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World Bank Document FOR OFFICIAL USE ONLY Report No: PAD2668 Public Disclosure Authorized INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT APPRAISAL DOCUMENT ON A PROPOSED GRANT IN THE AMOUNT OF SDR 36.5 MILLION (US$50.0 MILLION EQUIVALENT) AND A PROPOSED CREDIT IN THE AMOUNT OF EUR 45.0 MILLION (US$50.0 MILLION EQUIVALENT) TO THE Public Disclosure Authorized REPUBLIC OF NIGER FOR A GOVERNANCE OF EXTRACTIVES FOR LOCAL DEVELOPMENT AND COVID-19 RESPONSE PROJECT July 13, 2020 Public Disclosure Authorized Governance Global Practice Africa Region Public Disclosure Authorized This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS Exchange Rate Effective May 31, 2020 Currency Unit = Euro (EUR) EUR 0.8984= US$1 SDR 0.7288 = US$1 FISCAL YEAR January 1 - December 31 Regional Vice President: Ousmane Diagana Country Director: Soukeyna Kane Global Practice Director: Edward Olowo-Okere Regional Director: Elisabeth Huybens Practice Manager: Alexandre Arrobbio Task Team Leaders: Abel Bove, Kirsten Lori Hund, Ragnvald Michel Maellberg ABBREVIATIONS AND ACRONYMS AFSIEN Association des Femmes du Secteur des Industries Extractives du Niger, Women in extractive sector network ANFICT Agence Nationale de Financement des Collectivités Territoriales, National Agency for Financing Territorial Communities ASM Artisanal and Small-scale Mining BCEAO Banque Centrale des États de l'Afrique de l'Ouest, West Africa Central Bank CE Citizen Engagement CFGCT Centre de Formation en Gestion des Collectivités Territoriales, LG training center COMINAK Compagnie minière d'Akokan, State-Owned Mining Company of Akokan COVID-19 Coronavirus Disease 2019 CNESS Centrale Nationale des Etudes Stratégiques et Sécurité, National Center for Strategic Security Studies CNPC China National Petroleum Corporation CRGM Centre de Recherche Géologique et Minière, Geological and Mining Research Center CPF Country Partnership Framework CY Calendar Year DEP Direction des Etudes et Programmes, Direction of Studies and Programming DFIL Disbursement and Financial Information Letter DGATD Direction Générale de l’Administration du Territoire et de la Deconcentration, General Direction of Territorial Administration and Deconcentration DGDCT Direction Générale de la Décentralisation et des Collectivités Territoriales, General Direction of Decentralization and Local Government DGTCP Direction General du Trésor et de la Comptabilité Publique, General Direction of Treasury and Public Accounting DRH Direction des Ressources Humaines, Human Resources Department ECOWAS Economic Community of West African States EEP Eligible Expenditure Programs EITI Extractive Industries Transparency Initiative ENA Ecole Nationale d’Administration, National Public Administration School ESCP Environmental and Social Commitment Plan ESS Environmental and Social Safeguards EUR Euro FAD Fond d’Appui au Développement, Development Support Fund FCV Fragility Conflict and Violence FM Financial Management FMS Financial Management Specialist FP Fond de Péréquation, Equalization Fund FCFA Franc of the Financial Community of Africa FY Fiscal Year GBV Gender Based Violence GDP Gross Domestic Product GOLD Governance of extractives for Local Development GoN Government of Niger GRM Grievance Redress Mechanism GRS Grievance Redress Service HACP Haute Autorité à la Consolidation de la Paix, High Authority for Peace Consolidation HR Human Resources HRM Human Resources Management IDA International Development Association IAEA International Atomic Energy Agency IGF Inspection Générale des Finances ; General Inspection of Finance IFR Interim Financial Report IMF International Monetary Fund IPF Investment Project Financing IRR Internal Rate of Return IVA Independent Verification Agent IT Information Technology LG Local Government LSM Large Scale Mining M&E Monitoring and Evaluation MoF Ministry of Finance MoM Ministry of Mines MoP Ministry of Planning NPV Net Present Value OECD Organisation for Economic Co-operation and Development PBC Performance Based Condition PBR Performance Based Result PCDS Public Sector Capacity and Performance for Service Delivery PDES Programme de développement économique et social PDO Project Development Objective PFS Project annual financial statements PIM Project Implementation Manual PIU Project Implementation Unit PFM Public Financial Management Plan TCR Plan de Transfert des Ressources et des Compétences, Plan for the Transfer of Resources and Competences to Local Government PPSD Project Procurement Strategy for Development PRACC Projet d’Appui a la Croissance et la Competitivite, Project for Competitiveness and Growth SC Steering Committee SEP Stakeholder Engagement Plan SESA Mining Sector Strategic Environmental and Social Assessment SIGMINES Système d’Information Géologique Mines (Mining geological information system) SOPAMIN Société du patrimoine des mines du Niger, State-Owned Mining Investment Company SORAZ Société de Raffinage de Zinder, State-Owned Petroleum Refining Company SYSCOHADA Système Comptable de l’Organisation pour l'harmonisation en Afrique du droit des affaires, accounting system of the Organisation for the Harmonisation of Corporate Law in Africa TA Technical assistance ToR Terms of References TSA Treasury Single Account WAEMU West African Economic and Monetary Union WB World Bank The World Bank Governance of Extractives for Local Development & COVID-19 Response Project (P164271) TABLE OF CONTENTS DATASHEET ........................................................................................................................... 1 I. STRATEGIC CONTEXT ...................................................................................................... 7 A. Country Context................................................................................................................................ 7 B. Sectoral and Institutional Context .................................................................................................... 8 C. Relevance to Higher Level Objectives ............................................................................................... 9 II. PROJECT DESCRIPTION .................................................................................................... 9 A. Project Development Objective (PDO) ............................................................................................. 9 B. Project Components ....................................................................................................................... 10 C. Project Beneficiaries ....................................................................................................................... 17 D. Results Chain .................................................................................................................................. 17 E. Rationale for Bank Involvement and Role of Partners ................................................................... 19 F. Lessons Learned and Reflected in the Project Design .................................................................... 19 III. IMPLEMENTATION ARRANGEMENTS ............................................................................ 20 A. Institutional and Implementation Arrangements .......................................................................... 20 B. Results Monitoring and Evaluation Arrangements......................................................................... 20 C. Sustainability ................................................................................................................................... 21 IV. PROJECT APPRAISAL SUMMARY ................................................................................... 22 A. Technical, Economic and Financial Analysis ................................................................................... 22 B. Fiduciary .......................................................................................................................................... 22 C. Legal Operational Policies ............................................................................................................... 24 D. Environmental and Social (E&S) ..................................................................................................... 25 V. GRIEVANCE REDRESS SERVICES ..................................................................................... 26 VI. KEY RISKS ..................................................................................................................... 26 VII. RESULTS FRAMEWORK AND MONITORING ................................................................... 29 Annex 1: Implementation Arrangements and Support Plan .................................................. 61 Annex 2: GOLD Project Contribution to Identified Relevant Gender Gaps ............................. 74 Annex 3: Extractive Revenue-Sharing Arrangement in Niger ................................................. 76 Annex 4: Overview of Transfer of Responsibilities to Local Governments ............................. 77 Annex 5: Local Government Financing in Niger: opportunities .............................................. 78 Annex 6: Extractive Sector Management Challenges ............................................................ 80 Annex 7: GOLD Project Contribution to Niger FCV Risk Mitigation Strategy .......................... 86 Annex 8: Climate Co-Benefits Rationale ..............................................................................
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