The World Bank Report No: ISR9773 Implementation Status & Results Congo, Democratic Republic of DRC-Growth with Governance in the Mineral Sector (P106982) Public Disclosure Copy Operation Name: DRC-Growth with Governance in the Mineral Sector Project Stage: Implementation Seq.No: 4 Status: ARCHIVED Archive Date: 24-Mar-2013 (P106982) Country: Congo, Democratic Republic of Approval FY: 2011 Product Line: IBRD/IDA Region: AFRICA Lending Instrument: Technical Assistance Loan Implementing Agency(ies): Key Dates Board Approval Date 01-Jul-2010 Original Closing Date 15-Dec-2015 Planned Mid Term Review Date 25-Mar-2013 Last Archived ISR Date 29-Oct-2012 Effectiveness Date 19-Oct-2011 Revised Closing Date 15-Dec-2015 Actual Mid Term Review Date 02-Dec-2013 Project Development Objectives Project Development Objective (from Project Appraisal Document) To strengthen the capacity of key institutions to manage the minerals sector, improve the conditions for increased investments in and revenues from mining, and help increase the socio-economic benefits from artisanal and industrial mining in Project areas. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Ensure Access to Resources 31.10 Build Sector Management Capacity 24.60 Enhance Transparency and Accountability 5.40 Build Up Sustainable Development Settings 17.70 Project coordination and management 11.20 Public Disclosure Copy Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Implementation Status Overview Although the project became effective in October 2011, implementation did not start until February 2012. Agreement has been reached between the Bank and DFID, which is Page 1 of 9 The World Bank Report No: ISR9773 providing co-financing to jointly fast track implementation. Disbursements projections have been updated by both institutions to reflect the late start-up. The detailed 2012-2013 Work Plan is on track, which now better reflects activity priorities within the current political environment of the DRC (i.e. refocus on the conflict minerals agenda, revision of the mining code, giving priority to improving institutional mining governance, fostering reforms in the management of ASM activities). Actual achievements to date include: (i) the first phase of the institutional audit completed; (ii) provision of assistance to traceability mechanisms through equipment and logistical support; (iii) financing Civil society and logistical support to Public Disclosure Copy Government participation in the Revision of the Mining Code; (iv) the completion of baseline surveys for the mining sector; (v) start-up of the Belgium MRAC geo-scientific data collection; (vi) start-up of the SESA study; and (vii) establishing priority programs for training of civil society representatives in monitoring mining sector activities. The Bank's monitoring of the review process as regards to the Mining Code is on-going, with the international consultant due to begin in May 2013. Locations Country First Administrative Division Location Planned Actual Congo, Dem Rep Province du Sud-Kivu Province du Sud-Kivu Congo, Dem Rep Province du Katanga Province du Katanga Congo, Dem Rep Province du Nord-Kivu Province du Nord-Kivu Congo, Dem Rep Province du Kasai-Oriental Province du Kasai-Oriental Congo, Dem Rep Province du Kasai-Occidental Province du Kasai-Occidental Congo, Dem Rep Province Orientale Province Orientale Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Performance of key institutions Text Value The existing framework is Weaknesses and gaps in Improved framework poorly enforced existing framework, and level effectively enforced of enforcement identified Date 30-Apr-2010 30-Sep-2013 15-Dec-2016 Comments The institutional audit is on- going. Public Disclosure Copy Status of transparency and accountability Text Value Very little availability of data. DRC meets EITI targets for EITI process remains on track mechanisms debate largely dependent on reporting, and the NGO reports or poor quality Accountability Platform media reporting. Little concept fully articulated. informed public debate. Date 30-Apr-2010 01-Mar-2013 15-Dec-2016 Comments DRC Government published Project accountability platform EITI report for 2010 in concept evaluated and January 2013. Government Page 2 of 9 The World Bank Report No: ISR9773 convened a national decision over its future conference on transparency beyond the project agreed and governance in the mining sector held in Lumbubashi in Public Disclosure Copy January 2013. Conference agreed to principle of a national accountability platform with government participation. Private investment in the mining sector Percentage Value 23.00 33.00 30.00 Date 30-Apr-2010 01-Mar-2013 15-Dec-2016 Comments 23 investments > 10 MUSD in The current review of the 25% increase over baseline Copperbelt mining code has slowed down investor's interest. This situation is expected to prevail at least the review is finalized. Fiscal revenues from the mining sector Number Value 75.00 100.00 300.00 Date 30-Apr-2010 01-Mar-2013 15-Dec-2016 Comments 100 MUSD USD 384 million realized in 2012. Working and living conditions of mining Text Value Very limited availability of 1-2-3 Survey completed. Detailed indicators, baseline, communities data. Reports on specific sites milestones and target will be suggest that:20% of diggers established as part of project in Kolwezi (Katanga) are monitoring system10 children, (including household 40% of people involved in consumption in targeted ASM (including support mining communities) actvities) are women, Biannual project reporting On average, copper & cobalt diggers in Katanga earn $100-$120 per month. Detailed indicators, baseline, milestones and target will be Public Disclosure Copy established as part of project monitoring system10 (including household consumption in targeted mining communities) Date 30-Apr-2010 30-Apr-2013 15-Dec-2016 Comments A provisional set of sub- Security in project areas is indicators have been maintained developed, collected and in process of analysis in the Page 3 of 9 The World Bank Report No: ISR9773 1-2-3 survey reports. These will be added as sub- indicators and will be tracked once the 1-2-3 results are Public Disclosure Copy finalized (April 2013). Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target The geodesic network Text Value 35 reference points Detailed plan for national Geodesic network covers the coverage developed. whole country with adequate density Date 30-Apr-2010 30-Jun-2014 15-Dec-2016 Comments International firm hired and work has commenced as of January 2013. Activity in progress Availability of geological information for the Text Value Existing data scattered and Contract for design of Upgrades to the geodesic country incomplete geological database awarded system and national geological database can be carried out within reasonable budget Date 30-Apr-2010 01-Mar-2013 15-Dec-2016 Comments Activities commenced. Communication and information flow within the Text Value Ministry's communications Accountability platform Ministry organizes at least 4 sector including consultations with civil society with stakeholders in concept fully articulated. communications events government, the private Platform being created. including a national sector and civil society roundtable discussion on the unplanned and ad hoc which future directions of the sector hampers the development of a coherent vision for the future of the sector Date 30-Apr-2010 30-Sep-2013 15-Dec-2016 Public Disclosure Copy Comments Government convened a Will effectively begin during national conference on FY13. transparency and governance in the mining sector held in January 2013. Conference agreed to principle of a national accountability platform with government participation. Page 4 of 9 The World Bank Report No: ISR9773 The revision of the mining code incorporates Text Value International mediation New mining code adopted the key stakeholder perspectives (government, incorporates the three and disseminated in at least civil society and private sector) (Indicator not in position papers adopted by 25 communities per project the original PAD) government, civil society and target province Public Disclosure Copy private sector Date 30-Nov-2013 15-Dec-2015 Comments Selection of international International consultant's consultant firm well underway inputs are taken into at present. Consultant to consideration in the begin in May for a period of 5 Government's final version months. Presence and capacity of CAMI (Mining Titles Text Value No functional CAMI 1 CAMI provincial office fully Fully-functioning CAMI Regsitry) operations at provincial level functional. operations at national level and in target provinces Date 30-Apr-2010 01-Mar-2013 15-Dec-2016 Comments CAMI functional in Katanga Province. Capacity and performance of SAESSCAM Text Value SAESSCAM presence and National plan for SAESSCAM Reports from Ministry of (Government Service to Support Artisinal capacity weak and not restructuring developed Mines and SAESSCAM, Miners) fulfilling its remit to provide Consultancy Reports support services to artisinal Discussions with SAESSCAM miners staff, NGOs, local communities, artisanal miners during Supervision Project Monitoring Reports Date 30-Apr-2010 31-Mar-2014 15-Dec-2016 Comments Design of plan is still underway and will rely in part on the institutional audit before finalization. The vision of the beneficiary public institutions is still weak in its Public Disclosure Copy articulation Status of technical and professional training Text Value Technical institutes in Improvement plan for Technical institutes in institutes and programmes in Katanga Katanga are run down and technical institutes and Katanga providing competent their programmes are not university programmes workforce for mining adapted to modern industry developed and agreed. operations requirements Significant increase in local hire versus expatriates by mining companies Training centres can be Page 5 of 9 The World Bank Report No: ISR9773 upgraded within reasonable budget Date 31-Mar-2014 15-Dec-2016 Public Disclosure Copy Comments International firm in final contract negotiation with PROMINES with activity commencement in April 2013, targeting Katanga only. Production of EITI reconciliation reports for Text Value Government and mining The EITI Multi-stakeholder EITI process remains on track increased transparency of mining sector sector companies provide group (MSG) validates its necessary information for 201) (3rd) EITI Report for cobalt and copper for EITI DRC. reconciliation report for FYs 2008 and 2009; ie. production of 1st EITI report for DRC Date 30-Apr-2010 01-Mar-2013 15-Dec-2016 Comments Report was validated by MSG Transparency in reporting and made public in January revenues generated from EI 2013. activity improves Status of tax collection framework for mining Text Value Multiple legal taxes - not Inventory of mining sector Effective measures are taken sector consistently applied; related taxes (formal and to tackle corruption at all numerous additional informal) and procedures for levels 'unofficial' taxes also applied payment. Roles and responsibilities can be clarified between agencies and between central & provincial governments. Collaboration with Ministry of Finance is good Date 30-Apr-2010 30-Oct-2014 15-Dec-2016 Comments Study on Institutional Audit Public institutions have and flow of Fiscal revenues improved significantly on the and tax to commence during flow of fiscal revenues for Public Disclosure Copy 2013. greater transparency and development impact of EI activities Monitoring of social and environmental impacts Text Value Social and environmental SESA carried out in 4 target Environmental management of industrial mining activities involving the impacts of mining activities provinces with 6 public and community participatio participation of local communities not well understood and consultations held. n in mining sector; Political managed will for reform exists at national, provincial and local levels Complementary reforms and investments in social sectors, Page 6 of 9 The World Bank Report No: ISR9773 infrastructure & SSR are carried out Date 30-Apr-2010 20-Dec-2013 15-Dec-2016 Public Disclosure Copy Comments SESA commenced. Formalization of artisanal mining Text Value Poor conditions (economic, Successful implementation of Conditions in designated social, health and safety, at least two pilots projects for mining sites improved. security, etc) in designated improving work and living artisanal mining sites; conditions of artisanal miners Proportion of registered production for gold is between 2% and 10% in 2008 (various sources) Date 30-Apr-2010 30-Sep-2013 15-Dec-2016 Comments Call for proposals launched and minimum of 5 pilots to commence in May 2013. M&E framework established Text Value No M&E framework M&E Framework designed Suitable M&E infrastructure and baseline data uploaded can be created Sufficient collaboration from governmental and no- governmental stakeholders can be secured Sufficient access to project sites can be secured Date 30-Apr-2010 31-May-2013 15-Dec-2016 Comments Final stages of set-up M& E M& E system is operational database completed. Upload and accessible. of 1-2-3 Survey results starting in April 2013. Availability of household economic data for Text Value Non-existent Mining areas covered in 1-2-3 1-2-3 surveys will be carried mining areas Survey (both industrial and out as planned artisanal) Public Disclosure Copy Date 15-Apr-2010 30-Sep-2013 15-Dec-2016 Comments INS is finalizing data analysis and structuring of final report on mining areas. These will be added as sub-indicators and will be tracked once the 1-2-3 results are finalized. Data on Financial Performance (as of 11-Mar-2013) Page 7 of 9 The World Bank Report No: ISR9773 Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P106982 IDA-H5890 Effective 01-Jul-2010 21-Jul-2011 19-Oct-2011 15-Dec-2015 15-Dec-2015 Public Disclosure Copy P106982 TF-10744 Effective 17-Oct-2011 17-Oct-2011 19-Oct-2011 31-Aug-2015 31-Aug-2015 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P106982 IDA-H5890 Effective USD 50.00 50.00 0.00 4.43 45.58 9.00 P106982 TF-10744 Effective USD 39.46 39.40 0.00 1.97 35.75 5.00 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation The Government has renewed its commitment to improving governance in the mining sector of DRC through High level declarations undertaken at the recent and first governance conference held in Lubumbashi (end of January 2013). The Bank alongside the international community will watch closely progress made to that effect, including through careful selection of PROMINES project activities that mostly targets an improved development impact at the national level (including in Provincial areas targeted by the project). Restructuring History There has been no restructuring to date. Related Projects Page 8 of 9 The World Bank Report No: ISR9773 There are no related projects. Public Disclosure Copy Public Disclosure Copy Page 9 of 9