The World Bank Implementation Status & Results Report Energy and Mineral Sectors Strengthening Project II (P170850) Energy and Mineral Sectors Strengthening Project II (P170850) LATIN AMERICA AND CARIBBEAN | Brazil | Energy & Extractives Global Practice | IBRD/IDA | Investment Project Financing | FY 2020 | Seq No: 2 | ARCHIVED on 26-Mar-2021 | ISR46053 | Implementing Agencies: Federative Republic of Brazil, Ministério de Minas e Energia Key Dates Key Project Dates Bank Approval Date: 22-May-2020 Effectiveness Date: -- Planned Mid Term Review Date: 24-Apr-2023 Actual Mid-Term Review Date: Original Closing Date: 31-Dec-2025 Revised Closing Date: 31-Dec-2025 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) To strengthen institutional capacity for market efficiency taking into consideration climate resilience in the energy and mining sectors in Brazil. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Component 1 – Technical assistance to increase efficiency, long term infrastructure adequacy and climate resilience in the energy and mining sectors.:(Cost $20.07 M) Component 2 – Institutional strengthening of energy and mining institutions to establish and implement strategies, policies and regulation:(Cost $17.48 M) Component 3 – Implementation support, monitoring and evaluation, knowledge sharing and dissemination.:(Cost $0.45 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Moderately Satisfactory Overall Risk Rating Moderate Moderate Implementation Status and Key Decisions The Project was approved by the Bank's Board on May 22, 2020. The project was approved by the Senate on December 15, 2020. Loan signature and effectiveness now awaits approval of the national budget which has experience extraordinary delays. 3/26/2021 Page 1 of 7 The World Bank Implementation Status & Results Report Energy and Mineral Sectors Strengthening Project II (P170850) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Moderate Moderate Moderate Macroeconomic Moderate Moderate Moderate Sector Strategies and Policies Substantial Substantial Substantial Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and Moderate Moderate Moderate Sustainability Fiduciary Moderate Moderate Moderate Environment and Social Substantial Substantial Substantial Stakeholders Moderate Moderate Moderate Other Low Low Low Overall Moderate Moderate Moderate Results PDO Indicators by Objectives / Outcomes Pillar: Climate resilience IN00972124 ►PDO 1- Published Electricity sector expansion plans for increased security of supply (Number) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 2.00 Date 01-Jan-2020 27-Aug-2020 27-Aug-2020 31-Dec-2025 This indicator will measure the number of climate informed deliverables produced with support from the project, that have resulted in actual plans or procedures published. This will be measured relative to a Comments: baseline of zero, based on administrative information collected by the PIU and regularly reported in the Implementation Progress Report. IN00972181 ►PDO 2 - Climate-smart mining plan updated for the strategic development of mining sector (Number) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 1.00 Date 01-Jan-2020 27-Aug-2020 27-Aug-2020 31-Dec-2025 3/26/2021 Page 2 of 7 The World Bank Implementation Status & Results Report Energy and Mineral Sectors Strengthening Project II (P170850) This indicator will measure the formulation of a climate-smart mining plan for the strategic development of the sector by the national government of Brazil, with the project’s support, incorporating a climate smart Comments: mining framework. The current plan does not incorporate a climate smart mining framework, and thus this will be measured relative to a baseline of zero. The indicator will be based on administrative information collected by the PIU. Pillar: Market Efficiency IN00972125 ►PDO 3 - Policy and market regulatory changes, to enhance market efficiency, published for consultation (Number). (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 2.00 Date 01-Jan-2020 27-Aug-2020 27-Aug-2020 31-Dec-2025 This indicator will measure the project’s success in supporting the development and publication of updated policy or regulation material to enhance market efficiency in the energy and mining sectors. The project will support this objective by informing these changes through studies, policy notes, and assessments. The indicator be based on administrative information collected by the PIU. Market efficiency is understood as : “The extent to which the price of an asset reflects all information available about the Comments: actual value of the underlying assets.” Thus, as the quality and amount of information increases, the market becomes more efficient, reducing opportunities for arbitrage and above-market returns. In addition to this, a more practical definition refers to: “The existence of market arrangements that are fit for purpose, providing actors throughout the value chain with incentives to operate their systems in an economic manner, with an appropriate balance of risk and reward that is in the interests of customers, who ultimately pay for the costs of an energy system operation.” Intermediate Results Indicators by Components C1- TA to increase efficiency, long term infrastructure adequacy and climate resilience IN00972183 ►Number of operational procedures updated (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 3.00 Date 01-Jan-2020 27-Aug-2020 27-Aug-2020 31-Dec-2025 This indicator will measure the number of operational procedures implemented, based on studies financed by the project and informed by climate-change considerations. This will be measured relative to a baseline Comments: of zero, based on administrative information collected by the PIU and regularly reported in the Implementation Progress Report. IN00972186 ►Climate-informed methodology adopted in the energy expansion plans (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 01-Jan-2020 27-Aug-2020 27-Aug-2020 31-Dec-2025 This indicator will asses if the energy expansion plans implemented with support from the project have Comments: been informed by climate-change considerations. This will be assesed based on administrative information collected by the PIU and regularly reported in the Implementation Progress Report. 3/26/2021 Page 3 of 7 The World Bank Implementation Status & Results Report Energy and Mineral Sectors Strengthening Project II (P170850) IN00972189 ►Climate resilience informed electricity dispatching methodology utilized (including adjustments on hydrological patterns) (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 31-Jan-2020 27-Aug-2020 27-Aug-2020 31-Dec-2025 This indicator will asses if the electricity dispatch methodology implemented with support from the project Comments: has been informed by resilience to climate-change considerations. This will be based on administrative information collected by the PIU and regularly reported in the Implementation Progress Report. IN00972192 ►Electricity sector policy or market regulation developed (Number) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 1.00 Date 01-Jan-2020 27-Aug-2020 27-Aug-2020 31-Dec-2025 This indicator will measure the project’s success in supporting the development and inclusion of updated policy or regulation material for the electricity sector, under component 1. The indicator will inform the Comments: fulfilment of the PDO indicator related to the development of policy and market regulatory changes, and will be based on administrative information collected by the PIU. IN00972193 ►Gas sector policy or market regulation developed (Number). (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 1.00 Date 01-Jan-2020 27-Aug-2020 27-Aug-2020 31-Dec-2025 This indicator will measure the project’s success in supporting the development and inclusion of updated policy or regulation material for the gas sector, under component 1. The indicator will inform the fulfilment Comments: of the PDO indicator related to the development of policy and market regulatory changes, and will be based on administrative information collected by the PIU. IN00972194 ►New methodology for electricity price formation formulated (YES/NO). (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 01-Jan-2020 27-Aug-2020 27-Aug-2020 31-Dec-2025 This indicator will measure the project’s success in supporting the implementation of an updated Comments: methodology for electricity price formation, under component 1. The indicator will be based on administrative information collected by the PIU. C2- Institutional strengthening of energy & mining institutions to implement strategies and policies IN00972182 ►Monitoring of mining activities by satellite images (YES/NO) (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target 3/26/2021 Page 4 of 7 The World Bank Implementation Status & Results Report Energy and Mineral Sectors Strengthening Project II (P170850) Value No No No Yes Date 01-Jan-2020 27-Aug-2020 27-Aug-2020 31-Dec-2025 This indicator will measure the project’s success in supporting the ANM’s the development of a satellite- Comments: based monitoring system aimed at the continuous monitoring of mining activities, under component 2. The indicator will be based on administrative information collected by the PIU. IN00972185 ►Number of new tools or methodologies introduced or upgraded (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 10.00 Date 01-Jan-2020 27-Aug-2020 27-Aug-2020 31-Dec-2025 This indicator will measure the number of activities (Improved methodologies, tools implemented and trainings implemented) completed. These activities will strengthen planning, management and control Comments: capacity for the power, gas and mining sectors, under component 2. This will be measured relative to a baseline of zero, based on administrative information collected by the PIU and regularly reported in the Implementation Progress Report. IN00972188 ►Sectoral databases created or disclosed for planning or monitoring (Number). (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 1.00 Date 01-Jan-2020 27-Aug-2020 27-Aug-2020 31-Dec-2025 This indicator will measure successful creation or disclosure of sectoral administrative or technical databases related to the planning and monitoring of the sectors involved. This will strengthen the Comments: transparency of the power, gas and mining sectors, and empower stakeholders, under component 2. This will be measured relative to a baseline of zero, based on administrative information collected by the PIU and regularly reported in the Implementation Progress Report. IN00972191 ►National government staff trained (including independent/implementing agencies) (Number). (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 200.00 Date 01-Jan-2020 27-Aug-2020 27-Aug-2020 31-Dec-2025 This indicator will measure the number of national government staff (including national agencies) trained through the project. These activities will strengthen the planning, management and control capacity for Comments: public servants in the sectors, under component 2. This will be measured relative to a baseline of zero, based on administrative information collected by the PIU in each of the trainings and regularly reported in the Implementation Progress Report. C3– Implementation support, monitoring and evaluation, knowledge sharing and dissemination. IN00972184 ►Number of training, mentoring and gender awareness initiatives geared towards enhancing female participation in management positions in key energy and mining institutions. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 8.00 3/26/2021 Page 5 of 7 The World Bank Implementation Status & Results Report Energy and Mineral Sectors Strengthening Project II (P170850) Date 01-Jan-2020 27-Aug-2020 27-Aug-2020 31-Dec-2025 The indicator will measure the amount of workshops, meetings and other fora to promote gender awareness at key institutions with responsibility for the energy, mining and gas sectors, organized with support from the project. These activities are expected to promote good practices, share lessons learned Comments: and encourage mentoring towards higher female participation in the sector, specially in management positions. This will be measured relative to a baseline of zero, based on administrative information collected by the PIU in each of the trainings, and regularly reported in the Implementation Progress Report. IN00972187 ►Share of female employees stating in the survey that training, mentoring and gender awareness initiatives had a positive impact on their career planning (Percentage) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 50.00 Date 01-Jan-2020 27-Aug-2020 27-Aug-2020 31-Dec-2025 The indicator will measure (through surveys conducted yearly) the impact of the gender-focused workshops supported by the project. The surveys would be disaggregated per assessment of impact, i.e. "positive", "neutral" and "negative". This would allow to capture the impact of its gender support measures. Comments: This will be measured relative to a baseline of zero percent, based on yearly surveys of female employees participating in gender-awareness initiatives (trainings, mentoring, and others), sent by the PIU, and regularly reported in the Implementation Progress Report. IN00972190 ►Results of citizen feedback on project-supported products published on Ministries websites (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 5.00 Date 01-Jan-2020 27-Aug-2020 27-Aug-2020 31-Dec-2025 The indicator will measure the number of products supported by the project for which citizen-feedback results have been published on Ministries websites. The link to these results will be easily available to the general public, and a public notice on their availability will be temporarily posted on the relevant ministry’s Comments: “news” section. Transparency on citizen feedback is expected to promote good practices, use of lessons learned and encourage higher awareness in the sectors. This will be measured relative to a baseline of zero, updated annually based on administrative information collected by the PIU, and regularly reported in the Implementation Progress Report. Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed Not P170850 IBRD-90740 USD 38.00 38.00 0.00 0.00 38.00 0% Effective Key Dates (by loan) 3/26/2021 Page 6 of 7 The World Bank Implementation Status & Results Report Energy and Mineral Sectors Strengthening Project II (P170850) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date Not P170850 IBRD-90740 22-May-2020 -- -- 31-Dec-2025 31-Dec-2025 Effective Cumulative Disbursements PBC Disbursement Achievement Disbursed amount in Disbursement % PBC ID PBC Type Description Coc PBC Amount Status Coc for PBC Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 3/26/2021 Page 7 of 7