Document of
The World Bank
FOR OFFICIAL USE ONLY
Report No: RES19254
RESTRUCTURING PAPER
ON A
PROPOSED PROJECT RESTRUCTURING
OF THE
MINING ENVIRONMENTAL RESTORATION PROJECT
JULY 31, 2008
IN THE AMOUNT OF
US$30 MILLION
TO THE
ARGENTINE REPUBLIC
November 19, 2015
Environment and Natural Resources Global Practice
Latin American and Caribbean Region
This document has a restricted distribution and may be used by recipients only in the performance of their
official duties. Its contents may not otherwise be disclosed without World Bank authorization.
ARGENTINA
MINING ENVIRONMENTAL RESTORATION PROJECT (P110462)
ABBREVIATIONS AND ACRONYMS
ARN Argentinian Nuclear Regulatory Authority (Autoridad Regulatoria Nuclear)
CNEA National Atomic Energy Commission (Comisión Nacional de
Energía Atómica)
EMP Environmental Management Plan
IAEA International Atomic Energy Agency
PDO Project Development Objective
PRAMU Mining Environmental Restoration Project (Proyecto de Restitución de la
Minería de Uranio
Regional Vice President: Jorge Familiar
Country Director: Jesko S. Hentschel
Senior Global Practice Director: Paula Caballero
Practice Manager/Manager: Raúl Alfaro-Pelico
Task Team Leader: Ruth Tiffer Sotomayor
2
ARGENTINA MINING ENVIRONMENTAL RESTORATION PROJECT
CONTENTS
A. SUMMARY 5
B. PROJECT STATUS 5
C. PROPOSED CHANGES 7
D. RESULTS FRAMEWORK 9
3
DATA SHEET
Argentina
Argentina Mining Environmental Restoration Project (P110462)
LATIN AMERICA AND CARIBBEAN
Environment & Natural Resources
Report No: RES19254
Basic Information
Project ID: P110462 Lending Instrument: Specific Investment Loan
Regional Vice President: Jorge Familiar Original EA Category: Full Assessment (A)
Country Director: Jesko S. Hentschel Current EA Category: Full Assessment (A)
Senior Global Practice
Paula Caballero Original Approval Date: 31-Jul-2008
Director:
Practice
Raúl Ivan Alfaro Pelico Current Closing Date: 27-Nov-2015
Manager/Manager:
Team Leader(s): Ruth Tiffer-Sotomayor
Borrower: Argentine Republic
Responsible Agency: National Atomic Energy Commission
Restructuring Type
Form Type: Full Restructuring Paper Decision Authority: Regional Vice President
Approval
Restructuring Level: Level 2 Explanation of Extension of Closing Date
Approval beyond two years requiring
Authority: RVP Approval (Level 2)
Financing ( as of 27-Oct-2015 )
Key Dates
Approval Effectiveness Original Revised
Project Ln/Cr/TF Status Signing Date
Date Date Closing Date Closing Date
P110462 IBRD-75830 Effective 31-Jul-2008 01-Feb-2010 28-Apr-2010 30-Nov-2013 27-Nov-2015
Disbursements (in Millions)
%
Undisbur
Project Ln/Cr/TF Status Currency Original Revised Cancelled Disbursed Disburse
sed
d
P110462 IBRD-75830 Effective USD 30.00 30.00 0.00 23.14 6.86 77
Policy Waivers
Does the project depart from the CAS/CPF in content or in other significant
Yes [ ] No [ X ]
respects?
4
Does the project require any policy waiver(s)? Yes [ ] No [ X ]
A. Summary of Proposed Changes
An extension of the Project Closing Date (from November 27, 2015, to September 27, 2016) is proposed to
enable the completion of four key activities: (i) Malargüe uranium remediation works; (ii) creation of a
public green space in Malargüe; (iii) final deployment of the Environmental Monitoring Management
System Tool (SIGA); and (iv) development of an environmental strengthening plan for provincial
authorities. These activities are key to the satisfactory achievement of the PDO and meeting the overall
project targets.
An adjustment to the results matrix is also proposed in order to make some indicators more specific and
measurable, and to better monitor the progress and results achieved during the remaining Project’s lifespan.
Change in Implementing Agency Yes [ ] No [ X ]
Change in Project's Development Objectives Yes [ ] No [ X ]
Change in Results Framework Yes [ X ] No [ ]
Change in Safeguard Policies Triggered Yes [ ] No [ X ]
Change of EA category Yes [ ] No [ X ]
Other Changes to Safeguards Yes [ ] No [ X ]
Change in Legal Covenants Yes [ ] No [ X ]
Change in Loan Closing Date(s) Yes [ X ] No [ ]
Cancellations Proposed Yes [ ] No [ X ]
Change to Financing Plan Yes [ ] No [ X ]
Change in Disbursement Arrangements Yes [ ] No [ X ]
Reallocation between Disbursement Categories Yes [ ] No [ X ]
Change in Disbursement Estimates Yes [ ] No [ X ]
Change to Components and Cost Yes [ ] No [ X ]
Change in Institutional Arrangements Yes [ ] No [ X ]
Change in Financial Management Yes [ ] No [ X ]
Change in Procurement Yes [ ] No [ X ]
Change in Implementation Schedule Yes [ ] No [ X ]
Other Change(s) Yes [ ] No [ X ]
Appraisal Summary Change in Economic and Financial Analysis Yes [ ] No [ X ]
Appraisal Summary Change in Technical Analysis Yes [ ] No [ X ]
Appraisal Summary Change in Social Analysis Yes [ ] No [ X ]
Appraisal Summary Change in Environmental Analysis Yes [ ] No [ X ]
Appraisal Summary Change in Risk Assessment Yes [ ] No [ X ]
B. Project Status
The Board approved this Project on July 31, 2008, and it became effective on April 28, 2010. At Mid-term
review of the Project (December 2012), disbursement was around 12%. Disbursement to date from the
US$30 million Loan is US$23.14 (or 77% of the total Loan amount).
5
In August 2015, the Borrower and the Bank agreed to a short-term action plan to improve the
implementation progress of the Project. To date, the National Nuclear Energy Commission (CNEA) has
accomplished most of the actions agreed in this action plan, achieving the following results:
Acceleration of the remediation works in Malargüe, which aims to contain permanently -in an
engineered construction cell- a total of 700,000 tons of uranium contaminated tailings from the
closed Malargüe processing plant (global progress of civil works is now 80%).
Complete transportation of the total volume of contaminated tailings to the Malargüe remediation
site; thereby reducing pollution and economic and public health risks for the surrounding
communities.
Complete the environmental studies of five uranium legacy sites (old uranium mines and uranium
processing facilities) located in five provinces in the country.
Resolution of the national budgetary credit line for the project
Presentation of the pending External Financial Audit, with no major issues to report.
Development and installation of an Environmental Monitoring Management System Tool (SIGA) in
CNEA almost complete.
Remediation plans for the “El Chichón" and “Los Gigantes�? sites agreed between CNEA and the
local and provincial governments, based on the Malargüe 'best-practice' example.
As a result of the significant progress made by CNEA in the implementation of the agreed action plan, the
progress toward achieving the PDO and the Implementation Progress (IP) were both rated as Moderately
Satisfactory, after the mission undertaken in October, 2015. With the proposed extension of the Closing
Date, the PDO remains relevant, strategic, and achievable.
ENVIRONMENTAL BASELINE OF THE OTHER SEVEN SITES. The project has concluded
environmental and radiological baseline studies of seven other uranium legacy sites: El Chichón, Los
Gigantes, Tonco, Pichiñán, La Estela, Los Colorados, and Huemul. The results of these studies will
contribute in the identification of the most appropriate alternative for the future remediation of these sites
and for the preparation of the environmental impact assessments.
SAFEGUARDS. The Project's safeguard performance has ranged from satisfactory to moderately
satisfactory throughout the last two years of implementation. CNEA has developed the remediation works in
Malargüe according to the agreed Environmental Management Plan (EMP), maintains a team that on a daily
basis supervises the contractor and implements a very detailed Monitoring Program that measures
radiological, environmental, health and safety parameters at the remediation site. Additionally, the Project
maintains close monitoring of several sites around Malargüe to reduce risks to the local community and
workers.
The local and provincial governments as well as the National Nuclear Regulatory Authority (ARN) of
Argentina have supervised the remediation works in Malargüe. Consultations and communication with the
local government and communities were performed in a satisfactory manner and have continue during
Project implementation. Access to information related to environmental monitoring has been limited, but
CNEA has presented the Bank with a plan to improve it; thus access to information is expected to show
improvement once the SIGA is completed. The Environmental Impact Assessment for the Malargüe works
is published in the web site of CNEA.
As of today, there are no Indigenous Peoples in the Project sites, no resettlement nor any other safeguards
issues related to the Project.
COMMUNICATION STRATEGY. CNEA has implemented a communication plan involving local
6
authorities and civil society since the beginning of the project. In Malargüe, workshops, technical fora, site
visits, and inspections have been performed together with the local government, universities, agricultural
agencies, high schools, and members of the surrounding communities. At the El Chichón, a focused strategy
with the municipality, provincial government, and universities using the Malargüe works as an example,
facilitated the remediation agreement for this site.
INTERNATIONAL ADVISORY PANEL. The establishment of an international advisory panel, as foreseen
in the Project Appraisal Document did not materialize due to a variety of issues such as governmental
regulations limiting the hiring of international consultants. As an alternative, CNEA has confirmed the
formation of this panel with the participation of two international experts in nuclear remediation from the
International Atomic Energy Agency (IAEA) and a national expert to review the remediation works in
Malargüe, the proposed remediation plan of El Chichón and Los Gigantes and to participate in a high level
uranium-remediation training in Malargüe, with the involvement of governmental and provincial agencies.
The input and participation of this panel in these activities will contribute in the strengthening of the
Government of Argentina's capacity to assess and mitigate environmental risks associated with closed
uranium mines and other related legacy sites, in accordance with international good practice which is an
important aspect of the PDO of the Project.
C. Proposed Changes
Development Objectives/Results
Project Development Objectives
Original PDO
The development objectives of the project are to: (a) strengthen Government of Argentina's capacity to
assess and mitigate environmental risks associated with closed uranium mines, processing sites, and related
mining sector investments in accordance with international good practice; and (b) reduce potential economic
and health damages associated with a closed uranium mining site in Malargüe, Mendoza.
Change in Project's Development Objectives
Change in Results Framework
Explanation:
Some of the current indicators are difficult to track and measure because they include merged parameters
(environmental impact assessments studies, design, remediation plans, communication plans, etc.) for
different sites with different environmental conditions which are located in six different provinces, instead
of specific site and the related investments. Therefore, a revision of the indicators is proposed in Annex 1,
to better reflect the expected outcomes of the project and actual progress made towards the PDO.
The four indicators for the PDO are being revised and a new one is added.
Indicator 1. Sites separated into two indicators (1 and 2) to better measure results and investments.
Indicator 3. Rephrased to measure the number of CNEA labs accredited with the ISO 17025.
Indicator 4. Rephrased to address the reduction of health, environmental and economic risks through the
removal and containment of the tailings.
Indicator 5. Rephrased to measure the number of governmental agencies that will be trained by the Project
Out of 10 Intermediate Indicators, five are being revised. The updated indicators will be included in the
Project Operations Manual to comply with the provisions of the Loan Agreement.
Financing
7
Change in Loan Closing Date(s)
Explanation:
On October 22, 2015, the Government of Argentina (GoA) made the formal request for a 10-month
extension of the current Closing Date. The extension of the Closing Date (from November 27, 2015, to
September 27, 2016) will allow the project to be completed successfully and the PDO to be achieved
through the completion of the uranium Malargüe Remediation works, the first uranium remediation in the
country and probably in Latin America. The extension will also afford additional time needed to complete
the following:
(i) the creation of a public (green) space in Malargüe;
(ii) the final deployment of the Environmental Monitoring Management System Tool (SIGA);
(iii) the institutional strengthening plan for provincial authorities.
These activities are key to the satisfactory achievement of the PDO and meeting the overall project targets,
thus ensuring that all environmental and human health risks are permanently addressed, per the agreed
international standards.
REMEDIATION WORKS. The extension of the current Closing Date will make it possible to: i) complete
the removal and transportation of contaminated soils to the remediation site and iii) build the final layer to
close the encapsulation cell. CNEA has estimated that the additional time needed to complete these works is
seven months. Climatic conditions have in the past seriously affected the speed of the remediation works;
thus a 3-month period is added as a precautionary measure to the proposed deadline.
Given the health, social, and economic risks associated with uranium-contaminated sites, the Project is
politically sensitive and carries a high reputational risk for both the Government of Argentina (GoA) and the
Bank, if the remediation works were not to be completed. The Government of Argentina and CNEA plan to
use this Project as a demonstration for future remediation works of the other seven uranium legacy sites in
the country.
PUBLIC GREEN SPACE IN MALARGÜE. As part of the mitigation measures of the legacy site, the
municipality and CNEA agreed to build a public green space in Malargüe (in a non-contaminated area)
based on a design to be proposed by local citizens. The estimated time required to complete the bidding and
construction of the park is seven months.
ENVIRONMENTAL MONITORING SYSTEM TOOL. The completion of the SIGA is estimated to take
four months. The activities to be undertaken are: i) complete testing of the system, ii) provide training to
CNEA staff, iii) complete the public portal and iv) install a Business intelligence module.
INSTITUTIONAL STRENGTHENING PLAN FOR THE PROVINCIAL GOVERNMENTS. CNEA has
prepared and proposed an Environmental Strengthening Provincial Plan which was consulted and agreed
with the governmental agencies where the uranium legacy sites are located. The estimated time required to
complete the implementation of the plan is about eight months.
Original Closing Current Closing Proposed Closing Previous Closing
Ln/Cr/TF Status
Date Date Date Date(s)
IBRD-
Effective 30-Nov-2013 27-Nov-2015 27-Sep-2016 30-Nov-2013
75830
8
ANNEX 1. RESULTS FRAMEWORK
Project Argentina Mining Environmental Restoration Project Project
Restructuring Status: Final
Name: (P110462) Stage:
Team Requesting
Ruth Tiffer-Sotomayor LCC7C Created by: Ruth Tiffer-Sotomayor on 06-Nov-2015
Leader(s) Unit:
Product Responsible
IBRD/IDA GEN04 Modified by: Ruth Tiffer-Sotomayor on 20-Nov-2015
Line: Unit:
Country: Argentina Approval FY: 2009
LATIN AMERICA AND Lending
Region: Specific Investment Loan
CARIBBEAN Instrument:
Project Development Objectives
Original Project Development Objective:
The development objectives of the project are to: (a) strengthen Government of Argentina's capacity to assess and mitigate environmental risks
associated with closed uranium mines, processing sites, and related mining sector investments in accordance with international good practice; and
(b) reduce potential economic and health damages associated with a closed uranium mining site in Malargüe, Mendoza.
Results
Core sector indicators are considered: Yes Results reporting level: Project Level
Project Development Objective Indicators
Status Indicator Name Core Unit of Measure Baseline Actual(Current) End Target
Revised Environmental risks of Los Text Value 0 Baseline Engineering
Gigantes and El Chichón sites Environmental design
identified; baseline Study completed; completed
environmental studies Remediation plan
completed; remediation plan consulted and
consulted and agreed with agreed with local
authorities and engineering authorities
design completed 28-Apr-2010 20-Oct-2015 27-Sep-2016
Date
Comment
Original Environmental risks in other Text Value 0 Malargüe 100%; 100%
seven CNEA sites identified, 5 sites: 50%
management plans evaluated, (environmental
disclosed and agreed with studies completed)
stakeholders. 2 sites: 75%
(environmental
studies completed,
remediation
alternative defined)
Date 28-Apr-2010 20-Oct-2015 27-Nov-2015
Comment
New Environmental risks of other Yes/No Value No Yes Yes
five legacy sites (Tonco-Salta,
Date 28-Apr-2010 28-Aug-2015 27-Sep-2016
Pichiñán- Chubut, La Estela-
San Luis, Los Colorados-La Comment Studies have been
Rioja and Huemul-Mendoza) completed
identified and baseline
environmental studies
completed
Revised Number of CNEA laboratories Text Value 0 4 4
accredited ISO 17025 to
Date 28-Apr-2010 20-Oct-2015 27-Sep-2016
monitor water, air, soil and
radiological parameters Comment Labs: Ezeiza,
Constituyentes,
San Rafael,
Córdoba,
Original CNEA laboratories where Text Value 0 100% 100%
PRAMU analysis are carried
Date 28-Apr-2010 20-Oct-2014 27-Nov-2015
are ISO 17025 certified to
ensure quality in analysis, Comment
administrative and technic al
operations which are also
verified by COCALIN.
10
Revised Reduced health, environmental Text Value 0 100% 100%
and economic risks associated
Date 28-Apr-2010 20-Oct-2015 27-Sep-2016
with the Malargüe site to be
addressed through the removal Comment 700,000 tons of
of the tailings according to the tailings have been
remediation plan agreed with removed and
authorities transported d to the
remediation cell.
Original All potential health and Text Value 0 80.3% global 100
economic risks associated with progress of
the Malargüe site to be remediation works
addressed through the 100% of removal of
implementation of remediation tailings
plans agreed with stakeholders. 28-Apr-2010 20-Oct-2015 27-Nov-2015
Date
Comment
Revised Number of governmental Text Value 0 10 15
agencies, where legacy sites are
Date 25-Jul-2013 20-Oct-2015 27-Sep-2016
located, trained on
environmental monitoring Comment Official trained Officials
procedures for management from: targeted from:
and supervision of mining Mendoza, Salta, Mendoza, Salta,
operations or uranium legacy Cordoba, La Rioja, Cordoba, La
sites Chubut Rioja, Chubut,
San Luis,
Buenos Aires,
other.
Original Environmental monitoring Text Value 0 20% progress of a 100%
procedures for management of new capacity implementation
mining operations and/or building plan of capacity plan
former uranium mining sites 25-Jul-2013 20-Oct-2015 27-Nov-2015
Date
have been transferred to
government agencies Comment
Intermediate Results Indicators
Status Indicator Name Core Unit of Measure Baseline Actual(Current) End Target
11
No Change Percentage of planned site - Text Value 0 80.3% global; 100
Malargüe- remediation works 100% tailings
completed 28-Apr-2010 20-Oct-2015 27-Nov-2015
Date
Comment
Revised Reduced risk of environmental Text Value 0 100% 100%
pollution by the transportation transportation of
and removal of tailings tailings completed
Date 28-Apr-2010 20-Oct-2015 27-Sep-2016
Comment
Original Percentage of contaminant Text Value 0 80.3% advance in 100%
exposure levels which have global civil works;
been reduced at or below the 100%
defined standards transportation of
tailings completed
Date 28-Apr-2010 20-Oct-2015 27-Nov-2015
Comment
No Change Proportion of field samples and Percentage Value 0.00 100.00 100.00
lab analysis which adhere to
Date 28-Apr-2010 20-Oct-2015 27-Nov-2015
QA/QC procedures
Comment
Revised Communication Strategy in Text Value 0 75% 100
Malargüe is designed,
Date 28-Apr-2010 20-Oct-2015 27-Sep-2016
implemented and results
evaluated Comment
Original Evidence that public Text Value 0 75% 100
information campaigns are
Date 28-Apr-2010 20-Oct-2015 27-Nov-2015
relevant, meaningful and meet
or exceed stakeholder Comment
expectations
No Change Design of public (green) space Text Value 0 20% progress. 100%
at the Malargüe site agreed ToRs developed
12
with stakeholders and with and public contest
municipality and preliminary for park designs
works initiated launched
Date 20-Oct-2015 27-Nov-2015
Comment
Revised Number of the other seven Text Value 0 7 7
CNEA sites (El Chichón, Los
Date 20-Oct-2015 27-Sep-2016
Gigantes,Tonco, Pichiñan, La
Estela, Los Colorados, Comment Evaluation of each
Huemul) with environment site of its legacy
evaluation of legacy issues issues completed
Original Number of CNEA sites with Text Value 0 8 sites: 8
completed assessments of Environmental
legacy issues, engineering Studies
designs for remediation see comments
measures, environmental
Date 20-Oct-2015 27-Nov-2015
impact assessments under
consultation Comment
Revised Number of CNEA laboratories Number Value 0.00 5.00 5.00
with equipment and installed
Date 20-Oct-2015 27-Sep-2016
capacity for monitoring
environmental parameters Comment
(including radiological) on
water, soil and air samples,
which are supervised by
COCALIN
Original Number of CNEA laboratories Number Value 0.00 5.00 5.00
with installed capacity for
Date 20-Oct-2015 27-Nov-2015
monitoring environmental
parameters (including Comment
radiological) on water, soil and
air samples, which are
accredited by COCALIN
New Number of the other seven Number Value 0.00 0.00 2.00
13
CNEA sites with remediation Date 20-Oct-2015 27-Sep-2016
designs completed
Comment Preparation bidding El Chichón;
process Los Gigantes
Revised Number of training modules Percentage Value 0.00 2.00 5.00
(on environmental monitoring,
Date 20-Oct-2015 27-Sep-2016
remediation and other relevant
topics) agreed and delivered to Comment
governmental agencies, where
uranium legacies sites are
located.
Original Proportion of government Percentage Value 0.00 5.00 7.00
agencies identified, included in
Date 20-Oct-2015 27-Nov-2015
action plans and participating
in institutional strengthening Comment
activities
No Change Environmental Information Percentage Value 0.00 95.00 100.00
Management System
Date 20-Oct-2015 27-Nov-2015
developed and under
implementation, consistent Comment
with best international
practices, and including data on
all Project sites
No Change Communication strategies Text Value 0 1 campaign 3
under implementation at achieved in
relevant CNEA sites included Malargüe. A
in the Project consulting firm
hired to design the
communication
campaign for El
Chichón and Los
Gigantes.
Date 20-Oct-2015 27-Nov-2015
Comment
14