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: 13 | ARCHIVED on 17-Dec-2017 | ISR30558 | 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 Satisfactory Overall Risk Rating  Substantial  Substantial 12/20/2017 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 The project closing date was extended through September 30, 2019 to implement the Regional Environmental Assessment on the Selenge River Basin, as well as complete several studies and public consultations under Project Components 1 and 3. Study reports and consultation materials and dates are available on the MINIS website www.minis.mn. 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  --  Substantial  High Stakeholders  --  Substantial  Substantial 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 The FS and studies for The FS and the Baganuur mine environmental and have been completed. social studies for the six The CIA study for the subprojects are at mine has also been various stages of Two Technical/financial prepared but it is now implementation. transactions Value understanding to prepare being revised in The FS for the Baganuur are ready for transactions lacking. response to comments mine has been tendering. from NGOs. The FS completed. The CIA and ESIA studies for study for the mine is the Steel Complex and being revised. Synthetic Natural Gas The FS for Synthetic subprojects are under Natural Gas subproject 12/20/2017 Public Disclosure Copy Page 2 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) (P118109) implementation and has been completed should be completed while the REA for by the project closing Synthetic Natural Gas date. subproject is being revised following Bank's comments. The ESIA is underway. The Scoping Study for the Steel subproject is being revised following Bank's comments. The FS and ESIA studies for the Steel Complex subproject are underway. Date 30-Apr-2010 22-May-2017 24-Nov-2017 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 offered economic evaluation to Ministry of Finance, was delivered to the Limited understanding of Ministry of Energy, Ministry of Finance, Good practice required studies, no Ministry of Environment Ministry of Energy, Value and procedures guidelines on economic Green Development 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 22-May-2017 24-Nov-2017 30-Sep-2019 Overall Comments Intermediate Results Indicators 12/20/2017 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 22-May-2017 24-Nov-2017 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 study Ongoing: The FS for the Baganuur coal studies for the Baganuur Complete mine has been coal mine and Synthetic feasibility Studies for priority projects completed. The FS Natural Gas subprojects studies for Value not available. studies for the Steel have been completed. ongoing Complex and Synthetic The FS for the Steel infrastructure Natural Gas are under Complex is under projects. implementation. implementation. Date 30-Apr-2011 22-May-2017 24-Nov-2017 30-Sep-2019 PHINDIRITBL  Rapid response to address issues impacting private investment (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Achieved: Five issues Achieved: The feasibility including need studies for Steel plant assessment, expansion and SNG information gathering, were included in the viability and economic Government action plan Technical/financial support Rapid response analysis, proper 2016-2020 and Value to address issues not to at least five preparation and public respective Project available. issues. consultation were Implementation Units addressed in the were formed. course of the priority Tavan Tolgoi and Oyu sub-projects Tolgoi mine area water identification and the issues were determined 12/20/2017 Public Disclosure Copy Page 4 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) (P118109) development of the and two groundwater pre-feasibility and the explorations were feasibility studies, the conducted in 2016. CIAs and ESIAs. Additional exploration increased the coal reserves at the Baganuur Coal mine. Optimal mineral resources extraction model and plan for Mongolia along with pre- feasibility study for recycling of water polluted from mineral processing was developed. Issues including need assessment, information gathering, viability and 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 22-May-2017 24-Nov-2017 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 22-May-2017 24-Nov-2017 30-Sep-2019 PHINDIRITBL  Conferences to promote investment opportunities (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target At least 5 9 6 workshops were events over the Value none conferences/workshops attended course of the were attended. project. Date 30-Apr-2011 22-May-2017 24-Nov-2017 30-Sep-2019 12/20/2017 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  Consultants provide hands-on training and help administer government-financed projects & PPP concessions (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Ongoing: A number of Five training programs training programs were Staff is well were delivered to the offered to the Ministry trained to Ministry of Finance and of Finance and other administer No concessions to other Ministries in the Value Ministries in the 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 22-May-2017 24-Nov-2017 30-Sep-2019 PHINDIRITBL  Ability to manage groundwater strengthened (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Achieved: The RBAs are adequately staffed, have become fully Achieved: The RBAs operational and GW have been established management and and adequately staffed; monitoring plans are they have become fully under implementation. operational and GW Groundwater management and monitoring wells in monitoring plans are in south Gobi are place. Groundwater completed and Building Insufficient monitoring wells in south equipped. Moreover, capacity for resources/capacity to Gobi are completed and Value the monitoring system effective manage groundwater in equipped. Moreover, the is functioning and data groundwater Southern Mongolia. monitoring system is is being collected management. functioning and data is through online being collected through telemetry for some online telemetry for remote locations and some remote locations periodic downloading and periodic from the other installed downloading from the data loggers. other installed data Moreover, the three loggers. RBCs have been recently established and staffed. Date 30-Apr-2011 22-May-2017 24-Nov-2017 30-Sep-2019 12/20/2017 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 22-May-2017 24-Nov-2017 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 22-May-2017 24-Nov-2017 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: Ministry of resource pricing studies Environment and have been completed Tourism together with and recommendations Water pricing the RBAs have have been implemented recommendatio Water Resources Pricing implemented studies by Ministry of ns are well Value studies are finalized on water pricing and Environment and adapted and their recommendations Tourism and RBAs enforced by the have been adapted where volumetric RBAs and enforced by the charges have been RBAs. imposed on water abstractions. Date 30-Apr-2014 22-May-2017 24-Nov-2017 30-Sep-2019 12/20/2017 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 Budget provisions were The fiscal budget plan Develop the made for transferring has been secured for fiscal budget financing of RBAs and 2017 and under Value No plan plan for the RBCs from the AF TF preparation for 2018 for RBAs and to the central budget in the established RBAs RBCs the course of 2017. and RBCs. Date 30-Apr-2014 22-May-2017 24-Nov-2017 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 3 public awareness Completed as more workshops were Organize than 3 Public organized between groundwater awareness workshop September 17 and 26, Value No plan public were organized 2014. Furthermore, awareness between September 17 public consultations for workshop. and 26, 2014. IWRM plans are tentatively planned for December 2017. Date 30-Apr-2014 22-May-2017 24-Nov-2017 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 17.01 6.01 68% P118109 TF-16382 Effective USD 4.05 4.05 0.00 3.68 0.37 91% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date 12/20/2017 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) 12/20/2017 Public Disclosure Copy Page 9 of 9