The World Bank Implementation Status & Results Report Nigeria: Mineral Sector Support for Economic Diversification Project (MinDiver) (P159761) Nigeria: Mineral Sector Support for Economic Diversification Project (MinDiver) (P159761) AFRICA WEST | Nigeria | Energy & Extractives Global Practice | IBRD/IDA | Investment Project Financing | FY 2017 | Seq No: 5 | ARCHIVED on 23-Dec-2020 | ISR41741 | Implementing Agencies: Ministry of Mines and Steel Development, Federal Ministry of Finance Key Dates Key Project Dates Bank Approval Date: 14-Apr-2017 Effectiveness Date: 02-Nov-2017 Planned Mid Term Review Date: 16-Mar-2020 Actual Mid-Term Review Date: 21-May-2020 Original Closing Date: 30-Jun-2022 Revised Closing Date: 30-Jun-2022 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) To enhance the mining sector's contribution to the economy by strengthening key government institutions, improving information infrastructure and knowledge, and fostering domestic investment in the sector. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Establishing a Strong Foundation for Mining Sector Development:(Cost $68800000.00 M) Facilitating Downstream Sector Development & Enhancing Competitiveness:(Cost $67600000.00 M) Project Management and Coordination:(Cost $9600000.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Unsatisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Unsatisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions A World Bank (WB) team carried out a virtual Mid-Term Review (MTR) for the Nigeria: Mineral Sector Support for Economic Diversification Project (MinDiver) from May 21 to June 3, 2020, with several follow-up discussions in June - August 2020. The objective of the Mid-Term Review is to undertake a comprehensive review of the project implementation, including taking stock of project performance; noting any changes in the strategic context and risks; and making relevant decisions regarding the future operation of the project, including the need for prioritization of activities, project restructuring, likelihood that project resources will be fully utilized by the closing date, (re-)allocation of budget, as well as implementation arrangement adjustments. The ISR is based on the findings of the MTR. A summary of finding of the MTR is as follows: o With less than two years remaining in the project – disbursements are low at 28%. 12/23/2020 Page 1 of 10 The World Bank Implementation Status & Results Report Nigeria: Mineral Sector Support for Economic Diversification Project (MinDiver) (P159761) o A number of sub-components and activities have yet to begin implementation including A3. Skills Building and Education Support; B2. Catalyzing the Mineral Sector for Regional Development; B4.3 Addressing Access to Finance and Mineral Sector Investment Climate Constraints. o Several of the key project indicators have not met their annual target. For these reasons, the MTR confirmed that the project is now rated Moderately Unsatisfactory. The PIU for the project, together with project beneficiaries, has prepared a time-bound action plan to address the bottlenecks identified by the MTR. Despite the project delays, there are several notable achievements, including the following:  A.1 Strengthening Mining Governance, Transparency, Accountability and Administration i. Strengthening the Mining Cadastre Office (MCO). Support was provided to upgrade, automate, and decentralize the MCO. The upgraded licensing management system (cadastre) and procedures are considered to be transparent, publicly available, and nondiscretionary, leading to significant improvements to governance and transparency in the sector. ii. Strengthening Revenue Collection. Ongoing support is currently being provided to identify revenue leakages, strengthen revenue assessment and to develop an action plan to combat smuggling.  A.2 Strengthening Geological Knowledge and Information Infrastructure i. Establishment of Geodata Centre. A geodata centre as a referral/access point for geo-science information has nearly been established at the NGSA, and has included technical assistance to NGSA, the installation of critical equipment and some renovation work. As part of this project, the British Geological Survey (BGS) reviewed and compiled an electronic geodata archive for NGSA, and will develop a geodata policy and data protocols to support transparent use of the data. ii. Institutional Review of NGSA. BRGM (the French geologic survey) concluded an institutional review of the NGSA, which includes a final report that prioritizes activities, acquisition of equipment and data, as well as capacity building. On the basis of these findings and recommendations, procurement equipment for NGSA is nearly finalized and other technical assistance activities are expected to be implemented during the next phase of the project. iii. Geodata Collection and Dissemination. Procurement is ongoing for an airborne geophysical survey and topographic map in the amount of US $18 million to identify prospective areas. The acquisition of geodata is aimed at developing a more in-depth knowledge of the subsurface, increasing awareness of geological potential in prospective areas, and attracting investment into the sector. This will be complemented by an on-going and active investment promotion program that was initiated at the start of the project.  A.4 Environmental, Health and Social Performance i. Environmental and Social Assessment (SESA). A SESA and Action Plan for the sector was completed during the first half of the project. The primary objective of the SESA is to identify the priority actions Government can take to foster environmentally sustainable, socially equitable and inclusive development of Nigeria’s mining sector. During the remaining life of the project, those key recommendations that are not already under implementation, will be picked-up in the project and implemented in collaboration with relevant government MDAs. In addition, several E&S-related activities are being implemented with regards to proposed civil work activities in the project, such as the construction, renovation and rehabilitation of existing priority infrastructure. Several very key activities on gender inclusion are also currently under procurement. To this end, the project team has commissioned the preparation of an Environmental and Social Management Plan and Resettlement Action plan for these activities. These plans are to be completed in the coming weeks as the COVID-19 situation improves.  B.1 Developing measures for formalizing, regulating and inventorying ASM i. Support to Artisanal and Small-Scale Miners (ASM). Given that the vast majority of mining activities in Nigeria are undertaken by artisanal and small-scale miners, for whom mining represents an important source of jobs and livelihoods, the ASM sub-component of the project is considered to be foundational. This sub-component currently includes several critical activities being implemented that will formalize artisanal miners into cooperatives, design and implement an innovative remote sensing monitoring system, support the growth and development of small-scale mining enterprises, and provide technical assistance and capacity building to ASM inspectorate services at the MMSD. ii. Addressing the intersection between E&S management, conflict artisanal and small-scale miners. Currently under implementation is a critical piece of technical assistance that will go a long way in helping the government achieve its goal of ensuring sound and sustainable management of environmental and social impacts, while fostering the development of the sector. The following will be achieved under this activity: i) reviewing and providing recommendations on the legal and regulatory framework for environmental and social management in the mining sector to promote sound environmental management and social equity, aimed at improving the benefit streams to host communities whilst, triggering activities that will lead to sectoral development and growth; ii) redesigning a policy framework that will integrate best practice on environmental and social concerns, involuntary resettlement and participatory stakeholder engagement in a manner that will promote and sustain rapid mineral resource development in Nigeria; and iii) developing guidelines in the sector to mitigate against possible conflict between landowners and mining (including ASM) operators. Risks Systematic Operations Risk-rating Tool 12/23/2020 Page 2 of 10 The World Bank Implementation Status & Results Report Nigeria: Mineral Sector Support for Economic Diversification Project (MinDiver) (P159761) Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Substantial Substantial Macroeconomic Moderate Moderate Moderate Sector Strategies and Policies Low Low Moderate Technical Design of Project or Program Substantial Substantial Substantial Institutional Capacity for Implementation and Moderate Moderate Substantial Sustainability Fiduciary Moderate Moderate Moderate Environment and Social Substantial Substantial Substantial Stakeholders Substantial Substantial Substantial Other -- -- Substantial Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes Mining information management systems (including geological database, DSS, EIMS) developed. Only DSS IN00842356 ►Mining information management systems (including geological database, DSS, EIMS) developed. Only DSS established but not rolled-out. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target A DSS system was initially developed, but it has been suspended I) DSS established, but due to technical rollout on hold, based on issues. NGSA/NSRM discussion with TT and EA Geodata centre is review of the system in currently being All systems in place None of the systems April 2019; 2) Cadastre designed by the British and in use by staff in Value have been fully system is currently being Geological Survey relevant agencies and developed upgraded and will be Agency Upgrading institutions integrated into the MIST; and automation of and 3) Geodata based MCO for online currently being prepared. applications, e- recording, archiving currently ongoing and expected to go live in 2020. Date 01-May-2017 06-Nov-2019 24-Nov-2020 01-May-2022 As part of the proposed project restructuring, this indicator will be revised based on planned activities. Comments: Number of proof of concept transactions undertaken through the project IN00842357 12/23/2020 Page 3 of 10 The World Bank Implementation Status & Results Report Nigeria: Mineral Sector Support for Economic Diversification Project (MinDiver) (P159761) ►Number of proof of concept transactions undertaken through the project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 7.00 Date 01-May-2017 06-Nov-2019 24-Nov-2020 01-May-2022 The proof of concept activity at infancy stage, site visits have been done to evaluate companies that applied. The selection of proof of concept sites (assets) is on hold. During the initial stages the MMSD/PIU team visited numerous sites throughout the country to verify the assets of the companies that have applied for Proof of Concept support, and also to ascertain the level of support needed. The project Comments: requested for proposals for this activity and collected about 250 expressions of interests. Of these about 30 sites were visited, out of which 11 have been reviewed and 2 earmarked for potential further development. Based on the proposed restructuring, the target for this indicator is likely to be revised to reflect planned activities for the project going forward. Geological knowledge enhanced through an integrated geological database made publically accessable IN00842358 ►Geological knowledge enhanced through an integrated geological database made publically accessable (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 01-May-2017 06-Nov-2019 24-Nov-2020 01-May-2022 NGSA/NSRMEA Geodata centre and databased is currently being established. This activity as largely on Comments: track with an enhance set of activities focusing on geodata under the proposed restructured project. Increased economic linkages from industrial minerals to the services and manfactoring sectors IN00842359 ►Increased economic linkages from industrial minerals to the services and manfactoring sectors (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 10.00 Date 01-May-2017 06-Nov-2019 24-Nov-2020 01-May-2022 This indicator proved difficult to monitor and ascribe director atribution to project activities. As a result, the indicator will be revised through the proposed project restructuring to reflect realistic impact resulting from planned and on-going activities. The project has financed a consultancy to deepen the understanding of the industrial minerals sector of Nigeria and to design a roadmap to improve industrial minerals contribution to Nigeria’s economy. An Industrial Minerals Roadmap was launched, hosted by MMSD with Comments: participation of sector stakeholders. The strategy for expediting the development of industrial minerals involves supporting local industrial mineral producers with the necessary mining and mineral processing equipment identified to be hindering the production of specified mineral commodities. The next phase of implementation will focus on opportunities from tin, barite, and jewlery/gemstones. ASM operators inventoried, formalized, and supported through technical assistance IN00842360 12/23/2020 Page 4 of 10 The World Bank Implementation Status & Results Report Nigeria: Mineral Sector Support for Economic Diversification Project (MinDiver) (P159761) ►ASM operators inventoried, formalized, and supported through technical assistance (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 40.00 Date 01-May-2017 06-Nov-2019 24-Nov-2020 01-May-2022 Activities related to ASM formalization are progressing and are on track to achieve planned results. A consultancy for the formalization of ASM and remote sensing system is currently ongoing. The consultants are to develop a programme for the formalization of artisanal miners into cooperatives and small-scale Comments: miners into larger mineral and financial enterprises. This activity will also design and implementation of an ASM remote sensing system in which the ASM Department at the MMSD will use to monitor mining activities. Formalization activities have been delayed due to COVID-19. Mining exportation and production projects subject to formal environmental and safety inspections IN00842361 ►Mining exploration and production projects subject to formal environmental and safety inspections following good international practices set under the project (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 75.00 Date 01-May-2017 06-Nov-2019 24-Nov-2020 01-May-2022 Production data collected from Artisinal, Small and Medium size mining operations IN00842362 ►Production data collected from Artisinal, Small and Medium size mining operations (as a % of total number of operations inventoried under the project) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 50.00 Date 24-Nov-2020 15-Apr-2019 07-Dec-2020 30-Jun-2022 The activities related to ASM are currently under implementation and are expected to achieve their intended results. A consultancy for the formalization of ASM and remote sensing system is currently ongoing The consultants are to develop a programme for the formalization of artisanal miners into cooperatives and Comments: small-scale miners into larger mineral and financial enterprises. This activity will also design and implementation of an ASM remote sensing system in which the ASM Department at the MMSD will use to monitor mining activities. Overall a database of ASM will be develop with the tools and skills gained from this activity. Overall Comments PDO The results framework, including a number of indicators and targets will be revised during the restructuring, to better align with the project design. While several indicators a behind meeting their annual targets, for many of them, the team expects that implementation accelerates, by the close of the project all of the relevant indicators will have achieve their intended targets. Intermediate Results Indicators by Components 12/23/2020 Page 5 of 10 The World Bank Implementation Status & Results Report Nigeria: Mineral Sector Support for Economic Diversification Project (MinDiver) (P159761) Establishing a Strong Foundation for Mining Sector Development IN00842363 ►Functional reviews undertaken and action plan implemented (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target A review of several key A review of several Functional review No functional review has agencies has been key agencies has been Value undertaken and action taken place completed including the completed including plan fully implemented. NGSA and SMDF. the NGSA and SMDF. Date 01-May-2017 06-Nov-2019 07-Dec-2020 01-May-2022 NGSA assessment has been completed and the consultants have submitted their recommendations, which are to be implemented by MinDiver A consulting firm has designed an institutional and administrative restructuring plan for SMDF in the first Comments: phase of the project. While phase 2 is expected to constitute the implementation of the proposed structure A Review, and preparation of Business and sustainability plan is currently being developed for NIMG and NMDC. IN00842366 ►Establishment of a system for the transparent assessment and collection of revenues from the mining sector (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Under preparation - Consultancy to assist Consultancy to assist with identification of with identification of revenue leakages, Revenue system for revenue leakages, strengthen revenue assessment and No such system has strengthen revenue Value assessment and develop collection fully been established assessment and action plan to combat established and develop action plan to smuggling has been operational combat smuggling is procured and is currently under implementation providing support to the MMSD Date 01-May-2017 06-Nov-2019 07-Dec-2020 01-May-2022 IN00842368 ►Establishment fiscal accountability and transparency framework for the Solid Mineral Development Fund (SMDF) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Independent audit of Fiscal accountability and No fiscal accountability the SMDF carried out transparency framework Value and transparency Yes on an annual basis under preparation framework in place. and disseminated publicly. Date 01-May-2017 06-Nov-2019 07-Dec-2020 01-May-2022 IN00842370 ►Number of exploration sites monitored and inspected by the Mines Inspectorate Department in collaboration with other relevant agencies (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 40.00 Date 01-May-2017 06-Nov-2019 07-Dec-2020 01-May-2022 12/23/2020 Page 6 of 10 The World Bank Implementation Status & Results Report Nigeria: Mineral Sector Support for Economic Diversification Project (MinDiver) (P159761) An activity to develop a mines Inspectorate framework for ASM field inspection is currently ongoing. Site Comments: inspections have commenced to ensure sites are operating according to laws and regulations. IN00842372 ►Number of staff of MMSD and agencies trained through MINDIVER to manage, regulate, and monitor the mining sector, disaggregated by gender and function (policy, regulation, planning, revenue management (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 85.00 120.00 200.00 Date 01-May-2017 06-Nov-2019 07-Dec-2020 01-May-2022 IN00842374 ►Partnership programs for skill development and vocational training under implementation (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target A business and Procurement of critical feasibility study has equipment for the been completed for Action plan developed, NIMG has been functioning of the NIMG NIMG, however partnerships established but has not Value is in progress, as is the implementation is yet established, and been effective in fulfilling preparation of a strategy to commence. training programs its mandate and action plan for the Equipment support for implemented institute. NIMG is in progress. Date 01-May-2017 06-Nov-2019 07-Dec-2020 01-May-2022 IN00842375 ►Decision Support System upgraded with new geo-data on strategic areas (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 01-May-2017 06-Nov-2019 07-Dec-2020 01-May-2022 This activity is currently on hold. Comments: IN00842376 ►Citizen participation and accountability mechanism established for CSO/CBO/Non-state actor participation in the mineral value chain (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 01-May-2017 06-Nov-2019 07-Dec-2020 01-May-2022 Facilitating Downstream Sector Development & Enhancing Competitiveness IN00842364 ►Number of mineral resources identified from new geoscience knowledge and information collected (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 10.00 12/23/2020 Page 7 of 10 The World Bank Implementation Status & Results Report Nigeria: Mineral Sector Support for Economic Diversification Project (MinDiver) (P159761) Date 01-May-2017 06-Nov-2019 07-Dec-2020 01-May-2022 Airborne geophysical survey and Topographical map survey activities are currently under procurement Comments: and expected to commence Q! 2021 IN00842367 ►Number of potential mineral prospectivity areas identified for targeting (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 18.00 Date 01-May-2017 06-Nov-2019 07-Dec-2020 01-May-2022 Airborne geophysical survey and Topographical map survey activities are currently under procurement Comments: and expected to commence Q! 2021 IN00842369 ►Number of artisanal miner cooperatives accessing finance and equipment from microfinance institutions and leasing companies (percentage that are female) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 100.00 Date 01-May-2017 06-Nov-2019 07-Dec-2020 01-May-2022 Formalization of ASM activity is still ongoing, and scheduled to be completed in 2022 Comments: IN00842371 ►Guidance on local supply chain development for industrial minerals developed (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 01-May-2017 06-Nov-2019 07-Dec-2020 01-May-2022 IN00842373 ►Mechanism for attracting long term capital into the SMDF SPV in place (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 01-May-2017 06-Nov-2019 07-Dec-2020 01-May-2022 Project Management and Coordination IN00842365 ►Number of ineligible expenditures (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 0.00 Date 02-Nov-2017 06-Nov-2019 07-Dec-2020 30-Jun-2022 12/23/2020 Page 8 of 10 The World Bank Implementation Status & Results Report Nigeria: Mineral Sector Support for Economic Diversification Project (MinDiver) (P159761) Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P159761 IDA-59900 Effective USD 150.00 150.00 0.00 41.97 113.94 27% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P159761 IDA-59900 Effective 14-Apr-2017 08-May-2017 02-Nov-2017 30-Jun-2022 30-Jun-2022 Cumulative Disbursements PBC Disbursement Achievement Disbursed amount in Disbursement % PBC ID PBC Type Description Coc PBC Amount Status Coc for PBC 12/23/2020 Page 9 of 10 The World Bank Implementation Status & Results Report Nigeria: Mineral Sector Support for Economic Diversification Project (MinDiver) (P159761) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 12/23/2020 Page 10 of 10