The World Bank Implementation Status & Results Report Mali Governance of Mining Sector (P164242) Mali Governance of Mining Sector (P164242) AFRICA | Mali | Energy & Extractives Global Practice | IBRD/IDA | Investment Project Financing | FY 2019 | Seq No: 1 | ARCHIVED on 05-Nov-2019 | ISR38546 | Implementing Agencies: Ministere des Mines et du Pétrole, Republic of Mali Key Dates Key Project Dates Bank Approval Date: 21-Jun-2019 Effectiveness Date: 22-Oct-2019 Planned Mid Term Review Date: -- Actual Mid-Term Review Date: Original Closing Date: 30-Jun-2024 Revised Closing Date: 30-Jun-2024 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The objective is to strengthen the capacity of the mining sector to contribute to Mali’s medium-term growth and sustainable development objectives. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Component A: Creating conditions for growth and diversification of the mineral sector:(Cost $19.00 M) Component B: Strengthening Revenue Transparency and Governance:(Cost $3.10 M) Component C: Maximizing the Local Development Impact of Mining:(Cost $12.40 M) Component D: Contingency Emergency Response Component E: Project Coordination:(Cost $5.50 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO -- Satisfactory Overall Implementation Progress (IP) -- Satisfactory Overall Risk Rating -- High Implementation Status and Key Decisions 1. Setting up of the steering committee: According to the legal covenants agreed upon during negotiations, the Government of Mali shall, no later than one month of project effectiveness, set up a Steering Committee to be chaired by the Minister of Mines and Petroleum and composed of representatives of key ministries and stakeholders. To date, this committee is not yet effective. During the implementation mission in August 2019, the World Bank team encouraged the Minister of Mines and Petroleum to make diligent arrangements for the setup of this committee as soon as possible. 2. Support for artisanal mining and small-scale mining through the review of geo-scientific data and the establishment of a synergy with mining and research companies in order to define target areas for gold panning and small-scale mining: During the implementation 11/5/2019 Page 1 of 8 The World Bank Implementation Status & Results Report Mali Governance of Mining Sector (P164242) mission in August 2019, the World Bank team suggested that the Ministry of Mines and Petroleum submit the ToRs for this activity and the signature of the multiparty agreement for the pilot phase. 3. Review of Mali's mining taxation and recommendations in relation to models implemented by other African mining countries and international practices: The new Malian Mining Code was approved by the Council of Ministers, but raises concerns from the private sector. For this reason, ToRs will be prepared to focus on implementing legislation and examining points of disagreement on taxation and other provisions of the Code, as well as the specific case of the taxation of gold panning. The World Bank team recommended to hire an international consultant to assist the Ministry of Mines and Petroleum in the drafting of the implementing regulations for the new Mining Code. 4. Feasibility study for the establishment of an incubation center to help Malian national operators succeed in mining entrepreneurship: ToRs of this incubation center has been prepared and submitted to the World Bank team. 5. Strategic Environmental Assessment (SEA) of the mining sector and Environmental and Social Management Framework (ESMF) of the project: Because of the specificity of the project, not only should the ToRs of this work be approved by the World Bank, but also that a working session be held between the World Bank and the Ministry to agree on the directions to be given to the ESMF. In addition, ToRs of the work needs to be approved before recruitment of consultants. The World Bank team recommended that the recruitment process be accelerated and finalized by October 31, 2019. 6. Study on the establishment of a mine to power synergy to assess the energy needs of mining companies and the local community and propose a plan for the operationalization of the "Power of the Mine" concept: The World Bank team recommended that the ToRs be submitted to IDA by October 31, 2019. 7. Study on the traceability of income from the mining sector and support for the EITI validation process: ToRs are being prepared for traceability study, with a focus on auditing the revenues of extractive industries in decentralised localities, assessing their impact on local development, and making appropriate recommendations. On the EITI validation side, PPA will be used in part to hire a consultant to finalise the 2017 and 2018 EITI reports. 8. Establishment of the Project Implementation Unit (PIU): The ToRs of the fiduciary (procurement and financial management) and technical (extractive industries coordinator and specialist) teams were reviewed and approved by IDA. The recruitment advice was published as required. The recruitment advice was published as required. Based on the chronograms submitted by PAAR Unit, the recruitment process will be completed before before October 31, 2019. 9. Arrangement of the project headquarters: It was decided to give priority to renting an office rather than renovating the premises initially identified. The World Bank team recommended that the process be accelerated and that the lease agreement be signed. 10. Acquisition of operating vehicles and office equipment for the PIU: The World Bank team recommended the preparation of files relating to the acquisition of office equipment and furniture. 11. Multi-stakeholder partnership: During the implementation mission in August 2019, the parties agreed to sign the multipartite memorandum of understanding on the pilot project on the organization of gold panning in the Lolou mine and the local development of the surrounding communities. The World Bank team recommended that the Ministry proceed with the implementation of activities related to this agreement as part of the PPA. To this end, the ToRs on mining and electricity synergy and the ToRs on the organization of gold panning must be submitted to the Bank for approval. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance High -- High Macroeconomic Substantial -- Substantial Sector Strategies and Policies Moderate -- Moderate Technical Design of Project or Program Moderate -- Moderate Institutional Capacity for Implementation and Sustainability High -- High Fiduciary High -- High Environment and Social Moderate -- Moderate Stakeholders High -- High Other High -- High 11/5/2019 Page 2 of 8 The World Bank Implementation Status & Results Report Mali Governance of Mining Sector (P164242) Overall High -- High Results PDO Indicators by Objectives / Outcomes Create the conditions for growth and diversification of the mineral sector IN00743826 ►Share of high-potential sheets covered by airborne or groung geophysical survey (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 25.00 -- 25.00 40.00 Date 13-Feb-2019 -- 12-Sep-2019 16-Sep-2024 Comments: Extent of knowledge of mineral potential hosted by greenstone belts IN00743827 ►Mining policy and regulatory framework attractiveness for sustainable investments (Fraser Institute Index) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 50.40 -- 50.40 60.00 Date 11-Mar-2019 -- 12-Sep-2019 14-Sep-2022 This indicator measures the adequacy of the regulatory framework for sustainable investment in Comments: exploration and mining development IN00743828 ►Satisfactory institutional effectiveness rating (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No -- No Yes Date 11-Mar-2019 -- 12-Sep-2019 14-Sep-2022 Independent annual assessment of the overall effectiveness of the Ministry of Mines and Petroleum based Comments: on evaluation of progress toward reaching the outcomes of the Results Framework and on results of customer satisfaction survey. IN00743829 ►Resource Governance Index (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 53.00 -- 53.00 75.00 Date 14-Feb-2019 -- 12-Sep-2019 16-Sep-2024 This index is published annually by the Natural Resource Governance Institute. It measures the quality of resource governance in 81 countries. It is the product of 89 country assessments (eight countries were Comments: assessed in two sectors), compiled by 150 researchers, using almost 10,000 supporting documents to answer 149 questions. IN00743830 ►Proportion of women in mining supported by the project (Percentage, Custom) 11/5/2019 Page 3 of 8 The World Bank Implementation Status & Results Report Mali Governance of Mining Sector (P164242) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 30.00 Date 13-Feb-2019 -- 12-Sep-2019 16-Sep-2024 Comments: Extent of support for women empowerment in the mining sector IN00743831 ►Number of artisanal mining cooperatives established and supported by the project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 200.00 Date 11-Mar-2019 -- 12-Sep-2019 30-Jun-2022 Comments: Extent of project support for formalization of ASM Intermediate Results Indicators by Components Component A: Creating the Conditions for Growth and Diversification of the Mineral Sector IN00743832 ►Geological attractiveness for investment (available number of area maps surveyed at scale of 1:200 000 for mining investment promotion) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 80.00 -- 80.00 130.00 Date 13-Feb-2019 -- 12-Sep-2019 16-Sep-2024 Comments: Access to geological information for investors interested in exploration IN00743836 ►Regulatory capacity (average processing time of mining title application) (Days, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 180.00 -- 180.00 30.00 Date 13-Feb-2019 -- 12-Sep-2019 16-Sep-2024 Comments: This indicator measures government's efficiency in providing access to mineral resources IN00743841 ►Average number of annual health, safety, environmnetal and social compliance inspections for each active mining operation (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 -- 1.00 4.00 Date 29-Jun-2018 -- 12-Sep-2019 31-Dec-2021 Comments: This indicator measures the government's capacity to monitor mining operations IN00743844 11/5/2019 Page 4 of 8 The World Bank Implementation Status & Results Report Mali Governance of Mining Sector (P164242) ►Establishment and operationalization of Inter-Ministerial Mine Coordination Unit (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No -- No Yes Date 29-Jun-2018 -- 12-Sep-2019 16-Sep-2024 This indicators measures the government's capacity to formulate policies and negotiate mining Comments: agreements Component B: Strengthening Revenue Transparency and Gocvernance IN00743833 ►Number of mining localities with completed strategic development plans that integrate mining EI revenues (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 6.00 Date 29-Jun-2018 -- 12-Sep-2019 31-Dec-2021 IN00743835 ►Establishment of an online platform for EI revenue data integration and monitoring at local and central levels (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No -- No Yes Date 12-Jun-2019 -- 12-Sep-2019 31-Dec-2021 IN00743837 ►Representation of women in community-based management committees (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 10.00 -- 10.00 30.00 Date 23-Jan-2019 -- 12-Sep-2019 31-Dec-2021 This indicator measures the extent of women's voice and accountability in extractive revenue Comments: management IN00743839 ►Annual publication of compliant EITI reports incorporating ASM revenue and disaggregated local revenue (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No -- No Yes Date 14-Feb-2019 -- 12-Sep-2019 16-Sep-2024 Comments: Indicator of transparency of mining revenues received at local and central levels IN00743842 ►Consultation and debates on the governance and transparency diligently documented and publicly disclosed (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 5.00 11/5/2019 Page 5 of 8 The World Bank Implementation Status & Results Report Mali Governance of Mining Sector (P164242) Date 28-May-2019 -- 12-Sep-2019 28-Jun-2024 Consultation and debates related to the governance and transparency of social payments, corporate Comments: social responsibility, and other contextual data related to the extractive sector need to be well documented and publicly disclosed with full access to citizens. IN00743845 ►Feedback received from public consultations and debates have been incorporated in the upcoming Mali EITI report, as well as the mining sector beneficial ownership road map (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No -- No Yes Date 28-May-2019 -- 12-Sep-2019 28-Jun-2024 Feedback received from public consultations and debates will be incorporated in the next Mali EITI report, Comments: as well as the mining sector beneficial ownership road map to be developed and implemented under the scope of this proposed project. Component C: Maximizing the Local Development Impact of Mining IN00743834 ►Number of registered and active ASM cooperatives, SMEs or associations as a result of the project formalization initiatives (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 100.00 -- 100.00 400.00 Date 29-Jun-2018 -- 12-Sep-2019 31-Dec-2021 IN00743838 ►Number of women supported through associations to establish and operate value-added industries (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 500.00 Date 12-Jun-2019 -- 12-Sep-2019 31-Dec-2021 Comments: Extent of project support of economic empowerment of women IN00743840 ►Number of mining companies signing on to multi-stakeholder initiatives for power and mining integration (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 3.00 Date 12-Jun-2018 -- 12-Sep-2019 16-Sep-2024 Comments: Extent of operationalization of the Power of the Mine Initiative to improve energy access in rural areas IN00743843 ►Number of women supported to participate in alternative livelihood activities (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 300.00 Date 12-Jun-2018 -- 12-Sep-2019 16-Sep-2024 11/5/2019 Page 6 of 8 The World Bank Implementation Status & Results Report Mali Governance of Mining Sector (P164242) Comments: Extent of project support of economic empowerment of women Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P164242 IDA-64470 Effective USD 40.00 40.00 0.00 0.00 39.65 0% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P164242 IDA-64470 Effective 21-Jun-2019 12-Jul-2019 22-Oct-2019 30-Jun-2024 30-Jun-2024 Cumulative Disbursements 11/5/2019 Page 7 of 8 The World Bank Implementation Status & Results Report Mali Governance of Mining Sector (P164242) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 11/5/2019 Page 8 of 8