The World Bank Report No: ISR6052 Implementation Status & Results Papua New Guinea PG Second Mining Sector Inst Strengthening TA (P102396) Public Disclosure Copy Operation Name: PG Second Mining Sector Inst Strengthening TA (P102396) Project Stage: Implementation Seq.No: 5 Status: ARCHIVED Archive Date: 30-Jun-2011 Country: Papua New Guinea Approval FY: 2008 Product Line: IBRD/IDA Region: EAST ASIA AND PACIFIC Lending Instrument: Technical Assistance Loan Implementing Agency(ies): Mineral Resources Authority Key Dates Board Approval Date 26-Jun-2008 Original Closing Date 31-Dec-2013 Planned Mid Term Review Date 19-Mar-2012 Last Archived ISR Date 30-Jun-2011 Effectiveness Date 03-Aug-2009 Revised Closing Date 31-Dec-2013 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective is to improve the benefits from Extractive Industries (EI) to the national budget and to mining affected communities and to mitigate mining's health and safety risks for ASM miners. This will be achieved through improving effectiveness of key EI sector institutions, supporting EI communities to be better able to monitor the delivery of community programs and services, empowering disadvantaged groups including women and youth in extractive industries affected areas, and improving accountability of the sector and for management and use of mining-related revenues. The primary target groups are the institutions involved in the mining sector, the communities in the vicinity of both large-scale and artisanal/small scale mining operations and the recipients and managers of mining benefits streams. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Strengthening Policy and Regulatory frameworks 1.90 Strngthening Mining Sector Governance 8.19 Improving Revenue Collection 4.20 Public Disclosure Copy Strengthening Minng Sector Management in Bougainville 2.00 Project Management 0.67 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Page 1 of 4 The World Bank Report No: ISR6052 Implementation Status Overview This ISR reports on the findings of a World Bank supervision mission to PNG from November 22 to December 2, 2011. Changes have been made in the leadership of the project implementation team of MRA, with a new manager full time dedicated to project implementation, an international and national procurement specialist being hired and an accountant and financial specialists complementing the team. The project has now all necessary implementation arrangements to catch up on the activities. These changes haves resulted in Public Disclosure Copy increased procurement activities in all components, and it is expecteding that in the next three months, a considerable level of contract commitments under the project is to will take place. The procurement plan has been revised to reflect all agreements made during the supervision mission and a priority procurement plan for 2012 has been prepared. With an intensive effort on behalf of all relevant agencies involved, the project may be able to achieve the project development objectives (PDO) in the remaining time before project closing date (December 31, 2013). Mid Term Review (MTR) of the project is planned to take place during the next supervision mission (mid March, 2012). Locations Country First Administrative Division Location Planned Actual Pap. New Guinea Not Entered Independent State of Papua New Guinea Pap. New Guinea Bougainville Bougainville Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Increased Tax Assessments from IRC audits Text Value 0 US24 million dollars Date 26-Jun-2009 14-Jun-2011 31-Dec-2013 Comments Team leader in place; progress made to recruit the other two team members - too early to show results Mining community representatives participate Text Value 0 6 in preparation of Local Level Mining Date 26-Jun-2009 14-Jun-2011 31-Dec-2013 Community Development Plans Comments Consultants not yet deployed - too early to identify results Number of community groups participating in Text Value 0 3 at each mine site Public Disclosure Copy community planning Date 26-Jun-2009 14-Jun-2011 31-Dec-2013 Comments Consultants not yet deployed - too early to identify results Number of ASM miners using mercury Text Value 0 180 management or zero mercury technologies Date 26-Jun-2009 24-Dec-2010 31-Dec-2013 Comments Consultants not yet deployed - too early to identify results Intermediate Results Indicators Page 2 of 4 The World Bank Report No: ISR6052 Indicator Name Core Unit of Measure Baseline Current End Target Exploration and Mining license processing time Text Value 300 days 120 days is reduced Date 26-Jun-2009 14-Jun-2011 31-Dec-2013 Public Disclosure Copy Comments Consultants not yet deployed - too early to identify results Number of IRC tax audits conducted Text Value 2 6 Date 26-Jun-2009 14-Jun-2011 31-Dec-2013 Comments Consultants only now starting to be deployed - too early to identify results New mining sector policies developed, Text Value 0 3 including mine closure, offshore mining and Date 26-Jun-2009 14-Jun-2011 31-Dec-2013 mining safety Comments Consultants not yet deployed - too early to identify results New mining legislation developed and adopted Text Value 0 3 Date 26-Jun-2009 14-Jun-2010 31-Dec-2013 Comments Consultants recruited with government's funds - 2 pieces of legislation reviewed and recommendations made New mining M&E framework developed and Text Value Developed 0 Adopted by Developed 1 Adopted by adopted mines 0 mines 6 Date 26-Jun-2009 14-Jun-2010 31-Dec-2013 Comments Consultants not yet deployed - too early to identify results Number of community plans reflecting priotities Text Value 0 6 opf women and youth Date 26-Jun-2009 14-Jun-2010 31-Dec-2013 Comments Consultants not yet deployed - too early to identify results Public Disclosure Copy Number of communities where MRA provides Text Value 0 6 reports on benefits streams and discusses Date 26-Jun-2009 14-Jun-2010 31-Dec-2013 these with communities Comments Consultants not yet deployed - too early to identify results Data on Financial Performance (as of 26-Jan-2012) Financial Agreement(s) Key Dates Project Loan No. Status Approval Date Signing Date Effectiveness Date Closing Date Page 3 of 4 The World Bank Report No: ISR6052 Project Loan No. Status Approval Date Signing Date Effectiveness Date Closing Date P102396 IDA-44910 Effective 26-Jun-2008 19-Feb-2009 03-Aug-2009 31-Dec-2013 Disbursements (in Millions) Public Disclosure Copy Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P102396 IDA-44910 Effective XDR 10.40 10.40 0.00 1.97 8.43 19.00 Disbursement Graph Key Decisions Regarding Implementation By mid-February 2012, the Client project team will prepare and submit for Bank's consideration the Annual Report, which will include also an update of the project monitoring and evaluation indicators. Public Disclosure Copy Restructuring History There has been no restructuring to date. Related Projects There are no related projects. Page 4 of 4