Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) MN-Mining Infrastructure Investment Supp (P118109) EAST ASIA AND PACIFIC | Mongolia | Energy & Extractives Global Practice | IBRD/IDA | Specific Investment Loan | FY 2011 | Seq No: 9 | ARCHIVED on 17-Dec-2015 | ISR21500 | Implementing Agencies: Key Dates Key Project Dates Bank Approval Date:10-May-2011 Effectiveness Date:20-Nov-2011 Planned Mid Term Review Date:31-Oct-2013 Actual Mid-Term Review Date:31-Oct-2013 Original Closing Date:30-Sep-2016 Revised Closing Date:30-Sep-2016 Project Development Objectives MN-Mining Infrastructure Investment Supp (P118109) Project Development Objective (from Project Appraisal Document) To facilitate investments in infrastructure to support mining and downstream processing activities, regardless of funding source, and to build local capacity to prepare and transact infrastructure projects. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Name Support for Infrastructure Investments:(Cost $18.11 M) Capacity Building and Knowledge Transfer:(Cost $2.47 M) Strengthening Groundwater Management:(Cost $5.33 M) Project Management:(Cost $1.19 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Satisfactory  Moderately Satisfactory Overall Implementation Progress (IP)  Moderately Satisfactory  Moderately Satisfactory Overall Risk Rating  Substantial  Substantial 12/17/2015 Public Disclosure Copy Page 1 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) Implementation Status and Key Decisions The project has been making steady progress regarding the preparation of the assessment studies for the six priority sub-projects which include: (i) Orkhon Gobi Water (OGW); (ii) Shuren Hydropower plant (SHP); (iii) Integrated Steel Complex with Infrastructure in the central region of Darkhan- Selenge (SC); (iv) Extension of Coal Mine "Baganuur" LLC. (BCM); (v) a Rural and Industrial Water Supply Scheme in the South Gobi region (RIWS); and (vi) Synthetic Natural Gas Plant (SNG); and some other pre-feasibility studies. No infrastructure investments are eligible for financing under this project. The pre-feasibility study for Shuren Hydropower sub-project as well as the preparatory study for Orkhon Gobi river flow regulation sub-project have been finalized. Feasibility Study (FS) and the Cumulative Impact Assessment (CIA) for Baganuur Coal mine are ongoing, the shortlisting for the Synthetic Natural Gas (SNG) and the Steel Complex (SC) FSs have been completed and the shortlisting for SHP and (OGW) FSs have been concluded and ready for clearance. In addition, the shortlisting for the Environmental and Social Impact Studies (ESIAs) for the SNG and SC have been launched. On the other hand, the ToRs for the ESIAs of both SHP and OGW projects are being finalized. The Project is playing a significant role in building the capacity of Ministry of Environment Green Development and Tourism, Ministry of Finance, Ministry of Energy, Ministry of Mining, Ministry of Industry and other institutions in the areas of project preparation, contract management, public- private partnership, water resources management, iron ore processing and the development of new transactions. Good progress has been made towards strengthening capacity in groundwater management. The three newly established River Basin Administrations of South Gobi Region are well staffed and becoming functional and the groundwater monitoring system started to function and data is being collected. 12/17/2015 Public Disclosure Copy Page 2 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  Moderate  Moderate Macroeconomic  --  Moderate  Moderate Sector Strategies and Policies  --  Moderate  Moderate Technical Design of Project or Program  --  Moderate  Moderate Institutional Capacity for Implementation and Sustainability  --  Substantial  Substantial Fiduciary  --  Moderate  Moderate Environment and Social  --  Substantial  Substantial Stakeholders  --  Moderate  High Other  --  --  -- Overall  --  Substantial  Substantial Results Project Development Objective Indicators PHINDPDOTBL  At least two key infrastructure assets ready for tender (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target This target has been FSs and ESIAs for the achieve as 5 PPP six priority projects Two Technical/financial transactions have been financed by the project transactions Value understanding to prepare signed in 2014. are all at various stages are ready for transactions lacking. Moreover, the FS for of preparation. The most tendering. the extension of advanced are the FS 12/17/2015 Public Disclosure Copy Page 3 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) Baganuur Coal mine is and CIA for Baganuur under preparation while Coal Mine which are the shortlisting for the both under selection of consultants implementation. The for Both SHP and TORs and procurement OGW is being for the studies for the concluded. other 5 subprojects are at various stages of preparation. Date 30-Apr-2010 30-May-2015 15-Nov-2015 31-Dec-2015 Comments The actual data related to the current ISR reports on the status of the studies for the six priority subprojects that are being financed by the project. In the previous ISR, data was provided on the 5 PPP transactions however, the preparation of these transactions were not directly financed by the project. Rather, the preparation of these transactions was financed and implemented by the government outside of the scope of the project, but benefiting from capacity building under the project. In this ISR and going forward, the team has deemed it prudent to only report on outcome indicators with respect to the six priority subprojects that are part of the project, hence the adjustment to the reporting in this ISR. PHINDPDOTBL  Good practice and procedures established to prepare projects for public and private financing (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Completed through the Achieved through the training offered to training offered to Ministry of Finance, Ministry of Finance, Ministry of Energy, Ministry of Energy, Ministry of Environment Limited understanding of Ministry of Environment Green Development Good practice required studies, no Green Development and Value and Tourism. Ministry and procedures guidelines on economic Tourism. Ministry of of Industry and Ministry adopted. evaluation. Industry and Ministry of regarding the Mining, regarding the preparation of preparation of feasibility feasibility studies and studies and financial and financial and economic economic evaluation. evaluation. Date 30-Apr-2011 30-May-2015 15-Nov-2015 30-Jun-2016 Overall Comments The project is progressing steadily to achieve its objectives. However, it has encountered some delays and closing date extension deemed necessary. The will allow the project to satisfactorily achieve its objectives with high expectation that PDO indicators will be exceeded. Global Environmental Objective Indicators Overall Comments Intermediate Results Indicators 12/17/2015 Public Disclosure Copy Page 4 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) PHINDIRITBL  Direct project beneficiaries (Number, Core) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 5546.00 5685.00 1400.00 Date 30-Apr-2011 30-May-2015 15-Nov-2015 30-Jun-2016 Comments Target exceeded PHINDIRITBL  Female beneficiaries (Percentage, Core Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 36.40 38.10 30.00 PHINDIRITBL  Feasibility studies for infrastructure projects (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Pre-feasibility study for one transaction is complete, FS for one Ongoing. Feasibility Complete transaction is under Study for one feasibility Studies for priority projects preparation, three FSs transaction is under studies for Value not available. are ready for tendering finalization while other 4 ongoing and the FSs ToRs for are soon to be under infrastructure the remaining 2 sub- procurement. projects. projects are under finalization. Date 30-Apr-2011 30-May-2015 15-Nov-2015 30-Jun-2016 Comments The FSs for OGW, SHP, OSC and the SNG are ready for tendering. 12/17/2015 Public Disclosure Copy Page 5 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) PHINDIRITBL  Rapid response to address issues impacting private investment (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Target has been met since last ISR. Five Target Achieved. Five issues including need issues including need assessment, assessment, information information gathering, gathering, viability and viability and economic economic analysis, analysis, proper proper preparation and Technical/financial support preparation and public Rapid response public consultation were Value to address issues not consultation were to at least five addressed in the course available. addressed in the issues. of the priority sub- course of the priority projects identification sub-projects and the development of identification and the the pre-feasibility and development of the the feasibility studies, pre-feasibility and/or the CIAs and ESIAs. the feasibility studies, the CIAs and ESIAs. Date 30-Apr-2011 30-May-2015 15-Nov-2015 30-Jun-2016 PHINDIRITBL  Training programs and events (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 78.00 93.00 10.00 Date 30-Apr-2011 05-Dec-2014 15-Nov-2015 30-Jun-2016 Comments Target Exceeded PHINDIRITBL  Conferences to promote investment opportunities (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target At least 5 events over the Value none 3 workshops were held 6 workshops were held course of the project. Date 30-Apr-2011 05-Dec-2014 15-Nov-2015 30-Jun-2016 Comments Target Exceeded 12/17/2015 Public Disclosure Copy Page 6 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) PHINDIRITBL  Consultants provide hands-on training and help administer government-financed projects & PPP concessions (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target A number of training programs were offered Staff is well Completed. Five PPP to the Ministry of trained to projects have been Finance and other administer No concessions to Value launched throughout Ministries in the government- administer. 2014 and are well preparation and financed administered. processing of seven projects & PPP PPP transactions since concessions 2011. Date 30-Apr-2011 30-May-2015 15-Nov-2015 30-Jun-2016 Comments Target Achieved PHINDIRITBL  Ability to manage groundwater strengthened (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Substantially Achieved: The RBAs are adequately staffed, have become fully operational and GW management In progress and and monitoring plans are substantially completed under implementation. as the RBAs are fully Groundwater monitoring staffed and continue to Building Insufficient wells in south Gobi are build their capacity capacity for resources/capacity to completed and Value through training in the effective manage groundwater in equipped. Moreover, the field of groundwater groundwater Southern Mongolia. monitoring system is management. The management. functioning and data is River Basin Councils being collected through (RBCs) are not online telemetry for functioning yet. some remote locations and periodic downloading from the other installed data loggers. Date 30-Apr-2011 30-May-2015 15-Nov-2015 31-Dec-2015 12/17/2015 Public Disclosure Copy Page 7 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) PHINDIRITBL  Promotion of appropriate organization structure for groundwater management established (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Completed. Appropriate Development of organization structure the appropriate for the management of Preliminary organization organization the GW in three river Value structure was in place but Completed structure for the basins, consisting of 3 not revised management of RBAs and 3 RBCs, in the GW in three South Gobi was river basins developed. Date 30-Apr-2011 30-May-2015 15-Nov-2015 31-Dec-2013 PHINDIRITBL  Establishment of 3 RBA in Southern Gobi Region (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3.00 3.00 3.00 Date 30-Apr-2011 30-May-2015 15-Nov-2015 30-Jun-2016 Comments Target Achieved. The three RBAs have been established in the Southern Gobi Region. PHINDIRITBL  Agreement to implement important recommendations from water resource pricing studies (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Water resource pricing Water pricing Water resource pricing studies are under recommendatio studies are under Water Resources Pricing process of ns are well Value process of studies are finalized implementation by adapted and implementation by related ministry and enforced by the MoEGDT and RBAs RBAs RBAs Date 30-Apr-2014 30-May-2015 15-Nov-2015 30-Jun-2016 12/17/2015 Public Disclosure Copy Page 8 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) PHINDIRITBL  New Institutional structure financially sustainable (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The Ministry of Finance agreed to initiate the The development of Develop the discussions with fiscal budget plan is fiscal budget Value No plan MEGDT to address the underway for the plan for the fiscal budget plan for established RBAs and RBAs and the RBAs and the the future RBCs. RBCs RBCs. Date 30-Apr-2014 30-May-2015 15-Nov-2015 31-Dec-2014 Comments The Ministry of Finance is in discussion with MEGDT to address the fiscal budget plan for the RBAs and the RBCs. PHINDIRITBL  Improved transparency and public awareness of groundwater resources and the impact of water use and abstraction (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Completed as three Completed as more than Organize Public awareness 3 Public awareness groundwater workshop were workshop were Value No plan public organized between organized between awareness September 17 and 26, September 17 and 26, workshop. 2014. 2014. Date 30-Apr-2014 30-May-2015 15-Nov-2015 30-Jun-2016 Comments Target achieved Overall Comments The project has achieved the majority of its intermediate performance indicators (9 out of 13) the remaining targets are being achieved but the extension of the closing date is necessary to ensure the completion of the feasibility studies for all identified priority sub-projects. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P118109 IDA-48880 Effective USD 25.00 25.00 0.00 10.02 13.11 40% P118109 TF-16382 Effective USD 4.05 4.05 0.00 2.09 1.96 52% 12/17/2015 Public Disclosure Copy Page 9 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P118109 IDA-48880 Effective 10-May-2011 24-May-2011 20-Nov-2011 30-Sep-2016 30-Sep-2016 P118109 TF-16382 Effective 28-Mar-2014 30-Apr-2014 30-Apr-2014 30-Sep-2016 30-Sep-2016 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) P145439-Mining Infrastructure Investment Support - Additional Financing 12/17/2015 Public Disclosure Copy Page 10 of 10