Implementation Status & Results Tanzania Sustainable Management of Mineral Resources (P096302)

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1 Public Disclosure Authorized Public Disclosure Authorized The World Bank Implementation Status & Results Tanzania Sustainable Management of Mineral Resources (P096302) Operation Name: Sustainable Management of Mineral Resources (P096302) Project Stage: Implementation Seq.No: 9 Status: ARCHIVED Archive : 11-Aug-2014 Country: Tanzania Approval FY: 2009 Product Line: IBRD/IDA Region: AFRICA Lending Instrument: Technical Assistance Loan Implementing Agency(ies): Key s Board Approval 09-Jun-2009 Original Closing 30-Jun-2014 Planned Mid Term Review 15-Oct-2012 Last Archived ISR 10-Sep-2013 Effectiveness 22-Sep-2009 Revised Closing Actual Mid Term Review 12-Nov-2012 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? Yes No Component(s) losure Authorized Public Disclosure Authorized Component Name Component Cost A. Improving the Benefits of the Mineral Sector for Tanzania: Artisanal and Small-scale Mining, and Local Economic Development, B. Strengthening Governance and Transparency in MIning 8.70 C. Stimulating Mineral Sector Investment D. Project Coordination and Management 2.50 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Satisfactory Overall Risk Rating Substantial Substantial Implementation Status Overview This ISR reports on progress since August The Bank carried out two supervision support missions during the period. The first mission was held from October 20th-30th 2013 with a continued focus on monitoring of disbursement targets agreed with the Ministry for December The second mission was held from March 31st - April 11th 2014 with a focus on assessing the extension request and on-going monitoring of project implementation. Page 1 of 6

2 Implementation progress remains Satisfactory. During the period, the project has made noticeable progress towards achieving its development objectives: total cumulative disbursements have now risen to US$41.4 million or 83% of the original project funds. The backlog on processing of licenses is now completely reduced and licenses now take up to 2 weeks only for processing prospecting licenses and only 1 week for primary mining licenses. Mine audits are now regularly occurring. Digitization of geological maps is still ahead of schedule. The completion of geological data interpretation has been completed from the high resolution airborne geophysical surveys in selected parts of the country with high minerals potentials. The survey has already identified previously unknown geological structures including potential new gold and Tanzanite mineralization. For the small-scale mining components which had known significant delays up until l1 year ago, there has been remarkable progress. The Small Grants Program, Phase 1, was launched during the March 2014 mission in Dodoma and officiated by the Prime Minister Hon. Mizengo Pinda. Of the 11 successful grant applicants selected by the Tanzanian Investment Bank (TIB), who is administering the pilot grant project on behalf of the SMMRP, 4 are women mine owners and one has a long-term disability. Already another 9 applications have been received by TIB, demonstrating the strong demand for support to the development of the small-scale mining sector in Tanzania. Multi-Stakeholder Partnership Initiative (MSPI) on ASM-LSM Coexistence in Tanzania launched the design phase for the two pilot sites (Geita and North Mara). Locations Country First Administrative Division Location Planned Actual Tanzania Mara Region Tarime District Tanzania Not Entered United Republic of Tanzania Tanzania Tanga Region Tanga Region Tanzania Kilimanjaro Region Same District Tanzania Kilimanjaro Region Rombo District Tanzania Rukwa Region Mpanda District Tanzania Not Entered Morogoro Urban Tanzania Mbeya Region Mbozi District Tanzania Mbeya Region Mbeya Region Tanzania Singida Region Manyoni District Tanzania Lindi Region Mandawa Tanzania Iringa Region Makete District Tanzania Kilimanjaro Region Kilimanjaro Region Tanzania Kigoma Region Kasulu District Tanzania Shinyanga Region Kahama District Tanzania Kagera Region Kabanga Page 2 of 6

3 Country First Administrative Division Location Planned Actual Tanzania Singida Region Itigi Tanzania Mwanza Region Geita District Tanzania Mbeya Region Chunya District Tanzania Shinyanga Region Bukombe Tanzania Kagera Region Bukoba District Tanzania Kagera Region Biharamulo District Tanzania Arusha Region Arusha Tanzania Kagera Region Kagera Tanzania Mtwara Region Mtwara Region Tanzania Ruvuma Region Mbinga District Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Percentage increase of household income Percentage Value levels in selected ASM communities 2009-baseline US$4/day Draft survey was completed in US$8/day May Income has decreased as result of lower gold prices. Client and Bank revising results, after which time a revision to the target number may be provided in the next ISR. Percent of citizens in participating communities Percentage Value who consider that their views have been taken 31-Dec-2010 into account in the local economic development strategic planning process (perception survey) Based on field survey under Two local economic the Benefits Study development workshops have resulted in targeting addtional communities. Page 3 of 6

4 Time to process mineral rights (exploration licenses). Months Value Jun Months was a rough 2 weeks for PLs and 1 week No more than two months for estimate at appraisal and was for PMLs after the backlog of review and approval of underestimated. old applications was cleared. prospecting licenses. Annual publication of mining sector revenue Yes/No Value No Yes Yes 30-Jun-2009 Draft fourth report has been released. Fourth report and compliant status Improvement in Tanzania's ranking as a mining investment destination as evidenced by independent investor survey (Fraser Institute). Text Value 48/71 for policy ranking & 22/71 for mineral potential 30-Jun-2009 Tanzania has risen back up this year to 62nd. The Frasier Institute's annual report raised Tanzania's ranking. It is still not a full recovery to the baseline but is remarkable improvement nonetheless. In fact, Tanzania was recognized as "the most improved" country in Africa for Percentage increase in mining revenue Percentage Value Jun-2009 Intermediate Results Indicators First EITI Report showed consolidated revenue of $100million. According to the fourth TEITI report covering 43 companies, government EI revenues increased by 52% to USD 468 million from the previous year. Increase of 2-3 points/palces or more over baseline in one or both indicators. Revenues increase of 5% over baseline. Indicator Name Core Unit of Measure Baseline Current End Target Improved performance in selected ASM Text Value 4.7 tons of gold TBD TBD coummunities as evidenced by increased 09-Jun-2009 production (quantity and USD). Baseline. Yearly targets to be With Small Grants program developed in tandem with ASM baseline survey (see PDO indicator 1). disbursing, first report results will be incorporated into the next ISR. Page 4 of 6

5 Percentage of pending mineral rights applications reduced. Percentage of country covered by geophysical airborne surveys at 1:100,000 scale. Percentage Value Mar-2009 Pending/backlog of applications from Oct March applications in total. All outstanding application were solved and the backlog cleared. Percentage Value Jun % of the country coverd by airborne geophysics 15.7% of the country covered by high resolution airborne geophysical survey (the incease of 1.5% is due to additional surveys in Merelani areas). The new survey included a total of 556,880 Line km of magnetic and radiometric, 57,980 line km of gravity and 20,000 line km of electromagnetic. Project monitoring and evaluation. Text Value Project start In progress Successful M&E 09-Jun-2009 Project M&E system, building on results framework, to be developed in Year 1 ASM Baseline to be incorporated into M&E. Regular project reporting will be used to track project results. Revised mineral law and regulations disseminated Number of mines inspections (including environmental) and remedial actions; number of audits. Data on Financial Performance (as of 03-Jul-2014) Financial Agreement(s) Key s Text Value Revisions ongoing Done Revisions and dissemination completed. 09-Jun-2009 Text Value 1,000 per year Regular inspections are the norm 09-Jun-2009 Large, medium and small scale mines were inspected on HSE. Regular and systemized inspections and audits Project Ln/Cr/Tf Status Approval Signing Effectiveness Original Closing Revised Closing P IDA Effective 09-Jun Jul Sep Jun-2014 Page 5 of 6

6 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P IDA Effective XDR Disbursement Graph Key Decisions Regarding Implementation The October 2013 and March 2014 Supervisory Missions confirmed that the project development objective remains valid. The Project has received a one-year extension to complete remaining activities under the following components: i) Strengthening Governance and Transparency in the Mining Sector and ii) Stimulating the Private Sector Investment. Restructuring History Level two Approved on 25-Jun-2014 Related Projects P TZ Sustainable Management of Mineral Resources Page 6 of 6