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: 16 | ARCHIVED on 20-Jun-2019 | ISR37571 | 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 pdoTable 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 Table 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 Unsatisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Satisfactory Overall Risk Rating High High Implementation Status and Key Decisions The project is nearing its completion and will close on schedule on September 30, 2019. Under Component 1, feasibility study reports have been completed for the following strategic priority projects: Baganuur mine expansion, Synthetic Natural Gas (SNG), and Steel Complex. Environmental and social safeguards studies for these three projects, as well as for the Tavan Tolgoi mine construction project (for which a feasibility study was conducted under a different project) are being finalized and will be publicly consulted upon and completed by the project closing date. 6/20/2019 Page 1 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) (P118109) Public consultations on the i) Environmental and Social Impact Assessment of the Synthetic Natural Gas project and ii) Cumulative Impact Assessment of the Baganuur coal mine expansion project are planned to be completed by early July 2019. Public consultations on the iii) Environmental and Social Impact Assessment of the Steel Complex project and iv) Cumulative Impact Assessment of the Tavan Tolgoi mine construction project are scheduled for end-August to early September 2019. The implementation of Component 3, including Integrated Water Resource Management Plans for three River Basin Administrations in South Gobi, has largely been completed. 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 Substantial Stakeholders -- High High Other -- -- -- Overall -- High High Results PDO Indicators by Objectives / Outcomes To facilitate investments in infrastructure to support mining and downstream processing activities IN00715041 ►At least two key infrastructure assets ready for tender (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The FS and Substantially achieved: environmental and social Preparation of studies for the six subprojects for subprojects are at investments/transactio various stages of n is measured through Technical/financial implementation. the completion of Two transactions are Value understanding to prepare The FS for the Baganuur feasibility and ready for tendering. transactions lacking. mine has been safeguards studies. completed. The CIA Feasibility studies study for the mine is have been completed being finalized. for three projects: The FS for Coal to Gas Baganuur mine subproject has been expansion, Steel 6/20/2019 Page 2 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) (P118109) completed, The REA is Complex and being finalized. The ESIA Synthetic Natural Gas will be implemented after (SNG). Safeguards REA consulted and studies for these three finalized. subprojects are The FS for the Steel planned to be Complex subproject has completed by the been completed. The project closing date, ESIA is being finalized. making these three subprojects ready for investments/transactio n. Furthermore, the Cumulative Impact Assessment (CIA) for Tavan Tolgoi mine supported under MINIS is also planned for completion by the project closing. The feasibility study for the Tavan Tolgoi mine financed under another Bank supported project has been completed. Thus, by the project closing date, the Tavan Tolgoi Mine project will also be ready for investments/transactio n. Date 30-Apr-2010 07-Dec-2018 07-Jun-2019 30-Sep-2019 To build local capacity to prepare and transact infrastructure projects IN00715042 ►Good practice and procedures established to prepare projects for public and private financing (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Largely achieved: Trainings on preparation of Achieved: Training on feasibility studies and preparation of feasibility financial and economic studies and financial and evaluation was economic evaluation was delivered to the delivered to the Ministry Ministry of Finance, Limited understanding of of Finance, Ministry of Ministry of Energy, required studies, no Energy, Ministry of Ministry of Good practice and Value guidelines on economic Environment and Environment and procedures adopted. evaluation. Tourism, Ministry of Tourism, Ministry of Industry and Ministry of Industry and Ministry Mining, regarding the of Mining. The preparation of feasibility concerned Ministry studies and financial and started to apply best economic evaluation. practice on economic evaluation that was shared with them through trainings. 6/20/2019 Page 3 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) (P118109) Date 30-Apr-2011 07-Dec-2018 07-Jun-2019 30-Sep-2019 Intermediate Results Indicators by Components Support for Infrastructure Investments IN00715043 ►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 07-Dec-2018 07-Dec-2018 30-Sep-2019 IN00715048 Female beneficiaries (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 38.70 38.70 30.00 IN00715049 ►Feasibility studies for infrastructure projects (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Achieved: The FS Ongoing: The FS studies studies for the for the Baganuur coal Baganuur coal mine, Complete feasibility Studies for priority Value mine, Steel Complex and Steel Complex and studies for ongoing projects not available. Coal to Gas subprojects Coal to Gas infrastructure projects. have been completed. subprojects have been completed. Date 30-Apr-2011 07-Dec-2018 07-Jun-2019 30-Sep-2019 IN00715052 ►Rapid response to address issues impacting private investment (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Achieved: Training on Achieved: The feasibility preparation of studies for Steel plant feasibility studies and expansion and SNG financial and economic were included in the evaluation was Government action plan provided to the 2016-2020 and Ministry of Finance, respective Project Ministry of Energy, Implementation Units Ministry of Technical/financial were formed. Environment Green Rapid response to at Value support to address Tavan Tolgoi and Oyu Development and least five issues. issues not available. Tolgoi mine area water Tourism. Ministry of issues were determined Industry and Ministry and two groundwater of Mining, regarding explorations were the preparation of conducted in 2016. feasibility studies and Additional exploration financial and economic increased the coal evaluation. A number reserves at the Baganuur of issues concerning Coal mine. need assessment, 6/20/2019 Page 4 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) (P118109) Optimal mineral information gathering, resources extraction viability of economic model and plan for analysis, proper Mongolia along with pre- preparation and public feasibility study for consultations were recycling of water addressed in the polluted from mineral course of identifying processing was priority subprojects developed. and the development Issues including need of the feasibility assessment, information studies and ESIAs and gathering, viability and CIAs. economic analysis, proper preparation and public consultation were addressed in the course of the priority sub- projects identification and the development of the pre-feasibility and the feasibility studies, the CIAs and ESIAs. Date 30-Apr-2011 07-Dec-2018 07-Jun-2019 30-Sep-2019 Capacity Building and Knowledge Transfer IN00715044 ►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 07-Dec-2018 07-Jun-2019 30-Sep-2019 Target exceeded Comments: IN00715046 ►Conferences to promote investment opportunities (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 9 At least 5 events over 9 conferences/workshops Value none conferences/workshop the course of the were attended. s were attended. project. Date 30-Apr-2011 07-Dec-2018 07-Jun-2019 30-Sep-2019 Target exceeded Comments: IN00715050 ►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 Partially achieved: were delivered to the Five training programs Staff is well trained to Ministry of Finance and were delivered to the administer No concessions to Value other Ministries in the Ministry of Finance government-financed administer. preparation and and other Ministries in projects & PPP processing of seven PPP the preparation and concessions transactions since 2011. processing of seven 6/20/2019 Page 5 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) (P118109) PPP transactions since 2011. However due to staff turnover in the Ministries, additional capacity building efforts are required. Date 30-Apr-2011 07-Dec-2018 07-Jun-2019 30-Sep-2019 Strengthening Groundwater Management IN00715045 ►Ability to manage groundwater strengthened (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Achieved: The River Basin Adminstrations Achieved: The RBAs (RBAs) have been have been established established and and adequately staffed; 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 Insufficient monitoring wells in south monitoring wells in Building capacity for resources/capacity to Value Gobi are completed and south Gobi are effective groundwater manage groundwater in equipped. Moreover, the completed and management. Southern Mongolia. monitoring system is equipped. Moreover, functioning and data is the monitoring system being collected through is functioning and data online telemetry for some is being collected remote locations and through online periodic downloading telemetry for some from the other installed remote locations and data loggers. periodic downloading from the other installed data loggers. Date 30-Apr-2011 07-Dec-2018 07-Jun-2019 30-Sep-2019 IN00715047 ►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 07-Dec-2018 07-Jun-2019 30-Sep-2019 IN00715051 ►Promotion of appropriate organization structure for groundwater management established (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Achieved: Appropriate Achieved: Appropriate Development of the organization structure for organization structure appropriate Preliminary organization the management of the for the management of organization structure Value structure was in place GW in three river basins, the GW in three river for the management of but not revised consisting of 3 RBAs and basins, consisting of 3 the GW in three river 3 RBCs, in South Gobi RBAs and 3 RBCs, in basins was developed. 6/20/2019 Page 6 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) (P118109) South Gobi was developed. Date 30-Apr-2011 07-Dec-2018 07-Jun-2019 30-Sep-2019 IN00715053 ►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 organized between organized between September 17 and 26, September 17 and 26, Organize groundwater 2014. Furthermore, Value No plan 2014. Furthermore, public awareness public consultations on public consultations on workshop. IWRM plans for 3 IWRM plans for 3 RBAs RBAs of South Gobi of South Gobi were were conducted in conducted in October- October-November November 2018. 2018. Date 30-Apr-2014 07-Dec-2018 07-Jun-2019 30-Sep-2019 IN00715054 ►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 recommendations have been implemented have been Water pricing Water Resources Pricing by Ministry of implemented by recommendations are Value studies are finalized Environment and Ministry of well adapted and Tourism and RBAs Environment and enforced by the RBAs where volumetric Tourism and RBAs charges have been where volumetric imposed on water charges have been abstractions. imposed on water abstractions. Date 30-Apr-2014 07-Dec-2018 07-Jun-2019 30-Sep-2019 IN00715055 ►New Institutional structure financially sustainable (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Achieved: The The fiscal budget plan preparation of fiscal has been secured for budget plans for the Develop the fiscal 2017 and under Value No plan RBAs and RBCs, budget plan for the preparation for 2018 for established under the RBAs and RBCs the established RBAs project, has become a and RBCs. norm since 2017. Date 30-Apr-2014 07-Dec-2018 07-Jun-2019 30-Sep-2019 6/20/2019 Page 7 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) (P118109) 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 17.84 5.03 78% P118109 TF-16382 Closed USD 4.05 4.05 0.00 4.05 0.00 100% 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-2019 P118109 TF-16382 Closed 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 6/20/2019 Page 8 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) (P118109) Related Project(s) P145439-MN-Mining Infrastructure Investment Supp (P118109) 6/20/2019 Page 9 of 9