The World Bank Togo: Mining Governance and Development Project (P149277) REPORT NO.: RES36561 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF TOGO: MINING GOVERNANCE AND DEVELOPMENT PROJECT APPROVED ON NOVEMBER 19, 2015 TO THE REPUBLIC OF TOGO ENERGY AND EXTRACTIVES GLOBAL PRACTICE AFRICA REGION Regional Vice President: Hafez M. H. Ghanem Country Director: Coralie Gevers Global and Regional Director: Riccardo Puliti Practice Manager: Christopher Gilbert Sheldon Task Team Leader: Morten Larsen The World Bank Togo: Mining Governance and Development Project (P149277) ABBREVIATIONS AND ACRONYMS ANGE National Environmental Regulation Agency ASM Artisanal and Small-scale Mining DGMG Direction Générale Des Mines et de la Géologie (Department of Mines and Geology) EI Extractive Industries EITI Extractive Industries Transparency Initiative EITI MSG Multi-Stakeholder Group of EITI GIS Geographical Information System GMIS Geological and Mineral Information System IDA International Development Association IT Information Technology MGDP Mining Governance and Development Project MME Ministry of Mines and Energy MTR Mid-term Review NDP National Development Plan OTR National Revenue Office (Office Togolais des Recettes) PDO Project Development Objective PIU Project Implementation Unit SESA Strategic Environmental and Social Assessment SNPT National Phosphate Company of Togo (Société Nouvelle des Phosphates du Togo) SOE State-Owned Enterprise TA Technical Assistance 2|Page The World Bank Togo: Mining Governance and Development Project (P149277) BASIC DATA Product Information Project ID Financing Instrument P149277 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 19-Nov-2015 31-Dec-2020 Organizations Borrower Responsible Agency Ministry of Economy and Finance Ministry of Mines and Energy,Republic of Togo Project Development Objective (PDO) Original PDO The Project Development Objective is to streamline the institutional arrangements of key organizations in the extractive industries to strengthen their efficiency and accountability for effective management of the sector. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-57350 19-Nov-2015 29-Jan-2016 03-Mar-2016 31-Dec-2020 15.00 7.25 7.75 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No 3|Page The World Bank Togo: Mining Governance and Development Project (P149277) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. Project Status 1. The Mining Governance and Development Project (MGDP) was approved in November 2015 and became effective in March 2016. The project is structured around two key components, A. “Mining Governance, Transparency, Oversight and Efficiency” and B. “Mining Related Environmental, Social and Economic Development”. The project activities are designed to support the structural change of the mining sector which has seen the virtual monopoly of the national phosphate company of Togo (Société Nouvelle des Phosphates du Togo, SNPT), be replaced by a more liberalized and competitive environment in which more than 60 companies currently hold active licenses. As part of this transformation, the MGDP supports the Ministry of Mines and Energy (MME) in building regulatory and planning capacity to instill monitoring and management of sector activities. These activities include license management, environmental and social impact management, tax administration and modernization of academic as well as technical training programs. Moreover, a third component is supporting “Project Coordination and Management”. 2. All key project performance categories are rated Moderately Satisfactory, this marks an upward revision after a successful mid-term review (MTR) in January 2019. The MGDP suffered from initial delays in project start-up due to a variety of human resource issues such as inadequate staffing in the Project Implementation Unit (PIU) and a high attrition rate in the MME. As a result, key activities were initiated 12 to 18 months behind schedule. Most importantly, a planned Strategic Environmental and Social Assessment (SESA) was delayed by nine months beyond its due date, leading to non-compliance with a dated legal covenant. In response to these implementation delays, project performance was downgraded to Moderately Unsatisfactory in June 2018. Between July and December 2018, the implementing agencies undertook a series of corrective measures, including additional recruitments, SESA completion and others. The World Bank team evaluated the corrective measures as part of the MTR in January 2019 and concluded that the MME and the PIU had successfully transformed project performance to Moderately Satisfactory with a potential for further upgrade if work plans are implemented and current levels of disbursement as well as government ownership are sustained. 3. As of September 1, 2019, after just over three years of implementation, project disbursement amounts to 47 percent. It is a testament to the Client’s renewed commitment to the project that the disbursement rate for FY19 alone was 26 percent. With a number of consequential activities on-going, there is reason to expect that the current pace of execution can be sustained. In other words, the rate of disbursement and activity implementation over the past 12 months exceeds projections, albeit from a lower starting point than envisaged because of the delays incurred in the first 18 months of the project. In light of the government commitment and acceleration in implementation, it is recommended that project closing date be extended by 12 months to December 31, 2021 to allow successful completion of all project activities. It is also recommended to realign and reallocate funds between some of the project sub-components in order to realign activities to sector priorities and lessons learnt from project implementation to date. 4. Key results so far include: (i) completion of a SESA in December 2018; (ii) drafting of a mining sector policy and ministerial reorganization, including new recruitments; (iii) development of a digital mining cadaster and an on-line geological information system; (iv) systematizing inspections of more than 40 mine sites since early 2018; (v) accelerating formalization of artisanal and small-scale mining (ASM) operators; and (vi) launching of two new mining- related undergraduate degrees, including renovation of learning facilities at the University of Lomé. In sum, both of the two project components (A. Mining Governance, Transparency, Oversight and Efficiency and B. Environmental, Social and Economic Development from Mining) are making substantial progress, although a few non-performing sub- components are proposed to be revised, as described below. 6|Page The World Bank Togo: Mining Governance and Development Project (P149277) 5. Project result indicators demonstrate good progress towards the Project Development Objective (PDO). Of the 12 results indicators, seven are in line with or exceeding interim targets at end of 2018, three others are in progress but have not yet reached their interim target and two have not advanced from project start. Indicators that meet or exceed targets are related to (i) mine site inspections; (ii) accountability and consultation mechanisms; and (iii) the number of project beneficiaries being actively involved in project activities. Moreover, institutional strengthening, including electronic information systems and databases, as well as formalization of illegal ASM operators are making strong progress towards projected targets. The following table provides further details on all results indicators (indicators on or above target are in bold). Table 1: Status of Results Framework indicators Indicators Value September Target end 2018 Final Target 2020 2019 1. Mine operations subject to production 18 in 2019 (26 in 10 15 monitoring controls per year in accordance with 2018) established standards 2. Modernized mining cadaster, Geographical No Yes Yes Information System (GIS), and National Geological Database system developed, functional and accessible on-site and on-line for public level info 3. Number of direct project beneficiaries, including 5715 1000 2200 percentage of women (Women: 52%) (Women: 30%) (Women: 35%) 4. Percentage of extractive companies which 40% 40% 70% comply with the environmental law (submission of ESIA, RAP and ESMP) 5. Preparation and public review of project National and Accountability Forum Accountability Forum monitoring reporting on an annual basis Regional established and established and Accountability functional under the functional under the Forums organized Multi-Stakeholder EITI MSG or an Group of Extractive appropriate multi- Industries stakeholder Transparency arrangement Initiative (EITI MSG) or an appropriate multi- stakeholder arrangement 6. Number of nationals trained in EI skills, including 430 300 500 percentage of women (Women: 24%) (Women: 30%) (Women: 35%) 7. Improved perception of environmental impacts of 40% 50% 75% mining in impacted communities (% of respondents reporting an improvement) 8. Consistent implementation of recommendation Mining Sector Policy Implementation of Implementation of for modernization derived from the institutional drafted and recommendations for recommendations for assessment implementation reforms based on reforms based on strategy in progress work plan on track work plan on track 9. Number of transaction advisory services provided 0 2 2 10. Tool-kit for public access to information about Yes No Yes mining operations made publicly available 7|Page The World Bank Togo: Mining Governance and Development Project (P149277) Indicators Value September Target end 2018 Final Target 2020 2019 11. Number of mine safety and environmental 0 3 10 inspections conducted on the basis of new standards 12. Number of artisanal miners who are legally 74 75 150 registered and formalized B. Rationale for Restructuring 6. The project MTR concluded that three changes to the project design would be necessary in order to successfully complete the project: a. Revision of the PDO and the Results Framework in order to add a more precise and simplified definition of the PDO and the linkages between outputs and intended outcomes; b. Extension of credit closing date in the interest of consolidating project achievements and fully operationalizing the systems and procedures which are currently under design and installation; and c. Reallocation of funds between project sub-components in recognition of non-performing activities and government’s renewed emphasis on promotion of the carbonated phosphate development. PDO and Results Framework revision 7. The original PDO causes unintended confusion between the final objective of the project and the intermediate outcomes which will contribute to PDO achievement. For this reason, the following reformulation is proposed: “The PDO is to strengthen efficiency and accountability of key organizations1 responsible for management of the mining sector”. In order to clarify the links of causality and simplify the tracking of project outcomes, it is recommended to narrow the PDO focus to an aspiration of efficient and accountable mineral resource development in Togo. The principles of “efficiency” and “accountability” are chosen with reference to the Framework for Extractive Industries Governance Assessment (FEIGA, 2013) which defines “governance” as: (i) accountability; (ii) capability; and (iii) inclusiveness. For the purpose of the MGDP, accountability and inclusiveness are treated under one outcome definition, while capability translates into an outcome of sector efficiency. As such, it is proposed that two project outcomes of “Accountability” and “Efficiency” are included in the project Results Framework. In reference to the project title, i.e. Mineral Governance and Development Project, it is argued that mining sector governance can lead to broad-based development in Togo if measures of enhanced efficiency and accountability are supported. 8. “Efficiency” of Togolese mineral sector agencies covers both skills development and technical competencies of individual staff members in relevant agencies as well as the institutional level of systems and procedures for efficient management and decision-making about natural resource development. Efficiency concerns four aspects of sector management: (i) human and financial resources must be mobilized and deployed not only within sector agencies but also across ministerial boundaries, such as mining, environment, fiscal affairs and others; (ii) rules and regulations must be sufficiently clear to assign responsibilities and mandates for decision-making; (iii) procedures must also be in place to enforce prevailing regulation; and (iv) efficient sector management is characterized by the ability to make balanced and informed trade-offs in the utilization of scarce natural resources, including land, water and other resources. Activities which are implemented under Component A of the project are supporting aspects of efficiency as explained above. Skills development is supported through the “Organizational development” sub-component. Rules and regulations are drafted with respect to mine site inspection and operation of small-scale mines and quarries. Likewise, procedures are developed or modernized to enhance license management, inspection and public disclosure 1The organizations include: (i) the MME; (ii) Office Togolaise des Recettes; (iii) University of Lomé; (iv) Agence Nationale de la Gestion Environnementale. 8|Page The World Bank Togo: Mining Governance and Development Project (P149277) of sector statistics. Efficient and sustainable management of natural resources is strengthened by means of the environmental and social technical assistance (TA) provided. 9. “Accountability” refers to transparency in all aspects of mineral development including (i) open access to geological data; (ii) clear rules for the award of mineral and investment licenses; and eventually (iii) commodity sales, exports and taxation. Moreover, accountability also refers to (iv) the level of openness in public administration and the decision-making related to development of sub-soil resources in Togo. The project supports activities that will facilitate on-line access to geological maps and sector information. Accountability of decision-making is also supported through the development of reporting tools for environmental and technical compliance. Inclusiveness, as a principle of engagement under the project, refers to stakeholders and civil society being informed and empowered to participate in oversight of and debate about the extractive industries (EI). This may include both physical and virtual forums where data and opinions can be shared, and grievances can be lodged. The active participation of the local communities directly affected by mining operations is an important part of the accountability angle. To this effect, “Accountability Forums” are organized and MME is supported to modernize digital and in-person platforms for stakeholder engagement. 10. The revised Results Framework is designed to reflect the above definitions. Outcome and results indicators have been realigned to better reflect their contribution to achieving the outcomes of accountability and efficiency. In the case of result indicators, a clearer correlation has been created between project sub-components, outputs and results indicators. This correlation is intended to facilitate tracking of project performance and ensure that project activities are well-aligned with targets and the final outcomes and PDO. The refinements of the PDO and the results framework does not alter the scope of the project but restates in a clearer manner the expected results of the project and how these results are going to be measures. A detailed account of changes to the Results Framework is found in Annex 1. Closing date extension 11. Extension of the project closing date by one year, from December 31, 2020, to December 31, 2021, is also recommended. The proposed extension date will allow the project activities to be aligned with key milestones, including the graduation of the first batch of students from the modernized geology and geo-chemistry programs at the University of Lomé which will take place at the end of 2021. Full functionality of the mineral information systems (i.e. mining cadaster and mineral statistics) is also projected for the middle 2021. Management and reporting systems of environmental and social compliance for large- and small-scale operators will also greatly benefit from sustained technical support, although final installation and hand-over certificates are expected by the end of 2020. Lessons learnt from similar TA projects show that continued support and trouble-shooting in the first years of full operation is critical for capacity building and sustainably of the new systems and procedures. Additionally, Government has requested World Bank support to project preparation of the carbonated phosphate deposits which are seen as a pillar of the National Development Plan (NDP) to be realized before 2022. These preparatory activities (as described below) will require a timeframe of at least two years. 12. Moreover, at the present rate of implementation, with a disbursement of about US$3.5 million per year, and after a detailed analysis of planned activities for 2019 and 2020, it is estimated that the project will be able to disburse up to a maximum of US$12 million by end of 2020 out of the US$15 million total funds. With the extension of the closing date of one year and the reallocation of funds, it is estimated that the MGDP could disburse its funds completely by 2021. Funds reallocation 9|Page The World Bank Togo: Mining Governance and Development Project (P149277) 13. A reallocation of funds is deemed necessary to reflect the new demands facing the sector and to maximize the momentum of project implementation and ongoing reforms. These demands are also aligned with the emphasis on efficiency and accountability which is expressed in the revised PDO. Funds reallocation is an opportunity to capitalize on successful sub-components showing significant demand, while shifting focus away from sub-components that are no longer a government priority. A detailed table of activity progress by sub-component and proposed reallocations is presented in Table 3. 14. Under “Component A. Mining Governance, Transparency, Oversight and Efficiency” strong momentum is registered in relation to capacity building activities emanating from the mining policy. This includes governance issues related to license management as well as enhanced accessibility to geological data, maps and survey reports. New information technology (IT) systems are under installation and continued training of the growing pool of ministry staff will be required. The up-tick in mine inspections and the public interest which has surrounded awareness campaigns and consultations will also require continued support so as to enhance accountability within the sector. Management of ASM has also achieved substantial progress with the formalization of 74 ASM operators. Notwithstanding, preliminary survey data reveals that the total number of informal/illegal ASM operators is counted in the thousands. Accordingly, the sustained monitoring, formalization and training will be required. Most prominently, government commitment to development of the carbonated phosphate deposits has been reinvigorated with the NDP. As a result, the World Bank has been requested to support a master plan of value addition and transformation of the identified resources to fertilizer and industrial phosphate products. Technical and financial advice will also be provided to valuation of existing mineral and operational assets at SNPT. 15. Under “Component B. Mining Related Environmental, Social and Economic Development” the recently completed SESA and the associated recommendations have identified a clear action plan of measures to improve environmental social performance of mining operations. Additionally, the environmental audit of the SNPT has identified urgent needs for mitigation and management of marine and terrestrial pollution as well as strengthening of modalities for community consultation and local development. These activities will require substantial additional funding. Support to academic development and technical training courses is on track relative to the original implementation schedule with the inauguration of new university campus facilities in early 2019 and the launch of modernized curricula for bachelor program in geology and geo-chemistry. Sustained support, including coordination with the private sector and placement of interns and graduates, will be essential to ensure that skills development is converted to job creation. II. DESCRIPTION OF PROPOSED CHANGES A. Results framework revision 16. The current PDO reads as follows: “The PDO is to streamline the institutional arrangements of key organizations in the extractive industries to strengthen their efficiency and accountability for effective management of the sector”. The new suggested PDO would read as follows: “The PDO is to strengthen efficiency and accountability of key organizations responsible for management of the mining sector”. 17. In terms of the formulation and targets of results indicators, it is recommended to align the indicators to the outcomes and components which are listed below. A number of target values have been increased in recognition of the extended project closing date. Three indicators have been dropped while six others have been included to better reflect the theory of change from output to outcome. A full matrix of changes to the original Results Framework is presented in Annex 1. 10 | P a g e The World Bank Togo: Mining Governance and Development Project (P149277) Table 2: Revised Results Framework Revised PDO: “The PDO is to strengthen efficiency and accountability of key organizations responsible for management of the mining sector” Indicator Target, December 2021 Explanation Outcome 1: “Strengthen accountability of government organizations responsible for management of mineral resources” 1. Number of direct project 6,300 beneficiaries Aggregate number of beneficiaries defined as beneficiaries (at least 35% are women) (i) participants in training and workshop (of which at least 35% are events; (ii) students at Faculty of Science; (iii) women) members of formalized ASM cooperatives; (iv) participants of forums, networks or other entities which are created or supported by the project. 2. Systematic publication of Yes Sector statistics will include, at a minimum, mining sector statistics on production and export statistics as well as government website license information for the year prior to reporting. 3. Accountability platforms are Yes The indicator measures the functioning of the operational at national and "Accountability Forum" or any other local level consultation mechanism replacing the forum. The forum gathers stakeholders nationally and regionally to review project progress and sector management. Outcome 2: “Strengthen efficiency of key government organizations responsible for management of mining resources" 4. Modernized mineral cadaster Yes This indicator verifies if (i) the new mining management system is cadaster system is consistent with the updated accessible on-line legislation and (ii) title information is accessible to the public, thus allowing informed decision-making. 5. Percentage of mining 60 percent The indicator will be based on regular reports companies which comply with from the central information system for environmental certification environmental compliance which is hosted in requirements the National Environmental Regulation Agency (ANGE) and supported by the MME Department responsible for mine inspections (DDCM). 6. Mineral sector policy is Yes This indicator verifies the existence of a endorsed and systematically mineral sector policy, endorsed by the monitored ministry and containing vision and strategic goals as well as an action plan for implementation. Component A: Capacity building in mining governance, transparency, oversight and efficiency 7. Number of mine sites which 35 mine sites This indicator will measure the regular are subjected to production reporting of mine production, including that of inspections per year SNTP. 11 | P a g e The World Bank Togo: Mining Governance and Development Project (P149277) 8. Number of nationals which 500 beneficiaries All stakeholders participating in training are trained in extractive (at least 20% are women) programs or workshops. Female participation industry skills is recorded in (%). (of which at least 20% are women) 9. Geological and Mineral Yes The GMIS will contain geo-scientific data-sets, Information System (GMIS) is including maps, geo-science reports and digitized and accessible on- analyses, etc. line 10. Number of artisanal and 100 formalized ASM operators Number of artisanal miners which are legally small-scale mining operators registered and paying an annual registration which are legally registered fee to the Public Treasury. PIU/MME to and formalized establish a computerized database to monitor production by artisanal miners. 11. Land area covered by 2,500 This indicator describes the area which has airborne geo-physical surveys been surveyed by airborne geo-physics and (square km) subsequently presented on geological maps. 12. An investment plan is Yes A conceptual design of production facilities for prepared for development of fertilizers has been developed together with carbonated phosphate an action plan for the tender process. deposits Component B: Capacity building in environmental, social and economic management of mining operations 13. A perception survey of Yes This indicator will track the regularity of a environmental impacts in perception survey among mining sector impacted mining communities stakeholders and representatives from is conducted on annual basis communities affected by mining operations. The first survey was conducted in late 2017. 14. Number of mine safety and 10 This indicator tracks the number of on-the- environmental inspections ground mine inspections which are conducted which are conducted based and systematically reported in a modernized on systematic reporting and database inspection procedures A. Sub-component changes and funds reallocation 18. The Financing Agreement contains a single disbursement category, and this structure is proposed to be maintained. Instead, reallocations are recommended across project components and sub-components. In line with sector demands and the performance of sub-components, the task team and the implementing agencies have concluded that a revision and simplification of project sub-components will lead to more efficient project implementation. This, in turn, will strengthen project outcomes and increase the likelihood of achieving the PDO. Specifically, strengthening of corporate governance in State-Owned Enterprises (SOE)s (Sub-component A.5) will be reallocated since SOE support is limited to environmental and social management which can be integrated with other environmental and social management activities under Sub-component B.2. Moreover, Sub-component B.3 “Infrastructure and economic linkages from mining” will be terminated since no new investments are projected within the timeframe of the project. Consequently, the possibility of economic linkages is limited. The team recommends that funds which are released as a function of the terminations be reallocated to prioritized sub-components. 12 | P a g e The World Bank Togo: Mining Governance and Development Project (P149277) 19. To that end, a budget analysis was carried out to evaluate present disbursements and commitments for each sub- component and realistic forecasts of funding needs to achieve project indicators. Given Government’s renewed emphasis on the phosphate deposits as a pillar of the NDP, the project will support master planning of the transformation process from mineral deposits to fertilizer products. These activities will require a comprehensive evaluation of the mineral resources as well as the conceptual design of the beneficiation. An evaluation of the potential role and value of SNPT will also be required. All parts of this evaluation will implemented under Component A.2 “Transaction Advisory Services for Assessment of Mineral Development Potential”. In total, Component A, related to governance, transparency, monitoring and efficiency of the mining sector would be increased by some US$600,000 from its initial US$8.45 million budget to US$9.10 million, while Component B would decrease from US$4.30 million to US$3.90 million. In order to ensure ongoing management during the 12 months of additional project implementation US$150,000 would be added to the initial US$2.25 million budget of Component C for project coordination and management. Total International Development Association (IDA) funds would remain at US$15 million (plus US$200,000 from counterpart contributions). 20. The project sub-components are listed below, including initial budget allocation. Disbursements to date together with commitments where signed contracts are confirmed are also listed to reflect the pace of execution. Finally, recommendations and comments explain the proposed reallocations. Overall, strongest progress is reported under Organizational Development (Sub-component A.4), Higher Education (B.1) and Environmental and Social Management (B.2). In light of the current roll-out of the Mining Sector Policy, institutional and organizational capacity building will be essential for sector development. Environmental and social management, including enhanced inspections, represents a second strand of sector governance reform that contributes to accountable and efficient sector development. Support to higher education will also continue, but after recent program expansions, the subsequent steps will require consolidation and quality control, which are less capital intensive. For these reasons, the largest reallocations will be directed to Organizational Development and Environmental and Social Management. Table 3: Disbursement and proposed reallocations Sub component Initial Disbursements Proposed Recommendation Comments allocation and allocation (US$ ‘000) commitments (US$ ‘000) on 09/16/19 (US$ ‘000) A. Mining Governance, Transparency, Oversight and Efficiency A1 Mining Cadaster 3,300 1,572 3,700 Moderate New IT systems demand new and National additional funding skills from staff at Mines and Geological to sustain Geology Department (DGMG). Database operation and management of IT systems A2 Transaction 1,100 117 2,100 Substantial Based on discussions with Advisory Services additional Presidency and line ministries. for Assessment of allocation for Mineral phosphates Development development Proposals A3 Mineral 1,100 789 1,000 Moderate Inter-ministerial coordination Production reduction (MME, ANGE and National Monitoring and Revenue Office (Office Togolais Oversight 13 | P a g e The World Bank Togo: Mining Governance and Development Project (P149277) des Recettes, OTR) requires additional staffing. The surpassing of interim result indicators confirms the relevance of this sub- component. A4 Organizational 1,250 1,264 1,400 Substantial Drafting of a sector policy and development of additional funding strategy identified training the MME to strengthen the needs in the areas of capacity of staff in monitoring and evaluation of line with the projects and investments. In organizational addition, the recruitment of reform (creation of young professionals to the a Planning Division ministry raises training needs. and others) A5 Strengthening of 750 62 100 Termination of the In the absence of a firm Corporate sub-component strategy to modernize the Governance and reallocation of SNPT, it is considered more Structures of funds towards relevant to target the SOEs in the environmental and organizational development of Mining Industry social management the MME, including training of SNPT agents. A6 Management of 950 609 800 Moderate Dissemination campaigns Artisanal and reduction confirmed a great interest Small-scale expressed by the ASM and the Mining rural population. Subtotal 8,450 4,414 9,100 B. Mining related Environmental, Social and Economic Development B1 Higher Education 2,000 1,438 1,600 Moderate Sector Support reduction and Public Access to Information B2 Environmental 1,600 1,265 1,900 Additional funding The identification of corrective and Social for the measures for the management Management of implementation of of the environmental impacts Mining the of SNPT created an additional Operations and recommendations need outside the SESA action Support to of the SESA plan. Community Platforms B3 Infrastructure and 700 0 0 Termination of the With limited evolution of large- Economic subcomponent scale investments There has Linkages from not been significant demand Mining for outsourcing services Subtotal 4,300 2,703 3,500 C. Project coordination and management Operational costs 2,250 1,568 2,400 Moderate The management of the additional funding project for the additional to cover an twelve months requires additional budget 14 | P a g e The World Bank Togo: Mining Governance and Development Project (P149277) additional 12 months Project Total 15,000 8,685 15,000 (Note: Counterpart contribution of US$200,000 – for operational costs – brings total project to US$15.2 million) B. Closing date extension 21. It is recommended that the MGDP closing date be extended from December 31, 2020 to December 31, 2021. This one-year extension would allow consolidation of project achievements and full operationalization of new systems and procedures which have been introduced through the project. Moreover, it will allow full disbursement of the total US$15 million credit. Even at the current pace of implementation, it is estimated that the project would only be able to disburse about US$12 million by the original closing date of end of 2020. I. SUMMARY OF CHANGES Changed Not Changed Implementing Agency ✔ Project's Development Objectives ✔ Results Framework ✔ Components and Cost ✔ Loan Closing Date(s) ✔ Disbursements Arrangements ✔ Disbursement Estimates ✔ Implementation Schedule ✔ Other Change(s) ✔ DDO Status ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ 15 | P a g e The World Bank Togo: Mining Governance and Development Project (P149277) Procurement ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_IA_TABLE IMPLEMENTING AGENCY Implementing Agency Name Type Action Ministry of Mines and Energy Implementing No Change Agency Republic of Togo Implementing New Agency OPS_DETAILEDCHANGES_PDO_TABLE PROJECT DEVELOPMENT OBJECTIVE Current PDO The Project Development Objective is to streamline the institutional arrangements of key organizations in the extractive industries to strengthen their efficiency and accountability for effective management of the sector. Proposed New PDO The Project Development Objective is to strengthen efficiency and accountability of key organizations responsible for management of the mining sector OPS_DETAILEDCHANGES_COMPONENTS_TABLE COMPONENTS Current Current Proposed Proposed Cost Action Component Name Component Name Cost (US$M) (US$M) A. Improving Mining A. Mining Governance, Governance, Transparency, 8.45 Revised Transparency, Oversight, and 9.10 Oversight, and Efficiency Efficiency B. Environmental, Social and B. Mining Related Economic Development from 4.30 Revised Environmental, Social and 3.50 Mining Operations Economic Development C. Project Coordination and C. Project Coordination and 2.45 Revised 2.60 Management Management TOTAL 15.20 15.20 16 | P a g e The World Bank Togo: Mining Governance and Development Project (P149277) OPS_DETAILEDCHANGES_LOANCLOSING_TABLE LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications IDA-57350 Effective 31-Dec-2020 31-Dec-2021 30-Apr-2022 OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Change in Disbursement Estimates Yes Year Current Proposed 2016 2,000,000.00 200,000.00 2017 3,000,000.00 1,800,000.00 2018 3,000,000.00 1,750,000.00 2019 3,000,000.00 3,250,000.00 2020 2,000,000.00 3,000,000.00 2021 2,000,000.00 5,200,000.00 . 17 | P a g e The World Bank Togo: Mining Governance and Development Project (P149277) . Results framework COUNTRY: Togo Togo: Mining Governance and Development Project Project Development Objectives(s) The Project Development Objective is to streamline the institutional arrangements of key organizations in the extractive industries to strengthen their efficiency and accountability for effective management of the sector. Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 Streamlining of the institutional arrangements in the extractive industries (Action: This Objective has been Marked for Deletion) Mine Operations subjected to production monitoring controls per year in line 0.00 2.00 5.00 10.00 15.00 15.00 15.00 with established standards (Number) Action: This indicator has been Marked for Deletion Modernized mining cadaster, GIS, and National Geological database system developed, functional and No no no yes yes yes Yes accessible on-site and online for public level info (Text) 18 | P a g e The World Bank Togo: Mining Governance and Development Project (P149277) RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 Action: This indicator has been Marked for Deletion Direct project beneficiaires 0.00 75.00 700.00 1,000.00 1,500.00 2,000.00 2,200.00 (Number) Action: This indicator has been Marked for Deletion Percent of project beneficiaries which is 0.00 35.00 female (Percentage) Action: This indicator has been Marked for Deletion Percentage of EI companies that comply with the environmental law 0.00 10.00 20.00 40.00 50.00 70.00 70.00 (submission of ESIA, RAP, and ESMP) (Percentage) Action: This indicator has been Marked for Deletion Strengthen accountability of government agencies responsible for management of mineral resources (Action: This Objective is New) Systematic publication of mining sector statistics on No Yes Yes Yes government websites (Yes/No) Action: This indicator is New 19 | P a g e The World Bank Togo: Mining Governance and Development Project (P149277) RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 Accountability platforms are operational at national No Yes Yes Yes and local level (Yes/No) Action: This indicator is New Number of direct project 0.00 5,500.00 6,000.00 6,300.00 beneficieries (Number) Action: This indicator is New Project beneficiaries which 0.00 30.00 30.00 35.00 are women (Percentage) Action: This indicator is New Strengthen efficiency of government agencies responsible for development of mineral resources (Action: This Objective is New) Modernized mineral cadastre management No No Yes Yes system is accessible on-line (Yes/No) Action: This indicator is New Percentage of mining companies which comply with environmental 0.00 50.00 60.00 60.00 certification requirements (Percentage) 20 | P a g e The World Bank Togo: Mining Governance and Development Project (P149277) RESULT_FRAME_TBL_PDO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 Action: This indicator is New Mineral sector policy is Sector policy and endorsed and Organizational audit of implementation plan Yes Yes systematically monitored MME completed adopted by MME (Text) Action: This indicator is New PDO Table SPACE Intermediate Results Indicators by Components RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 A. Capacity building in mining governance, transparency, oversight and efficiency (Action: This Component has been Revised) Number of mine sites which are subjected to production 0.00 25.00 30.00 35.00 monitoring inspections per year (Number) Action: This indicator is New Number of nationals trained in EI skills (benefiting from 0.00 50.00 150.00 300.00 400.00 500.00 500.00 skills training program) (Number) 21 | P a g e The World Bank Togo: Mining Governance and Development Project (P149277) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 Percent of nationals trained in EI Skill who are 0.00 25.00 30.00 30.00 20.00 20.00 20.00 female (Percentage) Geological and Mineral Information System is No Yes Yes Yes digitized and accessible on- line (Yes/No) Action: This indicator is New Number of artisanal miners who are legally registered 0.00 0.00 50.00 75.00 80.00 100.00 100.00 and formalized (Number) Rationale: Action: This indicator has Actual number of (illegal) artisanal miners has been revised downward been Revised Toolkit for public access to information about mining no no no no yes yes yes operations made publicly available (Text) Action: This indicator has been Marked for Deletion Land area covered by airborne geo-physical 0.00 0.00 2,500.00 2,500.00 surveys (Square kilometer(km2)) Action: This indicator is New 22 | P a g e The World Bank Togo: Mining Governance and Development Project (P149277) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 An investment plan is Steering Committee prepared for development has been created to No No Yes of carbonated phosphate oversee development deposits (Text) process Action: This indicator is New B. Capacity building in environmental, social and economic management of mining operations (Action: This Component has been Revised) Number of mine safety and environmental inspections which are conducted based 0.00 0.00 1.00 3.00 5.00 10.00 10.00 on systematic reporting and inspection procedures (Number) A perception survey of environmental impacts in impacted communities is No Yes Yes Yes conducted on annual basis (Yes/No) Number of transaction advisory services provided 0.00 0.00 1.00 2.00 2.00 2.00 2.00 (Number) Action: This indicator has been Marked for Deletion Institutional Implementation of Implementation of Implementation of Implementation of Consistent implementation Organization Audit of Improved MME assessment recommendations for recommendations for recommendations for recommendations for of recommendations for MME completed in institutional conducted and reforms based on reforms based on reforms based on reforms based on modernization derived from 2013 framework applying timebound work plan work plan on track work plan on track. work plan on track. work plan on track. 23 | P a g e The World Bank Togo: Mining Governance and Development Project (P149277) RESULT_FRAME_TBL_IO Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 the institutional assessment to implement best practices in EI (Text) recommendations governance developed Action: This indicator has been Marked for Deletion :Accountability Accountability Accountability Accountability “Accountability Forum” established Forum” established Forum” established Forum” established Forum” established Preparation and public Annual Project and functionalunder and functionalunder and functionalunder and functionalunder and functionalunder review of project None Monitoring Report the EITI MSG or an the EITI MSG or an the EITI MSG or an the EITI MSG or an the EITI MSG or an monitoring and reporting prepared appropriate multi- appropriate multi- appropriate multi- appropriate multi- appropriate multi- on a annual basis (Text) stakeholder stakeholder stakeholder stakeholder stakeholder arrangement arrangement arrangement arrangement arrangement Action: This indicator has been Marked for Deletion IO Table SPACE 24 | P a g e The World Bank Togo: Mining Governance and Development Project (P149277) ANNEX 1 Proposed changes to Results Framework Togo Mining Governance and Development Project – P149277 Original PDO: The Project Development Objective is to streamline the institutional arrangements of key organizations in the IEs to strengthen their efficiency and accountability for effective management of the sector. Revised PDO: The Project Development Objective is to strengthen the efficiency and accountability of key organizations responsible for the management of the mining sector Original indicators Proposed revision Justification Final Target 2020 Proposed target 2021 PDO Indicators 13. Mine operations subject to Number of mining sites which are The indicator has been 15 35 production monitoring controls per subjected to production inspections moved from PDO-level year in accordance with established per year indicator and increased standards (Intermediate indicator - Component from end target of 15 to 35 A) sites. 14. Modernized mining cadaster, GIS, Modernized mineral cadaster Extended target end date Yes Yes and National Geological database management system is accessible on- and separation of the system developed, functional and line Mineral cadaster accessible on-site and on-line for (Outcome 1 indicator: Strengthen management system from public level info accountable development of mineral the Geo-science database resources) since the two systems are developed and will operate independently. The Mineral cadaster system will manage and monitor mineral license holder. 23 | P a g e The World Bank Togo: Mining Governance and Development Project (P149277) Original indicators Proposed revision Justification Final Target 2020 Proposed target 2021 15. Number of direct project [No change] Increase in end target. 2200 6,300 beneficiaries (% of which are (Outcome 1 indicator: Strengthen (Women: 35%) (Women: 35%) women) accountable development of mineral resources) 16. Percentage of extractive companies Percentage of mining companies This is a specification of 70% 60% which comply with the which comply with environmental the previous indicator. The environmental law (submission of certification requirements official Environmental ESIA, RAP and ESMP) (Outcome 2: Strengthen efficient Certificate is issued by development of mineral resources) ANGE and represents a confirmation that a company is in compliance with stipulated regulation and reporting requirements. [New indicator] Systematic publication of mining Indicator added to track N/A Sector sector statistics on government institutional disposition to statistics are website promote transparency. published with (Outcome 1: Strengthen accountable a delay not development of mineral resources) exceeding six months [New indicator] Mineral sector policy is endorsed and This indicator replaces N/A Policy is its implementation plan is previous intermediate endorsed systematically monitored results indicator (Outcome 2: Strengthen efficient concerning organizational development of mineral resources) reforms. Intermediate indicators 17. Preparation and public review of Accountability platforms are The indicator is elevated Accountability Platforms for project monitoring reporting on an operational at national and local level from intermediate to PDO Forum accountability annual basis level in order to reflect the established and are 24 | P a g e The World Bank Togo: Mining Governance and Development Project (P149277) Original indicators Proposed revision Justification Final Target 2020 Proposed target 2021 (Outcome 1: Strengthen accountable change in institutional functional under operational at development of mineral resources) behavior which is achieved the EITI MSG or national and when systematic an appropriate local level accountability modalities multi-stakeholder are introduced. arrangement. 18. Number of nationals trained in EI [No change] Reduction in female 500 500 skills (benefiting from skills training (Intermediate indicator – Component participation is explained (Women: 35%) (Women: 20%) program) A) by the limited number of (X% of which are women) female staff in line ministries (appr. 10%). 19. Improved perception of A perception survey of environmental Monitoring is changed 75% of Yes environmental impacts of mining in impacts in impacted communities is from respondents’ respondents impacted communities (% of conducted on annual basis perception to the actual reporting an respondents reporting an (Intermediate indicator – Component survey implementation improvement improvement) B) since perceptions can be from previous influenced by external year. factors beyond project control. 20. Consistent implementation of Deleted Replaced with Mineral Implementation recommendation for modernization sector policy indicator. of derived from the institutional recommendations assessment (Text) for reforms based on work plan on track. 21. Number of transaction advisory Deleted Support in this area has 2 services provided (Number) been cancelled due to absence of investments and transaction negociations. 25 | P a g e The World Bank Togo: Mining Governance and Development Project (P149277) Original indicators Proposed revision Justification Final Target 2020 Proposed target 2021 22. Tool-kit for public access to Deleted Other accountability Yes information about mining indicators are more operations made publicly available effective in tracking (Text) outcomes. 23. Number of mine safety and Number of mine safety and The revised indicator will 10 10 environmental inspections environmental inspections which are verify that systems are conducted on the basis of new conducted based on systematic adopted for regular standards (Number) reporting and inspection procedures reporting and inspection. (Intermediate indicator - Component B) 24. Number of artisanal miners who are Modest revision based on fact-finding 150 100 legally registered and formalized (Intermediate indicator – Component (Number) A) [New indicator] Geological and Mineral Information The indicator is separated N/A Geological and System is digitized and accessible on- from the previously Mineral line combined indicator which Information (Intermediate indicator – Component tracked mineral cadaster System A) AND geological database operational system. and on-line [New indicator] Land area covered by airborne geo- This indicator will track N/A 2,500 km2 physical surveys actual geo-science (Intermediate indicator – Component activities undertaken. A) [New indicator] An investment plan is prepared for This indicator reflects N/A Yes development of carbonated government’s renewed phosphate deposits interest in investment (Intermediate indicator – Component promotion of the A) phosphate deposits. 26 | P a g e