- partners across 22 countries. ronment, and address broader social issues related to ASM. The findings were published on the Delve platform; summarized in a short video, Delve Platform “Tackling the Impacts of the COVID- EGPS financed the development of the 19 Crisis on Artisanal and Small-Scale Delve platform, the first global database for Mining Communities”; and discussed at a PLA Y VI D E O 58 EGPS ANNUAL REPORT 2021 59 photo credit: 2016 Adwo/Shutterstock QUOTES: In addition to the conference, the proj- The discussions highlighted the impor- The first conference was a game changer for ect team completed a piece of research tance of creating an enabling environment me. My team and I will stop at nothing until on the status of Women in Mining organiza- for women to thrive. They emphasized how all the companies operating in Cameroon give tions that will serve as the basis for a global technology, accompanied by education, can us equal access to these platforms. Imagine capacity-building program. be a lever to enhance the greater partici- being trained as a well site geologist and you pation of women in the sector. The confer- are expected to just do administrative work Getting to Equal in Oil, Gas, and Mining ence also discussed the progress made by behind the desk. It was a perfect timing as I Unprecedented digital disruption and auto- various stakeholders since the First Global am attending this second conference from mation is reshaping the opportunities avail- Gender in Oil, Gas, and Mining Conference, offshore, with my work vest on, just to show able to men and women working in the held in Washington, D.C., in June 2018. everyone how far we’ve come. global oil and gas and mining sectors. The At the conference, the World Bank’s Energy economic fallout from the COVID-19 pan- —Yijofmen Fienmaih Jane, and Extractives Unit committed to building demic has stalled progress on women’s Chief of Service, Hydrocarbon the organizational capacity of women in participation in the sector, with gendered Exploitation, Ministry of Mines, extractive industries and to improving gen- impacts on job loss, income reduction, and Industry and Technological der-related data on oil, gas, and mining. transition education. How to navigate this Development (MINMIDT), rapidly changing landscape influenced the Mine Closure Cameroon, on being inspired to theme of the Second Global Gender in Oil, lobby for accommodation for Orphaned, abandoned, and closing mines Gas, and Mining Conference, “Getting to women on the oil rigs have proved to be among the most intracta- Equal in a Changing World,” organized by in Cameroon ble issues facing the mining sector globally. EGPS and the IDB. Environmental and social challenges related Promoting gender equality in the extractives The objective of the conference, held virtu- to mine closure and decommissioning can industries is not only the right thing to do, ally on March 3–4, 2021, was to share and affect entire regions, not only the countries it also makes for a strong business case. build greater knowledge among govern- in which it is happening. Insufficient regu- Addressing gender equality cannot wait. Not ments, academia, industry, and civil soci- lation and poor practices in the past have even for a pandemic. ety on actions that could enhance gender put the financial burden of the cleanup equality in oil, gas, and mining. The 800- on today’s governments, while the social —Sandie Okoro, plus attendees discussed a number of impacts of economic transformation can Senior Vice President and issues, including the following: Where does mark mining regions for generations. Mine General Counsel, gender equality fit into a rapidly shifting closure and its challenges are gaining addi- World Bank, global oil, gas, and mining landscape? What tional gravity, as transitioning away from at the opening of impacts are the global crisis and recession coal is increasingly considered a corner- the conference having on progress toward gender parity? stone of climate change action. What needs to be done to improve women’s EGPS supports both the GOXI Regional economic opportunities in the oil and gas Platform for Coal Regions in Western Balkans and mining sectors? and Ukraine and the Decarbonization and Clean Energy Transition in the Western 60 EGPS ANNUAL REPORT 2021 Local Communities and Ecosystems 61 Balkans Region Project. As part of these brought together representatives from coal OPINION: To Achieve Decent Work, We Must Improve the projects, the World Bank cofounded the regions of the Western Balkans and Ukraine Health and Safety of ‘Hidden’ Artisanal Miners Platform Initiative for Coal Regions in to share experiences, best practices, and Western Balkans and Ukraine, created in lessons learned on the energy transition. By Demetrios Papathanasiou, Global Director, Energy and Extractives Global Practice, World September 2019. This initiative assists coal Bank, and Kurt MacLeod, Senior Vice President, Programs, Pact Gendered impact of energy transition is an regions in developing and implementing issue that was often raised but was rarely Each day an estimated 45 million artisanal and small-scale miners worldwide go to work comprehensive policies that enable inclusive thoroughly examined before the launch of in difficult and dangerous conditions. Working almost exclusively in the informal economy, strategies for transitioning to low-carbon an EGPS-funded study, the Gender Impact these women, men and sometimes children, are the world’s hidden workforce, mining the energy systems. It was established based on on Energy Transition in Coal Regions Global minerals and metals used to produce everything from electronics to luxury jewelry. the Western Balkan countries’ commitment Knowledge Project. The study's report, to clean energy transition expressed in the Artisanal and small-scale mining produces approximately 12–24% of the world’s cobalt used which is nearly complete, will provide a com- Podgorica Joint Statement of February 21, in electric vehicle batteries, 20% of the world’s gold and 25% of tin and 26% of tantalum prehensive overview of the issues related 2019, and Ukraine’s 2050 Low Emission (found in smartphones and laptops). Despite its importance, there is very limited data on to gender, coal, and energy transition. It is Development Strategy of November 2017. ASM and little attention—if any—is given to improving miners’ occupational health and expected to generate practical tools and The project virtually launched the initia- safety (OHS). frameworks for task teams when approach- tive on December 10–11, 2020. The event ing gender issues in energy transition. Although there is an assumption that ASM is inherently unsafe, we need to better under- stand the causes and size of the OHS issue while identifying practical solutions that miners can implement themselves. Building such an evidence base would help galvanize policy makers and the global com- munity to act. It would also demonstrate how improving occupational health and safety in artisanal mining is essential to achieving the United Nations’ Sustainable Development Goal 8: sustained, inclusive and sustainable economic growth, full and productive employment, and decent work for all. The 2020 State of the ASM Sector Report, published by Delve, a global platform for ASM data developed by the World Bank and the Washington-based international development nonprofit Pact, has started to plug this gap. The report finds that the ASM sector had the same fatality rate in 1999 as large-scale coal mining in the United States and gold mining in South Africa had in the 1970s and 1980s, respectively. Applied to today’s global employ- ment estimate of 45 million artisanal miners, this 1999 fatality rate would equal approxi- mately 30,000 deaths annually—a sobering figure and one we must improve. In contrast, the fatality rates in large-scale mining today are close to zero. In U.S. coal min- ing, for example, the establishment of the Department of Labor’s Mine Safety & Health Administration in 1977, which now has annual budget of $376 million, has helped reduce the fatality frequency rate by over six times. This improvement in the safety of large-scale min- ing over the past 40–50 years shows what is possible with concerted efforts and dedicated resources. It raises the prospect of whether similar results could also be achieved in ASM. 62 EGPS ANNUAL REPORT 2021 photo credit: 2020 MagioreStock/Shutterstock Local Communities and Ecosystems 63 Several case studies illustrate the opportunities, especially when the economic returns of improving mine safety are made clear to miners and mine owners. In Rwanda, installing low-cost winches to transport ore up steep, unstable ravines to mineral processing sites reduced the risk of injury from carrying these materials. This simple “fix” improves working conditions and frees up more miners to extract ore, increasing productiv- ity without lost livelihoods. In the Democratic Republic of Congo, the ASM cooperative at the Mutoshi cobalt pilot could safely mine and process cobalt above ground once machinery was used to remove the top layers of soil and rock. Miners also received protective equipment and free onsite healthcare to treat illnesses such as malaria and diarrhea. The result was a safer and healthier work- force where miners reported better working conditions. Indeed, the cooperative reported a record 6 million work hours without a fatality during the pilot. We have a collective responsibility to ensure that the world’s hidden mining workforce, sup- plying the materials we use in our daily lives, enjoy safe and productive working conditions. There are examples that are well underway to improve OHS in ASM. However, we need more data to understand the challenges, more collaboration to identify appropriate solutions and more financing to achieve SDG8 within this highly informal and often invisible sector. Note: This opinion piece was originally published by the Thomson Reuters Foundation. 64 EGPS ANNUAL REPORT 2021 photo credit: 2020 Lucian Coman/Shutterstock Local Communities and Ecosystems 65 ASSOCIATED TRUST In FY2021, the initiative raised awareness of and to unlock opportunities for women and the role of minerals and metals in achieving points of entry for concrete actions across a low-carbon future, and it highlighted the the building blocks of the initiative.   important role that developing countries FUND—CLIMATE Draft guidelines on forest-smart mining for will have in enabling this transition and ben- the use of carbon financing by the mining efiting from it, as well as the challenges that sector were published in February 2021, may emerge if the clean energy transition with the final forest-smart mining toolkit to SMART MINING is not managed responsibly and sustainably. be finalized in November 2021. The objec- In addition to successful advocacy and rais- tive of this activity is to identify and pro- ing awareness, this active engagement on mote policies and practices that incentivize CSM includes completed reports and con- the mining industry and its investors to tinuing work on toolkits and road maps, finance nature-based climate solutions. among other analytical and operational/ CLIMATE-SMART country-specific results.  An analytical piece composed of three parts is also being finalized on the oppor- This fiscal year, the initiative focused on road MINING: MINERALS tunities for decarbonizing aluminum for maps for Chile and Indonesia. As part of a solar PV, consisting of a main report on lithium-ion battery recycling project aim- FOR CLIMATE ACTION global aluminum supply chains and two ing to showcase how developing countries case studies on bauxite mining and refin- can be provided with tools and capacity ing in Brazil and Guinea. The purpose of to make use of a second-life global battery The World Bank launched the Climate-Smart Mining the grant is to develop a cost analysis tool market, the report Reuse and Recycling: (CSM) Initiative in May 2019 to make mining for minerals for producing green aluminum and to iden- Environmental Sustainability of Lithium-Ion climate smart and sustainable. The initiative supports the tify opportunities for implementing CSM Battery Energy Storage Systems was pub- sustainable extraction and processing of minerals and practices more broadly in the global alumi- lished in August 2020 in partnership with metals used in clean energy technologies such as wind, num supply chain. Delivery is estimated for the Energy Storage Partnership (ESP). The solar power, and batteries for energy storage and elec- December 2021. team is also developing, in partnership with tric vehicles. It focuses on helping resource-rich devel- the Global Battery Alliance, a follow-up pro- Research and building of a Lithium Carbon oping countries benefit from the increasing demand for gram focusing on concrete opportunities Footprint Dashboard is also under way to minerals and metals while ensuring the mining sector is for reuse and recycling in Africa.   provide a platform to measure lithium’s managed in a way that minimizes its environmental and carbon dioxide emissions from mine to end climate footprints. In June 2021, the initiative, in collaboration use throughout the entire mineral value with the International Finance Corporation The first phase of the Climate-Smart Mining Initiative chain. The dashboard was soft launched at (IFC), published The Business Case for was funded under EGPS in 2016; a second phase started the World Bank’s annual Innovate4Climate Gender-Responsive Climate-Smart Mining. in 2017. With the trust fund reform and the creation of Event in May 2021, where it was introduced This toolkit consists of a series of instru- the Umbrella trust funds, the World Bank launched the by Demetrios Papathanasiou, global direc- ments to help understand the business case Climate-Smart Mining Initiative as a separate component tor for the Energy and Extractives Global and the roles and responsibilities of vari- under the EGPS Umbrella in November 2019, with activ- Practice. ous stakeholders in addressing challenges, ities contributing to Components 2 and 4 of the EGPS results framework. 66 EGPS ANNUAL REPORT 2021 photo credit: 2011 MarcelClemens/Shutterstock ASSOCIATED TRUST FUND-CLIMATE SMART MINING 67 In terms of outreach, CSM presented 20 panels during FY2021 to promote and inform stakeholders of the initiative as well as to continue dissemination and outreach around a new report, Minerals for Climate Action: The Mineral Intensity of the Clean Energy Transition, published in May 2020. Included in these events were the CSO roundtable hosted by CSM and IFC (October 2020) and participation in the European Union’s Raw Materials Dialogue (November 2020) and in the flagship Minerals Council Australia Minerals Week (June 2021). In addition, a joint World Bank–IFC work- shop on implementing CSM practices in Africa was held in FY2021 during Energy Indaba 2020. 68 EGPS ANNUAL REPORT 2021 credit: 2021 Evgeny_V/Shutterstock. photo ASSOCIATED TRUST FUND-CLIMATE SMART MINING 69 HIGHLIGHT STORY minerals and metals. While over 3 billion tons of metals and minerals will be needed by 2050 to scale up wind, solar and geothermal power and energy storage to reach a below 2°C future, the exact amount will vary, according to what the energy transition looks like. THE NEW KIDS ON THE BLOCK: In other words, how much is needed of any given mineral will depend on how widely that mineral is used, across renewable energy technologies. REDEFINING ‘CRITICAL’ MINERALS While some minerals, like copper and molybdenum, will be used in a range of technologies, ESSENTIAL FOR A others, such as graphite and lithium, may be needed for just one technology: battery stor- age. This means that any changes in clean energy technology deployments could have sig- CLEAN ENERGY FUTURE nificant consequences on demand for certain minerals. While we cannot fully predict the future, we can gain some insight into who the new (min- By Christopher Sheldon, Practice Manager, Energy and Extractives Global Practice, eral) kids on the block will be, by 2050. Based upon what we call the demand risk matrix, World Bank we know that aluminum, copper and nickel are “critical” minerals that will play a strong As the world battles the coronavirus (COVID-19) pandemic, and mine sites across the world role in the transition to a low-carbon future, as they will be needed for a wide variety of delay or suspend operations, we are reminded of Matshona Dhliwayo’s quote: “stars are technologies. born out of dark moments.” While the price of most so-called “critical minerals” may be Graphite and lithium are also “critical,” but their outlook depends on the extent to which down now, demand for these minerals will rise again, and certainly well before 2050. Indeed, battery storage is deployed between now and 2050. the World Bank Group’s latest report has found that the more ambitious the climate targets become, the more minerals and metals will be needed for a low-carbon future. • Minerals that are both “high-impact” and “cross-cutting” will be used in a wide range of technologies and a great amount of them will be required to meet projected demand In a first of its kind analysis, the World Bank Group examined how differing “pathways” in a low-carbon world. One example is aluminum: it is used widely for both energy gen- for the deployment of clean energy technologies will impact the demand for a variety of eration and storage technologies, with roughly 103 million tons of aluminum needed 70 EGPS ANNUAL REPORT 2021 ASSOCIATED TRUST FUND-CLIMATE SMART MINING 71 APPENDIX A | COMPLETED, to supply 87% of solar PV and a range of other clean energy technologies to achieve a below 2°C future. Aluminum is thus a “critical” mineral because it will be necessary for NEW, AND ONGOING ACTIVITIES, the clean energy transition, regardless of scenario plays out. • Minerals that are “cross-cutting” will be important because they will be used across FY2021 a wide variety of technologies. One example is copper: it is used across all 10 energy technologies—so regardless of the low-carbon “pathway,” it is likely to be relevant in 2050. It also means that the clean energy transition will depend very much on the avail- ability of copper itself. All World Bank projects, whether financed by a loan, credit, or grant made by the Bank from • “High-impact” minerals only feature in a small number of technologies, but their future its own resources or trust funds funded by donors, are referenced by a project identification demand is significantly greater than today. One example is lithium, which will only be number (project ID), and identified with the letter P, followed by a unique number (P#). The used in energy storage, but must ramp up its production by 488% to meet demand. project ID (numeric code) is used to generate the coding structure for recording costs and Cobalt and graphite fall in the same category. commitments for corporate reporting and is generated when projects are approved through the Bank’s systems. A project ID may be associated with more than one loan, credit, or grant. • “Medium-impact” minerals, such as neodymium and silver, will be needed for a small range of energy technologies, and their demand is not expected to grow significantly Financing/funds for the proposals approved by the Partnership Council from the EGPS between now and 2050. However, neodymium is a key ingredient for offshore wind Program are provided as “grants” (without repayment obligations). Each grant is linked to a turbines.  project ID; in some cases, more than one grant is linked to the same project, depending on the overall development objective and activities. The good news is that regardless of the future clean energy pathway, developing coun- tries, from Guinea to Madagascar to Peru to Zambia, have a real opportunity to benefit from A grant provided to an external recipient is termed a recipient-executed grant (RETF) and a the rise in demand for critical minerals. However, they will also have to manage a range of grant made available to the Bank for implementation of specific project activities is a Bank- risks and challenges associated with increased mining activities. Without climate-smart min- executed grant (BETF). A country-specific grant finances activity in one country; a global ing practices, the negative impacts from mining activities will increase, affecting vulnerable grant finances activity in more than one country or in more than one region. communities and the environment and potentially endangering progress on tackling climate change. If unchecked, the volume of mining over such a short time frame (between 2020 and 2050) would increase global emissions, water use, deforestation, and waste. Mineral-rich countries will also need to plan for a range of so-called “pathways” and play close attention to how the nature of the clean energy transition will shape future demand. The World Bank is committed to helping countries to manage the clean energy transition. Our support will include implementing climate-smart mining practices and minimizing asso- ciated social, environmental, and climate footprints. With our partners, the World Bank wants to build a world where governments and companies use renewable energy to power mines, recycle minerals, and leverage innovation to reduce the industry’s footprint. Together with the full range of actors in the supply chain, from extraction at the mine site to end use by the consumer, we can accelerate this transition in a sustainable and responsible way, that pro- tects both people and the planet and fosters growth and development. 72 EGPS ANNUAL REPORT 2021 Appendix A | Completed, New, and Ongoing Activities, FY2021 73 Indonesia: Citizen Monitoring for Transparency and Accountability • Organized an MSF on improving mining licensing governance at the provincial level, a public dis- of Licensing and Revenue Management in the Mining Sector cussion on revenue management at the national level, and a discussion on the mainstreaming of COMPONENT 1 Project ID: P163797 EITI principles in the government’s policy and implementation process. REVENUE • In consultation with the Bank’s country external communications team, newsletters, media brief- Total Budget: $475,000 TRANSPARENCY ings, and other communications products (infographics and video graphics) were designed and disseminated, as part of the Extractives transparency and accountability campaign of the project. EGPS Grant #: TF0B3137 Effective: November 2020; Closing: March 2022; Status: Ongoing Context Decentralization of the mineral licensing process was intended to empower citizens to hold their local government accountable for how mineral resources are managed and how revenues are used. Bringing decision-making on mineral resource exploitation closer to communities was a measure adopted to ensure that mining policies reflect local needs and priorities. However, in practice, citizens, and gov- ernment authorities at the subnational level to some extent, face numerous constraints that limit their ability to effectively promote and manage mineral resources. Mechanisms for ensuring public oversight and accountability in the mining sector remain underdeveloped relative to other sectors. A weak gov- ernance system is prone to create productive and allocative inefficiencies, negative externalities on surrounding communities, and opportunities for rent-seeking and tax avoidance. The project development objective is to contribute to improving the management and governance in the mining sector at the subnational level in select provinces in Indonesia through collaborative social accountability mechanisms. Approach The proposed operation will take a problem-driven approach to address key governance challenges in the mining sector at the subnational level. The project will be measured by (a) the percentage of problems in the licensing systems identified and followed up through the project’s multi-stakeholder forums (MSFs) and (b) the percentage of problems in revenue management identified and followed up through the project’s MSFs. Results To date, the project has achieved the following according to its workplan: • The implementing partner and local coalitions have facilitated a series of community discus- sions in three provinces (Aceh, East Kalimantan, and Southeast Sulawesi) to conduct stake- holder mapping, raise community awareness, and strengthen their capacity on varied topics such as participatory monitoring, mining revenue, and so on. The scoping study on mining licens- ing has been completed. It involved a series of focus group discussions with key stakeholders, including national and local governments, the private sector, civil society, and mining-impacted communities. 74 EGPS ANNUAL REPORT 2021 Appendix A | Completed, New, and Ongoing Activities, FY2021 75 Kyrgyz Republic: Kyrgyzstan Extractive Industries Transparency Initiative (KEITI) Implementation Challenges Implementation Support The Kyrgyz Republic has seen several major changes recently: A new president was elected in January Project ID: P175829 2021; a constitutional referendum was held in April 2021; the government was restructured in May 2021; and parliamentary elections are expected in November 2021. The country has faced political instability Total Budget: $300,000 since October 2021. EGPS Grant #: TF0B4680 In addition, the January 2021 presidential decree calling for a mining code (to replace the Subsoil Law, Effective: December 2020; Closing: December 2021; Status: Ongoing which is not mining specific) included a directive not to allow foreign investment in the future develop- ment of nationally significant mines. The government took control of the largest gold mine in May 2021 after alleging that Centerra Gold Inc. failed to comply with local environmental laws. Context Results The Kyrgyz Republic extractives sector contributes close to 10 percent of gross domestic product The project team focused on research and analysis, promoting stakeholder dialogue, and partnering (GDP), over half of industrial output, and nearly 40 percent of export earnings (KEITI Report 2015–2017). with civil society and businesses. The team consulted with civil society and businesses through the Nearly 10 percent of the formal workforce is engaged in mining and hydrocarbon sectors. The Kumtor MSD workshops and designed assignments to address their demands. The first direct meeting with gold mine alone contributed 9.7 percent of GDP (2017), but it is mature and likely to close as soon as the government happened in August 2021. The team is making progress to contract out the remaining 2026. Therefore, the government wishes to mobilize investment in new mines and has begun to identify work. The project team plans to deliver a first draft of the MSD report by the end of October 2021. key reforms that will result in not only new investment but also stronger performance by operators and regulators so that the public enjoys the full benefits of mining sector development. Reforms include the Kyrgyzstan Extractive Industries Transparency Initiative (KEITI) launched in 2014. KEITI was estab- lished under the State Committee on Industry, Energy and Subsoil Use (SCIESU), which is responsible for collecting extractive industries data for disclosure in accordance with the 2018 Subsoil Law. KEITI implementation has been impeded by insufficient funding from the state budget and external sources. This has been a function of limited fiscal space and political instability, exacerbated in 2021 by COVID-19–related economic impacts and restrictions. KEITI nonetheless underwent the second valida- tion, beginning in late 2019, which resulted in the EITI International Board lifting the Kyrgyz Republic from suspension on September 29, 2021, because of “meaningful progress” in implementing the 2016 EITI Standard. KEITI will have 18 months to take corrective actions before undertaking the third vali- dation to achieve full compliance (“satisfactory progress”). SCIESU requested World Bank support to achieve full KEITI compliance at the next validation implementation. The project objective is to provide financial sustainability to underpin implementation of the KEITI work plan in accordance with the 2019 EITI Standard. Approach The grant finances the sharing of international best practices, generating expert policy analysis, and fostering stakeholder dialogue to underpin reforms in the governance of the extractives sector. The scope of work covers several aspects of governance, including efficient and nondiscriminatory licens- ing, effective regulation to high operational and environmental, social, and governance standards, and suitable benefit-sharing arrangements at both national and subnational levels. KEITI consultations at the subnational level will ensure increased female participation. To contribute to the policy dialogue across these issues, the grant will finance a Mining Sector Diagnostic (MSD). There will be a special focus on activities that contribute to the country’s compliance with the EITI. 76 EGPS ANNUAL REPORT 2021 Appendix A | Completed, New, and Ongoing Activities, FY2021 77 Nigeria: NEITI Reporting Compliance the direct purchase–direct sale arrangement. At the same time, the NNPC also began publishing its monthly ­submissions to the Federation Account Allocation Committee. These submissions contain, Project ID: P162344 others, oil and gas revenue transfers to the Federation Account and gasoline subsidy amounts among ­ Total Budget: $875,000 deducted (falling under quasi-fiscal expenditures). These two sets of data series mark significant steps in realizing the EITI’s long-term goal of timely online disclosure of data related to the upstream oil and EGPS Grant #: Effective Closing Status gas sector. Importantly, NEITI is no longer the only main institution collecting and publishing disaggre- TF0A4025 December 2016 April 2020 Closed gated data. The NNPC is now playing a very important role. TF0A6634 May 2018 April 2022 Ongoing NEITI completed the annual report for the oil and gas sector covering 2019 by January 2021. However, the five-year term of the national multi-stakeholder working group ended soon thereafter and the new working group, whom the president of Nigeria appoints, was not reconstituted until July 2021. As Context a result, NEITI sought permission from the EITI International Secretariat to publish the annual report without clearance from the multi-stakeholder working group. The waiver authorization was granted Nigeria is Africa’s largest oil exporter and has the largest natural gas reserves on the continent, yet subject to an independent verification by various stakeholders, and the annual report was published in almost 83 million people—or 40 percent of its population—lived below the poverty line in 2019, accord- June 2021. ing to the National Bureau of Statistics. For decades, Nigeria’s oil sector was opaque and synonymous with corruption. The government’s concern about the revenue flows through the sector led Nigeria to become one of the first oil-producing developing countries to engage with the EITI and, equally important, enact the Nigeria EITI Act in 2007, thereby creating a law devoted to improving transpar- ency, accountability, and good governance through EITI implementation. For many years, the Nigeria Extractive Industries Transparency Initiative (NEITI) was the only source of disaggregated information about revenue flows through the oil and gas sector, and the information provided was invaluable to government institutions and civil society alike. For a variety of reasons, however, report publication had been delayed by years, in part because NEITI was single-handedly responsible for publication of all and any data on oil and gas revenue flows to the three tiers of the government. The objective of this activity is to assist Nigeria in meeting the EITI requirement for data timeliness so that information can be shared with the public in a timelier manner. Approach NEITI contracted a firm to act as the independent administrator and to undertake work needed to move to e-reporting. NEITI engages with other stakeholders to encourage them to publish information about the oil and gas sector. Results An important development is the launch of a new data series by Nigeria’s national oil company, the Nigerian National Petroleum Corporation (NNPC), entitled “EITI Support (Open Data),” which is reg- ularly updated with Excel files. In January 2021, the NNPC began posting Excel files containing data on its external website. The data coverage is comprehensive, covering oil production, oil lifting, gas production, gas use breakdown (power generation, industrial use, petrochemicals, exported, flared, re-injected, natural gas liquid extraction, and so on), royalties paid, taxes paid, gasoline imports (disaggregated into each shipment with the shipper’s and vessel names, dates of the bill of lading and laycan, Platts quotation, premium or discount applied, and volume), and crude oil sold under 78 EGPS ANNUAL REPORT 2021 Appendix A | Completed, New, and Ongoing Activities, FY2021 79 Zimbabwe: Supporting EITI Scoping and Potential Implementation in Zimbabwe • Identifying roadblocks and building understanding among policy makers about improving the investment climate in the mining sector Project ID: P170557 • Conducting analytical work on various transparency initiatives in the mining sector, including EITI Total Budget: $335,408 together with their legal, institutional, and participatory requirements and the implications for Zimbabwe EGPS Grant # Effective Closing Status TF0B2777 April 2020 June 2021 Closed • Capacity building of stakeholders and supporting cross-government collaborative processes to TF0B5832 July 2021 March 2022 Ongoing improve governance to promote investment and lower country risk perceptions • Supporting intra-government processes that ensure further disclosures can be met by the cadas- tre information and mining revenues data systems Results Context This project only began in May 2020, but engagement with relevant parties and groups is under way It is indisputable that the extractive industries will play a vital role if the World Bank is to achieve its twin and additional steps will soon be forthcoming. objectives of poverty reduction and promoting inclusive growth in the years to come. At the same time, it is evident that the oil, gas, and mining industries failed to deliver the “development dividend” that Flight and travel restrictions related to the COVID-19 pandemic have complicated engagement with the many observers expected at the height of the commodity “super-cycle” about 10 years ago. Countries government and stakeholders. with little or no history of oil, gas, and mining operations saw an influx of investors. However, the bull- ish investment projections made at the peak of the investment boom have fallen short of projections in most developing countries because commitments failed to materialize. This abrupt downturn was explained by a slump in commodity prices combined with a sharp swing in investor preferences toward traditional investment destinations in countries with more firmly established extractive industries. Additionally, even where investment did benefit host countries, revenue from tax and nontax sources was lower than expected. Job creation and local economic links have also failed to deliver the eco- nomic returns that national decision-makers and local communities expected. In sum, several resource- rich nations have yet to capitalize on their resource endowments. Although parts of the unrealized development dividend can be explained by the cyclical downturn of commodity prices, it is evident that shortcomings in sector governance have also contributed to these less than desired results. It is in this context that several development partners have mobilized funding through the EGPS Trust Fund, administered by the World Bank, to facilitate advisory services and dissemination of good prac- tices toward improved sector governance in resource-rich nations. Project development objective: To empower governments to develop evidence-based and sound sec- tor policies, regulation, and management processes to promote transparency, accountability, and job creation in the extractive industries. Approach It is proposed that the Bank-executed advisory activities be delivered through a programmatic Advisory Services and Analytics (ASA) activity to simplify processing requirements and facilitate responses to urgent situations and demands. The program will promote transparency and accountability. Activities to be financed include the following: 80 EGPS ANNUAL REPORT 2021 Appendix A | Completed, New, and Ongoing Activities, FY2021 81 Armenia: Extractive Industries Transparency Initiative (EITI) Support working groups was completed only after more than six months. Currently, however, the MSG works harmoniously, and it not only serves the EITI mission but also is involved in other state-level discussions. Project ID: P166274 Implementation Challenges Total Budget: $850,000 Frequent changes in the government have required multiple changes of membership in the MSG, cre- EGPS Grant # Effective Closing Status ating delays. However, the MSG alternate representatives from each constituency are now actively TF0A6768 April 2018 July 2021 Ongoing involved, minimizing the impacts of political changes. TF0B4808 June 2021 March 2024 Ongoing Results Despite the overall challenges in 2021, including the COVID-19 pandemic and conflict, EITI implemen- Context tation has kept on track: Armenia is a resource-rich country. The mining sector—with 25 metal mines and more than 400 non- • The EITI third report was produced and published. metal mines—is a significant contributor to the country’s export (accounting for 36 percent in 2018) • The scoping study on mineral water and refiners has been completed. and GDP (accounting for 2.9 percent in 2018). The sector also has a significant influence on rural • The electronic system for beneficial ownership disclosure has been operationalized. employment. However, the extractives sector was characterized by the absence of trust between civil • Several trainings and capacity-building activities have been caried out. society organizations (CSOs), the government, and private enterprises. The mistrust hindered collab- oration between the key stakeholders, and hence the pursuit of the solutions for existing problems. The main achievement is that all metal mining companies have already disclosed their beneficial own- ers, which is available in open data format for all citizens. It is first time in Armenia that citizens have To address this and other issues, the Armenian government, supported by the World Bank, enrolled access to beneficial ownership data. Armenia received the highest “satisfactory progress” rating for in the Extractive Industries Transparency Initiative, becoming a member of the program on March 9, beneficial ownership disclosure fulfillment. 2017. In 2018, the new government became actively engaged with EITI implementation and committed to undertake systemic institutional and legal reforms, emphasizing as an important breakthrough the With the additional financing, the EITI National Secretariat and MSG will be able to implement the road preparation of the country’s first EITI report. map on mainstreaming. This will allow citizens daily access to mining data. In parallel with the formulation of legal amendments to the Mining Code and related laws, required for the satisfactory first EITI report, the authorities launched an online reporting system for industry and government agencies to electronically collect and disclose EITI data. Armenia’s first EITI report was published in January 2019 and covered fiscal years 2016 and 2017. It was the first time in the country’s history that mining data were compiled and made publicly available. The country received a grant from the EGPS Trust Fund to support the implementation of the guid- ance tailored to international standards. The costs of supporting the Armenian EITI National Secretariat were covered by the state budget. The objective of this project is to assist the government of Armenia to increase transparency and accountability in the mining sector by implementing the EITI Standard. Approach Two capacity-building events, organized with the support from the World Bank, provided the founda- tion for the formation of the multi-stakeholder group (MSG) and the development of a two-year EITI implementation action plan. The formation of the MSG was a challenging task. Mistrust among the representatives of the govern- ment, the private enterprises, and CSOs hindered collaboration to the extent that the formation of the 82 EGPS ANNUAL REPORT 2021 Appendix A | Completed, New, and Ongoing Activities, FY2021 83 Chad: Mainstreaming the Extractive Industries Transparency Initiative • Strengthening the communication and dissemination effectiveness of the EITI National Secretariat, which supported the preparation of stakeholders mapping, communication channels Project ID: P168666 and strategies, and the identification and use of communication effectiveness indicators Total Budget: $350,000 • Strengthening the EITI National Secretariat’s administrative processes and internal controls, which supported the establishment and automation of internal administrative processes and procedures, EGPS Grant #: TF0B1475 and the development and implementation of a monitoring and results framework to support cost Effective: November 2019; Closing: April 2021; Status: Ongoing efficiency • A scoping study to identify efficient institutional arrangements for the collection and reporting of government revenue under the EITI, and the extent of possible automation in the production of information and supporting documentation Context Implementation Challenges Chad is a leading producer of crude oil in Central Africa, but the nation ranks 187 out of 189 countries Despite the simple project design and streamlined implementation arrangements, the project suffered in the United Nations Development Programme’s 2019 Human Development Index. Social conflicts considerable implementation delays. Low institutional capacity and complex local procurement reg- and public debate have arisen in Chad around the management of oil revenues, including oil-backed ulations are among the main causes of delays. The COVID-19 pandemic further compounded project loans granted by Glencore in 2013 and 2014, as well as controversy over the environmental impact of implementation difficulties owing to travel restrictions that severely hampered the consultant’s abil- extractive industries and poverty alleviation. ity to carry out stakeholders’ consultations as well as provide in-country training to the EITI National The petroleum sector is the main economic driving force in Chad: It contributed about 2 percentage Secretariat. While mitigation for travel limitations was provided through virtual missions, the local pro- points to GDP growth in 2018. Harnessing the petroleum sector for fiscal sustainability is a priority for curement law was eventually revised only in October 2021, which explains the sharp uptake in project Chad’s long-term development strategy. activities toward the end of the project’s life. The EITI has contributed to bringing transparency in the oil and gas sector in Chad, and EITI reports Results are a trusted source of information for all stakeholders. Chad has gradually extended the scope of EITI Except for the project audit, all planned activities were completed. The completion report, which will reporting—first to transport of petroleum by pipeline, then to domestic petroleum refineries. While assess the effectiveness of implementation arrangements and the degree of attainment of project Chad’s EITI implementation is compliant with the 2011 EITI Standard, its compliance with the 2016 EITI objectives, is currently under way. Standard is the object of an ongoing assessment by the EITI International Secretariat and the indepen- dent validator. To prepare for such validation, the National Technical Permanent Secretariat (NTPS)—the technical arm of the National High Committee (the MSG that oversees the EITI implementation in Chad)—carried out a self-evaluation in 2018, which identified several shortcomings to achieve the 2016 EITI Standard. These findings have already triggered important policy changes, reducing the gap toward Chad attain- ing full compliance with the new EITI Standard. The project objective is to strengthen the capacity of the NTPS to plan and execute its work program and to assess its communication effectiveness. Approach There are two main components to this program: (a) strengthening the NTPS’s internal controls and management capacity, and (b) project management. The components include the following activities: • The development of procedures and infrastructure for contract and information disclosure, which supported the implementation of the government disclosure policy through the compila- tion of a mini cadastre and the revamping of the Chad EITI website to improve access and docu- ment searches 84 EGPS ANNUAL REPORT 2021 Appendix A | Completed, New, and Ongoing Activities, FY2021 85 Dominican Republic: Implementing EITI • Production of the third EITI report for 2017 and 2018 data, production of fourth EITI report for 2019 and sustainable operation by the National Secretariat Project ID: P161434 Implementation Challenges Total Budget: $250,000 One of the main challenges for grant execution during this period is to achieve approval of the Extractive EGPS Grant #: TF0B1484 Industries Transparency Initiative in the Dominican Republic (EITI-RD) National Committee’s work plan Effective: December 2019; Closing: April 2022; Status: Ongoing for 2021, considering the dissent among stakeholder sectors concerning inclusion of a fifth objective regarding the environment proposed by civil society for the work plan. Because of delays caused by the COVID-19 pandemic, the Ministry of Energy and Mines (leader of the EITI-RD) asked the World Bank to extend the closing date of the TF0B1484 grant, which had been set for February 2021. On February 19, 2021, the World Bank issued a communication approving an extension to April 2022. Context Another challenge for the project was complying with the procurement plan’s activity timeline, which The Dominican Republic’s mining sector, dominated by gold and nickel production, expanded signifi- involved handling detailed World Bank’s administrative processes and guidelines for executing the cantly in the last decade. It accounted for almost 50 percent of the country’s GDP per capita growth grant. Notably, training on the requisite aspects of project management has been necessary because between 2000 and 2011, 1.9 percent of the total GDP in 2017, 40 percent of total exports in 2017, and of the change of government and turnover of public officials. 29.4 percent of all foreign direct investment (FDI) inflows between 2009 and 2013. Artisanal and small- scale mining activity also grew in this period, generating an estimated $20 million in 2014 alone. Results However, starting in late 2014, declining commodity prices, growing environmental and social tensions, The first EITI report covering 2015 data was published in November 2017; the second report with 2016 and delays in titling led mining companies to delay or abandon projects. The resulting decline in FDI data followed in December 2018. The EGPS grant financed dissemination, communication, and train- inflows subsequently led to a decline in mining production, exports, and fiscal revenues. This shift has ing around the results of the first EITI report. Twelve EITI report-related workshops and events took become a concern for the Dominican government and for the communities that directly or indirectly place around the country. In August 2017, EITI-RD launched its data portal containing information on benefit from mining. The country’s hydrocarbon potential remains untapped, but its development is the legal framework for natural resources, licensing, mineral production, revenue distribution, and the high on the government’s agenda. economic contribution of the sector. In this context, the government joined the EITI in 2016 and requested EGPS support for its efforts to The country’s validation against the 2016 EITI Standard started in January 2019. Simultaneously, the improve the management of the extractive industries, including the establishment and mainstreaming Ministry of Energy and Mines focused on improving the mining legal framework, which resulted in a of EITI mechanisms. draft national mining bill. Approach After the procurement plan for the TF0B1484 grant was restructured, with April 2022 as the new clos- ing date, significant progress has been made on implementing the main activities, which are in either The activities to be implemented under this grant include (a) operational support to the Dominican the negotiation phase or the implementation phase. EITI National Secretariat; (b) capacity-building activities for the MSG, technical working group, EITI National Secretariat staff, and other EITI stakeholders, including communications and public engage- As the entity responsible for implementation of this grant, the Ministry of Energy and Mines has con- ment training; and (c) publication of the national EITI work plan and first EITI report, including the firmed its commitment to satisfactorily completing the acquisition plan by the established deadlines. production of summary reports, launch conferences, and communication outreach and engagement tailored to specific constituencies. Likewise, the Dominican government has demonstrated its interest and support for the EITI-RD by including it as a presidential goal, which implies steady monitoring of compliance with the EITI Thanks to strong ownership by all stakeholders, substantial progress has been achieved in a relatively Standards and related activities. short time, but much remains to be done. Consequently, the government requested and received an additional EGPS grant to finance the following: • A feasibility study and technical solution design for mainstreaming the EITI reporting process • Capacity building for in-house production of EITI reports 86 EGPS ANNUAL REPORT 2021 Appendix A | Completed, New, and Ongoing Activities, FY2021 87 Ecuador: Mineral Cadastre Systems and EITI Scoping Implementation Challenges Project ID: P170577 Although slower than initially planned, the project progressed smoothly, and the government com- pleted its EITI application process successfully. The completion of the diagnosis and the adoption of a Total Budget: $330,309 road map for the reform of the mining cadastre faced several diverse challenges: a lack of transparency EGPS Grant #: TF0B0023 and vulnerability in the previous management of the mining cadastre, which made it difficult to clean the database; a lack of funds to finance the local team that consolidated the database; and a lack of Effective: April 2019; Closing: June 2021; Status: Closed leadership in the mining authorities on the mining cadastre issues. The project resulted in the establishment of a local technical team financed by other donors and then the setup of a task force made up of the team of local operators, World Bank experts, and a project Context manager appointed by the minister. This task force achieved a proper implementation of project’s tasks until the ministry of the sector adopted the reform road map. Oil and mining revenues represent a growing proportion of Ecuador’s national income and public expenditures. Oil exports represented half of the export basket during the boom years (2003–2013) Results and contributed to 35 percent of public funds expenditures. In 2017, revenues from mining contributed Country ownership and pursuit of the transparency agenda have accelerated project results. The proj- to the Ecuadoran state with $717 million in taxes, and advance payments represented a 56 percent ect EITI scoping report, Feasibility Report for Ecuador’s Adhesion to the EITI (2019), catalyzed the vice increase from the previous year. The recent upsurge is closely linked to various advantageous reg- ministry’s application for EITI candidacy in 2020. The vice minister of mines championed the submis- ulatory changes aimed at attracting private investment, including the 2009 Mining Law, which was sion of Ecuador’s application, which is likely to be discussed at the EITI Board meeting in October 2021. amended in 2013 to encourage this growth. The project’s intense sensitization work has led to the establishment of an MSG, the amendment of This project objective is twofold: related regulations, and the developing of a work plan for EITI implementation (July 2020). The project analyzed and evaluated the existing Ecuadoran cadastral management information system and com- (i) To support the government of Ecuador on improving the efficiency and transparency of puting resource capacity to establish a new system. Several reports were produced that established mineral rights management the initial framework for implementation of the new system. The project has also identified the WGS- (ii) To inform the country’s decision applying to the EITI membership 84 geodetic system, with GPS compatibility, as the cadastral reference system to be implemented for these proposed programs. Final activities of the project were canceled because of imposed COVID- The first relates to improving transparency in the extractive industries (oil and gas and mining sectors) 19–related restrictions. and address constraints through the opening of dynamic multi-stakeholder dialogue. The Ministry of Energy and Mines has identified the EITI as a tool that provides the community and the public access to reliable and timely information to solve any issues in these cases. The second priority, specific to the mining sector alone, is to upgrade the mining cadastre system to reflect the best-practice standards offering uniformity of compliance in mineral rights management. Approach The EGPS project activities were centered on disseminating the results of a scoping study on imple- menting the EITI through MSG consultations and evaluating how to improve the current mineral rights management system. This initiative was finished by the end of July and socialized through workshops in Quito in August 2019. To operationalize the implementation of the mineral rights management sys- tem, the Ministry of Energy and Mines will focus on cleaning the mining title data and creating a new dedicated unit within its current organizational structure to efficiently manage mining property rights, including the granting of mining titles. The government intends to introduce amendments to laws and regulations concerning the granting of mining titles to remove potential risks to the accessibility of mineral resources, such as lack of transparency and conflict of interest. 88 EGPS ANNUAL REPORT 2021 Appendix A | Completed, New, and Ongoing Activities, FY2021 89 Papua New Guinea: Extractive Industries (EI) Accountability & Governance Enhancement syllabus for public training institutions and senior high schools. A curriculum development consultant has been engaged to support this component and report on the outcome. Support for the data portal Project ID: P167472 would include an online data presentation portal as well as the development of an online educational Total Budget: $118,239 module and an online MSG reporting module. Deloitte has been engaged to support the data portal component. EGPS Grant #: TF0A9051 Implementation Challenges Effective: January 2019; Closing: June 2021; Status: Ongoing Challenges revolve around gaining stakeholder cooperation and delayed activities because of the COVID-19 lockdown. There has been a general lack of cooperation from relevant government min- istries. The project suffered delays after approval to adapt project deliverables to a Bank-execution modality and to obtain expressions of interest from qualified consultants. During this time, disburse- Context ment was limited to project supervision and client engagement. Papua New Guinea (PNG) has a wealth of natural resources. Revenue from these resources could con- The COVID-19 lockdown further delayed activities related to the electronic platform, education main- tribute to reducing poverty and improving the lives of the country’s citizens; however, 37.5 percent streaming, and subnational awareness campaigns. For instance, the scoping study for the electronic of the population continues to live below the national poverty line. Papua New Guinea is classified as platform was delayed because of meeting limitations and holdups in procurement. To mitigate these “low human development,” ranking 155 out of 189 countries (HDI for 2020). Papua New Guinea has challenges, the project was extended to FY2021 to complete education mainstreaming and subnational been exposed to global commodity price cycles and is prone to natural disasters. Economic growth awareness. is erratic, and the country has been unable to build savings from its resource wealth. As a result, the nation continues to rely on external financial assistance to manage economic downturns, such as the Results current pandemic. With the easing of COVID-19, the project is on track to complete these deliverables by the second or Papua New Guinea has so far published five EITI reports and underwent its first country validation in third quarter of FY2021. 2018. The EITI support is linked to the Australia’s Department of Foreign Affairs and Trade (DFAT)- funded PNG Governance Facility ($360 million for 2016–20), which supports the PNG government to This EGPS-funded project completed three deliverables: (a) Electronic Platform Scoping Study, (b) strengthen the institutions and processes that contribute to security, stability, and inclusive economic Education Main Streaming Scoping Study; and (c) PNG Resource Governance Coalition (PNGRGC) growth. Other related programs included the recently completed CSO support funded through EGPS Operationalization Scoping Study and Roadmap. and the Mining Sector Diagnostic, or MinGov, program. Peer reviewers, PNG EITI Secretariat on behalf of government of Papua New Guinea, CSOs, and the The project development objective is to support extractive industries accountability and strengthen Papua New Guinea EITI MSG commended the team on the quality of the reports and for completing the institutional capacity for Papua New Guinea to achieve compliance with the 2016 EITI Standard. scoping studies despite COVID-19 challenges. They also noted the exclusion of the fourth deliverable of subnational and provincial roadshows due to COVID-related travel restrictions and delayed comple- Approach tion of the first three deliverables. The meeting advised that the activity could be revisited if funding is available in the future. The unused project balance of $381,760.71 could be utilized in FY2022 to com- The deliverables under this program include strengthening institutional capacity and accountability at plete the subnational awareness and roadshows. provincial or subnational levels, improving public understanding of extractive industry benefits, and advising on the design of an online service to operationalize the national EITI website and educational At this stage, the PNG government, CSOs, and the EITI MSG are looking at funding options to implement mainstreaming through EITI educational curricula and syllabi. and operationalize the recommendations of the three scoping studies and complete the important out- standing subnational awareness and roadshows to complement the PNG EITI Secretariat’s efforts in Project support complements the PNG EITI Secretariat’s efforts in policy-driven provincial and regional policy-driven provincial and regional outreach activities, EITI education and provincial mainstreaming outreach activities, EITI education and provincial mainstreaming programs, and data portal devel- programs, and electronic data portal development. Outreach and roadshows program support will opment. Outreach and roadshows program support will cover extractive projects Memorandum of cover extractive projects Memorandum of Understanding (MOA) awareness, MSG meetings, follow-up Understanding (MOA) awareness, MSG meetings, follow-up beneficial ownership disclosure forums, beneficial ownership disclosure forums, subnational payments, open data partnerships, report dissem- subnational payments, open data partnerships, report dissemination, and provincial policy mainstream- inations, and provincial policy mainstreaming. The subnational outreach activities are a platform for ing. A consultant will be engaged to deliver a report on the outreach activities, including provincial EITI local communities to put forward their grievances on the way natural resources are managed. The EITI mainstreaming and setup of subprovincial MSG and provincial extractive desk focal points. Support serves as channel for these grievances to be heard at the national level. for educational mainstreaming would include the development of EITI educational curriculum and a 90 EGPS ANNUAL REPORT 2021 Appendix A | Completed, New, and Ongoing Activities, FY2021 91 Peru: Subnational Implementation of EITI support setup for proposed future interventions at the subnational level, a territorial assessment has been conducted around the following themes: subnational fiscal capacity and stakeholder mappings, Project ID: P160633 soil and subsoil natural resources; environmental, demographic, socioeconomic, and administrative Total Budget: $385,663 characteristics; access and quality of infrastructure and basic public services; and economic activities, productive links, and value chains. In this manner, the project provides timely support to the Ministry EGPS Grant #: TF0A4886 of Energy and Mines (MINEM). Effective: May 2017; Closing: December 2019; Status: Closed Implementation Challenges The main challenge on implementing the planned activities has been government instability. Ministerial changes have affected the pace of implementation of this project. Six ministers of energy and mines were appointed between January 2020 and October 2021, along with new vice ministers. The project Context team is currently interacting with the new sector’s leadership to get them up to speed, following the From approximately 2008 to 2018, Peru witnessed an average economic growth rate of 5 percent. recent government transition to the new administration of President Castillo. Poverty was reduced owing to improved macroeconomic management and increased investment, par- ticularly in the mining sector. At the same time, Peru underwent an exceptional moment of political Results instability with the president’s resignation in 2018 and closure of Congress in 2019. Against this back- The project will inform two eventual national investment programs or projects, one aimed at strength- ground, public and private investments have slowed down, including in the mining sector, which is the ening the mining sector management framework and institutional capacity, and a second aimed at main contributor to GDP growth. articulating public and private sector investment in regional investment in the southern corridor to eco- nomic opportunities for the local population. For this, the grant has made progress on the following: Despite its importance to the Peruvian economy, the mining sector faces major challenges in environ- mental, social, and governance sustainability. Local economic benefits in the “resource-rich economic • Setting up a multisectoral government working group through a ministerial resolution that drives corridors,” or mining regions, remains limited. The sector still lacks a clear, demonstrative case of territo- the initial stage for drafting a national multisectoral mining policy rial development with transformational impact on the well-being of people living in the mining regions. • Completion of the “business case” report (Analysis of Pertinence) and deliverance of it by MINEM The World Bank and the Peruvian government advanced discussions to identify possible reforms to to the National Planning Authority (CEPLAN) respond to these challenges. In the short term, the government is considering adjustments to the legal and institutional framework that regulates mining operations and investments. In the medium term, the Once CEPLAN reviews and approves the Analysis of Pertinence delivered by MINEM, the govern- government is looking to promote investments in the economic corridors that support broad-based ment would be able to launch formally a systematic and participatory process of policy formulation to economic growth within a sustainable territorial development approach. develop the new national mining policy for Peru To this end, a technical discussion with the World Bank proposed regulatory improvements to the mining sector in matters such as exploration, tax stabilization contracts, mining procedures and per- mits, mine closure, environmental management, and prior consultations. The Peruvian government has asked the Bank for technical assistance to address these challenges. The project development objective for this project is to support the regulatory framework for sustain- able use of mineral resources and to identify and prepare interventions to support sustainable territo- rial development in resource-rich regions. Approach The project focuses on producing assessments around the regulatory framework for sustainable use of mineral resources as well as sustainable territorial development in resource-rich regions. The assess- ment of best-practice regulatory reform and the dissemination of results through consultative work- shops with key stakeholders are informing discussions within the government about the possible improvements to the regulatory framework. To inform the institutional design and implementation 92 EGPS ANNUAL REPORT 2021 Appendix A | Completed, New, and Ongoing Activities, FY2021 93 Suriname: Extractive Industries Technical Assistance platform for citizens to learn more about Suriname’s extractive industries as well as engage the gov- ernment toward enhanced accountability and improved governance. Project ID: P163612 Results Total Budget: $318,825 At closure, the project’s performance was considered moderately satisfactory, with the project achieving EGPS Grant #: TF0A6097 its development objective of supporting Suriname’s participation in the EITI toward more transparent Effective: March 2018; Closing: September 2020; Status: Close and efficient management of its mining and oil sectors. The project achieved most of its benchmarks. These included the publication of the EITI reports, improvements in public involvement, and staff train- ing. Suriname’s first two EITI reports were published in May 2019 and December 2019. While the first report (2016) was not published on time, the MSG along with the Ministry of Natural Resources, the Ministry of Finance, private sector, and civil society was able to meet the deadline for the second report Context (December 31, 2019) under the strict guidance of the independent administrator (BDO Suriname). The development objective is to support Suriname’s participation in the EITI toward more transparent Key lessons learned include the following: and efficient management of its mining and oil sectors. • The information provided through the EITI is crucial to mitigate political and reputational risks Approach negatively affecting businesses and governments’ alike. Extractive industries pose governance The Extractive Industries Transparency Initiative in Suriname (EITI-SR) supports the country’s adherence challenges because of issues related to transparency and accountability, revenue sharing, and to the global standard for the open and accountable management of oil, gas, and mineral resources. environmental and social impacts. In countries such as Cameroon, Nigeria, Madagascar, and The initiative seeks to inform public debate and ensure recommendations are followed up, by publish- Mozambique, addressing these challenges combined with parallel support for EITI implementa- ing accurate information on key aspects of Suriname’s natural resource management, including how tion has proven to be an effective way to engage with stakeholders and prioritize sector reforms. licenses are allocated, how much tax, royalties, and social contributions companies are paying, and Building on this experience, the project supported the government in establishing sector reform where these funds end up in the government. plans and strengthening institutional management related to mining and advancing the EITI process. The EITI-SR is supported by the multi-stakeholder group—a coalition of government, companies, and civil society—which is a platform that provides the opportunity to build trust and encourage dialogue • In new country engagements, project design must be informed by the need for simplicity and between all the parties involved in this initiative. With its second EITI report for Suriname, covering flexibility. Operations need to focus on building government capacity and keep activities stream- 2017, the MSG showed its full commitment to the successful implementation of the EITI Standard in the lined and focused. country. • To ensure an effective project implementation, the Project Implementation Unit needs to be prop- erly staffed with staff assigned to clearly designated tasks. It is key to build capacity and establish This project supports the publication of EITI reports, citizen engagement in accountability, and gover- internal quality controls within the unit to address quality issues. nance of extractive industries via dissemination of the EITI and outreach activities (including the public • Since the inception, it is crucial to aim for the financial sustainability of the institutions involved launch of the two EITI national reports), facilitating EITI MSG meetings, and training members of the in the EITI process, building resilience that will allow them to weather the instability of budget EITI-SR Secretariat and other key stakeholders on the EITI (including the EITI validation process). cycles. Implementation Challenges From July 2021 through September 2021, when the project closed, project implementation was severely impacted by the COVID-19 pandemic, the July 2021 elections, and the subsequent change in govern- ment (and key staff in the implementing agency). Planned training activities for the EITI-SR Secretariat staff and EITI stakeholders and several outreach events had to be canceled because of travel/gather- ing restrictions associated with the pandemic. Ultimately, because of these cancellations, the project was not able to fully meet all its intermediate results indicators. Nevertheless, four large stakeholder engagement events were organized around the launch of the two EITI national reports. Moreover, the EITI-SR website (http://eitisuriname.org/en/) developed under the project has provided an important 94 EGPS ANNUAL REPORT 2021 Appendix A | Completed, New, and Ongoing Activities, FY2021 95 Togo: EITI Implementation Support Project The project development objective is to support implementation and sustainability of the EITI in Togo. Project ID: P163207 Activities Total Budget: USD $152,548 The project development objective will be achieved through improved reporting procedures for pro- duction and revenue data from the extractive industries, strategic communication with stakeholders, EGPS Grant #: TF0A8623 as well as business planning for the Togo EITI Secretariat. Effective: March 2018; Closing: December 2020; Status: Closed Specifically, activities include the following: • Feasibility study of the portal for automated EITI declarations • Guidelines for beneficial ownership declarations Context • Options study on the long-term sustainability of EITI implementation in Togo Togo’s 2018 National Development Plan aims to accelerate sustainable economic growth, create • Administrative support to work plan and governance arrangements. employment opportunities, and promote all dimensions of human development, within a time frame Results ending in 2022. The plan identifies the mining industry as one of the strategic growth poles for the national economy, with the objective to accelerate job creation as well as government revenue collec- Notwithstanding challenges such as delays caused by administrative bottlenecks, staff turnover, and tion for that nation. Mineral tax collection remains inefficient because of poor control of the company’s obstacles posed by COVID-19–induced lockdowns and national election campaigns, progress has been declared production and exports. Abandoned mine sites are increasing in Togo, and there are general observed both in general EITI implementation and in addressing the corrective actions required for the grievances related to land grabs. Moreover, audit functions are nearly nonexistent, and payments are a EITI validation. function of self-declarations by companies, which are rarely challenged or verified by tax and customs After pausing its systematic outreach and dissemination of the 2017 EITI Report in early 2020 because authorities. of the COVID-19 pandemic, Togo resumed it, following COVID protocols, in December 2020. In July Consequently, there is a considerable risk of lost government revenue because of under declarations 2021, Togo published the 2018 EITI Reconciliation Report. This most recent reconciliation report cov- or profit-shifting that is funneled to offshore companies. Similarly, cases of conflicts of interest are ers 27 companies that represent over 99 percent of the total government revenue collected from the reported to be prevalent among politically connected persons, who are seen enjoying direct or indi- extractive industries. Revenues reconciled through the report amounted to 93 percent, an increase rect ownership of mining companies. This has led to numerous investment agreements being biased from 85 percent the year prior, the remaining revenue declared unilaterally by the government. EITI in favor of private owners at the expense of the interests of the state. While the EITI process has lim- implementation awareness increased from 47 to 80 percent among authorities and industry stakehold- ited scope to strengthen the bargaining power of the state, it can be very effective in enhancing over- ers between 2017 and 2019, as reported by mineral sector and EITI perception surveys; a further update sight and accountability of the industry. In combination with the IDA-financed Mining Governance and is expected in late 2021. Development Project (MGD) Project, the EITI offers a combination of technical assistance, accountabil- This grant has also been instrumental in supporting the EITI MSG by addressing the corrective actions ity, and policy dialogue that can unlock the Togolese potential from its mineral resources. required for achieving validation in accordance with international EITI requirements. In 2017, the EITI Prior to grant approval in 2018, Togo had just undergone an EITI validation, which evaluated the EITI International Board identified seven corrective actions. In its second validation from September 2020, operation in Togo and developed suitable recommendations. The main gaps identified and determined the Board judged that Togo made significant progress on all the EITI’s requirements and corrective by that report included MSG governance (updating internal governance documents and clarifying con- measures, although two had yet to meet a satisfactory level. These issues pertain to MSG governance stituency representation and reporting procedures, renewing the MSG, having clearer rules on conflicts and work planning. Grant financing focused on accountability of beneficial ownership and contract of interest), work planning, having a publicly available cadastre (in line with the Mining Governance transparency, as well as strengthening MSG governance. A transparency study of beneficial ownership and Development Project support), state participation (clarifying the financial relationship between of mining companies was completed under the grant, as was an institutional analysis for the internal the New Society of Phosphates of Togo (SNPT) and the state), contract transparency (clarifying the governance of EITI Togo and its business planning. Progress on MSG governance improved from inad- government’s stated policies, transparency of barter agreements and contracts, subnational transfers equate to meaningful, whereas all other requirements related to licenses and contracts, revenue collec- disclosing the revenue-sharing formula and the actual amounts transferred), as well as addressing rec- tion, and allocation are now satisfactory. ommendations from reconciliation and validation reports. 96 EGPS ANNUAL REPORT 2021 Appendix A | Completed, New, and Ongoing Activities, FY2021 97 Colombia: Subnational Strengthening and Mainstreaming of Transparency in the Extractive Sector The sanitary emergency has continued to cause implementation delays, particularly at the subnational level. The Colombia EITI Secretariat has presented a timeline to implement the project under the new Project ID: P169919 schedule. In sum, a procurement specialist is on board, regions have been ranked and four selected Total Budget: $400,000 based on the methodology, and a model for engagement, communication, and implementation of the EITI in the selected territories has been proposed. EGPS Grant #: TF0A9854 Results Effective: August 2019; Closing: December 2021; Status: Ongoing Under the identification of the four selected regions/municipalities, with the prioritization made in 2020, the MSG validated the first four regions (Cesar, Casanare, Boyacá Oriente, and Santander), based on specific parameters, which resulted in 41 municipalities selected out of 600 municipalities. The sub- national structure is ready to be implemented in the selected regions with all the supporting material, Context the subnational EITI model to be applied, the tax payment and contribution information of the selected Colombia has made significant progress in extractives sector governance by adopting a transparent regions, and the methodology of awareness and training with stakeholders, along with a stakeholder mechanism for reporting extractive industries revenues. The country has been implementing the EITI mapping. There is also a proposal of the content that should be included in subnational EITI reports. since 2014. Through the support of the World Bank, Colombia became the first country in the Latin- America and Caribbean Region to achieve “satisfactory progress” under the EITI, the highest possible compliance rating. After such progress and thus far implementation at a national level, it has become necessary to deepen the EITI process at the subnational level. The project deepens the implementation of the EITI at the subnational level in selected municipali- ties/regions, thereby enhancing the transparency and accountability of municipal institutions, national entities, and extractives companies operating in those selected regions/ municipalities. In addition to the enhanced capacity for natural resource management, and support for improved governance across the extractive industries value chain in prioritized regions/municipalities, the project facilitates the improved fiscal management of extractives sector revenues in Colombia by enhancing fiscal data reporting on the extractives sector to the central government from municipalities, and thus in turn sup- porting efforts at fiscal consolidation and improved and informed extractives sector governance by the government of Colombia. The project development objective is to support enhanced transparency and accountability in Colombia’s extractives sector governance by deepening the implementation of the EITI into municipal- ities and mainstreaming its use in governmental institutions. Approach The approach of the grant is based on the implementation of four components: (1) identification of four selected regions/municipalities; (2) stakeholder training, and capacity building; (3) supporting subna- tional EITI reporting; and (4) generating increased demand for transparency. Implementation Challenges At the beginning of the implementation of the project, challenges regarding the inclusion and bud- geting of the financial resources led to some delays in the schedule of acquisitions. The Project Implementation Unit resolved both issues by hiring a procurement specialist to expedite contracting activities under the project. 98 EGPS ANNUAL REPORT 2021 Appendix A | Completed, New, and Ongoing Activities, FY2021 99 Argentina: Mainstreaming Mining Sector Data Collection and Dissemination through There has been a recent change at the mining sector authority: The team will continue working with EITI Program Implementation the Federal Secretary of Mines but with a newly designated technical counterpart. Lastly, the COVID-19 situation in Argentina has prevented the team from visiting the country and accelerating the imple- Project ID: P176138 mentation pace. Regular virtual meetings have been held. Total Budget: $450,000 Results EGPS Grant #: TF0B5439 The project is in the process of contracting a firm to conduct the relevant studies/project activities. Effective: January 2019; Closing: December 2022; Status: Ongoing The terms of reference have been agreed with the government’s technical team and six firms have expressed their interest on participating. The process will continue once the new technical counterpart is fully on board and ready to work with the World Bank team leading the project. Context The current Argentine government has pledged to maintain the commitments with EITI International in 2019, and the Technical Secretariat of EITI Argentina has been strengthened with the incorporation of a multidisciplinary technical team. Argentina requested support from EGPS for enhancing its information systems that handle and disclose mining activity data in line with the EITI Standard. In 2018, Argentina created the website Mining Information Center of Argentina (CIMA), a repository of information on the sector. Despite the large amount of data gathered, CIMA stores information in a static way and without possibilities of crossings and interoperability. Also, the information is still incomplete and unranked, the databases do not include the corresponding metadata, and it requires a better process for regular updating. The project aims at informing the strategies of disclosure of mining information based on global standards, with a focus on local conditions and circumstances, while addressing the heteroge- neity of the provinces of the country and considering the scale and diversity of the activity. The project has a federal perspective within a development framework aligned with principles of social inclusion and gender diversity. The project development objective is to improve the transparency of the mining value chain through the dissemination of up-to-date and systematic information and EITI reporting. Approach The project focuses on activities related to setting up the data information system for the mining sec- tor. It is working on relevant outputs, namely, reports related to identifying information gaps, analysis, and design of the platform for the information transparency system, and communication of mining information. The project includes activities aimed at creating opportunities for women’s participation in Argentina’s extractives sector, particularly in mining provinces. The team appointed at the Mining Directorate was first led by a woman and the organization has clear policies on gender participation promoted across all steps of the decision-making process in the mining sector. Implementation Challenges Since provinces own the resources, the federal government faces challenges in terms of access to the data and the provincial information system. To address this, the profile for the firm to be contracted should include a provincial university (or a local firm) that has direct knowledge and local networking that provides access to the needed information. 100 EGPS ANNUAL REPORT 2021 Appendix A | Completed, New, and Ongoing Activities, FY2021 101 Tanzania: EI Accountability and Governance Enhancement Project Results Project ID: P162493 The project continues to experience implementation capacity issues. Some remedial actions are being discussed with the beneficiaries: TEITI and its implementation partner, the Ministry of Minerals. The Total Budget: $750,000 Bank recommended the recruitment of an experienced procurement consultant on a part-time basis; EGPS Grant #: TF0B2542 however, the ministry did not mobilize such a person. Effective: July 2020; Closing: March 2022; Status: Ongoing After a change in disbursement methods, the project was able to disburse 50 percent of the grant. This could help fund training activities in the weeks ahead. At this point, it is difficult to envisage that all the grant’s activities will be implemented by the closing date in March 2022. Based on the commitment level demonstrated by the beneficiaries, the Bank may Context consider an extension of the closing date. Tanzania joined the EITI in February 2009, yet the process has not demonstrated tangible progress commensurate to 12 years of implementation. It was a great achievement to create a space and the framework for transparent governance of the extractives sector; however, many in Tanzania and else- where are becoming impatient to see the extractives sector make a greater contribution to the socio- economic development of the country. As it stands, the transparency configuration itself is not firm enough to play its role adequately: (a) The Tanzania Extractive Industries Transparency Initiative (TEITI) Secretariat faces some governance and institutional issues after having been years without a perma- nent national coordinator; (b) its institutional arrangement under the Ministry of Minerals is not con- sistent with TEITI’s role as a watchdog for the extractives sector; (c) TEITI lacks the financial resources to fulfill its mission without external assistance; (d) the capacity issues extend to technical capacities of its staff; and (e) TEITI has missed deadlines to comply with key requirements of the EITI Standard, such as the publication of beneficial ownership and the publication of all extractives sector contracts. Approach The World Bank is implementing a technical assistance project to help TEITI achieve compliance with the TEITA act, prepare for validation according to the 2019 EITI Standard, and improve the investment climate in the extractives sector by advancing a constructive dialogue on the impacts and benefits of the extractive industries between the government and the private sector. The project’s activities will help the TEITI Committee effectively carry out its mandate as a platform for multi-stakeholder policy debate. Moreover, the project will help extractive-affected communities be better informed about the activities of the sector so that they can engage effectively. Implementation Challenges Implementation capacity issues were identified in project preparation with regard to procurement. Training was provided to the beneficiary by World Bank fiduciary teams. Because TEITI and the Ministry of Minerals lack the financial means to advance funds, project activities were slow to start. The project’s supervision has been done virtually since its start. The TEITI team attends periodic meetings from the World Bank conference room in Dodoma, which has worked very well so far. However, because imple- mentation capacity issues persist, a field mission will be considered in the weeks ahead. 102 EGPS ANNUAL REPORT 2021 Appendix A | Completed, New, and Ongoing Activities, FY2021 103 Nigeria: Review of Nigeria Petroleum Industry Bills Approach Project ID: P170557 COMPONENT 2 This activity has reviewed several successive versions of the Petroleum Industry Bill, including the executive bill delivered to the National Assembly on September 28, 2020, and the revised House and REGULATION AND Total Budget: $117,000 Senate versions presented for the third reading in the National Assembly in June 2021. Unlike the cor- INSTITUTIONAL EGPS Grant #: TF0B2888 responding bills of 2018—the so-called legislative bills drafted by committees in the National Assembly STRENGTHENING (comprising four bills rather than one)—the September 2020 bill was an executive bill drafted by a Effective: May 2020; Closing: December 2021; Status: Ongoing team managed by the Office of the President. Results There were important changes between the September 2020 bill and the June 2021 House and Senate Context versions. The bills passed the third reading (they are publicly available and have been analyzed under Nigeria is a major oil exporter and the largest producer of crude oil in Africa. After years of efforts to this activity), following which the two chambers also voted on and passed the so-called harmonized diversify the economy away from oil, the federal government in 2019 still relied on the upstream oil and version. The World Bank exchanged its assessment of the first three versions of the bill (September gas sector for 40 percent of its total revenue. Further, oil revenue flows are not necessarily transparent; 2020 and June 2021 House and Senate versions) with government counterparts and development questions have been raised for decades about the extent to which Nigerian citizens are benefiting from partners, including the implications of the key provisions of the bill for the federation’s revenue as well oil revenue. In this light, the Ministry of Petroleum Resources, together with other ministries and agen- as the governance structure of the sector. cies that work on matters related to oil and gas, has asked the World Bank for help in strengthening The World Bank has interacted frequently with the International Monetary Fund, which has been test- sector policy making, implementation capacity and analysis, and forecasting of oil revenue. ing the new fiscal terms in its fiscal model, and development partners to arrive at a common under- In FY2019, this activity focused on oil revenue analysis as well as gas flaring reduction. With respect standing of the implications of the bill. to the former, the Ministry of Petroleum Resources, Budget Office of the Federation under the then The harmonized version of the bill was submitted to the Office of the President during the second Ministry of Budget and National Planning, Office of the Auditor-General for the Federation, and Nigeria week of August and was signed into law on August 16, 2021. This activity has not yet analyzed the final Extractive Industries Transparency Initiative (NEITI) asked for specialized training on the oil revenue signed bill and will continue helping the government understand the implications and steps needed to model developed by the World Bank, in coordination with the Ministry of Finance and the Budget address new issues that arise from the Petroleum Industry Act. Office of the Federation. This activity contributed to the acquisition of the data needed in the model, online Excel training, and face-to-face training on the oil revenue model. The model format was modi- fied in response to feedback received during the training sessions. In addition, this activity contributed to the Nigerian Flare Gas Commercialization Program by offering technical assistance to the preparation of documents needed and providing technical advice more generally, with the aim of reducing routine gas flaring, where associated gas is flared (burned) during oil production. In July 2018, the government published in the official gazette the Flare Gas (Prevention of Waste and Pollution) Regulations, 2018, which formed the legal basis for the commercialization program. Among the significant changes was raising the flare payment from the equivalent of $0.03 per unit of gas to $2.00 or $0.50 per unit, depending on the oil producer’s daily oil production. The regulator began collecting the flare payments in 2019, significantly increasing the incentive to reduce flaring in Nigeria. The objective of this activity is to contribute to the development and implementation of a new petro- leum legal framework that reflects good international practice and is tailored to addressing the specific challenges of the oil and gas sector in Nigeria. 104 EGPS ANNUAL REPORT 2021 Appendix A | Completed, New, and Ongoing Activities, FY2021 105 Papua New Guinea: PNG Mineral and Oil & Gas Resources and Domestic Market Development • Carry out macroeconomic modeling of economic and social benefits of developing resource megaprojects, including fiscal revenues, local economic growth, and job creation, both directly Project ID: P170589 from the projects as well as indirectly through links between the extractives sector and other sec- Total Budget: $600,000 tors of the economy. • Develop a national fuel strategy across all sectors of the economy, considering all forms of fuel EGPS Grant # Effective Closing Status and energy, and driven by long-term national strategic goals, such as climate goals. TF0B3372 August 2020 December 2021 Ongoing TF0B6534 August 2020 April 2022 Ongoing • Share best practices and lessons learned in other countries on relevant institutions and regula- tions required to implement the national fuel strategy. To this end, the World Bank deploys a team of international and local mining and gas experts—both Bank staff and individual consultants and consulting firms—to bring international best practices and Background lessons learned from elsewhere to Papua New Guinea. The work consists of supporting and empow- Papua New Guinea has a wealth of natural resources. Revenue from these resources could contribute to ering staff of relevant state entities to build capacity and to create and issue the policy, strategy, and reducing poverty and improving the lives of the country’s citizens. However, 37.5 percent of the popu- planning documents described above. lation continues to live below the national poverty line. Papua New Guinea has been exposed to global The work is done in close collaboration with the macro team in the Bank (the country economist) to commodity price cycles and is prone to natural disasters. Economic growth is erratic, and the country reflect the significant role of the extractives sector in the economy of Papua New Guinea. has been unable to build savings from its resource wealth. As a result, the nation continues to rely on external financial assistance to manage economic downturns, such as the current pandemic. Implementation Challenges Over the last few years, the World Bank has been supporting the government in a range of fiscal, pol- COVID-19 has had a devastating and disproportionate impact on everyday life in Papua New Guinea over icy, and commercial areas critical to further development of the country’s mining and oil and gas sec- the last 12 to 18 months. Consequently, it has been hard for the project team to engage with our counter- tor. This includes fiscal expertise to support the Treasury to understand different options for taxation parts at the relevant state entities and to set up the basic day-to-day working model required to achieve and participation by the state in resource projects, as well as support to the Ministry of Petroleum to the main objectives of this activity, to build capacity and to co-create the different tools and products better understand and to develop policy and regulation on key issues such as local content (“national described above. As a result, the implementation of this activity has been delayed by approximately six to content”), third-party access to infrastructure, and domestic gas (“domestic market obligation”). The eight months. The project team thus requested a four-month extension of the activity, which was kindly World Bank has also provided capacity building to the national utility company, PNG Power, to identify granted by the EGPS program. To date, the project has used only about 20 percent of its allocated budget. opportunities to use gas domestically for power generation, aimed at increasing access of the popula- tion to affordable and reliable energy. Results To date, the project team has developed an integrated macroeconomic/extractives sector project The devastating impact of COVID-19, which has hit the country’s fragile economy disproportionally model specific to the PNG economy. The team is ready to engage with our counterparts to bring them hard, has only increased the urgency to develop a national mineral and oil and gas development strat- on board and to transfer this capacity to the country, starting early September 2021. Overall, the main egy, which would allow the government to better plan and manage the huge potential socioeconomic deliverables from this activity, all co-created by the PNG government in close collaboration with and benefits of the country’s mineral resources for the people of Papua New Guinea. At the same time, the supported by the World Bank team, are as follows: increased focus on climate change, which is also affecting the country disproportionally, is forcing the government to make fundamental choices about the use of domestic mineral energy resources—that • An integrated macroeconomic/extractives sector project model for carrying out macroeconomic is, coal, oil, and gas—in the local economy. The goal of this grant-funded activity is to support the PNG analysis of strategic development choices government to address these strategic challenges in the extractives sector. • A strategy document presenting the position of the state to develop the country’s mineral and Approach oil and gas resources, balancing the significant potential socioeconomic benefits from resource megaprojects against adverse impacts on the environment and reflecting the country’s ambition The activity aims to further build capacity and develop tools at the relevant entities of the state of becoming a carbon-neutral economy by 2050 (Department of Treasury, Bank of PNG, Department of Petroleum and Energy, Mineral Resource • A strategy document presenting the fuel mix over time in different sectors of the economy, Authority) to do the following: balancing affordability of energy for the people of Papua New Guinea against adverse impacts ­ • Develop a national mineral and oil and gas resource development strategy. of the use of fossil fuel on the environment and reflecting the country’s ambition of becoming a ­ carbon-neutral economy by 2050 106 EGPS ANNUAL REPORT 2021 Appendix A | Completed, New, and Ongoing Activities, FY2021 107 Mongolia: Sustainable Mining Investment and Benefit Flows e. Conduct a mix of open stakeholder roundtables and closed government of Mongolia workshops to discuss (d) and deliver reports on each. Project ID: P173631 f. Deliver a strategy note to capture the outcomes of (a)–(e), including criterion for the designation Total Budget: $400,000 of deposits as strategic. EGPS Grant #: TF0B2915 g. Conduct one high-level dialogue with government of Mongolia decision-makers after completing (f). Effective: June 2020; Closing: December 2021; Status: Ongoing Implementation Challenges Travel restrictions have caused slight delays in output delivery. During the year, work has been done remotely, with communication via video conference and email. Although challenging at times, all par- Context ticipants have contributed to facilitating content exchanges, from data to ideas. Mining dominates the Mongolian economy, accounting for some 80 percent of exports and contribut- Results ing a quarter of the GDP, yet only a small portion of the country’s abundant known mineral resources Draft reports were received for (a) the techno-economic analysis on optimal development of strategic has been commercially developed and only limited value addition takes place within Mongolia. In July mineral deposits, (b) the bench-marking study on the costs and benefits of different modalities of state 2020, the newly elected government reaffirmed its commitment to bring into production more of participation in mining, and (c) the evaluation of public financing/tax structures. Following the feed- Mongolia’s mineral deposits and to process minerals locally instead of exporting them. Its objectives back provide, final reports are expected early in FY2022. are to boost government revenues, retain more value in country, and create conditions for more diver- sified economic growth in the future. In addition, a report specifically on sovereign wealth funds was also completed and delivered to the government of Mongolia. The output of this project will provide a source for donor engagement with The project development objective is to share insights and analysis with decision-makers in the gov- the government on its reform agenda. Ideally, it will be followed by reforms, which can be supported ernment to clarify strategic directions leading to more sustainable mining investment and benefit flows by the World Bank Group through Development Policy Lending (DPL) and IPF. over the long term. Approach EGPS-financed activities will support the government to identify a more optimal strategy for the use of scarce public funds and mobilization of fresh private capital. Analysis is planned on the drivers of viable mineral resource development, models for mobilizing public and private capital, and a review of governance of mining state-owned enterprises. A policy note series will capture insights from the anal- ysis and be disseminated for stakeholder debate. The outcome will be reflected in a strategic options paper for government consideration. a. Refresh the techno-economic analysis conducted by Worley Parsons in 2010 (financed by World Bank Investment Project Financing (IPF) on optimal development of strategic mineral deposits. b. Conduct international bench-marking study on the costs and benefits of different modalities of state participation in mining. c. Undertake quantitative evaluation of public financing/tax structures that meet Mongolian govern- ment state participation goals. d. Drawing on (a) to (c), deliver a policy note series on critical aspects of planning and financing mine, mineral processing, and related infrastructure projects, to include state equity, shared mining/­ public infrastructure, and environmental and social safeguard considerations. 108 EGPS ANNUAL REPORT 2021 Appendix A | Completed, New, and Ongoing Activities, FY2021 109 Global: Impact of COVID-19-Induced Recession in World Oil & Gas and Mineral Markets The next step was to assess the impact of COVID-19–induced commercial and operational issues on the revenues and the timeline of these megaprojects, as well as the decision to invest in new project in the Project ID: P170557 first place; this involved consultations with relevant stakeholders such as government officials and pri- Total Budget: $250,000 vate sector project developers. The contribution of these megaprojects to the economy and the impact of COVID-19 were aggregated in integrated macroeconomic and resource project models in close col- EGPS Grant #: TF0B3968 laboration with the country economic teams in the Bank. The goal of this exercise was to identify possi- Effective: May 2020; Closing: October 2020; Status: Closed ble elements of a post–COVID-19 work program to address the specific medium-term economic effects caused by the virus in the extractives sector and possible ways to speed up recovery in the sector. Separately, the project aimed to take stock of COVID-19 impacts on the mining industry—estimating global demand losses for key commodities, recent patterns of supply disruption, forward guidance on Background short-term price outlooks, and price risk assessment—and to undertake a deep dive into national sec- tor and budgetary impacts, including assessment of the current resilience of selected national mining In 2020, the COVID-19 crisis caused a global economic standstill that was expected to have significant industries to the COVID-19 pandemic, the impact on production and investment in the mining sector, impact on short- and medium-term demand, and world market prices, for oil, gas, and minerals. Early scenario-based evaluation of future industry conditions and their possible impact on future export and in the year, oil spot prices plummeted to historically low levels, and oil futures through to 2025 dropped fiscal revenues, and links between the mining sector and other sectors of the economy with regard to from around $50 to under $40 per barrel. production (value added) and employment. Resource-based economies, such as Papua New Guinea, Mozambique, and Peru, depend heavily on the Implementation Challenges extractives sector in terms of employment, export of mineral commodities, and state (fiscal) revenues. Consequently, COVID-19 was expected to significantly impact the short-term economic outlook for The project was executed in just under three months, from late April until early July 2020, during which these countries. The worldwide drop in demand for oil, gas, and minerals was not just going to have it was only possible to generate a first, high-level outlook for the anticipated impact of COVID-19. an impact on anticipated revenues from existing projects; it was expected to delay and even lead to Furthermore, the project was executed while everybody was just getting used to working from home. cancellations of investments in new resource megaprojects that could have (had) a transformational Consequently, it was difficult to get hold of people for stakeholder consultations. impact on the economy in these countries. Results There was a strong interest in the World Bank to understand the short- to medium-term impact of The activity resulted in a fully operational integrated macroeconomic and gas megaproject model COVID-19 on client countries. The Extractives team in the Bank came to an understanding, together tuned to the national accounts of Mozambique. With the help of this model, the team managed to sim- with the country economists in Mozambique and Peru, that it is important to have a project-by-project ulate the impact of the COVID-19 pandemic on key macroeconomic indicators, that is, fiscal revenue, breakdown of the impact of COVID-19 on existing and prospective resource megaprojects, given that a and debt sustainability of the country. reduction in anticipated revenues and/or a delay in execution of each project would have a measurable impact on economic activity at the macro level. In parallel, with help from the consultant firm CRU, the team developed an outlook for commodity prices for key export and fiscal revenue-generating minerals in both Mozambique and Peru. In a sep- The goal of this grant-funded activity has been to assess the short-term impact of the COVID-19– arate report, the team presented an outlook of the impact of COVID-19 on future development pros- induced recession in world oil, gas, and mineral markets on key macroeconomic parameters (GDP, pects in the mining sector in both countries. employment, and fiscal revenues) in Papua New Guinea, Mozambique, and Peru, based on a bottom-up analysis of resource megaprojects, as well as to identify relevant extractives sector-specific policies, The PNG analysis is much deeper and still ongoing in a follow-up project, PNG Mineral and Oil & Gas regulation, and management processes to mitigate this impact on resource-based economies. Resources and Domestic Market Development, which is also funded by the EGPS Trust Fund. Approach The project set out to identify and select legacy and prospective resource projects that have a ­significant impact on the economy of the country (“megaprojects”) in Papua New Guinea, Mozambique, and Peru. 110 EGPS ANNUAL REPORT 2021 Appendix A | Completed, New, and Ongoing Activities, FY2021 111 Azerbaijan: Mineral Sector Rapid Assessment Results Project ID: P170557 A rapid assessment was produced and is currently being finalized, with the objective to further engage with the authorities and decide which type of assistance should follow. Total Budget: $50,000 The main conclusion is that Azerbaijan is likely to remain known primarily as a major oil and gas pro- EGPS Grant #: TF0B5000 ducer in the years to come given the low level of exploration and the time needed to develop new min- Effective: February 2021; Closing: June 2021; Status: Ongoing ing projects. However, if the environmental impact can be offset, the country may have a comparative advantage in the processing of minerals. Additionally, Azerbaijan has rich variety of known metallic (especially gold and copper) and non-­ metallic mineral resources, and a good potential to expand the resource base and contribute more to Context the economy exists. The two main issues standing in the way of such resource development are the The potential for mining and mineral processing in Azerbaijan is likely significant. Azerbaijan has rich lack of an investor-friendly mining law and outdated geological information. variety of known metallic (especially gold and copper, but also other base metals) and nonmetallic mineral resources, and a good potential to expand its resource base and contribute more to the econ- omy exists. However, Azerbaijan is likely to remain known primarily as a major oil and gas producer in the short run given the outdated exploration data and the time needed to develop new mining projects. Key policy choices need to be made to orient reform toward either attracting exploration and world- class mining companies or developing national companies with strong public sector involvement. If Azerbaijan plans to attract mining players like leading mining jurisdictions, it may have to embark on significant policy and legal reform. If Azerbaijan choses to rely on its historical capacity and current legal framework as well as on its newly formed state-owned company to further develop the sector, the country is unlikely to attract investors but could still learn lessons from good practices, especially regarding environmental and social impact management of mining and processing. The government of Azerbaijan approached the World Bank for support in the mining sector. In response, the Bank has undertaken a brief preliminary assessment to identify opportunities and challenges in the country’s mining sector. The development objective is to assess the potential for mining and the gaps in mining governance in Azerbaijan. Approach The approach was to carry out an assessment of the geological potential and of the overall gover- nance environment based on the existing (limited) literature. A preliminary assessment of mining in Azerbaijan was produced, presenting both the opportunities and the challenges. It also included pro- posals for further World Bank technical and financial support to the National Agency for Minerals. Implementation Challenges Engaging with a new client without the option to physically meet and visit the country was challenging. Judging the preparedness of the government to reform the sector and incorporate lessons from the international experience has proved hard. 112 EGPS ANNUAL REPORT 2021 Appendix A | Completed, New, and Ongoing Activities, FY2021 113 Georgia: Georgia Mineral Potential mineral deposits. Georgia was involved in several regional and world assessments, including those on forest and mining, and mine closure and economic regeneration. Project ID: P168804 Implementation Challenges Total Budget: $350,000 Several long discussions with the counterpart have been held to design the activities under the grant. EGPS Grant #: TF0B5300 To cover what could not be included in this short-term grant, it was agreed that a separate recipient-­ Effective: March 2021; Closing: April 2022; Status: Ongoing executed grant could be submitted in the EGPS autumn call for grant proposals. The new grant pro- posal would be a continuation of the existing grant and could form a basis for larger project discussions. Results Context The project implementation started recently and there are no major achievements yet. However, the grant is almost fully committed, and a consulting firm was selected and has started to work on the Georgia is a country in the Caucasus rich in mineral resources. For decades, mining has helped gener- maps’ digitization and communication strategy development. An individual consultant is working in ate revenues important to the national and regional budgets. Georgia’s mining sector is characterized parallel on the finalization of the mining catalog. The catalog will consist of at least 20 project bro- by several significant deposits and investments in manganese, copper, and gold and small-to-medium chures presenting potential reserves. It will be ready by the end of August 2021. size quarry operations (primarily marble and construction materials). In the last five years, renewed interest in Georgia’s minerals sector has emerged; an estimated 35 per- cent of exports are mineral related (raw, processed, and semi processed minerals). Apparently because of its untaxed export policy, Georgia has quietly become a “re-export” or transit country for gold, cop- per, and ferrous metals mined in other countries. It is estimated that up to 45,000 Georgians work in the minerals sector. Despite the growing importance of the sector, Georgia’s mining sector legislation still closely follows the Soviet-era model. Existing legal and fiscal regimes as well as institutional arrangements are not attractive for investors, and environmental and social standards are insufficient. The capacity of the recently established main regulator of the sector, National Agency of Mines (NAM), needs strength- ening. Geological data that cover a large part of the country exist but have not been updated and are difficult to access for potential investors. In 2017, the Ministry of Economy and Sustainable Development through NAM started a mining sec- tor governance improvement process. NAM started a modernization process with the general aim to improve sustainability in the mining sector and boost investments. One of the key priorities is to sup- port the growth of Georgia’s GDP and rural development by attracting investments in the mining sec- tor. The objective of the grant is to assist the Georgian government in promoting its mineral potential to attract more responsible investors in the mining sector. Approach Based on an official request from the Parliament and government of Georgia, the World Bank mining team started discussions with NAM in 2017. Several capacity-building activities were carried out on environmental protection, social, and economic aspects of the mining sector as well as on the EITI. An assessment of the current state of mining licensing and geological information systems in Georgia and best practices of the world was produced, as well as initial mining brochures to promote selected 114 EGPS ANNUAL REPORT 2021 Appendix A | Completed, New, and Ongoing Activities, FY2021 115 Global: Mining Sector Diagnostic (Mining Investment and Governance Review—MinGov) The MSD currently does not explicitly address issues related to climate-smart mining in the context of the transition to a low-carbon environment. To keep the MSD relevant, work is being initiated to deter- Project ID: P160992 mine how climate-smart mining issues could be addressed within the tool. Total Budget: $1,000,000 Results EGPS Grant # Effective Closing Status Five MSD assessments (Afghanistan, Colombia, Indonesia, Papua New Guinea, and Serbia) were com- TF0A3868 November 2016 December 2019 Closed pleted during FY2019 and FY2020; a further three assessments—all based on requests from the respec- TF0A5999 September 2017 December 2021 Ongoing tive governments—were completed during the same period for Argentina (two provinces: Salta and TF0B4925 January 2020 June 2022 Ongoing Buenos Aires), Liberia, and the Philippines. In addition, data collection was completed for Myanmar. During FY2021, two MSD assessments were completed—for Peru and Afghanistan. The Peru assessment Context was one of the best completed to date and the World Bank presented the findings at the PDAC 2021 convention held in February. The authorities were briefed on the results and subsequently requested To embark on extractives sector reforms, countries need to conduct a systematic and comprehensive World Bank assistance in designing the National Mineral Policy and further analytical work related to diagnostic analysis along the entire value chain of the sector. Such an analysis works best if it identifies the sustainable use of the country’s mineral wealth. the strengths and weaknesses of sector management and assesses institutional and legal frameworks, as well as their implementation and enforcement mechanisms. The Afghanistan assessment was a significantly updated version to reflect changes in the legal and reg- ulatory framework as well as to increase stakeholder inputs from industry and civil society. Although In response to demand from client countries, the World Bank launched in 2013 a project originally titled the assessment was significantly improved, the prevailing political situation limits World Bank follow-up the Mining Investment and Governance Review (MinGov). on the assessment. The project development objective is to develop and maintain an analytical tool that can be used to In addition, data collection started in the Kyrgyz Republic and preparatory work for an MSD assess- strengthen the mining sector’s governance, investment environment, and development impact. ment was initiated in Kazakhstan. Approach Phase 1 of the project focused on the development of methodology, which was then rolled out in eight primarily African countries. Phase 2 started in the fourth quarter of 2016 with a revision of the MinGov, followed by the midterm review in July/August 2017. These exercises led to the improved focused on the mining sector’s comprehensive and systematic assessment rather than specifically its governance aspect. Implementation Challenges The primary implementation challenge during FY2021 resulted from COVID-19–related restrictions. Data collection and follow-up interviews had to be conducted remotely via email, phone calls, and vir- tual meetings. With increased reliance on local consultants, this approach worked quite well. Dedicated follow-up by a local consultant yielded a robust database for the Afghanistan assessment—reflecting substantially increased participation from industry and civil society respondents compared with an earlier assessment. In Peru, the Mining Sector Diagnostic assessment team included two local aca- demics/former government officials, who greatly facilitated access to respondents as well as added in-depth knowledge on issues. Also related to the ongoing pandemic was the relatively low demand for MSD assessments as country authorities were focused on managing the pandemic response and the resulting economic challenges. This resulted in fewer assessments than would otherwise be expected; however, it is expected that stronger interest in MSD assessments will resurface post-pandemic. 116 EGPS ANNUAL REPORT 2021 Appendix A | Completed, New, and Ongoing Activities, FY2021 117 Global: Africa Regional Training in Mining Tax Administration and Policymaking Results Project ID: P170557 The planned activities have been suspended because of COVID-19–related travel restrictions and gen- eral health concerns related to cross-border workshop arrangements. It was concluded that virtual Total Budget: $6,000 meetings would not yield the intended results in peer learning and with training programs evolving EGPS Grant #: TF0B2386 around real-life case studies. Alternative training modules are available online from multilateral and bilateral partners. For that reason, the team found no added value to enter this field. The team is hope- Effective: March 2020; Closing: June 2021; Status: Closed ful to reengage, through new funding, once travel restrictions ease. Context The standardization of mineral fiscal policy making and administration remains at the forefront of the global debate about sustainable development of the mineral industry. The topic is also a central pillar of technical assistance activities in most World Bank client countries. Many countries, mainly in West Africa (Burkina Faso, Côte d’Ivoire, Mali, Togo), have expressed a strong demand for good practices and peer-to-peer learning. Development partners (GIZ, AfDB, and others) have also indicated a strong interest in project partnership collaboration programs on this topic. The project development objective is to build an in-depth transparent report and toolkit identifying relevant fiscal policies and mineral tax administration, within the core groups of sector experts who are engaged from participating countries to communicate on these issues. Approach Against this background, the EGPS sourcebook How to Improve Mining Tax Administration and Collection Frameworks and the existing training material offer a powerful toolkit to be deployed across a wider group of client countries with many advantages. Using a predefined curriculum of tax policy and tax administration topics, a series of 3–5 weeklong seminars will be conducted. The  project will finance two to three trainers who will update and present the existing training material. The deliverables for this training will contain a set of course materials, which may be reused or replicated in future training events. A synopsis and course evaluation will also be prepared to cap- ture lesson objectives and learning goals, describe a methodology for course outlines and orga- nization, and highlight the proposed conduct of future courses. If successful, the course may be replicated in collaboration with development partners, including the IMF, GIZ, or others. The mate- rial may also serve as training content for a future broader engagement in the management of tax administration. 118 EGPS ANNUAL REPORT 2021 Appendix A | Completed, New, and Ongoing Activities, FY2021 119 Armenia: Armenia Mineral Sector Policy Grant II Implementation Challenges Project ID: P173686 The implementation of this project has faced multiple challenges: Total Budget: $475,000 • During elaboration of the mineral sector policy, Armenia went through radical political changes, with a “velvet revolution” taking place amid the project implementation period. EGPS Grant # Effective Closing Status TF0B3556 February 2021 April 2022 Ongoing • An overhaul of the government, followed by the parliamentarian elections in 2018, led to the TF0A5519 November 2017 April 2020 Closed replacement of most government representatives with many young people, including civil society representatives and journalists. This created quite some delays, needing them to catch up with ongoing activities. • It was difficult to find the right consultants for the planned analytical works, which caused further Context delays. The last complicating factor was the closing date of the parent trust fund. Armenia is rich in mineral resources, including copper, gold, steel, zinc, magnesium, and molybdenum For these reasons, the government of Armenia requested an extension and additional financing for the (11th in the world by the reserves). In 2016, the mineral extraction industries made up 17.9 percent of Mineral Sector Policy Grant. However, the World Bank was not able to satisfy the request for adminis- the country’s total industrial production, and the export of minerals accounted for 26.4 percent of total trative reasons, and, instead, based on discussions with the EGPS, agreed to allow for a new grant to export revenues. The industry directly employs around 9,000 workers, concentrated in rural areas, enable completion of the work. The new grant was put in place in July 2020 to assist the government amounting to approximately 0.8 percent of the country’s total employed population. with the finalization and implementation of the mineral sector policy. Despite the potential for growth, the mining industry has been a contested subject in Armenia. The Results country has lacked a defined mining sector policy. Historically, there has been a strong public distrust of mining activities, largely fueled by the lack of publicly available information, miscommunication Reacting to the COVID-19 outbreak, the government conducted a rapid assessment of the pandemic’s between stakeholders, and the fact that most mines originated in the Soviet era under weak environ- impact on the mining sector, focusing on the economic and health-related effects of the pandemic. mental and social standards. Considering the vulnerability of the sector to the virus, the government transferred part of the grant’s capacity-building budget to finance the training of more than 1,700 doctors and nurses in mining Between October 2015 and April 2016, the World Bank–managed multidonor trust fund EI-TAF regions. (Extractive Industries Technical Advisory Facility) produced a report that provided a review of the Armenian mining sector and an assessment of its potential to contribute to sustainable economic The Mineral Sector Policy Grant II (P173686) allowed restarting the development of the mineral sector growth and development of the country. Based on the findings, the report offered recommendations policy. The consulting company is now selected and will start engaging stakeholders in September for the creation of a mineral sector policy that would embody guidance for better governance of the 2021. Besides the completion of the policy development, the new grant will assist the Armenian author- mining sector, building trust among the stakeholders, and generate higher environmental and social ities to bring key elements of the existing legislation in line with international best practices and con- standards. duct capacity-building and awareness-raising activities for the key stakeholders. The project development objective is to develop a mineral sector policy focused on strengthening the mining sector’s contribution to sustainable economic growth. Approach To support the development of a long-term policy, the project helped undertake a series of diagnos- tic studies to fill the existing knowledge gap and identify the priorities, means, and measures for pro- ducing a policy that could be translated into an action plan. The economic assessment evaluated the economic viability of different types of mining investments for Armenia, considering their (potential) contribution to local, regional, and national development, and the potential to develop stronger eco- nomic links along the supply chain. The environmental and health assessment evaluated the risks that the mineral sector development poses to local communities, and how these risks can be effectively addressed in the mineral sector policy. 120 EGPS ANNUAL REPORT 2021 Appendix A | Completed, New, and Ongoing Activities, FY2021 121 Chad: Petroleum Sector Diagnostics development organizations or are technical and engineering specialists. The analysis focused on iden- tifying opportunities and prioritizing core competencies in specific segments of the oil and gas value Project ID: P166399 chain where economic activities have the potential to grow and increase cross-pollination, which can Total Budget: $434,166 be achieved through policy reforms or the provision of public and private inputs. The study applied a strategic segmentation and gap analysis approach to the oil and gas industry, and it identified three EGPS Grant #: TF0A6355 unique core competencies that have the potential to create cross-industry links and spillover effects: Effective: December 2017; Closing: October 2020; Status: Closed i. Advanced data management ii. Water management iii. Shared infrastructure and logistics Context Implementation Challenges Harnessing the petroleum sector for fiscal sustainability is a priority in Chad’s first long-term development strategy. Over the past three decades, growth and economic performance have been largely dominated Stakeholders’ consultation is critical not only for fact-checking but to create a shared vision and own- by oil and security. Overreliance on oil revenue has somewhat reduced incentives to diversify the economy ership of the study findings. Both phases of the study relied on interviews with public sector actors, and promote competitiveness, leaving the country more vulnerable to exogenous shocks. Following the industry experts, and local businesses. Findings were also presented and discussed with interviewees. 2014 oil price shock, Chad was forced to pursue a severe fiscal adjustment and, subsequently, fiscal con- This approach resulted in a longer-than-planned completion lead time, particularly in the second part solidation. This led to a series of development policy lending, which were structured around governance of the study, which was heavily affected by the COVID-19 pandemic and associated limitations on travel reforms, improved fiscal management, and the promotion of economic diversification in key real sectors. and in-person gatherings. On the other hand, broad consultation (both within the World Bank Group and in country) allowed the team to socialize concept and ideas, which ultimately facilitated the discus- The Petroleum Sector Diagnostics was launched against this backdrop. Its purpose was to identify sion on priority areas and concrete reforms to be considered for technical assistance and development areas for engagement to inform the structuring of the World Bank’s and other donors’ development policy lending. Setting up a research board comprising key constituencies could have further enhanced policy lending and associated technical assistance. ownership and trust, although this would have imposed a longer completion lead time. The project development objective was to carry out a diagnostic of the petroleum sector to identify Results areas for engagement, which might form the object of a future sector-specific IPF as well as inform key sector reforms under the Development Policy Operation (DPO) series. Links with existing or planned lending operations ensure that policy recommendations become an integral part of the country dialogue. The purpose of the study was to identify areas for engagement Approach in the petroleum sector to inform the structuring of development policy lending and technical assis- tance programs under preparation. This imperative guided the study’s research methodology, scope, The analysis was structured in two phases: and timeline so that data-based solutions could be proposed and discussed with the government to 1. The sector diagnostic, which was publicly completed in February 2019. The study was designed to address specific challenges. This context gave focus and purpose to the study and helped create and identify the strengths and weaknesses of Chad’s approach to the exploitation of petroleum resources, maintain a constructive engagement with government counterparts. Issues and solutions identified and the management of the economic and social impact of such exploitation. Priority reforms were through the study were discussed and validated with the relevant stakeholders and adapted to reflect grouped under common themes and validated through stakeholders’ consultation. These included: their feedback. The findings of the study informed the preparation of the following projects: i. Defining and disseminating sector policies; Law 006/PR/2007 (Petroleum Law) Phase 1: The Chad Domestic Resource Mobilization and Management Project and the first and ii. Promoting the optimal development of petroleum resources second Economic Recovery and Resilience Development Policy Operation, as well as the tech- iii. Harmonizing the system of laws, regulations, and contracts nical assistance to the Ministry of Finance and Budget for setting up a long-term macroeco- iv. Strengthening institutions and institutional capacity nomic model to help define the government’s fiscal policy stance v. Administering and collecting taxes and royalty vi. Managing extractive industry revenues Phase 2: The Risk and Resilience Assessment (RRA) and associated Eligibility Note for Access to vii. Setting the basis for sustainable development the Prevention and Resilience Allocation (PRA), as well as the systematic country diagnostic update 2. The value chain diagnostics (Chad SME Competitiveness and Global Value Chain Upgrading The concept of leveraging key competencies of the petroleum sector as an anchor for economic diver- Diagnostics), which was completed in October 2020. This study explored how key competencies of sification, developed in phase 2 of the study, elicited particular interest. This approach was found more the oil and gas industry could be leveraged to support the diversification of the Chadian economy. promising than the current local content policies, which tend to create further dependence on the The study hypotheses were refined through interviews with multiple experts who either work for petroleum sector and increase exposure to its economic cycles. 122 EGPS ANNUAL REPORT 2021 Appendix A | Completed, New, and Ongoing Activities, FY2021 123 Myanmar: Energy Policy Dialog and Sector Development as to assist Myanmar in developing a fiscal and governance framework that will attract upstream gas investment while safeguarding national interests. Project ID: P171461 Approach Total budget: $101,761 The project activities are structured around three pillars: EGPS Grant #: TF0B2280 • Inclusive access to clean and reliable energy, covering the access agenda and power supply reli- Effective; February 2020; Closing; June 2021; Status: Closed ability challenges • Efficient energy services and low-carbon electricity services, including exploring interventions to support supply and demand-side management • Governance, planning, and financial viability, which would continue the ongoing dialogue on fis- Context cal and governance framework of upstream gas, electricity pricing reform, power system dispatch To support growth and meet its universal access goals, Myanmar will have to address key energy chal- optimization, and capacity building of sector entities lenges, grouped into three thematic areas: accelerating access to clean energy for all, ensuring suffi- The just-in-time advice was provided in the form of comments to drafts of (a) a new petroleum upstream cient and reliable power supply, and pricing policies and inefficiencies in energy consumption. law and (b) a revised model PSC. Myanmar’s electricity demand is growing at more than 10 percent a year, and natural gas-fired genera- The Bank team undertook a quality assurance process to ensure that advice provided on this high-vis- tion is expected to be the main source of new electricity supply. However, the existing fiscal, contractual, ibility task aligned with international best practices. To this end, a virtual review meeting was held May and governance framework for the gas sector is out of date and uncompetitive. The model produc- 13–20. The recommendations from the peer reviewers were incorporated in the latest rounds of advice tion sharing contract (PSC), while workable for Myanmar’s earlier shallow-water projects, is proving to to government and are reflected in this summary note. be inadequate and unbalanced as activity moves increasingly to deeper water. Moreover, Myanmar’s upstream governance framework vests almost total responsibility for the sector in the hands of the Results national oil company, Myanmar Oil & Gas Enterprise (MOGE). Efforts to adjust the fiscal, contractual, and governance structure have been slow, and capacity within the government of Myanmar to make The project made good progress in two areas that targeted the fiscal framework and draft petroleum policy and regulatory decisions is extremely limited. law. For the last 40 years, the country’s upstream oil and gas sector has generally been managed by MOGE, Against the anticipated outcome to develop an upstream gas fiscal framework, the project developed which currently sits under the Ministry of Energy and Electricity. Since the 1990s, exploration and pro- a revenue forecasting model that is being used by the Myanmar government. Myanmar used this model duction rights have been granted to foreign companies under PSCs with MOGE based on model PSCs to prepare publicly disclosed revenue forecasts for FY2020/21. The Bank team also provided training developed by MOGE.1 Neither MOGE’s assumed mandate nor the concept of PSCs as the contractual and modeling to support Myanmar’s analysis of new fiscal terms. mechanism for the conduct of petroleum operations has been contemplated in any legislation or regu- Against the intended outcome around an improved gas governance framework, the project provided lation. Hence, reform of sector legislation is urgently required, so the National Economic Coordinating inputs into the new petroleum law. The final Draft 4 shared with NECC by Norad incorporated almost all Committee (NECC), the highest policy-making body in the country, requested the World Bank’s assis- the Bank’s suggestions. Key changes in the law included governance structure, permitting, fiscal terms, tance to improve the upstream gas governance framework (2019) to strike a better balance between and transparency and environment. the interests of government and investors and to facilitate greater oversight of MOGE. The government has requested further support. Continued engagement with the NECC, Ministry of In response to these requests, EGPS financed the Myanmar Energy Policy Dialog and Sector Development Electricity and Energy (MOEE), and other stakeholders is expected to continue under the Myanmar Project. Under this project, a just-in-time project was financed by EGPS and the Norwegian Agency for Energy Policy Dialog and Sector Development Project (P171461) with funding from the EGPS Trust Development Cooperation (Norad) to respond to the NECC request to improve Myanmar’s upstream Fund. gas governance framework (December 1, 2019, to May 31, 2020). The project development objective of the proposed activity is to inform ongoing policy dialogue with the government of Myanmar to support the sustainable energy sector development and reform as well 1 Model Production Sharing Contract for the Exploration and Production of Petroleum for Deep Water Block 124 EGPS ANNUAL REPORT 2021 Appendix A | Completed, New, and Ongoing Activities, FY2021 125 Somalia: Petroleum Technical Assistance Program (SOPTAP) capacity building through the establishment of a project management unit within the Ministry of Petroleum and Mineral Resources. Project ID: P164175 Implementation Challenges Total Budget: $484,402 This project is the first recipient-executed project of the Ministry of Petroleum and Mineral Resources. EGPS Grant #: TF0A7805 It followed a previous Bank-executed technical assistance program (Petroleum Sector Inclusive Effective: June 2018; Closing: December 2020; Status: Closed Development, P150467, 2014–19). The initial project duration of 1.5 years was extended twice to 2.5 years, for many reasons: (a) The ministry had insufficient quality and quantity of staff to manage the challenges faced by the administration and the sector in particular; (b) a lack of experience with World Bank procurement processes caused delays in awarding contracts for two of the three project activities; (c) internal administrative and human resource matters at the ministry, including recruit- Context ing a successor after the resignation of the first director general early 2019; and (d) in Q3 2020, the Petroleum has been identified in Somalia since the 1960s, with hydrocarbons detected onshore and COVID-19 pandemic and the political uncertainty created by the change of the prime minister and offshore. The government aspires to start offshore exploration drilling activities in the near term. cabinet of the Federal Government of Somalia caused slippages in the implementation of the Somalia Regulatory oversight capability is nascent. Somalia and its international partners have committed to Petroleum Authority activities. Upon renomination of the minister of petroleum and mineral resources, aligning behind Somalia’s new National Development Plan (2017–20, 2020–23), reinforced by the New this project got back on track and finished in December 2020. Partnership for Somalia agreed at the London Conference in May 2017. The plan outlines the develop- ment of an inclusive petroleum sector that contributes to future income streams and socioeconomic Results development. The sector-specific plan target is “to build a robust institutional structure that consists of The development objective has successfully been achieved. All activities were fully implemented by the i) a Ministry that sets policies, ii) a Somalia Petroleum Authority (SPA) that regulates, and iii) a Somalia project closing date. Petroleum Company (SPC) that represents the commercial interest of the state.” The time frame of (ii) is driven by the first offshore petroleum licensing round since the 1990s, active from Q3 2020 to Q2 1. The Somalia Petroleum Authority was set up in July 2020 with the basic tools (institutional 2021, imminently to be followed by the bid evaluation, award, and exploration drilling. This technical and organizational structure, human resources framework) provided in December 2020. This assistance program contributed to items (i) and (ii). is expected to build the highly important institutional regulatory capacity as per the 2020 Petroleum Law. The project development objective is to strengthen the capacity of the Federal Government of Somalia 2. The National Communication Strategy and Implementation Plan was finalized at the end of 2019 to manage its petroleum sector. for the upstream sector enabling future rollout by the ministry, ideally before the start of explora- Approach tion drilling. The Federal Government of Somalia is responsible for the execution of the implemen- tation plan as it falls outside the scope of this project. Strengthening the capacity of the Federal Government of Somalia to manage the petroleum sector 3. The draft Strategic Environmental and Social Assessment terms of reference was finalized in May is performed by supporting the development of a national communications strategy to empower a 2019. It is available for any future significant technical assistance program in the sector. greater proportion of the Somali public, including Federal Member States, to effectively participate in the ongoing dialogue on using the petroleum deposits as a source of national wealth and to build trust 4. A project management unit was established and has been effectively operating since the end of in government institutions. Institutional capacity is built by generating the mandate, design, and imple- 2018. It is fully staffed by a coordinator, procurement specialist, and a financial specialist, who mentation of the Somalia Petroleum Authority in two phases: (1) defining its organizational structure all, throughout the project, received extensive coaching from the entire Bank task team around and associated job descriptions, and (2) development of business processes and operational proce- setting up processes, procedures, and systems, enabling monitoring and evaluation of project dure (not part of this technical assistance for budget reasons). Project management skills are devel- performance. oped within the ministry by the setup of a project management unit. The project was expected to deliver the following: (a) Development of basic tools enabling the Somalia Petroleum Authority to start executing its mandate (structure, job descriptions, process and proce- dures), (b) development of National Communication Strategy and Implementation Plan, (c) draft Strategic Environmental and Social Assessment terms of reference, and (d) project management 126 EGPS ANNUAL REPORT 2021 Appendix A | Completed, New, and Ongoing Activities, FY2021 127 Tanzania: Economic Impact of Mining Sector Regulatory Changes in Tanzania subcontracting, licensing); main characteristics of investors (e.g., junior exploration, large multina- tional, small-scale and medium mining) Project ID: P169633 • Methodology: Statistical regressions, industry and sector studies, company case studies, man- Total Budget: $83,202.77 agement interviews, data collection through firm surveys, and cost-benefit analyses of individual projects EGPS Grant #: TF0A9148 • Main determinants of mining FDI in Tanzania: Economic growth prospects, macroeconomic and Effective: March 2019; Closing: December 2021; Status: Ongoing political instability, mining potential, regulatory framework, physical and financial infrastructure • Competitiveness analysis: Benchmarking with mining countries with similar potential • Impact of new policies and regulations: FDI projections, impact on current account (FDI earnings projection, FDI position, FDI flows), impact on GDP, impact on labor productivity and employment Context • Conclusions and strategic options: Formulation of recommendations to achieve optimal benefit Tanzania is a mineral-rich country with large deposits of gold, diamonds, tanzanite, and coal, and mines sharing, avoid tax evasion, and create a forum for private-public dialogue to address tax disputes iron ore, base metals, uranium, and gemstones. Tanzania is Africa’s fourth-largest gold producer and and defuse crises accounts for 1.3 percent of total global production. It is also the only country in the world that produces tanzanite. Results Some initial reports were developed from desk research and literature reviews; field research surveys The extractive industries’ contribution to Tanzania’s total GDP was 4.8 percent in 2016 and 2017, with an in Dar es Salaam, Dodoma, Shinyanga, and Mara, which included interviews, consultations with key estimated 1.4 percent of GDP accounted for by the extractives informal sector. The extractives sector informants, and key stakeholders, including the Bank of Tanzania, Tanzania Revenue Authority (TRA), also contributes about 1.4 percent of formal employment in Tanzania. Tanzania Investment Centre (TIC), TCCIA, Chambers of Mines, FEMATA, and others; and visits to three The past few years have also seen a big increase in exploration for gas and oil along the coast. Recent gold-mining sites. oil and gas exploration activities have proved that there are offshore gas reserves in the south of the The team made several visits to Dodoma between October 2019 and November 2020 for government country, but no crude oil discovery has yet been made. Tanzania currently produces natural gas from consultations. These government consultations aimed to search for common ground and views on proven reserves in Mnazi Bay and on Songo Island. With significant offshore gas discoveries, the coun- strategic options, which included formulation of recommendations to achieve optimal benefit sharing, try is planning to become an exporter of liquefied natural gas in the future. tax evasion avoidance, and creating a forum for private-public dialogue to address tax disputes and While Tanzania has successfully attracted investments in the mining industry, concerns about the sec- diffuse crises. tor’s socioeconomic impacts were frequently raised by affected communities and other stakeholders. The study is being finalized. The report provides the following: Criticisms included the lack of institutional capacity to oversee the sector, inadequate value added in exported minerals, and insufficient integration of mining into the national economy, among others. • An analysis of the growth, trends, and patterns of mining FDIs’ inflow in Tanzania Intending to address these criticisms, the government in 2017 passed key reforms to the legal and reg- • An assessment of the impact of current policies and regulations on Tanzania’s competitiveness for ulatory framework governing the extractive industries. mining FDIs The project development objective is the preparation of an assessment of the impact of the 2017 regu- • An evaluation of the impact on FDI plans for the next 10 years latory changes in the mining sector in Tanzania and to facilitate the dialogue on the sustainable devel- • An estimate of the macroeconomic impact of the estimated changes on FDIs opment of the mineral sector between the government and the private sector. • A benchmark of Tanzania’s case against other mining countries Approach • Lessons and recommendations for Tanzania Activities related to the preparation of the study include the following: • Data collection: Foreign direct investment inflows in comparison with other capital sources, main countries of origin and destination of investment; subsectoral distribution by type of mineral; geographical distribution; form of investment (greenfield, acquisition, joint ventures, alliances, 128 EGPS ANNUAL REPORT 2021 Appendix A | Completed, New, and Ongoing Activities, FY2021 129 Uzbekistan: Uzbekistan Gas Sector Reforms Implementation (Support Uzbekistan Gas Sector design was developed for the SOE that enables tracking, tracing, and rectification of some current gas Roadmap (SUGSR)) system volume losses in the national gas transmission network. The upgrade of the network forms the basis for a possible increase in gas exports. Just-in-time support to SOEs about first wave reform-scop- Project ID: P172414 ing activities was also provided. Total Budget: $1,199,637 In phase 2 (November 2020 to December 2021), guidance about initial steps introducing a competitive EGPS Grant # Effective Closing Status gas market and input to modernization of the legal and regulatory framework were delivered, targeting TF0B1285 October 2019 December 2020 Closed the mid- and downstream gas value chain. While the World Bank initially agreed with the government TF0B3916 November 2020 June 2022 Ongoing of Uzbekistan on assisting with execution of the endorsed implementation plan by focusing on mod- ernizing the legislative framework, more recent dialogue is shifting toward gas sector decarbonization pathways. As there is budget remaining, some of these future activities might commence. Implementation Challenges Context This project is the Bank’s first Extractives Global Practice technical assistance to Uzbekistan’s Ministry The oil and gas sector is a major contributor to Uzbekistan’s GDP. The sector is not only a large reve- of Energy. The Ministry of Energy has a long-standing experience with receiving support from the nue generator but also a major supporter of capital investments, and it is one of the biggest employers Bank’s Energy Global Practice as well as from other international gas sector donors. The implementa- in the country. Uzbekistan is the third-largest natural gas producer in Eurasia and ranks 15th globally. tion challenges relate to changes in government administration and support received from other inter- Hydrocarbons, predominantly gas, contribute to more than 95 percent of the domestic energy sup- national donors. ply. About 25 percent of annual gas production is exported, mainly to Russia and China, through the Central Asia–China pipeline. The changes in administration enhanced the importance of the Ministry of Energy as the sector reform accountable agency. The initial government project focal point was the director of state enter- Reform is necessary, however, to secure supply and ensure affordability, among other reasons. The prises reforms within the Ministry of Finance. Upon formation of the Reforms Coordination Project development of the national oil and gas industry has been hampered by the outdated and nontranspar- Management Office (PMO) within the Ministry of Energy in Q2 2020, its head took over the focal point ent management system that is still in place, and production levels by state-owned enterprises (SOEs) role. This head was also nominated as chairman of the Government Project Steering Committee. This have been decreasing over the past decade. The average rate of proven natural gas reserves replace- refocus on overarching sector reforms resulted in the cancellation of the activity for introducing inter- ment is lagging. A growing national energy demand, coupled with aging gas and outdated energy national financing reporting standards to SOE financial statements. In April 2020, the director of the infrastructure, has led to a nonreliable domestic power supply and reduced potential for gas exports. Upstream Department was promoted to deputy minister of energy, oil, and gas sector. Over the sum- The average consumer gas tariffs are below cost recovery level and, on top of that, SOEs subsidize oil mer in 2020, the head of PMO, the project focal point of just a few months, also moved on to a new and gas tariffs, thus impacting their balance sheets. Consequently, the government faces challenges role, so the project focal point had to be replaced again. Though all within the initial phase 1 project of financing the replacement of antiquated infrastructure and of fostering monetization of gas discov- duration, this caused the government to shift the final approval of the proposed sector reform road eries by the private sector. In late 2016, the government announced a broad market-oriented five-year map and to reschedule the target date for the roundtable. reform program transforming the country into an open economy. This includes the modernization of its oil and gas sector for 2017–21. Presidential Decree #PP-4388, July 9, 2019, defines the measures Financed by another international donor, the SCADA concept design of a small section of Uzbekistan’s necessary to improve the management system of the oil and gas industry while increasing its compet- transmission gas network was developed by a third-party company. The activity had commenced by itiveness. EGPS funding supports the necessary reform of the gas sector. the time the Bank-funded design concept started covering the rest of the entire national network. The Bank initiated a liaison with this company after client approval. This company did not show intent The project development objective is to support reforms that improve security, sustainability, and gov- for collaboration. In the final report, the Bank included as a way forward some key steps to assure ernance of the gas sector. successful technical integration of the two concept designs prior moving to the next stage—that is, Approach maturing and tendering this facility engineering project. The Bank encouraged the government to take the lead in coordinating international donor support to execute the endorsed second wave Reform In phase 1 (October 2019 to December 2020), EGPS supported the second wave of reforms that Implementation Plan. It resulted in a clear ring-fenced scope of phase 2 technical assistance work tar- improve security, sustainability, and governance of the gas sector by the creation of the Gas Sector geting a liberalized gas market near term. Reform Roadmap and Implementation Plan. A government roundtable was organized to endorse the road map and implementation plan. A supervisory control and data acquisition (SCADA) technology 130 EGPS ANNUAL REPORT 2021 Appendix A | Completed, New, and Ongoing Activities, FY2021 131 Results Madagascar: Mining Technical Assistance In phase 1, the Gas Sector Reform Roadmap and Reform Implementation Plan for the second wave of Project ID: P173440 reforms was delivered to the Ministry of Energy in September 2020. At the end of October 2019, the Total Budget: $600,000 government, supported by the World Bank, organized the Reform Roundtable, which endorsed this road map and implementation plan. Last November, the SCADA design together with execution costs EGPS Grant #: TF0B2107 was finalized. Upon successful implementation by the state-owned transmission network operator, Effective: February 2020; Closing: June 2022; Status: Ongoing emissions commercial volume losses will be reduced. Several terms of references, related to human resources and investment competencies, were also drafted for SOEs, supporting scoping executions of the first wave of reforms. In phase 2, international best practices have been offered to successfully open the gas market in phases Context for third-party access by early July 2021. Recommendations will also be provided for the necessary modernization of the mid/downstream legal and regulatory framework (including a new gas law) by With a $527 GDP per capita in 2018, Madagascar’s population is among the world’s poorest. Madagascar the end of August. This would meet the government timeline to fully liberalize the gas market over the has embarked on an ambitious program of reforms laid out in the Plan Emergence Madagascar (PEM course of 2021/22. 2019–2023). The objectives assigned to the mining sector are to increase its contribution to the GDP as well as the benefits to the population. The government initiated a reform of the Mining Code in In March 2020, as part of phase 2, the Bank made a presentation about “Low Carbon Hydrogen November 2019, which raised concern among the private sector and civil society in terms of business Pathways” to the Ministry of Energy. It shared possible low-carbon growth options to help Uzbekistan climate and environmental and social standards. In December 2019, Madagascar’s president confirmed gain a better understanding of the broader economic value and impacts of investments in decarbon- the need for assistance from the World Bank to provide expertise as part of the design of key sectoral ization. The government was advised to timely start preparation for low-carbon energy transition, reforms. enabling monetizing domestic gas resources in the medium to long term. The project development objective of the proposed activity is to improve the capacity of government to design legal, fiscal, and institutional reforms for effective, transparent, and sustainable development of the mining sector. Approach Following discussions with the administration, the private sector, CSOs, and international partners and donors, the following priority needs were identified: (a) assistance in designing mining policy, legal, regulatory, and fiscal frameworks, including in the context of the COVID-19 crisis; (b) analytical work to promote the future exploitation of strategic minerals sustainably; and (c) assistance in streamlining the EITI. Implementation Challenges The sector is in poor shape overall because of the health and economic crises as well as a lack of direc- tion in policy. The project started in May 2020 and delivered a range of technical assistance on mining policy priorities as well as specific legal issues like the management of mining titles throughout the calendar year. However, the project was slowed down by the COVID crisis, which significantly delayed government ambition to reform the policy and regulatory framework. In early 2021, joint efforts with the IMF suc- ceeded in assisting the government with both modeling and fiscal policy advice based on international practices. The government, however, tried to impose nonconsensual measures that industry strongly rejected, which stalled the process until the government was completely reshuffled in August 2021. 132 EGPS ANNUAL REPORT 2021 Appendix A | Completed, New, and Ongoing Activities, FY2021 133 EITI implementation has been slow these past few months, but a new executive secretariat was Global:  Tax Challenges of the Digitalization of the Oil and Gas Sector: appointed in September 2020 and some government funding has been allocated in support of the A Developing and Emerging Economies’ Perspective initiative. Project ID: P170557 Results Total Budget: $110,000 On policy and legal technical assistance, a series of thematic policy briefs have been produced. These EGPS Grant #: TF0B5798 sum up the advice based on international experience for possible application in Madagascar, with a focus on the implications of the COVID-19 crisis. The briefs cover the experience worldwide on gold Effective: May 2021; Closing: March 2022; Status: Ongoing purchasing mechanisms established by certain states to build national reserves or for other purposes. Joint assistance with the IMF produced a range of modeling tools and policy advice on fiscal regimes. On the EITI, the project has commissioned an experimented firm (EY) to provide technical support and Context capacity building to the new team. The tax policy and tax administration challenges associated with the increasing digitalization of the On the climate-smart mining assessment, a study is being designed to estimate the potential for energy economy are areas of focus of a recent public consultation led by the OECD, focusing on base erosion minerals in Madagascar and possible actions to prioritize them in the context of growing demand, as and profit shifting, as well as a recent IMF Board paper on corporate taxation in the global economy. well as avenues for their exploitation in compliance with sustainable development principles. Increasing digitalization across industries is testing the fundamental elements and effectiveness of the global tax system—that is, where taxes should be paid (“nexus” rules based on physical presence) and what portion of profits should be taxed (“profit allocation” rules based on the arm’s length principle). Three important phenomena are associated with digitalization: scale without mass, reliance on intan- gible assets, and the centrality of data emphasize an old taxation challenge arising from the global- ization of value chains and the tax planning by multinational enterprises. Notwithstanding the notable advancement in standard setting and international cooperation, vulnerabilities remain and are exacer- bated by the growing trend of digitalization in industries across the board. Because of globalization and the digitalization of the economy, some businesses can develop an active and sustained engagement in a market jurisdiction, beyond the mere conclusion of sales, without nec- essarily investing in local infrastructure and operations. Although the oil industry has so far adopted a cautious approach to digitalization, persistent low-price scenarios, competition from alternative sources of energy, and falling return-on-shareholders’ investment are pushing companies to close the digital gap, moving beyond mechanizing processes and sensorizing equipment toward integrated ana- lytics, augmented decision-making, and smart equipment and intelligent robots, with little to no phys- ical presence required. While most of these initiatives are likely to drive cost efficiency and improve operational resilience to disruptors (including pandemics like COVID-19), their deployment requires collaborative models across affiliates and third-party companies (with associated shifting of profits) as well as increased emphasis on intangibles, with potentially important effects on government tax revenue. Currently, no research is available on the challenges associated with taxing oil and gas activities in an increasingly digitized world, or on the economic impact and administrability of emerging tax-schemes in capacity-constrained petroleum-producing countries. Project development objective: To advance the understanding of upcoming challenges for petro- leum-producing developing countries’ tax policy and tax administration associated with the increasing 134 EGPS ANNUAL REPORT 2021 Appendix A | Completed, New, and Ongoing Activities, FY2021 135 uptake of digital technologies in the oil and gas upstream sector and improve the quality of the World Bolivia: Lithium Mining Bank’s support to its client countries. Project ID: P170557 Approach Total Budget: $140,000 This grant will finance research to advance the understanding of upcoming challenges for petro- EGPS Grant #: TF0B3105 leum-producing developing countries’ tax policy and tax administration associated with the increasing uptake of digital technologies in the oil and gas upstream sector. To this end, a team of tax and digital Effective: July 2020; Closing: June 2022; Status: Ongoing economy experts has been identified and is carrying out research on digital trends in oil and gas explo- ration, development and production activities, and their impact on organizational models and taxation. Questionnaires and focused group discussion for data sourcing and validation of the research hypoth- eses will complement desk research. Context Implementation Challenges Beyond the serious challenges that COVID-19 is posing to the country’s economy, this year the founda- This is a new area of research. Data required to model the impact of digitalization trends on tax and tions of Bolivia’s economy are going to be tested. Historically a global player, Bolivia’s mining industry government revenue are not publicly available and will need to be sourced through questionnaires and seems to have stalled. Although investment in mining has been consistently low, the sector remains voluntary contributions from the private sector and industry regulators. critical to the national economy. Attempts to consolidate a strong and modern state-managed mining sector have not been very successful. Results Long-term access to lithium chemicals is essential for the global battery supply industry that supports The research outline was finalized and discussed with key stakeholders. A preliminary analysis of digi- the expansion of electric vehicles and energy storage from renewables. The lithium market is growing talization trends as they apply to the oil and gas upstream industry was carried out in July. The research exponentially, but it is marked by volatility in the short term. According to the USGS’s latest lithium team is currently preparing the questionnaire and identifying the target group of respondents, with a report, Bolivia has the largest known resources of lithium in the world, but this hasn’t been translated view to launch the survey by mid-September 2021. into quantified reserves. Despite its resource riches, Bolivia has so far failed to become a lithium indus- try player. In 2008, the country branded lithium as a strategic resource and national priority. By all accounts, lith- ium policy implementation has moved slowly, though some claim that Bolivia has also made progress. For its first commercial lithium project, Bolivia planned to construct a midsize operation plant capable of producing 30,000 tons of lithium carbonate a year at Salar de Uyuni. To seize the emergent demand for lithium hydroxide, in late 2018 the Bolivian government also signed a joint venture agreement with the German firm ACI Systems. In early 2019, Bolivia chose a Chinese consortium to become its strate- gic partner on new $2.3 billion lithium projects, giving China a potential anchor in the country’s huge untapped reserves of lithium. The size of the opportunity for Bolivia is still big, but its development depends on a sound policy approach. The project development objective is to prepare a policy note on lithium informed by a stock-taking of the current state of the Bolivian lithium policy implemented over the last decade, evaluating overall progress, results, shortcomings, and challenges. 136 EGPS ANNUAL REPORT 2021 Appendix A | Completed, New, and Ongoing Activities, FY2021 137 Approach Peru: Support for Improved Management of Mining and Sustainable Development The team will conduct a number of activities with regard to recommending a road map for developing Project ID: P173795 responsible lithium mining in Bolivia, including the following: Total Budget: $450,000 • Advice for improved management, regulations and institutional (?) framework for the lithium EGPS Grant #: TF0B2452 policy • Advice on strategies for addressing technical, economic, environmental, and social challenges Effective: February 2020; Closing: December 2021; Status: Ongoing • Advice for a strengthened institutional framework for improved governance • Analysis of alternative path for the lithium policy, equating pros, cons, and trade-offs Implementation Challenges Context Because of the COVID-19 context, the instability of the previous government, and the difficulties to From approximately 2008 to 2018, Peru witnessed an average economic growth rate of 5 percent. access and the difficulties to access information from the state lithium company (Yacimientos de Litio Poverty was reduced thanks to improved macroeconomic management and increased investment, Bolivianos), the consultancy faced many implementation challenges, which were mitigated through particularly in the mining sector. At the same time, Peru underwent an exceptional moment of politi- virtual meetings, contacts with other specialists and different sources and levels of government, as cal instability with the president’s resignation in 2018 and the closure of Congress in 2019. Against this well as comprehensive reports elaborated by the lithium state company at the request of the Bolivian background, public and private investments have slowed down, including in the mining sector, which is Congress. the main contributor to GDP growth. Results Despite its importance to the Peruvian economy, the mining sector faces major challenges in terms of governance, environmental, and social sustainability. Local economic benefits in the “resource-rich During the last fiscal year, EGPS has financed a comprehensive study on lithium in Bolivia. This coun- economic corridors,” or mining regions, remain limited. The sector still lacks a clear, demonstrative case try is highly relevant to the coming electric vehicle era because it holds the world’s largest lithium of territorial development with transformational impact on the well-being of people living in the min- resources. The team has initiated the preparation of a publishable summary of the detailed research ing regions. The World Bank and the Peruvian government advanced discussions to identify possible previously done, including an analysis of the current and future lithium market, technological and reforms to respond to these challenges. regulatory trends of the global lithium industry, the global energy lithium value chain, as well as the legal, institutional, and regulatory framework, competitiveness and sustainability, alternative paths to In the short term, the government is considering adjustments to the legal and institutional framework advance along the value chain, industrialization strategy, and public policy of lithium and other evap- that regulates mining operations and investments. In the medium term, the government is looking to orite resources in Bolivia. This examination will be complemented with an environmental assessment promote investments in the economic corridors that support broad-based economic growth within a focused on the use of water in the Bolivian lithium industry considering the lessons learned from the sustainable territorial development approach. To this end, a technical discussion with the Bank pro- experience of Argentina and Chile. posed regulatory improvements to the mining sector in matters such as exploration, tax stabilization contracts, mining procedures and permits, mine closure, environmental management, and prior con- sultations. The government has asked the Bank for technical assistance to address these challenges. The project development objective is to support both the regulatory framework for sustainable use of mineral resources and to identify and prepare interventions to support sustainable territorial develop- ment in resource-rich regions. Approach The project focuses on producing assessments around the regulatory framework for sustainable use of mineral resources as well as sustainable territorial development in resource-rich regions. The assessment of best-practice regulatory reform and the dissemination of results through consultative workshops with key stakeholders are informing discussions within the government about possible improvements to the regulatory framework. To inform the institutional design and implementation support setup for 138 EGPS ANNUAL REPORT 2021 Appendix A | Completed, New, and Ongoing Activities, FY2021 139 proposed future interventions at the subnational level, a territorial assessment was conducted around Western Balkans:  Regional Platform for Coal Regions in Western Balkans and Ukraine the following themes: subnational fiscal capacity and stakeholder mappings, soil and subsoil natural (Regional Platform) Initiative’s page on GOXI resources; environmental, demographic, socioeconomic, and administrative characteristics; access and Project ID: P171194 quality of infrastructure and basic public services; and economic activities, productive links and value chains. In this manner, the project provides just in time support to the Ministry of Energy and Mines Total Budget: $140,000 (MINEM). EGPS Grant #: TF0B3682 Implementation Challenges Effective: June 2020; Closing: September 2021; Status: Ongoing The main challenge on implementing the planned activities referred to government instability and excessive rotation of mining sector authorities. Ministerial changes within MINEM have affected the pace of implementation. Six ministers were appointed between January 2020 and October 2021, along Context with new vice ministers. The project team is currently interacting with the new sector’s leadership to get them up to speed, following the recent government transition to the new administration of The World Bank is committed to helping countries achieve their nationally defined clean energy tran- President Castillo. sitions. In 2019, the new trust fund initiative Supporting Energy Transition in Coal Regions was estab- lished. Under Component 1 of the initiative, the project team is working closely with the European Results Commission to establish a Regional Platform for Coal Regions in Western Balkans and Ukraine, which The project will inform two eventual national investment programs or projects, one aimed at strength- will convene 14 different coal regions undergoing energy transition within that geography to (a) share ening the mining sector management framework and institutional capacity, and a second aimed at knowledge and compare experiences, (b) conduct peer-to-peer learning activities, (c) receive formal articulating public and private sector investment in regional investment in the southern corridor to eco- training to prepare for the transition, (d) receive World Bank technical assistance, and (e) implement nomic opportunities for the local population. For this, the grant has made progress on the following: transition programs. • Setting up a multisectoral government working group through a ministerial resolution that drives GOXI (www.goxi.org) is a standing online platform for dialogue, interactive learning, connections, inno- the initial stage for drafting a national multisectoral mining policy vation, and collaboration across stakeholder groups, countries, and initiatives that aims to strengthen governance of the extractives sector. For this proposed activity, a dedicated space will be created on • Completion of the “business case” report (Analysis of Pertinence) by the working group, which GOXI named “Regional Platform for Coal Regions in Western Balkans and Ukraine,” which will become MINEM delivered to CEPLAN, the national planning authority a membership-based interactive platform for all coal regions in transition in the Western Balkans and Once CEPLAN reviews and approves the Analysis of Pertinence, the government would be able to Ukraine as well as relevant stakeholders. The project development objective is to facilitate knowledge launch formally a systematic and participatory process of policy formulation to develop the new exchange, experience sharing, and learning among coal regions in the Western Balkans and Ukraine. national mining policy for Peru. This grant directly supports Component 1 and Component 3 of the EGPS` Supporting Energy Transition in Coal Regions Program. It is aligned with the World Bank and the Energy and Extractives Global Practice’s objectives by facilitating a managed process during the global energy transition, and by pro- viding timely knowledge and assistance on energy transition to clients during the COVID-19 pandemic. Approach Activities relate to the establishment of an online platform specific to the Western Balkans and Ukrainian region and training relevant stakeholders to ensure functionality and use. Implementation Challenges learning The project faced delays in the overall development of the Coal Regions Learning Academy e-­ courses. Once knowledge providers for the different modules of each course were identified, the College of Europe liaised closely with them on the delivery of knowledge contributions, which included available research and/or practical lessons learned (case studies) and other relevant knowledge resources. However, the delayed delivery of content by some knowledge providers slowed down the 140 EGPS ANNUAL REPORT 2021 Appendix A | Completed, New, and Ongoing Activities, FY2021 141 overall completion of courses. Consequently, this pushed the proposed timeline for the College of basic definitions, processes, and literature, were also developed and are part of the Learning Academy’s Europe to curate and package the knowledge pieces within the learning curriculum and generate knowledge repository. An interactive version of the three-by-three assessment methodology dash- SCORM packages for each course to be uploaded in the learning management system (LMS) for the board is also accessible from the Learning Academy’s homepage, pointing users to relevant knowledge Learning Academy on GOXI. To help mitigate prolonged and future delays, the Bank team supported resources. By the end of 2021, six online courses with their respective course materials will be available, the College of Europe in facilitating outreach and follow-up with knowledge providers on the delivery allowing participants to progress module by module, passing tests, and finally obtaining a certificate of their knowledge contributions. In addition, the Bank team worked with Assyst to provide a flexible of completion. In addition, users will be able to interact with knowledge providers included in GOXI’s approach where the College of Europe could deliver SCORM packages for each module as soon as member database and engage in discussions with other members. It is expected that additional course these were generated, without waiting to have the full course finalized. This measure has helped facili- offerings prepared for the Learning Academy will also be included. tate the review and user acceptance testing (UAT) processes that are required before moving courses to production in the LMS. Given the timeline delays, the Bank team requested a three-month extension from September 30, 2021, to December 31, 2021, to help with the ongoing activities. The request was approved, and the team is confident the first three e-learning courses will be available in the LMS by the end of October 2021, with all six available by December 2021. Results The GOXI Platform Initiative in Support of Coal Regions in Transition in Western Balkans and Ukraine (WBUA) was officially launched virtually on December 10–11, 2020. Over 180 participants from Bosnia and Herzegovina, Germany, Greece, Kosovo, Montenegro, North Macedonia, Poland, Serbia, Ukraine, and the United States joined the two-day event online to share experiences and lessons learned on the energy transition. The annual meeting of the initiative took place on June 23–24, 2021, with wide representation from coal regions, governments, civil society, workers, enterprises, and development agencies. After the launch of the GOXI Platform Initiative in Support of Coal Regions in Transition in Western Balkans and Ukraine, activities focused on the development of a dedicated LMS on GOXI that will host the Coal Regions Learning Academy for the Western Balkans and Ukraine. During the development phase, the Bank team worked closely with Assyst in the interactive design of the LMS to ensure full functionality and the creation of dashboards for the various users (students, course coordinators, and administrator) of the Learning Academy. The Leaning Academy will initially host six e-learning courses composed of five modules each and provide access to key knowledge resources. College of Europe, the World Bank’s knowledge partner for the Learning Academy, has been respon- sible for substantive input and preparation of the e-learning courses. For the content development of the online courses, the College of Europe conducted surveys to identify stakeholders’ topics of interest and selected experts as knowledge providers for the different modules under each course. The courses use a logical framework aligned with the Bank’s three-by-three assessment methodology dashboard supporting energy transition in coal regions: (a) the three-phase programmatic approach (pre-closure, closure, regional transition), and (b) the three key thematic areas (institutional governance, people and communities, and environmental reclamation and repurposing land and assets). The first three courses focus on horizontal learning; the next three provide sectoral deep dives related to energy sec- tor transition. As of September 2021, the LMS contains Course 1: Just Transition Process, after undergoing UAT. In addition, the knowledge packages curated by Ecorys, which include background documents pointing to 142 EGPS ANNUAL REPORT 2021 Appendix A | Completed, New, and Ongoing Activities, FY2021 143 Western Balkans: Decarbonization and Clean Energy Transition in the Western Balkans Region 1. Activity 1: The coal notes are 80 percent complete. 2. Activity 2: The gas transition study is in its first round of peer review. Project ID: P171194 3. Activity 3: The perception survey will be launched in August 2021. Total Budget: $360,000 4. The Future of Jobs in Coal Regions: The Quality Enhancement Review was completed in April EGPS Grant #: TF0B4952 2021, and its Final Decision Meeting is scheduled for September 2021. Effective: January 2021; Closing: December 2022; Status: Ongoing Context The World Bank’s support to coal regions in transition draws on lessons learned from current projects in Bulgaria, Greece, Herzegovina, Serbia, Ukraine, and Western Macedonia, as well as long-standing experience from Poland, Romania, and the Russian Federation. The Bank is advising countries on solu- tions for decarbonization that are economically viable, tailored to their unique needs, and reflect the latest policy, financial, and technological innovations. As part of the Supporting Energy Transition in Coal Regions Initiative, the Bank together with the European Commission assists coal regions in devel- oping road maps that implement effective policies and strengthen institutional capacities. Ongoing assistance to coal regions can take many forms, spanning a variety of challenges and solutions associ- ated with regional transformation. The project development objective is for assisted coal-dependent regions in the Western Balkans to be equipped to manage the energy transition they face. The grant focuses on enhancing the capacity of coal regions to plan for a just transition through job creation, repurposing of former mining lands, and stakeholder engagement. Approach Building the evidence base for decarbonization by assessing the coal sectors, understanding the cur- rent plans for decommissioning and the socioeconomic impact of coal mine closure. The project team will also investigate how natural gas can help with the energy transition, along with demand-supply forecasting for natural gas. Furthermore, the team will commission research to develop an understand- ing of constraints to a just transition. The purpose of the survey and accompanying focus group discus- sions will be to highlight to client countries where efforts in citizen and broad stakeholder engagement will need to be made to ensure a just transition. Results The project has made good progress against the intended deliverables. The status reports for the coal sectors and thermal power plant in the region are almost finalized. The gas transition study on the potential role of natural gas in WB6 energy transition has completed the first round of peer review and has been shared with the Western Balkans Country Management Unit and country managers for fur- ther comments. Data collection has been finalized for the regionwide stakeholder survey to enhance understanding of the constraints to a just transition. 144 EGPS ANNUAL REPORT 2021 Appendix A | Completed, New, and Ongoing Activities, FY2021 145 Global: Extractives-Led Local Economic Diversification— Design and management of an online ELLED CoP to connect policy makers, companies, practitioners, Knowledge Program Broadening the Impact of ELLED COP and other stakeholders and support continuous professional learning. The CoP was launched in 2015 COMPONENT 3 as one of the outcomes of the first Global Conference on Local Content Policies (Vienna, Austria, Project ID: P156743 LOCAL VALUE 2014). The CoP is an invitation-only platform that targets local content experts from around the world AND among extractive companies, policy makers, practitioners, nongovernmental organizations, academia, Total Budget: $1,138,387 and donors. Since 2020, the CoP is jointly administered and financed by EGPS and Engineers Without DIVERSIFICATION EGPS Grant # Effective Closing Status Borders Canada. It relies on the voluntary contribution of time and knowledge of its members. TF0A4721 March 2017 December 2018 Closed Its program focuses on “frontier” knowledge and practice, with themes selected by the CoP program TF0A4731 March 2017 December 2019 Closed managers based on observed trends and input from CoP members and program donors. This strategy TF0A4854 April 2017 July 2020 Closed is compatible with the CoP’s limited financial resources and core team time to actively manage the TF0A8299 August 2018 September 2021 Closed CoP programs. This strategy also aims to capture and retain members’ limited time and attention and TF0B2317 March 2020 August 2022 Ongoing contribution by proposing innovative content. CoP members have access to local content data and practice through quarterly webinars and eDiscussions, collection and dissemination of relevant papers and documents, a monthly newsletter, and “Ask the CoP” services. Results Context In FY2021, the ELLED CoP continued to rank very highly among the World Bank Group’s various CoPs, Extractives-led local economic diversification (ELLED) is a complex and rapidly evolving policy area. with a strong and growing member base and a large body of knowledge on extractives policies. At Policies and regulations differ widely among countries and, at times, between oil and gas and mining in the end of May 2021, the CoP had 500 members (a 15.7 percent increase from May 2020). Members’ the same country. While these policies have the potential to stimulate broad-based economic develop- engagement rates are strong: The monthly newsletter’s open rate stands far above sector average at ment, their application in petroleum and mineral-rich countries has achieved mixed results. For ELLED 40.4 percent (versus 24.1 percent for the nonprofit sector worldwide, and 26.5 percent for the govern- policies to achieve their potential, there is a need for creating common understanding, shared values, ment sector worldwide), and has a click rate of 6.8 percent (versus 2.6 percent for the nonprofit sector and collaboration among stakeholders. worldwide, and 3.6 percent for the government sector worldwide). The annual member satisfaction survey shows that 88.9 percent of respondents find the CoP features useful and relevant to their work, This knowledge program is part of a wider initiative aimed at supporting inclusive growth by promot- with 66.7 percent classifying the CoP as very useful; 87.5 percent would recommend the CoP to a col- ing innovation, long-term competitiveness, and regional synergies. league or friend, and 55 percent post on the CoP at least once a month. The project development objective is to address knowledge gaps for improved policy design and implementation, improve awareness, and provide a platform for knowledge creation and sharing, and sustained professional learning. Activities The objective of this project will be achieved through selected research targeting knowledge gaps, outreach and advocacy, workshops and training programs, and the establishment of an online com- munity of practice (CoP) to support the development of strategic partnerships. The program will also provide the theoretical foundations for World Bank Group operations. There are three deliverables for this program of work: • Knowledge creation • Leveraging the mining sector to achieve green growth—delivered March 31, 2019 • ELLED interactive framework—delivered December 31, 2019 • Knowledge sharing and outreach—ELLED CoP 146 EGPS ANNUAL REPORT 2021 Appendix A | Completed, New, and Ongoing Activities, FY2021 147 Global: Decarbonization Pathways for the Oil and Gas Sector Approach Project ID: P156743 The purpose of the proposed knowledge work is to identify opportunities and strategies to facilitate and accelerate the transition of the hydrocarbons sector to a low-carbon future. To this end, the study Total Budget: $400,000 will identify best-practice strategies being implemented by both the private sector (operational inno- EGPS Grant #: TF0B5225 vations) and the public sector (helpful policies that support a robust enabling environment), distill les- sons learned and guidelines for reducing the carbon impact of oil and gas operations addressing both Effective: February 2021; Closing: April 2022; Status: Ongoing climate mitigation and adaptation, and socialize findings with industry and policy professionals and incorporate real-time feedback into the guidelines. Results Context A competitive tender was launched to identify suitable firms to carry out the assignment. The selection A successful transition to a green economy requires a focus on industries and institutions that have process is expected to be completed in October 2021. a meaningful economic impact. The oil and gas industry, which is a critical economic driver for both A key contribution of the study will be the creation of the oil and gas sector decarbonization assess- producing and importing countries, is one such industry. With an estimated 5.4 gigatons of carbon ment framework (OGDAF), whose purpose would be to provide a clear approach/goalpost toward dioxide equivalent emissions (scopes 1 and 2), representing approximately 15 percent of overall energy understanding how ready a country is to support the decarbonization of its oil and gas sector. The sector GHG emissions, the oil and gas industry is facing increasing demands to clarify how its oper- decarbonization of oil and gas operations requires (a) a clearly defined operating framework that is ations affect energy transition efforts and the path to decarbonization toward achieving the goals of consistent with good practice, (b) sound implementation, and (c) effective systems for accountabil- the Paris Agreement. ity. The framework would be used to identify practical steps toward the decarbonization of the sector A clear opportunity exists to utilize the oil and gas industry’s unique capabilities for a greener econ- in oil and gas producing developing and emerging economies, including the potential economic and omy: large-scale engineering and project management; cutting-edge visualization, measurement, and social impacts. It could also be used as a tool to identify potential vulnerabilities and to help prioritize analytical tools; and sizable and long-term capital investment. potential areas of focus as well as in the self-evaluation of progress, and to facilitate discussions with different stakeholders on their respective roles and responsibilities. These factors could make a critical contribution to driving capital-intensive clean energy technolo- gies to maturity (through economies of scale and scope), helping to tackle emissions. This includes the development of carbon capture storage and utilization (CCUS), low-carbon hydrogen, biofuels, and offshore wind. For example, according to the U.S. Energy Information Administration`s latest esti- mates, the oil and gas industry accounts for over 33 percent of CCUS investment, and 75 percent of the carbon dioxide captured today in large-scale CCUS facilities comes from its operations. The oil and gas industry has ample potential to contribute to a low-carbon future through the decar- bonization of its core business as well as investment in lateral technologies for which its capabilities position it uniquely. Closer collaboration between industry, governments, and other stakeholders could result in viable business models for large-scale investment and boost their deployment. For the sector to actualize this potential, well-designed policies from governments (including carbon pricing and taxation) are necessary to promote research, development, and large-scale deployment of the relevant technologies and infrastructure, which in turn will require the identification of a clear tran- sition path for industry to navigate. Addressing this challenge will require programmatic and targeted support from development organizations, nongovernmental organizations, and private sector inves- tors. This knowledge-generation project intends to inform the debate on the extent and prioritization of petroleum sector reforms toward a low-carbon energy transition. 148 EGPS ANNUAL REPORT 2021 Appendix A | Completed, New, and Ongoing Activities, FY2021 149 Global:  Water Management in Oil and Gas Operations: Industry Practice Approach and Policy Guidelines for Developing Countries The grant will finance the review of industry practice and public policy regarding freshwater abstrac- Project ID: P156743 tion and the management of produced water in oil and gas upstream operations, with the objective to identify policy and regulatory options for the management of water in oil and gas upstream operations. Total Budget: $500,000 Implementation Challenges EGPS Grant #: TF0B5071 This specialized area of research and policy work requires knowledge of upstream oil and gas opera- Effective: February 2021; Closing: April 2022; Status: Ongoing tions and of water treatment technologies and uses. Publicly available data on water production and water abduction in oil and gas operations are scarce. Yet access to such data is required to prioritize policy and regulatory solutions as well as to identify cost-effective solutions. We anticipate this lack of Context data to be the main challenge for this knowledge work. The industrial sector, including the oil and gas industry, accounts for 7 percent of global withdrawal Results of freshwater. In the United States, where more detailed water data are available, the oil and gas sec- tor accounts for around 2 percent of all water withdrawals, corresponding to 30 million cubic meters A competitive tender was launched in July to identify firms with expertise and a network of experts of freshwater in 2010. This percentage is expected to be much higher in countries affected by water that are necessary to carry out the research. Access to a wide network of international experts is one scarcity. of the features that would improve access to information and cost-effective implementation. In many countries, freshwater remains the major source of water for oil and gas operations and water produced during oil and gas operations is dumped on the earth surface often with insufficient treat- ment. If properly treated, produced water from oil and gas operations can serve to create important links in the local economy. Beneficial uses of produced water can be grouped in three categories: land application (e.g., irrigation, road spreading), introduction to water bodies (e.g., discharges to surface water, injection, or infiltration to aquifers), and other industrial uses (e.g., industrial feed streams, prod- uct, or mineral mining). Regulatory approaches for produced water vary considerably across countries and destination use. While some produced water management activities are subject to regulatory standards, others are subject to operational standards set by operators or end users. Developed economies such as the United States and the United Kingdom are generally held as examples by other countries looking to establish guidelines and policy signals to decrease the environmental impact of wastewater and pro- mote its beneficial use in a safe and sustainable manner. Water treatment and disposal arrangements are typically part of the field development plans sub- mitted by the operator to a ministry of petroleum (or other relevant government authority). Because water is not part of a petroleum ministry’s mandate, data on water production and abduction in oil and gas operations are typically not recorded in databanks or analyzed in detail. Limited capacity and low inter-ministerial collaboration often mean that these data are not shared with the relevant water authority for analysis and policy making. Data and information on the volume and quality of water pro- duced by the oil and gas industry are scarce, particularly in developing countries. As such, the aware- ness of policy makers of the challenges and opportunities associated with water produced is very limited, even in water-stressed regions. 150 EGPS ANNUAL REPORT 2021 Appendix A | Completed, New, and Ongoing Activities, FY2021 151 Global: EGPS-2 Emergency Response: Artisanal Mining Communities Approach Impacted by COVID-19 COMPONENT 4 Using a phased approach spanning three rounds of financing to date, the range of interventions con- Project ID: P175100 sidered by the emergency response includes but is not limited to activities that do the following: LOCAL COMMUNITIES Total Budget: $5,200,000 • Address health and well-being impacts by improving access to clean water, sanitation stations AND ECOSYSTEMS and health information campaigns. EGPS Grant #: TF0B3823 • Support social protection measures for miners and their households, such as assistance for min- Effective: September 2020; Closing: September 2022; Status: Ongoing ers who have had to re-enter their home communities due to temporary mine closures or special measures to protect children during this crisis period. • Assist with alternative livelihoods for miners wishing to transition out of ASM. Background • Support women to mitigate social and health vulnerabilities from the crisis, such as job loss, In developing countries, the COVID-19 crisis is having an immediate and amplified impact on the poor- income reduction, childcare, and transition education. est and most vulnerable regions. The 40 million people working in informal and often illegal, precar- • Monitor capacities to prevent encroachment into protected areas and other sensitive ecosystems. ious conditions in artisanal and small-scale mining (ASM) worldwide are particularly vulnerable. This • Facilitate trade and avoid an increase in smuggling, illicit financial flows, and financing of orga- emergency response builds on the World Bank’s work to promote ASM formalization through long- nized crime. term engagement and government-owned policy reforms. It uses the full range of EGPS capabilities, responding to crises as they unfold in vulnerable, rural ASM areas. • Build access to finance and other forms of support to small mining cooperatives and entities. • Strengthen the organizational capacity of local governments, cooperatives, and other ASM enti- In April 2020, EGPS financed a systematic data collection exercise on how COVID-19 had affected ASM ties to provide ongoing support to these communities. communities. Working with 17 partners across 22 countries, the Bank was able to quickly investigate and publish on the DELVE platform specific COVID-19 impacts on select ASM communities that inform Top-up funding has also been made available to round 1 grantees to scope out, scale out, or prolong this emergency relief response. The research findings revealed encouragingly high levels of COVID-19 activities where the need for top-up funding was demonstrated and where the organization has suc- health awareness in remote mining communities. They found that miners were relatively confident that, cessfully implemented the original project. Scope out refers to having the same beneficiaries as the if needed, they have adequate access to health support. However, an overwhelming number of miners round 1 grant but with different activities. Scale out refers to having the same activities as the round 1 are facing food insecurity because of cost inflation of basic goods and reduced income resulting from grant but with different beneficiaries. Prolong refers to keeping the same beneficiaries and the same temporary mine closures, a drop in mineral prices, and disruptions in the gold trade chains of ASM- activities as the round 1 grant to prolong the benefits of project implementation. sourced products/materials. The first round of funding of $948,189 began allocation at the end of 2020, going to 22 organizations The findings informed the design of a targeted COVID-19 emergency response facility under EGPS. The for short-term (three-to-six-month) activities related to health awareness, training on environmentally emergency response was formally established in June 2020 with seed funding of 1 million Swiss francs friendly mining methods, gender-based violence, and alternative livelihoods and economic support to from the Swiss State Secretariat of Economic Affairs (SECO). The window has since received $4.8 mil- mining cooperatives and self-help groups. Emphasis was on COVID-19 awareness and prevention and lion from Belgium and Germany. The EGPS emergency relief response addresses ASM vulnerabilities efforts to mitigate pandemic impacts. Recipients spanned 18 countries, with just over half of the orga- and provides short-term assistance to a range of international, regional, national, and local organiza- nizations in Africa and two each in East Asia and the Pacific, South Asia, and Latin America and the tions engaged in artisanal mining. A total of $5.2 million was approved, for a project from October Caribbean. 2020 to May 2022. For round 2, from February 2021 to May 2022, the focus moved to medium-term (up to one year) The overarching goal is to strengthen local community benefits for all and mitigate adverse impacts on activities, with $1,745,641 awarded for five grants: one global project covering Africa, East Asia and the local ecosystem. The aim is to strengthen institutional capacity to deliver services among govern- the Pacific, South Asia, Latin America and the Caribbean, and three awards for Sub-Saharan Africa. ments as well as ASM rural communities. The project objective is to respond to COVID-related impacts Activities worked on formalizing and aiding disrupted supply chains, environmental cleanup, and min- in select artisanal and small-scale mining communities. ing site improvements, as well as capacity building of government monitoring systems, local mining cooperatives, and other mining-related groups. Funds also helped with expansion and continuation of 152 EGPS ANNUAL REPORT 2021 Appendix A | Completed, New, and Ongoing Activities, FY2021 153 phase 1 COVID-19 awareness campaigns and activities. Research on innovation to reimagine the dia- Global: Closing the Gender Gap in Extractives mond supply chain is under way along with work on formalization, network building along the ASM Project ID: P168863 value chain, and ASM exchange platforms. For round 3, most of the four projects are in preliminary stages, with two contracts released in August 2021 and about to be launched and another selection Total Budget: $443,358 process for a project in Burkina Faso on hold. A final project in Colombia–Brazil is currently being eval- uated. Final round 3 tenders with a $1,125,000 budget were released in May 2021. These focused on EGPS Grant # Effective Closing Status Latin America and both economic and environmental activities, with four expressions of interest. Of TF0A8675 October 2018 August 2021 Closed four awards, three will target formalization and three will target gender mainstreaming. TF0B0945 August 2019 June 2021 Ongoing Implementation Challenges Many projects faced challenges in implementation, with most primarily related to the COVID-19 pan- Context demic. This included challenges of staff contracting COVID-19 (Côte d’Ivoire), COVID-19 defiance among beneficiaries (Afghanistan, Burkina Faso, Colombia, Democratic Republic of Congo, India, Nigeria), and The World Bank has committed to increasing the number of operations (IDA and IBRD) that are gender implementation of lockdowns and restrictions (Afghanistan, Brazil, Colombia, Côte d’Ivoire, Ghana, tagged. Gender tagged implies that a lending project intends to bring about transformational change India, Indonesia, Kenya, Mongolia, Mozambique, Uganda). In many projects, impacts were addressed when it comes to gender gaps in development. These gaps are (a) human endowments, (b) owner- through the use of or change to remote tools and activities (Brazil, Ghana, Mongolia). In some cases ship of assets, (c) better jobs, and (d) voice and agency. There is a need to assist in task teams, whose (Mongolia), this transformation led to additional challenges because of low levels of digital literacy, projects are in the pipeline for FY2019 and FY2020, designing gender elements into their projects to although the team in Mongolia and others note this as opportunities to introduce new levels of learn- increase the chances of receiving the gender tag. ing among beneficiaries. In several places, testing of staff for COVID-19 was needed (Guinea, India, Lending projects in Afghanistan, Burkina Faso, Ghana, Guyana, Mali, and Niger have benefited from Mozambique). In other instances, activity locations were swapped (Burkina Faso, India, Nigeria). Other the gender team expertise. The Guyana and Mali projects successfully went through the World Bank projects (Burkina Faso, Ghana, Mozambique, Nigeria, Uganda) also faced other general external chal- Board approval and were gender tagged, giving the department a 100 percent gender-tag rating for lenges, including local elections, regional insecurity, conflict at mining sites, or challenges from local FY2019. The gender team’s contribution typically involves assistance with completing the identification response to issues related to women’s rights. More than 85 percent of grantees had previously never and analysis of the specific gender gaps and their underlying reasons, and incorporation of the tangi- received grants from the World Bank and most of them are local grassroot organizations. The project ble and measurable remedy actions and results indicators into the project design. To further promote team provided support and guidance to organizations and thereby helped increase their organizational the knowledge and lessons learned shared at the conference among the gender team, the team has capacities. produced a video series that documents the conference and highlights its most informative and telling Results discussions. The team has also been working on a special issue in the Extractives Industries and Society journal, which will include papers submitted by conference panelists as well as other experts on the The project comprised two phases and three rounds of grants, resulting in 28 grants issued (a third of topic. The team is now preparing for the Second Global Gender Conference on Oil, Gas and Mining, to which included women mining organizations). Eighty percent of recipients led COVID-19 awareness be held in 2020. The theme of the conference will be developed around the future of mining and its campaigns and activities such as social protection for vulnerable populations and improvement of con- gendered impacts. ditions of women miners. Another 13 percent engaged in economic activities such as mining coopera- tives work on debt escalation, formalized/transparent trade chains, and improved ASM market access. Project development objective: To provide operational support to extractives task teams to close the Seven percent of the funding moved forward environmental activities such as prevention of encroach- gender gap in lending operations. ment in protected areas. Most grants were successfully closed. In terms of top-up financing, selection Approach is ongoing, with six contracts issued to date. To date, there are many success stories. Through the Closing the Gender Equity Gap Project, EGPS provided direct operational support and monitoring and evaluation training for the Extractives Unit’s task team leaders to introduce measures (and related results indicators) to close gender gaps in the extractives sector’s lending projects, includ- ing in Burkina Faso, Mali, and Niger. Key deliverables included a virtual follow-up Global Conference on Gender, Oil, Gas and Mining (follow-up to June 2018) and producing the report Closing the Gender Gaps: Summary Report of Support to Task Teams. 154 EGPS ANNUAL REPORT 2021 Appendix A | Completed, New, and Ongoing Activities, FY2021 155 Implementation Challenges Lao PDR: Sustainable Mining Investment and Benefit Flows COVID-19 restricted our ability to host in-person our Second Global Gender in Oil, Gas and Mining Project ID: P170557 Conference. The team made the event virtual, which in the end allowed for a greater global participa- Total Budget: $600,000 tion. Challenges related to adapting to the online format included the need to hire a firm to handle all the pre-recordings, building out a platform site to host the event, and dealing with new IT logistical EGPS Grant #: TF0B4865 challenges. Status: Ongoing; Effective: January 2021; Closing: December 2021 Results Notwithstanding the challenges, the global conference was a major highlight for the gender portfolio this year. This year, the project team brought in the Inter-American Development Bank, which gave the conference a very strong Latin America and Caribbean regional dimension. With the conference Context having been virtual, we have a living memory of it (full recording) that we can share with partners and The Lao People’s Democratic Republic hosts a variety of mineral resources that have only been par- refer to in communications. In addition to the conference, the support to gender tagging1 ensured that tially explored and have attracted only intermittent interest from investors. The mining sector con- all Extractives lending operations were successfully tagged. And lastly, the project team completed a tribution to the Lao economy, which peaked at 12 percent in 2014, is already less than 5 percent and groundbreaking piece of research on the status of Women in Mining organizations that will serve as the is forecast to fall further as economic reserves of the initial discoveries run out. Assorted small- and basis for a global capacity-building program. medium-scale operations mine diverse metallic and non-metallic minerals in many parts of Lao PDR, but they are mostly undercapitalized and often operate to low technical, environmental, and social standards. The country faces the challenge of a sector whose benefits and sustainability are declining, while the authorities and host communities face a mounting burden to mitigate environmental and social impacts. A revision of the Mining Law was approved in 2018 and addressed some of the deficiencies of the former law, including a clearer assignment of responsibility for sector management to the Ministry of Energy and Mining. Nevertheless, proper implementation requires completion of a set of new regula- tions, across a range of licensing and compliance issues. In January 2021, the government lifted a long-time moratorium imposed on new licensing of metallic minerals exploration at a time when it feared the sector could not be managed effectively and regula- tion would be overwhelmed. Ending the moratorium is planned in the context of a mining sector strat- egy that aims to relaunch the sector as one of the key drivers of socioeconomic development. Timely support and advisory services would increase the chances that the Ministry of Energy and Mining will be able to perform its responsibilities effectively and fairly when the moratorium is lifted. Failure by the ministry to do this would result in the perpetuation of a situation in which the mining sector fails to deliver potential benefits while imposing a growing burden on the authorities to miti- gate the impacts of poorly performing and regulated operators, with many of the costs falling on host communities. The objective of the advisory activities is to strengthen capacity of the Lao government to adequately plan and regulate the mining sector with the ultimate objective of improving the generation of benefits and operational performance. 1 The gender tag was adopted by the World Bank in 2018 to strengthen links between country level and/or sector gender equality objectives and World Bank Group operations, and to identify those operations that meaningfully narrow gaps between males and females in the four key pillars of the strategy. The gender tag identifies projects that have a clear results chain (for example, links analysis, actions, and monitoring and evaluation). 156 EGPS ANNUAL REPORT 2021 Appendix A | Completed, New, and Ongoing Activities, FY2021 157 Approach Global: Global Mineral Cadastre Review Mineral license management will be supported at three levels: (a) technical assessment of the merits Project ID: P170557 of investment proposals in order to approve and promote proposals with the highest expected returns Total Budget: $92,348 to the national economy; (b) administrative support to modernize and upgrade the mineral cadas- tre management system, which functions as the backbone for regulation of the sector activities; and EGPS Grant #: TF0B0024 (c) support to monitoring and enforcement of investors’ performance to rigorously track exploration Status: Closed; Effective: April 2019; Closing: June 2021 and pre-production activities with a special emphasis on rare earth developments. Challenges In the absence of nationally based industry experts, the travel restrictions imposed by COVID-19 have seriously hampered dialogue and support. Video conferencing dialogue has facilitated implementa- Context tion, but actual on-the-job training continues to be off-limits. A well-functioning mineral cadastre system (MCS) is a precondition for sustainable sector manage- Political influence on investment decisions remains a challenge to objective administration of the licens- ment since it executes and safeguards property rights of national landowners and investors alike in the ing and approval process. Dialogue with decision-makers persists, although to date, the lifting of the country. An effective MCS enables a level of transparency and data comprehensiveness that links own- moratorium has yet to take full effect. Sustained support to the technical and administrative levels is ership, rights, and obligations to offer a balanced economic advantage for all parties. intended to provide proof of concept for the various system enhancements that have been supported A solid MCS is a foundation for effective monitoring and oversight of the operator’s performance, rang- in recent years. ing from minimum investment requirements to control of production, as well as standardizes environ- Results mental and social compliance requirements. It is also a tool for sector planning and integration of the mining industry in the national economic development plans of a country. A sector strategy document has been developed and presented to government. in addition, a func- tional analysis of the mineral cadastre management system has been prepared. Both documents will With the rapid expansion of information technologies, demands on the functionality of MCS have fur- guide the implementation of detailed advisory services. ther increased. A modern MCS is expected to, among other factors, (a) perform digital data man- agement and automated reporting, (b) integrate seamlessly with other aspects of land and spatial management, and (c) support EITI data disclosure and parallel accountability initiatives. In response to the dispersion of demands to functionality and data availability of cadastre management systems, a variety of system solutions is now available with varying levels of adaptability and sophistication of data processing. Moreover, technical solutions continue to gain complexity and refinement as access to technology and data availability has expanded. Given the rapidly changing context of the mining sector, a review of implementation experiences and practical results among mining countries around the world would be timely. Such a review would identify minimum requirements and recommend valid rules for design, practice installation, and operation of a high-quality MCS. The objective of the review is to develop “best-­ guidelines for design, installation, and operation of digital mineral rights management systems.” Approach This initiative’s goal will be accomplished through a comparative review of representative MCSs across the world. The review will evaluate technical assistance projects provided by the World Bank over the past two decades and compare these systems to management systems in jurisdictions that are the best performing on a global basis. The review will also analyze alternative approaches to mineral rights management. 158 EGPS ANNUAL REPORT 2021 Appendix A | Completed, New, and Ongoing Activities, FY2021 159 i. Consultations and comparisons have been conducted across a variety of mineral jurisdictions. Global: Delve: ASM Global Database and Data Collaboration for Improved Policy Responses to COVID-Related Impacts in ASM Communities ii. A comparative study will be completed to analyze functionality, sustainability, and other parame- ters of user satisfaction. Project ID: P159661 iii. Good-practice notes will be developed for users and policy makers on system design consider- Total Budget: $1,147,741 ations, GIS functionality, public interface and transparency, and system sustainability. EGPS Grant # Effective Closing Status Results TF0A9125 November 2018 April 2020 Closed TF0B0843 August 2019 August 2021 Ongoing Work is planned in Ecuador and Bolivia. In the latter, the project aims to study Bolivian lithium policy TF0B6136 July 2021 October 2023 Pending over the last 10 years with a focus on results, progress, challenges, and goals. The team organized three internal learning events: two in the fall of 2019 and one in April 2020. The practice paper/working paper will be a non-peer-reviewed paper on global experiences and good practices. The study and practice notes will be completed before December 31, 2021. Context Artisanal and small-scale mining is a vital livelihood for over 40 million people in developing countries, particularly for those living in remote, rural areas. Although ASM is the most important rural, nonfarm- ing activity in the developing world, the sector remains under-researched and its potential to be part of broader development initiatives has not been realized. EGPS, alongside partner Pact, decided to shine a light on this vital sector by creating Delve, a global platform for ASM data. As the sole database covering ASM across the world, Delve is necessary for policy makers and practitioners to take an informed approach to the sector. The vision for this project is to scale up the database, have it link with other specialist sources of ASM information, and transform it into the global gateway for accurate and integrated ASM data. The cur- rent phase of the activity, as described below, concerns this second level of usage. Approach The project aimed to operationalize the Delve platform in interested countries and produce the 2020 State of the ASM Sector report. The platform-related activities comprised a series of best practices, which included a roadshow rollout, securing a protocol for data sharing globally, and identifying a social enterprise model to optimize the database’s long-term sustainability. The 2020 State of the ASM Sector report focuses on SDG 8 and the contribution that ASM makes to this SDG. Implementation Challenges The publication of the 2020 State of the ASM Sector report required an immense amount of coordina- tion across the 56 contributing organizations. This resulted in a delay to the publication, which we had wished to be published in late 2019. 160 EGPS ANNUAL REPORT 2021 Appendix A | Completed, New, and Ongoing Activities, FY2021 161 Results Global: Delve: Data Collaboration for Improved Policy Responses to COVID-related Impacts in ASM Communities The Delve platform has continued to successfully operate over the last year, taking on a more promi- nent role in coordinating information sharing on COVID responses in the ASM sector. The 2020 State of Project ID: P159661 the ASM Sector report made a big splash, with press coverage across several regions and subsequent Total Budget: $399,988.07 op-eds and interviews. The theme of making 2020 the Year of Occupational Health and Safety has gained traction, with interest by many partners to join and improve our track record on this subject. EGPS Grant #: TF0B3969 However, the crowning achievement of Delve 1.0 was the support to a COVID-19 rapid baseline survey Effective: April 2020; Closing: October 2021; Status: Closed at the beginning of the pandemic, which laid the analytic foundation for the design and (ongoing) delivery of an emergency window for ASM and COVID. Delve established a dedicated website to share resources on COVID and to host a biweekly call that served as a critical forum for information sharing among parties. The response to COVID with this type of data transparency initiative has further posi- Context tioned Delve as the global go-to for information on the sector. COVID-19 is not only a worldwide public health emergency but an international economic crisis that could surpass the global financial crisis of 2008–09. Right now, containment and mitigation measures are necessary to limit the spread of the virus and save lives. However, they come at a cost as shutdowns imply reducing economic activity. These human and economic costs are likely to be larger for develop- ing countries where the informal labor sector plays an important role in economic and social cohesion. The impact on state income and surge of unemployment will likely lead to an increase in migratory movements and a surge of already high levels of informal labor. This, combined with a significant increase in the price of gold because of tanking stock markets, will probably lead to a substantial and chaotic growth of informal mining and an amplification of its complications and risks. Already, artisanal mining employs 40 million people across the globe—a substantial increase from the estimated 10 million first suggested 20 years ago. Increasingly, ASM is the principal income source for miners and their households, debunking the myth that it is a short-term, poverty-driven activity. In fact, wages earned in ASM typically outcompete other rural livelihoods such as agriculture and petty trade, making it a primary employment opportunity. Currently, ASM accounts for 25 percent of diamond pro- duction, 25 percent of cobalt production, 20 percent of gold production, and 80 percent of sapphire production. The project development objective was to assess the short-term impact of the current COVID-19– induced recession in world oil, gas, and mineral markets on fiscal revenues and the GDP of selected countries, based on a project-by-project analysis, and to use these insights to identify a relevant work program to provide medium-term sector-specific support to rebuild the economy in client countries, specifically, Mozambique, Papua New Guinea, and Peru. Approach A rapid data collection exercise was conducted in 22 countries with 18 partner organizations over a two-month period. This activity and opportunity created the most engagement among external part- ners in the Delve platform to date. These included collecting “snapshots” of how COVID impacted selected ASM communities, which were then uploaded to the Delve website. Informed by the data collection exercise, the COVID-19 emergency support window of policy and programming initiatives for vulnerable ASM communities globally was launched. To ensure an iterative cycle of practice inform- ing further research and lessons learned, diverse outreach activities were conducted. These included 162 EGPS ANNUAL REPORT 2021 Appendix A | Completed, New, and Ongoing Activities, FY2021 163 producing a video on ASM communities, facilitating a data seminar as well as practical sessions on Lao PDR: Sustainable Energy & Extractives—Mining mitigating implementation challenges, and connecting networks of organizations which have received Project ID: P171029 grants to implement activities under the emergency window. Total Budget: $400,000 Implementation Challenges EGPS Grant #: TF0B1375 The data collection process had some challenges, which the project team mitigated as follows: Effective: October 2019; Closing: June 2020; Status: Ongoing 1. Funds to support costs: Funding was made available by EGPS to support data collection, which made data collection possible in contexts where networks existed, but covering researchers’ time was a limiting factor. 2. More testing of survey prior to release to work out bugs and issues in reporting: The project team Context encountered some errors in the form structure, question wording, and data output that resulted in minor changes to select question wording between versions. The Lao economy is expected to continue relying on the exploitation of its natural resources for eco- 3. Improved data visualization and sharing: Some of the response data were not able to be visual- nomic growth. Mining and energy contributed 6.6 percent and 10.5 percent, respectively, to the Lao ized using the PowerBI system. More testing up front and planning for data visualization would GDP in 2018. The eighth National Socio-Economic Development Plan for 2016–2020 (8th NSEDP) cites help promote analysis and presentation of the data. the two sectors as major contributors to the state budget, economic development, and employment, and refers to assuring safeguards and environmental sustainability. There is a moratorium in place on 4. Limitations of methodology: Because of the complexity, the project team did not track a consis- new licensing of metallic mines since 2012. One condition for lifting the moratorium and promoting tent cohort of respondents for each geography over time, presenting some limitations to inter- investment again is that health, safety, environmental, and social risks are better mitigated. preting changes in the data across reporting periods. Additionally, the sample size varied across regions and different periods, as respondents were not always able to accommodate requests The Lao government revised the Mining Law in 2018 and is preparing regulations and guidelines to from researchers due to availability. better implement the provisions relating to health, safety, environmental, and social risks. A prime 5. Reciprocity for respondents: Data were not always shared back with respondents and respon- ministerial regulation on mine closure was issued early in 2019. Also, the Ministry of Natural Resources dents were not compensated for participation in the survey when it did produce costs for respon- and Environment (MONRE) seeks better cooperation and coordination with the Department of Mine dents in the form of time and phone credits. More efforts could be placed on enabling data Management at the Ministry of Energy and Mines, especially after incidents of dam collapses, water ownership and shared value for respondents in future data collection efforts. pollution, and abandoned but unrehabilitated mines. Results The key regulatory challenges in the mining sector are to better monitor and enforce compliance by operators with good mining, safety, environmental, and social standards; restoration of incentives to The COVID-19 Impact Reporting Initiative created a valuable network of partners for future engage- invest by streamlining and making more consistent review and approval processes for the award of ment and influenced response efforts to the pandemic. The data collection exercise yielded many quan- mineral licenses; improve design of the fiscal system to incentivize investment but minimize revenue titative and qualitative outputs, including snapshots of key ASM communities (on the Delve website), leakage; and build greater accountability in the way the sector is managed. multiple publications, data seminars, and a video. Qualitative reports on the impacts of COVID-19 were especially beneficial complements to the data analysis and were produced by some data collection The objective of this project is to strengthen capacity of the government of Lao PDR to adequately partners. These reports provided more novel insights into the factors influencing the response data. plan and regulate the energy and extractives sectors to improve their financial and operational perfor- mance. This project is a part of a wider programmatic project with several pillars. These in turn catalyzed policy and programming initiatives. Specifically, it informed the World Bank fundraising for the COVID in ASM emergency support window worth $5.5 million to implement policy Approach and programming responses by host governments and CSOs globally. Project activities included (a) support to the development of the Ministry of Energy and Mines five-year Realizing that lessons could be learned on how data can be used to improve understanding of ASM strategic plan, (b) a review of implementation of recommendations from the Strategic Environmental communities’ needs for donors, the project team published materials on COVID-related impacts in ASM and Social Assessment (SESA) program, (c) a mine waste management study, and (d) development of communities by journalists, academics, and other organizations or institutions with reference to Delve. a guidance document on mine closure. The data collection exercise created the most engagement among external partners on the Delve plat- form to date. 164 EGPS ANNUAL REPORT 2021 Appendix A | Completed, New, and Ongoing Activities, FY2021 165 Results Global: Global Knowledge & Gender Impact on Energy Transition in Coal Regions To respond to the regulatory challenges, this project worked to strengthen the regulatory capacity of Project ID: P171194 the Lao government to better manage health, safety, environmental, and social risks of mining. The two Total Budget: $950,816 national action plans for the mining sector were delivered and have full governmental backing. Many core topics that had previously not been considered were included in the plan—for example, cadastral EGPS Grant #: TF0B1089 system, licensing system, compliance and enforcement of the Mineral Law, inspection system, fiscal Effective: October 2019; Closing: June 202; Status: Ongoing regime, and tax payments. The National Mining Strategy was also adopted based on inputs and recom- mendations from the project. The National Mining Strategy should correctly be coined as an outcome since it was prepared and owned by government. No presidential decree has been promulgated. Context Coal mine closure is part of the global energy transition, driven by country governments’ commitments to decarbonization and clean air, technology development and mine mechanization, national policies, and competitions from other fuels in downstream energy demand markets. There is tremendous iner- tia around governments facing a transition from coal in coal-dependent regions. Smaller, loss-making mines and assets along the value chain are closing, but governments are shifting some coal production and redundant labor to larger mines, creating the potential for even greater disruption in the future. The narrow economic base of coal mining regions requires careful mitigation of coal sector transition impacts. The reduction of coal production capacity and loss of mining employment substantially reduce the flow of income through the local economies—directly and indirectly affecting retail, food services, and other dependent sectors, as well as social services. Globally, most coal-dependent regions in tran- sition have experienced severe impacts to labor and community, resulting in job losses and lagging economies lasting for decades. Therefore, coal sector transition and coal mine closure are, in large part, about mitigating impacts on affected people and communities. This grant fell under the broad Supporting Energy Transition in Coal Regions global initiative, which aims to assist coal-dependent regions to be equipped to manage the energy transition they face. This grant addressed global knowledge gaps on coal mine closure, especially in the aspects of environmen- tal reclamation, land, and assets repurposing, abandoned mine methane capturing, and gender differ- entiated impacts of coal transition. Approach On August 14, 2019, the World Bank’s Energy and Extractives Global Practice approved a new trust- funded initiative titled Supporting Energy Transition in Coal Regions. This initiative has three program- matic components: (1) Regional and bilateral dialogues, which focuses on building dialogue, facilitating exchange of experiences, and providing just-in-time knowledge to countries that are in the preliminary stages of reducing the share of coal-derived power in their total energy mix; (2) country-level engage- ments, which supports client coal regions (and countries) that have taken the decision to transition; and (3) global knowledge on transition in coal regions, which seeks to close global knowledge gaps on approaches and measures to support coal regions in transition. 166 EGPS ANNUAL REPORT 2021 Appendix A | Completed, New, and Ongoing Activities, FY2021 167 Under this initiative, and with the objective to facilitate knowledge sharing and address global knowl- and planning activities—the first step in charting their transition strategies. Knowledge exchange edge gap on coal mine closure, this grant focused on the following activities: between Poland and Ukraine is a complex undertaking involving two governments and as many as eight coal regions, as well as many development initiatives and funding sources. The program • Official launch of the Platform Initiative in Support of Coal Regions in Transition in Western was launched in October 2020, with two preparatory workshops organized in December 2020 Balkans and Ukraine (WBUA) (partial contribution) and January 2021, followed by the first study tour at the end of February/beginning of March 2021 • Poland–Ukraine Coal Regions Twinning Activities (full contribution) in virtual mode because of COVID-related restrictions. • Coal Regions in Transition Learning Academy (full contribution) • Coal Regions in Transition Learning Academy: • Communication materials related to “just transition” (full contribution) • Since July 2020, 16 videos have been recorded, with topics ranging from governance arrange- • Knowledge product: Socioeconomic Transition in the Appalachia Coal Region Case Study (partial ment for coal transition to the future of jobs in coal-dependent regions, from lessons learned contribution) during World Bank technical assistance to transition experience in the Appalachian region of • Knowledge product: Repurposing of Land and Other Assets, A Toolkit for Implementation (full the United States, from socioeconomic transition to repurposing of land and coal-fired power contribution) plants. The project team continues to work with partners (such as the European Bank for • Knowledge products: Mitigation of Abandoned Mine Methane (AMM) and Coal Mine Methane Reconstruction and Development, European Commission) to record videos on diverse topics. (CMM) Monitoring and Utilization after Coal Mine Closure (full contribution) • The College of Europe Natolin Campus is now implementing a user needs assessment, work- • Knowledge product: Just Transition for All: A Feminist Approach for the Coal Sector (full ing in partnership with the Platform Initiative Secretariat and the European Commission DG contribution) Energy. Additionally, the new secretariat (Ecorys) is taking a greater role in assisting with identification of potential students for the Learning Academy, their needs, and learning mate- Implementation Challenges rials to be contributed. The team foresees client-buy in risks related to this proposed project. The decision to transition away • Work on revising the World Bank’s GOXI platform for use in the Learning Academy is ongoing. from coal is generally taken at a higher level of the government and is, in most cases, contingent on the • The Poland–Ukraine Twinning activity is using the GOXI platform and this is troubleshooting nation’s overall strategy for energy transition. Despite advice provided by the World Bank team during issues for the Learning Academy. project implementation, it is not certain that government clients would take the decision to decarbon- • An online virtual delivery of a first WBUA Learning Academy is being finalized in September ize their energy sector right away. 2021, with the College of Europe delivering learning modules that are being uploaded to the To mitigate this risk, the project team has engaged broad stakeholders and development partners to online GOXI platform ahead of the New York Global Summit and COP26 Glasgow in 2021. raise awareness and collaborate on the topic of coal regions in transition. Through the launch of the • Communication: Slide decks for external and internal presentations were delivered in July 2020, Platform Initiative in Support of Coal Regions in Transition in Western Balkans and Ukraine (WBUA) and presentations have been made to (a) VP INF (and the Acting VP INF), (b) CD Europe, (c) and Coal Regions in Transition Academy, the project team unpacked the complex issues related to coal MDB Paris Alignment Working Group (PAWG) Building Block 41 in preparation for COP26, (d) regions in transition into digestible modules with real experience and country case studies. UN ESCAP Roundtable “The Energy Transition and Extractive Industries Development” in the Results Asia-Pacific region, (e) first launch of the Platform Initiative, (f) Poland–Ukraine Twinning, and (g) International Finance Corporation (IFC). The slide deck has been further modified to clarify the • Official launch of the Platform Initiative in Support of Coal Regions in Transition in Western World Bank’s “three-phase, three-pillar approach,” and this content has been integrated into a Balkans and Ukraine: This took place virtually on December 10–11, 2020. Over 180 participants slide deck presented to VP EAP and now submitted to the MDs office for a meeting mid-March on from Bosnia and Herzegovina, Germany, Greece, Kosovo, Montenegro, North Macedonia, Poland, Bank support to coal phaseout. Integration of content on decommissioning thermal power plants Serbia, Ukraine, and the United States joined the two-day event online to share experiences and is pending. lessons learned on the energy transition. The annual meeting of the initiative took place on June • Socioeconomic Transition in the Appalachia Coal Region Case Study: This study identifies 23–24, 2021, with wide representation from coal regions, governments, civil society, workers, Appalachian counties that have successfully transitioned from dependence on coal while sus- enterprises, and development agencies. taining growth and assesses factors that facilitate more successful community transition. The • Poland–Ukraine Twinning: The Energy and Extractives Global Practice designed and launched a key goal is to determine why some communities perform better to draw lessons for other com- knowledge exchange between Ukrainian and Polish coal regions. This twinning activity consists munities facing transition challenges. The following conclusions emerge from the analysis: (1) of successive learning events, also commonly referred to as study tours, in which delegations Very few Appalachian counties have managed a positive transition from coal dependence; (2) from five Ukrainian coal regions visit Poland to gain lessons learned associated with preparatory in terms of economic well-being, the level of success of the four counties is modest; (3) severe 168 EGPS ANNUAL REPORT 2021 Appendix A | Completed, New, and Ongoing Activities, FY2021 169 economic structural impediments across Appalachia constrain growth; (4) nonstructural imped- transition along with an easily adaptable framework. As suggested by the World Bank Energy and iments reinforce poor economic outcomes and reduce local economic resilience; (5) institutional Extractives Global director, the team is working with the World Bank Corporate Gender Group to capacity and social capital have helped some counties transition more successfully; and (6) tran- possibly transform this study in operational guidance for all task teams within the World Bank. sition paths in our four “successful” Appalachian counties each have their own unique features This paper will be finalized and disclosed by the end of the calendar year 2021. and success factors, making it difficult to generalize approaches for other counties. Nonetheless, the analysis highlights some broad policy areas for addressing common economic develop- ment impediments in Appalachia: (a) enhance connectivity; (b) invest in human capital; (c) seek economic diversification to ease “boom and bust” cycles; (d) build local institutional capacity; and ­ (e) coordinate economic development strategies. This study will be publicly available by the end of October 2021. • Global Perspective on Coal Jobs and Managing Labor Transition Out of Coal: Key Issues and Policy Responses: This issue paper analyzes the status of coal phaseout around the world, the magni- tude and character of coal sector jobs, and the challenges associated with future labor transition. The analysis exploits differences in transition stages to draw lessons from countries that have experienced coal mine closures in the past and uses these lessons to inform policy responses in the context of future decarbonization, with particular attention on facilitating the transition of affected workers into alternative employment. • Repurposing of Land and Other Assets, A Toolkit for Implementation: This product has been con- currently developed and tested with other relevant technical assistance projects, such as those in Greece (A Just Transition for All: Preparing for a Managed Transition of Coal-Dependent Regions in Western Macedonia, Greece, P169761), China (China Energy Revolution Programmatic ASA, P172281), and Poland (Support Polish Coal Regions in Transition, P173079). A Land Utilization Rating Application (LURA) User’s Guide has been completed. • Mitigation of Abandoned Mine Methane (AMM) and Coal Mine Methane (CMM) Monitoring and Utilization after Coal Mine Closure: Two technical notes have been prepared: The first one, pre- pared during FY20, presents the basics of coal associated methane; the second one, drafted during FY2021, explores the costs and benefits of reducing coal methane emissions. In addition, the World Bank has gradually entered the global dialogue on the subject, with various contribu- tions and discussions with the United Nations Economic Commission for Europe (UNECE), which is pushing forward the idea of a “decade for methane management”; the Global Methane Initiative (GMI), whose mandate has recently been extended for another 10 years; and the International Energy Agency, whose 2020 global energy outlook emphasizes coal methane. Coal methane has also been part of engagements with client countries like China in the context of the Energy DPO, or Poland as part of the coal phaseout road map. • Gendered impacts of coal mine closure: The paper Just Transition for All: A Feminist Approach for the Coal Sector is an important analytical piece that introduces—for the first time ever—a feminist approach to consider just transition in the coal sector undergoing energy transformation. Based on evidence of gendered impacts of mine closure collated from around the world and paired with qualitative and quantitative analysis on major coal-producing countries in the global South, this research paper offers an intersectionality-informed gender transformative perspective for the 170 EGPS ANNUAL REPORT 2021 Appendix A | Completed, New, and Ongoing Activities, FY2021 171 Global: Climate-Smart Mining Results Project ID: P174003 ASSOCIATED The initiative not only raised awareness of the role of minerals and metals to achieve a low-carbon future, but also highlighted the important role that developing countries will have in enabling this tran- TRUST FUND Total Budget: $1,854,220.37 sition and benefiting from it, as well as the challenges that may emerge if the clean energy transition CLIMATE-SMART is not managed responsibly and sustainably. In addition to successful advocacy and raising awareness, Grant # Effective Closing Status MINING TF0A6332 October 2017 December 2019 Ongoing this active engagement on CSM includes completed reports and continuing work on toolkits and road TF0B3734 April 2020 May 2022 Ongoing maps, among other analytical and operational/country-specific results. Ultimately, financing EGPS’ analytical work and country-specific projects is advancing the knowledge and implementation of the CSM framework in World Bank client countries. Context From July 1, 2020, to June 30, 2021, the initiative focused on the two road maps for Chile and Indonesia, as well as several analytical outputs. As part of a lithium-ion battery recycling project aiming to show- Climate-Smart Mining (CSM) supports the responsible extraction, processing, and recycling of min- case how developing countries can be provided with tools and capacity to make use of a second-life erals needed for low-carbon technologies by minimizing their climate and material footprints from global battery market, Reuse and Recycling: Environmental Sustainability of Lithium-Ion Battery Energy extraction to end use by scaling up technical assistance and investments in mineral-rich developing Storage Systems, was published in August 2020 in partnership with the Energy Storage Partnership countries. With international cooperation at its core, CSM specifically aids governments in building a (ESP). The team is also developing a follow-up program focusing on concrete opportunities for reuse robust policy, regulatory, and legal framework that promotes the CSM concept and creates an enabling and recycling in Africa, in partnership with the Global Battery Alliance. environment for private capital. Also published, in June 2021, was The Business Case for Gender-Responsive Climate-Smart Mining, in Approach collaboration with IFC. The toolkit consists of a series of instruments to help understand the business case, the roles, and responsibilities of various stakeholders in addressing challenges, and to unlock CSM achieves this objective by focusing its activities on a framework (building blocks) developed in opportunities for women and points of entry for concrete actions across the building blocks of the consultation with key stakeholders in government, industry, and civil society, serving as guidance to initiative. help developing countries and projects integrate climate-smart approaches through four pillars: (1) climate mitigation, (2) climate resilience, (3) circular economy, and (4) creating market opportunities. Draft guidelines on forest-smart mining for the use of carbon financing by the mining sector were pub- The CSM Initiative is a partnership with IFC, which is implementing the private sector aspects of the lished in February 2021, and the final forest-smart mining toolkit will be finalized in November 2021. The initiative. objective of this activity is to identify and promote policies and practices that incentivize the mining industry and its investors to finance nature-based climate solutions. The CSM Initiative is continuing to scale up and prioritize its CSM country road maps that provide a gap analysis between current extractives activities and countries’ climate ambitions, enabling each govern- An analytical piece composed of three parts is also being finalized on the opportunities for decarboniz- ment to develop a CSM road map to limit GHG emissions and reduce the environmental impacts from ing aluminum for solar PV, consisting of a main report on global aluminum supply chains, and two case mineral production to meet the new demand from low-carbon technologies. Following from the deliv- studies on bauxite mining and refining in Brazil and Guinea. The purpose of this project is to develop ery of a CSM copper road map for the government of Chile, CSM initiated its first in-depth country road a cost analysis tool for producing green aluminum and identify opportunities for implementing CSM map on nickel for Indonesia, with the first scoping phase under way and to be completed by December practices more broadly in the global aluminum supply chain. Delivery is estimated for December 2021. 2021. These projects have engendered significant interest from other client countries—notably, Kenya, South Africa, and Suriname—on developing similar CSM country road maps for FY2022. Research and building of a Lithium Carbon Footprint Dashboard is also under way to provide a plat- form to measure lithium’s carbon dioxide emissions from mine to end use throughout the entire min- Within the next four years (2021–25), CSM has the objective of coordinating with the World Bank eral value chain. The dashboard was soft launched at the World Bank’s annual Innovate4Climate Event Climate Action Plan and aligning client countries’ Nationally Determined Contributions objectives. in May 2021 and introduced by Demetrios Papathanasiou, the director of the Energy and Extractives Many of the currently ongoing analytical activities continue to focus on identifying opportunities to Global Practice. develop pilots in selected developing countries and/or integrate the CSM building block themes in the global policy debate. For CSM to enhance its visibility into the fast-moving space of critical minerals In terms of outreach, CSM presented in 20 panels during FY2021 to promote and inform stakeholders for the clean energy transition, the initiative needs to continue securing additional funding from public of the CSM Initiative, as well as continue dissemination and outreach around the new report Minerals for and private sources that will enable the CSM program to take the knowledge and lessons learned from Climate Action: The Mineral Intensity of the Clean Energy Transition, published in May 2020. Included these activities and operationalize them at a country level. in these events are the CSO roundtable hosted by CSM and IFC (October 2020); participation in the 172 EGPS ANNUAL REPORT 2021 Appendix A | Completed, New, and Ongoing Activities, FY2021 173 European Union’s Raw Materials Dialogue (November 2020); and in the flagship Minerals Council Australia Minerals Week (June 2021). In addition, a joint World Bank–IFC workshop on implementing CSM practices in Africa was held in FY2021 during Energy Indaba 2020. APPENDIX B | FINANCIAL REPORT, FY2021 Table B.1: EGPS-1 Grant Implementation Status Table B.2: EGPS-2 Grant Implementation Status Table B.3: Recipient-Executed Grant Process Tracking Table B.4: Bank-Executed Grant Process Tracking 174 EGPS ANNUAL REPORT 2021 Appendix B | financial report, FY2021 175 TABLE B.1: EGPS-1 Grant Implementation Status Africa Pillars / Components Total Disbursed + Percentage Budget Committed (%) Project (US$, (US$, Disbursed + Country Number Project/Activity Name RE/BE Round 1 2 3 4 SV thousands) thousands) Committed Status Africa P155194 African Mining Legislation Atlas (AMLA) BE 2 346 346 346 100 Completed Extractives for Transformation: COVID-19 P170557 BE       79   79 79 100 Completed An Africa Regional Study Response Chad P166399 Petroleum Sector Diagnostics BE 5   434       434 434 100 Completed Mainstreaming the Extractive P168666 BE 6       95 95 92 97 Implementation Industries—EITI (Supervision) P168666 Mainstreaming the Extractive Industries (EITI) RE 6 350       350 350 100 Implementation Côte d’Ivoire P162202 EITI Data Accessibility Support (Supervision) BE 2     4 4 4 100 Closed/Dropped Development of Framework for Local P162283 BE 2     300     300 300 100 Completed Content in the Mining Sector Ethiopia P159798 Ethiopia EITI RE 2 241 241 241 100 Completed P159798 Ethiopia EITI (Supervision) BE PR2   74 74 74 100 Completed P162820 Pipeline Capacity Building BE PR4   50       50 50 100 Completed Implementation of Extractive Industries Ghana P163756 RE 4 298       298 298 100 Completed Technical Assistance (EITI) Supervision of Implementation of P163756 Extractives Industries Technical BE 4       34 34 34 100 Completed Assistance (EITI)—Supervision Madagascar P173440 Mining Velirano (EITI) BE 7 100 220 200 80 600 242 40 Implementation Mauritania P166307 EITI Consolidation Project RE 4 274       274 274 100 Completed P166307 EITI Consolidation (Supervision) BE 4       50 50 50 100 Completed Nigeria P161486 Nigeria Petroleum Sector BE 1   220       220 220 100 Completed Strengthening Nigerian Petroleum Sector P161486 BE 5   170       170 170 100 Completed Policy and Governance—Phase 2 176 EGPS ANNUAL REPORT 2021 Appendix B | financial report, FY2021 177 Africa Pillars / Components Total Disbursed + Percentage Budget Committed (%) Project (US$, (US$, Disbursed + Country Number Project/Activity Name RE/BE Round 1 2 3 4 SV thousands) thousands) Committed Status P162344 NEITI Reporting Compliance (Phase 1 + 2) RE 1+4 590 590 590 100 Completed P162344 NEITI Reporting Compliance (Supervision) BE 1       10 10 10 100 Completed P162344 NEITI Support (Phase 3) RE 5 285       285 285 100 Implementation P162344 NEITI Support Phase 3 (Supervision) BE 5       15 15 5 32 Implementation P170557 Review of Nigeria’s draft Petroleum Industry Bill BE PR8 117     117 78 67 Implementation Senegal P160022 Support to EITI Compliance Process (1) RE 1 189 93 282 282 100 Completed Support to EITI Compliance P160022 BE 1 75 75 75 100 Completed Process (Supervision) P160022 EITI Compliance (2) RE 3 451         451 451 100 Completed P160022 EITI Compliance (2)—Supervision BE PR3         35 35 35 100 Completed P160022 EITI Post-validation Supervision BE 6       52 52 52 100 Completed Somalia P164175 SOPTAP—Somalia Petroleum TA Assistance RE 4   242   242 484 484 100 Completed SOPTAP—Somalia Petroleum— P164175 BE 4         75 75 67 90 Implementation Supervision and Preparation I P164175 SOPTAP — Somalia Petroleum—Supervision II BE PR6         25 25 25 100 Completed Economic Impact of Mining Sector Regulatory Tanzania P162493 BE 6   83       83 80 96 Implementation Changes in Tanzania (Supervision) EI Accountability and Governance P162493 RE 3 650     100   750 750 100 Implementation Enhancement Project EI Accountability and Governance P169633 BE 3         50 50 46 93 Implementation Enhancement—Supervision Togo P163207 EITI Support Project RE 3 153       153 153 100 Completed P163207 EITI Support (Supervision) BE 3       75 75 75 100 Completed National Content Development Uganda P162924 RE 3     203   203 203 100 Completed for the Oil Sector 178 EGPS ANNUAL REPORT 2021 Appendix B | financial report, FY2021 179 Africa Pillars / Components Total Disbursed + Percentage Budget Committed (%) Project (US$, (US$, Disbursed + Country Number Project/Activity Name RE/BE Round 1 2 3 4 SV thousands) thousands) Committed Status National Content Development for P162924 BE 3         40 40 40 100 Completed the Oil Sector (Supervision) National Content Development for P162924 BE PR 6         26 26 26 100 Completed the Oil Sector (Supervision) EITI Post Compliance Implementation Zambia P159717 RE 2 350 350 350 100 Completed Support III—Phase 1 Post Compliance Implementation   P159717 BE 5       50 50 50 100 Completed Support III (Supervision) EITI Post Compliance Implementation   P159717 RE 5 273       273 273 100 Completed Support III –Phase 2 Post Compliance Implementation   P159717 BE 2 48 48 48 100 Completed Support III (Supervision) Supporting EITI Scoping and Zimbabwe P170557 BE 8 333         333 89 27 Implementation Potential Implementation Total for Africa 4,536 1,975 503 622 912 8,548 7,880 92   180 EGPS ANNUAL REPORT 2021 Appendix B | financial report, FY2021 181 East Asia and Pacific Pillars / Components Total Disbursed + Percentage Budget Committed (%) Project (US$, (US$, Disbursed + Country Number Project/Activity Name RE/BE Round 1 2 3 4 SV thousands) thousands) Committed Status Citizen Monitoring for Transparency & Indonesia P163797 Accountability of Licensing and Revenue RE 1 475 475 475 100 Implementation Management in Mining Sector Citizen Monitoring for Transparency & P163797 Accountability of Licensing and Revenue BE 1       25 25 0 0 Implementation Management in Mining Sector (Supervision) Lao PDR P171029 Sustainable Energy and Extractives Mining BE 7       400   400 354 88 Implementation Improved Governance of Mongolia P158649 RE 1 423   423 423 100 Completed Extractives Project (MIGEP) Improved Governance of Extractives P158649 BE 1   50 50 50 100 Completed Project (MIGEP)—Supervision Improved Governance of Extractives P158649 BE PR1         50 50 50 100 Completed Project (MIGEP)—Supervision Improved Governance of Extractives P158649 BE PR6         10 10 10 100 Completed Project (MIGEP)—Supervision Sustainable Mining Investment P173631 BE 8       400 400 361 90 Implementation and Benefit Flows Myanmar P171461 TA on Gas Fiscal Terms and Governance BE 8   102       102 102 100 Completed Pacific Regulatory Response to Deep Sea P163595 BE 3       247   247 247 100 Completed Islands Mining (DSM) in the Pacific Region Regulatory Response to Deep Sea Mining P163595 BE 3         48 48 48 100 Completed (DSM) in the Pacific Region (Supervision) Papua New Bougainville Capacity Building for Guinea P162917 Sustainable Management of Mineral BE 3       172 172 172 100 Completed (PNG) Resources (Preparation and Supervision) P154204 Support to CSOs BE 1 139         139 139 100 Completed P167472 PNG EITI BE 5 450       50 500 118 24 Implementation Second Philippines Extractives Industries Philippines P157976 RE 1 1,477 1,477 1,477 100 Completed Transparency Initiative (EITI) Support Project P157976 Second Philippines EITI Grant (Supervision) BE 1 50 50 50 100 Completed Solomon P162737 Solomon Islands Mining Governance (SIMGov) RE 3   397     397 397 100 Completed P162737 Solomon Islands Mining Governance (SIMGov) BE 3       100 100 100 100 Completed Total for East Asia and Pacific 2,965 499 0 1,047 553 5,065 4,573 90   182 EGPS ANNUAL REPORT 2021 Appendix B | financial report, FY2021 183 Europe and Central Asia Pillars / Components Total Disbursed + Percentage Budget Committed (%) Project (US$, (US$, Disbursed + Country Number Project/Activity Name RE/BE Round 1 2 3 4 SV thousands) thousands) Committed Status Albania P158380 Support to EITI Compliance Process Project (1) RE 1 400 400 400 100 Completed P158380 Support to EITI Compliance—Supervision BE 1 50 50 50 100 Completed P158380 Support to EITI Compliance Process Project (2) RE 3 381 190     571 571 100 Completed Support to EITI Compliance P158380 BE 3       64 64 64 100 Completed Implementation—Supervision Armenia P162640 EITI Capacity Support BE 3 48         48 48 100 Completed P163060 Mineral Sector Policy RE 3   150   75 225 225 100 Completed P163060 Mineral Sector Policy (Supervision) BE 3     50 50 50 100 Completed P163060 Mineral Sector Policy (Supervision) BE PR3         22 22 22 100 Completed P166274 Armenia EITI Support RE 5 350       350 350 100 Implementation P166274 Armenia EITI—(Supervision) BE 5         120 120 103 85 Implementation P173686 Mineral Sector Policy and Reforms RE 8   200   50   250 250 100 Implementation P173686 Mineral Sector Policy and Reforms—Supervision BE 8     50 50 20 41 Implementation Azerbaijan P162544 Mainstreaming EITI Implementation BE 3 81         81 81 100 Completed P170557 Azerbaijan Mining BE PR10   50       50 35 71 Implementation 5& Central Asia P166894 Mine Closure and Economic Regeneration BE COVID-19       526   526 526 100 Completed Response Mineral Potential Promoting Mining Georgia P168804 BE 8   300 50 350 253 72 Implementation Investments in Georgia Kyrgyz Enhancing Transparency in the P175829 BE PR8 300         300 10 3 Implementation Republic Governance of Extractives Low Carbon Mining Transaction Pending Serbia P177192 BE PR11   185       185 0 0 Capacity Building Effectiveness 184 EGPS ANNUAL REPORT 2021 Appendix B | financial report, FY2021 185 Europe and Central Asia Pillars / Components Total Disbursed + Percentage Budget Committed (%) Project (US$, (US$, Disbursed + Country Number Project/Activity Name RE/BE Round 1 2 3 4 SV thousands) thousands) Committed Status Pending Tajikistan P173802 EITI Implementation Support Project RE 7 500         500 0 0 Effectiveness P173802 EITI Implementation Support (Supervision) BE 7         50 50 3 6 Implementation Support to EITI Compliance Ukraine P158379 RE 1+3 450 188 639 639 100 Completed Process Project (1+2) Support to EITI Compliance P158379 BE 1 50 50 50 100 Completed Process Project—Supervision P158379 Ukraine EITI Support—Supervision BE 1     63 63 63 100 Completed Uzbekistan P172414 Gas Sector Reforms BE 7   500       500 500 100 Completed Western Decarbonization and Clean Energy P171194 BE 10 240 120       360 135 37 Implementation Balkans Transition in the Western Balkans Region Total For Europe and Central Asia 2,750 1,884 50 651 518 5,853 4,448 76   186 EGPS ANNUAL REPORT 2021 Appendix B | financial report, FY2021 187 Latin America and the Caribbean Pillars / Components Total Disbursed + Percentage Budget Committed (%) Project (US$, (US$, Disbursed + Country Number Project/Activity Name RE/BE Round 1 2 3 4 SV thousands) thousands) Committed Status Bolivia P170557 Lithium Mining BE PR8 80 80 39 48 Implementation Colombia P158486 Supporting Review of Mining Legal Framework BE PR5   32       32 32 100 Completed Subnational Strengthening and Mainstreaming P169919 RE 5 400       400 400 100 Implementation of Transparency in the Extractive Sector Subnational Strengthening and P169919 Mainstreaming of Transparency in the BE 5       85 85 75 88 Implementation Extractive Sector—Supervision Dominican P161434 Implementing EITI (1) RE 2 190 190 190 100 Completed Republic P161434 Implementing EITI (Supervision) BE 2 49 49 49 100 Completed P161434 Implementing EITI (Supervision) BE PR10         45 45 0 0 Implementation P161434 Implementing EITI 2 (Supervision) BE 6       48 48 48 100 Completed P161434 Implementing EITI (2) RE 6 250       250 250 100 implementation Ecuador P170557 Mineral Cadastre Systems and EITI Scoping BE 6 330       330 330 100 Completed Mineral Cadastre Systems and P170557 BE 6       51 51 51 100 Completed EITI Scoping (Supervision) Guyana P162883 Guyana EGPS BE 4 100         100 100 100 Completed Peru P160633 EITI Subnational Implementation RE 1 386 386 386 100 Completed P160633 EITI Subnational Implementation—Supervision BE 1 50 50 50 100 Completed P160633 Peru EITI—Supervision BE PR1 48 48 48 100 Completed Support for Improved Management of P173795 BE 8   320 130     450 270 60 Implementation Mining and Sustainable Development Suriname P163612 Suriname EGPS Implementation RE 3 319     319 319 100 Completed P163612 Suriname EGPS Implementation—Supervision BE 3+PR5         80 80 80 100 Completed P162883 Suriname EGPS and EITA Support BE 4+PR4 296         296 296 100 Completed Total for Latin America and the Caribbean 2,271 432 130 0 455 3,289 3,011 92   188 EGPS ANNUAL REPORT 2021 Appendix B | financial report, FY2021 189 Middle East and North Africa Total Disbursed + Percentage Pillars / Components Budget Committed (%) Project (US$, (US$, Disbursed + Country Number Project/Activity Name RE/BE Round 1 2 3 4 SV thousands) thousands) Committed Status Supporting the Petroleum Sector Egypt P162782 BE PR2 72 72 72 100 Completed Mordernization Program P176321 Support to Gold Mining Sector BE 10     500 200   700 0 0 Implementation Iraq P160274 EITI Implementation Support (I) RE 2 350 350 350 100 Completed P160274 EITI Implementation Support (Supervision) BE 2         240 240 240 100 Completed P160274 EITI Implementation Support (II) RE 5 450       450 450 100 Completed P163871 Gas Pricing Regulations BE 3   523     523 523 100 Completed Natural Gas Market Framework P163871 BE PR3   95       95 95 100 Completed Implementation TA Tunisia P163810 Gas Sector Governance & Competitiveness BE 4   95       95 95 100 Completed Total for Middle East and North Africa 800 714 500 272 240 2,526 1,826 72   South Asia Pillars / Components Total Disbursed + Percentage Budget Committed (%) Project (US$, (US$, Disbursed + Country Number Project/Activity Name RE/BE Round 1 2 3 4 SV thousands) thousands) Committed Status Bhutan P163172 Supporting Minerals Policy Reform RE 3 57 172     229 229 100 Completed P163172 Supporting Minerals Policy Reform—Supervision BE 3     49 49 49 100 Completed Total for South Asia 57 172 0 0 49 278 278 100   190 EGPS ANNUAL REPORT 2021 Appendix B | financial report, FY2021 191 Global Pillars / Components Total Disbursed + Percentage Budget Committed (%) Project (US$, (US$, Disbursed + Country Number Project/Activity Name RE/BE Round 1 2 3 4 SV thousands) thousands) Committed Status Africa—Regional Training in Mining Tax Global P170557 BE 8   6       6 6 100 Closed/Dropped Administration and Policy-Making   P175205 Africa Mining Legislation Atlas (AMLA) Phase 2 BE 9   500       500 0 0 Implementation Artisanal and Small Scale Mining   P164674 BE PR3       100   100 100 100 Completed (ASM) Global Platform ASM Global Center of Excellence   P164674 BE 6       7   7 7 100 Closed/Dropped (Governing Body)   P159661 ASM Global Database BE 2 399 399 399 100 Completed   P156743 Broadening the Impact of the ELLED CoP BE 8     149     149 67 45 Implementation Closing Gender Gap in Extractives—   P168863 BE 7     106   106 106 100 Completed 2nd Global Gender Conference EGPS—Closing the Gender   P164671 BE PR4       100   100 100 100 Completed Equity Gap in Extractives   P168863 EGPS—Closing the Gender Gap in Extractives BE 6       327   327 327 100 Implementation   P176868 Closing the Gender Gap in Extractives—2.0 BE PR10       50   50 0 0 Implementation   P164677 CSO Strategy for Extractives BE 3 291         291 291 100 Completed Data Collaboration for Improved COVID-19   P159661 Policy Responses to COVID-related BE       400 400 400 100 Completed Response impacts in ASM Communities Decarbonization Pathways   P156743 BE 10       400   400 1 0 Implementation for Oil and Gas Sector   P159661 Delve 1.0 BE 6       189   189 189 100 Completed   P159661 Delve 1.0 Operations BE 7       350   350 346 99 Implementation EITI International—Assistance to the   P161739 BE 3 98         98 98 100 Completed Implementing Country Working Group (ICWG) EITI Transparency Validation   P155263 RE 1+4 899 899 899 100 Completed Data Support (Phase 1 & 2)   P155263 EITI Validation and Data Supervision BE 4+PR4         77 77 77 100 Completed   P156743 ELLED CoP BE 1 79 79 79 100 Completed 192 EGPS ANNUAL REPORT 2021 Appendix B | financial report, FY2021 193 Global Pillars / Components Total Disbursed + Percentage Budget Committed (%) Project (US$, (US$, Disbursed + Country Number Project/Activity Name RE/BE Round 1 2 3 4 SV thousands) thousands) Committed Status   P156743 ELLED CoP Phase II BE 6     313     313 258 82 Implementation   P156743 ELLED Interactive Framework BE 4     250     250 250 100 Completed   P163395 Extractive Industries Collective BE 3 400         400 400 100 Completed   P163854 Extractives MOOC2 BE 4   225       225 225 100 Completed Global Knowledge & Gender Impact on   P171194 BE 7       951   951 945 99 Implementation Energy Transition in Coal Regions Global Knowledge on Energy Pending   P171194 BE PR 11       200   200 0 0 Transition in Coal Regions Effectiveness   P170557 Global Review of Mineral Cadastral Systems BE 6       92   92 92 100 Completed Green Extractives-Led Local   P156743 BE 3     349     349 349 100 Completed Content Development Impact of COVID-19-Induced Recession COVID-19   P170557 BE   137       137 137 100 Completed in World Oil, Gas, and Mineral Markets Response   P166278 Mining for Climate Change BE 5       460   460 460 100 Completed   P160992 Mining Sector Diagnostic (MSD) BE 10   500       500 0 0 Implementation   P170557 Taxing Digital Oil and Gas Operations BE 9   110       110 66 60 Implementation The Mining Investment and Governance   P160992 BE 3 1000       1000 977 98 Implementation Review (MInGov)—Phase I + II   P156743 Water Management in Oil and Gas Operations BE 10     500     500 1 0 Implementation   P159838 World Role of Minerals in Low Carbon Economy BE 2 150 150 150 100 Completed   P174003 Climate-Smart Mining Initiative BE 10           854 823 96 Implementation Total for Global  1,688 2,478 1,641 4,281 77 11,019 8,624 78   Total Total for Region and Global 15,067 8,154 2,824 6,873 2,805 36,576 30,639 84   Program Management and Administration (PMA)           5,854 5,091 87   GRAND TOTAL           42,431 35,730 84   194 EGPS ANNUAL REPORT 2021 Appendix B | financial report, FY2021 195 TABLE B.2: EGPS-2 Grant Implementation Status Africa Total Disbursed + Percentage Components Budget Committed (%) Project (US$, (US$, Disbursed + Country Number1/ Project/Activity Name RE/BE Round 1 2 3 4 SV thousands) thousands) Committed Status Promoting Transparency and Its Social Chad   RE 11 350         350 0 0 Approved Rd 11 Externalities in the Extractive Sector Promoting Transparency and Its   Social Externalities in the Extractive BE 11         50 50 0 0 Approved Rd 11 Sector—Supervision Congo,   Mineral Sector Governance BE 9 700         700 0 0 Approved Rd 9 Dem. Rep. Landscape Restoration and Small- Pending Ghana P171933 RE 11 600         600 0 0 Scale Mining Project Effectiveness P171933 Small-Scale Mining Project—Supervision BE 11         50 50 0 0 Implementation Pending Guinea P176190 Implementing EITI for Impact BE 10 650         650 0 0 Effectiveness Strengthening Transparency in Mali Mali   Mining Sector and Support Women BE 11 350         350 0 0 Approved Rd 11 Mining Entrepreneurship Capacity Building for Regulating Local Pending Mozambique P177172 BE 9     956     956 0 0 Value Creation in the Extractives Sector Effectiveness Total for Africa 2,650 — 956 — 100 3,706 — 0   196 EGPS ANNUAL REPORT 2021 Appendix B | financial report, FY2021 197 East Asia and Pacific Components Total Disbursed + Percentage Budget Committed (%) Project (US$, (US$, Disbursed + Country Number1/ Project/Activity Name RE/BE Round 1 2 3 4 SV thousands) thousands) Committed Status Pending Indonesia P175864 EITI Transition and Mainstreaming Support RE 9 600         600 0 0 Effectiveness P175864 EITI Transition and Mainstreaming—Supervision BE 9       50 50 0 0 Implementation Sustainable Mining Investment Lao PDR P170557 BE 9   600     0 600 79 13 Implementation and Benefit Flows Mongolia   Mongolia EITI implementation RE 10 500         500 0 0 Approved Rd 10   Mongolia EITI implementation (Supervision) BE 10         50 50 0 0 Approved Rd 10 Papua New Gas Resources and Domestic P170589 BE 9   600       600 167 28 Implementation Guinea Market Development Systematic Electronic Extractives Disclosure Philippines   RE 9 536       536 0 0 Approved Rd 9 (EITI Mainstreaming and Systems Integration) Systematic Electronic Extractives   Disclosure (EITI Mainstreaming and BE 9       75 75 0 0 Approved Rd 9 Systems Integration)—Supervision Total for East Asia and the Pacific 1,636 1,200 — — 175 3,011 247 41   198 EGPS ANNUAL REPORT 2021 Appendix B | financial report, FY2021 199 Europe and Central Asia Components Total Disbursed + Percentage Budget Committed (%) Project (US$, (US$, Disbursed + Country Number1/ Project/Activity Name RE/BE Round 1 2 3 4 SV thousands) thousands) Committed Status Albania   Support to Albania’s EITI Compliance Process RE 11 800         800 0 0 Approved Rd 11     Support to Albania’s EITI—Supervision BE 11         50 50 0 0 Approved Rd 11 Armenia P166274 Armenia EITI Support RE 10 400 — — 100 — 500 500 100 Implementation P166274 EITI Implementation in Armenia—Supervision BE 10 — — — — 50 50 0 0 Implementation Kyrgyz   Kyrgyzstan EITI Implementation RE 10 600 — — — — 600 0 0 Approved Rd 10 Republic   Kyrgyzstan EITI Implementation (Supervision) BE 10 — — — 50 50 0 0 Approved Rd 10 Uzbekistan P172414 Gas Sector Reforms Implementation BE 9   700       700 488 70 Implementation Western GOXI Regional Platform for Coal Regions P171194 BE 9   140       140 92 66 Implementation Balkans in Western Balkans and Ukraine Total for Europe and Central Asia 1,800 840 — 100 150 2,890 1,079 70   Latin America and the Caribbean Components Total Disbursed + Percentage Budget Committed (%) Project (US$, (US$, Disbursed + Country Number1/ Project/Activity Name RE/BE Round 1 2 3 4 SV thousands) thousands) Committed Status Mainstreaming Mining Sector Data Argentina P176138 Collection and Dissemination through BE 10 380     70   450 57 13 Implementation EITI Program Implementation Ecuador   Implementation of EITI in Ecuador RE 10 350         350 0 0 Approved Rd 10   Implementation of EITI in Ecuador—Supervision BE 10         50 50 0 0 Approved Rd 10 Peru   Mineral Sector National Policy RE 11   834       834 0 0 Approved Rd 11     Mineral Sector National Policy—Supervision BE 11         50 530 0 0 Approved Rd 11 Total for Latin America and the Caribbean 730 834 — 70 100 1,734 57 0   200 EGPS ANNUAL REPORT 2021 Appendix B | financial report, FY2021 201 Global Components Total Disbursed + Percentage Budget Committed (%) Project (US$, (US$, Disbursed + Country Number1/ Project/Activity Name RE/BE Round 1 2 3 4 SV thousands) thousands) Committed Status Global   CSO Strategy for Extractives RE 9 900         900 0 0 Approved Rd 9     CSO Strategy for Extractives—Supervision BE 9       50 50 0 0 Approved Rd 9 Pending   P177009 Delve 2.0 Project BE 11       600   600 0 0 Effectiveness Policy Options for the Decommissioning Use     BE 11   900       900 0 0 Approved Rd 11 and Reuse of Oil and Gas Offshore Installation Emergency Response Artisanal Mining COVID P175100 BE       5,200   5,200 2,585 50 Implementation Communities Impacted by COVID-19 Response Emergency Response Artisanal COVID P175100 Mining Communities Impacted BE       175 175 83 48 Implementation Response by COVID-19—Supervision P174003 Climate-Smart Mining (CSM) II BE CSM       0 450 138 31 Implementation Total for Global 900 900 — 5,800 225 8,275 2,806 34   Total for Regions and Global 7,716 3,774 956 5,970 750 19,616 4,190 21   Program Management and Administration (PMA)           1,000 120 12   Overall TOTAL           20,616 4,310 21   1/ Project numbers are assigned only when a grant is processed/approved through the Bank’s system; therefore, some of the grants do not have a project number. Refer to the table’s “Status” column. 202 EGPS ANNUAL REPORT 2021 Appendix B | financial report, FY2021 203 TABLE B.3: Recipient-Executed Grant Process Tracking EGPS-1 Africa Grant Amount Activity Project Agreement Effective 1st Project (US$, Initiation Paper Signed (counter- Disburse- Country Number1/ Trust Fund Name thousands) Round Note Approved by WB sign) Date ment Date Closing Date Status Chad P168666 Mainstreaming the Extractive Industries (EITI) 350 6 22-Oct-18 6-Nov-19 25-Nov-19 25-Nov-19 7-May-20 30-Apr-21 Implementation Ethiopia P159798 Ethiopia EITI 241 2 15-Aug-16 1-Dec-16 13-Dec-16 13-Dec-16 20-Nov-17 30-Jun-19 Completed Implementation of Extractive Industries Ghana P163756 298 4 13-Feb-18 23-Jun-18 26-Jul-18 26-Jul-18 24-Jan-19 29-Feb-20 Completed Technical Assistance (EITI) Mauritania P166307 Mauritania EITI Consolidation Project 274 4 18-Dec-17 7-Nov-18 24-Jan-19 24-Jan-2019 15-Apr-19 31-Mar-20 Completed Nigeria P162344 NEITI Reporting Compliance (Phase 1+2) 590 1+4 24-Oct-16 7-Dec-16 7-Dec-16 9-Dec-16 28-Feb-17 30-Apr-20 Completed NEITI Support (Phase 3) 285 5 24-Oct-16 6-Feb-18 2-May-18 2-May-18 26-Mar-19 15-Apr-22 Implementation Senegal P160022 Support to EITI Compliance Process (1) 282 1 12-May-16 19-May-16 20-Jun-16 20-Jun-16 14-Oct-16 30-Apr-20 Completed Support to EITI Compliance Process (2) 451 3 12-May-16 8-Nov-17 21-Nov-17 21-Nov-17 28-Mar-18 30-Jun-20 Completed 13-Feb- Somalia P164175 SOPTAP—Somalia Petroleum 484 4 26-Feb-18 7-Jun-18 11-Jun-18 11-Jun-18 31-Dec-20 Completed 2019 EI Accountability and Governance Tanzania P162493 750 3 2-Jan-18 14-Apr-20 8-Jul-20 8-Jul-20 31-Mar-22 Implementation Enhancement Project Togo P163207 EITI Support Project 153 3 30-May-17 27-Feb-18 2-Mar-18 22-Mar-18 4-Dec-18 31-Dec-20 Completed National Content Development Uganda P162924 203 3 1-Mar-17 9-Aug-17 18-Dec-17 18-Dec-17 4-Oct-18 30-Apr-20 Completed for the Oil Sector EITI Post Compliance Zambia P159717 350 2 29-Apr-16 1-Dec-16 23-Dec-16 11-May-17 29-Jun-17 31-Mar-20 Completed Implementation Support III (1) EITI Post Compliance 273 5 29-Apr-16 31-Jan-19 3—Jan-19 31-Jan-19 11-FEB-20 31-Mar-20 Completed Implementation Support III (2) 204 EGPS ANNUAL REPORT 2021 Appendix B | financial report, FY2021 205 EGPS-1 East Asia and Pacific Grant Activity Project Agreement Effective 1st Project Amount (US$, Initiation Paper Signed (counter- Disburse- Country Number1/ Trust Fund Name thousands) Round Note Approved by WB sign) Date ment Date Closing Date Status Citizen Monitoring for Transparency Indonesia P163797 and Accountability of Licensing and 475 1 10-Sep-20 15-Nov-20 26-Nov-20 26-Nov-20 5-Feb-21 31-Mar-22 Implementation Revenue Management in Mining Sector Improved Governance of Mongolia P158649 423 1 23-Mar-16 23-Jun-16 6-Jul-16 6-Jul-16 23-Aug-16 31-Dec-18 Completed Extractives Project (MIGEP) Second Philippines Extractives Philippines P157976 Industries Transparency Initiative 1477 1 15-Jan-16 21-Jun-16 14-Sep-16 24-Oct-16 3-Jan-17 30-Jun-19 Completed (EITI) Support Project Solomon Solomon Islands Mining P162737 397 3 30-Jul-17 27-Feb-18 4-Apr-18 4-Apr-18 11-Sep-18 30-Jun-19 Completed Islands Governance (SIMGov) EGPS-1 Europe and Central Asia Grant Activity Project Agreement Effective 1st Project Amount (US$, Initiation Paper Signed (counter- Disburse- Country Number1/ Trust Fund Name thousands) Round Note Approved by WB sign) Date ment Date Closing Date Status Support to EITI Compliance Albania P158380 400 1 17-Dec-15 26-Feb-16 19-May-16 19-May-16 18-Jul-16 30-Apr-20 Completed Process Project (1) Support to EITI Compliance 571 3 17-Dec-15 22-May-18 15-Nov-18 28-Dec-18 7-May-20 31-Dec-20 Completed Process Project (2) Armenia P163060 Mineral Sector Policy 225 3 22-Mar-17 21-Aug-17 31-Aug-17 6-Nov-17 02-Aug-18 30-Apr-20 Completed Armenia P166274 Armenia EITI Support 350 5 8-Dec-17 8-Feb-18 20-Mar-18 18-Apr-18 02-Aug-18 31-Jul-21 Implementation Mineral Sector Policy Armenia P173686 250 8 6-May-20 14-Aug-20 17-Dec-20 25-Jan-21 30-Apr-22 Implementation and Reforms EITI Implementation Pending Tajikistan P173802 500 7 10-Jun-20 13-Nov-20 30-Apr-22 Support Project Effectiveness Support to EITI Compliance Ukraine P158379 639 1+3 17-Dec-15 24-Dec-15 24-Dec-15 14-Jan-16 19-Apr-16 31-Dec-19 Completed Process Project (1 + 2) 206 EGPS ANNUAL REPORT 2021 ASSOCIATED TRUST FUND-CLIMATE SMART MINING 207 EGPS-1 Latin America and the Caribbean Grant Amount Activity Project Agreement Effective 1st Project (US$, Initiation Paper Signed (Countersign) Disburse- Country Number1/ Trust Fund Name thousands) Round Note Approved by CD Date ment Date Closing Date Status Subnational Strengthening and Mainstreaming Colombia P169919 400 5 6-Mar-19 8-Aug-19 2-Sept-19 2-Sept-19 22-Sep-20 31-Dec-21 Implementation of Transparency in Extractives Sector Dominican Implementing EITI (1) 190 2 20-Sep-16 2-Jun-17 2-Jun-17 2-Jun-17 06-Mar-18 24-Dec-19 Completed P161434 Republic Implementing EITI (2) 250 6 20-Sep-16 30-Sep-19 30-Sep-19 30-Sep-19 3-Apr-20 24-Apr-22 Implementation Peru P160633 EITI Subnational Implementation 386 1 26-Sep-16 31-Mar-17 3-Apr-17 18-May-17 07-Aug-17 15-Dec-19 Completed Suriname P163612 Suriname EGPS Implementation 319 3 9-Aug-17 06-Dec-17 2-Mar-18 2-Mar-18 15-Aug-18 30-Sep-20 Completed EGPS-1 Middle East and North Africa Grant Amount Activity Project Agreement Effective 1st Project (US$, Initiation Paper Signed (Countersign) Disburse- Country Number1/ Trust Fund Name thousands) Round Note Approved by CD Date ment Date Closing Date Status Iraq P160274 EITI Implementation Support (I) 350 2 26-Feb-16 21-Feb-17 2-May-17 2-May-17 28-Nov-17 31-Dec-19 Completed EITI Implementation Support (II) 450 5 7-Sep-16 17-Dec-17 17-Dec-17 17-Dec-17 6-Nov-18 31-Dec-19 Completed EGPS-1 South Asia Grant Amount Activity Project Agreement Effective 1st Project (US$, Initiation Paper Signed (Countersign) Disburse- Country Number1/ Trust Fund Name thousands) Round Note Approved by CD Date ment Date Closing Date Status Bhutan P163172 Supporting Minerals Policy Reform 229 3 23-Oct-17 2-May-17 5-Jun18 5-Jun-18 19-Nov-18 31-Mar-20 Completed EGPS-1 Global Grant Amount Activity Project Agreement Effective 1st Project (US$, Initiation Paper Signed (Countersign) Disburse- Country Number1/ Trust Fund Name thousands) Round Note Approved by CD Date ment Date Closing Date Status EITI Transparency Validation Data Global P155263 899 1+4 10-Aug-15 8-Dec-15 09-Dec-15 9-Dec-15 13-Apr-16 31-Dec-17 Completed Support (Phases 1 & 2) 208 EGPS ANNUAL REPORT 2021 ASSOCIATED TRUST FUND-CLIMATE SMART MINING 209 EGPS-2 Africa Grant Amount Activity Project Agreement Effective 1st Project (US$, Initiation Paper Signed (Countersign) Disburse- Country Number1/ Trust Fund Name thousands) Round Note Approved - WB Date ment Date Closing Date Status Promoting Transparency and its Social Chad 350 11 20-May-21 Approved Rd 11 Externalities in the Extractive Sector Landscape Restoration and Small- Pending Ghana P171933 600 11 14-Apr-21 30-Aug-21 31-Aug-21 31-Dec-23 Scale Mining Project Effectiveness EGPS-2 East Asia and Pacific Grant Amount Activity Project Agreement Effective 1st Project (US$, Initiation Paper Signed (Countersign) Disburse- Country Number1/ Trust Fund Name thousands) Round Note Approved - WB Date ment Date Closing Date Status Pending Indonesia P175864 EITI Transition and Mainstreaming Support 600 9 6-Jan-21 24-Jun-21 28-Jul-21 28-Jul-21 — 30-Jun-23 Effectiveness Mongolia Mongolia EITI Implementation 500 10 20-Dec-20 Approved Rd 10 Systematic Electronic Extractives Disclosure Philippines 536 9 15-Jun-20 Approved Rd 9 (EITI Mainstreaming and Systems Integration) EGPS-2 Europe and Central Asia Grant Amount Activity Project Agreement Effective 1st Project (US$, Initiation Paper Signed (Countersign) Disburse- Country Number1/ Trust Fund Name thousands) Round Note Approved - WB Date ment Date Closing Date Status Albania Support to Albania’s EITI Compliance Process 800 11 20-May-21 Approved Rd 11 Armenia P166274 Armenia EITI Support 500 10 1-Dec-20 29-Dec-20 17-May-21 28-Jun-21 31-Mar-24 Implementation Kyrgyz Kyrgyzstan EITI Implementation 600 10 1-Dec-20 Approved Rd 10 Republic 210 EGPS ANNUAL REPORT 2021 ASSOCIATED TRUST FUND-CLIMATE SMART MINING 211 EGPS-2 Latin America and the Caribbean Grant Amount Activity Project Agreement Effectiveness 1st Project (US$, Initiation Paper Signed Date (coun- Disburse- Country Number1/ Trust Fund Name thousands) Round Note Approved - WB tersign Date) ment Date Closing Date Status Ecuador Implementation of EITI in Ecuador 350 10 1-Dec-20 Approved Rd 10 Peru Mineral Sector National Policy 834 11 20-May-21 Approved Rd 11 EGPS-2 Global Grant Amount Activity Project Agreement Effectiveness 1st Project (US$, Initiation Paper Signed Date (coun- Disburse- Country Number1/ Trust Fund Name thousands) Round Note Approved - WB tersign Date) ment Date Closing Date Status Global P173826 CSO Strategy for Extractives 900 9 1-Oct-20 Approved Rd 9 / Project numbers are assigned only when a grant is processed/approved through the Bank’s system; 1 therefore, some of the grants do not have a project number. Refer to the table’s “Status” column. TABLE B.4: Bank-Executed Grant Process Tracking EGPS-1 Africa Project Amount (US$, Date of Proposal GFR / Grant Grant End Country Number1/ Grant Name thousands) Round Approval Approval Disbursement Status Africa P155194 African Mining Legislation Atlas (AMLA) 346 2 26-Feb-16 1-Mar-16 29-Jun-18 Completed COVID-19 P170557 Extractives for Transformation: An Africa Regional Study 79 18-Apr-20 14-May-20 31-Oct-20 Completed Response Chad P166399 Petroleum Sector Diagnostics 434 5 27-Oct-17 8-Dec-17 28-Apr-21 Completed Development of Framework for Local Côte d’Ivoire P162283 300 2 15-Oct-16 27-Feb-17 30-Apr-19 Completed Content in the Mining Sector Ethiopia P162820 Pipeline Capacity Building 50 PR4 1-Dec-16 4-Jan-17 25-Jan-18 Completed Madagascar P173440 Madagascar Mining Velirano (EITI) 600 7 20-Jun-19 3-Feb-20 31-Dec-21 Implementation 212 EGPS ANNUAL REPORT 2021 ASSOCIATED TRUST FUND-CLIMATE SMART MINING 213 Project Amount (US$, Date of Proposal GFR / Grant Grant End Country Number1/ Grant Name thousands) Round Approval Approval Disbursement Status P161486 Nigeria Petroleum Sector 220 1 22-Oct-15 29-Aug-16 31-Aug-20 Completed Strengthening Nigerian Petroleum Sector Nigeria P161486 170 5 27-Oct-17 19-Dec-17 31-Oct-19 Completed Policy and Governance—Phase 2 P170557 Review of Nigeria’s Draft Petroleum Industry Bill 117 PR8 13-May-20 20-May-20 30-Apr-21 Implementation Economic Impact of Mining Sector Tanzania P169633 83 6 18-Nov-18 6-Mar-19 31-Dec-21 Implementation Regulatory Changes in Tanzania Zimbabwe P170557 Supporting EITI Scoping and Potential Implementation 333 8 11-Feb-20 8-May-20 31-Oct-21 Implementation EGPS-1 East Asia and Pacific Project Amount (US$, Date of Proposal GFR / Grant Grant End Country Number1/ Grant Name thousands) Round Approval Approval Disbursement Status Lao PDR P171029 Sustainable Energy and Extractives Mining 400 7 20-Jun-19 9-Jul-19 31-Oct-20 Implementation Mongolia P173631 Sustainable Mining Investment and Benefit Flows 400 8 11-Feb-20 28-May-20 30-Apr-22 Implementation Myanmar P171461 TA on Gas Fiscal Terms and Governance 102 8 11-Feb-20 25-Feb-20 30-Apr-21 Completed Pacific Islands P163595 Regulatory Responses to Deep Sea Mining in the Pacific Region 247 3 15-Apr-17 1-May-17 30-Jun-19 Completed P154204 Support to CSOs 139 1 22-Oct-15 1-May-17 30-Apr-19 Completed Papua New Guinea P167472 PNG EITI 500 5 27-Oct-17 25-Feb-19 30-Oct-21 Implementation EGPS-1 Europe and Central Asia Project Amount (US$, Date of Proposal GFR / Grant Grant End Country Number1/ Grant Name thousands) Round Approval Approval Disbursement Status Armenia P162640 EITI Capacity Support 48 3 27-Oct-16 16-Nov-16 31-Mar-18 Completed P162544 Mainstreaming EITI Implementation 81 3 27-Oct-16 21-Nov-16 31-Mar-18 Completed Azerbaijan P170557 Azerbaijan Mining 50 PR10 5-Jan-21 5-Feb-21 31-Oct-21 Implementation 5 & COVID-19 Central Asia P166894 Mine Closure and Economic Regeneration 526 27-Oct-17 3-May-18 31-Mar-21 Completed Response Georgia P168804 Mineral Potential Promoting Mining Investments in Georgia 350 8 11-Feb-2020 8-Mar-21 31-Aug-22 Implementation Kyrgyz Republic P175829 Enhancing Transparency in the Governance of Extractives 300 PR8 9-Jun-20 14-Dec-20 30-Apr-22 Implementation 214 EGPS ANNUAL REPORT 2021 ASSOCIATED TRUST FUND-CLIMATE SMART MINING 215 EGPS-1 Europe and Central Asia Project Amount (US$, Date of Proposal GFR / Grant Grant End Country Number1/ Grant Name thousands) Round Approval Approval Disbursement Status Pending Serbia P177192 Low Carbon Mining Transaction Capacity Building 185 PR11 6/24/21 12-Jul-21 30-Sep-22 Effectiveness Uzbekistan P172414 Gas Sector Reforms 500 7 20-Jun-19 6-Oct-19 30-Apr-21 Implementation Decarbonization and Clean Energy Western Balkans P171194 360 10 15-Dec-20 19-Jan-21 30-Apr-22 Implementation Transition in the Western Balkans EGPS-1 Latin America and the Caribbean Project Amount (US$, Date of Proposal GFR / Grant Grant End Country Number1/ Grant Name thousands) Round Approval Approval Disbursement Status Bolivia P170557 Lithium Mining 80 PR8 13-Apr-20 17-Jun-20 31-Oct-21 Implementation Colombia P158486 Supporting Review of Mining Legal Framework 32 PR5 27-Mar-18 3-May-18 30-Nov-18 Completed Ecuador P170557 Mineral Cadastre Systems and EITI Scoping 330 6 27-Jun-18 2-Apr-19 31-Oct-21 Completed Guyana P162883 Guyana EGPS 100 4 10-May-17 3-May-17 31-Oct-18 Completed Support for Improved Management of Mining Peru P173795 450 8 11-Feb-20 19-Mar20 30-Apr-22 Implementation and Sustainable Development Suriname P162883 Suriname EGPS and EITA Support 296 4+PR4 10-Mar-17 3-May-17 31-Jan-20 Completed 216 EGPS ANNUAL REPORT 2021 ASSOCIATED TRUST FUND-CLIMATE SMART MINING 217 EGPS-1 Middle East and North Africa Project Amount (US$, Date of Proposal GFR / Grant Grant End Country Number 1/ Grant Name thousands) Round Approval Approval Disbursement Status P162782 Supporting the Petroleum Sector Modernization Program 72 PR2 13-Dec-16 13-Dec-16 15-Aug-17 Completed Egypt P176321 Support to Gold Mining Sector 700 10 15-Dec-20 1-Apr-21 30-Jun-22 Implementation P163871 Gas Pricing Regulations 523 3 27-Oct-16 4-May-17 30-Sep-18 Completed Iraq P163871 Natural Gas Market Framework Implementation TA 95 PR3 7-May-18 12-Jun-18 30-Nov-19 Completed Tunisia P163810 Gas Sector Governance & Competitiveness 95 4 10-Mar-17 14-Aug-17 31-Oct-18 Completed EGPS-1 Global Project Amount (US$, Date of Proposal GFR / Grant Grant End Country Number 1/ Grant Name thousands) Round Approval Approval Disbursement Status P170557 Africa—Regional Training in Mining Tax Administration and Policy Making 6 8 11-Feb-20 23-Mar-20 31-Oct-21 Closed/Dropped P175205 African Mining Legislation Atlas (AMLA) Phase 2 9 500 15-Jun-20 1-Jul-21 30-Sep-22 Implementation P164674 ASM Global Center of Excellence (Governing Body) 7 6 27-Jun-18 28-Sep-18 31-Oct-20 Closed/Dropped P164674 Artisanal and Small-Scale Mining (ASM) Global Platform 100 PR3 24-Jul-17 2-Aug-17 31-Oct-19 Completed P159661 ASM Global Database 399 2 26-Feb-16 14-Mar-16 30-Nov-19 Completed P156743 Broadening the Impact of the ELLED CoP 149 8 11-Feb-20 2-Mar-20 31-Aug-22 Implementation Global P168863 Closing Gender Gap in Extractives—2nd Global Gender Conference 106 7 20-Jun-19 13-Aug-19 30-Apr-21 Completed P164671 EGPS—Closing the Gender Equity Gap in Extractives 100 PR4 15-Aug-17 24-Aug-17 31-Jul-20 Completed P168863 EGPS—Closing the Gender Gap in Extractives 327 6 27-Jun-18 1-Oct-18 31-Mar-21 Implementation P176868 Closing the Gender Gap in Extractives—2.0 50 PR10 28-Apr-21 17-May-21 30-Sep-22 Implementation P164677 CSO Strategy for Extractives 291 3 27-Oct-16 18-Dec-17 30-Sep-19 Completed Data Collaboration for Improved Policy Responses to COVID-19 P159661 400 27-Apr-20 29-Apr-20 31-Aug-20 Completed COVID-Related Impacts in ASM Communities Response 218 EGPS ANNUAL REPORT 2021 ASSOCIATED TRUST FUND-CLIMATE SMART MINING 219 EGPS-1 Global Project Amount (US$, Date of Proposal GFR / Grant Grant End Country Number 1/ Grant Name thousands) Round Approval Approval Disbursement Status P156743 Decarbonization Pathways for Oil and Gas Sector 400 10 1-Dec-20 19-Feb-21 31-Aug-22 Implementation P159661 Delve 1.0 189 6 27-Jun-18 7-Sep-18 31-Aug-20 Completed P159661 Delve 1.0 Operations 350 7 20-Jun-19 26-Jul-19 31-Dec-21 Implementation EITI International: Assistance to the Implementing P161739 98 3 27-Oct-16 21-Oct-16 30-Jun-18 Completed Country Working Group (ICWG) P156743 ELLED CoP 79 1 22-Oct-15 11-Nov-15 30-April-19 Completed P156743 ELLED CoP (Phase II 313 6 27-Jun-18 13-Aug-18 30-Jan-22 Implementation P156743 ELLED Interactive Framework 250 4 10-Mar-17 26-Mar-17 30-Apr-20 Completed P163395 Extractive Industries Collective 400 3 27-Oct-16 3-May-17 30-Apr-20 Completed P163854 Extractives MOOC2 225 4 10-Mar-17 13-Apr-17 30-Apr-20 Completed P171194 Global Knowledge & Gender Impact on Energy Transition in Coal Regions 951 7 20-Jun-19 6-Sep-19 31-Oct-2021 Implementation Pending Global P171194 Global Knowledge on Energy Transition in Coal Regions 200 PR11 29-Jun-21 26-Jul-21 31-Aug-22 Effectiveness P170557 Global Review of Mineral Cadastre Systems 92 6 27-Jun-18 2-Apr-19 30-Oct-21 Completed P156743 Green Extractives-Led Local Content Development 349 3 27-Oct-16 5-Apr-17 31-Aug-20 Completed Impact of COVID-19–Induced Recession in COVID-19 P170557 137 23-Apr-20 29-Apr-20 30-Oct-20 Completed World Oil, Gas, and Mineral Markets Response P166278 Mining for Climate Change 460 5 27-Oct-17 5-Dec-17 31-Dec-19 Completed P160992 Mining Sector Diagnostics (MSD) 500 10 1-Dec-20 15-Jan-21 31-Aug-22 Implementation P170557 Taxing Digital Oil and Gas Operations 110 9 15-Jun-20 13-May-21 31-Jul-22 Implementation P160992 The Mining Investment and Governance Review (MinGov)—Phases I & II 1,000 3 27-Oct-16 14-Nov-16 30-Apr-22 Implementation P156743 Water Management in Oil and Gas Sector 500 10 1-Dec-20 11-Feb-21 31-Aug-22 Implementation P159838 World Role of Minerals in Low Carbon Economy 150 2 26-Feb-16 3-May-16 31-Oct-17 Completed P174003 Climate Smart Mining (CSM) Initiative 854 9 11-Feb-20 22-Apr-2020 30-Oct-21 Implementation 220 EGPS ANNUAL REPORT 2021 ASSOCIATED TRUST FUND-CLIMATE SMART MINING 221 EGPS-2 Africa Project Amount (US$, Date of Proposal GFR / Grant Grant End Country Number1/ Grant Name thousands) Round Approval Approval Disbursement Status Congo, Dem. Rep. Mineral Sector Governance 700 9 15-Jun-20 Approved Rd 9 Guinea P176190 Implementing EITI for Impact 650 10 1-Dec-20 14-Jun-21 30-Oct-23 Pending Effectiveness Strengthening Transparency in Mali Mining Sector Mali 350 11 20-May-21 Approved Rd 11 and Support Women Mining Entrepreneurship Capacity Building for Regulating Local Value Mozambique P177172 956 9 15-Jun-20 Pending Effectiveness Creation in the Extractives Sector EGPS-2 East Asia and Pacific Project Amount (US$, Date of Proposal GFR / Grant Grant End Country Number1/ Grant Name thousands) Round Approval Approval Disbursement Status Lao PDR P170557 Sustainable Mining Investment and Benefit Flows 600 9 15-Jun-20 9-Jul-19 30-Apr-22 Implementation Papua New Guinea P170589 PNG Gas Resources and Domestic Market Development 600 9 15-Jun-20 18-Mar-2019 30-Apr-22 Implementation EGPS-2 Europe and Central Asia Project Amount (US$, Date of Proposal GFR / Grant Grant End Country Number1/ Grant Name thousands) Round Approval Approval Disbursement Status Uzbekistan P172414 Gas Sector Reforms Implementation 700 9 15-Jun-20 6-Oct-2019 30-Apr-2022 Implementation GOXI Regional Platform for Coal Regions Western Balkans P171194 140 9 15-Jun-20 3-Jun-19 31-Jan-2022 Implementation in Western Balkans and Ukraine 222 EGPS ANNUAL REPORT 2021 ASSOCIATED TRUST FUND-CLIMATE SMART MINING 223 EGPS-2 Latin America and the Caribbean Project Amount (US$, Date of Proposal GFR / Grant Grant End Country Number1/ Grant Name thousands) Round Approval Approval Disbursement Status Mainstreaming Mining Sector Data Collection and Argentina P176138 450 10 1-Dec-20 19-Mar-21 30-Apr-23 Implementation Dissemination through EITI Program Implementation EGPS-2 Global Project Amount (US$, Date of Proposal GFR / Grant Grant End Country Number1/ Grant Name thousands) Round Approval Approval Disbursement Status P177009 Delve 2 Project 600 11 20-May-2021 1-Jul-21 31-Oct-23 Implementation P174003 Climate Smart Mining (CSM) II 450 CSM 11-Feb-20 22-Apr-2020 30-Sep-22 Implementation Global Emergency Response—Artisanal Mining P175100 5,200 COVID 25-Aug-20 9-Sep-20 30-Sep-22 Implementation Communities Impacted by COVID-19 Policy Options for the Decommissioning Use and 900 11 20-May-21 Approved Rd 11 Reuse of Oil and Gas Offshore Installation 1/ Project numbers are assigned only when a grant is processed/approved through the Bank’s system; therefore, some of the grants do not have a project number. Refer to the table’s “Status” column. 224 EGPS ANNUAL REPORT 2021 ASSOCIATED TRUST FUND-CLIMATE SMART MINING 225