Mali-Governance-Of-Mining-Sector
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FOR OFFICIAL USE ONLY Report No: PAD2783 Public Disclosure Authorized INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT APPRAISAL DOCUMENT ON A PROPOSED CREDIT IN THE AMOUNT OF EUR 35.7 MILLION (US$40.0 MILLION EQUIVALENT) TO THE Public Disclosure Authorized REPUBLIC OF MALI FOR THE MALI GOVERNANCE OF MINING SECTOR May 30, 2019 Public Disclosure Authorized Energy and Extractives 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 April 30, 2019) Currency Unit = Euros (EUR) EUR 0.89190153 = US$1 FISCAL YEAR January 1 - December 31 Regional Vice President: Hafez Ghanem Country Director: Soukeyna Kane Senior Global Practice Director: Riccardo Puliti Practice Manager: Christopher Gilbert Sheldon Task Team Leaders: Mamadou Barry, Tahirou Kalam ABBREVIATIONS AND ACRONYMS AEITF Africa Extractive Industry Trust Fund ASM Artisanal and Small-Scale Mining AWPB Annual Work Plan and Budget CERC Contingency Emergency Response Component CPF Country Partnership Framework CREDD Cadre Stratégique pour la Relance Economique et le Développement Durable du Mali (Mali Strategic Framework for Economic Recovery and Sustainable Development) CFAF CFA Franc (currency of member countries of the African Finance Community) DA Designated Account DAF-MM Direction Administrative et Financière du Ministère des Mines (Administration and Finance Directorate, Ministry of Mines) DGI Direction Générale des Impôts (General Directorate of Taxation) EI Extractive Industry EITI Extractive Industries Transparency Initiative FCV Fragility, Conflict, and Violence FDI Foreign Direct Investment FM Finance Management FY Fiscal Year GBV Gender-based Violence GDP Gross Domestic Product GEMS Geo-enabling Method for Monitoring and Supervision GPN General Procurement Notice GRM Grievance Redress Mechanism GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit (German Corporation for International Cooperation) IBM Iterative Beneficiary Monitoring IFC International Finance Corporation IFR Interim Financial Report IPF Investment Project Financing M&E Monitoring and Evaluation MFD Maximizing Finance for Development NGO Non-governmental Organization NPF New Procurement Framework OECD Organisation for Economic Co-operation and Development PAAR Projet d'Amélioration de l'Accessibilité Rurale (Rural Mobility and Connectivity Project) PAGIE Projet d’Appui à la Gouvernance des Industries Extractives (Extractive Industries Governance Support Project) PCU Project Coordination Unit PDO Project Development Objective PIM Project Implementation Manual PIU Project Implementation Unit PPA Project Preparation Advance PPSD Project Procurement Strategy for Development PSC Project Steering Committee SCD Systematic Country Diagnostic SESA Strategic Environmental and Social Assessment SMEs Small and Medium Enterprises SPN Specific Procurement Notice STEP Systematic Tracking of Exchanges in Procurement SYSCOHADA Systéme Comptable OHADA (OHADA Accounting System) TA Technical Assistance UN United Nations VfM Value for Money WB World Bank The World Bank Mali Governance of Mining Sector (P164242) TABLE OF CONTENTS DATASHEET ........................................................................................................................... 1 I. STRATEGIC CONTEXT ...................................................................................................... 7 A. Country Context ............................................................................................................................ 7 B. Sectoral and Institutional Context .............................................................................................. 11 C. Relevance to Higher Level Objectives ......................................................................................... 17 II. PROJECT DESCRIPTION .................................................................................................. 19 A. Project Development Objective (PDO) ....................................................................................... 19 B. Project Components ................................................................................................................... 19 C. Project Cost and Financing .......................................................................................................... 23 D. Project Beneficiaries ................................................................................................................... 23 E. Value Chain ................................................................................................................................. 23 F. Theory of Change ........................................................................................................................ 24 G. Rationale for World Bank Involvement and Role of Partners ..................................................... 26 H. Lessons Learned and Reflected in the Project Design ................................................................ 26 III. IMPLEMENTATION ARRANGEMENTS .............................................................................. 27 A. Institutional and Implementation Arrangements ....................................................................... 27 B. Results Monitoring and Evaluation Arrangements ..................................................................... 28 C. Sustainability ............................................................................................................................... 31 IV. PROJECT APPRAISAL SUMMARY ................................................................................... 31 A. Technical, Economic and Financial Analysis................................................................................ 31 B. Fiduciary ...................................................................................................................................... 32 C. Safeguards ................................................................................................................................... 34 D. Grievance Redress Mechanisms ................................................................................................. 35 E. Climate Change Co-Benefits and Migration ................................................................................ 35 V. KEY RISKS ..................................................................................................................... 35 VI. RESULTS FRAMEWORK AND MONITORING ................................................................... 38 ANNEX 1: Implementation Arrangements and Support Plan .......................................... 45 ANNEX 2: Sector Context and Detailed Project Description ............................................ 56 ANNEX 3: Map .............................................................................................................. 68 The World Bank Mali Governance of Mining Sector (P164242) DATASHEET BASIC INFORMATION BASIC_INFO_TABLE Country(ies) Project Name Mali Mali Governance of Mining Sector Project ID Financing Instrument Environmental Assessment Category Investment Project P164242 B-Partial Assessment Financing Financing & Implementation Modalities [ ] Multiphase Programmatic Approach (MPA) [✓] Contingent Emergency Response Component (CERC) [ ] Series of Projects (SOP) [✓] Fragile State(s) [ ] Disbursement-linked Indicators (DLIs) [ ] Small State(s) [ ] Financial Intermediaries (FI) [ ] Fragile within a non-fragile Country [ ] Project-Based Guarantee [✓] Conflict [ ] Deferred Drawdown [ ] Responding to Natural or Man-made Disaster [ ] Alternate Procurement Arrangements (APA) Expected Approval Date Expected Closing Date 20-Jun-2019 30-Jun-2024 Bank/IFC Collaboration No Proposed Development Objective(s) The objective is to strengthen the capacity of the mining sector to contribute to Mali’s medium-term growth and sustainable development objectives. Components Component Name Cost (US$, millions) Page 1 of 68 The World Bank Mali Governance of Mining Sector (P164242) Component A: Creating conditions for growth and diversification of the mineral sector 19.00 Component B: Strengthening Revenue Transparency and Governance 3.10 Component C: Maximizing the Local Development Impact of Mining 12.40 Component D: Contingency Emergency Response 0.00 Component E: Project Coordination 5.50 Organizations Borrower: Republic of Mali Implementing Agency: Ministere des Mines et du Pétrole PROJECT FINANCING DATA (US$, Millions) SUMMARY-NewFin1 Total Project Cost 40.00 Total Financing 40.00 of which IBRD/IDA 40.00 Financing Gap 0.00 DETAILS-NewFinEnh1 World Bank Group Financing International Development Association (IDA) 40.00 IDA Credit 40.00 IDA Resources (in US$, Millions) Credit Amount Grant Amount Guarantee Amount Total Amount National PBA 40.00 0.00 0.00 40.00 Total 40.00 0.00 0.00 40.00 Expected Disbursements (in US$, Millions) Page 2 of 68 The World Bank Mali Governance of Mining Sector (P164242) WB Fiscal Year 2019 2020 2021 2022 2023 2024 Annual 0.00 1.97 3.06 5.39 9.08 20.50 Cumulative 0.00 1.97 5.03 10.42 19.50 40.00 INSTITUTIONAL DATA Practice Area (Lead) Contributing Practice Areas Energy & Extractives Governance Climate Change and Disaster Screening This operation has been screened for short and long-term climate change and disaster risks Gender Tag Does the