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 | Specific Investment Loan | FY 2011 | Seq No: 11 | ARCHIVED on 21-Nov-2016 | ISR25793 | 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-2017 Project Development Objectives MN-Mining Infrastructure Investment Supp (P118109) (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  Moderately Satisfactory  Moderately Satisfactory Overall Implementation Progress (IP)  Moderately Satisfactory  Moderately Satisfactory Overall Risk Rating  Substantial  High 11/21/2016 Public Disclosure Copy Page 1 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) (P118109) Implementation Status and Key Decisions The project made significant progress under all Components since the last implementation support mission, held in March 2016. The following provides an update on the three project components as of mid-November 2016. Component 1: The feasibility studies for the Extension of Baganuur Coal Mine subproject and two groundwater investigation studies for the South Gobi region under the Rural and Industrial Water Supply subproject have been completed. The Cumulative Impact Assessment for the Baganuur mine was drafted but is now being revised along the comments received from civil society organizations. The Feasibility Studies (FS) and Environment and Social Impact Assessments for the Integrated Steel Complex and Synthetic Natural Gas subprojects have been contracted and now are under implementation. Additional public consultations on the Terms of Reference for the Environmental and Social Impact Assessments (ESIAs) and the Regional Environmental Impact Assessments (REAs) for the Shuren Hydropower and Orkhon Gobi Water subprojects were held in Ulaanbaatar, Mongolia in April 2016. Preparations are currently underway for a series of public consultations in Russia. Upon completion of these consultations, the TORs will be finalized based on input and feedback received, and a Request for Proposals from consulting firms to undertake the work will be initiated. Component 2: The knowledge transfer activities are being implemented satisfactorily and further strengthened capacity of the Ministry of Finance, Ministry of Environment and Tourism, Ministry of Energy, Ministry of Mining and Heavy Industry and other institutions in the areas of project preparation, contract management, and public-private partnership. Component 3: The three River Basin Administrations (RBA) and River Basin Councils (RBC), which are being supported by the project in the South Gobi region, have become fully functional and have established an excellent benchmark for RBAs and RBCs in the other regions of the country. It is expected that all project activities, except for the Shuren Hydropower and Orkhon Gobi Water subprojects, will be completed by the project closing date of September 30, 2017. A project extension to allow for completion of the FSs, ESIAs and the REAs for the two subprojects will be considered in summer 2017. 11/21/2016 Public Disclosure Copy Page 2 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) (P118109) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  Moderate  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  Substantial Stakeholders  --  High  High Other  --  --  -- Overall  --  Substantial  High Results Project Development Objective Indicators 11/21/2016 Public Disclosure Copy Page 3 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) (P118109) PHINDPDOTBL  At least two key infrastructure assets ready for tender (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target FSs and ESIAs for the five priority projects financed by the project are all at various stages of preparation. The most advanced The FS and studies for are the FS and CIA for the Baganuur mine have Baganuur Coal Mine been completed. The which are both under REA study was also implementation. The Two Technical/financial prepared but needs to ESIA and FS for the transactions Value understanding to prepare be revised. The FS and Synthetic Natural Gas are ready for transactions lacking. ESIA studies for the have started and for tendering. Steel Complex and the Steel Complex are Synthetic Natural Gas at final stage to be subprojects are under awarded. Moreover, implementation. The TORs and procurement for the studies for the other 2 subprojects are at various stages of preparation Date 30-Apr-2010 31-Mar-2016 01-Nov-2016 30-Sep-2017 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 Achieved through the preparation of feasibility training offered to studies and financial and Ministry of Finance, economic evaluation Ministry of Energy, was offered to Ministry Ministry of Environment of Finance, Ministry of Limited understanding of Green Development Energy, Ministry of Good practice required studies, no Value and Tourism. Ministry Environment Green and procedures guidelines on economic of Industry and Ministry Development and adopted. evaluation. of Mining, regarding Tourism. Ministry of the preparation of Industry and Ministry of feasibility studies and Mining, regarding the financial and economic preparation of feasibility evaluation. studies and financial and economic evaluation. Date 30-Apr-2011 31-Mar-2016 01-Nov-2016 30-Jun-2016 Overall Comments 11/21/2016 Public Disclosure Copy Page 4 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) (P118109) Intermediate Results Indicators PHINDIRITBL  Direct project beneficiaries (Number, Core) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 7767.00 7767.00 1400.00 Date 30-Apr-2011 31-Mar-2016 01-Nov-2016 30-Jun-2016 PHINDIRITBL  Female beneficiaries (Percentage, Core 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. Feasibility Ongoing: The FS study Study for one for the Baganuur coal Complete transaction is under mine has been feasibility Studies for priority projects finalization, one has completed. The FS studies for Value not available. been just awarded, one studies for the Steel ongoing is under award and the Complex and Synthetic infrastructure other two are under Natural Gas are under projects. procurement. implementation. Date 30-Apr-2011 31-Mar-2016 01-Nov-2016 30-Sep-2017 PHINDIRITBL  Rapid response to address issues impacting private investment (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Target Achieved. Five Achieved: Five issues issues including need including need assessment, assessment, information Technical/financial support Rapid response information gathering, gathering, viability and Value to address issues not to at least five viability and economic economic analysis, available. issues. analysis, proper proper preparation and preparation and public public consultation were consultation were addressed in the course 11/21/2016 Public Disclosure Copy Page 5 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) (P118109) addressed in the 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 the the CIAs and ESIAs. feasibility studies, the CIAs and ESIAs. Date 30-Apr-2011 31-Mar-2016 01-Nov-2016 30-Jun-2016 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 31-Mar-2016 01-Nov-2016 30-Jun-2016 PHINDIRITBL  Conferences to promote investment opportunities (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target At least 5 6 workshops were 6 workshops were events over the Value none attended attended course of the project. Date 30-Apr-2011 31-Mar-2016 01-Nov-2016 30-Jun-2016 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 Ongoing: A number of programs were offered training programs were Staff is well to the Ministry of offered to the Ministry of trained to Finance and other Finance and other administer No concessions to Value Ministries in the 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 31-Mar-2016 01-Nov-2016 30-Sep-2017 11/21/2016 Public Disclosure Copy Page 6 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) (P118109) PHINDIRITBL  Ability to manage groundwater strengthened (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Achieved: The RBAs are adequately staffed, Achieved: The RBAs are have become fully adequately staffed, have operational and GW become fully operational management and and GW management monitoring plans are and monitoring plans are under implementation. under implementation. Groundwater Groundwater monitoring monitoring wells in wells in south Gobi are south Gobi are completed and completed and Building Insufficient equipped. Moreover, the equipped. Moreover, capacity for resources/capacity to monitoring system is Value the monitoring system effective manage groundwater in functioning and data is is functioning and data groundwater Southern Mongolia. being collected through is being collected management. 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. Moreover, the data loggers. three RBCs have been Moreover, the three recently established and RBCs have been staffed. recently established and staffed. Date 30-Apr-2011 31-Mar-2016 01-Nov-2016 31-Dec-2015 PHINDIRITBL  Promotion of appropriate organization structure for groundwater management established (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Completed. Achieved: Appropriate Appropriate Development of organization structure organization structure the appropriate for the management of Preliminary organization for the management of organization the GW in three river Value structure was in place but the GW in three river structure for the basins, consisting of 3 not revised basins, consisting of 3 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 31-Mar-2016 01-Nov-2016 31-Dec-2013 11/21/2016 Public Disclosure Copy Page 7 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) (P118109) 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 31-Mar-2016 01-Nov-2016 30-Jun-2016 PHINDIRITBL  Agreement to implement important recommendations from water resource pricing studies (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Achieved: Ministry of Environment and Water pricing Water resource pricing Tourism together with recommendatio studies are under the RBAs have Water Resources Pricing ns are well Value process of implemented studies on studies are finalized adapted and implementation by water pricing and their enforced by the MoEGDT and RBAs recommendations have RBAs been adapted and enforced by the RBAs. Date 30-Apr-2014 31-Mar-2016 01-Nov-2016 30-Jun-2016 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 approved fiscal budget financing of RBAs and Value No plan and will be in effect plan for the RBCs from the AF TF to starting October 1, RBAs and the central budget in the 2016. RBCs course of 2017. Date 30-Apr-2014 31-Mar-2016 30-Nov-2016 31-Dec-2014 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 more Completed as more than Organize than 3 Public 3 Public awareness groundwater awareness workshop workshop were Value No plan public were organized organized between awareness between September 17 September 17 and 26, workshop. and 26, 2014. 2014. 11/21/2016 Public Disclosure Copy Page 8 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) (P118109) Date 30-Apr-2014 31-Mar-2016 01-Nov-2016 30-Jun-2016 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 14.02 8.84 56% P118109 TF-16382 Effective USD 4.05 4.05 0.00 2.86 1.19 71% 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-2017 P118109 TF-16382 Effective 28-Mar-2014 30-Apr-2014 30-Apr-2014 30-Sep-2016 30-Sep-2017 Cumulative Disbursements 11/21/2016 Public Disclosure Copy Page 9 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) (P118109) Restructuring History Level 2 Approved on 27-Jul-2016 Related Project(s) P145439-Mining Infrastructure Investment Support - Additional Financing 11/21/2016 Public Disclosure Copy Page 10 of 10