Guinea - Mineral Sector Management Project

Document of The World Bank FOR OmCIAL USE ONLY ReportNo. 11621 PROJECT COMPLETION REPORT GUINEA MINERAL SECTOR MANAGEMENT PROJECT (CREDIT 1637-GUI) FEBRUARY 3, 1993 Industry and Energy Division Country Department I Africa Region 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 EOUIVALENTS 1/ Currency Unit = Syli (GS) US$1 = Syli 250 Sylis I = US$0.004 ABBREVIATIONS Association - International Development Association CA - Development Credit Agreement CBG - Compagnie des Bauxites de Guinee DNG - Natural Department of Geology DNM - Natural Department of Mines DNMG - Natural Directorate of Mines and Geology MPRN - Ministry of Planning and Natural Resources MRNEE 2/ - Ministry of Natural Resources, Energy and the Environment MRNE 3/ - Ministry of Natural Resources and the Environment PCR - Project Completion Report OBK - Office des Bauxites de Kindia FISCAL YEAR January 1 - December 31 I/ This exchange rate is being used for a specific number of foreign exchange transactions since September 30, 1985. Hence all costs have been converted using this rate. The official exchange rate at appraisal in February 1985 was US$1 = 4 sylis. 2/ Successor to MPRN, responsible for minerals. I/ Successor to MRNEE, responsible for minerals.  FOR OFFICIAL USE ONLY THE WORLD BANK Washington, D.C. 20433 U.S.A. Office of Director-General Operations Evaluation February 3, 1993 MEMORANDUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT SUBJECT: Project Completion Report on Guinea - Mineral Sector Management Proiect (Credit 1637-GUI) Attached is a copy of the report entitled "Project Completion Report on Guinea - Mineral Sector Management Project (Credit 1637-GUI)" prepared by the Africa Regional Office, with Part II contributed by the Borrower. The project appears to have had positive results in assisting the Guinean Government conduct negotiation with Compagnie des Bauxites de Guinea and to restructure the contract in such a way as to augment the export tonnages and fiscal revenues. Unfortunately this conclusion is not well supported by data in the PCR and we, therefore, consider the PCR in its current form as inadequate. The PCR also contains some data errors in the project cost tables. Part II of the report speaks of an underlying tension between the Bank and the borrower in the matter of consultation. The borrower complains that its working level staff were not sufficiently consulted in contract negotiations with the foreign consultants; nor were they fully integrated into the preparation of the project reports. The sustainability of this project is doubtful, especially in areas of management and project execution once technical assistance is terminated or the operating budget is depleted. The PCR should have included recommendations to ensure sustainability for the project benefits. The project is likely to form part of a cluster audit based on similar projects in Sub-Saharan Africa. Attachment 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.   FOR OFFICIAL USE ONLY PROJECT COMPLETION REPORT GUINEA MINERAL SECTOR MANAGEMENT PROJECT (CREDIT 1637-GUI) TABLE OF CONTENTS Page No. PREFACE ............................................. i EVALUATION SUMMARY .................................. iii PART I: PROJECT REVIEW FROM BANK'S PERSPECTIVE .... ....... 1 1. Project Identity .................................... 1 2. Background ...................................... 1 3. Project Objectives and Description ........................ 1 Project Objectives .................................. 1 Project Description ................................. 2 4. Project Design and Organization .......................... 3 5. Project Implementation ............................... 3 Credit Effectiveness and Project Start-Up ................... 3 Implementation Schedule .............................. 3 Procurement ..................................... 3 Project Costs ..................................... 3 Disbursements .................................... 4 6. Project Results .................................... 4 Physical Objectives ................................. 4 Environmental Impact ............................... 4 Financial Performance ............................... 4 7. Project Sustainability ................................. 5 8. Bank Performance .................................. 5 9. Borrower Performance ................................ 5 10. Bank/Borrower Relationship ............................ 6 11. Consultant Services ................................. 6 12. Project Documentation and Data .......................... 6 PART II: PROJECT REVIEW FROM BORROWER'S PERSPECTIVE ....... 7 1. Evaluation of Bank Performance and Lessons Learned .... ........ 7 2. Evaluation of Performance of the Borrower and Lessons Learned ................................ 7 PART III: STATISTICAL INFORMATION ........................ 9 1. Related Bank Loans and Credits .......................... 9 2. Project Timetable ................................... 10 3. Credit Disbursements ..................11........... i 4. Project Implementation ................ ............... 12 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.  TABLE OF CONTENTS (CONT'D) Pa2e No. 5. Project Cost and Financing ............ .. ............... 13 A. Project Costs ................................... 13 B. Project Financing ................................. 13 6. Project Results .................. .................. 14 A. Direct Benefits .................................. 14 B. Economic Impact ................................. 14 C. Financial Impact ................................. 14 D. Studies ....................................... 14 7. Status of Credit Covenants ........................... .. 15 8. Use of Bank Resources ............. .. ................ 18 A. Staff Inputs .................................... 18 B. Missions ...................................... 18  PROJECT COMPLETION REPORT GUINEA MINERAL SECTOR MANAGEMENT PROJECT (CREDIT 1637-GUI) PREFACE This is the Project Completion Report (PCR) for the Mineral Sector Management Project in Guinea for which Credit 1637-GUI in the amount of SDR 3.7 million, (equivalent to US$3.9), was approved on November 26, 1985. The Credit was closed on December 31, 1990, six months behind schedule. It was fully disbursed except for an amount of SDR 3,880.36, which was canceled. The PCR was prepared jointly by the Energy Division of Asia Technical Department (Preface, Evaluation Summary, Parts I and III) and by the Borrower (Part II). Preparation of the PCR was started during the Bank's final Supervision Mission in July 1991, and is based, inter alia, on the President's Report, supervision reports, legal documents, miscellaneous correspondence between the Bank and the Borrower and internal Bank memoranda.   - iii - PROJECT COMPLETION REPORT GUINEA MINERAL SECTOR MANAGEMENT PROJECT (CREDIT 1637-GUI) EVALUATION SUMMARY Objectives. The project objectives were to: (a) strengthen Guinea's capabilities to represent, as shareholder, its economic and commercial interests in ongoing and new proposed mining activities so as to maximize benefits from these operations; (b) improve the mining sector investment climate so as to accelerate mineral development, in particular the flow of exploration capital; and (c) increase the Government's efficiency in meeting these objectives (para. 3.01). Implementation. The Credit Effectiveness was delayed by almost a year due to the failure of the Government to publish promptly the Credit Agreement in the prescribed form. As a result the dated covenants on consultant selection and publication of the Investment Code became Conditions of Effectiveness. A waiver of the latter was granted (para. 5.01). Once the Credit was declared effective, it proceeded extremely well with the only minor delay in Closing being attributed to minor changes in the project scope together with associated technical problems (para. 5.02). Results. The objective of strengthening Guinea's capabilities to represent its economic and financial interest in ongoing and proposed new projects was completed and highlighted by the completion of new contractual arrangements for the Compagnie des Bauxites de Guinee (CBG). The exploration and training associated with the second objective of attracting new investment to Guinea was successfully achieved although the promotion of new projects to potential investors was handled poorly by the Government. The objective of reorganizing and strengthening the Ministry was only partly achieved (para. 6.01). Sustainability. Although the project succeeded in strengthening MRNE, given the absence of an annual budget, it is doubtful that MNRE will be able to sustain the improvements made during project implementation. However, the country has certainly gained substantially from the technical assistance and training components (para. 7.01). Conclusions and Lessons Learned. The Bank made a positive contribution to: (a) the management of the Government's shareholdings in the mining sector; (b) the identification and promotion of mineral potential; (c) the training of Guinean nationals; and (d) the reorganization and strengthening of the MRNE. In retrospect, however, the benefit of the project could have been enhanced by more careful project preparation, particularly in coordination with other donors, better project definition and stronger conditionality. Furthermore, it would have been more beneficial and effective, if the consultants had prepared their final reports in the field, in consultation with Guinean counterparts, instead of preparing them in their home country.   PROJECT COMPLETION REPORT GUINEA MINERAL SECTOR MANAGEMENT PROJECT (CREDIT 1637-GUI) PART I. PROJECT REVIEW FROM BANK'S PERSPECTIVE 1. PROJECT IDENTITY Project Name - Mineral Sector Management Project Credit No. - 1637-GUI RVP Unit - Africa Sector - Industry Subsector - Mining 2. BACKGROUND 2.01 Guinea has considerable mining resources, which are only in the early stages of full appraisal and exploitation. The industrial mining sector, consisting principally of bauxite and alumina production, plays an important role in the Guinean economy. In the years 1980- 1984, the formal mining industry generated 12-16 percent of GDP, 96-99 percent of export revenues and 26-33 percent of total Government revenues. In addition, the informal mining sector, essentially gold and diamond producers, are estimated to produce minerals valued at 10-25 percent of those produced by the formal mining industry. 2.02 In view of the current importance and future potential of the sector, the Government has developed a two-pronged strategy for the sector. The first strategic priority was to maintain the benefits derived from the bauxite and alumina subsector whose foreign exchange and tax contributions were of crucial importance. This priority required that the Government be responsive to the business proposals made by its foreign multinational partners in the mining companies, and at the same time effectively represent its own interests, a difficult and delicate task. The second strategic priority was to increase exploration work by the private sector, a precondition for eventually diversifying mineral production through implementation of new mining projects. 3. PROJECT OBJECTIVES AND DESCRIPTION 3.01 Project Obiectives. The project's major objectives were to: (a) strengthen Guinea's capabilities to represent, as shareholder, its economic and commercial interests in ongoing and new proposed mining activities so as to maximize benefits from these operations; (b) improve the mining sector investment climate so as to accelerate mineral development, in particular the flow of exploration capital. This objective required an expansion of the  geological data base and the establishment of an effective regulatory framework; and (c) increase the Government's efficiency in achieving the above two objectives, and in making them an integral part of Guinea's national program of administrative reform. 3.02 Project Description. The project consisted of the following four components: (a) Management of the Borrower's Shareholdings in mining companies. This component was to provide twenty-four staff-months of investment consulting services to assist DGMG in: (i) defining a new corporate strategy for the Office des Bauxites de Kindia (OBK) and in responding to various tax restructuring, marketing, staffing and productivity issues and proposals raised by CBG's foreign partners; and (ii) preparing a plan to restructure MIFERGUI and the proposed Mifergui Iron Ore Project at Mt. Nimba in southeast Guinea; (b) Exploration Promotion. This component was to focus on: (i) the development of new and the upgrading of old geological data for Guinea, and the design of an exploration program, concentrating on those minerals which can be marketed and which would not require major investments in infrastructure; (ii) execution of the exploration program identified in (i) above including, inter alia, mapping, trenching, pitting and sampling for those minerals, preparation of technical reports integrating new and old geological data, and establishment of a geological data center; (iii) preparation of exploration promotion packages for distribution to potential investors in the Borrower's mining sector; and (iv) acquisition of existing proprietary geophysical data; (c) Strengthening of Mining Services and Regulatory Control in MRNEE. The third component involved the services of a Resident Advisor for a period of two years to assist DGMG in fulfilling its regulatory functions, including : (i) reorganizing the mining inspection service and monitoring of mining activities being carried out by mining title holders; (ii) refurbishing and equipping of the DGMG laboratories; and (iii) Carrying out of a study to assess staffing needs and organization of tests of present mining staff in MRNEE to determine the level of qualifications and experience of each staff member; and (d) Training and Fellowships. The fourth component involved 8 staff- months of personnel consulting services to assess DGMD's staffing needs based on sector requirements, and to determine, through testing, the qualifications and experience of DGMG employees. This component also included: (i) on-the-job training and organization of seminars for DGMG staff on specialized aspects of mineral exploration and mineral prospect marketing; and (ii) fellowships to DGMG staff for short-term visits and training abroad.  - 3 - 3.03 In addition to the components outlined in the original project description, IDA assisted the Government in the establishment of a documentation center for the mineral sector, as agreed in an amendment to the Development Credit Agreement (DCA) dated September 7, 1988. 4. PROJECT DESIGN AND ORAGNIZATION 4.01 The project was to be implemented under the authority of MPRN over a three year period. A Guinean project administrator would be responsible for overall project coordination and the training programs. He would also manage the accounts of the project and the procurement and disbursement functions. 4.02 An investment bank was already retained under PPF funding (US$900,000 equivalent) to advise the Government of its shareholdings. Internationally recruited geology and mining consultants were to be recruited to assist with components (b), (c) and (d) of the project. They were required to work closely with the project administrator. 5. PROJECT IMPLEMENTATION 5.01 Credit Effectiveness and Project Start-up. Although Credit 1637-GUI was approved on November 26, 1985 and signed on April 8, 1986 it did not become effective until November 19, 1986. The delay was due principally to failure by the Government to publish the Credit Agreement in the prescribed manner and resulted in converting two dated covenants - consultant selection and promulgation of an Investment Code - into conditions of effectiveness. Consultant selection, originally required by July 31, 1986, (Section 3.02 (b) of the DCA) was completed in October 1986. IDA waived the promulgation of an Investment Code, as it had become a condition of the First Structural Adjustment Credit to Guinea. As a result of these delays, start-up of the geological and training work was also delayed for about six months, to March 1987. 5.02 Implementation Schedule. The project was originally scheduled to be completed by December 31, 1989. While the principal component of geological database acquisition and promotion, together with reorganization of the Ministry and training were completed essentially on schedule, the establishment of the documentation center delayed project closing by six months. This delay was caused by unanticipated geo-technical problems relating to the foundations of the Center. Following these initial delays in effectiveness, project implementation proceeded efficiently on schedule. 5.03 Procurement. Overall, procurement for services and goods during project implementation was acceptable. The selection of consultants was efficiently carried out within Bank guidelines. Delays in the procurement of goods usually due to the inefficiencies of Guinean suppliers rather than to slow evaluation and contract placement by MPNR. 5.04 Proiect Costs. The total project costs were estimated at appraisal to be about US$4.25 million of which US$3.86 million would be in foreign exchange. The project was essentially completed within the budgeted costs. No detailed breakdown of local costs is  - 4 - available but it is believed that, while they exceeded the budgeted Guinean francs, they were generally in line with the budgeted dollar equivalent sum. 5.05 Disbursements. The estimated disbursements of Credit 1637-GUI relative to actual disbursements are given in Part 111, Table C. After an initial delay in project start-up the rate of disbursement exceeded the appraisal estimate throughout the project. Total disbursement in US dollar terms exceeded the appraisal estimate by US$0.44 million when additional funding became available as a result of changes in the SDR to US dollar exchange rate. 6. PROJECT RESULTS 6.01 Project results varied in their success from one component to another. With regard to the management of the Government's shareholdings in mining companies the project was successful. The Project provided assistance which enabled the Government to restructure its contract with CBG in such a way that export tonnages of bauxite were augmented and fiscal revenues were preserved. While the likely additional revenues derived by the Government under the revised contract agreement have not been calculated, they very clearly exceed the total Credit amount several fold. At the same time, an analysis of OBK was completed and the restructuring of Government interests in the Mifergui Ore Project became the basis for future negotiations with potential foreign investors. The development of the geological data base/exploration promotion component had mixed results. The exploration program component was well designed and executed but the Government failed to undertake a legitimate promotion exercise. Instead of completing the exploration, negotiations were initiated with selected, poorly qualified investors during the exploration program. This approach to promotion has served the Government poorly, as negotiations are still not completed. The proprietary geophysical data was not acquired due to legal complications associated with its valuation. The reorganization and strengthening of mining services component also had mixed results. While monitoring of mining activities has improved, enforcement of legal obligations remains weak. Staff reductions took place but the testing/selection was apparently sub-optimal. (This program was not financed directly the Credit). The training and fellowships program was successful. Training seminars and on-the- job instruction by the consultants in Guinea was supplemented by the attachment of ten Guinean geologists for three months to the geological field parties of Canadian corporations working in Quebec. As a result, Guinean personnel were able to effectively continue the project after the departure of the consultants until such time as operating budgets were depleted. 6.02 Environmental Impact. The execution of the project did not entail any environmental issues, as disturbances of the surface such as test pits, trenches and line cutting, were very minor. 6.03 Financial Performance. As the project was a technical assistance project there are no directly measurable financial parameters. The project enabled the Government to maintain the benefit of its shareholdings in mining ventures and to maximize its fiscal revenue from CBG.  -5- 7. PROJECT SUSTAINABILITY 7.01 It is doubtful whether MRNE will be able to sustain the improvement in management and project execution following the termination of technical assistance and, perhaps more importantly, of the necessary foreign exchange funding for consumables and equipment. While the direct benefits to MRNE may deteriorate the more qualified personnel will continue to assist in the development of the mining sector either in MRNE or in the private sector. 8. BANK PERFORMANCE 8.01 Throughout the implementation of the project the Bank made a positive contribution to the management of Government shareholdings in mining operations and to the implementation of the major consulting contract for assistance to MRNE in the establishment of a geological database and promotional activities. However, in retrospect, the project could have been improved by: (a) better integration of project activities with the technical assistance being provided to MRNE by other multi-laterals and bi-laterals; (b) improved definition of the exact scope of technical assistance during project preparation. While the assistance provided valuable data and training to MRNE, supervision should have been intensified to maximize the benefits; and (c) stronger conditionality with regard to promotion activities and the administration of the existing mining concessions would have increased the benefits to the Government. 9. BORROWER PERFORMANCE 9.01 MRNE played only a minor role in project implementation and all project activities, with the exception of liaison with the management consultants, were carried out by the DNM under the guidance of the Project Manager. The Project Manager carried out his responsibilities in a competent and timely manner. Minor delays in project implementation were attributable to Guinean country difficulties including communication problems and the complexities of the port system. With regard to the promotion component MRNE failed to seek qualified investors, as had been anticipated, and continued to issue exploration concessions to "friends". Similarly a "clean-up" of the confused concession system had been anticipated under the Credit but this failed to happen because of political pressures. Table 7, Part III contains a review of the performance of the Borrower with respect to the legal covenants.  - 6 - 10. BANK/BORROWER RELATIONSHIP 10.1 The relationship of IDA with the Government and with MRNE officials directly involved in the project was good. Some difficulties were encountered at Credit Closing due to delays on the part of the Borrower in submitting final disbursement requests. 11. CONSULTANT SERVICES 11.01 Two extensive consultant contracts were provided under credit financing: one for investment banking management advisors and one for geological/mining consultants. The Bank was actively involved in supervising the consultants and their overall performance was considered technically satisfactory. The contract for the investment banking service was effective in assisting the Government but it is believed that the professional fees were excessive for the services rendered. Closer supervision by MRNE may have reduced the costs of what, by its very nature, was an open ended technical assistance contract. The geological/mining consultants did a good job especially with respect to the technology transfer and training aspects of the project. They were weaker than anticipated in assisting the Government to reorganize procedures in MRNE with respect the administration of mining rights. Although, overall consultant performance was satisfactory, it would have been more effective and beneficial to the Guineans involved, if the consultants had prepared their final report in the field, in consultation with their Guinean counterparts, instead of preparing the report in their home country. 12. Proiect Documentation and Data 12.01 The Credit Agreement and Project Agreement were adequate and appropriate for achieving project objectives, although additional conditionality may have improved the benefits to the Government. Various covenants provided opportunity for periodic review of progress of work up to that stage, before proceeding to the next stage. However, it was not possible to collect accurate data of local costs incurred by the Borrower.  - 7 - PROJECT COMPLETION REPORT GUINEA MINERAL SECTOR MANAGEMENT PROJECT (CREDIT 1637-GUI) PART II: PROJECT REVIEW FROM BORROWER's PERSPECTIVE 1. Evaluation of Bank Performance and Lessons Learned 1.01 The Bank staff, charged with supervising the project, were fully capable in undertaking their responsibilities with regard to the smooth implementation of the project without usurping those of the Borrower. The few problems encountered during the implementation of the project related mainly to the nonexecution or partial execution of certain tasks such as: (a) preparation and distribution of promotional brochures; (b) reorganization of the mines inspectorate; and (c) renovation and re-equipping of the laboratory of DNMG. It should be noted that the funds earmarked for these components were usefully reassigned to strengthen the other priority activities. It should also be noted that the shareholder management component resulted in the absorption of significant amounts of the credit with only a marginal participation by Guinean personnel. 1.02 The main lesson to be learned is that from the beginning Guinean working level staff should be consulted in contract negotiation to avoid interminable discussions with the consultant after contract signature. In addition, the consulting firm selected for project coordination must manage to maintain the expert staffing as long as possible to facilitate continuation of the work, especially in the field of training higher level Guinean staff. Furthermore Guinean staff should be more fully integrated into the preparation of project reports. 2. Evaluation of Performance of the Borrower and Lessons Learned 2.02 The performance of the institutions involved in the project was satisfactory except at the beginning of the project. After the training seminar and after a few months in the field considerable progress was made in project structure as well as in the performance of the staff.   - 9 - PROJECT COMPLETION REPORT GUINEA MINERAL SECTOR MANAGEMENT PROJECT (CREDIT 1637-GUI) PART III: STATISTICAL INFORMATION 1. Related Bank Loans and/or Credits There are no other credits related to this Credit.  - 10 - 2. Project Timetable Date Date Date Item Planned Revised Actual - Identification 10/83 Preparation 10/22/84 - Appraisal Mission 9/84 2/85 2/17/85 - Credit Negotiations 10/85 11/85 10/28/85 - Board Approval 12/85 1/86 11/26/85 - Credit Signature 2/86 3/86 4/8/86 - Credit Effectiveness 1/86 6/86 11/19/86 - Credit Closing 6/90 6/90 12/31/90 - Credit Completion 12/90 12/90 8/21/91  - 11 - 3. Cumulative Estimated and Actual Disbursements Fiscal Year 1986 1987 1988 1989 1990 1991 (US$ '000) Appraisal Estimate 0.90 1.53 2.98 3.62 3.86 3.86 Actual 0.00 2.24 3.32 4.18 4.30 5.07* Actual as 2 of Estimate 146 111 115 111 116 * Equivalent SDR 3.69 millions (SDR 3,880.36 was canceled) (Includes a final disbursement, equivalent to US$ 61,074 which was made, on an exceptional basis, on March 18, 1992.)  - 12 - 4. Project Implementation Indicators Appraisal Estimate Actual a. Management assis- To be completed Completed by tance for Govt. by December 1986. December 1986 shareholdings in OBK, CBG and Mifer- gui iron ore pro- ject. b. Exploration Promo- To be completed Completed by tion/Training by June 1989. December 1989 c. Regulatory Control To be completed Not completed with cofinancing as confinancing by July, 1988. not available. d. Reorganization of Plan to be Staff reduction General Directorate submitted to IDA completed in of Mines and by Dec., 1986 late 1988 Geology (DGMG). with reduction in staff by July 1987.  - 13 - 5. Project Cost and Financing (A) Project Costs (US$ million) Appraisal Estimate Actual Local Foreign Local Foreign Item Costs Exchange Total Cost Exchange Total 1. Shareholding - 0.90 0.90 - 1.12 1.12 Management 2. Exploration 0.24 1.78 2.02 0.28 -2.65 2.93 Promotion 3. Regulatory 0.07 0.38 0.45 0.11 -0.74 0.85 Control 4. Administrative - 0.14 0.14 - - - Reform 5. Contingencies 0.08 0.66 0.74 -- - TOTAL 0.39 3.86 4.25 - 0.39 4.51 (B) Project Financing Appraisal Estimate Actual Source Local Foreign Total Local Foreign Total IDA 1. Equipment - 0.49 0.49 - 0.36 0.36 2. Consultants Services - 1.98 1.98 - 2.94 2.94 3. Acquisition of Geophysical Data - 0.25 0.25 - -- 4. Training/Fellowships - 0.24 0.24 - 0.08 0.08 5. Refunding of PPF - 0.90 0.90 - 0.92 0.92 6. Civil works - - - - 0.21 0.21 Subtotal 0.00 3.86 3.86 0.00 4.51 4.51* Government 0.39 - 0.39 0.39 - 0.39 Total 0.39 3.86 4.25 0.39 - 4.90 * An equivalent of SDR 3,880.36 was canceled  - 14 - 6. Project Results (A) Direct Benefits No direct benefit in creation of jobs, increase in revenue, poverty alleviation were anticipated in President's Report. (B) Economic Impact No economic rate of return was calculated in the President's Report. (C) Financial Impact No financial rate of return was calculated in the President's Report. (D) Studies None undertaken or planned.  - 15 - 7. Status of Covenants Covenant Applicable Status Remarks 1. The Borrower shall appoint and CA 3.02(a) Yes The same satis- maintain at all times as project factory project administrator a Guinean national administrator whose experience and qualifica- remained in tions shall be satisfactory to place through- the Association; and who shall out the Pro- have primary responsibility for ject. coordinating all project activi- ties and training programs, supervising project procurement and withdrawal requests, and keeping and monitoring all project accounts. 2. The Borrower shall no later than CA 3.02(b) Yes Two consultants July 31, 1986 engage three con- completed the sultants to assist in carrying three tasks. out Parts A, B and C of the Pro- There was a ject in accordance with the pro- minor delay in visions of Section II of Sched- contracting the ule of this agreement. second con- sultant 3. The Borrower shall furnish the CA 3.02(c) Yes Association with the names and qualifications of the Guinean counterpart staff designated to work with the said consultants 4. The Borrower shall submit to the CA 3.03 Yes Detailed dis- Association for review and com- cussions were ment the results and recommenda- held with the tions of the studies referred to Association under Part A of the Project as soon as they become available.  - 16 - 5. The Borrower shall: (a) not CA 3.04 Not complied This component later than December 31, 1986. of the Project Submit for the Association for was completed its approval the study referred outside the to in Part C(3) of the Project Project with and a plan for the rationaliza- bilateral fund- tion of the mining staff in ing as part of MRNEE; and (b) thereafter carry overall civil out said plan in accordance with service reform a time-table acceptable to the Association. 6. The borrower shall not carry out CA 3.05 Yes Detailed Parts B(2) and (3) respectively, reports were of the Project before the Asso- submitted to ciation shall have approved the the Association results and technical conclu- for review and sions of activities carried out comment under Parts B(1) and B(2) respectively of the Project. 7. Before awarding any fellowship CA 3.06 Yes under Part D of the Project, the Borrower shall furnish to the Association for its approval the qualifications of the candidates for such fellowship and the pro- gram of studies to be followed by them. 8. The Borrower shall make its geo- CA 3.07 Yes logical data available to inter- ested parties at a modest fee calculated to cover only the reproduction costs of such data 9. The Borrower shall take all the CA 3.08 Not complied The Association necessary measures to ensure waived the that a new investment code sat- covenant isfactory to the Association is promulgated not later than June 30, 1980. 10. The Borrower shall maintain or CA 4.01(a) Yes cause to be maintained separate accounts adequate to reflect in accordance with sound account- ing practices the operations, resources and expenditures in respect of the Project of the departments or agencies of the Borrower for carrying out the Project or any part thereof.  - 1 7 - 11. The Borrower shall have the CA 4.01(b)(i) Yes Independent accounts referred to in para- auditors were graph (a) of the section retained including Special Account for each fiscal year audited, in accordance with appropriate auditing principles consistent- ly applied by independent audi- tors acceptable to the Associa- tion. 12. The Borrower shall furnish to CA 4.01(b) No Audit reports the Association, as soon as (ii) usually about possible, but in any case not three months later than six months after the overdue when end of each such year, a certi- received fied copy of the report of each such audit by said auditors of such scope and in such detail as the Association shall have reasonably requested. 13. The Borrower shall furnish to CA 4.01(b) Yes the Association such other in- (iii) formation concerning the said accounts and the audit thereof and said records as the Associ- ation shall from time to time reasonably request  - 18 - 8. Use of Bank Resources (A) Staff Inputs (Staffweeks) Stage of Project Cycle Planned Revised Final Through Appraisal NA NA 63.4 Appraisal through Board Approval NA NA 5.1 Board Approval Through Effectiveness NA NA NA Supervision 15/a 15/a 48.6 /a FY91 only. No earlier data available. (8) Missions Stag. of Month/ Number of Days Specification Porforming Rating Types Project Cyclo Year Persons in fiold Roprosonted /a Status Lb Problem /c 1. Through Appraisal 11/83 2 6 F E - - 10/84 4 21 F GGM - - 2/85 2 10 FG - - 2. Appraisal through Board Approval 0/86 2 5 F G - - 3. Board Approval Nil Through Effectiveness 4. Supervision I 1/87 3 10 F C E 1 II 8/87 2 8 G E 1- III 3/88 1 0 G 1- IV 7/89 1 2 G 1- V 10/89 1 2 G 1- VI 10/90 2 2 G E 1- VIIS 7/91 2 2 G E 2M /a Koy to Specialization: F-Financial Analyst, G-Goologist, M-Mining Engineer, E-Economiat. b Key to Status: 1 - Problem Free or Minor Problems, 2 - Moderate Problems, and 3 - Major Problems. /c Key to Types of Probloms: F - Financial, M - Managerial, and T - Technical. /d Supervision combined with othor tasks - estimated allocation of days for this task.