Public Disclosure Copy The World Bank Implementation Status & Results Report Sustainable Management of Mineral Resources (P096302) Sustainable Management of Mineral Resources (P096302) AFRICA | Tanzania | Energy & Extractives Global Practice | IBRD/IDA | Technical Assistance Loan | FY 2009 | Seq No: 13 | ARCHIVED on 29-Jul-2016 | ISR24209 | Implementing Agencies: Tanzania Extractive Industries Transparency Initiave Key Dates Key Project Dates Bank Approval Date:09-Jun-2009 Effectiveness Date:22-Sep-2009 Planned Mid Term Review Date:15-Oct-2012 Actual Mid-Term Review Date:12-Nov-2012 Original Closing Date:30-Jun-2014 Revised Closing Date:31-Dec-2018 Project Development Objectives Project Development Objective (from Project Appraisal Document) To strengthen the Governments capacity to manage the mineral sector to improve the socioeconomic impacts of large and small-scale mining for Tanzania and Tanzanians and enhance private local and foreign investment. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name A. Improving the Benefits of the Mineral Sector for Tanzania: Artisanal and Small-Scale Mining, Local Economic Development and Skills Development:(Cost $53.40 M) B. Strengthening Governance and Transparency in Mining:(Cost $14.60 M) C. Stimulating Mineral Sector Investment:(Cost $25.00 M) D. Project Coordination and Management:(Cost $6.90 M) Physical and price contingencies:(Cost $2.30 M) PPF refinancing Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Moderately Unsatisfactory  Moderately Satisfactory 7/29/2016 Page 1 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Sustainable Management of Mineral Resources (P096302) Overall Implementation Progress (IP)  Moderately Unsatisfactory  Moderately Satisfactory Overall Risk Rating  Substantial  Substantial Implementation Status and Key Decisions Additional Financing and the Closure of SMMRP Parent Project: an Additional Financing of $45 million for the SMMRP (plus parallel financing of $5 million by the client) was approved by the World Bank Board of Directors on May 7, 2015, and became effective on August 28, 2015. This ISR reports on progress for the period since January, 2016. Turnaround of implementation progress: While the project had not made any significant procurement activity since it became effective in October 2016, a major progress was made during the mission. About 95% of the planned procurement activities for 2015/2016 were either launched or progressing toward RFP or contract stages. By June 30, 2016 disbursement is expected to reach 22% of the Additional Financing amount. A number of procurement issues have been resolved and the second week of September is the target date for the launch of major ASM initiatives under the project. Extractive Industries Transparency Initiative: Launch of the 2013 and 2014 TEITI reports took place on 28 April 2016. The reports showed that Government earnings from the extractive industry increased from TzS 956 billion in 2013 to TzS 1.221 trillion during the fiscal year ended June 30, 2014. As of November 2015, Tanzania has produced six EITI reports since it joined the initiative in February 2009. Taken together, the Government has disclosed revenue receipts of TzS 3.96 trillion (US$ 2,539,123,424) of extractive revenues from July 1, 2008 to June 30, 2014. Arusha Gem Fair: SMMRP contributed US$150,000 to the organization of the fair. This year’s fair outperformed the previous events in many aspects: sales volume (increase from US$3.9 million in 2015 to US$4.5 million this year) including the first international tender auction of Tanzanite on Tanzania soil; government revenue (TzS 1.75 billion in the form of royalty and fees payments, and revenue from auction of confiscated minerals, compared to TzS 301.1 million in 2015); exhibitor participation (33% increase in the total number of exhibitors and 55% increase of buyers’ participation); and geographic diversity of participants. Key decision: retain the second week of September 2016 as a milestone for key project activities with significant developmental impact (Small Grants Program, Village-based mining pilot, Multistakejolder partnership with private mining companies). Use the milestone to promote South-South learning on ASM by inviting representatives from Ghana and Chile to share experience on ASM Development. 7/29/2016 Page 2 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Sustainable Management of Mineral Resources (P096302) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  Substantial  Substantial Macroeconomic  --  Substantial  Substantial Sector Strategies and Policies  --  Moderate  Moderate Technical Design of Project or Program  --  Low  Low Institutional Capacity for Implementation and Sustainability  --  Substantial  Substantial Fiduciary  --  Moderate  Moderate Environment and Social  --  Moderate  Moderate Stakeholders  --  Low  Low Other  --  --  -- Overall  --  Substantial  Substantial Results 7/29/2016 Page 3 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Sustainable Management of Mineral Resources (P096302) Project Development Objective Indicators PHINDPDOTBL  Percentage increase of household income levels in selected ASM communities (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 200.00 200.00 100.00 Date 31-Dec-2010 16-Dec-2015 16-Jun-2016 30-Jun-2015 Comments The income of miners rose from a baseline of US$4/day in 2009 to US$12/day in June 2016 or 200% increase. This compares with the end target of US$8/day or 100% increase. PHINDPDOTBL  Percent of citizens in participating communities who consider that their views have been taken into account in the local economic development strategic planning process (perception survey) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 12.00 60.00 60.00 60.00 Date 31-Dec-2010 16-Dec-2015 16-Jun-2016 30-Jun-2015 PHINDPDOTBL  Time to process mineral rights (exploration licenses). (Months, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 18.00 21.00 2.00 2.00 Date 09-Jun-2009 16-Dec-2015 16-Jun-2016 30-Jun-2015 PHINDPDOTBL  Time taken to transform identified ASM areas into established PML mines. (Months, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 12.00 12.00 6.00 3.00 Date 20-Feb-2015 20-Feb-2015 16-Jun-2016 31-Dec-2018 7/29/2016 Page 4 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Sustainable Management of Mineral Resources (P096302) PHINDPDOTBL  Annual publication of mining sector revenue (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N Y Y Y Date 30-Jun-2009 16-Dec-2015 16-Jun-2016 30-Jun-2015 PHINDPDOTBL  Improvement in Tanzania's ranking as a mining investment destination as evidenced by independent investor survey (Fraser Institute). (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Increase of 2-3 points/palces or 50/122 for policy 48/71 for policy ranking 48/71 for policy ranking & more over Value ranking & 62/122 for & 22/71 for mineral 22/71 for mineral potential baseline in one mineral potential potential or both indicators. Date 30-Jun-2009 16-Dec-2015 16-Jun-2016 30-Jun-2015 PHINDPDOTBL  Percentage increase in mining revenue (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 33.00 35.00 5.00 Date 30-Jun-2009 16-Dec-2015 16-Jun-2016 30-Jun-2015 Comments Despite The 2013 and 2014 TEITI reports were published on 28 April 2016. The reports showed that Government earnings from the extractive industries increased from TzS 956 billion in 2013 to TzS 1.221 trillion during the fiscal year ended June 30, 2014. Taken together, the Government has disclosed revenue receipts of TzS 3.96 trillion (US$ 2,539,123,424) of extractive revenues from July 1, 2008 to June 30, 2014. PHINDPDOTBL  Percentage increase in share of royalty from PML holders. (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 7.00 3.60 7.00 7.50 Date 20-Nov-2014 16-Dec-2015 16-Jun-2016 31-Dec-2018 7/29/2016 Page 5 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Sustainable Management of Mineral Resources (P096302) PHINDPDOTBL  Annual publication of mining sector revenue with an ASM annex. (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 1.00 4.00 Date 20-Nov-2014 16-Dec-2015 16-Jun-2016 31-Dec-2018 Overall Comments Intermediate Results Indicators PHINDIRITBL  Regulatory gaps addressed (Value Addition Regulations, Explosives Regulations, EITI Bill) (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N N Y Date 20-Feb-2015 12-Feb-2015 16-Jun-2016 31-Dec-2018 Comments EITI Act is in place. EITI regulations are in the preparation stage. Value Addition bill, Explosives bill are under stakeholders review prior parliament approval. The Mirelani controlled area Requlation is under review. PHINDIRITBL  Number of ASM operators benefiting from technical capacity building services provided by the project. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 20.00 118.00 160.00 100.00 Date 12-Feb-2015 16-Dec-2015 16-Jun-2016 31-Dec-2018 7/29/2016 Page 6 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Sustainable Management of Mineral Resources (P096302) PHINDIRITBL  Increase in total aggregate production value from ASM beneficiary areas. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value $4/day $20/day $20/day $50/day Date 09-Jun-2009 16-Dec-2015 16-Jun-2016 31-Dec-2018 PHINDIRITBL  Reduction in child labor participation in PML areas benefiting from the project (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.8% of miners -- 30% 75% reduction Date 12-Feb-2015 12-Feb-2015 16-Jun-2016 31-Dec-2018 Comments Actual value based on current inspections. M&E Team will be specifically tracking Child Labor in mining and a special survey will be prepared on this issue toward the end of the project. PHINDIRITBL  Number of new incorporations of ASM cooperatives, SMEs or associations as a result of new initiatives. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 250.00 250.00 250.00 400.00 Date 07-Oct-2014 20-Nov-2014 16-Jun-2016 31-Dec-2018 PHINDIRITBL  Number of PMLs registered (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 14880.00 14880.00 37800.00 20000.00 Date 07-Oct-2014 20-Nov-2014 16-Jun-2016 31-Dec-2018 7/29/2016 Page 7 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Sustainable Management of Mineral Resources (P096302) PHINDIRITBL  Number of districts with strategic development plans that integrate mining communities. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 3.00 3.00 8.00 6.00 Date 07-Oct-2014 20-Nov-2014 16-Jun-2016 31-Dec-2018 PHINDIRITBL  Revised mineral law and regulations disseminated (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target End Target fully End Target fully achieved. Revised achieved. Revised Revisions and Value Revisions ongoing Mineral Law and Mineral Law and dissemination Regulations completed Regulations completed completed. and disseminated. and disseminated. Date 09-Jun-2009 16-Dec-2015 16-Jun-2016 30-Jun-2015 PHINDIRITBL  Number of graduates in value addition from the Tanzania Gemological Centre (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 15.00 26.00 200.00 Date 07-Oct-2014 16-Dec-2015 16-Jun-2016 31-Dec-2018 PHINDIRITBL  Number of inspections completed according to the new mines inspection checklist and new environmental protection plan (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1000.00 852.00 1300.00 2500.00 Date 09-Jun-2009 16-Dec-2015 16-Jun-2016 31-Dec-2018 7/29/2016 Page 8 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Sustainable Management of Mineral Resources (P096302) PHINDIRITBL  Percentage of country covered by geophysical airborne surveys at 1:100,000 scale. (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 3.00 15.70 15.70 14.00 Date 09-Jun-2009 16-Dec-2015 16-Jun-2016 30-Jun-2015 PHINDIRITBL  Number of areas suitable for ASM identified and set aside for permitting. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 4.00 4.00 6.00 12.00 Date 07-Oct-2014 20-Nov-2014 16-Jun-2016 31-Dec-2018 PHINDIRITBL  Project monitoring and evaluation. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Successful Value Project start Success M&E in place In progress M&E Date 09-Jun-2009 16-Dec-2015 16-Jun-2016 30-Jun-2015 PHINDIRITBL  ASM database established and updated quarterly (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N N Y Date 20-Nov-2014 16-Dec-2015 16-Jun-2016 31-Dec-2018 7/29/2016 Page 9 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Sustainable Management of Mineral Resources (P096302) PHINDIRITBL  Compliance with Minamata Convention on Mercury Reduction Target (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N N Y Date 12-Feb-2015 16-Dec-2015 16-Jun-2016 31-Dec-2018 Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P096302 IDA-45840 Closed XDR 33.50 33.50 0.00 32.88 0.62 98% P096302 IDA-56330 Effective XDR 32.70 32.70 0.00 2.05 30.65 6% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P096302 IDA-45840 Closed 09-Jun-2009 22-Jul-2009 22-Sep-2009 30-Jun-2014 30-Jun-2015 P096302 IDA-56330 Effective 07-May-2015 03-Jun-2015 28-Aug-2015 31-Dec-2018 31-Dec-2018 Cumulative Disbursements 7/29/2016 Page 10 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Sustainable Management of Mineral Resources (P096302) Restructuring History Level Approved on 25-Jun-2014 Related Project(s) P151124-TZ Sustainable Management of Mineral Resources ,P152916-Additional Financing for P096302 7/29/2016 Page 11 of 11 Public Disclosure Copy