The World Bank Report No: ISR5418

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

Operation Name: Sustainable Management of Mineral Resources (P096302) Project Stage: Implementation Seq.No: 5 Status: ARCHIVED Archive Date: Country: Tanzania Approval FY: 2009

Public Disclosure Authorized Product Line:IBRD/IDA Region: AFRICA Lending Instrument: Technical Assistance Loan Implementing Agency(ies): Ministry of Energy and Minerals Key Dates Board Approval Date 09-Jun-2009 Original Closing Date 30-Jun-2014 Planned Mid Term Review Date 30-Apr-2012 Last Archived ISR Date 07-Sep-2011 Public Disclosure Copy Effectiveness Date 22-Sep-2009 Revised Closing Date 30-Jun-2014 Actual Mid Term Review Date

Project Development Objectives Project Development Objective (from Project Appraisal Document)

Has the Project Development Objective been changed since Board Approval of the Project?

Yes No Public Disclosure Authorized Component(s)

Component Name Component Cost A. Improving the Benefits of the Mineral Sector for Tanzania: Artisanal and Small-scale Mining, Local 15.90 Economic Development, and Ski B. Strengthening Governance and Transparency in MIning 8.70 C. Stimulating Mineral Sector Investment 25.00 D. Project Coordination and Management 2.50

Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Satisfactory

Public Disclosure Authorized Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Substantial Substantial

Implementation Status Overview Despite a slow start-up the project is now progressing well and rated satisfactory. At the early stages of implementation the project is achieving some good results, such as (i) Public Disclosure Copy increase in license rents by 164% and royalties by 129% since the project commencement, (ii) augmentation in mine audits up to 42%, (iii) ahead of schedule digitization of geological maps with 51% output, etc. It's important to build on the results achieved and keep up a good pace of implementation.

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EITI is advancing its course in Tanzania. Following publication of the first EITI Report and its validation the dissemination campaigns, engaging a broad range of stakeholders, from parliamentarians to local communities are in full swing. The Office of Controller and Auditor General (CAG) is compiling a report to explain the discrepancies identified by the first reconciliation report. Various stakeholders in the country take interest in the CAG findings that will be issued after completion of the CAG reconciliation of the discrepancies. Concurrently preparation of the second report is underway.

Locations Country First Administrative Division Location Planned Actual Tanzania Tarime District

Tanzania Not Entered United Republic of Tanzania

Public Disclosure Copy Tanzania Tanga Region

Tanzania Same District

Tanzania Kilimanjaro Region Rombo District

Tanzania Mpanda District

Tanzania Not Entered Morogoro Urban

Tanzania Mbozi District

Tanzania Mbeya Region Mbeya Region

Tanzania Manyoni District

Tanzania Region Mandawa

Tanzania Makete District

Tanzania Kilimanjaro Region Kilimanjaro Region

Tanzania Kasulu District

Tanzania Kahama District

Tanzania Region Kabanga

Tanzania Singida Region Itigi

Tanzania Geita District

Tanzania Mbeya Region Chunya District

Public Disclosure Copy Tanzania Shinyanga Region Bukombe

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Country First Administrative Division Location Planned Actual Tanzania Kagera Region Bukoba District

Tanzania Kagera Region Biharamulo District

Tanzania Arusha

Tanzania Kagera Region Kagera

Tanzania Region Mtwara Region

Tanzania Mbinga District Public Disclosure Copy Results

Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Percentage increase of household income Percentage Value 0.00 0.00 10.00 levels in selected ASM communities Date 31-Oct-2011 30-Jun-2014 Comments Update pending on completion of the ASM baseline study due end of 2011. Time to process mineral rights (exploration Months Value 15.00 18.00 2.00 licenses). Date 09-Jun-2009 31-Oct-2011 30-Jun-2014 Comments 15 Months was a rough In Oct 2011 18 months for PL estimate at appraisal and was & 23 months for PML. The 3- underestimated. month moratorium introduced at the end of 2010 to allow time for changes in workflows after enactment of the new mining act (2010), led to increase in backlog of the mining licenses. Improvement in Tanzania's ranking as a mining Text Value 48/71 for policy ranking & 61/79 for policy ranking & Increase of 2-3 points/palces investment destination as evidenced by 22/71 for mineral potential 23/79 for mineral potential or more over baseline in one independent investor survey (Fraser Institute). or both indicators. Date 30-Jun-2009 31-Oct-2011 30-Jun-2014 Public Disclosure Copy

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Indicator Name Core Unit of Measure Baseline Current End Target Comments Drop in the policy attractiveness ranking caused by uncertainty around the new mining law. The geological attractiveness has increased and is expected to improve further after geological component results.

Intermediate Results Indicators

Public Disclosure Copy Indicator Name Core Unit of Measure Baseline Current End Target Improved performance in selected ASM Text Value 4.7 tons of gold TBD coummunities as evidenced by increased production (quantity and USD). Date 09-Jun-2009 31-Oct-2011 30-Jun-2014 Comments Baseline. Yearly targets to be Pending completion of the Targets to be developed in developed in tandem with ASM baseline survey due end tandem with ASM baseline ASM baseline survey (see of 2011. survey PDO indicator 1). Percentage of pending mineral rights Percentage Value 10000.00 40.00 80.00 applications reduced. Date 01-Mar-2009 31-Oct-2011 30-Jun-2014 Comments Pending/backlog of Outstanding prospecting 80% reduction expected from applications from Oct 2007- license applications have baseline number March 2009 decreased from 10,000 to 6,000 (40%) and average processing time has reduced by 2months. Percentage of country covered by geophysical Percentage Value 3.00 3.00 14.00 airborne surveys at 1:100,000 scale. Date 09-Jun-2009 31-Oct-2011 30-Jun-2014 Comments 3% of the country coverd by Procurement of services for airborne geophysics conducting airborne geophysical survey and consultancy for supervision of airborne geophysical servicesare at its completion stage. Project monitoring and evaluation. Text Value Project start Successful M&E

Date 09-Jun-2009 31-Oct-2011 30-Jun-2014 Public Disclosure Copy

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Indicator Name Core Unit of Measure Baseline Current End Target Comments Project M&E system, building M&E consultancy price tripled Regular project reporting will on results framework, to be the projected costs and is be used to track project developed in Year 1 being rebidded now. results. Revised mineral law and regulations Text Value Revisions ongoing Revisions and dissemination disseminated completed. Date 09-Jun-2009 31-Oct-2011 30-Jun-2014 Comments 3000 copies of revised mineral policy disseminated. Formulation of legal and regulatory framework on

Public Disclosure Copy value addition ongoing. Number of mines inspections (including Text Value 1,000 per year 3488 Regular and systemized environmental) and remedial actions; number inspections and audits of audits. Date 09-Jun-2009 31-Oct-2011 Comments 568 mine inspections and 3488 mine audits, including 98 environmental, in 2010/2011

Data on Financial Performance (as of 16-May-2011)

Financial Agreement(s) Key Dates Project Loan No. Status Approval Date Signing Date Effectiveness Date Closing Date P096302 IDA-45840 Effective 09-Jun-2009 22-Jul-2009 22-Sep-2009 30-Jun-2014

Disbursements (in Millions) Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P096302 IDA-45840 Effective XDR 33.50 33.50 0.00 3.64 29.86 11.00

Disbursement Graph Public Disclosure Copy

Page 5 of 6 The World Bank Report No: ISR5418 Public Disclosure Copy

Key Decisions Regarding Implementation Following the decision of the EITI Board on meaningful progress achieved by the country in EITI implementation after completion of its first validation, Tanzania currently undergoes the second reconciliation and undertakes the remedial actions necessary to achieve the compliant status.

Restructuring History There has been no restructuring to date.

Related Projects There are no related projects. Public Disclosure Copy

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