THE
      WORLD
      BANK
                              Papua New Guinea                                                                             93400
                              Second Mining Sector
                              Institutional Strengthening
                              Technical Assistance Project

                                                                                                      Support mining communities to
  Improving the benefits from the mining industry to the national budget
                                                                                                      better monitor the delivery of
                   and mining-affected communities.                                                   community programs and
                                                                                                      services.
Background
Papua New Guinea is a relatively young country, having gained independence in 1975. Since then
                                                                                                      Empower women and youth
minerals—particularly gold and copper—have been the backbone of the economy. However, the             living in mining areas.
country remains in a weak state, having made only modest progress in transforming its mineral
wealth into poverty reduction and better living conditions for its people.                            Improve the effectiveness of key
                                                                                                      institutions in the mining, oil and
                                                                                                      gas industries.




About the Project
The Second Mining Sector Institution Strengthening Technical Assistance Project will build on
the results of the first technical assistance project in this area (closed in 2006) which worked to
                                                                                                      Location: The project will work in
strengthen institutional capacity within the Mining Department and the Internal Revenue
                                                                                                      areas affected by extractive
Commission, and contributed to improving the framework for socially and environmentally
                                                                                                      industries across Papua New
sustainable private mineral investment.
                                                                                                      Guinea.

This second project aims to improve the benefits from the extractive industries —mining, oil and
                                                                                                      Approval Date: 26 June 2008
gas—to the national budget and to mining-affected communities. The project will also work to
mitigate the mining sector’s health and safety risks for small -scale miners. After agriculture,      Closing Date: 31 December 2013
small-scale mining is the largest generator of rural incomes, supporting an estimated 500,000
people, including the miners and their family members.                                                Total Project Cost: US$18.7
                                                                                                      million
These objectives will be achieved through improving effectiveness of key institutions, supporting
communities to be better able to monitor the delivery of community programs and services,             Donors: World Bank
empowering disadvantaged groups—including women and youth—in areas affected by                        (International Development
extractive industries, and improving accountability of the sector through better management           Association)—US$17 million
and use of mining-related revenues.                                                                   Papua New Guinea
                                                                                                      Government—US$1.7 million
The primary target groups are the institutions involved in the mining sector, the communities in
the vicinity of both large-scale and small-scale mining operations, and the recipients and            Implementing Agency: Mineral
managers of mining benefits streams.                                                                  Resources Authority


The Project consists of five components:                                                                    Contact: World Bank
 Strengthening the policy and regulatory frameworks for the mining sector;                                  Task Team Leader
 Strengthening mining sector governance, regulation, and sustainable development outcomes;
 Improving revenue collection and audits of the sector;                                              Graeme Hancock
 Strengthening the foundations for a conflict-free mining sector in Bougainville; and                Senior Energy Specialist, Mining
 Project management.                                                                                 ghancock1@worldbank.org

                                                                                                          www.worldbank.org/pg