Document of The World Bank

Report No: 31518

IMPLEMENTATION COMPLETION REPORT(PPFI-P9110 PPFI-P9111 IF-N0290 PPFI-P7840)

ON A

CREDIT

IN THE AMOUNT OF US$20.14 MILLION

TO

BURKINA FASO

FOR A

MINING SECTOR CAPACITY BUILDING AND ENVIRONMENTAL MANAGEMENT PROJECT

June 28, 2005

Oil, Gas, Mining and Chemicals Department (COCPD) AFC15AFRICA REGION

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CURRENCY EQUIVALENTS

(Exchange Rate Effective December 2004)

Currency Unit = CFA Franc I CFA Franc = US$ $0.02

US$ 1 = 500 CFA Franc

FISCAL YEARJanuary 1 December 31

ABBREVIATIONS AND ACRONYMS

BDSME Base of Sector Data on Mines and Environment BUMIGEB Bureau of Mines and Geology of Burkina FasoCAS Country Assistance StrategyCBMP Syndicate for the Precious Metals of Burkina Faso CDM Mining Resource CenterCONAGESE National Council for the Management of Environment CONEDD National Council for the Environment and the Durable Development DEE Directorate of the Environmental Evaluations DGI Directorate General of TaxationDGD Directorate General of CustomsDGMGC Directorate General of Mines and Geology and QuarriesDRIE Directorate of the Regulation and Environmental InspectionsDSE Directorate for Ecological Surveillance EIS Environmental Information SystemENAREF National School for Financial AdministrationENIGME Space for Navigation and Information in Geology, Mines and EnvironmentGPS Global Positioning SystemMEF Ministry of Economy and FinanceMECV Ministry of Environment and Quality of LifeMCE Ministry of Mines, Quarries and EnergyNEAP National Environmental Action PlanNGO Non-Governmental OrganizationPANEEDD National Action plan of Environmental Education for the Durable DevelopmentPIU Project Implementation UnitPNGIM National Programme of Information Management on MediaQAG Quality Assurance GroupSNIE National System of Information on Environment SNIST National System of Earth Science InformationSOFAPIL Battery Company of Burkina FasoSONABEL National Electricity Company SOREMIB Research Society for Mineral Exploitation

Vice President: Gobind T. NankaniCountry Director A. David CraigSector Manager Peter van der Veen

Task Team Leader/Task Manager: Craig B. Andrews

BURKINA FASOMINING CAPACITY BUIL

CONTENTS

Page No.1. Project Data 12. Principal Performance Ratings 13. Assessment of Development Objective and Design, and of Quality at Entry 14. Achievement of Objective and Outputs 55. Major Factors Affecting Implementation and Outcome 126. Sustainability 137. Bank and Borrower Performance 148. Lessons Learned 169. Partner Comments 1810. Additional Information 18Annex 1. Key Performance Indicators/Log Frame Matrix 19Annex 2. Project Costs and Financing 25Annex 3. Economic Costs and Benefits 28Annex 4. Bank Inputs 29Annex 5. Ratings for Achievement of Objectives/Outputs of Components 30Annex 6. Ratings of Bank and Borrower Performance 31Annex 7. List of Supporting Documents 32Annex 8. Borrower's Evaluation Report 33Annex 9. Selected Photos of Artisanal Mining 45

Project ID: P000283 Project Name: MINING CAPACITY BUILTeam Leader: Craig B. Andrews TL Unit: COCPOICR Type: Core ICR Report Date: June 28, 2005

1. Project DataName: MINING CAPACITY BUIL L/C/TF Number: PPFI-P9110; PPFI-P9111;

IF-N0290; PPFI-P7840Country/Department: BURKINA FASO Region: Africa Regional Office

Sector/subsector: Central government administration (80%); Mining and other extractive (20%)

Theme: Other financial and private sector development (P); Environmental policies and institutions (P)

KEY DATES Original Revised/ActualPCD: 12/15/1990 Effective: 04/28/1998

Appraisal: 01/18/1996 MTR: 05/16/2000 05/16/2000Approval: 06/30/1997 Closing: 12/31/2002 12/31/2004

Borrower/Implementing Agency: GVT OF BURKINA/MINISTRY OF ENERGY AND MINESOther Partners:

STAFF Current At AppraisalVice President: Gobind T. Nankani Jean-Louis SarbibCountry Director: A. David Craig Serge MikhailofSector Manager: Peter A. van der Veen Peter A. van der VeenTeam Leader at ICR: Craig B. Andrews Craig B. AndrewsICR Primary Author: Craig B. Andrews; Sati Achath;

Madhu Nair

2. Principal Performance Ratings

(HS=Highly Satisfactory, S=Satisfactory, U=Unsatisfactory, HL=Highly Likely, L=Likely, UN=Unlikely, HUN=Highly Unlikely, HU=Highly Unsatisfactory, H=High, SU=Substantial, M=Modest, N=Negligible)

Outcome: S

Sustainability: L

Institutional Development Impact: SU

Bank Performance: S

Borrower Performance: S

QAG (if available) ICRQuality at Entry: S

Project at Risk at Any Time: No

3. Assessment of Development Objective and Design, and of Quality at Entry

3.1 Original Objective:

Beginning in the late 1980s, following the period of the revolution (1983-1987), Burkina Faso adopted the strategic course of liberalizing its economy, encouraging private investment, and reforming the highly “command and control” laws and regulations of the previous regime. This trend accelerated during the 1990s and Burkina Faso’s Country Assistance Strategy (CAS) of the period clearly indicates the decision of the Bank and the government to encourage private sector investment. The early 1990s also coincided with a period of high gold prices, liquidity in the international risk capital markets, and the recognition by international mining companies that many countries in Africa offered highly prospective virgin exploration territory. As a result, many companies visited Burkina and applied for exploration licenses. At the same time, many thousands of artisanal miners started to exploit surface and alluvial deposits of gold, all in abominable social, environmental, and social conditions. The government recognized that development of a sustainable mining sector offered good opportunities to stimulate growth and diversify the economy. However, the interest by the international private sector and the rampant artisanal mining simply overwhelmed the government’s capacity to cope. The mining law was a hodge-podge of French colonial legislation amalgamated into an overall land law which effectively restricted private ownership and concession arrangements. Tax laws and regulations were highly punitive. Government institutions lacked the logistical and human resources to respond to the applications and to monitor work commitments. A state monopoly purchased gold from the artisans at approximately 75% of the world market price which simply encouraged clandestine exports of the commodity. It was within this context that the government requested the assistance of the Bank to prepare the present project.

The original objectives of the US$22.5 million project (Credit US$21.4 million) were to help establishing an enabling environment to: (i) promote private investment in mining and to ensure real and sustainable contribution to economic growth; (ii) strengthen public and private sector capacity to effectively administer regulations and to monitor sector developments; (iii) establish capacity in the country for environmental management; (iv) stimulate private sector response to the growing need for a variety of mining and environment-related technical goods and services; and (v) identify and adopt appropriate mechanisms to facilitate the development of small scale mines and to improve the social, health, and environmental conditions of artisanal miners.

The objectives were clear and realistic in scale and scope. They were important to the country’s economic and social development, considering that the mining sector in Burkina Faso is a potential source of growth for the economy, and can contribute to economic development through increased export earnings and tax revenues. Moreover, any mines to be developed by the private sector would be located in remote rural areas. These would have significant spin-off effects and stimulate economic development in the communities where they operate. The objectives were also timely, appropriate, and responsive to borrower circumstances and development priorities, as has been made clear in the previous paragraph.

The project took into account lessons learned from previous Bank-assisted projects in Burkina Faso which showed that: (i) political instability was a cause of poor implementation; (ii) strong ownership and commitment at the highest political levels to the project's objectives, activities and implementation are essential for success; (iii) a broad consultative participatory process used in designing and preparing projects helps to build ownership of various constituencies; (iv) institutional instability and unclear lines of authority among government departments are hindrances to effective implementation; (v) frequent changes in project personnel, caused in part by the political turbulence as well as poor management skills, point to the necessity of retaining capable and dynamic project staff; and (vi) procurement problems and lack of familiarity with Bank procedures affect project implementation.

The project envisioned the following actions to produce social and environmental benefits: (i) establishing regulations and strengthening government institutions to help attract and sustain a level of mining

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investment that could lead to increased yearly gold production of 10-15 tonnes of gold from the existing one tonne, over a ten year period: (ii) funding expert technical assistance would help the government to avoid mistakes in dealing with private companies which could result in costly litigation or forgone revenues at a later date; (iii) helping strengthen tax assessment and collection procedures for statutory royalties, license fees, income, dividend, and other direct and indirect taxes which could, together with the suppression of the monopoly on gold exports, yield $25-30 million in fiscal receipts yearly, up from approximately $100,000; (iv) helping establish to put into place environmental regulations, procedures, and monitoring capacity to minimize damage to the environment and the health of rural Burkinabe from large, small and artisanal mining operations; and (v) providing training and extension services to support the development of small-scale mining as well as to help improve social, health, safety and environmental conditions in the artisanal mining community.

The following two risk factors which could affect project implementation were taken into account while designing the project:

• Backsliding by the government on certain commitments to reform. To mitigate this risk, the government's commitment to reform was obtained through monitoring indicators which the government itself had proposed. These indicators were agreed to by the Bank and were part of the legal covenants pertaining to the Credit. Care was also taken during project preparation, through extensive policy dialogue between government officials and the private sector, to build commitment for sectoral reforms within the wider political and economic liberalization process.

• Limited absorptive capacity to implement the project in an effective manner. In order to minimize this risk, one of the goals of the project was the development of human skills in both the public and private sectors. The technical assistance was phased and prioritized to avoid overburdening relevant government departments, and international consultants were to work alongside local counterparts.

The project implementation was fairly demanding for both the Borrower and the Bank, because of the need to conduct numerous activities at the same time, some of which were related to policy issues requiring substantial dialogues among the government departments, and also between the government and civil society, and outside parties such as investors. The project was also reasonably complex because of the need to be comprehensive in the overall sector reform and also because many of the activities were inter-related.

3.2 Revised Objective: The objectives were not revised.

3.3 Original Components:

The project consisted of four components, all directly related to achieving the project’s objectives. In the beginning of the project, the Ministry of Mines, Quarries and Energy (MCE) lacked sufficient technical, administrative and financial capacity for successful implementation of these components. However, the Project Implementation Unit (PIU) compensated for the Ministry’s limitations.

Following is a description of each one of the project’s components. Each of the components was designed to be mutually reinforcing; that is, there are inherent synergies which cross over the defined boundaries of each component in such as way as to enhance effectiveness.

Component 1: Regulatory and Fiscal Framework and Training (US$4.7 million: 21% of the total

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project cost)

This component supported the following activities: (i) preparing mining regulations; (ii) strengthening legal skills and negotiating capabilities; (iii) improving administration of the fiscal regime applicable to mining; (iv) building sustainable capacity in applied mining taxation through special training modules at the National School of Finance Management; and (v) providing continued training in mining law and environment..

Component II: Institutional Strengthening and Resources Management (US$7.0 million:31.1% of the total project cost)

This component consisted of the following activities: (i) operationalizing the roles and improve internal management procedures of key sector institutions: MCE, BuyingPrecious Metals of Burkina Faso (CBMP - Comptoir Burkinabe des Metaux Precieux) ; Bureau of Mines and Geology of Burkina Faso (BUMIGEB); (ii) restructuring the geo-services currently offered by BUMIGEB; (iii) improving cadastre and mining title management services at MCE; (iv) establishing and sustaining an environmental unit within MCE; (v) up-grading and improving the geology database, including the creation of a National System of Earth Science Information (ENIGME); and (iv) reinforcing the technical capacities of BUMIGEB to assay and test minerals.

Component III: Environmental Management (US$3.0 million:13.3% of the total project cost)

This component aimed to help: (i) establishing capacity for monitoring compliance with regulations by strengthening the relevant institutions; (ii) assisting in the preparation of specific environmental regulations and monitoring procedures in the mining sector; (iii) establishing a national environmental information system and database (EIS); (iv) designing and implementing a national environmental sensitization and awareness campaign; and (v) providing training in areas of environmental policy formulation, monitoring, and management.

Component IV: Small Scale and Artisanal Mining (US$4.2 million:18.6% of the total project cost).

This component supported programs for: (i) studying the socio-economic, geology and environmental specifics of artisanal and small scale mining with a view to determining a strategy, including appropriate delivery mechanisms, for providing extension services; (ii) subject to a positive feasibility study, establishing a pilot training center for small scale miners, with the possibility to expand to two additional centers in the event the pilot program is successful; (iii) supporting the Directorate of Small Scale Mining Promotion within the MCE to design and deliver technical advice, geology information, and extension services to small-scale miners; (iv) assessing mechanisms to evaluate financing proposals of small-scale mining operators; (v) promoting the identification, development and dissemination of small-scale mining equipment through private sector delivery mechanisms; (vi) implementing in coordination with the MCE, an environmental sensitization and awareness campaign in the artisanal mining communities.3.4 Revised Components:

The components were not revised.

3.5 Quality at Entry:

There was no official assessment of the quality at entry by the Quality Assurance Group (QAG). The ICR considers the quality at entry to be satisfactory.

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As mentioned in Section 3.1, the project objectives were consistent with the government priorities and met the critical needs of the country’s mining sector. Since PIU had the technical capacity, the quality of project design was generally adequate to meet the project’s objectives. During preparation of the project, major risk factors and lessons learned from other earlier Bank-supported projects in Burkina Faso were considered and incorporated into the project design. A broad-based participatory approach emphasized the role of a ‘working group’ composed of senior representatives of relevant government departments and the private sector.

For procurement activities, the Government had been exposed to the Bank's Guidelines and Procedures through PPF implementation. Procurement Plan was in place for the first year of implementation. PIU was well staffed; the Director General of Mines and Geology was assigned as Project Supervisor (SP) responsible for the supervision of the project for the Ministry. A local Project Chief (CP) possessing experience and qualifications acceptable to IDA was recruited for the day-to-day management of the project as a condition for effectiveness.

However, in retrospect it could be argued that smooth implementation was slowed down due an overly complicated project management structure involving too many organizations: the Ministry of Mines, Quarries and Energy (MCE), the Ministry of Environment and Quality of Life (MECV), a Steering Committee, the Director General of Mines and Geology (DGMG) as supervisor of the project, a “Chief of Component” for each component, and a PIU which was composed of three officials and additional staff responsible for the day-to-day activities. Instead, a simpler structure with PIU as an autonomous unit reporting directly to the Minister of MCE and the Steering Committee would have been more effective in implementation.

4. Achievement of Objective and Outputs

4.1 Outcome/achievement of objective:

Satisfactory. Overall, the outcome of the project objectives was satisfactory. Although the full impact of the project will be more visible only in the medium and long terms, even in the short term, the project has demonstrated many achievements as highlighted in the table below. As noted above, shortly after effectiveness of the project there was a significant downturn in the gold price and the departure of many companies then exploring in Burkina. The speculative bubble of the mid-1990s had led to an overestimation during project preparation of the amount of exploration expenditures that could be sustained in the country. During the boom years it was erroneously estimated that US$25 million was being spent annually, though subsequent investigation revealed that the amounts actually spent were on the order of US$13-16 million. In order to more accurately reflect the reality of the exploration expenditures and to take into account the downturn in the gold price the government, in consultation with the Bank, corrected the performance indicator related to exploration in June, 2002. By 2004, with the combination of an increases gold price together with the reforms to the enabling environment, exploration expenditures by private companies were running at around US$10 million, and projections for 2005 indicate at least US$15 million. The government is now better prepared because of the project to not only monitor these increasing exploration expenditures but also to sustain them.

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Development Objective and Indicators

Development Objective and Indicators

Original Baseline(Actual 1997-99)

Target Actual

Regulatory: (i) Exploration expenditure (US$ Million/year)

13-16 3-7 5-15

(ii) Establishment of new industrial mines

0 1 3

(iii) Private gold buying offices

0 2 3-4

Small mines: (i) New investment in small mines

0-1 1-2 7-10

(ii) Sites sensitization 0-3 8 20+Environment:(i) Report on environment 0 1 1(ii) Number of site inspections

2 2 10-15

Economic:(i) Private local consultants

0-3 9-10 12-15

(ii) Sector jobs 1000 1000 3600Gold Production 1 tonne 0.5 tonne 5 tonnes

The major outcomes and achievements of the project are as follows:

(i) Improving the enabling environment for private sector investment. Substantial progress was made to achieve this objective. For example, the expenditure of exploration increased from US$3.0 million in 2003 to US$8.5 million in 2004 and forecast US$15 million in 2005. It is estimated that, by end 2006 Burkina will be producing around five metric tonnes of gold per annum, through the operation of three new private sector mines The three new gold mines are (i) Taparko which launched its work on February 25, 2005; (ii) Kalsaka whose launching is scheduled for June 2005; and (ii) Youga whose launching is scheduled for October 2005. . This may yield an estimated annual gross value of production of $60 million at the current price. This has been made possible, in large measure, by the revisions to the Mining Law and regulations which were passed by the National Assembly in May 2003. The revised legislation, which the project helped the government to prepare, significantly improved the enabling environment for private sector investment. In addition, the project has assisted the government to prepare and adopt several decrees and arrêtes pertaining to occupational health and safety as well as the environment. Another key element to attract and retain investment was the successful installation and operation of a new computerized mine title cadastre and registry system. Because of this, the processing time for a mine title application has been reduced from 90 days to about 45 days and, in some cases, even to 30 days. As well, the government is able to ensure a more rapid rotation of mining titles, an indication that the land is being worked and not simply held idle for speculative purposes.

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Establishing an appropriate enabling environment is a vital step towards attracting investment. The project also undertook another vital step which was to bring the geological and newly improved investment potential to the attention of the international investment community. This was accomplished through funding of the participation of Burkina Faso delegations at major international mining promotional conferences, principally in Canada, Australia, and South Africa. These were instrumental not only to bring to the attention of international mining companies the potential but also to acquaint Burkina officials with the views and requirements of the investors in the sector.

(ii) Improving the government's ability to efficiently and fairly administer mining and environmental regulations and to monitor developments in the sector. Logistical support was provided to line departments in the MCE, the MECV and other key agencies in the government to create and/or improve their performance as, for instance, the cadastre and documentation centers, the small mines department, the environment department, and the tax office. A significant component of the project is the development and installation of an information database system and the training of approximately 30 persons in its use called the “Space for Navigation of Information in Geology and Environment” (ENIGME - Espace de Navigation pour la Information Geoscience et de l’Environnment). .This system integrates geo-science and environmental databases and significantly increases the government's ability to monitor sector developments. In addition, training modules in administering the taxation regime for the sector have been put into place at the National School for Financial Administration (ENAREF - Ecole Nationale d'Administration des Regies Financières). Capacity Building: See Section 4.5

(iii). Improving the ability of the government to manage environmental considerations at mining sites. Extensive training on environmental matters was conducted through a number of seminars, training workshops, and study trips. Additionally, the project provided logistical support and vehicles to the mines inspection unit and the small scale mines unit at the Ministry. One indicator of the improved performance is that the number of inspection tours conducted per year is now two, instead of zero before the project. Another indicator is the development of a checklist to help private sector companies better manage environmental impacts, including a special sensitization campaign with private firms to increase awareness of environmental management. In addition, the project funded, for the first time in Burkina, the preparation and publication of the National Report on the State of the Environment. A seminar was held on overall social and safeguard issues, such as procedures for involuntary resettlement, protection of cultural patrimony, and protection of indigenous peoples.

(iv) Increasing the development of privately owned small-scale mines and to improve productivity and working conditions in artisanal mining camps. The project used two approaches to achieve this development objective. The first was to have the establishment of one or more pilot mining centers as demonstration sites to help stimulate local investor interest in mining. During appraisal and negotiations, concerns were raised about the possible economic viability of these pilot centers. The Credit Agreement, therefore, called for a full feasibility study, approved by the Bank, before funding could be released for the centers. The feasibility studies did not demonstrate economic viability and as a result it was decided not to proceed with the establishment of these centers. The second approach was to improve the working conditions and productivity in the artisanal camps. Considerable progress on this component has been made: after pilot tests on three sites, proto-type small scale milling machines and washing equipment were installed at additional five sites, using project funds which could not be used for the establishment of the pilot centers. Training and sensitization campaigns were also provided to about 40,000-50,000 artisanal miners in these locations, out of an estimated total of 200,000 persons in the country engaged in artisanal

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mining. The equipment and training could help to improve productivity by as much as four times and demonstrate how to safely process ores which will have a ripple effect as the artisanal miners move from one small-scale mine to another. In addition, sensitization campaigns were conducted on safety, hygiene, environment, community organization, and other topics.

4.2 Outputs by components:

Component 1: Regulatory and Fiscal Framework and Training

The most significant results this component included:

(i) Drafting of the new Mining Code and regulations;

(ii) Preparation of twelve decrees and eight arrêtes relating to the regulation mining, including the management of mining titles; mining taxation and accounting; hygiene and safety in mines; mining environment; and two models of standard convention for mining investments.

(iii) Installation of a functional mining cadastre register;

(iv) Organization of six seminars and seven workshops on various themes related to enforcement of regulations and laws;

(v) Conducting of two study trips to Morocco and Ghana to learn about implementation of laws;

(vi) Installation of the Mining Resource Centre (CDM) equipped with a Web site (www.infomines.bf) and staff training for this operation;

(vii) Production of six administrative directives relating to mining taxation;

(viii) Training of more than 12 agents in taxation and mining accounting;

(ix) Installation of an application software for the financial and accounting analysis of the projects and the training of agents for its use; and

(x) Completion of several comparative studies to determine the insufficiency of the mining Code of 1997 and to prepare new Code of 2003.

Achievement of this component is satisfactory.

Component II: Institutional Strengthening and Resources Management

For the ENIGME, the principal results achieved are as follows:·

(i) Completion of diagnostic studies and technical studies relating to the installation of the three subsystems including/understanding the National System of Information on Environment (SNIE), SNIST and the Basie of Sector Data on the Mines and Environment (BDSME);

(ii) Identification, for each subsystem, of the material components and the software, production of the physical model, the drafting of the handbooks of operations, the installation of the equipment in the profit

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services and the effective startup of three subsystems;

(iii) Training of the agents, in two phases, to ensure the functionality and sustainability of the systems as well as good management of the sub systems;

(iv) Reorganization of the library and installation of an electronic module of management of documents with the BUMIGEB.

With regard to BUMIGEB, the following results were achieved:

(i) Assessment of the personnel and equipment needs, operational plans of the structures and the flow charts of the laboratories;

(ii) Preparation of a report on training requirements related to the laboratories;

(iii) Installation of laboratory equipment, including staff training necessary for their operation and servicing;

(iv) Preparation of a study on the feasibility of establishing a pilot mineral treatment;

For the teaching program on mining taxation with the ENAREF, the achievements included:·

(i) Introduction of teaching of mining taxation with effect from 2003-2004;

(ii) Organization of five seminars, one workshop for the teachers, students of A and B level of ENAREF and agents of Directorate General of Taxation (DGI - Direction Generale des Impots);

iii) Conducting a study trip to Morocco for four professors of accounting and taxation from the ENAREF.

Training was also given to more than 1600 employees of the government and private sector staff on 40 topics including data processing, environment, geology, mining, project management and English.

Achievement of this component is satisfactory.

Component III: Environmental Management

The principal results achieved were:

(i) Establishment of a data base of 175 environmental projects and programs existing in Burkina Faso;

(ii) Completion of hydraulic and water supply studies of the mining sites of Essakane, Bomboré and Poura, accompanied by the development of diagrams of installations based on Global Positioning System (GPS);

(iii) Training of 375 employees from seven different ministries, decentralized structures of these same ministries, private sector and the civil society. Training was carried out through 15 seminars, seven study trips on different topics, and 21 short-term training courses in selected specialities; it is also of note that several of the persons benefiting from the training have now been promoted to senior positions within their respective ministries;

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(iv) Preparation of a guide for environmental audits based on three pilot audits from the factory of the Burkina Battery Company (SOFAPIL), the Ouaga II power station of the National Electricity (SONABEL) and granite extraction operation at the site of Yagma;

(v) Completion of the first report on the environment in Burkina Faso, in collaboration with the members of the National Programme of Information Management (PNGIM);

(vi) Development and implementation of a national program for the promotion and development of the Impact Studies on Environment;

(vii) Installation of a program of environmental education which led to the development of a National Action plan of Environmental Education for the Durable Development (PANEEDD);

(viii) Recommendation on a project concerning environmental accounting which is under study for financing with the UNDP; and

(ix) Creation of a network of media resource persons to assist in the sensitization of the public on environmental topics.

Achievement of this component is satisfactory.

Component IV: Small Scale and Artisanal Mining

Activities under this component consisted of:

(i) Strengthening of the structures in charge of promotion of small scale mines by: (a) the completion of diagrams of organization; (b) sharing of the experiences of Ghana through a study trip; and (c) the development of standard procedure for inspection of the sites;

(ii) Completion of the report on the environment, the socio-economic conditions, health, hygiene and safety on five gold washing sites, accompanied by proposals for solutions for improving the situation;

(iii) Organization of a public awareness campaign on medical, environmental, safety and security questions by a multi-disciplinary team in nine sites of gold washing. About 20,000 artisanal miners were covered by theatre-forum and projections of video films;

(iv) Installation of social infrastructure (water wells, nurseries for children of miners and latrines) on eight artisanal mining sites;

(v) Development of a proposal for financing mechanisms through local financial institutions for small scale mining operations;

(vi) Installation of small crushing, milling and washing equipment at eight sites and training of the local craftsmen for their use. This contributed to a strong improvement of the outputs in terms of saving time and increasing the rate of recovery of the gold by 35% to 65%;

(vii) Evaluation of the gold bearing potential of Bouda and preparation of a feasibility study for the installation of a pilot center of treatment and training. As per the requirements of the Credit Agreement, this activity was not followed through because of negligible economic viability;

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(viii) Training of 17 agents from the structures of the MCE and the MECV in 10 sites. This training was followed by an inspection on ten other sites;

(ix) Launching of an education and public awareness campaign on the particular problems of mercury usage and the use of retorts, a campaign carried out with the assistance of the Burkina Precious Metals Buying Office (Comptoir Burkinabe des Meteaux Precieux); and

(x) An inventory of quarry exploitation of industrial and construction substances around the towns of Ouagadougou, Sore, Dédougou and Tenkodogo. However the exploitation equipment could be installed only on one granite quarry near Ouagadougou.

Achievement of this component is satisfactory.

4.3 Net Present Value/Economic rate of return:

Not applicable

4.4 Financial rate of return:

Not applicable

4.5 Institutional development impact:

The project resulted in a substantial institutional development impact.

• The project facilitated the restructuring of the MCE and transforming it into a regulatory body. By providing a full set of regulatory procedures and guidelines, the project has enabled the MCE to exercise its functions more effectively. The successful installation and operation of the computerized mine title cadastre and registry system has enabled the MCE to cut the processing time for a mine title application from 90 days to 30-45 days, increase the delivery of mining titles from seven in 2002 to 26 in 2003 and 72 in 2004, and enhance the security of tenure for title holders.

• The project has led to a better management and recovery of taxes and other mineral duties, by the daily follow-up of payments, installation of a payment center in the MCE, and an acceleration of the customs procedures for the importation of mining materials for which lists were drawn up in consultation with the a professional body of miners of Burkina.

• Likewise, the installation of the ENIGME information database system and training given to the staff on managing the system has significantly increased the government's ability to monitor sector developments. The project also strengthened BUMIGEB to perform its functions by providing analytical equipment to the national laboratories to test mineral samples and conduct topographical surveys. Special programs created in mining taxation at ENAREF have reinforced the government’s capacity to administer tax laws more effectively.

• Consistent with the objective to build capacity, the project conducted numerous training courses in the country and funded short courses in specialized topics for civil servants outside of Burkina. For example, the project funded extensive training in areas such as environment, project indicators, procurement, and project management for more than 1600 people, which included government civil

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servants, members of civil society and private sector companies. An independent study of the results obtained through these training programs found that the training was appreciated by those who participated in it. More importantly, the hierarchical superiors in the organizational structure also commented on improved performance of those trained.

5. Major Factors Affecting Implementation and Outcome

5.1 Factors outside the control of government or implementing agency:

(i) Fluctuation in gold price. The exploration boom and influx of investors reached its peak in 1998, the same year that the project became effective. However, a major scandal on the Canadian equity markets resulted in a severe reduction in the amount of risk capital available to many smaller exploration companies from 1998 to 2002. Also, the gold price significantly weakened during the same period and, as a result, interest of the private sector waned and many companies put their projects on hold. The downturn in new investment reached its nadir in 2000, just as the project was achieving its working rhythm. Fortunately, reforms supported by the project to the legislation and regulations and strengthening of government capacity were well underway when the gold price recovered and liquidity returned to the risk capital markets for mining investments around 2003. New significant interest is being directed to Burkina and many projects previously put on-hold have been re-activated.

(ii) Devaluation of US Dollar. Towards the end of the project US Dollar devalued by about 30% vis-à-vis the Euro, which is linked to CFA Franc. As a result, acquisition of goods and services of European or Asian manufactured origin (laboratory equipment, for example) which had been originally been estimated in dollars became much more expensive.

5.2 Factors generally subject to government control:

(i) Delays in meeting conditionalities. Because of the delay on the part of the government in meeting the Bank’s effectiveness conditions, the project became effective four months later than anticipated, i.e., on April 28th instead of January 1, 1998.

(ii) The closing date of the project was extended twice due to a number of factors, including the scaling-up of some of the activities, bureaucratic delays resulting from the government’s internal procedures, and lack of experience on the part of the PIU staff in implementating the Bank’s procurement procedures. The first extension was for a period of 18 months, from 31 December, 2002 to 30 June, 2004, in order to allow work on five additional artisanal mining sites and the completion of the ENIGME information management system. The second extension was for another six months from June to December 2004 in order to complete the training of artisanal miners to ensure sustainabililty of the ENGIME system.

(iii) Change of Minister of Mines, Quarries and Energy as well as some of the senior staff in MCE after about one and half years of implementation (November, 2000) slowed down the project’s progress.

5.3 Factors generally subject to implementing agency control:

None.

5.4 Costs and financing:

The total cost of the project was US$21.24 million compared with the SAR estimate of US$22.5 million. The slight reduction between estimate and actual costs was achieved through cost savings in the

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environmental component. The Bank financed US$20.14 million (94.8%), and the government contributed US$1.1 million equivalent in local costs (5.2%).

6. Sustainability

6.1 Rationale for sustainability rating:

Likely. The overall sustainability of the project is rated as likely, based on the following factors:

(i) Government has decided to provide sufficient funds in its future budget allocations which would ensure adequate logistical and human resources support to the structures that have been put into place by the project, principally the cadastre center and the documentation center. For example, for 2005-2006, the government has allocated supplemental funding from the MMCE budget for this purpose.

(ii) The project has created a critical mass for investment in mining, which is expected to be sustainable on its own, provided the current gold price remains high. Because of improvements to the enabling environment produced by the project, foreign investors have started coming to Burkina Faso. As mentioned in Section 4.1, three new gold mines, namely at Taparko, Kalsaka, and Youga are ready to start exploitation. In addition, more exploration activities are also going on. The increased flow of foreign investors will contribute to making the government more responsive to the needs for sustainability.

(iii) The strengthening of the laboratories of BUMIGEB will help ensure the continuity of results from this institution as well as its ability to offer geological testing services to potential companies.

(iv) The reinforcement of ENAREF, the Directorate General of Taxation (DGI) and the Directorate General of Customs (DGD), which has involved up-grading rules and procedures, has allowed these organizations to save invaluable time and made it easier for investors to do business in Burkina Faso.

(v) The availability and ease of access to geological, environmental and mining information will facilitate the task of mining companies to make the decisions required to invest in Burkina. Continued and increased presence of these investors is a key to sustainability as they will not only provide the revenues to the government but also require professional performance by the agencies responsible for the sector.

(vi) The government is now better equipped to take into account environmental factors and “improvements in quality of life” aspects through the integration of these sustainable environmental considerations in several administrative structures. This is demonstrated by the transformation of the National Council for the Management of Environment (CONAGESE) into the National Council for the Environment and Sustainable Development (CONEDD). Other actions taken to improve sustainability include the creation of several new agencies within the MECV, including a Direction of the Environmental Evaluations (DEE), the Directorate of Ecological Surveillance (DSE), the Directorate of Regulation and Environmental Inspections (DRIE), a laboratory to analyze waste water, and technical centers for incineration of household waste in Bobo Dioulasso and Ouagadougou.

(vii) It will take some time for the sustainability of the artisanal mining sector to make itself fully manifest. The installation of small scale milling and washing equipment has demonstrated the economic viability of the improved methods, but predicting the sustained use of them is difficult and depends on many factors in addition to simple economic calculations. There are grounds for cautious optimism that the training provided to the artisans in terms of health safety and sanitation has had not only an immediate beneficial impact but also, on the basis of anecdotal evidence, may be sustainable over the longer term. Moreover,

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demonstrated efficiencies of the modern equipment at some sites will be replicated and transmitted to other sites by the miners themselves. The equipment installed by the project on eight artisanal mining sites were proto-types intended to demonstrate the utility of the equipment. It is encouraging that on certain sites the artisans themselves have undertaken improvements to the design and functioning of the equipment to adapt it to local requirements. However, on others the equipment is in need of maintenance and the operations themselves would benefit from greater professional management. Finally, a factor outside of the control of the artisans is the presence of good high grade ore, for instance at Alga where the ore is said to be exhausted.

(viii) A significant pool of local expertise was created by the project, especially in disciplines which had heretofore been absent in Burkina (financial, project management, environmental analysis, computer and database management skills). This will help to ensure the sustainability of the project’s accomplishments.

6.2 Transition arrangement to regular operations:

Overtime, the mining sector will produce revenues which will not only enhance the government treasury but also make the sector self-sustaining. The three new mines under development and the potential for large discoveries make this outcome likely. In the interim many Bank and other donor interventions can target discrete interventions in the sector. For instance, private sector development programs can help to attract investment. Bank agencies such as IFC and MIGA can be effective to establish cooperation with investors. Components dedicated to small scale and artisanal mining can be mobilized from the Bank’s PRSC series of interventions. As well, on-going and future health projects can dedicate components to HIV/AIDS prevention and sensitization about the dangers of mercury use. In fact, during the execution of the present project collaborative arrangements through health projects were carried out in this regard. The Bank projects on environment can be useful as well as micro credit schemes.

7. Bank and Borrower Performance

Bank7.1 Lending:

Satisfactory. The Bank's performance in the ide ntification, preparation, and appraisal of the project was satisfactory. The Bank started the identification process based on the sector work already done in Burkina Faso and also with the good experience gained from mining sectors in other countries.

During preparation and appraisal, the Bank took into account all major relevant aspects, such as technical, financial, economic, environment, institutional, procurement and financial management. During the appraisal, the Bank considered the project's risks and benefits. Extensive stakeholder consultations were conducted at every phase of project preparation. The Bank had a consistently good working relationship with the Borrower during identification, preparation and appraisal.

7.2 Supervision:

Highly Satisfactory. The Bank's performance during the implementation of the project was highly satisfactory.

The Project Status Reports (PSRs) realistically rated the performance of the project both in terms of achievement of development objectives and project implementation. Whenever delays in implementation occurred, the Bank’s task team was able to define concrete steps and a timetable for putting the project back on track. Aide-Memoires were prepared after each mission and transmitted to the government,

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highlighting project issues. The project team enforced effectively Credit covenants. The Bank also conducted Mid-term Review in May 2000. The Review concluded that the execution of the project was on track. Supervision missions were conducted at least three, sometimes four, times a year. These alerted the government and the implementing agency to problems with project implementation and facilitated in resolving them appropriately. In particular, the close and frequent supervision of the project was instrumental in guiding implementation through the difficult period (1999-2002) when the downturn in the gold price led to an exodus of many mining companies. The government was discouraged at this turn of events but effective supervision of the Bank succeeded in helping the government stay the course. When the market returned in 2003 the government had accomplished many of the reforms needed to stimulate and sustain investment.

The Bank had a good relationship with the Borrower. Supervision team consisted of specialists in mining, environment, economics, and procurement. The team used external consultants whenever needed. At the beginning of implementation, the Bank conducted training courses for the PIU staff on procurement, financial management, and disbursement. In addition, the staff of MCE, MECV, and the Prime Minister’s Office attended training courses conducted in Burkina Faso, Canada, Morocco, France, Senegal, and Togo on project management, performance indicators, project preparation, financial management, and other relevant subjects. At the end of the project, a stakeholder workshop was conducted to share project experience.

While a formal M&E mechanism was not put in place at the beginning, the government did, in fact, have regular monitoring procedures. The government formed a committee composed of key stakeholders on a qualterly basis the evolution and performance of project as well as other issues with respect to the mining sector.

During implementation, the Bank increased the emphasis on social aspects such as HIV/AIDS. Social assessments were conducted in particular at selected artisanal mining sites. Also, significantly, the project worked in tandem with other projects to assess the prevalence of HIV/AIDS in the artisanal mining camps. This approach evolved in response to the Bank’s development agenda and increased input from Non-Governmental Organizations (NGOs) and financing the participation of them in the project’s activities. An example is the funding the project provided for the Women’s Miners Association of Burkina and the Artisanal Miners Association. Sufficient budget and staff resources were allocated by the Bank, and the project was adequately supervised and closely monitored. Over the six years of project implementation, there were 16 supervision missions, with an average of about three missions per year.

During the entire project period, there was only one task team leader (TTL), which contributed significantly to ensure continuity in implementation, created trust and confidence in the counterpart, and enabled getting the job done smoothly. The Resident Mission in Burkina Faso was helpful in providing quick response and follow-up on project-related issues. The staff there showed flexibility in suggesting and improving modifications in implementation timetables and budgets. They worked closely with the government and the implementing agency, and provided them with extensive assistance including technical advice.

7.3 Overall Bank performance:

Satisfactory. Overall, the Bank performance was satisfactory during project preparation, appraisal and implementation.

Borrower7.4 Preparation:

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Satisfactory. The Borrower's performance in the preparation of the project was satisfactory. The Borrower showed commitment to the project’s objectives and took into account major aspects, such as, technical, financial, economic, institutional, environmental and sociological factors, including stakeholder commitment. The government officials and staff of the implementing agency worked in close cooperation with the Bank's project team on a continual basis.

7.5 Government implementation performance:

Satisfactory. The government’s implementation performance was overall satisfactory. There was some disruption in smooth implementation due to the change of ministers and senior personnel in the MCE in 2001 and 2002. Subsequent to the personnel changes, it took a period of time for the new team to acquire a familiarity and a sense of ownership of the project. Eventually, the new project team settled well into the project. Appropriate levels of review and approval were in place; financial accountability and follow-up was observed; expenditures were duly authorized before they were incurred; and documentation was maintained properly for periodic review. The government provided adequate counterpart funding on a consistent basis throughout the life of the project.

7.6 Implementing Agency:

Highly Satisfactory. The performance of PIU was highly satisfactory. It was very well organized and effective in dealing with procurement, disbursement, progress reports, and in maintaining proper records of the project. It operated in close coordination with the TTL, was receptive to the Bank’s advice, and highly collaborative with respect to meeting demanding benchmarks and deadlines. The project succeeded in implementation mainly because of the strong PIU team. Especially, during the above-mentioned transition period resulting from the change of Minister and senior staff in the MCE, PIU performed very well and compensated for time it took for the new ministerial team to find its footing with the project.

7.7 Overall Borrower performance:

Satisfactory. The overall performance of the Borrower was satisfactory.

8. Lessons Learned

• A simpler structure with PIU as an autonomous unit reporting directly to the Minister of MCE and the Steering Committee will be more effective in implementation.

• The government needs to ensure budgetary and logistical support for various departments of the mining sector in order to ensure sustainability of results obtained through the project. Progress has been made in the closing days of the project to enhance government budgetary and logistical support.

• Training would be more effective if it is combined with classroom and on-the-job experience, especially in the case of sophisticated geo-science database management systems. Also, ensuring continued work flow and program development is necessary. Greater care could have been exercised in the choice of trainees on these sophisticated systems to ensure that they are line employees of the relevant agencies, instead of contract hires. • In order to center to a greater degree the project within the mainstream of the country program, it

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would be desireable to emphasize the direct linkages between the project and the CAS. In fact, the project undertook a study towards the end of the implementation period of “Mining as a Potential Sources of Growth”. This study clearly demonstrated the linkages between the CAS and the project, particularly the work on the artisanal mining sites with its direct impacts on reducing poverty.

• Capacity building is a slow process and it requires long-term commitment from the government and the Bank in order to put sufficient capacity in place. For example, for certain specialties it would be helpful for the Bank to fund long term academic training.

• The project demonstrated that the private sector will respond well to invest in the country and engage in mining sector, provided the government establishes right framework and strengthens adequate institutional capacity.

• It will be useful for Burkina Faso to continue taking proactive measures to promote mining investments in the country. The project funded the participation of Burkina delegations in many international investor events. This type of pro-active participation in international for should be continued. At the international level, in order to attract foreign investments, it will be important to give publicity to the new legal and regulatory framework currently governing the mining and environmental sectors of Burkina. At the national level, the organization of a forum to bring together the promoters (current and potential), manufacturers of mining materials and treatment, and potential financiers would contribute to reinforce the importance of national private sector in the mining activities. The government is taking steps in this direction as, for example, the organization of the National Mining Forum (23/24 June 2005) and planning for PROMIN in 2006.

Artisanal Mining:

• As noted earlier, the washing equipment is of a proto-type design. It is noted that certain technical problems related to the resistance of the metals used in the construction of the equipment remained to be resolved. Also, and perhaps more fundamental, proper management of the equipment, including periodic and preventative maintenance, needs to be put into place. Perhaps a means should be found for better implication and support of the millers and sub-contractors who are already processing the ore with antiquated equipment. The mine title holder is principally interested in purchasing gold and does not seem to have the same business urgency to improve productivity as is the case with the millers.

• At certain sites, the continuity of high-grade ores can pose problems. Artisanal miners wander from site to site in search of high-grade ores. This means that expensive fixed installations may not be warranted. Instead, investigations should be conducted to the use of mobile washing and milling units. The equipment already installed on certain sites could be modified for this purpose and operated by private entrepreneurs.

• Achieving a sustainable outcome in the artisanal sector is contingent upon the government having an effective presence in the sites. Certain minimum public services such as dispensaries, schools, and police are completely absent from the sites. Even though it is difficult because many of the sites are temporary and the miners are itinerant, the government needs to establish a minimum level of services and presence. This was outside the scope of the present project. However, in future the government should ensure a more effective presence on artisanal mining sites.

• Placing emphasis on the role of women in the artisanal mining camps is necessary in order to

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achieve maximum development impacts. In fact, the project obtained excellent results through funding of the Burkina Women’s Miners Association as well as working through the women’s association at several of the camps. This has demonstrated that women take a keen interest in, and are willing to contribute funds to, social projects, for instance the children’s shelters at the camps.

• An issue which should be considered is the extent to which the modern crushing milling and washing equipment could displace workers, primarily women, engaged in rock crushing. This work is arduous, unsanitary, and carries significant medium term health dangers (siliceous) for the women and the children present in the shelters where the crushing takes place. However, some women in the artisnal camps have expressed the fear that the new equipment would remove their source of livelihood and income. In fact, women could be shifted to panning and sluicing activities which are made possible by the machinery which would not only provide better incomes but also entail less risk. The project was successful in demonstrating this innovation; however, more training and special emphasis on providing these types of opportunities to the women in the camps would enhance the sustainability of the equipment.

9. Partner Comments

(a) Borrower/implementing agency:

Borrower’s Evaluation Report: See Annex 8

(b) Cofinanciers:

N/A

(c) Other partners (NGOs/private sector):

N/A

10. Additional Information

A. The Bank’s ICR Team consisted of the following members:

Craig Andrews Task Team LeaderSati Achath ConsultantMadhu Nair ConsultantAmelia Williams Program Assistant

B. Persons interviewed for the preparation of the ICR:

(i) Peter van der Veen Manager, COCPO(ii) Gotthard Walser Senior Mining Specialist(iii) Eavan O’Holloran Senior Country Officer(iv) Boubacar Bacoum Mining Specialist (v) Sybille Crystal Operations Analyst(vi) Joseph Nongodo Ouedraogo Project Coordinator, PIU(vii) Francois Ouindelissida Ouedraogo Consultant, Burkina Faso

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Annex 1. Key Performance Indicators/Log Frame Matrix

Outcome Indicators:

Development Objective and Indicators

Original Baseline(Actual 1997-99)

Target Actual Comments

Regulatory: (i) Exploration expenditure (US$ Million/year)

13-16 3-7 5-15Exploration expenditures, a key measure of investor confidence, are on the up-swing for the past three years due to the regulatory reforms introduced by the project and the high gold price.

(ii) Establishment of new industrial mines

0 1 3 No new mines were planned during the baseline period; three are now under construction or advanced planning stage.

(iii) Private gold buying offices

0 2 3-4 A condition of the Board was the suppression of the state gold purchasing monopoly; private buying offices have been established instead

Small mines: (i) New investment in small mines

0-1 1-2 7-10Special regulations in the new mining law make it now possible for local entrepreneurs to establish small mines.

(ii) Sites sensitization 0-3 8 20+ An important contribution of the project has been the sensitization campaigns in the artisanal sector as to environmental, health, and safety protections.

Environment:(i) Report on environment 0 1 1

The national report on the environment is a fundamental source document and “stock-taking” of environmental considerations in the country.

(ii) Number of site inspections

2 2 10-15 The environment and inspectors offices of the government now conduct regular inspections of mining sites

Economic:(i) Private local consultants

0-3 9-10 12-15An important spin-off effect has been the establishment of small consultancy companies related to

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the mining sector.(ii) Sector jobs 1000 1000 3600 It should be noted that most of

these jobs are and will be created in rural areas where alternative employment opportunities are rare.

Gold Production 1 tonne 0.5 tonne

5 tonnes The target decrease in gold production reflects the closure of the sole producing mine in the country. This decrease has been more than off-set by the new production which will come on-stream over the next two years.

Output Indicators:

Indicator Projected in SAR/PAD Actual/Latest EstimateComponent 1: Regulatory and Fiscal Framework and Training

(i) Preparing mining regulations; (ii) Strengthening legal skills and negotiating capabilities; (iii) Improving administration of the fiscal regime applicable to mining; (iv) Building sustainable capacity in applied mining taxation through special training modules at the National School of Finance Management; and (v) Providing continued training in mining law and environment..

(i) Drafted new Mining Code and regulations;

(ii) Prepared twelve decrees and eight arrêtes relating to the regulation mining

(iii) Installed functional mining cadastre register;

(iv) Organized six seminars and seven workshops on various themes related to enforcement of regulations and laws;

(v) Conducted two study trips to Morocco and Ghana to learn about implementation of laws;

(vi) Installed Mining Resource Centre (CDM) equipped with a Web site (www.infomines.bf) and staff training for this operation;

(vii) Produced six administrative directives relating to mining taxation;

(viii) Training given to more than 12 agents in taxation and mining accounting;

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(ix) Installed an application software for the financial and accounting analysis of the projects and the training of agents for its use; and

(x) Completed several comparative studies to determine the insufficiency of the mining Code of 1997 and to prepare new Code of 2003.

Component II: Institutional Strengthening and Resources Management (i) Operationalizing the roles and

improve internal management procedures of key sector institutions: MCE, BuyingPrecious Metals of Burkina Faso (CBMP - Comptoir Burkinabe des Metaux Precieux) ; Bureau of Mines and Geology of Burkina Faso (BUMIGEB); (ii) Restructuring the geo-services currently offered by BUMIGEB; (iii) Improving cadastre and mining title management services at MCE; (iv) Establishing and sustaining an environmental unit within MCE; (v) Up-grading and improving the geology database, including the creation of a National System of Earth Science Information (ENIGME); and (iv) Reinforcing the technical capacities of BUMIGEB to assay and test minerals.

ENIGME:

(i) Completed diagnostic studies and technical studies relating to the installation of the three subsystems;

(ii) Identified for each subsystem, of the material components and the software, production of the physical model, etc.

(iii) Training given to agents to ensure the functionality and sustainability of the systems and management of the sub systems;

(iv) Reorganized the library and installation of an electronic module of management of documents with the BUMIGEB.

BUMIGEB

(i) Assessed personnel and equipment needs, operational plans of the structures and the flow charts of the laboratories;

(ii) Prepared a report on training requirements related to the labs;

(iii) Installed laboratory equipment, including staff training

(iv) Prepared a study on the feasibility of establishing a pilot mineral treatmentENAREF

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(i) Introduced teaching of mining taxation with effect from 2003-2004;

(ii) Organized five seminars, one workshop for the teachers, students of A and B level of ENAREF and agents of DGI;

iii) Conducted a study trip to Morocco for four professors of accounting and taxation from the ENAREF.

TRAINING

Training given to more than 1600 employees of the government and private sector staff on 40 topics including data processing, environment, geology, mining, project management and English.

Component III: Environmental Management

(i) Establishing capacity for monitoring compliance with regulations by strengthening the relevant institutions; (ii) Assisting in the preparation of specific environmental regulations and monitoring procedures in the mining sector; (iii) Establishing a national environmental information system and database (EIS); (iv) Designing and implementing a national environmental sensitization and awareness campaign; and (v) Providing training in areas of environmental policy formulation, monitoring, and management.

(I) Established a data base of 175 environmental projects and programs existing in Burkina Faso;

(ii) Completed hydraulic and water supply studies of the mining sites of Essakane, Bomboré and Poura, accompanied by the development of diagrams of installations based on Global Positioning System (GPS);

(iii) Trained 375 employees from seven different ministries, decentralized structures of these same ministries, private sector and the civil society.

(iv) Prepared a guide for environmental audits based on three pilot audits from the factory of the Burkina Battery Company (SOFAPIL), the Ouaga II power station of the National Electricity (SONABEL) and granite extraction operation at the site of Yagma;

(v) Completed first report on the environment in Burkina Faso, in collaboration with the members of the National Programme of Information

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Management (PNGIM);

(vi) Developed implementation of a national program for the promotion and development of the Impact Studies on Environment;

(vii) Installed a program of environmental education which led to the development of a National Action plan of Environmental Education for the Durable Development (PANEEDD);

(viii) Recommended a project concerning environmental accounting which is under study for financing with the UNDP; and

(ix) Created a network of media resource persons to assist in the sensitization of the public on environmental topics.

Component IV: Small Scale and Artisanal Mining

(i) Studying the socio-economic, geology and environmental specifics of artisanal and small scale mining with a view to determining a strategy, including appropriate delivery mechanisms, for providing extension services; (ii) Subject to a positive feasibility study, establishing a pilot training center for small scale miners, with the possibility to expand to two additional centers in the event the pilot program is successful; (iii) Supporting the Directorate of Small Scale Mining Promotion within the MCE to design and deliver technical advice, geology information, and extension services to small-scale miners; (iv) Assessing mechanisms to evaluate financing proposals of small-scale mining operators; (v) Promoting the identification, development and dissemination of small-scale mining equipment through private sector delivery mechanisms; (vi) Implementing in coordination with the MCE, an environmental sensitization and awareness campaign in the

(i) Strengthened the structures in charge of promotion of small scale mines by: (a) the completion of diagrams of organization; (b) sharing of the experiences of Ghana through a study trip; and (c) the development of standard procedure for inspection of the sites;

(ii) Completed the report on the environment, the socio-economic conditions, health, hygiene and safety on five gold washing sites, accompanied by proposals for solutions for improving the situation;

(iii) Organized a public awareness campaign on medical, environmental, safety and security questions by a multi-disciplinary team in nine sites of gold washing.

(iv) Installed social infrastructure (water wells, nurseries for children of miners and latrines) on eight artisanal mining sites;

(v) Develoed a proposal for financing mechanisms through local financial

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artisanal mining communities. institutions for small scale mining operations;

(vi) Installed small crushing, milling and washing equipment at eight sites and training of the local craftsmen for their use.

(vii) Evaluated gold bearing potential of Bouda and preparation of a feasibility study for the installation of a pilot center of treatment and training.

(viii) Trained 17 agents from the structures of the MCE and the MECV in 10 sites.

(ix) Launched an education and public awareness campaign on the particular problems of mercury usage and the use of retorts, a campaign carried out with the assistance of the Burkina Precious Metals Buying Office (Comptoir Burkinabe des Meteaux Precieux); and

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Annex 2. Project Costs and Financing

Annex 2a

Project Costs by Components (in US$ million equivalent)

Project Component Appraisal Estimate Actual/Latest Estimate Percentage of Appraisal

Legal Reform and Capacity Building

2.54.8 102.13

Mining Taxation and Fiscal Training

2.2

Institutional Strengthening and Resources Management

7.0 6.9 98.57

Environmental Management

3.0 2.2 73.33

Small-Scale and Artisanal Mining

4.2 5.34 127.14

Project Coordination 0.8 1.2 150.00

Unallocated 2.0 0PPF 0.8 0.8 100.00Total 22.5 21.24 94.4

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Expenditure Categories

Procurement Method Appraisal Estimate

Procurement Method Actual/Latest Estimate

ICB NCB Other NBF Total ICB NCB Other NBF

Total

1 Works

0.2 (0.16)

0.2 (0.16)

2 Goods 2.5 (2.5)

1.8 (1.4)

4.3 (3.9)

2.2 (2.2)

0.9 (0.6)

3.10 (2.8)

3 Services (a) Cons

ulting TA

(b)

14.4

(14.4)

14.4

(14.4)

15.18

(15.18)

15.18

(15.18)

(b) Training 2.7 (2.3)

2.7 (2.3)

1.96 (1.3)

1.96 (1.3)

4 Misc. (a) O&M

0.3

0.3

0.0

0.0

(b) PPF 0.8 (0.8)

0.8 (0.8)

0.8 (0.8)

0.8 (0.8)

Total 2.5 (2.5)

1.8 (1.4)

18.2 (17.5)

22.5 (21.4)

2.2 (2.2)

1.10 (0.66)

17.94 (17.28)

21.24 (20.14)

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Project Financing by Component (in US$ million equivalent) Component Appraisal Estimate Actual/Latest Estimate Percentage of Appraisal

Bank Govern- ment

Co-financi

er

Bank Govern-ment

Co-financier

Bank Govern-

ment

Co-financi

er Legal Reform and Capacity Building

2.5 2.5 100

Mining Taxation and Fiscal Training

2.2 2.3 104,5

Institutional Strengthening and Resources Management

6,64

0.36

6.54

0.36

98.49

100

Environmental Management

2.9 0.10 2.10

0.10 72.41 100

Small-Scale and Artisanal Mining

3.96 0.24 5.10 0.24 128.79 100

Project Coordination

0.4 0.4 0.8

0.4 200 100

Unallocated 2.0 0 0 0 PPF 0.8 0 0.8 0 Total 21.4 1,1 20,14 1,1 94.11 100

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Annex 3. Economic Costs and Benefits

N/A

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Annex 4. Bank Inputs

(a) Missions:Stage of Project Cycle Performance Rating No. of Persons and Specialty

(e.g. 2 Economists, 1 FMS, etc.)Month/Year Count Specialty

ImplementationProgress

DevelopmentObjective

Supervision

03/05/1999 1 TEAM LEADER (1) S S06/19/1999 2 TASK MANAGER (1);

INFORMATION SPECIALIST (1)

S S

11/01/1999 1 TASK MANAGER (1) S S12/08/2000 2 PRIN. MINING SPEC. (1);

DIVISION CHIEF (1)S S

05/04/2001 1 TASK MANAGER (1) S S11/20/2001 1 TASK MANAGER (1) S S01/25/2002 1 TASK TEAM LEADER (1) S S01/25/2002 1 TASK MANAGER (1) S S09/26/2002 1 TASK MANAGER (1) S S09/26/2002 1 TASK TEAM LEADER (1) S S10/02/2003 1 TASK TEAM LEADER (1) S S04/23/2004 2 TTL (1); MINING SPECIALIST

(1)S S

10/02/2004 1 TASK TEAM LEADER (1) S S

ICRDec 2004 2 TTL, MINING

SPECIALIST

May, 2005 1 TTL

(b) Staff:

Stage of Project Cycle Actual/Latest EstimateNo. Staff weeks US$ ('000)

Supervision 91.3 519.97ICR 11.7 41.00Total 103 560.7

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Annex 5. Ratings for Achievement of Objectives/Outputs of Components(H=High, SU=Substantial, M=Modest, N=Negligible, NA=Not Applicable)

RatingMacro policies H SU M N NASector Policies H SU M N NAPhysical H SU M N NAFinancial H SU M N NAInstitutional Development H SU M N NAEnvironmental H SU M N NA

SocialPoverty Reduction H SU M N NAGender H SU M N NAOther (Please specify) H SU M N NA

Private sector development H SU M N NAPublic sector management H SU M N NAOther (Please specify) H SU M N NA

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Annex 6. Ratings of Bank and Borrower Performance

(HS=Highly Satisfactory, S=Satisfactory, U=Unsatisfactory, HU=Highly Unsatisfactory)

6.1 Bank performance Rating

Lending HS S U HUSupervision HS S U HUOverall HS S U HU

6.2 Borrower performance Rating

Preparation HS S U HUGovernment implementation performance HS S U HUImplementation agency performance HS S U HUOverall HS S U HU

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Annex 7. List of Supporting Documents

List of Supporting Documents

1. Aide Memoires, Back-to-Office Reports, and Project Status Reports.

2. Project Progress Reports.

3. Consultant Study Reports financed under the Project.

4. Borrower's Evaluation Report dated December 2004

5. Staff Appraisal Report for Burkina Faso: Mining Sector Capacity Building and Environmental Management Project, dated May 29, 1997 (Report No. 16165 BUR)

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Additional Annex 8. Borrower’s Evaluation Report

INTRODUCTION

Le Projet de Renforcement des Capacités Nationales du Secteur Minier et de Gestion de l’Environnement (PRECAGEME) a été initié par le Gouvernement du Burkina Faso dans le cadre de la série des réformes engagées à partir de 1991 conformément au programme d’ajustement structurel entrepris. Il est entré en vigueur le 28 avril 1998 sur la base de l’Accord de Crédit ITF n° 029 Bur signé le 28 juillet 1997 entre le Gouvernement du Burkina Faso et la Banque Mondiale.

D’un montant de 14,8 millions de DTS (soit environ 21,4 millions de $US) et d’une contrepartie Burkinabè de 1,1 millions de $US, le projet était initialement programmé pour prendre fin le 31 décembre 2002. Cependant, il a bénéficié de deux prolongations successives qui ont abouti à la fixation de sa date de clôture définitive au 31 décembre 2004.

Les objectifs initiaux du PRECAGEME, selon l’Accord de Crédit sus-mentionné, étaient d’aider le Gouvernement du Burkina Faso à:

a) Créer un climat propice qui permettra à la fois de favoriser et encourager les investissements privés dans le secteur minier et de garantir une contribution réelle et durable de ce secteur à la croissance économique du pays ;b) Renforcer les capacités des secteurs privés et publics à réglementer et gérer les activités minières dans le respect de pratiques adéquates de protection de l’environnement ; etc) Identifier et adopter des mécanismes appropriés pour faciliter le développement des petites mines et améliorer les conditions sociales, sanitaires et environnementales des mineurs artisanaux.

En vue d’atteindre ces objectifs globaux, quatre (4) composantes ont été définies pour l'exécution, à savoir :

v Composante A : Régime réglementaire, fiscal et formation ;v Composante B : Renforcement des institutions et gestion des ressources ;v Composante C : Gestion de l’environnement ;v Composante D : Petites mines et opérations minières artisanales.

L’exécution des différentes composantes a été confiée à des consultants sélectionnés conformément aux procédures de l’IDA. Le suivi d’exécution, quant à lui, a été assuré par:

• Un Comité Interministériel chargé du suivi technique, présidé par le Secrétaire Général du Ministère des Mines, des Carrières et de l’Energie (MCE) et comprenant le Premier Ministère (PM), le MED), le Ministère de l’Economie et du Développement (MED), le Ministère de l’Environnement et du Cadre de Vie (MECV); • Un superviseur en la personne du Directeur Général des Mines, de la Géologie et des Carrières ; • Des responsables de composantes, désignés par les ministères et structures bénéficiaires, et souvent entourés de groupes de travail ;• Une Cellule de Coordination pour la gestion quotidienne;• Un Task Manager du projet désigné à partir du siège de la Banque Mondiale et qui

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effectue au moins trois missions de supervision par an.• Les visites de contrôle des structures de la Banque Mondiale et de sa mission résidente au Burkina Faso ont également contribué au bon déroulement du projet.

Enfin, un utile contrôle indirect a été assuré à travers les ateliers de restitution organisés, généralement, à la fin des travaux des composantes et sous-composantes, puis à la clôture du projet. Les avis émis par les participants sur les résultats des actions menées ont permis, au fur et à mesure, les réajustements nécessaires pour que le projet puisse atteindre ses objectifs.

1. LES RESULTATS DU PRECAGEME

Le système de suivi mis en place et la méthodologie adoptée ont aidé le PRECAGEME à atteindre d’importants résultats examinés ici composante par composante.

1.1. Résultats de la Composante A.

La Composante A, qui portait sur le thème "Régime Réglementaire, Fiscal et Formation" avait pour objectifs, à travers ses actions, (a) d’attirer et retenir plus d’investisseurs privés étrangers et nationaux dans le secteur minier du Burkina et (b) de mieux sécuriser et protéger les intérêts de l’Etat dans ce secteur. Elle a été exécutée, pour l’essentiel, par la Société Française de Réalisation d’Etudes et de Conseil (SOFRECO) en deux phases.

La première phase qui s'est exécutée de mai 1999 à mars 2003 et a porté sur la rédaction des textes d’application du Code minier adopté en 1997, a atteint (et souvent même dépassé) les résultats attendus. Les résultats les plus significatifs comprennent:

• La production de neufs (9) projets de décrets et six (6) projets d’Arrêtés ; • La réalisation et la mise en place d’un Cadastre minier fonctionnel ;• L’organisation de six (6) séminaires et sept (7) ateliers, dont l’atelier de clôture la phase initiale;• L’organisation et la conduite de deux voyages d’études au Maroc et au Ghana;• L’installation effective du Centre de documentation minière (CDM) doté d’un site Web. (www.infomines.bf) et la formation du personnel pour son fonctionnement ;• La production de six (6) directives administratives relatives à la fiscalité minière ;• La formation de plus de 12 agents en fiscalité et comptabilité minière• La mise en place effective d’un logiciel spécifique pour l’analyse financière et comptable des projets et la formation d’agents pour son utilisation• La réalisation de plusieurs études comparatives qui ont permis de cerner les insuffisances du Code minier de 1997 et de préparer des éléments pour celui de 2003.

La seconde phase, courant de décembre 2003 à mai 2004, visait la mise en place des textes d’application du nouveau Code Minier adopté le 8 mai 2003 et résultant de la relecture de celui de 1997. Les principaux résultats de cette phase dont les tâches assignées ont été toutes exécutées, sont:

• La rédaction des textes d’application du nouveau Code minier ;

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• La préparation de douze (12) projets de décrets et huit (8) projets d’Arrêtés relatifs à la réglementation minière et portant sur divers aspects dont : (a) la gestion des titres miniers ; (b) la comptabilité et la fiscalité minières ; (c) l’hygiène et la sécurité au travail dans les mines et carrières ; (d) l’environnement minier ; (e) deux modèles de convention type pour les investissements miniers ;• La tenue d’un atelier de restitution organisé le 14 mai 2004 et la préparation et remise d’un rapport final de la phase.

Au cours de cette période, un cabinet local d’avocat a été sélectionné pour la relecture des textes portant sur la commercialisation de l’or. Ainsi, un projet de loi (d’ailleurs adopté par l ‘Assemblée Nationale en novembre 2004), un projet de décret et deux projets d’Arrêté ont été rédigés et validés lors d’un atelier de restitution.

1.2. Résultats de la Composante B.

La composante B qui portait sur "Renforcement des institutions et gestion des ressources" a axé ses activités sur : (a) la mise en place de l’espace de navigation et d’information en géologie, mines et environnement (ENIGME) ; (b) le renforcement des laboratoires du Bureau des Mines et de la Géologie du Burkina (BUMIGEB) ; (c) la mise en place d’un programme d’enseignement de la fiscalité minière à l’Ecole Nationale des Régies Financières (ENAREF) ; et la formation des cadres de l’Administration et du secteur privé.

S’agissant de l’ENIGME, exécuté par la compagnie Tescult International Limitée, les principaux résultats acquis sont les suivants:

• La réalisation d’études diagnostiques et d’études techniques relatives à la mise en place des trois sous-systèmes comprenant le Système National d’Information sur l’Environnement (SNIE), le Système National d’Information sur les Sciences de la Terre (SNIST) et la Base de Données Sectorielles sur les Mines et l’Environnement (BDSME) ;• L'identification, pour chacun des sous-systèmes, des composantes matérielles et des logiciels, la production du modèle physique, la rédaction des manuels d’opérations, l’installation des équipements dans les services bénéficiaires et la mise en route effective des trois sous-systèmes ; • La formation, le renforcement et l’approfondissement des connaissances des agents, en deux phases, pour assurer la fonctionnalité et la pérennité des systèmes ainsi que la bonne gestion des sous systèmes ; et • La restructuration de la bibliothèque et la mise en place d’un module de gestion électronique des documents (GED) au BUMIGEB.

En ce qui concerne le renforcement des laboratoires d’analyses chimiques, de géophysique, de topographie et de minéralogie du BUMIGEB, la mission a été confiée à la société Tec Ingenierie qui a atteint les résultats suivants :

• L’évaluation des besoins en fonction des disponibilités en personnel et équipements, du plan de fonctionnement des structures et des organigrammes des laboratoires ; • La préparation d’un rapport portant sur les formations relatives aux laboratoires sur la

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base des équipements opérationnels présents et complémentaires identifiés et la fourniture de leurs notices de fonctionnement et d’entretien ;• L’installation et la mise en route des équipements y compris la formation du personnel nécessaire pour leur fonctionnement et entretien courant ; • La préparation d’une étude sur la faisabilité de l’unité pilote de traitement de minerais? basée sur une étude de marché, une évaluation des coûts/bénéfices et capacités humaines, un plan de fonctionnement et les spécifications techniques Les conclusions sur la faisabilité étant accompagnées de conditions difficiles à remplir dans l’immédiat, l’avis de l’IDA fut défavorable pour la mise en place de l’unité de traitement des minerais qui a ainsi été abandonnée..

La mise en place du programme d’enseignement sur la fiscalité minière à l’ENAREF a été confiée à un consultant indépendant qui a atteint les objectifs assignés, à savoir :

• L’introduction effective d’un enseignement de la fiscalité minière à l’ENAREF concrétisée par : (a) un début d’enseignement de cette matière dès la rentrée scolaire 2003-2004 et (b) la remise d’un programme à incorporer dans le programme général en cours de modification ;• L’organisation de cinq (5) séminaires, d’un (1) atelier pour les enseignants, les élèves des cycles A et B de l’ENAREF et les agents de contrôle de la DGI.• L’organisation d’un (1) voyage d’étude au Maroc pour quatre (4) professeurs des départements fiscalité et comptabilité de l’ENAREF.

Les formations des cadres de l ‘Administration et du secteur privé ont été assurées par diverses sources autant dans le cadre des contrats de prestations des consultants que sur la base de demandes spécifiques formulées par les ministères. Les principaux résultats se résument à la formation de plus de mille six cent (1600) personnes, sur une quarantaine de thèmes dont une bonne majorité concernent les domaines de l’informatique, de l’environnement, de la géologie et des mines, de la gestion des projets et de l’Anglais.

1.3. Résultats de la Composante C

La composante C qui portait sur la gestion de l’environnement a été exécutée par le groupement de consultants ANTEA-groupe BRGM/SOCRESE. Les principaux résultats ont été :

• L’établissement d’une base de données de cent soixante quinze (175) projets et programmes environnementaux existant au Burkina Faso ;• La réalisation d’études hydrauliques des sites miniers d’Essakane, Bomboré et Poura, accompagnée de l’élaboration de schémas d’aménagement qui ont été affiné grâce à une cartographie au GPS (Global Position System) ;• La formation de trois cent soixante quinze (375) personnes dont 70% issues des administrations centrales de sept ministères différents, 9% des structures déconcentrées de ces mêmes ministères et 21% du secteur privé et de la société civile. Les formations ont été réalisées à travers quinze (15) séminaires et sept (7) voyages d’études portant sur des thèmes différents. Vingt une (21) personnes ont également bénéficié de formations spécifiques de courte durée ;• L’élaboration d’un guide des audits environnementaux à partir de la réalisation de trois audits pilotes portant sur l’usine de la Société des Piles du Faso (SOFAPIL), de la centrale thermique de Ouaga II de la Société Nationale Burkinabè d’Electricité (SONABEL) et de l’unité d’extraction du granite de Yagma;

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• La réalisation, avec la collaboration des membres du Programme National de Gestion de l’Information sur le Milieu (PNGIM), du premier rapport sur l’état de l’environnement au Burkina Faso (REEB) ; • L’élaboration et la mise en œuvre d’un programme national de promotion et de développement des études d’impact sur l’environnement (EIE) ;• La mise en place d’un programme d’éducation environnementale qui a abouti à l’élaboration d’un Plan d’Action National d’Education Environnementale pour le Développement Durable (PANEEDD)

1.4. Résultats de la Composante D

La composante D du projet a porté sur l’amélioration des exploitations minières artisanales et la promotion de l’exploitation minière à petite échelle.

Les activités se sont déroulées en deux phases. Les principaux consultants impliqués ont été GEOMAN Consult/Teams et le Groupement de consultants GEOMAN Consult/TEAMS/ MINOREX. Sont également intervenus, le BUMIGEB pour les substances utiles et le Comptoir Burkinabè des Métaux Précieux (CBMP) pour l’utilisation du mercure dans le traitement artisanal des minerais aurifères.

Les actions de la première phase, exécutées en cinq volets, ont eu pour principaux résultats :• Le renforcement des structures chargées de la promotion de la petite mine par : (a) la réalisation de schémas d’organisation adoptés par deux ateliers; (b) le partage de l’expérience ghanéenne à travers un voyage d’étude ; et (c) l’élaboration de fiches types d’inspection des sites ;

• La réalisation du rapport sur l’état de l’environnement, des conditions socio-économiques, de santé, d’hygiène et de sécurité sur 5 sites d’orpaillage, accompagnée de propositions de solutions d’amélioration de la situation. Sur cette base des messages pertinents ont été montés dans le cadre d'une campagne de sensibilisation;• L’organisation effective d’une campagne de sensibilisation sur les questions sanitaires, environnementales et sécuritaires par une équipe pluridisciplinaire sur neuf (9) sites d’orpaillage. Plus de dix mille (10.000) orpailleurs y ont été touchés à travers des théâtre-forum et des projections de films vidéo;• La mise en place d’infrastructures sociales (forages d’eau et latrines sur les sites d’orpaillage de ALGA et de TOUROUBA, et une garderie d’enfants sur le seul site de ALGA); • L’élaboration d’une proposition de mécanisme de financement des opérations minières à petite échelle à partir d’un inventaire et d’une évaluation des mécanismes de financement existant au Burkina et des fonds régionaux, suivie de l’organisation d’un atelier de restitution des résultats obtenus à l'issue duquel le Centre de Développement de l'Entreprise (CDE) de l'Union Européenne (UE) a assuré 70% du financement des études de faisabilité de six (6) projets;• L’équipement de trois (3) sites avec des concasseurs à mâchoires et des broyeurs à marteau de fabrication locale et la formation des artisans locaux à leur utilisation. Ceci a contribué à une forte amélioration des rendements liés au gain de temps et à l’augmentation du taux de récupération de l’or qui est passé en moyenne de trente cinq pour cent à au moins soixante quinze

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pour cent.. • L’évaluation du potentiel aurifère de Bouda en vue de l’installation d’un centre pilote de traitement et de formation. L’activité a été arrêtée pour raison de taux de rentabilité interne (TRI) insuffisant.

Les actions de la deuxième phase ont été réparties en quatre (4) volts complétés par : (a) une campagne relative à l’utilisation du mercure dans le traitement artisanal des minerais aurifères, et (b) une étude pilote pour la valorisation des substances utiles au Burkina Faso. Les principaux résultats obtenus ont été:

• La formation, sur dix (10) sites, de 17 agents provenant des structures du MCE et du MECV. Cette formation a été suivie d’une inspection sur dix autres sites ;• L’équipement en unité de traitement et la mise en place d’infrastructures sociales (4 forages d’eau, un puits à grand diamètre, 5 garderies d’enfants, 10 latrines) sur cinq (5) sites d’orpaillage après la réalisation d’une évaluation géologique sommaire ;• La réalisation d’une campagne de sensibilisation et d’éducation sur les problèmes d’environnement, de santé, d’hygiène et de sécurité sur dix (10) sites sélectionnés sur 24 visités. Comme au cours de la première phase, la sensibilisation a été faite à travers des théâtres forum et des films vidéo ;• L’organisation, sur onze (11) sites, par une équipe pluridisciplinaire, d’une campagne de sensibilisation, d’évaluation et de démonstration du retort pour l’utilisation du mercure dans le traitement artisanal des minerais aurifères. • L’inventaire des exploitations de substances utiles autour des villes de Ouagadougou, Bobo-Dioulasso, Dédougou et Tenkodogo et l’identification de deux sites de carrière (latérite et granite). Cependant les équipements d’exploitation n’ont pu être mis en place que sur un site de concassage de granite à BALLOLE aux environs de Ouagadougou.

2. LES IMPACTS DU PRECAGEME

Les impacts du PRECAGEME devraient être évalués plus tard sur le moyen et long terme. Mais, déjà, au niveau des différentes composantes, on note de nombreux impacts dont beaucoup peuvent se rapporter aux indicateurs de performance révisés du projet.

2.1. Impacts de la composante A.

Au nombre des impacts résultant des activités de la composante A, on peut citer :• La plus grande prise de conscience des particularités du secteur minier par les autorités et les différentes parties prenantes nationales, ce qui a facilité l’adoption du code minier de 2003 résultant de la relecture du Code de 1997 dont les insuffisances ont été mises en évidence grâce à aux études comparatives.• La bonne appréciation de l’Union Economique et Monétaire Ouest Africaine (UEMOA) des nouveaux dispositifs légaux et réglementaires burkinabè qu’elle a utilisé comme modèles pour la sous-région, dans la rédaction du Code Communautaire.• Le regain de confiance et d’intérêt de la part des investisseurs miniers. Ainsi, les dépenses d’exploration sont restées assez soutenues en se situant à 3,8 millions de $US en 2003 (pour 3 à 5 attendus) et 4,3 millions $US en 2004 (pour 5 à 7 attendus); le nombre de titres miniers délivrés a

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été de 26 en 2003 et 72 en 2004 contre seulement 7 en 2002. • La réduction des délais de délivrance des titres miniers qui sont passés de quatre vingt dix (90) à une moyenne de trente (30) à quarante cinq (45) jours; la rotation de 8% en 2003 et 2004 (pour 10% attendus annuellement) des permis en pourcentage de la superficie totale des titres miniers; le bon pourcentage d’inspection des titres miniers (50% et 25% en 2003 et 2004 respectivement, contre 50% prévus).• L’augmentation du nombre de cabinets de consultants miniers qui s’est situé à 9 contre 8 attendus en 2003 et 10 contre 10 attendus en 2004.• Le nombre appréciable d’études de faisabilités achevées pour une exploitation minière industrielle : 3 contre 1 et 2 respectivement attendus en 2003 et 2004 ;• La facilité d’accès aux informations grâce à la réalisation du centre de documentation minière dont le site web (www.infomines.bf) est accessible ;• La plus grande aisance des cadres formés dans l’utilisation de l’outil informatique et dans leurs rapports avec les investisseurs miniers.

2.2. Impacts de la composante B.

Concernant la composante B, ses impacts les plus significatifs sont :• Une gestion moderne plus efficace de l’information environnementale qui a conduit à une utilisation effective du SNIE comme aide au contrôle ou à la prise de décision. Tel a été le cas pour l’analyse croisée du potentiel en biomasse et des statistiques d’effectifs de cheptel en vue de la validation des résultats de la 2

ème Enquête Nationale sur les Effectifs de Cheptel (ENEC2) et de

l’élaboration d’une base de données à référence spatiale sur les indicateurs environnementaux en vue de la sélection des zones à risque élevé économique et social dans le cadre de la formulation d’un projet de lutte contre la pauvreté ;• L’accroissement du nombre de demandes de données et d’information de la part des compagnies minières du fait des meilleures capacités de gestion de l’information géologique du SNIST qui rassure et attire plus les investisseurs;• Une plus grande facilité de diffusion de l’information sur le secteur minier du Burkina (législation et réglementation particulièrement) par ailleurs disponible grâce au site web de la BDSME (www.bdsme.gov.bf);• La manifestation d’une plus grande confiance des clients internes et externes du BUMIGEB en raison des bonnes performances des nouveaux équipements fournis dont le haut degré d’automatisation et les grandes capacités analytiques rassurent et se manifestent par certaines expressions concrètes de satisfaction. Par exemple, la société BMC/Etruscan qui prépare l'exploitation imminente du site aurifère de Youga a exprimé toute sa satisfaction des prestations du BUMIGEB en géophysique.• L’instauration d’une plus grande compréhension des acteurs de la fiscalité vis-à-vis des compagnies minières grâce à l’instauration effective de l’enseignement de la fiscalité minière à l’ENAREF et des voyages d’études organisés dans ce cadre. Trente deux (32) agents ont été formés à raison de 6 en 2002, 6 en 2003 et 20 en 2004 contre des prévisions de vingt (20) pour chacune des années ;• L’extension de la sensibilisation à la fiscalité minière au-delà des frontières du Burkina par le canal des étudiants de sept autres pays de l’Afrique de l’Ouest et du Centre.

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2.3. Impacts de la composante C.

Les activités du PRECAGEME au niveau de la composante C ont eu pour impacts notables :• La création d’une synergie positive entre les diverses composantes de l’Etat concernées par les problèmes environnementaux • Une prise de conscience générale de la question environnementale se traduisant par : (a) une prise en compte effective de la composante environnementale dans les différents textes législatifs et réglementaires portant sur le développement ; (b) la multiplication des cellules environnementales dans les départements ministériels ; (c) la création du Réseau des Communicateurs Burkinabè pour l’Environnement (RCBE) et (d) la création ou la réactivation de cellules environnementales dans des sociétés telles que l’Hôtel Indépendance et la SONABEL ; • La mise à disposition du premier Rapport sur l’Etat de l’Environnement au Burkina Faso (REEB) et d’outils méthodologiques pour la gestion de l’environnement (guide d’étude environnementale, guide de recensement des projets environnementaux etc.) ;• Une évolution institutionnelle notable (transformation du CONAGESE en CONEDD ; création de la Direction des Evaluations Environnementales (DEE), de la Direction de la Réglementation et des Inspections Environnementales (DRIE); du corps des inspecteurs environnementaux etc.) ;• L’organisation de tournées annuelles d’inspection conformément aux prévisions de l’IDA (deux par an) en 2003 et 2004. Le nombre d’inspection de sites miniers artisanaux se sont élevés à 10 par an depuis 2002 contre des prévisions de 6 en 2002 et 8 pour 2003 et 2004.

2.4. Impacts de la composante D.

En ce qui concerne la composante D, ses principaux impacts déjà perceptibles sont :• La prise en compte des exploitations minières artisanales et à petite échelle dans les nouveaux textes législatifs et réglementaires. Ceci est le signe d’une plus grande reconnaissance du rôle important qu’elles peuvent jouer dans la lutte contre la pauvreté ;• L’inscription d’une partie des fonds PPTE pour la promotion de ce secteur ;• L’intérêt grandissant du secteur privé national se traduisant par son implication de plus en plus prononcée autant dans l’exploitation que dans les activités connexes telles que la fabrication de matériels de traitement ;• La mise en place effective d’associations d’orpailleurs et une meilleure organisation des sites d’orpaillage se traduisant par la séparation des différentes zones d’activité (exploitation, traitement, commerce etc.);• L’amélioration notable des conditions d’exploitation et de traitements grâce aux équipements fournis par le projet. Il en résulte des meilleurs rendements (75 à 85% d’or contenu récupéré contre seulement 25% à 35% sans les équipements) permettant un accroissement des revenus ;• La diminution des maladies gastriques grâce à l’utilisation d’eau de forages réalisés par le projet et de maladies pulmonaires grâce au port de masques contre la poussière, à l’isolement des enfants dans les garderies et au traitement du minerai sous atmosphère humide avec les équipements ;• Le changement de comportement par rapport aux VIH/SIDA et aux IST : la vente des condoms a augmenté sur les sites qui ont bénéficié des campagnes de sensibilisation ;

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• Une plus grande prise de conscience par rapport aux risques que présente l’utilisation imprudente du mercure dans le traitement des minerais aurifères ;• L’allongement de la durée de vie des sites équipés, les orpailleurs restant plus longtemps (et même ceux qui étaient partis reviennent) parce que les performances des équipements installés permettent de traiter les minerais pauvres avec profit ;• L’extension de l’utilisation des équipements de traitement promus par le PRECAGEME dans les pays voisins (Mali et Niger). La Société de Recherche et de Construction (SRC) a déjà vendu au Niger alors que la Société Ouest Africaine de Fonderie (SOAF) envisage d'installer un atelier de fabrication à Sikasso au Mali.

VALORISATION ET PERENNISATION DES ACQUIS DU PRECAGEME

Les acquis du PRECAGEME ont commencé à avoir des impacts appréciables qu’il conviendrait de valoriser et pérenniser pour que le Burkina en tire le maximum de profit. A cet effet, des suggestions sont formulées composante par composante.

3.1. Suggestions pour la valorisation et la pérennisation des acquis de la composante A

Pour valoriser et pérenniser les acquis de la composante A, des mesures devraient être prises pour :

• Accélérer l’examen et l’adoption des textes réglementaires d’application du code minier adopté en mai 2003 tout en veillant à l’adaptation continue du cadre légal mis en place par rapport à l’évolution de l’environnement du secteur minier ;• Assurer une maintenance suivie des équipements informatiques du cadastre minier et du centre de documentation minière, un renouvellement régulier des équipements et logiciels, un recyclage des agents formés et leur utilisation rationnelle ; • Garantir la mise à jour permanente des informations pour permettre au CDM de jouer effectivement son rôle en maintenant l’intérêt des utilisateurs ; 3.2. Suggestion pour la valorisation et la pérennisation des acquis de la composante B

S’agissant de la composante B, les mesures à prendre pour la valorisation et la pérennisation des acquis devraient comprendre :

• La prise rapide d’un acte réglementaire clarifiant le statut administratif et juridique de l’ENIGME pour mieux garantir et renforcer la collaboration à la fois entre les trois sous-composantes (SNIE, SNIST et BDSME) et entre elles et tous les autres partenaires nationaux ;• La normalisation des procédures de collecte, traitement et diffusion de l’information géologique, minière et environnementale et la finalisation de la numérisation et catalogage des documents pour faciliter les échanges en réseau;• La dotation des structures chargées de ces composantes, en moyens de déplacement adéquats afin d’assurer la collecte régulière des données sur le terrain ;• L’accélération des démarches pour l’accréditation rapide des laboratoires du BUMIGEB et la mise en œuvre d’un programme dynamique de marketing pour faire connaître les nouvelles possibilités offertes par ces laboratoires;

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• La sécurisation des équipements contre les variations de tension électrique, la garantie de leur maintenance, entretien et renouvellement et le recyclage conséquent des personnels chargés du fonctionnement des sous-composantes de l’ENIGME et des laboratoires du BUMIGEB;• La pérennisation de l’enseignement de la fiscalité minière à l’ENAREF par un soutien continu à la formation des formateurs, une implication de responsables du secteur minier dans les réflexions actuellement menées par rapport à cet enseignement, l’association de l’ENAREF à la conception d’éventuels autres projets et l’établissement d’une coopération avec le Centre d’Enseignement à Distance de Ouagadougou (CEDO).

3.3. Suggestions pour la valorisation et la pérennisation des acquis de la composante

Les suggestions faites en vue de valoriser et pérenniser les acquis de la composante C incluent :• La révision périodique du rapport sur l’état de l’environnement au Burkina Faso, la finalisation et la mise en place d’une comptabilité environnementale ;• L’adoption rapide des textes d’application des différents codes adoptés en rapport avec l’environnement et l’élaboration d’outils (guides sectoriels d’étude d’impacts sur l’environnement, d’enquête publique, fiches d’enquête motivée etc.) pour aider les services chargés de la surveillance environnementale; • La poursuite des campagnes de sensibilisation sur les questions environnementales et la mise en place de cellules environnementales dans les départements ministériels, les sociétés industrielles privées et autres ;• La prise de mesures pour assurer la poursuite du renforcement des capacités à travers des formations, des recyclages et un soutien actif à la mise en place d’une association des professionnels de l’environnement.

3.4. Suggestion pour la valorisation et la pérennisation de la composante D

La valorisation et la pérennisation des acquis de la composante D impliquent :• Le renforcement de l’appui aux promoteurs de sites artisanaux par : (a) la mise rapide à leur disposition, dans des conditions douces, des équipements et infrastructures fournis par le projet, (b) la mobilisation de fonds d’assistance pouvant leur accorder des prêts, (c) la recherche et l’identification des réserves (d) l’élévation de leurs capacités de gestion à travers des séminaires, (e) le support à l’entretien et au renforcement des infrastructures sociales sur les sites ; et (f) le soutien à la création d’une association des promoteurs pour favoriser des échanges d’expérience ; • Une assistance effective aux fabricants de matériels et équipements de traitement pour les aider à faire sortir ces matériels et équipements de leur état actuel de prototypes pour devenir des produits plus performants pour les utilisateurs;• La poursuite des efforts pour le financement de l’évaluation des réserves et l’installation de centres pilotes à titre de démonstration pour attirer de nouveaux investisseurs locaux et encourager l’évolution des promoteurs vers ce niveau supérieur d’opération minière ;• Le renforcement conséquent des structures techniques d’appui à l’exploitation minière à petite échelle (DEMPEC et BUMIGEB) pour leur permettre de jouer avec beaucoup plus d’efficience le rôle qui leur est dévolu et rapprocher la DEMPEC des principales zones d’activité par une décentralisation appropriée ;

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• La poursuite, le renforcement et l’extension des campagnes de sensibilisation relatives aux questions environnementales, sanitaires, sécuritaires, de fraude et à l’utilisation du mercure pour le traitement des minerais aurifères ;• La promotion du ravitaillement des sites d’orpaillage en certains équipements de protection tels que les gants, les masques et les casques ainsi qu’en matériels de traitement plus sécurisant des minerais aurifères tel que le retort ;• La prise en compte de la réhabilitation des sites d’orpaillage abandonnés dans le cadre des activités financées par les fonds PPTE afin de minimiser les dangers permanents que leur abandon en l’état constituent pour les personnes et les animaux et de rendre ces zones exploitables au plan agricole.

RECOMMANDATIONS POUR DES ACTIONS FUTURES

L’exécution du Projet de Renforcement des Capacités Nationales du Secteur Minier et de Gestion de l’Environnement (PRECAGEME), à travers ses différentes composantes, a débouché sur de nombreux résultats qui ont déjà un certain nombre d’impacts dont les plus importants ont été soulignés. En plus des suggestions déjà faites pour la valorisation et la pérennisation de ces résultats, certaines recommandations, dont l’application va permettre au Burkina Faso de tirer le plus grand bénéfice de ces acquis, sont formulées ci-dessous. Celles-ci concernent notamment :

L’application effective du cadre légal et réglementaire attractif adopté : En effet, seule une application transparente et diligente de ces dispositions lors de l’examen des dossiers relatifs aux titres miniers pourra garantir le maintien de l’attrait actuellement constaté. Ceci suppose, évidemment, que les textes réglementaires d’application du Code minier de 2003 soient adoptés dans les meilleurs délais possibles.

La participation effective de l’Etat à la gestion des acquis : Certes, le Gouvernement et certaines structures telles que le BUMIGEB ont déjà pris des mesures dans ce sens (soit dans le cadre du budget de l’Etat, soit dans le budget desdites structures, soit encore dans le cadre des fonds PPTE), mais ces efforts doivent être renforcés et pérennisés. Ce sont ces efforts soutenus qui apporteront la preuve de la détermination des autorités burkinabè à promouvoir les secteurs miniers et environnementaux et motivera les partenaires du Burkina dans la fourniture d'aides complémentaires.

L’initiation d’actions de promotion : Pour mieux profiter et capitaliser les acquis, des actions de promotion sont indispensables. Au plan international, tous les fora devraient servir de théâtre pour faire connaître les nouveaux cadres légaux et réglementaires attractifs régissant les secteurs miniers et environnementaux du Burkina. Au plan national, l’organisation d’un forum réunissant les promoteurs (actuels et potentiels), les fabricants de matériels d’exploitation et de traitement, les sources potentielles de financement etc. contribuerait à renforcer l’implication du secteur privé national dans les activités minières.

L'exploitation judicieuse des recommandations: Pour mieux exploiter aisément les dizaines de

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recommandations formulées par les ateliers et séminaires organisés pendant l'exécution du projet, il serait bon de les rassembler dans une même brochure qui pourra utilement servir comme réservoir d'idées pour des actions futures relatives au développement durable des ressources naturelles en général et des ressources minérales en particulier.

La résolution des problèmes liés à l'utilisation du mercure et à l'abandon désordonné des sites d'orpaillage: Compte tenu des graves risques de pollution liée à l'utilisation du mercure dans le traitement artisanal des minerais aurifères et à l'abandon désordonné des sites d'orpaillage semés d'excavations et de puits d'exploitation, il serait souhaitable que des mesures urgentes soient prises, pour leur trouver des solutions. A cet effet, un projet spécifique pourrait être initié, à moins que ces questions ne soient prises en compte dans un "PRECAGEME 2".

Le soutien de la Banque Mondiale : La Banque, à travers l’IDA, a consenti de gros efforts louables pour amener le Burkina à réussir un renforcement appréciable de ses capacités de gestion du secteur minier et de l’environnement. Cependant, elle doit admettre que ceci reste encore fragile et donc s’associer au Gouvernement pour que les acquis soient portés à un point de non-retour. Cette aide peut se traduire dans un autre projet spécifique financé par l’IDA ou par son intervention pour convaincre d’autres partenaires à prendre le relais.

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Additional Annex 9. Selected photos of artisanal mining

New Small Jaw Crusher

Women Pounding Gold Ores

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Techniques for sluicing gold

New small milling maching

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