The World Bank
   MW: Mining Governance and Growth Support Project (P120825)




                                                                          REPORT NO.: RES29743

                                   DOCUMENT OF THE WORLD BANK




                                        RESTRUCTURING PAPER
                                                 ON A
                                 PROPOSED PROJECT RESTRUCTURING

                                                     OF

                       MW: MINING GOVERNANCE AND GROWTH SUPPORT PROJECT
                                   APPROVED ON MARCH 31, 2011
                                                     TO

                                      GOVERNMENT OF MALAWI


ENERGY & EXTRACTIVES

AFRICA




                         Regional Vice President:     Makhtar Diop
                                Country Director:     Bella Bird
                  Senior Global Practice Director:    Riccardo Puliti
                     Practice Manager/Manager:        Sheila Khama
                              Task Team Leader:       Javier Aguilar
           The World Bank
           MW: Mining Governance and Growth Support Project (P120825)



I. BASIC DATA

Product Information

Project ID                                                     Financing Instrument
P120825                                                        Specific Investment Loan

Original EA Category                                           Current EA Category


Approval Date                                                  Current Closing Date
31-Mar-2011                                                    31-Mar-2018




Organizations

Borrower                                                       Responsible Agency
Government of Malawi                                           Ministry Of Natural Resources Energy and Mining



Project Development Objective (PDO)
Original PDO
To improve the efficiency, transparency and sustainability of mining sector management

Summary Status of Financing


                                                                                        Net
Ln/Cr/Tf                 Approval         Signing Effectiveness          Closing Commitment Disbursed Undisbursed

IDA-49010            31-Mar-2011 02-Nov-2011 23-Aug-2012 31-Mar-2018                      25.00    20.87         2.45
TF-12935              13-Aug-2012 22-Aug-2012 23-Aug-2012            15-Oct-2017           4.56     3.58         1.17


Policy Waiver(s)

Does this restructuring trigger the need for any policy waiver(s)?
No


II. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES
           The World Bank
           MW: Mining Governance and Growth Support Project (P120825)




 The MGGSP was approved on March 31, 2011 and is co-financed by an IDA credit of SDR 16, 100,000 (USD 25 million
 equivalent) (Credit No. 4901-MW) and an EU Grant (TF012935) of EUR 2,918,686 (US$5.66 million, equivalent at the
 time of Board approval). The project has been effective since August 23, 2012, with a current IDA disbursement rate
 of 80 percent. Overall project implementation and progress towards achieving the development objective are rated as
 Moderately Satisfactory.

 Work is in progress to establish a modern computer-based cadastral system with efficient and transparent
 management of mineral exploration and mining rights with some of Malawi’s mining licenses already visible online.
 The 1981 Mines and Minerals Act has been reviewed and the Bill and associated regulations have been finalized. The
 process suffered delays but the Bill is expected to be tabled in brief to the Parliament.

 Full use of the third tranche of EUR 1,037,500 (approximately USD 1.1 million), which will be made available during the
 first week of October 2017, is essential to the successful achievement of the project’s PDO. Since the EU Grant is
 closing on October 15, 2017, there will be no time to fully utilize the funds. As the performance of the implementing
 team has been good (Project Management rated as Moderately Satisfactory and Procurement as Satisfactory), there is
 confidence that all funds will be fully utilized if an extension of two months is granted to the EU grant (TF012935).

 Given that the "End Disbursement Date" in the Administrative Agreement with the EU is April 15, 2018, a closing date
 extension of two months from October 15, 2017 to December 15, 2017 will reduce the "grace period" for submitting
 withdrawal applications to two months, as the Bank must still retain two months to process all withdrawal
 applications and fully close the Trust Fund account.

 Key activities are well advanced. The safeguards rating is Satisfactory.




III. DETAILED CHANGES


LOAN CLOSING DATE(S)


                                         Original                 Revised              Proposed      Proposed Deadline
Ln/Cr/Tf        Status                   Closing                Closing(s)               Closing        for Withdrawal
                                                                                                           Applications
                                                    31-Aug-2017, 30-Sep-
IDA-49010       Effective           30-Sep-2016
                                                      2016, 31-Mar-2018
TF-12935        Effective           17-Nov-2015              15-Oct-2017           15-Dec-2017              15-Feb-2018