Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) (P118109) MN-Mining Infrastructure Investment Supp (P118109) (P118109) EAST ASIA AND PACIFIC | Mongolia | Energy & Extractives Global Practice | IBRD/IDA | Investment Project Financing | FY 2011 | Seq No: 14 | ARCHIVED on 19-Jun-2018 | ISR31080 | Implementing Agencies: Ministry of Finance 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-2019 Project Development Objectives 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  Moderately Satisfactory  Moderately Satisfactory Overall Implementation Progress (IP)  Moderately Satisfactory  Moderately Unsatisfactory Overall Risk Rating  Substantial  High 6/19/2018 Public Disclosure Copy Page 1 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) (P118109) Implementation Status and Key Decisions A number of strategic studies supported by the MINIS project are being finalized and are planned to be publicly consulted upon in the second half of 2018. These include: • Environmental and Social Impact Assessment of the proposed Steel Complex project • Regional Environmental Assessment of the proposed Coal to Gas project • Environmental and Social Impact Assessment of the proposed Coal to Gas project • Cumulative Impact Assessment of the proposed Baganuur coal mine expansion • Cumulative Impact Assessment of the proposed Tavan Tolgoi coal mine construction • Integrated Water Resource Management Plans for three Regional Basin Administrations in South Gobi Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  Substantial  Substantial 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  --  High  High Stakeholders  --  Substantial  High Other  --  --  -- Overall  --  Substantial  High Results Project Development Objective Indicators PHINDPDOTBL  At least two key infrastructure assets ready for tender (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The FS and The FS and environmental and environmental and Two Technical/financial social studies for the social studies for the six transactions Value understanding to prepare six subprojects are at subprojects are at are ready for transactions lacking. various stages of various stages of tendering. implementation. implementation. The FS for the The FS for the Baganuur 6/19/2018 Public Disclosure Copy Page 2 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) (P118109) Baganuur mine has mine has been been completed. The completed. The CIA CIA study for the mine study for the mine is is being revised. being finalized. The FS for Synthetic The FS for Coal to Gas Natural Gas subproject subproject has been has been completed completed, The REA is while the REA for being finalized. The Synthetic Natural Gas ESIA will be subproject is being implemented after REA revised following consulted and finalized. Bank's comments. The The FS for the Steel ESIA is underway. Complex subproject has The Scoping Study for been completed. The the Steel subproject is ESIA is being finalized. being revised following Bank's comments. The FS and ESIA studies for the Steel Complex subproject are underway. Date 30-Apr-2010 24-Nov-2017 14-Jun-2018 30-Sep-2019 PHINDPDOTBL  Good practice and procedures established to prepare projects for public and private financing (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Achieved: Training on preparation of Achieved: Training on feasibility studies and preparation of feasibility financial and economic studies and financial and evaluation was economic evaluation delivered to the was delivered to the Limited understanding of Ministry of Finance, Ministry of Finance, Good practice required studies, no Ministry of Energy, Ministry of Energy, Value and procedures guidelines on economic Ministry of Environment Ministry of Environment adopted. evaluation. and Tourism, Ministry and Tourism, Ministry of of Industry and Ministry Industry and Ministry of of Mining, regarding Mining, regarding the the preparation of preparation of feasibility feasibility studies and studies and financial and financial and economic economic evaluation. evaluation. Date 30-Apr-2011 24-Nov-2017 14-Jun-2018 30-Sep-2019 Overall Comments Intermediate Results Indicators 6/19/2018 Public Disclosure Copy Page 3 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) (P118109) PHINDIRITBL  Direct project beneficiaries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 7,767.00 7,767.00 1,400.00 Date 30-Apr-2011 24-Nov-2017 12-Jun-2018 30-Sep-2019 PHINDIRITBL  Female beneficiaries (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 38.70 38.70 30.00 PHINDIRITBL  Feasibility studies for infrastructure projects (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Ongoing: The FS studies for the Ongoing: The FS Complete Baganuur coal mine studies for the Baganuur feasibility and Synthetic Natural Studies for priority projects coal mine, Steel studies for Value Gas subprojects have not available. Complex and Coal to ongoing been completed. The Gas subprojects have infrastructure FS for the Steel been completed. projects. Complex is under implementation. Date 30-Apr-2011 24-Nov-2017 12-Jun-2018 30-Sep-2019 PHINDIRITBL  Rapid response to address issues impacting private investment (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Achieved: The Achieved: The feasibility feasibility studies for studies for Steel plant Steel plant expansion expansion and SNG and SNG were were included in the Technical/financial support included in the Government action plan Rapid response Value to address issues not Government action 2016-2020 and to at least five available. plan 2016-2020 and respective Project issues. respective Project Implementation Units Implementation Units were formed. were formed. Tavan Tolgoi and Oyu Tavan Tolgoi and Oyu Tolgoi mine area water 6/19/2018 Public Disclosure Copy Page 4 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) (P118109) Tolgoi mine area water issues were determined issues were and two groundwater determined and two explorations were groundwater conducted in 2016. explorations were Additional exploration conducted in 2016. increased the coal Additional exploration reserves at the increased the coal Baganuur Coal mine. reserves at the Optimal mineral Baganuur Coal mine. resources extraction Optimal mineral model and plan for resources extraction Mongolia along with pre- model and plan for feasibility study for Mongolia along with recycling of water pre-feasibility study for polluted from mineral recycling of water processing was polluted from mineral developed. processing was Issues including need developed. assessment, information Issues including need gathering, viability and assessment, economic analysis, information gathering, proper preparation and viability and economic public consultation were analysis, proper addressed in the course preparation and public of the priority sub- consultation were projects identification addressed in the and the development of course of the priority the pre-feasibility and sub-projects the feasibility studies, identification and the the CIAs and ESIAs. development of the pre-feasibility and the feasibility studies, the CIAs and ESIAs. Date 30-Apr-2011 24-Nov-2017 12-Jun-2018 30-Sep-2019 PHINDIRITBL  Training programs and events (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 99.00 99.00 10.00 Date 30-Apr-2011 24-Nov-2017 12-Jun-2018 30-Sep-2019 6/19/2018 Public Disclosure Copy Page 5 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) (P118109) PHINDIRITBL  Conferences to promote investment opportunities (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target At least 5 9 9 events over the Value none conferences/workshop conferences/workshops course of the s were attended. were attended. project. Date 30-Apr-2011 24-Nov-2017 12-Jun-2018 30-Sep-2019 PHINDIRITBL  Consultants provide hands-on training and help administer government-financed projects & PPP concessions (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Five training programs Five training programs Staff is well were delivered to the were delivered to the trained to Ministry of Finance and Ministry of Finance and administer No concessions to other Ministries in the other Ministries in the Value government- administer. preparation and preparation and financed processing of seven processing of seven projects & PPP PPP transactions since PPP transactions since concessions 2011. 2011. Date 30-Apr-2011 24-Nov-2017 12-Jun-2018 30-Sep-2019 PHINDIRITBL  Ability to manage groundwater strengthened (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Achieved: The RBAs Achieved: The RBAs have been established have been established and adequately staffed; and adequately staffed; they have become fully they have become fully operational and GW operational and GW management and management and monitoring plans are in monitoring plans are in place. Groundwater place. Groundwater monitoring wells in Building Insufficient monitoring wells in south south Gobi are capacity for resources/capacity to Gobi are completed and Value completed and effective manage groundwater in equipped. Moreover, the equipped. Moreover, groundwater Southern Mongolia. monitoring system is the monitoring system management. functioning and data is is functioning and data being collected through is being collected online telemetry for through online some remote locations telemetry for some and periodic remote locations and downloading from the periodic downloading other installed data from the other installed loggers. data loggers. Date 30-Apr-2011 24-Nov-2017 12-Jun-2018 30-Sep-2019 6/19/2018 Public Disclosure Copy Page 6 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) (P118109) PHINDIRITBL  Promotion of appropriate organization structure for groundwater management established (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Achieved: Appropriate Achieved: Appropriate Development of organization structure organization structure the appropriate for the management of for the management of Preliminary organization organization the GW in three river the GW in three river Value structure was in place but structure for the basins, consisting of 3 basins, consisting of 3 not revised management of RBAs and 3 RBCs, in RBAs and 3 RBCs, in the GW in three South Gobi was South Gobi was river basins developed. developed. Date 30-Apr-2011 24-Nov-2017 12-Jun-2018 30-Sep-2019 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 24-Nov-2017 12-Jun-2018 30-Sep-2019 PHINDIRITBL  Agreement to implement important recommendations from water resource pricing studies (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Achieved: Water Achieved: Water resource pricing resource pricing studies studies have been have been completed completed and and recommendations Water pricing recommendations have have been implemented recommendatio Water Resources Pricing been implemented by by Ministry of ns are well Value studies are finalized Ministry of Environment Environment and adapted and and Tourism and RBAs Tourism and RBAs enforced by the where volumetric where volumetric RBAs charges have been charges have been imposed on water imposed on water abstractions. abstractions. Date 30-Apr-2014 24-Nov-2017 12-Jun-2018 30-Sep-2019 6/19/2018 Public Disclosure Copy Page 7 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) (P118109) PHINDIRITBL  New Institutional structure financially sustainable (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The fiscal budget plan The fiscal budget plan Develop the has been secured for has been secured for fiscal budget 2017 and under 2017 and under Value No plan plan for the preparation for 2018 for preparation for 2018 for RBAs and the established RBAs the established RBAs RBCs and RBCs. and RBCs. Date 30-Apr-2014 24-Nov-2017 12-Jun-2018 30-Sep-2019 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: more than Completed: more than 3 3 public awareness public awareness workshops were workshops were Organize organized between organized between groundwater September 17 and 26, September 17 and 26, Value No plan public 2014. Furthermore, 2014. Furthermore, awareness public consultations for public consultations for workshop. IWRM plans are IWRM plans are tentatively planned for tentatively planned for December 2017. December 2017. Date 30-Apr-2014 24-Nov-2017 12-Jun-2018 30-Sep-2019 Overall Comments 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 17.32 5.85 75% P118109 TF-16382 Effective USD 4.05 4.05 0.00 3.74 0.31 92% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date 6/19/2018 Public Disclosure Copy Page 8 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) (P118109) P118109 IDA-48880 Effective 10-May-2011 24-May-2011 20-Nov-2011 30-Sep-2016 30-Sep-2019 P118109 TF-16382 Effective 28-Mar-2014 30-Apr-2014 30-Apr-2014 30-Sep-2016 31-May-2019 Cumulative Disbursements Restructuring History Level 2 Approved on 27-Jul-2016 ,Level 2 Approved on 27-Sep-2017 Related Project(s) P145439-MN-Mining Infrastructure Investment Supp (P118109) 6/19/2018 Public Disclosure Copy Page 9 of 9