The World Bank Implementation Status & Results Report Industrial Waste Management and Cleanup Project (P122139) Industrial Waste Management and Cleanup Project (P122139) EUROPE AND CENTRAL ASIA | Montenegro | Environment, Natural Resources & the Blue Economy Global Practice | IBRD/IDA | Investment Project Financing | FY 2015 | Seq No: 15 | ARCHIVED on 22-Jun-2022 | ISR52150 | Implementing Agencies: Environmental Protection Agency, Montenegro Key Dates Key Project Dates Bank Approval Date: 19-Sep-2014 Effectiveness Date: 17-Nov-2014 Planned Mid Term Review Date: -- Actual Mid-Term Review Date: Original Closing Date: 30-Jun-2019 Revised Closing Date: 30-Jun-2022 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Development Objective of the Project is to reduce contamination of Montenegro’s natural resources and public health risks of exposure to this contamination from selected industrial waste disposal sites. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Remediation of Selected Legacy Industrial Waste Disposal Sites:(Cost $40.25 M) Future Industrial Waste Management:(Cost $1.24 M) Project Management:(Cost $2.25 M) Refinancing PPA:(Cost $1.00 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 High High Implementation Status and Key Decisions The project sites for cleanup are the Bijela shipyard, a mine tailings disposal site in Gradac and a coal ash disposal facility in Pljevlja. The project also supports preparation of technical documentation for remediation works for two industrial waste disposal sites at the Aluminum Plant in Podgorica, and further development of the regulatory framework for hazardous and industrial waste management in Montenegro. Remediation works at two of the three sites (Gradac, Pljevlja/Maljevac) have been fully completed, where works at the third site (Bijela) are still ongoing. These have been delayed due to stoppage of export to Spain of some of the site material and will likely need to continue beyond the current project closing date of 30th June 2022. An action plan has been prepared by the PMU for completion of these works. This Action Plan confirms that best-case scenario is that all remaining waste materials can be exported, but also that if by June 30, 2022, viable export arrangements (export permit plus transport and treatment contracts) have not been secured, then the waste materials will stay and will need to be safely managed 6/22/2022 Page 1 of 5 The World Bank Implementation Status & Results Report Industrial Waste Management and Cleanup Project (P122139) in Montenegro. On this basis, the Government has requested an extension for the project. This request is under review by the Bank to potentially extend the project to ensure that its Development Objective is achieved by supporting the implementation of the Action Plan. The Project is implemented by the National Environmental Protection Agency (NEPA) and the Ministry of Sustainable Development and Tourism (MSDT). The NEPA has for this purpose established a Project Management Unit (PMU) and is supported by the Technical Services Unit (TSU under Ministry of Finance) for Procurement and Financial Management tasks. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Low Low Macroeconomic -- Low Low Sector Strategies and Policies -- Low Low Technical Design of Project or Program -- Moderate Moderate Institutional Capacity for Implementation and -- Moderate Moderate Sustainability Fiduciary -- Substantial Substantial Environment and Social -- High High Stakeholders -- Moderate Moderate Other -- Substantial Substantial Overall -- High High Results PDO Indicators by Objectives / Outcomes Remediation - reduce contamination from selected industrial waste disposal sites IN01161650 ►Contaminated land managed or dump sites closed under the project (Hectare(Ha), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 10.00 23.90 24.00 Date 01-Oct-2013 04-Jun-2021 17-Jun-2022 30-Jun-2021 Remediation works completed on the two sites other than Bijela. The reported amount is based on the sum of the are Comments: Pljevlja sites (see intermediate indicators) and current completion of cleanup at the Bijela site (1.4 out of 1.5 ha). IN01161652 6/22/2022 Page 2 of 5 The World Bank Implementation Status & Results Report Industrial Waste Management and Cleanup Project (P122139) ►Reduction of pollution exposures paths by remediation measures (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3.00 8.00 9.00 Date 01-Oct-2013 04-Jun-2021 17-Jun-2022 30-Jun-2021 Works at Gradac and Pljevlja being complete, and underway at the Bijela site have now resulted in managed pathways for migration of pollutants through water and air and now also through soil and groundwater, hence pathways have increased to 8. For around 53,000 tons of contaminated soil, Comments: temporary storage on site needs to be designed and installed. Although materials are at presents also stored on a safe manner, it is proposed to consider this target fully met (all 9 paths closed) when the temporary storage arrangement in Bijela are in place. Hazardous Waste Management IN01161651 ►Number of industries related to the priority industrial waste disposal sites with arrangements for ongoing and future waste disposal in compliance with national legislation for solid waste management (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 1.00 1.00 Date 01-Oct-2013 01-Aug-2020 01-Aug-2020 30-Jun-2021 Achieved and no more monitoring is needed. Comments: Intermediate Results Indicators by Components Remediation IN01161653 ►Intermediate Result Indicator One: Industrial dump site at Gradac closed under the Project (Hectare(Ha), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 5.00 12.50 12.50 Date 01-Oct-2014 04-Jun-2021 17-Jun-2022 30-Jun-2022 Remediation work has been completed at Gradac site. Comments: IN01161655 ►Intermediate Result Indicator Three: Cleanup of Bijela site (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 40.00 59.00 100.00 Date 01-Oct-2014 04-Jun-2021 17-Jun-2022 30-Jun-2022 To date 76,409 tons of waste materials have been exported including all the 68,463 tons of hazardous grit Comments: waste, the most challenging waste category. The main remaining challenge remains with the export of 6/22/2022 Page 3 of 5 The World Bank Implementation Status & Results Report Industrial Waste Management and Cleanup Project (P122139) around 53,000 tons of contaminated soil. This causes 31% of waste still in need of export or treatment in Montenegro. IN01161656 ►Intermediate Result Indicator Two: Industrial dump site at Pljevlja closed under the Project (Hectare(Ha), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 9.00 9.00 10.00 Date 01-Oct-2014 04-Jun-2021 04-Jun-2021 30-Jun-2022 Remediation works at the Pljevlja Maljevac site have started in the summer of 2019 and after break in the first half of 2020 due to bad weather conditions, have resumed at scheduled pace. The reported works Comments: results, now at 90% completion has been used to calculate intermediate remediation progress. IN01161657 ►Intermediate Result Indicator Four: Design and works bidding documents completed for KAP sites (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Design, safeguards and Design, safeguards Design, safeguards No design documents Value bidding documents and bidding and bidding available completed documents completed documents completed Date 01-Oct-2014 04-Jun-2021 04-Jun-2021 30-Jun-2021 This indicator is met. Comments: Hazardous Waste Management IN01161654 ►Intermediate Result Indicator Five: Support further development of a national registration system for industrial and hazardous waste management (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Design concluded and system installed and Design work will be System applied, 80% operational within Value No system available concluded by end of of estimated total NEPA with more than June 2021. waste flows recorded. 80% of waste flows recorded. Date 01-Oct-2014 04-Jun-2021 17-Jun-2022 30-Jun-2022 Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed 6/22/2022 Page 4 of 5 The World Bank Implementation Status & Results Report Industrial Waste Management and Cleanup Project (P122139) P122139 IBRD-84280 Effective USD 68.90 61.60 7.30 36.03 18.31 66% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P122139 IBRD-84280 Effective 19-Sep-2014 10-Oct-2014 17-Nov-2014 30-Jun-2019 30-Jun-2022 Cumulative Disbursements Restructuring History Level 2 Approved on 16-Nov-2018 ,Level 2 Approved on 30-Jun-2020 ,Level 2 Approved on 23-Jun-2021 Related Project(s) There are no related projects. 6/22/2022 Page 5 of 5