The World Bank Report No: ISR14100 Implementation Status & Results Argentina Argentina Mining Environmental Restoration Project (P110462) Public Disclosure Copy Operation Name: Argentina Mining Environmental Restoration Project Project Stage: Implementation Seq.No: 11 Status: ARCHIVED Archive Date: 26-Oct-2014 (P110462) Country: Argentina Approval FY: 2009 Product Line: IBRD/IDA Region: LATIN AMERICA AND CARIBBEAN Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 31-Jul-2008 Original Closing Date 30-Nov-2013 Planned Mid Term Review Date 01-Dec-2012 Last Archived ISR Date 10-Mar-2014 Effectiveness Date 28-Apr-2010 Revised Closing Date 30-Aug-2015 Actual Mid Term Review Date 03-Dec-2012 Project Development Objectives Project Development Objective (from Project Appraisal Document) The development objectives of the project are to: (a) strengthen Government of Argentina's capacity to assess and mitigate environmental risks associated with closed uranium mines, processing sites, and related mining sector investments in accordance with international good practice; and (b) reduce potential economic and health damages associated with a closed uranium mining site in Malargue, Mendoza. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Component 1. Remediation of the Malargue Site 17.75 Component 2. Mine Restoration Planning and Institutional Strengthening 11.60 Component 3. Project Management 1.25 Public Disclosure Copy Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Unsatisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Implementation Status Overview This ISR was prepared following the supervision mission that took place between May 23-29, 2014 and a technical visit to Malargüe site on June 17, 2014. Locations Page 1 of 6 The World Bank Report No: ISR14100 Country First Administrative Division Location Planned Actual Argentina Not Entered Malargüe Public Disclosure Copy Not Entered Not Entered Malargüe ✔ Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target CNEA laboratories where PRAMU analysis are Text Value 0 100% 100 carried out implement ISO 17025 procedures Date 28-Apr-2010 14-Sep-2014 30-Aug-2015 for its quality, administrative and Comments No CNEA labs are certified. 100% of the laboratories 100% of CNEA labs certified technicaloperations, and are certified by COCALIN. implement ISO 17025 and operational procedures and are certified by COCALIN. Also, the laboratory in San Rafael is certified by the OAA. All potential health and economic risks Text Value 0 53% 100 associated with the Malargue site to be Date 28-Apr-2010 14-Sep-2014 30-Aug-2015 addressed through the implementation of Comments There is an advance of 53% remediationplans agreed with stakeholders. in this activity. Environmental risks in other seven CNEA sites Text Value 0 2 sites:100% 100 identified, management plans evaluated, 5 sites: 10% disclosed and agreed with stakeholders. Date 28-Apr-2010 14-Sep-2014 30-Aug-2015 Comments Not known. A needs 100% of the baseline studies 100% completion of selected assessment will be completed and radiological studies were sites in year 1 of the project. The done in two sites in Cordoba number and location of non- (superficial and underground uranium sites will be selected water, air andsoil). The following the needs evaluation of the other 5 sites Public Disclosure Copy assessment. is under implementation Environmental monitoring procedures for Text Value Six provinces 30% management of mining operations and/or Date 25-Jul-2013 14-Sep-2014 30-Aug-2015 former uranium mining sites have been Comments Capacity building on Environmental monitoring transferred togovernment agencies government agencies is procedures transferred to delayed. Three courses have 100% of government been held which represents a agencies in which the project 30% approximately of the have implemented actions indicator target 10. PRAMU agreed to prepare a plan in Page 2 of 6 The World Bank Report No: ISR14100 consultation with the 6 provincial governments. Intermediate Results Indicators Public Disclosure Copy Indicator Name Core Unit of Measure Baseline Current End Target Environmental Information Management Percentage Value 0.00 5.00 100.00 System developed and under implementation, Date 14-Sep-2014 consistent with best international practices, and Comments The bidding process for the including data on all Project sites design and development of the SIGA system (Environmental Information Management System) is underway. Environmental monitoring information was developed in ArcGIS for 3 sites. Percentage of planned site remediation works Text Value 0 53% 100 completed Date 28-Apr-2010 14-Sep-2014 30-Aug-2015 Comments Works at Malargue are at 100% of works complete 53% of advance. Percentage of contaminant exposure levels Text Value 0 53% advance in civil works 100% which have been reduced at or below the Date 28-Apr-2010 14-Sep-2014 30-Aug-2015 defined standards Comments None Progress in civil works at Malargue, including reduction of sources of exposure, will guarantee that exposure levels are reduced and mostly below national standard levels Evidence that public information campaigns are Text Value 0 50% 100 relevant, meangingful and meet or exceed Date 28-Apr-2010 14-Sep-2014 30-Aug-2015 stakeholder expectations Public Disclosure Copy Comments Basic communications plan is Public communication Surveys complete and in place strategy was developed in monitoring program in place Malargue and new activities demonstrating the success in are being organized. A social campaigning. survey will be done in Cordoba during 2014. Proportion of government agencies identified, Percentage Value 0.00 2.00 7.00 included in action plans and participating in Date 14-Sep-2014 institutional strengthening activities Comments Agencies in Cordoba and Malargüe participated in Page 3 of 6 The World Bank Report No: ISR14100 institutional strengthening activities. An action plan is being developed by PRAMUto define the way to reach Public Disclosure Copy government agencies. Proportion of field samples and lab analysis Percentage Value 0.00 100.00 100.00 which adhere to QA/QC procedures Date 28-Apr-2010 14-Sep-2014 30-Aug-2015 Comments QA/QC procedures for Malargue and other sites have been standardized and are under implementation Communication strategies under Text Value 0 1 campaing achieved 3 implementation at relevant CNEA sites (Malargue) included in the Project Date 14-Sep-2014 Comments A communication strategy was developed and implemented in Malargüe. A social survey is been planned for Cordoba sites. A communication strategy will follow, this survey. Design of public (green) space at the Malargüe Text Value 0 10% site agreed with stakeholders and with Date 14-Sep-2014 municipality and preliminary works initiated Comments The design of the public park is being prepared for its contracting and define with inputs from local community. Number of CNEA sites with completed Number Value 0.00 3.00 8.00 assessments of legacy issues, engineering Date 14-Sep-2014 designs for remediation measures, Comments 8 sites (Tonco, Los Gigantes, Environmental liabilities environmental impact assessments under consultation El Chichon, Los Colorados, assessments have been Public Disclosure Copy La Estela, Malargue, Huemul, developed in 3 sites. Pichinan) and 6 provinces Engineering studies for the (Cordoba, Salta, Chubut, San remediation of 2 sites were Luis, La Rioja, Mendoza) developed. The environmental impact assessment for 1 site was developed and was consulted (Malargue). Currently environmental evaluationof 5 site is under development. Page 4 of 6 The World Bank Report No: ISR14100 Number of CNEA laboratories with installed Percentage Value capacity for monitoring environmental Date 14-Sep-2014 parameters (including radiological) on water, Comments 100% of the laboratories have soiland air samples, which are accredited by Public Disclosure Copy COCALIN installed capacity Data on Financial Performance (as of 02-Oct-2014) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P110462 IBRD-75830 Effective 31-Jul-2008 01-Feb-2010 28-Apr-2010 30-Nov-2013 30-Aug-2015 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P110462 IBRD-75830 Effective USD 30.00 30.00 0.00 13.51 16.49 45.00 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation The supervision mission and technical visit concluded that the Project even though is progressing well, there are concerns that current delays on current works can affect the achievement of the Project Development Objectives before the closing date on August 30, 2015. Disbursements percentage is 42 % of the project loan and it is estimated that disbursements could rise to 70%, approximately, towards the end of 2014. Page 5 of 6 The World Bank Report No: ISR14100 Component 1: The advance of the remediation works in the Malargüe site (where a uranium processing facility used to operate) was reviewed both during the mission and the technical visit. The remediation works (of about 380,000 m3 of tailings) are around 53% advanced while the delays are estimated around 15% according to the schedule prepared in February 2012. According to CNEA y PRAMU, the encapsulation works of the contaminated material will be finished by January, 2015 and all the contracted works in Malargue will be concluded by August, 2015 and before the closure day (August 30, 2105). However, the Bank team is concerned with the delays and PRAMU has requested the contractor a Public Disclosure Copy proposal to review alternatives to accelerate the works. Component 2: The PRAMU and Bank teams worked successfully in order to advance with the Bank´s No Objection to the negotiation and adjudication of the contract for the environmental evaluation of environmental issues in five legacy sites of CNEA in four provinces of Argentina. The results of these studies will provide CNEA with technical information for the design of the future environmental remediation of this five mining legacy sites. The PRAMU has advancing in the coordination with the government and municipal representatives from Cordoba to identify the possible alternatives of remediation of El Chichón” site in Córdoba where a uranium processing facility used to operate. The project is now preparing the terms of reference for social studies that can collect the opinion of the different stakeholders regarding the remediation of this site. Restructuring History Level two Approved on 25-Jul-2013 Related Projects There are no related projects. Public Disclosure Copy Page 6 of 6