Document of The World Bank Report No: ICR00004037 IMPLEMENTATION COMPLETION AND RESULTS REPORT (IDA-52400 IDA-H2340 IDA-H3190 TF-13509 TF-90160) ON TWO GRANTS AND A CREDIT IN THE AMOUNT OF SDR 9.90 MILLION (US$ 14.7 MILLION EQUIVALENT) TO THE REPUBLIC OF KOSOVO FOR A ENERGY SECTOR CLEAN-UP AND LAND RECLAMATION PROJECT February 28, 2017 Environment and Natural Resource Global Practice Europe and Central Asia Region CURRENCY EQUIVALENTS (Exchange Rate Effective 01/09/2017) Currency Unit = SDR 1.00 = US$ 1.34 US$ 1.00 = 0.74 FISCAL YEAR July 1 – June 30 ABBREVIATIONS AND ACRONYMS AF Additional Financing BAT Best Available Techniques CLRP Clean-up and Land Reclamation Project CLRP-FAF Clean-up and Land Reclamation Project – First Additional Financing CLRP-SAF Clean-up and Land Reclamation Project – Second Additional Financing CSO Civil Society Organizations DALY Disability Adjusted Life Years DO Development Objective EIA Environmental Impact Assessment EMP Environmental Management Plan ERR Economic Rate of Return ESIA Environmental and Social Impact Assessment ESTAP Energy Sector Technical Assistance Project EU European Union GDP Gross Domestic Product GOK Government of Kosovo GON Government of The Netherlands ICR Implementation Completion Report IDA International Development Association IP Implementation Progress ISN Interim Strategy Note ISR Implementation Supervision Report JICA Japan International Cooperation Agency KEM Kosovo Economic Memorandum KEK Kosovo Energy Cooperation KEPA Kosovo Environmental Protection Agency KPP Kosovo Power Project KTA Kosovo Trust Agency LPI Lignite Power Initiative LPTAP Lignite Power Technical Assistance Project MED Ministry of Economic Development MESP Ministry of Environment and Spatial Planning i MOF Ministry of Finance MW Mega Watts NGO Non-Governmental Organizations NMF New Mining Field ORAF Operational Risk Assessment Framework PAD Project Appraisal Document PDO Project Development Objective PISG Provisional Institutions of Self-Government PMU Project Management Unit UNMIK United Nations Interim Administration Mission in Kosovo USD United States Dollars RAP Resettlement Action Plan RPF Resettlement Policy Framework SAF Second Additional Financing WB World Bank Senior Global Practice Director: Karin Kemper Practice Manager: Valerie Hickey Project Team Leader: Katelijn van den Berg ICR Team Leader: Jiang Ru ICR Lead Author: Sanne Agnete Tikjoeb ii KOSOVO Energy Sector Clean-Up and Land Reclamation Project CONTENTS Data Sheet A. Basic Information B. Key Dates C. Ratings Summary D. Sector and Theme Codes E. Bank Staff F. Results Framework Analysis G. Ratings of Project Performance in ISRs H. Restructuring I. Disbursement Graph 1. Project Context, Development Objectives and Design ..................................1 2. Key Factors Affecting Implementation and Outcomes .................................7 3. Assessment of Outcomes .............................................................................14 4. Assessment of Risk to Development Outcome ............................................24 5. Assessment of Bank and Borrower Performance ........................................25 6. Lessons Learned...........................................................................................28 7. Comments on Issues Raised by Borrower/Implementing Agencies ............29 Annex 1. Project Costs and Financing .............................................................30 Annex 2. Outputs by Component.....................................................................31 Annex 3. Economic and Financial Analysis ....................................................43 Annex 4. Bank Lending and Implementation Support/Supervision Processes 48 Annex 5. Beneficiary Survey Results ..............................................................50 Annex 6. Stakeholder Workshop Report and Results ......................................41 Annex 7. Summary of Borrower's ICR and/or Comments on Draft ICR ........52 Annex 8. Comments of Cofinanciers and Other Partners/Stakeholders ........107 Annex 9. List of Supporting Documents .......................................................108 MAP iii A. Basic Information Energy Sector Cleanup Country: Kosovo Project Name: and Land Reclamation Project IDA-52400,IDA- Project ID: P096181 L/C/TF Number(s): H2340,IDA-H3190,TF- 13509,TF-90160 ICR Date: 02/28/2017 ICR Type: Core ICR Lending Instrument: SIL Borrower: KOSOVO Original Total XDR 3.80M Disbursed Amount: XDR 9.67M Commitment: Revised Amount: XDR 9.90M Environmental Category: A Implementing Agencies: Kosovo Energy Cooperation Ministry of Environment and Spatial Planning Cofinanciers and Other External Partners: B. Key Dates Revised / Actual Process Date Process Original Date Date(s) Concept Review: 08/31/2005 Effectiveness: 02/28/2007 02/28/2007 06/03/2009 11/16/2010 12/15/2011 05/17/2012 Appraisal: 04/26/2006 Restructuring(s): 11/26/2012 03/28/2013* 12/23/2014 06/30/2015 02/25/2016 Approval: 06/13/2006 Mid-term Review: 02/15/2010 02/15/2010 Closing: 12/31/2010 08/31/2016 *This date was pulled from the system and could not be changed, but the actual date of Board approval is May 10, 2013. C. Ratings Summary C.1 Performance Rating by ICR Outcomes: Satisfactory Risk to Development Outcome: Moderate iv Bank Performance: Moderately Satisfactory Borrower Performance: Moderately Satisfactory C.2 Detailed Ratings of Bank and Borrower Performance (by ICR) Bank Ratings Borrower Ratings Quality at Entry: Moderately Satisfactory Government: Moderately Satisfactory Implementing Quality of Supervision: Moderately Satisfactory Moderately Satisfactory Agency/Agencies: Overall Bank Overall Borrower Moderately Satisfactory Moderately Satisfactory Performance: Performance: C.3 Quality at Entry and Implementation Performance Indicators Implementation QAG Assessments Indicators Rating Performance (if any) Potential Problem Project Quality at Entry Yes None at any time (Yes/No): (QEA): Problem Project at any Quality of No None time (Yes/No): Supervision (QSA): DO rating before Satisfactory Closing/Inactive status: D. Sector and Theme Codes Original Actual Major Sector/Sector Energy and Extractives Other Energy and Extractives 70 70 Mining 30 30 Major Theme/Theme/Sub Theme Environment and Natural Resource Management Environmental Health and Pollution Management 39 39 Air quality management 13 13 Soil Pollution 13 13 Water Pollution 13 13 Environmental policies and institutions 20 20 Urban and Rural Development Rural Development 40 40 Land Administration and Management 40 40 v E. Bank Staff Positions At ICR At Approval Vice President: Cyril E Muller Shigeo Katsu Country Director: Ellen A. Goldstein Orsalia Kalantzopoulos Practice Valerie Hickey Laura Tuck Manager/Manager: Project Team Leader: Katelijn Van den Berg Frank Van Woerden ICR Team Leader: Jiang Ru ICR Primary Author: Sanne Agnete Tikjoeb F. Results Framework Analysis Project Development Objectives (from Project Appraisal Document) The objectives of the Kosovo Cleanup and Land Reclamation Project were to: (a) address environmental legacy issues related to open dumping of ashes on land from KEK's Kosovo A thermal power plant; (b) enable KEK to free land for community development purposes currently taken by overburden materials and enable KEK to remove Kosovo A ash dump; and(c) build capacity in KEK for continued clean-up and environmentally good practice mining operations. The PDO as stated in the Financing Agreement was: To address environmental legacy issues related to the open dumping of ashes from KEK's Kosovo A thermal power plant; (ii) to enable KEK to free land for community development purposes currently taken by overburden material and to enable KEK to remove the Kosovo A ash dump; and (iii) to initiate structural operations in KEK for continued clean-up and environmentally good practice mining operations. Revised Project Development Objectives (as approved by original approving authority) The project development objectives and related indicators were revised twice. See section 1.3 for an explanation of the justifications for revising the PDO. In the first Board-approved restructuring of June 3, 2009, part (b) of the PDO was modified as follows: (b) enable KEK to free land for community development purposes currently taken by overburden materials and enable KEK to remediate Kosovo A ash dump. In the second Board-approved restructuring of March 28, 20131, part (c) of the PDO was modified as follows: (c) support KEK and MESP to implement continued clean-up operations and environmental good practices in the mining and energy sector. In conclusion, the final PDO at project closing was to: (a) address environmental legacy issues related to open dumping of ashes on land from KEK's Kosovo A thermal power plant; (b) enable KEK to free land for community development purposes currently taken by overburden materials and enable KEK to remediate Kosovo A ash dump; and (c) support KEK and MESP to implement continued clean-up operations and environmental good practices in the mining and energy sector. 1 This date was pulled from the system and could not be changed, but the actual date of Board approval is May 10, 2013. To be consistent, the ICR will make reference to March 28, 2013 throughout the document. vi (a) PDO Indicator(s) Original Target Formally Actual Value Values (from Revised Achieved at Indicator Baseline Value approval Target Completion or documents) Values Target Years Percentage of ash disposal that complies with environmental good practice and is Indicator 1 : redirected from open dumping on the Kosovo A Ash Dump to the Mirash mine Value 0% 100% 100% 100% quantitative or Qualitative) Date achieved 05/15/2006 07/01/2008 12/31/2014 12/31/2013 Comments Target 100% achieved by December 2013 when the wet ash system became (incl. % operational. Indicator relates to PDO Outcome (a). achievement) Remediation of Kosovo A Ash Dump, eliminating dust problems and pollution Indicator 2 : infiltration from the ashes into groundwater Value 0% 55% 74% quantitative or Qualitative) Date achieved 06/03/2009 12/31/2010 08/31/2016 Target achieved in November 2010 with 74% of the 243 ha large Kosovo A ash Comments dump remediated within the original timeframe, and exceeded by 35% at project (incl. % closing. Indicator revised in 2009 and relates to PDO Outcome (b). achievement) Indicator 3 : Contaminated land managed or dump sites closed under the project Value 0 ha 156 ha 179 ha quantitative or Qualitative) Date achieved 05/15/2006 12/31/2014 08/31/2016 Target exceeded by 14 percent at project closing. The unit of measurement in hectares was intended to complement the remediation indicator in percentage. Comments Target of 156 ha referred to the size of Kosovo A ash dump to be remediated (incl. % under the project, which involved managing contaminated parts and closing the achievement) dump site. Core Sector Indicator added in the 2013 and relates to PDO Outcome (b). Reduce dust arising from the transport of ash and initiate and enable KEK to Indicator 4 : eliminate dust arising from the ash dump Value <300 mg/m2/day <100 mg/m2/day quantitative or Qualitative) Date achieved 12/31/2010 12/31/2013 Target added by ICR team, and 100% achieved in December 2013 with the introduction of the wet ash system. A target for the indicator was never defined, Comments tracked, revised nor dropped. Instead, the ICR team applied the legally allowed (incl. % daily value per square meter as a reasonable target. By 2015, the dust level was achievement) below the level that the monitoring points could register and thereby considered eliminated. Six dust filters near the ash dump has collected data for years, which was used to assess the result. Indicator relates to PDO Outcomes (a) and (b). vii Land reclaimed for natural habitats, agriculture, or other land use purposes in Indicator 5 : KEK overburden areas Value 0 ha 450 ha 526 ha 653 ha quantitative or Qualitative) Date achieved 05/15/2006 12/31/2010 12/31/2014 08/31/2016 Target scaled-up in 2013 and exceeded by 24% at project closing. It is important to notice the wording “reclaimed for” certain “purposes”, which implies that the Comments project will prepare land for such use as natural habitat or agriculture. Allowing (incl. % access to the land for such purposes is different, and according to the legal achievement) covenants of the project subject to IDA’s approval of a land use plan. See section 1.2. Indicator relates to PDO Outcome (b). Original target achieved in October, 2011 and exceeded by 45%. Land reclaimed for natural habitats, agriculture, or other land use purposes in Indicator 6 : KEK overburden areas Value 0% 55% 68% quantitative or Qualitative) Date achieved 05/15/2006 12/31/2014 08/31/2016 Target exceeded by 24 percent. The unit of measurement in percentage was Comments intended to complement the original reclamation indicator in hectares. See also (incl. % PDO indicator 5 and section 1.2. Indicator added in 2013 and relates to PDO achievement) Outcome (b). Increase capacities in KEK for continued clean-up operations and environmental Indicator 7 : good practices in the mining and energy sector (as measured by nr of hectares remediated and reclaimed with KEK own resources) KEK staff fully responsible for Value Limited capabilities in clean-up and land 127 ha 165 ha quantitative or KEK MESP and MEM reclamation Qualitative) operations Date achieved 05/15/2006 12/31/2010 12/31/2014 08/31/2016 Target achieved in October, 2010, within the original timeframe. Indicator scaled-up in 2013 and target exceeded by 30%. Original target achieved with the establishment of the Reclamation Department carrying out operations using own Comments staff and equipment. Indicator revised in 2013 to reflect the expertise developed (incl. % at KEK and define a meaningful target for the on-going work by the Reclamation achievement) Department. The target of 127 ha refers to reclamation of overburden areas and is in essence an extension of PDO indicators 5 and 6, i.e. “continued clean-up operations and environmental good practices”. Indicator relates to PDO Outcome (c). Increase capacities in MESP for continued clean-up operations and Indicator 8 : environmental good practices in the mining and energy sector No ESIA for KPP ESIA for KPP ESIA for KPP Draft ESIA for KPP Value prepared. Resettlement prepared and prepared and prepared, but not quantitative or for Shala neighborhood of disseminated in disseminated disseminated. Qualitative) Hade village not yet line with Bank in line with Resettlement completed in line with policies and good Bank policies Completion Report viii approved RAP. international and good finalized practices. Resettle international p and publicly ment for Shala ractices. disclosed as neighborhood of Resettlement documented Hade village for Shala evidence for completed in line neighborhood achievement of the with approved of Hade resettlement RAP. village objective in line completed in with the approved line with RAP approved RAP Date achieved 03/28/2013 12/31/2014 08/31/2016 12/31/2016 Target partly achieved. Uncertainties about the specific configuration of the proposed power plant prevented finalization of ESIA. The target for increasing Comments MESP’s capacity was defined in regards to two of MESP’s core responsibilities, (incl. % namely impact assessments and resettlements, which are important to “continued achievement) clean-up operations and environmental good practices in the mining and energy sector. Indicator added in 2013 and relates to PDO Outcome (c). All found priority hazardous substances from the gasification site safely removed Indicator 9 : and treated/disposed (tars, benzene, phenols, methanol, oily compounds) Value 0 tons 17,545 tons 21,783 tons 22,116 tons quantitative or Qualitative) Date achieved 05/21/2007 12/31/2010 12/31/2014 08/31/2016 Comments Target achieved and exceeded in November 2015. Indicator revised in 2013 and (incl. % relates to PDO Outcome (c). achievement) Indicator 10 : Project beneficiaries 21,500 of Value 21,500 of which 0 of which female 0 which female quantitative or female 10,600 10,600 Qualitative) Date achieved 03/28/2013 12/31/2014 08/31/2016 Target 100% achieved. Target refers to residents of Obiliq municipality, which Comments were most affected by high dust-levels. The target was achieved by December, (incl. % 2013 when the wet ash transport system was commissioned and the target for 55 achievement) percent of remediation work on the ash dump had been completed. Core Sector Indicator added in 2013 and relates to PDO Outcomes (a) and (b). ix (b) Intermediate Outcome Indicator(s) Original Target Actual Value Formally Values (from Achieved at Indicator Baseline Value Revised approval Completion or Target Values documents) Target Years Indicator 1 : Mirash mine prepared for sanitary disposal of Kosovo A ash Mirash Mine Mirash Mine Mirash Mine Value prepared for Mirash Mine unsuitable prepared for prepared for (quantitative sanitary for ash reception sanitary disposal sanitary disposal of or Qualitative) disposal of of Kosovo A ash Kosovo A ash Kosovo A ash Date achieved 05/15/2006 07/01/2009 12/31/2010 03/15/2010 Comments (incl. % Target 100% achieved. Indicator relates to PDO Outcome (a). achievement) Reduction of houses at risk from geotechnical instabilities of Kosovo A ash Indicator 2 : dump Value (quantitative 10 houses at risk 0 houses at risk 0 houses at risk or Qualitative) Date achieved 05/15/2006 07/01/2010 07/01/2010 Comments Target 100% achieved through stabilization Ash dump and Dragodan overburden (incl. % dump near Dardhishte village. Indicator relates to PDO Outcome (b). achievement) Preparation of full site clean-up investment plan and adaptation of health and Indicator 3 : safety regulations and low-cost remediation program Preparation of full Full site clean-up site clean-up investment plan investment plan prepared and Value and adaptation of No remediation plan health and safety (quantitative health and safety regulations and or Qualitative) regulations low- and low-cost cost remediation remediation program adapted program Date achieved 05/21/2007 07/01/2010 03/04/2010 Comments (incl. % Target 100% achieved. Indicator added in 2007 and relates to PDO Outcome (c). achievement) Tons of found tar sludge, benzene, methanol, and oily compounds from the Indicator 4 : gasification site removed and disposed. Value (quantitative 0 tons 4,300 tons 4,780 tons 5,109 tons or Qualitative) Date achieved 05/21/2007 12/31/2010 12/31/2014 10/30/2014 Comments Target achieved and scaled-up in 2013. Revised target exceeded by 7%. Indicator (incl. % added in 2007 and relates to PDO Outcome (c). achievement) x Indicator 5 : Tons of found tar deposits from the gasification site safely removed and disposed Value (quantitative 0 tons 2,232 tons 2,232 tons 2,232 tons or Qualitative) Date achieved 03/28/2013 12/31/2014 06/30/2015 05/20/2015 Comments (incl. % Target 100% achieved. Indicator added in 2013 and relates to PDO Outcome (c). achievement) Tons of found phenol in water solutions from the gasification site safely removed Indicator 6 : and treated Part with highest concentration 14,771 tons Value 14,775 tons safely 13,245 tons present in removed, safely (quantitative removed and tanks on site remainder stored removed and or Qualitative) treated and monitored in treated reliable tanks Date achieved 05/21/2007 07/01/2010 12/31/2014 06/30/2012 Comments Target scaled-up in 2013 and 100% achieved. Indicator added in 2007 and relates (incl. % to PDO Outcome (c). Original target intended for partial removal. achievement) Indicator 7 : Environmental and social baseline data available for the ESIA Environmental and Value Environmental and social baseline (quantitative No data available social baseline data data available for or Qualitative) available for ESIA ESIA Date achieved 03/28/2013 12/31/2014 11/30/2015 Comments (incl. % Target 100% achieved. Indicator added in 2013 and relates to PDO Outcome (c). achievement) Indicator 8 : Low carbon growth strategy prepared and disseminated Low carbon Low carbon Value growth strategy growth Low carbon growth (quantitative No strategy available prepared and strategy strategy prepared or Qualitative) disseminated prepared Date achieved 03/28/2013 12/31/2014 02/29/2016 09/30/2015 Comments Revised target 100% achieved. Indicator added in 2013 and relates to PDO (incl. % Outcome (c). achievement) G. Ratings of Project Performance in ISRs Actual Date ISR No. DO IP Disbursements Archived (USD millions) 1 10/12/2006 Satisfactory Satisfactory 0.00 2 03/28/2007 Satisfactory Satisfactory 0.00 3 03/28/2008 Moderately Satisfactory Moderately Satisfactory 0.42 xi 4 01/06/2009 Moderately Satisfactory Moderately Satisfactory 1.36 5 06/23/2009 Moderately Satisfactory Moderately Satisfactory 1.68 6 03/11/2010 Moderately Satisfactory Moderately Satisfactory 3.11 7 12/04/2010 Satisfactory Moderately Satisfactory 3.24 8 06/27/2011 Satisfactory Satisfactory 3.38 9 12/05/2011 Moderately Satisfactory Moderately Satisfactory 4.61 10 10/06/2012 Satisfactory Satisfactory 9.63 11 12/25/2012 Satisfactory Satisfactory 10.44 12 08/21/2013 Satisfactory Satisfactory 10.54 13 04/04/2014 Satisfactory Satisfactory 11.02 14 11/22/2014 Moderately Satisfactory Moderately Satisfactory 11.87 15 06/08/2015 Satisfactory Moderately Satisfactory 13.19 16 12/13/2015 Satisfactory Moderately Satisfactory 13.97 17 06/13/2016 Satisfactory Moderately Satisfactory 14.40 18 08/30/2016 Satisfactory Moderately Satisfactory 14.40 H. Restructuring (if any) ISR Ratings at Amount Board Restructuring Disbursed at Restructuring Reason for Restructuring & Approved Restructuring Date(s) Key Changes Made PDO Change DO IP in USD millions First Board Level restructuring. 06/03/2009 N MS MS 1.47 Revision of component B and related results indicators Extension of closing date and 11/16/2010 N MS MS 3.24 reallocations between categories Extension of closing date and 12/15/2011 N MS MS 4.97 reallocations between categories Extension of closing date and 05/17/2012 N MS MS 6.90 reallocations between categories Extension of closing date and 11/26/2012 N S S 10.12 reallocations between categories Second Additional Financing and Board Level Restructuring. Addition of Component F and 05/10/2013* N S S 10.52 related key indicators and revision of results framework with scaled-up targets. Extension of closing date. Extension of closing date and 12/23/2014 N MS MS 12.07 reallocations between categories Extension of closing date and 06/30/2015 N S MS 13.47 reallocations between categories Revision of intermediate xii ISR Ratings at Amount Board Restructuring Disbursed at Restructuring Reason for Restructuring & Approved Restructuring Date(s) Key Changes Made PDO Change DO IP in USD millions indicator “Low Carbon Growth Study prepared”. Extension of closing date and 02/25/2016 N S MS 14.40 reallocations between categories *This date was pulled from the system and could not be changed, but the actual date of Board approval is May 10, 2013. I. Disbursement Profile xiii 1. Project Context, Development Objectives and Design 1.1 Context at Appraisal 1. In the aftermath of the 1999 conflict, Kosovo was battling a damaged economy, broken trade links, international sanctions, a lack of investment, and weak institutional capacity. Kosovo was placed under the administration of the United Nations Interim Administration Mission in Kosovo (UNMIK), who became the signatory to the Clean-up and Land Reclamation Project (CLRP). Kosovo declared independence in 2008. 2. The 2004 Kosovo Economic Memorandum (KEM) identified the energy and mining sectors as potential sources of economic growth. Kosovo’s energy sector was dominated by the Kosovo Energy Corporation (KEK), a public utility company, which at the time was managed by an international company and operated the entire supply chain from mines, power generation, transmission, and distribution. 3. Under the 2006 Interim Strategy Note (ISN) for Kosovo, the World Bank’s focus was on the long-term development of the energy sector in support of Kosovo’s Lignite Power Initiative (LPI). The CLRP would contribute to the objectives of the ISN, which proposed to lay the foundation for the sustainable development of Kosovo’s high quality lignite resources and power generation capacity, associated environmental and social improvements, and the transparent competitive and fiscally responsible management of Kosovo’s public finances. 4. 98 percent of electricity generation in Kosovo came from two old, inefficient and highly polluting coal-fired power plants near Prishtina: Kosovo A (345 MW, 40 year old) in poor condition and the worst single-point source of pollution in Europe; and Kosovo B (540 MW, 27 year old). Rather than backfilling the mine with the coal ash as per international best available techniques, dry ashes were disposed of in an open dump site using spreaders to swirl the ashes in the air, causing the formation of an ash mountain and substantial air pollution. 5. Air pollution from the Kosovo A power plant and its dry ash open dump facility was emitting unacceptable amounts of particulates into the air, a prime public health risk. Wastewaters from the mining and power operations were heavily polluted. Large areas of land used for dumping overburden material prevented other productive community uses. Tons of hazardous chemicals stored at the former gasification site at Kosovo A presented one of the biggest environmental risks in Kosovo. Outdated mining practices, an industrial infrastructure that ignored environmental impacts, and a non-functioning environmental management system were the main factors behind the poor environmental performance in the energy sector. 6. At the time of project preparation, Kosovo A was proposed to be shut down and decommissioned. KEK was financially instable and billing and collection for electricity services were poor. Future plans revolved around building a new coal-fired power plant, Kosovo C, but lack of capacity and private investments, and public resistance to further developments in the energy sector presented big obstacles. 7. The rationale for Bank involvement in the energy sector was to (a) establish enabling frameworks and build local capacity for attracting private sector investments in new power plant and mine operations with modern technologies in a transparent, environmentally and socially sustainable, and fiscally responsible manner; (b) undertake measures to reduce air and water pollution from the existing power plants; and (c) reclaim lands covered by lignite ash piles and overburden material to free land for community development purposes. 1 1.2 Original Project Development Objectives (PDO) and Key Indicators 8. The objectives of the Cleanup and Land Reclamation Project as stated in the Financing Agreement were to: (a) address environmental legacy issues related to open dumping of ashes on land from KEK’s Kosovo A thermal power plant; (b) to enable KEK to free land for community development purposes currently taken by overburden materials and enable KEK to remove Kosovo A ash dump; and (c) to initiate structural operations in KEK for continued clean-up and environmentally good practice mining operations. 9. According to the legal covenant, no final decision on the use of the land reclaimed pursuant to Component C can be taken without IDA’s prior consent. That implies that while part (b) of the PDO is to free land for community development purposes, access by the community for such purposes is subject to IDA’s approval of a land use plan to be developed in a participatory manner and in compliance with spatial planning legislation in Kosovo. 10. Table 5 in Annex 2 shows the original results framework from the PAD with slight modifications to present the intended indicators and targets. 1.3 Revised PDO and Key Indicators, and reasons/justification 11. The project development objectives and associated key indicators were revised twice: On June 3, 2009 and on March 28, 20132. 12. It should be noted here that the ICR makes reference to the first and second restructuring to mean the two restructurings, which required Board approval (see section H in the Datasheet.) In total, the project was restructured nine times, including eight times for an extension of the project closing date and reallocation between disbursement categories. 13. In the first restructuring of June 3, 2009, part (b) of the PDO was modified as follows: (b) enable KEK to free land for community development purposes currently taken by overburden materials and enable KEK to remediate Kosovo A ash dump. 14. The justification for the revision of the PDO was based on the selection of an alternative remediation option for the Kosovo A Ash dump in Component B, moving from “relocation of Kosovo A Ash Dump into the Mirash Open Pit Mine” to a reshaping and coverage of the ash dump while leaving it in place. During project preparation, different remediation options were investigated and the full removal option was selected as it was environmentally preferred 3 . Following project approval, detailed site investigations revealed a number of factors, which justified this change of approach: (i) parts of the Kosovo A ash dump was contaminated with hazardous waste, which would be costly and risky to remove; (ii) the ash dump itself provided a reliable barrier against contamination of the underground and groundwater systems4; (iii) areas of the ash dump had stratified soft and cemented layers of ash, requiring excavation equipment in much better condition than KEK had available; (iv) it proved difficult to provide adequate measures for dust control during transport of ashes using existing conveyor belts; and (v) pressed by coal shortage in 2008, KEK extended exploitation in the Mirash mine and disposed of the 2 This date was pulled from the system and could not be changed, but the actual date of Board approval is May 10, 2013. To be consistent, the ICR will make reference to March 28, 2013 throughout the document. 3 Full removal of the ash dump had the advantage that the materials from the reshaping could be used for Mirash Mine reclamation and the land underneath the ash dump - holding significant lignite reserves - would become available. 4 The risk of contamination was foreseen in Project preparation, but could only be confirmed after execution of detailed drilling and site investigation program. 2 overburden material into the mine, complicating the option to simultaneously dispose of the dry ashes from the Kosovo A ash dump and production line. This prompted a change in the technical design approach from full removal to in-situ remediation of the ash dump site, which included reshaping, coverage and some partial removal of the ash dump. This “adaptive restructuring” had the added advantage of a shorter implementation period, lower costs and lower environmental risks not having to excavate hazardous chemicals, lower health risks given the significant reduction in dust emission levels and mine workers handling of ash material, and it was an easier operation to manage. 15. In the second restructuring of March 28, 2013, part (c) of the PDO was modified as follows: (c) support KEK and MESP to implement continued clean-up operations and environmental good practices in the mining and energy sector. 16. The scope of the project was broadened to include capacity building activities not only in KEK, but also in the Ministry of Environment and Spatial Planning (MESP) in an effort to strengthen their mandate in regards to developments in the mining and energy sector. In this “adaptive restructuring”, the Bank responded to the growing need for technical assistance within MESP to deal with environmental management and monitoring responsibilities. With the addition of Component F, Environmental Monitoring and Management, MESP became the second Implementing Agency of the CLRP. 17. In conclusion, the final PDO of the CLRP was to: (a) address environmental legacy issues related to open dumping of ashes on land from KEK’s Kosovo A thermal power plant; (b) enable KEK to free land for community development purposes currently taken by overburden materials and enable KEK to remediate Kosovo A ash dump; and (c) support KEK and MESP to implement continued clean-up operations and environmental good practices in the mining and energy sector. Key Indicators 18. The results framework evolved throughout the life of the project as the project was restructured twice and components were added as a result of the first and second additional financing to widen and scale-up project activities. Described below in chronological order, Table 6 in Annex 2 shows the original and revised results framework side-by-side. 19. On June 28, 2007, additional financing for clean-up of hazardous material at the former Kosovo A gasification site was incorporated as Component E. Three intermediate indicators were added to track progress towards removal of highest priority hazardous substances from storage tanks and partial removal of phenol in water solutions. 20. In the first restructuring on June 3, 2009, the PDO-level indicator linked to Component B was modified. As the approach changed from removal of Kosovo A ash dump to in-situ remediation of the ash dump, the indicator was revised accordingly. Originally, the target value referred to “m3 of ashes removed”. The revised indicator would track the “percentage of ash dump remediated”. Based on an interpretation of the original project design in the PAD, which envisaged completion of 55 percent of the required works (i.e. “initiate and enable”), the same target of 55 percent was applied to the remediation indicator. The indicators were specifically set at a lower number than 100 percent as the aim of the project was to initiate and enable the implementing agency - the mining and electricity company KEK - to perform these works themselves and to make reclamation a permanent activity of the mining company that would continue after project closure. 3 21. In the second restructuring of March 28, 2013, the results framework underwent a major overhaul: - The first PDO indicator was reworded to allow for better tracking of results (baseline and target value changed to percentage value). - A core sector indicator linked to Component B was introduced at the PDO level to track remediation of the ash dump site in hectares, as a companion to the revised indicator tracking the same progress in percentage. The target was calculated as 55 percent of the ash dump size, but due to using 283 ha as the basis of the ash dump size, the target was overestimated. Given that the size of the ash dump is 243 ha (as noted in several places in the same restructuring document) the correct target would have been 134 ha. For consistency, however, the ICR will use the target of 156 ha as entered. At the time of the restructuring, the target had already been met. - In the PAD and in all other project documentation throughout implementation, there seems to be confusion about whether the original land reclamation target was 450 ha or 650 ha. Strictly adhering to the original results framework in the PAD, the ICR team will apply the target of 450 ha in this final evaluation of achievements. This is also in line with the wording used through-out the PAD to “initiate and enable”. To reflect ongoing work at the time of the restructuring, the target was scaled-up to 526 ha. The revised target was based on a calculation of 55 percent of an enlarged overburden dump area of 957 ha, which became known due to more detailed surveys done as part of implementation, instead of the original 650 ha. - A PDO indicator linked to Component C was introduced to track land reclamation in percentage, as a companion to the original indicator tracking the same progress in hectares. It is not clear to the ICR team on which basis the target of 55 percent was defined. In interpreting the original intent from the PAD, to “initiate reclamation of 650 ha” with a target of 450 ha, this would imply a target equal to 69 percent. For consistency, the ICR team will refer to 55 percent. At the time of the restructuring, the target had already been met. - A PDO indicator linked to Component E and measured in tonnage was introduced to reflect the enhanced development impact as the activities were scaled-up to remove all priority – rather than the highest priority – hazardous substances. - Three intermediate indicators linked to Component E were revised to clarify in more detail the precise substances to be removed, disposed, treated, and exported. Targets were scaled-up as additional financing was made available. - A PDO indicator linked to Component F was added to reflect capacity building for continued clean-up operations and environmental good practices in KEK. A land reclamation target of an additional 127 ha of overburden areas was entered to reflect that KEK would fully do this work using their own staff, equipment and financial resources. - A PDO indicator linked to Component F was added to reflect capacity building for environmental monitoring and management in MESP. This would be tracked by a) delivering an ESIA for the new Kosovo Power Plant project, and b) supervising the resettlement of Shala neighborhood in Hade village. - Two new intermediate indicators linked to Component F were also added to a) make baseline data available for the ESIA and b) to prepare and disseminate a low carbon growth strategy. - An overall core sector indicator of “Project beneficiaries”, with a sub-indicator “of which females”, was added at the PDO level. - One PDO-level indicator was dropped to avoid duplication with a similar original intermediate indicator (reduce loss of private property due to geotechnical instabilities.). - Four intermediate indicators were dropped to remove duplication with PDO-level indicators. 4 22. On June 30, 2015, the intermediate indicator related to the preparation and dissemination of a Low Carbon Growth Study was revised to “Low Carbon Growth Study prepared”. 23. It should be noted that the original PDO indicator “Reduce dust arising from the transport of ash and initiate and enable KEK to eliminate dust arising from the ash dump” never had a defined target nor was it ever tracked, revised or dropped. In an effort to measure project achievements against this original indicator, the ICR team has applied a target of “dust levels below allowed daily value of 300 mg/m2/day” in accordance with local environmental legislation in Kosovo. 1.4 Main Beneficiaries, 24. The CLRP was designed to generate substantial environmental and health benefits. 25. Elimination of dust: The primary target group was the 21,500 beneficiaries in Obiliq municipality, who were most affected by air pollution caused by particulate matters arising from the dust. 26. Hazards due to geotechnical instabilities: The encroaching ash dump put at risk local households hugging the edge of the dump site. Nearby settlements would benefit from the stabilization of the Kosovo A ash dump by preventing their loss of private property. 27. Reclamation of land: The reclamation of overburden dumps would make land available for community purposes such as agriculture, natural habitats, recreation, and resettlement purposes. However, prior to any such dispositions by KEK, a consultative land use plan must be prepared, satisfactory to IDA (legal covenant.) 28. Removal of hazardous chemicals: Possibly the single most urgent environmental risk in Kosovo, aging tanks holding tons of dangerous chemicals were stored at the former gasification site. Spillage or leakage could have led to a major environmental disaster. Their safe removal would benefit both the environment and the people of Kosovo. 29. Capacity building at KEK and MESP: Officials at KEK and MESP would benefit from training sessions, on-the-job training, international designs and good practice for reclamation, technical assistance, study tours, expert review, exposure to best available technologies and international good practices in environmental regulations, preparation of complex safeguard documents such as the EIA for the hazardous chemical treatment and removal, and the ESIA for the proposed Kosovo Power Project including generation of environmental baseline data, etc, which will strengthen the institutions, improve the environmental performance of the energy and mining sector, and benefit overall environmental and public health outcomes. 1.5 Original Components 30. The project was approved with four components, each of which relates to all three parts of the PDO. 31. Component A: Preparation of the Mirash Open Pit Mine for Ash Management Prepare the Mirash open pit mine to receive and store ash from Kosovo A Power Plant and ash removed from Kosovo A’s open ash dump. Activities include detailed site investigations, 5 drainage and mine water management system, and adaptation of the ash disposal system to stop open ash dumping and redirect ash disposal to the prepared part of the mine. 32. Component B: Relocation of Kosovo A Ash Dumps into Mirash Open Pit Mine Remove ash and overburden materials from the Kosovo A ash storage facility. Activities include repair of special mining equipment, build open conveyor belt systems, service roads, and access ramps for moving the excavated ash to the disposal site in the mine for proper backfilling. 33. Component C: Reclamation of Overburden Dump Areas Mobilize existing KEK earth moving equipment and reclaim about 4.5 km2 of land through reshaping and re-cultivating overburden dump areas. 34. Component D: Project Management Support to KEK to implement the project. 1.6 Revised Components 35. An overview of revised components is presented in Table 3 in Annex 2. 36. Component A: Preparation of the Mirash Open Pit Mine for Ash Management Revised: June 3, 2009. The original project design envisaged transportation of dry ash from the Kosovo A power plant to the Mirash mine through a system of open conveyor belts. In an effort to considerably reduce dust formation and emissions and due to the substantial degradation of the conveyor belt system transporting the dry ash, an alternative wet ash disposal system was proposed and endorsed. The hydraulic ash transport and disposal system required substantial co- funding from KEK (first estimated at €4.0 million, but requiring €7 million in total). Project resources were reallocated to contribute to its installation for the environmental benefits. Meanwhile, KEK paid the remaining of the investment, as the wet-ash system also has substantial economic benefits in terms of less breakdowns compared with the old conveyor belt system allowing for more continuous operation of the power plant. 37. Component B: Remediation of Kosovo A Ash Dump Revised: June 3, 2009. Component B was modified to reflect the alternative option of environmental remediation of the ash dump in-situ with containment measures and reallocation of only those parts of the dump that had stability risks, rather than full excavation, removal and transportation of the ash dump to the Mirash Mine as originally envisaged (see section 1.3). 38. Component C: Reclamation of Overburden Area Revised: March 28, 2013. Activities were scaled-up due to successful achievement of original targets. Additional financing was made available to purchase more tree seedlings to be planted in the reclaimed overburden areas using KEK’s own staff and resources. 39. Component D: Project Management Revised: June 3, 2009 and March 28, 2013. With the addition of Component E, additional resources were made available to KEK for the purposes of implementation, management, and supervision. With the addition of Component F, MESP became the second implementing agency of the CLRP. Additional financing was made available to both KEK and MESP to support implementation efforts. 40. Component E: Removal of Hazardous Chemicals from Kosovo A’s Gasification Site Added: June 28, 2007. Revised: May 10, 2013. Component E, which was part of the original project design, was not included at appraisal due to insufficient funds; but then included as part of 6 the first Additional Financing. One of the most urgent environmental legacy issues that needed to be addressed was the tons of hazardous waste stored in aging tanks at the former Kosovo A gasification site. Their safe removal would help eliminate one of the most eminent environmental risks in Kosovo. Activities were scaled-up to ensure that all priority substances were removed. 41. Component F: Environmental Monitoring and Management Added: March 28, 2013. Component F aimed at building capacity in MESP to strengthen their mandate and capacity for improved environmental monitoring and management. As part of the Bank’s broader engagement in the mining and energy sector in Kosovo, Component F would support a number activities in preparation for dialogues on the new Kosovo Power Project (KPP) as well as supervise the implementation of a planned resettlement. Including air, soil and water monitoring and data collection, ESIA for proposed KPP, monitor the implementation of a Resettlement Action Plan (RAP) for Shala neighborhood of Hade village, and low carbon growth study. It is important to reiterate that the project did not cause nor finance the resettlement; it only supervised MESP’s responsibility to implement the RAP, which resulted from on-going mining activities for the supply of coal to Kosovo A and Kosovo B power plant. 1.7 Other significant changes 42. Funding allocations: The original project was approved with a financing gap of US$2.71 million. In December 2006, the Netherlands Ministry for Development Cooperation agreed to make available a grant in the amount of US$4.33 million equivalent to cover the gap. In the first and second additional financing, another US$5 million (IDA grant) and US$4.2 million (IDA credit) was made available. KEK, in addition to the US$3.15 million originally committed, financed €7 million to implement the wet ash disposal system and contributed additional US$3 million in reclamation and project support. This raised project costs from an original estimate of US$11.35 million to a total of over US$35 million. 43. Design, scope and scale: As described above, the project underwent significant changes to its design, scope and scale – some of which had been anticipated at the preparation stage. The project was successful in attracting considerable co-financing for existing and new activities. It was able to expand the reach of clean-up and reclamation activities and take advantage of the high interest in developing the mining and energy sector to promote good environmental practices and build institutional capacity both in the industry and the ministry. The scope was expanded from an early focus on the mining sector to also include the energy sector, as the Bank engaged in a broader dialogue with multiple development partners around plans for a new power plant. 44. Implementation schedule: The project closing date was extended eight times from December 31, 2010 to August 31, 2016, a total of 5 years and 7 months. A policy waiver for OP13.20 by the Bank Board of Executive Directors was obtained with the approval of the second additional financing as the new closing date extended beyond three years of the original closing date. 2. Key Factors Affecting Implementation and Outcomes 2.1 Project Preparation, Design and Quality at Entry 45. Drawing on lessons learned in other Kosovo projects, the design was kept simple with clear development objectives and sound implementation arrangements with early stakeholder participation. These are the key success factors at the preparation stage that help explain why and how the project achieved targeted outcomes. 7 46. The Bank’s recent experience in Kosovo had highlighted the importance of building ownership in local institutions, preparation of comprehensive implementation arrangements, selection of competent consultants, detailed reviews to ensure quality of consultants’ outputs, and wide consultations with local institutions, donors and other stakeholders. All of these good practices were taken into account in preparing the CLRP. According to the PAD, extensive consultations were undertaken with officials and managers from the Provisional Institutions of Self-Government (PISG), KEK administrators, and the donor community. 47. Building local capacity of KEK equipment and expertise to enable project implementation by the enterprise’s own staff, in contrast to hiring an international firm, was emphasized at the preparation stage. This would allow for institutional change of old industrial practices in favor of improved environmental performance and continued clean-up operations. 48. KEK showed early commitment to the project by (i) preparing an EIA and performing drilling tests for pre-feasibility studies, (ii) by dedicating all existing mining and earth moving equipment necessary for project implementation, and (iii) by allocating part of the Mirash mine to receive intended dump material and ongoing production of ashes from Kosovo A power plant. 49. A number of design issues are worth noting. First, the project was designed with a financing gap in mind. In consideration of this gap and the opportunity to close it, the flexible design had pre-identified possible savings, such as less equipment to be repaired, which would result in a longer implementation period for the activities and a greater reliance on internal KEK resources, but would still allow for the achievement of project objectives. Second, the technical solution of redirecting the open conveyor belts for transfer of dry ash from the power plant to the mine was disregarded soon after project approval. The alternative hydraulic ash handling system was very costly (see section 1.6), and given the limited project funding available it was not a feasible investment option for a plant that was earmarked for early closure5. Third, the analysis of alternatives in fact considered reshaping the ash dump, but the alternative of complete removal was initially preferred, as the costs would be the same, but removal would allow future development of the lignite deposits underneath the dump. Although the possibility was raised in the pre-Feasibility Study and the EIA during preparation that the underground below the ash dump could be contaminated with phenols, it was only during the detailed site investigations following project approval (a US$600,000 study), that phenols were discovered within the ash layers, having been co-disposed with the ash. Finally, the original results framework as approved in the PAD lacked some specific and measurable targets (see section 2.3), although most of the targets could be deduced from the arrangements for results monitoring table in the PAD. 50. It is important to keep in mind that pollution management projects dealing with clean-up and improved performance need to rely on extensive site investigations –as per international good practice- typically executed following project approval as the cost of these investigations are prohibitively expensive at the preparation stage. Their costs are more easily absorbed into the overall cost of the project, though it requires flexible and close supervision to allow for modifications of the design to fit the reality on the ground. 51. A financial management assessment was conducted for the project and found that KEK had satisfactory procedures in place to ensure proper financial accountability of the CLRP. The Kosovo Operational Procurement Review, completed in 2004, assessed the ability of 5 Later, plans for the new power plant became substantially delayed, and KEK decided the hydraulic ash system was worth the investment. 8 implementing agencies carrying out procurement processes under current conditions at “high risk”. To mitigate these risks, the implementation plan stipulated that Bank procurement specialist would provide (i) training to PMU and project related staff, (ii) Standard Bidding Documents, and (iii) prior and post reviews of procurement actions. 52. The project was classified as a safeguards category “A” and triggered OP 4.01 Environmental Assessment. Predicted environmental impacts were related to construction works and to the transport of hazardous materials from the gasification plant for incineration if this activity would be included in the project at a later stage. Project activities would not require any land acquisition or resettlement; hence OP 4.12 was not triggered at the project preparation stage (only later in the second project restructuring in 2013). Neither was OP 4.37 on Safety of Dams triggered as the project was designed to deal with ash disposal in a dry manner (nor was it triggered with the introduction of a wet as system as the 1:1 ratio of ash and water allows the water to drain and causes the ash to harden, thereby restoring the mine for proper land reclamation). 53. In hindsight, despite the fact that most of these risks were effectively mitigated, implementation delay due to the prevailing country context and issues regarding procurement and safeguards still arose during the implementation phase (see Section 2.2 and Section 2.4). However, it would appear that no further measures by the project team taken at the preparation stage could have prevented these problems. 54. Overall, given the Bank’s broad international experience in the mining and energy sector and with economic development in post-conflict zones, the Bank was in a good position to assist the Kosovar authorities in rehabilitating the power sector and to support KEK in completing the project successfully. 2.2 Implementation 55. In summarizing the implementation of the CLRP, and the first additional financing (FAF) and second additional financing (SAF), it’s important to keep in mind the overall backdrop of the prevailing country context over the decade from 2006 to 2016 when the project was implemented. As a new and emerging democracy, political instability of the government, hand-over of the government function from UNMIK to the Government of Kosovo, frequent change of ministers, and the absence of officials during prolonged appointment periods came to define day-to-day operations for PMU staff. It also bears mention that KEK management underwent transformation from being under an international caretaker company with foreigners in charge at the beginning of the project, to Kosovars being appointed to leadership positions and taking charge of KEK. As such, it is highly commendable how the project came to support the development of institutions in their infancy and to leverage sustained growth and integration of environmental concerns into the mining and energy sector. 56. The project enjoyed early implementation support from the Bank and the PMU. There was an eight months delay in declaring the project effective due to pending finalization of the sub-granting agreement between UNMIK, Kosovo Trust Agency (KTA), and KEK. With a retroactive funding facility in place and a proactive PMU at KEK, implementation activities began in September 2006 with contracts signed for US$275,000 and others in advanced stage of procurement. Effectiveness was declared on February 28, 2007. 57. During the first year of operation, the project was able to attract substantial additional funding. First, additional funds in the amount of US$4.33 million from the Government of The Netherlands (GON) were made available to close the financing gap, which was included in the 9 original project design. Shortly after, an additional grant of US$5 million from IDA was allocated in support of the initially intended removal of hazardous chemicals from the former gasification site. This became Component E in the first CLRP additional finance project paper. Effectiveness was declared on December 11, 2007. This allowed for a substantial broadening of activities from the original IDA Grant of US$5.5 million and doubled the size of the project. 58. The progress towards achievement of the Project Development Objective (DO) and Implementation progress ratings (IP) were downgraded to MS in early 2008, when the site investigation confirmed that the ash dump was contaminated with chemicals and recommended a different technical solution in Component A and B. KEK management demonstrated ownership of the project, expressing their support and financial commitment to the recommendations of the site investigation, including installation of a hydraulic ash handling system. This led to the first project restructuring of June 3, 2009. 59. With those changes, the nature of the technical works for the remediation partially shifted from a focus on use of special mining equipment for the planned excavation of the ash dump towards wider reclamation efforts with use of earth moving equipment and investment in a new ash disposal system. This prompted a repositioning of the PMU within KEK with reporting channels broadened from the Mining Division to also include the Generation Division. 60. A Mid-Term Review supervision mission was carried out on February 15-19, 2010. Chief among the points for discussion was the significant delay observed for component A, B, and C due to (i) budget overrun for implementation of the hydraulic ash transport system, which necessitated a second investment decision by KEK Board of Directors, and (ii) complications in arranging contractual payment for earth moving equipment, which led to a 7 months delay in delivery and the loss of the 2009 summer season for reclamation of overburden areas. 61. The DO and IP were upgraded to Satisfactory in 2011 with the approval by KEK management to finance the hydraulic ash system. Committing €7 million to the investment, the wet ash system was fully commissioned by December, 2013. 62. For Component E, following the completion of a comprehensive EIA process in 2010, delay in exporting hazardous material was mainly caused by the need to sign bilateral agreements with the governments of countries to which the chemicals would be exported for incineration and with all “transit” countries, since Kosovo could not ratify the Basel Convention regulating international transport of hazardous waste as it is not a member of the United Nations. All targets were met by end of 2012, thereby meeting the objectives of the first additional financing. 63. In June, 2012 a request was received from the GOK proposing now under IDA Credit terms additional financing to further scale-up existing cleanup and land reclamation activities started under CLRP, as well as to fund new activities associated with the environmental and social impact assessment for the KPP and with strengthening the mandate and capacity of MESP (Component F). This led to the second additional financing of US$4.2 million and a second grant from the GON in the amount of US$1.2 million, tripling the project size from its original scope. 64. The Operational Risk Assessment Framework (ORAF) recognized the reputational risks posed (i) by the monitoring of the implementation of the RAP, as there were outstanding issues from a previous resettlement by UNMIK, which could cast a shadow on the new resettlement process as well as the possibility that the new RAP might be poorly implemented, and (ii) by the Kosovo Power Project, as coal-fired power plants were controversial and often openly challenged 10 by NGOs/CSOs. Mitigation of these risks was linked to the design of a Panel of Experts, who in their technical capacity would assist the PMU and review consultant outputs. 65. The implementation of Component F was challenging from the start. The resettlement process was in breach of the RAP and the legal covenants by December, 2013, prompting the Bank to threaten to invoke its right to suspend disbursements. The issue was resolved when KEK approved additional payments for financial assistance towards paying rent to 21 families temporarily relocated before moving into new housing units under construction. 66. Progress on completing the New Hade resettlement site was slow. Housing construction by residents and completion and repair of water, sewage, and electricity infrastructure by MESP proceeded with great delay. In June, 2015 a complaint was submitted to the Inspection Panel (See section 2.4). While 52 households had obtained land titles in New Hade village, only 12 households were residing at the new site at project closing. 67. Bank monitoring of the RAP implementation remained steadfast and engaged. It is noted that the Bank used every management letter sent to the GOK since October, 2013 as an opportunity to raise issues related to the RAP as well as other important on-going resettlement issues6 to the highest level of attention. 68. Implementation of the ESIA also experienced delay. Subject to intensive review by the PMU, Panel of Experts, Bank staff, and the Stakeholder Review and Monitoring Committee, the draft was significantly overhauled and revised multiple times. Uncertainties remained to the end about the specific configuration of the power plant for the proposed KPP. This prompted short interval extensions of the project closing date towards the end of the project. However, as Bank teams and the GOK continued to discuss the plant size proposed by the investor, the project closed without the draft ESIA disclosed or publicly consulted7. 69. Component F was rated MU from its introduction in ISR 12 (August, 2013) until ISR 17 (June, 2016), two months before project closing. It was upgraded to MS in the last ISR 18 (August, 2016) with the completion of all activities except for the public disclosure of the ESIA. 70. In summary, project implementation in post-conflict Kosovo was successful in motivating the counterpart, scaling-up the project, and attracting substantial co-financing, which leveraged the project to have a transformational impact on the institutional capacity for environmental management, particularly in mining operations. 71. The project achieved the development objectives and exceeded most project indicators. This was accomplished through two PMUs with motivated and competent staff and close supervision from a highly responsive Bank team. It is commendable that the collaboration between Bank and PMU teams continued to operate with commitment and efficiency to handle unexpected implementation challenges. 6 Including advice on: interpretation of Resettlement Policy Framework; proper allocation of responsibilities between KEK, MESP, and municipality; expansion of Sibovc mine; future resettlement of Shibitulle village and Grabovci I Poshtem village; concerns surrounding definition of economic zone in the New Mining Plan; recommendations from First, Second, Final Resettlement Reports. 7 As per the project paper for the Second Additional Financing and restructuring, the objective of the ESIA for the KPP was to inform the decision-making process of the proposed investment and increase the monitoring and management capacity of MESP. It was not foreseen to be the final ESIA, which is the responsibility of the winning private investor. 11 2.3 Monitoring and Evaluation (M&E) Design, Implementation and Utilization 72. M&E design: The original M&E framework had sufficient baselines and targets, which could be deduced from the arrangements for results monitoring table. One PDO indicator (#4) did not appear in the arrangements for results monitoring. 73. M&E implementation: The results framework was thoroughly revised in the 2013 restructuring, which made monitoring and evaluation of project achievements more meaningful and measurable against linked PDOs. The project team was careful to interpret the original intent of each indicator included in the PAD and to strengthen its measurability against fixed targets. The project team also added new indicators and revised existing targets upwards to reflect continued work by the implementing agency exceeding original targets. For the hazardous waste treatment and removal, information on progress was obtained from the contractor and supervising engineer, through the PMU. 74. The responsibility to carry out ongoing M&E activities was placed within the KEK PMU. As the works were implemented by KEK itself rather than by external contractors, this was the appropriate manner for data collection. KEK reported on the progress of the amount of hectares of remediated ash dump as well as reclamation works in the overburden dump areas. In addition, a systematic monitoring system consisting of six dust collection points with filter equipment installed were sampled manually on a weekly basis. These monitoring data served as a control measure for planned remediation of the ash dump and improved ash disposal. The 2013 results framework restructuring would have benefited to include a target and indicator for air quality. The information was sufficient for informing the implementation support, resource allocation and supervision activities. 75. M&E utilization: Three continuous and automatic air monitoring stations, financed by the project and erected in the vicinity of Kosovo A power plant and the Mirash mine has produced a significant amount of data, which has been used as a baseline for the ESIA, and is now being maintained and utilized by KEPA, including for the section on air quality in the annual State of the Environment Report. 76. Future evaluation: As part of the detailed site investigation, a water quality survey of the ash dump itself did not detect any significant contamination of groundwater and surface water. Going forward, a future evaluation of the project could potentially look at groundwater pollution. The design of the remediation of the ash dump was such that there would be no further infiltration of ash pollutants into the groundwater (“store and release cover”). However, unequivocal proof of this natural process would take years to produce, as continuous monitoring of downstream water sources would be required to determine if any contamination had occurred and what other sources of water pollution there might be in the area also influencing water quality. 2.4 Safeguard and Fiduciary Compliance 77. Hazardous chemicals found in Kosovo A ash dump. During the early design phase of project implementation, a full site investigation was completed together with a detailed EIA/EMP for the ash dump remediation and overburden reclamation and approved by the WB. A couple of findings are worth noting as they relate to the project development objectives and laid the foundation for the first project restructuring: - Contamination of the ash dump by chemicals from the former gasification plant were not originally expected or found during initial drilling. The possibility for dumped phenols in the mining galleries underneath the ash dump was considered as a possibility as it had 12 happened in other old mine shafts. But the full site investigations demonstrated that phenol and other by-products had also been discharged within the ash dump; - A water quality survey of the ash dump itself did not detect any significant contamination of groundwater and surface water by the ash nor by waste products from the gasification plant found within the ash dump; - The properties of the ash, fine grain sizes and high adsorption capacity, apparently cut off the migration path for contaminants, and ash could represent a very effective containment for the tar deposited; 78. The CLRP project team was proactive in adopting the main recommendations in the site investigation to (i) undertake minimal mass removal on the ash dump to avoid further slope movements of the overburden area, (ii) cover the contaminated parts of the ash dump to avoid penetration and contamination of groundwater from harmful substances, and (iii) rearrange Kosovo A ash removal process to hydraulic transport (wet ash system) and (iv) process the restructuring to the PDO, requiring Board approval. 79. The CLRP-FAF for adding Component E Hazardous Materials Clean-up at the Gasification Site included a similar legal covenant obliging the implementing agency to execute a second EIA with preparation of detailed design for treatment and removal of chemicals to be approved by the World Bank prior to start of any works. This detailed EIA was also prepared, publicly disclosed and consulted in line with WB policies. 80. Inspection Panel Investigation Report. On June 12, 2015 the Inspection Panel received a complaint regarding resettlement and land issues related to three World Bank operations in Kosovo, including the proposed KPP and the CLRP-SAF. The complaint was filed by residents of Hade Village, New Hade resettlement site, and Obiliq Municipality, and CSOs in Kosovo. 81. None of the resettlements cited in the Request or the Inspection Panel’s report result from Bank-supported projects, but rather from ongoing mining activities in Kosovo. The CLRP did not cause nor finance the resettlement or infrastructure at the resettlement; it only monitored those responsibilities within MESP. 82. Importantly for this ICR, the Inspection Panel notes that monitoring and supervision under the CLRP-SAF was in compliance with OP/BP 4.12. However, the Inspection Panel recognized the real and often severe harm caused by mining operations and the impact of protracted resettlement processes. In this case, the RAP was prepared under the Bank-financed LPTAP in 2011. Two years later, monitoring of the RAP was eventually folded into the CLRP- SAF in 2013. The Inspection Panel report points to the capacity constraints of the implementing agency and acknowledges that the delay may have compromised the Bank’s ability to recommend solutions to the Government at a critical stage in the process. 83. In Management’s response to the Inspection Panel Investigation Report, it proposed three follow-up actions: (i) repair 200-meter section of clogged sewage, (ii) provide technical assistance to revise the RPF, and (iii) organize workshop with key government stakeholders and KEK to discuss recommendations by end of February, 2017. 84. All follow-up actions have been completed by the project team. The ICR team has obtained confirmation from MESP that the sewage has been repaired as of December, 2016. The ICR team also notes that the Bank team during the ICR mission took every opportunity available to explain and discuss with all relevant stakeholders critical issues regarding the need to revise the RPF. A workshop to provide technical assistance and discuss recommendations was held on 13 February 14th, 2017 with wide government participation. Based on the results of the workshop, a technical advisory note will be finalized and shared with GOK. It is important to note that only the sewage repair is directly linked to the CLRP, while the other two activities are dealing more broadly with land acquisition and resettlement practices in the mining sector. 2.5 Post-completion Operation/Next Phase 85. During the ICR mission, it was obvious that continued clean-up operations have been fully institutionalized in KEK. During a site visit, KEK staff from the Reclamation Department was engaged in finalizing the remediation of the last 30-40 ha of the Kosovo A ash dump. Relations with local communities living near the reclaimed ash dump and overburden areas have improved and the area near the ash dump is experiencing revitalization. KEK is also fully operating, financing and maintaining the wet ash hydraulic system. 86. The public sector in Kosovo is still heavily dependent on assistance from the international donor community. While local expertise and capacity deepens with every project, funding for implementation and maintenance in the mining and energy sector has to be continuously sought. 87. The Bank, for its part, continues to play an engaging role in the mining and energy sector in Kosovo. While the Bank has made no decisions so far on its potential support to the Kosovo Power Project, on-going discussions and preparatory studies are building the foundation upon which future decision-making will be based. 3. Assessment of Outcomes 3.1 Relevance of Objectives, Design and Implementation 88. Relevance of objectives: High. 89. Relevance of design: Substantial. 90. The project is based on a proper diagnosis of development priorities. The need to rehabilitate the mining and power sector was a high priority for the GOK at the time of appraisal and remains true today. The CLRP came on the heels of a major conflict and decades of outdated industrial practices and environmental neglect. Continued supply of electricity was essential for social and economic reasons, including for heating during the winter months, and to build Kosovo’s economy and create jobs. 91. As the GOK prepares for the next phase of investments in lignite coal mining and generation, the power sector is one of the key priorities outlined in the latest National Development Strategy for 2016-2021. The strategy “aims to provide reliable power supply that will improve the conditions of doing business, facilitate increased private investments […] and improve people’s wellbeing.” 92. More specifically, the Ministry of Economic Development (MED) in Kosovo has developed an Energy Strategy for 2013-2022. The three pillars of the strategy speak directly to the objective of the current project in addition to being aligned with a potential follow-on operation in the KPP: “Security of sustainable and quality supply”; “restructuring of the energy sector”; and “due consideration for environment protection and social issues”. 93. The first Country Partnership Strategy between the GOK and the World Bank for the period FY12-FY15 also provides evidence of high project relevance. Pillar 1 draws attention to 14 the continued need to “accelerate broad-based economic growth and employment generation” with focused attention on supporting the energy infrastructure, and Pillar 2 seeks to “improve environmental management” supporting the government in increasing energy efficiency and reducing environmental hazards. The forthcoming Strategic Country Diagnostic and Country Partnership Framework also place a significant emphasis on promotion of reliable energy and natural resources management. 94. The component design and responsive implementation allowed the project to stay relevant to emerging needs on the ground. 95. The project was designed with emphasis on building local capacity, technical expertise, and institutional ownership, which was suitable given the objective for on-going reclamation work to become a permanent activity in KEK’s mining practice. In the PMU, administrators and managers have received training on procurement and financial management enhancing their capacity to manage large-scale investments such as this project. At the company level, training on operation and maintenance of supplied equipment has strengthened the technical expertise of staff members and of the Reclamation Department, which was formed under the project. These outcomes will benefit the next phase of development in Kosovo’s power and mining sector, as the true impact of the project has been the transformation of environmental legacy issues and outdated mining and ash-handling practices by the industry. 96. Particularly in view of the EU accession process, the investments and capacity building for land reclamation under CLRP are highly relevant to Kosovo’s move towards meeting international standards. Mine reclamation is an integral part of BAT for mines. 97. The original PDO was too narrowly worded with a focus on one technical solution to meet the objective (see Section 6). The project team was responsive in revising the PDO early on when the site investigation recommended a different technical solution, as well as in fulfilling requests for additional activities and opportunities for scale-up, all while underpinning the original project development objectives. As such, the project design and implementation has stayed highly relevant to achieving Bank and country development objectives throughout the lifespan of the project. 3.2 Achievement of Project Development Objectives Original Objectives (as approved) 98. The only part of the original PDO, which necessitates a separate assessment of achievements relates to Outcome (b), specifically the part that aims to “enable KEK to remove the Kosovo A ash dump.” The decision to change from removal of the ash dump to in-situ remediation meant that the ash dump would remain in place. Therefore, achievement of this original objective is unsatisfactory. 99. Achievements of the remaining parts of the original objectives are assessed as part of the revised objectives, as the second change to the PDO added to the overall project objectives (not revising or detracting from them). Revised Objectives (following the first and second level one restructurings) 100. The project achieved stated development objectives and exceeded the targets of most indicators. First, it addressed environmental legacy issues related to open dumping of ashes on land from KEK’s Kosovo A thermal power plant by directing 100 percent of coal ash produced at Kosovo A power plant to the dedicated part of the Mirash mine by way of the hydraulic ash handling system, which reduced dust levels of the ash handling to well below the daily allowed 15 value and even to below the level where it can be measured. Second, it enabled KEK to free land for community development purposes currently taken by overburden materials by reclaiming 653 ha of land, equal to 68 percent of the area, and enabled KEK to remediate Kosovo A ash dump by remediating 179 ha of the ash dump, equal to 74 percent of the area. Finally, it built capacity in KEK and MESP to implement continued clean-up and environmentally good practices in the mining and energy sector by (i) creating a Reclamation Department with more than 50 staff members that is now a fully integrated part of KEK operations and that has reclaimed an additional 127 ha of former overburden dump areas using own fund, staff, and equipment; (ii) removing all priority hazardous chemicals from the former gasification site, 22,116 tons in total; and (iii) strengthening the review and monitoring mandate of MESP regarding environmental and social impacts of investments in the power sector. 101. Outcome A: Address environmental legacy issues related to open dumping of ashes on land from Kosovo A thermal power plant. Rating: High. 102. Outcome A is directly associated with outcomes from the activities completed under Component A and B, i.e. halting the practice of open dumping of coal ashes and remediating the ash dump itself. By preparing part of the Mirash mine to receive ash slurry from the power generation facility and by supporting the installation of a hydraulic ash handling and transport system with pipelines leading to the dedicated part of the mine, the practice for the last 50 years of openly dumping dry ash by using a spreader sitting atop of the ash dump has come to a complete stop as of December, 2013 when the facility was fully commissioned in a ceremony attended by public officials. 103. Indicator 1: Percentage of ash disposal that complies with environmental good practice and is redirected from open dumping on the Kosovo A Dump to the Mirash mine: 100 %. 104. 100 percent of coal ashes from Kosovo A are now disposed of directly into the Mirash mine in a wet manner, which eliminates dust arising from the transport and final disposal of the ashes. As the ash slowly hardens in a cemented form, the water is absorbed in the mix, which allows for the mine to be restored by covering with overburden material and top soil and eventually to be fully reclaimed for other productive uses. 105. Given that the technical solution of a wet ash disposal system is far superior to the originally intended redirection of the dry ash conveyor belts and complies with environmental good practice, the ICR team rates the achievement of this outcome High. Installing the hydraulic ash system required a highly leveraged investment and resulted in a significantly improved environmental performance of Kosovo A, hence the project was successful in achieving above and beyond the originally planned fulfillment of the PDO. Results video: http://www.worldbank.org/en/news/feature/2014/03/10/kosovo-open-ash-dumping-practice-ends. 106. Outcome B: Enable KEK to free land for community development purposes currently taken by overburden materials and enable KEK to remediate Kosovo A ash dump. Rating: High. 107. Outcome B is directly associated with outcomes from the activities completed under Component B and C. By undertaking detailed site investigations and designs, by supplying earth moving equipment, by training environmental staff, and by supporting and mainstreaming project activities into KEK operations through the establishment of a Reclamation Department, the project enabled KEK to remediate the ash dump and reclaim land from overburden dump areas 16 beyond original and revised scaled-up targets. This has freed the land for community purposes (see section 1.2 for details about access to freed land). 108. Indicator 2: Remediation of Kosovo A Ash Dump, eliminating dust problems and pollution infiltration from the ashes into groundwater (%): 74%. 109. Indicator 3: Contaminated land managed or dump sites closed under the project: 179 ha. 110. The original target to remediate 55 percent of the 243 ha large Kosovo A ash dump was achieved in November, 2010, within the original timeframe. By project closing, a total of 74 percent of the ash dump was remediated. This achievement exceeds the target of PDO indicator 2 by 35 percent. Completion of the remaining 30-40 hectares of the ash dump is planned by KEK with its own resources after project closing and on track for next winter season 2017/2018. 111. In hectares, a total of 179 ha of the Kosovo A ash dump site was remediated, i.e. closed. A scaled-up target of 156 ha was set in the 2013 restructuring, which had already been met at that point, and by project closing this target of PDO indicator 3 was exceeded by 14 percent. 112. Remediation of the ash dump has eliminated dust problems (see Indicator 4 below). Weekly readings of six manual monitoring points near the ash dump confirm that dust levels are so low that they are barely measurable (Figure 3). 113. Remediation has been undertaken in accordance with best available techniques to ensure that no further contamination of ground water will take place from the ash dump. The amount of overburden material that covers the ash dump is sufficiently large to form a “store and release cover”, where all rainwater is absorbed and subsequently evaporated. To the extent that the remaining part of the ash dump will be remediated to the same standard as hitherto, groundwater contamination from the ash dump is unlikely. 114. The results have been documented in the following video: http://www.worldbank.org/en/results/2012/10/06/cleaning-ash-and-chemical-waste-in-kosovo. Figure 1: Ash dump (before) Figure 2: Remediated ash dump (after) 115. Indicator 4: Reduce dust arising from the transport of ash and initiate and enable KEK to eliminate dust arising from the ash dump (mg/m2/day): < 100 mg/m2/day. 116. Remediation of the ash dump has had a measured effect on dust levels, which since December 2013 has been well below the daily allowed value of 300 mg per square meter per day. 17 Figure 3: Dust levels near Kosovo A ash dump, 2011-2015 117. Figure 3 shows weekly readings of dust levels in six monitoring points near the site. Samples were analyzed for weight and granulometry and served as a control measure for planned improvements of the ash dump operations. The graph shows the drastically decreased level of dust by the end of 2013 when the wet ash system was commissioned. By 2015, the dust level was below the level that the monitoring points could register. The result fully satisfies the target of PDO indicator 4. 118. Indicator 5: Land reclaimed for natural habitats, agriculture, or other land use purposes in KEK’s overburden areas (ha): 653 ha. 119. Indicator 6: Land reclaimed for natural habitats, agriculture, or other land use purposes in KEK’s overburden areas (%): 68%. 120. The original target to reclaim 450 ha of the 650 ha large overburden dump area for community purposes such as natural habitats and agriculture was achieved in October, 2011. A scaled-up revised target of 526 ha was set in the 2013 restructuring, which had already been met at that point. By project closing and per the latest ISR, a total of 653 ha of overburden areas had been reclaimed, exceeding the original target by 45 percent and the scaled-up target by 24 percent. 121. In percentage, a total of 68 percent of the larger 957 ha overburden area was reclaimed. A target of 55 percent was set in the 2013 restructuring, which had already been met at that point. By project closing and per the latest ISR, this target was exceeded by 24 percent. While no land reclamation target was defined as a percentage in the PAD, it is possible to deduce that the original intent was to reclaim 69 percent of the then defined overburden dump area of 650 ha. Even as the baseline overburden dump area was enlarged, the final achievement was in proportion to the originally intended scope. 122. The results fully satisfy the targets of PDO indicators 5 and 6. The land reclamation involved a number of different activities, including the detailed design to investigate in which area works would be required, physical reshaping of heaps and slopes, construction of main and minor access roads, installation of a surface drainage system, removal of illegally dumped trash, and planting of trees and mixed vegetation. While the project planted over 100,000 tree seedlings, the survival rate of those trees is relatively low (Lizmir overburden area estimated at 87%, but Kalaja overburden area only 60%). There were a variety of reasons for this, such as weed competition, a fire, cows and rabbits. KEK hired a guard to protect the seedlings better, but the survival rate of the 18 first Kalaja overburden area was still low. For the second area, more robust seedlings were purchased (see Annex 7 for more details in the Borrower ICR). 123. Outcome C: Build capacity in KEK and MESP for continued clean-up and environmentally good practices in the mining and energy sector. Rating: Substantial. 124. Outcome C is associated with outcomes from Component C, E and F. By building local capacity through staff training, technical assistance and supervision, and expert reviews, the project has initiated the establishment of a Reclamation Department of more than 50 staff in KEK, strengthened the mandate of MESP regarding environmental and social impacts of investments in the power sector, and removed all priority hazardous chemicals from the former gasification site. 125. Indicator 7: Increase capacities in KEK for continued clean-up operations and environmental good practices in the mining and energy sector (ha): 165 ha. 126. An additional 165 ha of overburden dump areas were reclaimed using KEKs own staff, equipment, and financial resources as a measure of their increased capacity in land reclamation, which were non-existent before project start. The 165 ha is reached by adding the baseline in 2013 of 69 ha plus additional hectares remediated in the Ash dump of 23 ha and plus additional hectares reclaimed in the overburden areas of 73 ha. A measurable target of 127 ha was set in the 2013 restructuring to reflect the original intent of “KEK staff fully responsible for clean-up and land reclamation operations” as defined in the PAD. The target was achieved by July, 2013 and by project closing the target was exceeded by 30 percent. 127. The achievement is evident of the momentous institutional capacity for improved environmental management, which has developed at KEK. After 50 years of dumping dry ash on open land, KEK established the Reclamation Department to carry out on-going reclamation work, backfilling the depleted mine fields with wet ash and overburden material. The reclamation department has grown to encompass over 50 staff member, who possess the necessary technical expertise and equipment to continue clean-up operations as an integrated business practice. This is the true expression of increased capacity in KEK, which has resulted from the project. 128. Indicator 8: Increase capacities in MESP for continued clean-up operations and environmental good practices in the mining and energy sector (text): ESIA for KPP prepared and resettlement of Shala neighborhood of Hade village completed. 129. As per the targets set when the indicator was introduced in the 2013 restructuring, the project supported MESP in (i) completing a draft ESIA for the proposed KPP and in (ii) monitoring the completion of the implementation of a RAP for Shala neighborhood of Hade village. Together, this was an expression of the increased capacity of MESP to review and monitor environmental and social impacts related to investments in the mining and energy sector. 130. The target “ESIA for KPP prepared and disseminated in line with Bank’s policies and good international practices” was partially achieved. The draft ESIA was completed in July, 2016. As there is on-going discussion between the GOK, WB, and potential investors as to the size and specifications of the proposed KPP, the ESIA cannot be completed, disclosed, nor publicly consulted upon yet. As such, the ESIA was prepared, but not disseminated. 131. The target “Resettlement of Shala neighborhood of Hade village completed in line with approved RAP” was achieved. The final RAP completion report was delivered in July, 2016. While the Shala resettlement process became subject to an investigation by the Bank’s Inspection 19 Panel, the conclusion by the IP and management was that monitoring and supervision was carried in compliance with the OP/BP 4.12 (see section 2.4). All pending action points outlined in the Management Response have been completed by the time of submitting this ICR. 132. In addition, numerous training sessions were provided to staff from KEK, MESP, KEPA, MOF, MED and other partners on resettlement planning, land acquisition, lignite-fired power plants, open cast mining, ESIA, monitoring, procurement, etc. with study tours to Germany and Poland. For an overview, see Annex 2. 133. These achievements satisfy PDO indicator 8. However, perhaps the most significant impact of the activities completed under Component F is a deepening of MESP’s commitment to environmental and social management in the mining and energy sector, and a strengthening of MESPs mandate regarding investments in the power sector going forward. This is evidenced from the activities, which are ongoing at MESP to revise the expropriation law to make an explicit link to the RPF, and a growing interest to focus on environmental and social issues in the mine area. 134. Indicator 9: All found priority hazardous substances from the gasification site safely removed and treated/disposed (tars, benzene, phenols, methanol, oily compounds) (tons): 22,116 tons. 135. The original target to remove, treat, and dispose of 4,300 tons of tar sludge, benzene, methanol and oily compounds and 13,245 tons of phenol in water solutions was achieved in 2012. A revised and scaled-up target of 4,780 tons of tar sludge, benzene, methanol and oily compounds, 2,232 tons of tar deposits, and 14,771 tons of phenol in water solutions was set in the 2013 restructuring, as additional hazardous chemicals were discovered during implementation. By project closing, a total of 5,109 tons of tar sludge, benzene, methanol and oily compounds, 2,232 tons of tar deposits, and 14,775 tons of phenol in water solutions were removed from the former gasification site and properly treated and/or disposed of, thereby exceeding the original target by 26 percent and the revised target by 2 percent. See Table 1. Table 1: Overview of hazardous chemicals removed and disposed Substance Original target (tn) Revised target (tn) Achieved (tn) Tar sludge, benzene, methanol, and oily 4,300 4,780 5,109 compounds, safely removed and disposed Tar deposits, removed and - 2,232 2,232 disposed Phenol in water solutions, Partial removal of 13,245 14,771 14,775 removed an treated on-site tons Total Max. 17,545 21,783 22,116 136. The achievement is significant. In part, because the continued degradation of the stored chemicals at the former gasification site presented one of the biggest environmental risks in Kosovo and in part, because of the tremendous challenges faced by the PMU and Bank team to ensure the export and safe transportation of the most hazardous chemicals to other countries for incineration. As Kosovo is not a signatory to the Basel Convention, the PMU, contractor, in close cooperation with MESP needed to prepare bilateral agreements with each country involved. 20 137. Indicator 10: Project beneficiaries: 21,500 residents in Obiliq municipality 138. An overall target of 21,500 project beneficiaries was set in the 2013 restructuring to reflect the group of residents in Obilic municipality most affected by high dust-levels. This number was also used as the basis for the financial and economic analysis of the project at appraisal. The target, which includes a sub-target of which 10,600 females, was reached by December, 2012 when 55 percent of the ash dump had been remediated. 3.3 Efficiency 139. Rating: Substantial 140. The original PAD included an economic analysis based on the benefits of elimination of health hazards due to dust, elimination of dangers to property due to geotechnical instability, and increased access to land due to reclamation. The analysis has been updated for the project quantifying the actual substantial benefits to Kosovo. The following benefits were quantified for the project (see details in Annex 3): - The complete halting of dry ash dumping on land and remediation of the Kosovo A ash dump that ensures that there is no more dust arising from the ash dump and ash handling. This generates significant health benefits for the local population, with an estimated value of US1.9 million per year. - Due to the stabilization and remediation of the Kosovo A ash dump the hazards due to the extensive geotechnical instabilities were removed and further loss of property in the areas were eliminated. Benefits estimated at US$350,000. - The reclamation of the overburden dumps will make land available that can be used in the future for natural habitats, agriculture and resettlement purposes. The values are estimated at US$5.5 million per year for the benefits of land reclaimed for future agriculture and US$2.3 million per year for land reclaimed for resettlement purposes. 141. The result of the economic analysis shows that the Economic Rate of Return (ERR) is 12 percent. Details are provided in Annex 3. 142. The project design was based on a least-cost approach, where international funds from IDA grants and credit were used to develop the design, to purchase / repair the equipment, and to provide staff training for the remediation of the ash dump and reclamation of overburden dumps, but the works were executed and financed by the mining and energy company, KEK. 143. The cost-effectiveness of the project becomes evident when compared with a similar regional project. For the CLRP, ash dump remediation cost approximately US$7 million for 179 hectares of which US$5.5 million was spent from IDA resources and US$1.5 million from KEK’s contribution. In comparison, the Gradac waste dump remediation in the Montenegro Industrial Waste Management and Clean-up Project (P122139), which is also based on works such as reshaping, stabilization, and covering is estimated at US$6.35 million for 12.5 hectares on the basis of contractors executing the works. 3.4 Justification of Overall Outcome Rating 144. Rating: Satisfactory. 145. Given that the project objectives were formally revised twice, the ICR team undertook a split evaluation of the achievement of project outcomes against original and revised PDOs. Table 2 below shows that early revision of the PDO (from removal to remediation of the ash dump) significantly improved overall project achievements and resulted in “above the line” rating. 21 Table 2: Split evaluation of PDOs Against first Against second Against revision of PDOs revision of PDOs Overall Comment original PDOs (2009) (2013) 1 Rating Unsatisfactory Satisfactory Satisfactory 2 Rating value 2 5 5 3 Weight (% 10% 62% 28% disbursed) 4 Weighted 0.2 3.1 1.4 4.7 value 5 Final rating Early revision (rounded) Satisfactory results in “above the line” rating 146. Under the circumstances in a challenging country context, including Kosovo’s move towards independence and the difficulties faced by an emerging nation and democracy, it is quite remarkable that the project enjoyed such great support that it was able to attract additional US$9.2 million in IDA funds and over US$20 million from other sources to achieve outcomes far beyond what was initially planned. Perhaps most importantly, the project ignited change of outdated ash-handling and overburden dumping practices and inadequate regulatory frameworks, with a high degree of neglect for the environment and the health of population, by enabling KEK to reclaim land as an integrated part of mining operations and encouraging the systematic and detailed assessment of environmental and social impacts of new power generation and mining activities using proper air, soil, water and groundwater baseline data. 147. In arriving at an overall outcome rating of satisfactory, it is noted that: a) the Project enjoyed a high degree of relevance of objectives and remained relevant and feasible with a technical change to the design; b) the achievement of project development outcomes was satisfactory against revised objectives; c) the outputs and outcomes were wider than and exceeded the objectives defined under the original project; and d) the economic analysis confirms the substantial efficiency of investing in clean-up of environmental legacy issues and improved environmental performance, based on a least-cost design that underpins the inherent sustainability of project development outcomes. 3.5 Overarching Themes, Other Outcomes and Impacts (a) Poverty Impacts, Gender Aspects, and Social Development 148. The importance of power to the provision of other basic services cannot be underestimated. Power is central to sustainable economic, social, and environmental development as well as to poverty reduction and is paramount to Kosovo’s overall development process. This was recognized in the Bank’s Interim Strategy Note applicable at the time of project approval, and remains true today. Without better environmental and social performance of the power generation sector and its associated mining, it will be challenging if not impossible to continue to deliver these basic services of power provision to the citizens of Kosovo. 149. At the community and plant level, the positive health impacts of remediating the ash dump and halting the practice of openly dumping coal ashes are in no uncertain terms large. The largest impacts are felt by KEK employees and nearby resident, who are less exposed to high dust levels on a daily basis and where the remediation of the ash dump allowed for villages in the neighborhood to experience some revitalization. 22 150. While revitalization of surrounding villages was not a formal objective of the project, anecdotal evidence of project impacts is easy to find. During the ICR mission, a visit to Dardhiste village bordering the Kosovo A ash dump showed how the town is flourishing following remediation of the ash dump and Dragodan overburden area. Housing construction is on the rise, as residents are moving back to the village, and a new mosque was erected. Similarly, in nearby Lizmir located next to part of a reclaimed overburden area, investments in existing infrastructure, such as improvements to the local school, are materializing. (b) Institutional Change/Strengthening 151. At KEK, the key evidence of institutional strengthening is the establishment of a full-time mining Reclamation Department with more than 50 staff, which now has many years of experience in land reclamation works. Prior to and following project closure, reclamation works have been continued by KEK with full responsibility for equipment, staff, and funding. In addition, KEK has been fully responsible for the operation and maintenance of the wet ash system since its commission in December, 2013 and has operated it without any major issues. 152. At MESP, extensive training in Best Available Techniques and International Standards for mining and electricity production for government officials will have a longer-term impact on the capacity of the Ministry. Environmental baseline data, collected as part of the impact assessment, is now being used for many other purposes. 153. Three continuous and automatic air quality stations, purchased and installed under the project, are also fully integrated in the operations and maintenance by the Kosovo Hydro- Meteorological Institute, under MESP. Information is published annually in the State of the Environment Report: See (http://www.ammk-rks.net/?page=2,7,367). (c) Other Unintended Outcomes and Impacts (positive or negative) 154. The project helped motivate KEK management to understand the positive returns of investing in technological solutions with high environmental performance. During the lifetime of the project, KEK invested additional €30 million in retrofitting existing stacks at Kosovo A with new filters (electrostatic precipitators), thereby significantly reducing air pollution. In addition, the wet ash system also generated substantial benefits for lesser stoppage of the Kosovo A power plant, as the old dry ash conveyor belt system broke down frequently and each time the ash handling and transport was stopped, the power plant also had to stop production. 155. Relations with local communities have improved. The Reclamation Department, which was established under the project and now a fixed part of KEK operations are in close contact with residents from nearby villages. During the ICR mission, the team had a couple of encounters with local residents, who expressed gratitude for the helpful KEK staff to make available their earth moving equipment, shovels, and trucks in solving local problems on the ground, such as removal of illegally dumped trash, layering a school yard, and flattening a dirt road. The remediation of the ash dump and halting of handling and dumping of dry ash was also a key factor in the revitalization of villages close to the ash dump (such as Dardhiste). 156. On November 30, 2016 Kosovo’s National Assembly approved Law No. 05/L – 044 on the environmentally endangered zone of Obiliq and its surroundings. The purpose of the law is to define the municipality and its surroundings as a zone of particular environmental risk and undertake the measures to reduce the negative impact from the sources of pollution. The law has not yet been signed into effect. 23 157. The Government has set up a multi-agency commissions to prepare legislative packages to: a) update the Spatial Plan for the New Mining Field (NMF) to reflect the new 450MW plant configuration, recognizing that the Zone of Special Economic Interest area is too large and adjustment of construction freeze is required; b) update the Resettlement Policy Framework for the NMF based on lessons learned to date; and c) amend the Expropriation Law to include a link to the updated RPF so that it becomes part of the legal framework and corrects the current legal gap. While not a direct outcome, the project has helped motivate this development. 158. As indicated, the pilot resettlement training and study tour that was organized under the Project in December 2014 was scaled up by the Bank, in partnership with other stakeholders, into a two week-long international practical course on “Land Acquisition, Resettlement and Social Sustainability” in Groningen, The Netherlands (July 6-17, 2015). The course is delivered by internationally recognized experts, includes 30 experienced practitioners (including 5 from Kosovo) from over 10 countries and also has a study tour to the lignite mine in Germany. This course has been and will continue to be offered every six months. 3.6 Summary of Findings of Beneficiary Survey and/or Stakeholder Workshops 159. N/A 4. Assessment of Risk to Development Outcome 160. Rating: Moderate. In assessing the risks, each part of the PDO is considered. 161. First, many of the development outcomes achieved in addressing environmental legacy issues are not easily reversed, and the practices that created those legacies are unlikely to be repeated. Open dumping of coal ashes has been stopped through cost-effective investments in a hydraulic ash handling system with a fairly short pay-back period. The conveyor belts which used to transport the dry ash have been dismantled, and the wet ash handling system is an integrated part of the power plant. The remediation of the ash dump, the reclamation of the overburden areas, and the removal of hazardous chemicals from the former gasification site are all fixed achievements. At this point, it is unlikely that the mining and energy sector would reverse to using outdated practices with high environmental costs, as these are impediments to attracting international funding for future investments and not in line with Kosovo legislation. 162. Second, enabling KEK to free land for community development purposes and to remediate the ash dump was achieved through establishing and mainstreaming the Reclamation Department into daily operations. Thus, at project closing, KEK possesses the technical expertise, the equipment, and the operational and financial frameworks to finalize the remediation of the remaining hectares of the ash dump and continue with land reclamation of overburden areas and mine restoration as an integrated part of KEKs business practice. The main risk going forward relates to the upkeep and maintenance of expensive machinery and equipment needed. Too often, replacement of spare parts can leave work undone for extended periods of time. However, the reputational gains from proper environmental and social management as well as the EU Directive which have been transposed into Kosovo legislation and which require the power and mining sector to start working in accordance with Best Available Techniques are likely to pull KEK further in the direction of complying with international standards. 163. Third, the risks at an institutional level for continued clean-up operations and environmentally good practices in the mining and energy sector are mainly tied to external relations and events, such as Kosovo’s accession to EU and foreign and multilateral investments in a new power plant and its associated mine. As Kosovo relies heavily on donor funds and 24 foreign direct investments and is on an EU accession path, the risk to changing institutional priorities is low. However, at the local level, there seems to a greater risk of a national and institutional brain drain, as competent staff seeks new opportunities abroad or in the private sector, where salaries are more competitive. 164. Overall, the CLRP has ignited a change of outdated ash handling and overburden dumping practices and inadequate regulatory frameworks in the mining and energy sector with substantial tangible and irreversible outcomes. Hence, the overall assessment of risk to development outcomes is moderate. 5. Assessment of Bank and Borrower Performance 5.1 Bank Performance (a) Bank Performance in Ensuring Quality at Entry 165. Rating: Moderately Satisfactory 166. At the project preparation stage, the Bank team employed due diligence in basing the project on a solid diagnostic foundation of development priorities, taking into account the lessons learned from other clean-up projects in the mining and energy sector. The strategic relevance of the project, and the overall project concept to initiate and enable KEK to improve environmental performance as part of regular mining and electricity production was sound and remained relevant throughout its lifetime. The project enjoyed early high-level commitment and local ownership. Provisions for procurement, financial management, and safeguards were all adequate at the preparation stage. 167. The project was delivered to Board in less than 10 months, which is substantially shorter compared to other pollution management projects in ECA, such as in Kazakhstan8(2 years and 8 9 months) and Montenegro (3 years and 6 months). The project concept included legal covenants to prepare and have the WB approve detailed environmental impact assessments after the finalization of the site investigations and detailed design of the remediation works prior to the start of civil works. 168. One moderate short-coming by the Bank team in ensuring quality at entry relate to the definition of the PDO in relation to the design of component B, which rested on the findings of the detailed site investigation. If the PDO has been worded a bit more broadly instead of specifying to “remove” the ash dump, the change in technical solution to “remediate” the ash dump would not have required a Board Level restructuring. Pollution management projects always constitute risks, and flexibility is needed to allow for adaption of the preferred technical solution once more details from the site investigations of the pollution situation become available. (b) Quality of Supervision 169. Rating: Moderately Satisfactory 170. The World Bank task team conducted 29 implementation support missions in 10 years, or 2.9 missions per year: a rate above the planned two implementation support missions per year. Given the structurally complex implementation period with two additional financing projects enveloped into the CLRP, and two restructurings with substantial widening of the 8 Nura River Clean-up Project, Ust Kamenogorsk Environmental Remediation Project. 9 Industrial Waste Management and Clean-up Project. 25 original design and scale-up of original targets, the high number of missions is evident of a highly engaged Bank team. 171. What is notable is the level of dedication by the Bank team, demonstrated by being responsive and proactive. There was substantial technical support to assist KEK in complex procurement and technical implementation. Exemplary examples of this are: (i) The first-ever export of hazardous waste from Kosovo to other EU countries through establishment of bilateral agreements with all transit and waste import countries as Kosovo is not a signatory to the Basel Convention; (ii) The remediation of the ash and overburden dumps by the implementing agency itself without prior experience in such work; (iii) The substantial supervision support to the supply and installation contract for the wet ash system, which is a BAT option in ash management and which has been operating since hand-over without problems; and (iv) The support to two PMUs, staffed with technical, financial, and procurement personnel. Extensive training and hands-on learning was made available to ensure compliance with Bank policies and standards. 172. The adaptive and proactive restructuring of the project design related to Component A and B with regards to installing a hydraulic ash transport system and in-situ remediation of the ash dump served the project well. In contrast, the late addition of Component F and the challenging implementation that followed became a liability for the entire project, which in effect had fulfilled all original targets by the time of the 2013 second Additional Financing and restructuring. While it is commendable that the project was so successful in attracting additional co-financing for expanded and new activities, it is worth considering if these activities would not have benefitted from being executed under separate projects. Component F significantly delayed project implementation and increased costs of supervision incrementally in the final years of implementation (see Annex 4). 173. The Bank team showed timely and dedicated attention to the Inspection Panel investigation, which began in 2015. Management remained engaged in raising critical resettlement issues to a high-level of attention. Post project closing, the Bank has continued to work on completing outstanding issue related to the resettlement of Shala neighborhood of Hade village. (c) Justification of Rating for Overall Bank Performance 174. Rating: Moderately Satisfactory 175. The Bank project team demonstrated a high level of commitment and supported the PMUs in a timely and appropriate manner. The additional requests for financing from the Borrower to scale-up activities and the on-going discussions between the Bank and the GOK about future investments in Kosovo’s power sector is a testament to the trust and leverage that the Bank has brought to bear over the years. 176. The project was prepared in a timely fashion and in accordance with good international practices for clean-up and land reclamation projects, and project implementation adapted to the changing of local conditions and uncertainties. 177. The decision to add an entire new set of activities at the heels of an otherwise successful implementation period was questionable. By rolling in a second PMU and a new set of activities with high reputational risks late in the implementation phase, there were less than optimal conditions for a successful implementation of the CLRP-SAF. 26 5.2 Borrower Performance (a) Government Performance 178. Rating: Moderately Satisfactory 179. The Government of Kosovo fulfilled its obligations adequately. There was some difficulty with ratification immediately following Board approval, which resulted in a seven months’ delay before effectiveness. However, following effectiveness, transactions proceeded smoothly, although with some interruptions in regular transactions due to the overall political environment in the country. (b) Implementing Agency or Agencies Performance 180. Rating: Moderately Satisfactory 181. The PMU at KEK performed satisfactorily. The high level of ownership, the growing technical capacity of staff members, the dedication and professionalism of the team are all key factors in explaining the successful achievement of project targets. Particularly commendable is KEK’s significant co-financing for the wet ash system (€7 million), which was not part of the original design, but which became essential to achieving intended project outcomes. Equally important to project outcomes was the newly established Reclamation Department, which started to focus for the first time in KEK’s history on remediation of environmental legacies and which exceeded the project targets and is continuing to date with all remediation and reclamation works fully funded by KEK. KEK has fully mainstreamed the department of 50 staff into their daily operations and annual budget. 182. The main implementation challenge for the PMU at KEK occurred early in the project and related to the delay in approving contract payments for the supply of earth moving equipment, which affected the implementation schedule of component B and C. KEK also failed to make timely payments for temporary rent allowances in the resettlement of Shala neighborhood of Hade village. This caused the project to be in bad standing with the legal covenants. 183. The PMU at MESP performed moderately satisfactorily. A competent team of staff members were assembled, though hitting the ground running in the midst of project implementation required significant support from the Bank team. The main challenges faced by the PMU at MESP related to the quality of the ESIA, which based on expert reviews required significant revision, and completing the resettlement of Shala neighborhood of Hade village. However, MESP was dedicated to and did fix the broken sewage section at the resettlement even after project closure. MESP has grown its capacity for handling future resettlements and strengthened their overall mandate for managing environmental and social impacts in the mining and energy sector. (c) Justification of Rating for Overall Borrower Performance 184. Rating: Moderately Satisfactory 185. The overall rating for Borrower performance is moderately satisfactory. Despite a challenging implementation environment with a number of external factors affecting the project, the Borrower and implementing agencies achieved the stated development objectives and exceeded them. This is attributable to two dedicated and competent PMUs supported by a committed GOK and by a responsive Bank team. 27 6. Lessons Learned 186. Client and stakeholder ownership. One of the key lessons, which were reflected in the project design, was the importance of ownership of local institutions and project implementation by the enterprise’s own staff. This model was based on a previous successful clean-up mining operation in Trepca and applied in a similar manner to involve KEK in the implementation arrangements. Indeed, the implementation arrangements created such ownership for the clean-up operations with the establishment of a full time Reclamation Department of more than 50 staff members and the continuing of clean-up operations following the project closing date. It is also evidenced by the large amount of additional co-financing that KEK made available in environmental investments, first in the wet ash system and later in the filters that were applied for the stacks. 187. PDO should focus on problem, not the technical solution. The PDO could have used a more flexible wording for the “removal” of the Kosovo A ash dump to allow for this adaptation and to avoid a Board restructuring once the full project design was finalized. In pollution clean-up projects, adaptation to local conditions and inherent uncertainties regarding the extent of pollution is largely a process of “learning by doing”, and flexibility during project implementation is a key factor to allow for adaptation once more detailed investigations of the pollution situation become available. Pollution remediation is a risky business based on its legacy, and exposed intrinsically to a high level of uncertainty, even with the most advanced knowledge and sophisticated technology. When contamination occurs, the involved physicochemical processes tends to be governed by complex, multi-factorial conditions that can lead to extremely irregular pollution distributions and create a high probability for unforeseen situations that are uncovered only during implementation and even during remediation works. And this all has implications on costs. In allowing adequate time and resources for rigorous site investigations, there is a need for flexible supervision to adapt to these circumstances during implementation and allow the project objectives to be achieved using the most appropriate technical solutions. 188. Late term addition of project activities are to be avoided. Another lesson learned relates to the late decision of adding a new component with the responsibility of monitoring a resettlement process unrelated to the project. In 2013 when the second additional financing was approved, most key indicators had already been met. In hindsight, it appears that the technical and investment focused CLRP should not have become overburdened by unrelated resettlement issues with high reputational costs. 189. Trade-offs in preparing pollution management projects. Another lesson is related to the trade-offs inherent in preparing pollution management projects, specifically clean-up and reclamation projects. These projects typically require detailed technical investigations prior to project design which are often time and budget intensive. However, the preparation period for typical Bank projects does not afford the time that is required for such detailed investigations to be carried out prior to project approval. At the same time, countries may also not be willing to borrow money for conducting those studies without the assurance of a loan. This creates a situation as exemplified in the Kosovo CLRP project where project redesign is called for shortly after loan approval. This is to be resolved by having a more flexible PDO as mentioned above or a longer preparation time in case countries are willing to borrow to this end or substantial grant financing is available. 190. Flexible M&E framework. Project level M&E should be given due attention at the project preparation and implementation stage. Due to the nature of a clean-up operations, project level indicators need to be given due attention for changes and monitoring during implementation. 28 Since monitoring is complex it should thus be given greater attention and weight during implementation. It is also important to have the client assume these responsibilities to foster a target- and results-driven mindset within the country. 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners (a) Borrower/implementing agencies (b) Cofinanciers (c) Other partners and stakeholders N/A 29 Annex 1. Project Costs and Financing (a) Project Cost by Component (in USD Million equivalent) Appraisal Estimate Actual (USD Percentage of Components (USD millions) millions) Appraisal 2.76 Component A 2.76 802 9.203 Component B 5.48 6.48 118 4.05 Component C 2.40 177 0.202 1.42 Component D 0.72 0.491 279 0.102 5.631 Component E 1.602 n/a 0.602 2.302 Component F n/a 0.602 Total Baseline / Project Cost* 11.36 35.43 312 Total Financing Required 11.36 35.43 312 * No contingencies or front-end fees applicable. (b) Financing Appraisal Actual Type of Estimate Percentage of Source of Funds (USD Cofinancing (USD Appraisal millions) millions) 6.00 Borrower 3.15 483 9.203 5.50 IDA Grant 5.50 191 5.001 NETHERLANDS: Min. of Foreign 4.334 n/a Affairs / Min. of Dev. Coop. NETHERLANDS: Trust Fund 1.20*2 n/a IDA Credit 4.202 n/a Total Financing Available 8.65 35.43 410 1 First additional financing, June 28, 2007. 2 Second additional financing, March 28, 2013. 3 Approximate estimate of KEK’s co-financing for the wet ash disposal system of 9.2 million in USD on June 3, 2009, the date of the first project restructuring. 4 Grant of €3 million from the GON covered the initial financing gap of US$2.71 million, and the balance was earmarked to Component D and E (US$1.12 million) at the time of the first additional financing. * Additional self-standing grant of €0.9 million from the GON financed further environmental monitoring and management at MESP, supporting the overall project objectives through equipment repairs and removal of hazardous chemicals from the gasification site. 30 Annex 2. Outputs by Component 191. The following section provides (i) an overview of revised components, (ii) an overview of outputs by components, (iii) a timeline of important events, (iv) an overview of the original and revised results framework, (v) before and after photos of key project achievements; and (vi) an overview of key training sessions. Table 3: Overview of revised components Final components Revised / Added Scope Rationale Component A: June 3, 2009. Revision Changed from dry ash Reduce dust formation Preparation of the of planned activity did to wet ash disposal and emissions. Mirash Open Pit not require Board system. Mine for Ash approval. Management Component B: June 3, 2009. First Changed from Detailed site Remediation of Board approved removal to in-situ investigations revealed Kosovo A Ash project-level remediation of a number of technical, Dump restructuring. Kosovo A ash dump. environmental, and financial reasons. Component C: March 28, 2013. Additional tree Scale-up. Reclamation of Board approved planting in Overburden Area additional financing to overburden areas. scale-up of activities. Component D: March 28, 2013. Project support to MESP would be the IA Project Management Second Board both KEK and MESP of new Component F approved additional as implementing financing. agencies Component E: June 28, 2007. When added, funds New component, Removal of Included in the first covered the removal which would eliminate Hazardous Board approved of highest priority one of the most urgent Chemicals from additional financing. hazardous chemicals environmental risks in Kosovo A’s from the former Kosovo. Gasification Site March 28, 2013. gasification site. Part of the original Scaled up in the project design, the second Board Scale-up of activities component was not approved additional ensured full removal included due to financing. of all priority insufficient funds at hazardous chemicals. the time. Component F: March 28, 2013. Implement ESIA for New component, to Environmental Added in the second KPP and monitor the support MESP in Monitoring and Board approved implementation of building capacity for Management project-level RAP of Shala continued restructuring and neighborhood of Hade environmental additional financing. village. management and monitoring. 31 Table 4: Outputs by component Component Output Component A: - Prepared site investigations and detailed design Preparation of the - Reshaped dedicated part of the mine Mirash Open Pit Mine - Installation of a simple base liner for Ash Management - Drainage and mine water management system - Installation of hydraulic ash handling system - Installation of pipeline leading from Kosovo A power plant to Mirash mine for disposal of wet ash Component B: - Delivery of earth moving equipment Remediation of Kosovo - Removal of unstable parts of the ash dump A Ash Dump - Contaminated parts of the ash dump covered on site - Reshaped and covered ash dump to allow re-vegetation Component C: - Prepared site investigations Reclamation of - Undertook civil works Overburden Dump - Planted 138,000 tree seedlings, survival rate much lower Areas at 60%-80% Component D: Project - Daily project implementation support Management - Training on procurement and financial management - Monitoring and evaluation of project outputs and impacts Component E: - Prepared feasibility study, EIA and EMP Removal of Hazardous - Repackaging of chemicals for export Chemicals from Kosovo - On-site treatment of phenol solutions in water A’s Gasification Site - Preparation of export permits - Preparation of bilateral export agreements with destination countries - Export of hazardous chemicals Component F: - Installation of three air monitoring stations Environmental - Implementation of soil and water monitoring program Monitoring and - Preparation of ESIA for proposed KPP Management - Implementation of Expert Panel for review functioning - Monitored the implementation of the RAP for Shala neighborhood of Hade village - Preparation of Low carbon growth energy strategy 32 Project Timeline Concept Review: August 31, 2005 Project approval: June 13, 2006 First additional financing: June 28, 2007 First Board-level restructuring: June 3, 2009 Mid-Term Review: February 15, 2010 Second additional financing and Board-level restructuring: March 28, 201310 Project closing: August 31, 2016 ICR Mission: November 13-18, 2016 10 This date was pulled from the system and could not be changed, but the actual date of Board approval is May 10, 2013. To be consistent, the ICR will make reference to March 28, 2013 throughout the document. 33 Original and Revised Results Framework Table 5: Original results framework from PAD PDO Indicator Intermediate Indicator Target Disposal of ashes from Kosovo A Prepare Mirash mine for sanitary 100% at the open ash dump will be disposal of Kosovo A ashes. stopped and redirected to the Transfer of ash stream from Kosovo A 0% of ash production to go Mirash mine. to the dump site will be stopped and to open ash dump redirected to the Mirash mine. Initiate and enable KEK to Initiate the removal of Kosovo A ash West tip removed for 100% remove Kosovo A ash dump and dump and final disposal in the Mirash East tip removed for 20% final disposal in the Mirash mine, mine, eliminating dust problems and thereby initiate and enable KEK pollution infiltration from the ashes to eliminate pollution infiltration into the groundwater. from the ashes into the groundwater. Reduce dust arising from the N/A N/A transport of ash and initiate and enable KEK to eliminate dust arising from the ash dump. Initiate and enable KEK to reduce Enable reduction of loss of property in 0 houses at risk loss of private property in the area the areas by eliminating the by eliminating the extensive geotechnical instabilities from the geotechnical instabilities from the Kosovo ash dump. Baseline: 10 Kosovo A ash dump and adjacent houses at risk. overburden dumps. Initiate and enable KEK to Initiate reclamation of 6.5 km2 of land 4.5 km2 achieve land reclamation for available (650 hectares) for natural habitats, agriculture, community development including resettlement or other land use agriculture, resettlement purposes purposes. and/or natural habitats. Increase in capacity in institutions Increase in capacity in institutions and KEK staff fully responsible and KEK for good environmental KEK for good practices for lignite for clean-up and land practices mining operations. mining operations. reclamation operations 34 Table 6: Original and revised results framework PDO Level Indicators Comments Original (PAD) Revised Indicator Target* Indicator Target Disposal of ashes from Kosovo 0% of ash Percentage of ash disposal that 100% Revised: March 28, 2013. Reworded to allow A at the open ash dump will be production still complies with environmental for better tracking of results (baseline and stopped and redirected to the dumped on open ash good practice and is redirected target value changed to percentage value). Mirash mine. dumps from open dumping on the Kosovo A Ash Dump to the Mirash Mine Initiate and enable KEK to West tip removed Remediation of Kosovo A Ash 55% Revised: April 21, 2009. remove Kosovo A ash dump for 100% Dump, eliminating dust As the approach changed from removal of and final disposal in the Mirash East tip removed for problems and pollution Kosovo A ash dump to in-situ remediation of mine, thereby initiate and 20% infiltration from the ashes into the ash dump, the indicator was revised enable KEK to eliminate (of 25 million m3) the groundwater. accordingly. Originally, the target value pollution infiltration from the referred to “m3 of ashes removed”. The ashes into the groundwater. revised indicator would track the “percentage of ash dump remediated”. Based on an interpretation of the original project design in the PAD, which envisaged completion of 55 percent of the required works (i.e. “initiate and enable”), the same target of 55 percent was applied to the remediation indicator. Contaminated land managed 156 ha Added: March 28, 2013. or (industrial) dump sites Core sector PDO indicator linked to closed under the project (core Component B introduced to track sector indicator). remediation of the ash dump site in hectares, as a companion to PDO indicator 2. The target was calculated as 55 percent of the ash dump size, but due to using 283 ha as the basis of the ash dump size, the target was overestimated. Given that the size of the ash dump is 243 ha (as noted several places in the same restructuring document) the correct target would have been 134 ha. For consistency, however, this ICR will use the 35 PDO Level Indicators Comments Original (PAD) Revised Indicator Target* Indicator Target target of 156 ha as entered. At the time of the restructuring, the target had already been met. Reduce dust arising from the N/A Reduce dust arising from the <300 mg/m2/day Indicator target never defined, tracked, transport of ash and initiate and transport of ash and initiate revised nor dropped. In an effort to measure enable KEK to eliminate dust and enable KEK to eliminate project achievements against this original arising from the ash dump. dust arising from the ash indicator, the ICR team has applied a target dump. of “dust levels below allowed daily value of 300 mg/m2/day” in accordance with local environmental legislation in Kosovo. Initiate and enable KEK to 4.5 km2 Land reclaimed for natural 526 ha Revised: March 28, 2013. achieve land reclamation for habitats, agriculture or other Strictly adhering to the original results natural habitats, agriculture, land use purposes in KEK’s framework in the PAD, the ICR team will resettlement or other land use overburden areas. apply the target of 450 ha in this final purposes. evaluation of achievements. This is in line with the wording used through-out the PAD to “initiate and enable”. To reflect ongoing work at the time of the restructuring, the target was scaled-up to 526 ha. The revised target was based on a calculation of 55 percent of an enlarged overburden dump area of 957 ha, which became known due to more detailed surveys done as part of implementation, instead of the original 650 ha. Land reclaimed for natural 55% Added: March 28, 2015. habitats, agriculture or other Indicator linked to Component C was land use purposes in KEK’s introduced to track land reclamation in overburden areas. percentage, as a companion to the original PDO indicator 5. It is not clear to the ICR team on which basis the target of 55 percent was defined. In interpreting the original intent from the PAD, to “initiate reclamation of 650 ha” with a target of 450 ha, this would 36 PDO Level Indicators Comments Original (PAD) Revised Indicator Target* Indicator Target imply a target equal to 69 percent. For consistency, the ICR team will refer to 55 percent. At the time of the restructuring, the target had already been met. Initiate and enable KEK to 0 houses at risk Revised: March 28, 2013. reduce loss of private property Dropped as a PDO level indicator to avoid in the area by eliminating the duplication with intermediate-level indicator. extensive geotechnical instabilities from the Kosovo A ash dump and adjacent overburden dumps. Increase in capacity in KEK staff fully Increase capacities in KEK for 127 ha Revised: March 28, 2013. institutions and KEK for good responsible for continued clean-up operations Indicator linked to Component F was revised environmental practices mining clean-up and land and environmental good to reflect capacity building for continued operations. reclamation practices in the mining and clean-up operations and environmental good operations energy sector. practices in KEK. A land reclamation target of an additional 127 ha of overburden areas was entered to reflect that KEK would do this work fully with their own resources and staff. Increase capacities in MESP ESIA for KPP Added: March 28, 2013. for environmental good prepared and Iindicator linked to Component F was added practices in the mining and disseminated in to reflect capacity building for environmental energy sector. line with Bank’s monitoring and management in MESP. This policies and good would be tracked by a) delivering an ESIA international for the new Kosovo Power Plant project, and practices. b) supervising the resettlement of Shala neighborhood in Hade village. Resettlement of Shala neighborhood of Hade village completed in line with approved 37 PDO Level Indicators Comments Original (PAD) Revised Indicator Target* Indicator Target RAP. All found priority hazardous 21,783 tons Added: March 28, 2013. substances from the A PDO indicator linked to Component E and gasification sire safely measured in tonnage was introduced to removed and treated/disposed reflect the enhanced development impact as (tars, benzene, phenols, the activities were scaled-up to remove all methanol, oily compounds). priority – rather than the highest priority – hazardous substances. Project beneficiaries. 21,500 Added: March 28, 2013. of which female 10,600 (beneficiaries). Intermediate Level Original (PAD) Revised Indicator Target* Indicator Target Prepare Mirash mine for 100% Mirash mine prepared for Mirash mine Revised: March 28, 2013. sanitary disposal of Kosovo A sanitary disposal of Kosovo A prepared for Target revised from percentage to text, ashes. ash. sanitary disposal however, there is no difference in the output of Kosovo A ash. or outcome. Transfer of ash stream from 0% Dropped to remove duplication with PDO Kosovo A to the dump site will level indicator. be stopped and redirected to the Mirash mine. Initiate the removal of Kosovo West tip removed Dropped. Component restructured from A ash dump and final disposal for 100% removal to in-situ remediation of ash dump. in the Mirash mine, eliminating East tip removed for dust problems and pollution 20% infiltration from the ashes into (of 25 million m3) the groundwater. Enable reduction of loss of 0 houses at risk Reduction of houses at risk 0 houses at risk Revised: March 28, 2013. property in the areas by from geotechnical instabilities Slight modification of language. eliminating the geotechnical of Kosovo A ash dump. instabilities from the Kosovo ash dump. Baseline: 10 houses 38 PDO Level Indicators Comments Original (PAD) Revised Indicator Target* Indicator Target at risk. Initiate reclamation of 6.5 km2 4.5 km2 Dropped to remove duplication with PDO of land available (650 hectares) level indicator. for community development including agriculture, resettlement purposes and/or natural habitats. Increase in capacity in KEK staff fully Dropped to remove duplication with PDO institutions and KEK for good responsible for level indicator. practices for lignite mining clean-up and land operations. reclamation operations New (1st Restructuring) Revised (2nd Restructuring) Removal of highest priority Removal of 4,300 Tons of found tar sludge, 4,780 tons Added: hazardous substances from tons benzene, methanol and oily Revised: March 28, 2013. storage tanks at the gasification compounds from the Revised to clarify in more detail the precise site (tars, benzene, phenols, gasification site safely substances to be removed, disposed, treated, methanol, oily compounds). removed and disposed. and exported. Targets were scaled-up as Tons of found tar deposits 2,232 tons additional financing was made available. from the gasification sire safely removed and disposed. Partial removal and Part with highest Tons of found phenol in water 14,771 tons containment of phenols in water concentration solutions from the gasification solutions. removed, remainder site safely removed and stored and treated. monitored in reliable tanks. Preparation of full site clean-up Preparation of full Preparation of full site clean- Site clean-up and Revised march 28, 2013. investment plan and adaptation site clean-up up investment plan and low-cost Slight modification of language. of health and safety regulations investment plan and adaptation of health and safety investment and and low-cost remediation adaptation of health regulations and low-cost remediation plan program. and safety remediation program. prepared, regulations and low- including health cost remediation and safety 39 PDO Level Indicators Comments Original (PAD) Revised Indicator Target* Indicator Target program. regulation. New (2nd Restructuring) Revised (3rd Restructuring) Environmental and social Environmental and baseline data available for ESIA social baseline data available for ESIA. Low carbon growth strategy Low carbon growth Low carbon growth strategy Low carbon Revised: March 28, 2013. prepared and disseminated. strategy prepared prepared. growth strategy Revised to not include dissemination of the and disseminated. prepared. study. * PDO-level targets are mirrored at the intermediate level in the original results framework and applied here to both levels. 40 Photos 192. The following before and after photos give an impression of project achievements. Figure 4: Wet ash silo during construction Figure 5: Wet ash disposal in depleted Mirash mine Figure 6: Storage tanks on gasification site Figure 7: Tar sludge on open areas Figure 8: Work in progress Figure 9: Hazardous waste packaged for export 41 Training Sessions 193. The following are the most important training activities provided under the CLRP: (i) On May 13-14, 2014 a Workshop on International Good Practices on Resettlement for 25 key staff from MESP, KEK, MED, Ministry of Finance and the Municipality of Obiliq/Obilic. During this Workshop, internationally recognized resettlement experts shared international good practices and provided recommendations to the GoK regarding institutional arrangements, need for medium and long-term resettlement planning, and enhancements to the RPF. (ii) Another, more comprehensive, three-day training workshop for 30 staff members from KEK and MESP was conducted in December 2014 by international experts and this included a study tour to resettlements related to lignite mining in Germany. That experience was scaled up by the Bank, in partnership with other stakeholders, into a two week-long international practical course on “Land Acquisition, Resettlement and Social Sustainability” in Groningen, The Netherlands (July 6-17, 2015). The course is delivered by internationally recognized experts, includes 30 experienced practitioners (including 5 from Kosovo) from over 10 countries and also has a study tour to the lignite mine in Germany. This course has been, and will continue to be, offered every six months. 194. In addition, there was a study tour to Poland to strengthen the capacity within the Ministry of Environment and Spatial Planning, the Kosovo Environmental Protection Agency and its inspectorates and the Ministry of Economic Development in the field of lignite-fired power plants, including open cast mining, in the following areas: (i) Environmental Impact Assessment for new power plants and how the review and quality control is organized; (ii) permitting tasks as they are defined in Integrated Pollution Prevention and Control legislation (IPPC) and key elements of IPPC permit including application and approval procedures ; (iii) frequency and type of inspections to monitor compliance with the permit conditions, (iv) emission registry including emission monitoring obligations for industries and submission requirements to authorities, (v) Best Available Techniques for lignite fired power plants; and (vi) site visit to 3 recently constructed or renovated lignite fired power plants to view their environmental compliance, emission monitoring regime and environmental investments. 42 Annex 3. Economic and Financial Analysis 1. The original PAD included an economic analysis based on the benefits of elimination of health hazards due to dust, elimination of dangers to property due to geotechnical instability, increased access to land due to reclamation. 2. Elimination of dust from dust handling and ash dumping. The largest contribution to health damage is caused by Particulate Matter. The dust monitoring executed as part of the Project demonstrated that the dust levels from the ash dump and ash handling are now negligible as they are below the detectable threshold of the monitoring equipment. Also the wet ash system eliminated any dust from the ash handling. This benefits the 21,500 people living in Obiliq municipality. The original estimates for the quantitative effect of air pollution on mortality, cases of chronic bronchitis etc. were updated on the basis of the well-known international studies examining the dose-response relationships between exposure to fine particles and health impacts. These dose-response functions present a change in the crude mortality rates and Disability Adjusted Life Years (DALYs) attributable to a change in 10 ug/m3 of annual mean concentrations of PM10. The estimated number of DALYs for Obiliq municipality caused by the ash dump and ash practices amount to 215 cases per year. This represents a benefit of US$1.9 million per year. 3. The Kosovo A ash dump presented a hazard due to the geotechnical instabilities and its pressure on the land and endangered nearby settlements in the past. The benefits of prevention of loss of properties have been estimated at US$350,000. 4. The reclamation of the overburden dumps made land available for community purposes. Total benefits of land which was unproductive before is estimated at US$4 5.5 million per year for the benefits of land reclaimed for future agriculture and US$2.3 million per year for the land reclaimed for future resettlement purposes. Land reclaimed for natural habitats have not been valued though represent a substantial benefit. 5. The results of the economic analysis show that the Economic Rate of Return (ERR) is 12 percent, as shown in the two tables below. 43 DALYs - URBAN AIR POLLUTION Key param eters Obiliq Year Population 21,500 Adult population >14 yrs 17,200 80% Children population <14 yrs 4,300 20% Crude death rate (per 1000) 10 Annual average PM10 (ug/m3) attributable to ash dump 65 Exposed total population 90% 19,350 Exposed adult population 15,480 Exposed children pop population 3,870 Annual average SO2 (ug/m3) attributable to pow er sector - Im pacts per Cases Obiliq DALYs per 10,000 DALYs Obiliq Health categories PM10 Units 1 ug/m 3 m unicipality cases m unicipality Premature mortality % change in crude mortality rate 0.084 11 100,000 106 Chronic bronchitis per 100 000 adults 3.06 31 12,037 37 Hospital admissions per 100 000 population 1.2 15 264 0 Emergency room visits per 100 000 population 23.54 296 3 0 Restricted activity days per 100 000 adults 5750 57,857 3 17 Low er respiratory illness in children per 100 000 children 169 425 3 0 Respiratory symptoms per 100 000 adults 18300 184,135 3 55 Health categories SO2 Units Cough days per 100,000 children 1.81 - 3 0 Chest discomfort days per 100,000 adults 1,000 - 3 0 TOTAL DALYS LOST PER YR 216 44 All costs in USD Years 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Costs Overal disbursements per year WB financing (1,470,000) (1,770,000) (1,730,000) (5,150,000) (400,000) (1,550,000) (1,400,000) (930,000) Operational costs KEK: Additional contribution KEK wet ash (3,000,000) (6,000,000) Maintenance and operating costs (200,000) (400,000) (400,000) (400,000) (400,000) (400,000) (400,000) (400,000) Staff costs (200,000) (400,000) (400,000) (400,000) (400,000) (400,000) (400,000) (400,000) Total costs (1,870,000) (2,570,000) (2,530,000) (8,950,000) (7,200,000) (2,350,000) (2,200,000) (1,730,000) - - - - - - - Benefits Removal of ash dumps DALYs prevented from air pollution 1,943,323 1,943,323 1,943,323 1,943,323 1,943,323 1,943,323 1,943,323 1,943,323 1,943,323 1,943,323 1,943,323 1,943,323 1,943,323 1,943,323 1,943,323 1,943,323 1,943,323 Reshaping and recultivation of land of overburden dumps Available land for natural habitats Available land for resettlement (Bardh field) 2,300,000 2,300,000 2,300,000 2,300,000 2,300,000 2,300,000 2,300,000 2,300,000 2,300,000 2,300,000 Available land for agriculture (Bardh field) 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 Available land for agriculture other 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000 Relocation of ASF into Mirash OPM Prevention of further damage remaining houses 350,000 Total benefits - - 350,000 - 1,943,323 1,943,323 1,943,323 1,943,323 1,943,323 1,943,323 1,943,323 9,743,323 9,743,323 9,743,323 9,743,323 9,743,323 4,243,323 4,243,323 4,243,323 4,243,323 4,243,323 CASH FLOW (1,870,000) (2,570,000) (2,180,000) (8,950,000) (5,256,677) (406,677) (256,677) 213,323 1,943,323 1,943,323 1,943,323 9,743,323 9,743,323 9,743,323 9,743,323 9,743,323 4,243,323 4,243,323 4,243,323 4,243,323 4,243,323 IRR 12% 45 6. The project design also was based on a very cost effective approach (least cost), where the international funds from the IDA grants and credit were used to develop the international design and purchase equipment and training for the ash dump remediation and reclamation of overburden dumps, but the works itself were executed and financed by the mining and energy company KEK based on existing staff and with their own funds. For the Ash dump remediation, approximately US$5.5 million was spend from IDA resources and US$1.5 million from KEK’s contribution for reshaping and covering of the Ash dump totaling US$7.0 million for 243 hectares. In comparison, the Gradac waste dump remediation in the Montenegro Industrial Waste Management and Clean-up Project (P122139) - which is also based on simple works such as reshaping, stabilization and covering is estimated at US$6.35 million for 12.5 hectares on the basis of contractors executing the works. 7. A number of other key benefits are also a result of the project, but are difficult to quantify:  Reduced health and environmental risks due to the treatment and removal of hazardous chemicals, which were stored at the gasification site in corroding tanks; The gasification site clean-up also presents a cost effective approach since the clean-up costs of major chemical spill in the Sitnica river would be a multitude of the costs spend on local treatment and export and destruction of chemicals abroad 11. These observed and potential risks were: (i) toxic emissions into the atmosphere (evaporation of volatile chemicals); (ii) toxic emissions into the groundwater (seepage through soil); (iii) contamination of surface water runoff by toxic substances; (iv) threat to health and safety by accidental skin contact, inhalation, digestion; (v) risk of large scale spills due to technical deficiencies of storage facilities, with strong risk of contamination of the Sitnica river; (vi) risk of fire and explosions.  Regular air quality monitoring in the municipality close to the power plants and the mines and public disclosure of the data.  The structural operations of the project in the electricity company KEK for clean- up and sustainable mining operations and the capacity building of environmental officials in central (particularly MESP) and the local government will contribute to a better approach to deal with environmental legacy issues from lignite mining and power generation and improve monitoring and environmental performance of current mining and electricity production operations as the institutions were exposed to best practices in terms of mining rehabilitation and energy production. This is particularly evidenced by the full-time mining reclamation department which was established in KEK with more than 50 staff and now with many years of experience in mining and land reclamation works, and extensive training. 11 In case of a spill of the materials that used to be stored in the corroding tanks, the amount of contaminated materials that would require treatment would a multitude of the relatively small amount of 22,000 tons of chemicals that were now treated and destructed. 46  Capacity of environmental officials in central (particularly MESP) and the local government though extensive training in what constitutes Best Available Techniques and International Standards for mining and electricity production.  Environmental baseline information that became available for impact assessment.  The remediation of the ash dump and halting of the air pollution was a key factor in the current observed revitalization of the villages closest to the ash dump. 47 Annex 4. Bank Lending and Implementation Support/Supervision Processes (a) Task Team members Responsibility/ Names Title Unit Specialty Lending Pramod Agrawal Consultant SASDA George Anjaparidze Junior Professional Associate ECSSD Elmas Arisoy Practice Manager GGO08 Bernard Baratz Consultant GEEDR Irene Bomani Operations Analyst GFA07 Olav Rex Christensen Senior Public Finance Specialist GEDDR Drite Dade Sr Natural Resources Mgmt. Spe GEN03 Daniel P. Gerber Sr Agricultural Specialist GFA03 Ronald N. Hoffer Consultant GENDR Paula F. Lytle Senior Social Development Spec GSU07 Norval Stanley Peabody Consultant GEEDR Frank Van Woerden Lead Environmental Engineer GEN2A Ardian Ymeri Temporary ECSHD Supervision/ICR Baraku, Trandelina ECSEN Imeri, Bekim ECSSD Berroa, Diomedes Lead Specialist OPSPF Bomani, Irene Operations Analyst GFA07 Bujupi, Krenar E T Consultant ECSEG Floroiu, Ruxandra Maria Lead Environmental Specialist GEN03 Elona Gjika Financial Management Specialist ECADE Gjika, Elona ECSSD Imeri, Bekim Senior Social Development Spec GSU03 Kirov, Plamen Stoyanov Senior Procurement Specialist GGO06 Maho, Arben Procurement Specialist GGO03 Mitchell, Andrew Michael ECSSD Moises Matsinhe, Luisa Senior Executive Assistant AFCS2 Muhoho, Ida N. Consultant GGODR Noel, Maria Lourdes Senior Program Assistant GEN2B Ru, Jiang ICR Team Leader GEN03 Shayne, Adam Chief Counsel LEGAM Smajic, Ifeta GSU03 Tikjoeb, Sanne Agnete ICR Lead Author GEN03 Van den Berg, Katelijn Senior Environmental Specialist GEN05 Van Woerden, Frank ECSSD Vrenezi, Edon Senior Operations Officer LCROS Villegas, Jorge E. GSU03 48 (b) Staff Time and Cost Staff Time and Cost (Bank Budget Only) Stage of Project Cycle USD Thousands (including No. of staff weeks travel and consultant costs) Lending FY06 36 206,000 FY07 FY08 Total: 36 206,000 Supervision/ICR FY06 FY07 14 78,000 FY08 11 65,000 FY09 13 73,000 FY10 13 72,000 FY11 16 92,000 FY12 15 87,000 FY13 13 77,000 FY14 27 154,000 FY15 23 130,000 FY16 14 80,000 Total: 195 1,114,000 49 Annex 5. Beneficiary Survey Results (if any) Not applicable. 50 Annex 6. Stakeholder Workshop Report and Results (if any) Not applicable. 51 Annex 7. Summary of Borrower's ICR and/or Comments on Draft ICR 52 53 Projekti për Pastrimin dhe Rikultivimin e Tokës / Clean Up and Land Reclamation Project (CLRP) IMPLEMENTATION COMPLETION REPORT “CLEAN UP AND LAND RECLAMATION PROJECT“ Funding provided by the Government of the Netherlands and by the World Bank Prepared by: Project Management Units, KEK and Ministry of Environment and Spatial Planning  Table of content 1. PROJECT DESCRIPTION 1.1 Background……………………………………………………………………………. 1.1.1 TPPA Ash Dump and South Dump area………………………………… 1.1.2 Ash Disposal from TPPA……………………………………………………… 1.1.3 KEKs Gasification Plant site Obiliq…………………………………………… 1.2 Project Financial Background…………………………………………………………. 1.3 Projects main objective……………………………………………………………….. 2. PROJECT IMPLEMENTATION 2.1 Operation Arrangements………………………………………………………………. 2.2 Project Implementation 2.2.1 Part A - Preparation of the Mirash Open Pit Mine for Ash Management…… 2.2.2 Part B - Construction of Wet Ash Transport System………………………… 2.2.3 Part C - Reclamation of Kosovo A ash dump and overburden dumps………. 2.2.4 Part D - Project Implementation………………………………………………. 2.2.5 Part E - Hazardous Chemicals Clean-up at the Kosovo A Gasification Site….. 2.2.6 Part G - Repair of Trepca Stan Terg mine Slurry Pump……………………… 2.2.7 Part H – MESP Environmental Monitoring and Management………………. 3. PROGRAM SUSTAINABILITY…………………………………………………………. 4. INSTITUTIONAL ARRANGEMENT AND STAKEHOLDERS FOR PROGRAM 5. IMPLEMENTATIONS ISSUES ENCOUNTERED……………………………………… Annex: Pictures of Works  List of abbreviations TPP Thermal Power Plant KEK Korporata Energjetike e Kosoves (Kosovo Energy Corporation) IDA International Development Organization MESP Ministry of Environment and Spatial Planning MEM Ministry of Energy and Mines UNMIK United Nations Mission in Kosovo PMU Project Management Unit PIU Project Implementation Unit KPC Kosovo Protection Corps CLRP Cleaning and Land Reclamation Project MW Mega Watt Btu British thermal unit LLOC Liquids with Low Organic Content LHOC Liquids with High Organic Content PAH Polyaromatic hidrocarbons TOC Total Organic Carbon KTA Kosovo Trust Agency ICMM Independent Commission of Mines and Minerals mlcm Million cubic meters ha Hectares m Meters  1. P PROJECT D ION DESCRIPTI und 1.1 Backgrou h rich and Kosovo has d high qualit ty lignite reserves. The mines supp ply two therm mal power p plants (TPP A and TPP B) ), constructeed between 1964 and 1 1985 in the direct vicin mines. nity of the m Power pl lants are commplex system ms converting natural s sources to thhermal and electrical en nergy. Power Plant Kosova a A has five u e operating units : A1, A2, A called: A3, A4 and A5, located d near Obiliq Ci om Prishtina ity, 8 km fro a. A1 unit staarted its operration on 1962, A2 on 1965, A3 on 1970, A4 on 19971 and A5 on 1975. To ogether Koso ovo A units have the cap pacity to prooduce 800 (MMW). Currently A and A5 are function y only A3, A4, ning. Power plant Kosov va B has two o operating units: B1 that started operaating on 1983 3 and B2 on 1984. Toget ther they prooduce 678 (M MW). a a main fu Lignite as uel of Powe er plants wa as initially taaken from s surface mine es in Mirashh and T Bardhi. These m two mines were explored till l the year 2 2012. Curren nite is taken from ntly the lign s Sibovci southwest m and Sitn mine nica surface mine. m On surfacce mining, th s that cove he layer of soil ers lignite, in n depth fromm 5 – 100 m, is excavated d and d usually dump m near mines, in ordder to use it on o later activ clamation of vities for rec mines. f explored m This mat terial is callled overbur rden. The biggest b dummp directly b borders Mir rash south mmine. Addition d nal outside dumps ocated in the are lo e hills west o of the Bardh hi mine, in t ast of the plains ea the Mirassh mine and d north of both of the min nes. The out tside dumps are complet tely in owneership of the miining compa any KEK and have not been b reclaim med before. A shaping of the surface e was implemen nted in somme cases only y as the site investigatio ons and desi ign study innvestigated wwhich measures s were requ uired in orde er to be able to make the land av vailable for future use. . The locations s of the Bar M rdhi and Mirash miness, the Therm mal Power P Plant (TPP) ) Kosovo A A, the Kosovo A Ash Dump p and the ouutside overbuurden dumps s are shown i wing map. in the follow  out with main features, General Mine Lay-o f burden dumps a overb ps and Ash dump s component ar Projects reas p In some parts o of the outside dum mps, slope mo ovement was erved and concluded that s being obse t they t safe for the were not here were also substanti e public. Th ial issues wi anagement a ith water ma at the tes. The Clea dump sit L aning and Land mation Projec Reclam reclamation of Kosova A ash ct includes r dump, South overbu urden Dump nd Kuzmin overburden dump, Vasileva and K p, Lismir an Kalaja den dump. overburd 1.1.1 Origin O h and history of th he TPP A As nd South Du sh Dump an ump Area As a pr roduct created by com mbustion of the lignite during the e energy prroduction, iss ash productioon. Besides the overbur h of both of rden, the ash was also du f the TPP’s w umped on ou utside dumps fo or a long timme. Whereas s, the ash du umping of TP PP B was ch nside dumpi hanged to in ing in the residu e former Mirash - East mine, ual pit of the m from 2 h of TPP A was still dum 2006, the ash mped on an out l tside dump located he D-Field in on th nity of TPP A n direct vicin A. 5 Kosovo A Ash dump in 2010 Spread der dumping as vo A Ash Dum sh on the Kosov mp lace, ash and In this pl d overburden n was dumped. The over mping was o rburden dum originally plaanned for coverring the ash with soil forr reclamatioon purposes. This overbu urden was du umped when n one of the old M dest mine - Mirashi mine, was opene ed, in the 19 960’s. But th uld not be pu his idea cou ut into practice, so the over rburden was w s dumped west and souuth of the allready partlyy existing ssouth- western wing w of the ash dump in two slice es, up to thee middle of the 90’s. Later, parts o of the overburdden dump we ere covered with ash com ming from T TPP Kosova a A, merging g with the ov verall ash dump p, which bec came part of ated by Recl f the area trea oject. lamation Pro The totall dump consisting of the e ash and acc companying g overburdenn dump cove of 243 ers an area o ha. The total volum me dumped in i this area comes to m more than 444 ml cm. T The dry ash h was dumped by b two sprea aders and pu umped via op pened pipes. The Kos sovo A Ash h dumps also o covers a former und derground mmining area. Parts of the old undergro ound mining galleries ex xtend under the ash dum mp area and d could be oobserved eas st and t ash dump west of the u p. Here the underground d galleries caaused crackss on the surf ctures face (see pic T former shaft of the below). The e so called Krusevci K undderground mmine was located in the e area north-we h dump. The shaft has be est of the ash een filled and fter closure o d covered af of mine by KKEK. 59 cks on the surfa Crac o ash dump ace of surface of used by underg Cau es ground gallerie The southern section d n of the ash dump was th n for ash dum he area still in operation mping at the e start of the Project. The dump was div outh-eastern vided into 2 parts, the so uth-western w n and the sou wing. h The ash head b belt conveyor ran between both h wings. Bo oth dumps co ould be oper ndent rated indepen with a separate bench yor and spre h belt convey eader. ump south-easte Ash du uth-western wi ern and the sou ing 60 Stability problems fr d rom the ash dump occurrred, which le ead to ash an den displacem nd overburd ments and crack h body. Priva ks in the ash ate houses at a the Wester rn Boundary ovo A Ash d y of the Koso dump were end dangered, ca aused by the overburde en material moving tow wards the hoouses whichh was b the movin pushed by ( ng ash body (See s below). pictures mp near private properties Ash dum ump near priva Ash du ate properties Slope movement of the ash dump and ng of private pr a endangerin he pushed overb roperties by th al. burden materia Whereas the dumped n material was d overburden w more or ally re-green r less natura re ash ning, the pur body rem out any vege mained witho etation for many m decade sed a lot of p es. This caus problems with air n coming fro pollution om both the dumping of f ash and al so from the uncovered dump itself f, (see b pictures below). tion from ash dump Air pollut d llution from as Air pol sh dump 61 Another environmen w the found ntal aspect was d contaminat ash and the u tion of the a underground d with phenol annd other by- g -products of the former gasification plant. This wwas done onn the period wwhen ion plant sta gasificati n the years 1 arted operating, between 1970 – 1980 0. These cheemicals had been discharge h dump and the ed in the ash t old underground min ning galleries lying beloww the dump. . cts of the form By-produc n plant at the ash mer gasification und mining gal a dump and old undergrou he ash lleries below th dump. In 2008, at the west d tern border of the ash dump he corner be (in th etween the aash dump an nd its accompa anying overbburden dump v p) near the village of D Dardhishte an n old ventila of the ation shaft o undergro ound mining collapsed annd created a crater with diameter of f more than 8 m and dep pth of el app. 15 m depth. Sign at least 36.5 m, with a water leve rs of strong s nificant layer smelling tar were observed d. Summariizing, the maain observedd and potentiial environmmental probleems and haza ed at ards identifie Kosovo A Ash Dump p were: 1 V Very strong dust generat tion 2 H Hazards due e geotechnic e to extensive ies cal instabiliti 3 S Seepage p n water throu of precipitation ugh ash into groundwater r 4 S and surf Soil ontamination face water co n by dust annd washout oof fines 5 P Potential oundwater co gro ontamination ns by buried e deposits un d toxic waste nder the dummp ( (phenols, rs from form tar mer gasification plant) 6 D Dump repressents highly degraded la and unfit for any agricult dential purpo tural or resid oses igin and his 1.1.2 Ori al from Pow story of the ash disposa Kosovo A (T wer Station K TPP A) own coal po In the bro ower station Kosovo A (TPP A), con Blocks 3-5 w nsisting of B output with a total o M energy has of 400 MW, h been pro 6 years Bloc oduced for 46 ck 1 and Bloock 2 are not in use anymmore. The trans t silos by open convey sport of the dry ash was done from the yor systems to the Koso ovo A ash dump h dumpsite th p. At the ash he bottom assh was distri ibuted eastboound and weest bound via a two spreaderss. 62 on system-con Old ash transportatio nveyer belts ation system- sp Old ash transporta preader Con nveyer belt tran up to the dump nsporting ash u While op perating the dump (drain nage and tran e ash), a larg nsport of the ge environm mental impac ct was p caused by air pollution and the pollution of ground wate er. The stabi dump couldn ility of the d n’t be guarantee he dump wou ed in case th uld be extennded and the e closeness oof the village e Dardhishtaa also i made it impossible o extend the to e dump due to t environm mental and teechnical aspe ects. The exi isting machiner ry of the ash ystem includ h transport sy ding the silos s, was also in n a bad techn ion. nical conditi Conventi ional operati ntire ash tran ion of the en nsport machi inery was thu us hardly po ossible, safe work from the standpoint of o industriall safety was not given, a and further ooperating of f the ash trannsport u system under presennt conditionss after consiidering aspec cts of enviroonmental pr rotection wa as not le. For these justifiabl e reasons, a decision wa as made dur ring the imp plementation n of the CLR RP to fully repllace the dry ash transporrt and dumpi wet-ash handi ing with a w ing system. 1.1.3 Hi b istory and background d of the KEK K’s Gasifica ation Plant S ic (Kastriot Site at Obili ti). The Gasi ification Sitee is an indusstrial park next n to the KKosovo A Th hermal Power Plant (TP PP A) that cove ers an estima ated area of roughly 40 ha. The Gas lant Site is lo sification Pl ocated withiin the municipa ality of Ob bilic, approx ximately 10 0 km eastw wards from the city of Prishtina. The productio on/conversio f the gasifica on unities of ation plant wwere out of ooperation mo ecade ore than a de ago. The ey consisted d of the mai in gasificatiion plant, a steam and power gen neration plannt, an ammonia a separatio a plant, an air on plant and d a large sto y infrastruct orage facility ture. The vaarious units are connected by b a number of aerial and d buried pipeelines. At its we estern side, the Gasifica ation Plant is geograph hically constrrained by a railroad an nd the p thermal power plant A (TPP A). North-east a highway is s running froom Obilic alo ong the induustrial area. The e south boun ndary is defined by conv transfer the b veyors that tr brown coal f from the opeen pit mine to the preparat tion plant. In t n addition there is a ro oad to the hi igh way. Th he closest hu uman settlemen nts are locat ance of ca. 500 ted at a dista 5 m north h to the induustrial area. At the southh, the first settlements are also a at a dist 5 m from the gasificat tance of ca. 500 rea. In additi tion plant ar ion to 63 the Sitnica River the ecosystem s m includes some se areas are mostly use green areas. Thes ed for ural purposes agricultu s. tion plant locat Gasificat tion tion plant aeria Gasificat al view The plannt consumed dried brown ite) and prod n coal (ligni duced two p primary prod dium- ducts: a med h Btu fuel gas and hydrogen for use in am mmonia syn nthesis. Varrious by-pro oducts were also producedd: tar, medium oil, naphttha and crudee oil. The main e clean-up pr n goal of the o remove the roject was to e hazardous compounds in order to bring nt benefits in significan e i terms of eliminating the t risks and for negative effects on p d concern fo public nd for potentially environ health an nmental imppacts arising from the act n. tual situation Summari izing, the ma ain observed d and potenti ial environmmental probleems and haza ed at ards identifie tion site, wer Gasificat re: 1 P Persistent dour of phen od nols and poly yaromatic hy ydrocarbons (PAHs) on t the whole arrea a at the op and pen tar depos opylether wa sit. Diisopro as percepted in close disttances to thee c correspondin ng tanks. 2 D to their nature (haza Due ardous waste es) and theirr amount (ca. 20’000 t), tthe chemical l r residues resented a po repr otential risk of environmmental polluttion and hum man health. 3 H Hydro geoloogical site in nvestigations s showed run taminated su n-off of cont urface water and c contaminatio on of the surrrounding so oil and groun ndwater. 3 P Physical connditions of th he storage innfrastructure were subjec process of ct to a rapid p d deterioration n. 4 If chemicals s were accide entally relea ased (e.g. lea er levels of s akage), highe safety protecction m measures woould be need ded. Uncontr rolled situati ions may leaad to environnmental pollu ution a the impl and lementation of remedial actions. 64 1.2 Project Financial Background The International Development Organisation (IDA) made available USD 10.5 million and the Government of the Netherlands made available Euro 3.85 million for the above mentioned project components while KEK as an implementing agency has supporting the project with some 3.5 million Euros in terms of operation costs and also has invested more than Euro 8.5 million in the wet ash transport component. The government of the Netherlands made available additional Euro 229,000 for continuing works in the clean-up of stored waste from former gasification site. The Additional Financing IDA Credit and KEK as implementing agency was supported by Additional Financing for restructuring and further scale-up of the existing clean –up and land reclamation activities, particularly related to the full removal of hazardous chemicals on the gasification site. 1.3 Project main Objective The main objective of the Clean-up and Land Reclamation Project (CLRP) was the improvement of the environmental situation in the surroundings of the KEK mines and power generation capacities by a reduction of dust emissions from the existing TPP A ash dump. The concept of remediation of the ash dump and the reclamation of the overburden outside dumps enabled a fastest possible and sustainable improvement of the environmental situation. Kosovo B Ash dump was not part of the Project, as the geotechnical stability of the Kosovo B ash dump was better and the surface hard and cemented, causing lest dust and air pollution problems but therefore also more difficult to remove/reshape. The conversion from ash dry dumping, to wet ash removal, would lead to a reduction by around 80%, of the dust emissions caused by the ash dump. This corresponds to the portion, which is caused by transporting and dumping of dry ash. The remaining 20%, caused by the ash body itself are likewise reduced by a partial covering with overburden material which will green. The contaminants of by-products of the former gasification plant that remain in the ash dump had to be covered and compacted by cohesive material in order to avoid washing out. The similar actions were necessary to re-establish the public safety also in zones with high water saturation in the dumped overburden. Therefore the Project also aimed to initiate the reclamation of 6.5 km2 of the area covered by overburden dumps for community development purposes, such as agriculture, resettlement purposes and/or natural habitats. In order to bring significant benefits in terms of eliminating the risks and concerns for negative effects on public health and for potentially environmental impacts raised another goal of clean- up project: to remove the hazardous compounds from Gasification site The Overall CLR Project consisted of the following components: Component A - Preparation of the Mirash Open Pit Mine for Ash Management (i) Geotechnical, environmental and hydro-geological investigations, analyses, an environmental assessment and environmental management plans, and detailed design for all project components, including Components B and C; 65 (ii) Reshaping of a dedicated part of the Mirash mine and installation of a simple base liner (overburden clay lash mix), including affiliated preparatory works for the reception of ashes and overburden materials; (iii) Inclusion of a drainage and mine water management system, and (iv) Adaptation of Kosovo A Thermal Power Plant direct ash disposal system to stop open ash dumping and redirect ash disposal to the prepared compartment of the Mirash mine. Construction of Wet Ash Transport system Component B –Remediation of Kosovo A Ash Dump Initiate and enable KEK to perform environmental remediation of the Kosovo A Ash Dump in- situ with containment measures and reallocation of those parts of the dump that have stability risks in order to eliminate dust problems and pollution infiltration from the ashes into the groundwater. Component C - Reclamation of overburden dump areas Initiate and enable KEK to reclaim the overburden dump areas (Southern, Lugu i thelle & Kalaja and Vasileva overburden dumps). This component focuses on reclamation of about the land through investigation, reshaping and re-cultivating the overburden dumps in the South Field and locations west of the Bardhi mine in order to free land for community purposes. Component D - Project management Provision of technical assistance to KEK and MESP for the purposes of Project implementation, including the financing of trainings and Incremental Operating Costs such as: Project Management, short term experts, office equipment for MESP and audits. Component E - Hazardous Chemicals Clean-up at the Kosovo A Gasification Site (i) Removal and disposal of tar deposits and tar sludge from the Kosovo A gasification site. (ii) Monitoring the implementation of tar deposits and tar sludge removal and disposal from the Kosovo A gasification site. In particular, the clean-up project aimed to dispose of ca. 20’000 t of hazardous wastes from the following storage facilities: 12 vertical and 16 horizontal tanks, 156 barrels, 2 open basins, 1 open tar deposit, Component F – MESP Environmental Monitoring and Management Improving the review and monitoring function of MESP in relation to the environmental and social implications of large power plant projects, through the provision of consultancy services and technical assistance in the following areas: (i) review of environmental impact assessments; (ii) permitting tasks; and (iii) inspections to monitor compliance with permit conditions. 66 2 OJECT IMP PRO TATION PLEMENT 2.1 peration arrangements Op The Gran aged by two nt was mana MESP and K o PMU’s (M ties were sp KEK). The responsibilit plit as follows: KEK P Part A - Preparation sh Open Pit Mine of the Miras M for Ash uction of We h Management. Constru et Ash Tran m nsport System Part B –RRemediationn of Kosovo A Ash Dum mp R Part C - Reclamation den dump ar n of overburd reas P Part D: Project Management H Part E: Hazardous Ch ean-up at the hemicals Cle n Site e Kosovo A Gasification MESP M Part F: MESP M Environmental Monitoring nd Managem an ment P Part D: Project Management ect Impleme 2.2 Proje entation P 2.2.1 Part paration of the depleted Mirash O A - Prep for Ash Ma Open Mine f anagement A techni o the wet disposal con ical study on ncept in thee depleted M Mirash Ope en Mine Pit t was completeed by INKO e that provid OS (Institute des professi onal consulltant servicees on energyy and mines), in September 2007. From m an environ nmental poin the wet disp nt of view, t posal conceppt had consideraable advanta ally in compa ages, especia the previous arison with t mp. s situation at the ash dum The totall disposal arrea was connfined within n the depletted mine pit t boundariess. The geoloogical ations confirm investiga c forming med green clay g the bottom of the dispo enting osal facility thus represe w low perm a thick natural seal with T material that was pla meability. The anned for pe ermanent dissposal a waste water was ash and w pumped rom Kosovo A power Plant. d as slurry fr eparation of M Works on pre Mirash pit From the e environme o view, the environmen ental point of zed and risk ntal impacts are minimiz ks are ch reduced for very muc fo the ash di easons prese isposal for re ented below: 67  N additional No l land is useed, no additioonal soil is i impacted by y using explooited mine v voids. D Disposal ility is confi faci ined at botto om of the m mine, minimi izing impactt of any spil llage, lope failure or sl o dam breac ch.  D Disposal facil lity is isolate ed from the surface wate adjacent area er runoff at a on, in as. In additio he bottom of th f the pit mine the layers of gravel an nd clay were compressed der to d well, in ord revent the su pr urface water r to flow undderground.  Natural thick k clay layer. The Mirash h pit is also in lower alt Sitnica Rive titude than S er and ue to ash: water ratio the du dens out quic e slurry hard ckly.  N dust deve No elopment due e to wet dispposal conceppt, sprinklingg system proovided as coounter m measure ase ash surfa in ca ace dries out.  N noise dur No ring regular operations. Noise by v vehicle access confined in open pit t, and here is no ex th xposed sourc ce for noise.  D Disposal facility supports g of mine an s backfilling nd integrates well into mmine closure plan. N risks for long term ero No posal facility osion of disp y. es from Kosovo Wet ash transportation pipe o A to Mirash pit mine e was fully prepared The mine p d started to re and ash on Novem eceive wet a mber, 2013. nstruction of 2.2.2 Con S o Wet Ash Transport System A group of internatio h onal experts has been hired pare the Term to prep ms of Refere et ash ence for We transport construction n. A bid for d constructio r design and on of wet ash transportt for Power Plant Kosovo A has been advertised on o 2009. On n 2010, a CContract was er KEK Boa s signed afte ard of 68 Directors s gave appr roval on ad dditional fin nance and c contract neggotiations wwith the awa arded company y. By the fiirst half of the year 2013, the Co ontractor haas finished wwith the Syystem tion works. The construct T system was tested for f transport h to Mirash Mine, on m tation of ash manual mode. On ugust, 2013 the n 23rd of Au t System st tarted to wor rk by transpo h from Koso orting the ash ovo A rash Mine. The blocks 3 and 5 to Mir T contracto EK employee or trained KE es appointed th this d to work wit system fo or 3 months. ures from the The pictu on process ar e constructio re showed b elow. uction of wet ash Constru a system truction of wet Const t ash system or wet ash transportation Pipes fo ash system buil Wet a lding Technicaal descriptionn of the main n components of the ash h transportatiion system w ash bunk Wet ash silo: In the wet m ashes are co ker fire room ollected and accumulated ng d, the resultin Amount is 15 t/h. The T size of wet ash silo amounts to f the steel-w o 1000m³;fo or the contin nuous discharge uitable comp e of ashes, su ponents (vibr ration ground ed. d) are installe Haulage system: UnderU the siilos suitable e haulage sy ystem/conve eyors are at ttached. The e ash transport from the sillos to the folllowing consstruction unitt occurs as d d environmen dust free and ntally friendly as a is possibl le in closed housing. A certain adju usted volume e of drying aashes (150 t t/h) is continuouusly supplyinng to the pree-mixing unit ditioner (mixi t of the cond ing tank). 69 h Silo Wet Ash t Ash Silo durin Wet ction ng the construc r Grinder: The firm, rough o the fire ro parts of oom ash are carefully br roken in twoo parallel insttalled d grinders. Here two double-roller a used. Th r crushers are he dimensio oning and co onstruction o occur according n size (grit si g to the grain e ize) and the extraction om 15t/h. fro Ejector: Ejectors are e used for the e hydraulic trransport of thhe ash-water n from the we r suspension et ash e pre-mixing silo to the m g unit of the mixing tank. These eject tors are veryy simply deveeloped and ddo not have any mobile com mponents, and d are therefor dy and low-m re very sturd maintenance. . Dry ash silo: The dry y ash bunker f two steel sil r consists of los, each meeasuring 10000m³. The am mount of accum a is 150t/h mulating dry ash xhaust is inst h. e central ex dry ash bunk talled in the d ker. Purifier with stirrin ng device (m mixing tank) ): In the mixxing tank, the nd the wet as e dry ash an sh are readied innto a transpoortable thick mud. The mixm ratio of th he two ash tyypes (dry-weet ash) amou unts to 10:1.The mix ratio ash-water can c amount from 1:1 to o 4:1. The pre-mixing unit receive es an industriall water supp ply. Using su uitable pump ps this sludg ge is transpo waste dump by a orted to the w pipe systeem. S Slurry pump and f the system d other parts of Slurry pumps: p The selection of f the pumps is effected f first of all, b by the mediu um which is to be carried, sludge, s whichh is a mixtur re of fluid an nd solid commponents. Ind eign material dividual fore l with t conveyin a size of 60-80% of the ng cylinder canc be transp ported witho out any difficculty. The pumps lled in a row are instal w. The arrang gement of the e pumps occ curs in pump p stations. Thhere all nece essary armatures to the ope eration, meas suring and regulation m mechanisms a and lifts for maintenance e and repair wo lled. In the pumping ork are instal p stati ion the necesssary connec es for the fun ction supplie nction of the pumps p so assemble is als ed, such as industrial w water, rinse water, elec ctricity, hydr raulic aggregatees. 70 Pipe work system: For the hyd draulic transsport of the ash water s suspension a completely y new piping sy ystem is deve eloped. Withh the selectioon of suitablee piping nummerous factor dered, rs are consid g the operati including ing paramet ters, the kind of deman nds, fittings, subsequent treatments, with cceptance sp quality ac pecifications.. Particulars indicated ressult from thee compositioon of the med dium, the capaccity of the puumps, the rou ute guidance, and the resu g transfer, as well as asse ulting piping embly ns, resulting from it. The course of th condition pecified with he trace is sp h the operatorr according tto the ulations. The local regu e piping systtem consists of two para allel-running, redundant p pipes. The ppiping is accessi mes over the ible at all tim e entire courrse of the lin ne. At unattaainable line s ervice sections a se e way is established w with a widtth of 2.5 m.m The nece essary armat tures for saafe operationn, for changeov vers, for acti ivations and deactivation ns, maintenan nce work are e planned. AAt exposed p places emptying g and exhaus st options are e installed. The T emptying g procedures lled, implem s are control mented w in waste water basinss. The emptying basins ar re built with reinforced cconcrete. Raw wa ater (untreaated water) maintenanc ce, raw wa ater reservo oir: For the plant two w water ons with diffe circulatio ferent compreession phase es are develop ped. A cycle pressure is ne e with high p eeded w ashes from for the transport of wet o the purifier m the silo to r with the he rs and also fo elp of ejector or the injection into the mix he rinse wate xing unit. Th the slurry pip er lines for t ping are alsoo attached viia the high commpression pha ase. The other cycle supp plies with loow pressure t he ejector wit the top of th th the necessary d and wet ashes. Each y water to pre-mix the dry h cycle is red dundantly eq quipped withh two T operatin centrifugal pumps. The ng pressures are laid ou ut according g to the req quirements o of the aggregate am. The pum es downstrea mps are arrannged together nse water pu r with the rin ump (mixing g unit) in a pummping house. . Appropriatte lifts for maintenance m and repair mmeasures ar in the re installed i pumping house. The supply of the w e necessary water volumme for the con nstant supplyy of raw watter for the waterr pumps beco omes securedd by the wate er chamber. In the raw w water basin a pump pit is built, there a drainage-pum mp evacuate es the resul lting sand m mud. The r raw water b evated basin is ele implemen nted abovegrround in succh a way tha at by the geo odetic height t the supply pressure pum mp is developed. ng and pipe wor Water pumpin rk system Measure ement and control tec chnique: Lo ocal and cen ntral controll of ash han ndling systeem is t medium an adapted to nd low presssure water pu umps and theere shall be interlock devvices betweeen the L pumps. Level ator is consi indica idered for se ettling sump p. In the ash h handling c control roomm the operationn status (runnning or not running) of the pumps, acoustical in for failure an ndications fo nd the dications for settling sum level ind mp are arrang ged on the ccontrol pane el. The flow of low and d high w pressure water pumps d in the contr s is displayed rol room. Control room: For ash a handling plant one co ontrol room is provided. It is locatedd along side oof the Slurry puump room. It t includes thee control roo om itself and d electrical ro oom. It contrrols the ECOO, Air b heaters, bottom f ash from ESP, the con ash, fly nveying to sl lurry sump, t unloading sy the storage u ystem, 71 the water h r and slurry handling sysstem. A statuus signaling equipment i is provided f for each sequuence by comb bination of: on o off-chang ge, in coursse-fault, disc crepancy. Va alves involvved in the sy ystem operatingg sequence ar re incorporatte position eqquipment an nd shall be ac ctuated by acctuators. Operatin ng modes: -I In Automatic p c mode the plant is startted, operated d and control lled automatically in sequennces. All int terlocks and safeties are e operating. -In Manual mode opera ator can starrt and operate thhe plant by starting each h equipment t separately following th he process loogical seque ences. locks and saf All interl feties are opeerating. In Local mode equipment ca an be started locally for test or maintena ance purposes. Function nal systems: Four system ms are distingguished in th he ash handli ing system: - Bottom ash, ECO an nd air heaterr ash conveyi ing - Fly ash conveying p - Water pumping p - Slurry pumping. All systemms are interl locked all toggether to assume normal operation of f ash handlinng. All equippment is autommatically con ntrolled with h necessary interlocks. Emergency shutdown p push buttonns are a located along the coonveyors. An n automatic jam cleanin ng sequence is provided d for the cru usher. Running of all mot tors is autom matically co ontrolled wi ith automati ic change-ov ver for Stan nd-by machines w s. Level in water reservooir permits to t start pump ps or stop thhem for secu urity. Condittioner feeding iss made by va alves automa atically contrrolled. Level conditioner a ls in slurry c actuates autom matic water ma p ake up, and permit y pumps to start or stop slurry p the in secur pumps start in an rity. Slurry p automatic c sequence. Selection of ump is made by control r f a line of pu room before ations e start. Indica of density p and spee y, flow rate, pressure in pipe ed of first staage pump are e transmitted room. d in control r Speed off this first stage can be ad djusted from the control r room. Gland d seal pumps are automatically controlledd with autom matic change e-over. A pr ressure switc ch actuates a an alarm in control room m for water preessure. Level h l probes in header tank permit p to star rt to pumps or actuate an n alarm in coontrol room. Dr rain pumps area automatic cally controllled in local bby level prob be and a locaal panel. On the 12th on Nove ember, 2013 the Wet As sh Hydraulicc System waas handed ovver to KEK, fully nal. Wet ash area is estim operation 025 after wh mated to be filled by 20 be covered a hich it can b and re d for full reha vegetated abilitation. ipes dumping wet Pi ash pit mine w ash on Mira 72 P 2.2.3 Part lamation of B –Recl A Dump f Kosovo A Ash nvironmenta En al Measures Short-termm measures s are realized for the ex xisting dry ash handling g system too reduce the e dust emissions. Tar depo y at the foot of the activ osit: Directly ve western assh wing and in the Midd dle Western d dump sector tarr-like waste products of f the gasifica were deposit ation plant w ted in two f These flat basins. T chemicals have been discharged in the ash dump d and thee old underg ground minin ng galleries lying below th he dump. Th hese tar depoosits with a thickness of f approx. 0.2 to 0.7 m were covere ed by cohesive material. Th he covering layer with a thickness t of about 1 m is s compacted by layers. The com mponent of cl h leaning the hazardous waste w on Gas e, as part of sification site f the same pr roject on 2010) late started (o d er then Ash dump remeddiation. Undeer this compo onent, 800 t of waste fraaction w Low Or “Liquid with rganic Conteent, which wa as treated on n site throughh a chemical l-physical prrocess (oxidation by Fenton n’s reaction) was stored ata Kosovo A ash dump. This mass w was covered d with layers of ash and soil according too the environnmental acce eptable measures. Removal y disposed municipal waste l of illegally w on th he western edge of the e Kosovo A ash W dump: Waste was duumped along g the eastside e of the way between Da Fushe Kosov ardishte and F vo on o 400 m. In a length of n the norther rn part of the e way, the w waste consists pal waste dum s of municip mped there by the residents, whereas in n the southeern part main nly construc was dumped ction waste w d. The ntity was about 500 m³. These illega total quan al waste dep posits were re emoved befo hwork ore the earth measures roperly by means s started and deposited pr m t auxiliary eq of light quipment. Removal l of illegally c y disposed construction n waste on t the Kosovo A dump: A Along an unp paved ding to the Dragodan way lead D dummp, construc ction waste w ed. This was was deposite ste came fromm the lants of over former pl rburden dummping. It was on an area of s deposited o olume f less than 0.1 ha; the vo roximately ca was appr a. 400 m³. Thhese materiaals are remov ved before th he earthworkk measures st tarted osited properly. Owing to and depo e elements he o the size of the concrete eavy auxiliarry equipmen nt was used. Protectioon of dange erous area around a the collapsed c unnderground ds mine struuctures: The e area he Dardhisht east of th te village waas marked by y a high pot er. The danger was cause tential dange ed by underground hollows s from formmer mining activities as s well as coontaminationns, caused by the dumping of byproducts of the ol on plant. The ld gasificatio the danger, e e extent of t or the especially fo residents in the Dard e, was confir dishte village rmed by an occurrence in March 20 008, when aan old ventilatio apsed. The shaft on shaft colla s was 36 6.5 m deep; The Reclam mation Depar rtment also filled and reshaaped the colllapsed under rgrounds min ne structures res in Dardh s on 6 hectar hishte Village and construct nage and the road Dardhi ted the drain ishte – Fushe e Kosova 73 apsed undergro Colla ctures ound mine struc Un nderground min fter remediation ne structures af n N hte Near Dardhish Use of a water car: The accesses s of the truck nkled with w ks were sprin water perman der to nently, in ord he dust forma reduce th ation by the mobile equi applied to the accesses fo ipment. This especially a or the ash dump sons with low ps in the seas w rainfalls. prinkling with water during w Sp s working process Operatio w on at high wind velocit ties or extre eme dryness s: In ash op oving of ash peration remo h was ed in case of interrupte v f high wind velocities r reasons of d for on. dust formatio ning overbu Kosovo A Ash Dump and adjoin p urden dump A detaile ed design for ng, cleaning, reshaping a r investigatin and re-cultiv e dumps has been vating of the provided by consultin ng companie es, describingg as well the e necessary w works and eequipment ne eeded for condu a ucting such activities. By the ye ear 2009 plaanned machin nery and Hea avy Equipm ment has been n contracted. Staff selecteed by KEK hea adquarters haas been trainned to ensure e that all equuipment sha all be used properly and to its H fullest. Hydraulic cavator, five articulated dump exc d trucks ater tank trail s, tractor, wa urpose ler, multi-pu nd rear assem trailer, an mbly excavat tor for tractor r were contra ave been rec acted later ha ceived and teested. 74 o the workin Pictures of re presented below: ng process ar Heavy H tation vehicles transport king process Work orks on ash dum Wo mp s on covering the ash dump Works 75 The project concept coordinated with KEK and World Bank, after assessing different alternatives for the TPP A ash dump removal, contained the following technical measures: Conversion of present dry dumping of TPP A ash to wet ash disposal: Dust formation would considerably be reduced by stopping of the ash dumping operation of the two spreaders on the dump. Wet ash disposal in the residual pit of the former Mirash East open cast mine field avoids dislocation of source of emission at the same time. The installation of the plants of the wet ash disposal was partly financed by KEK and by the CLR budget. (See Component / Part A). Partial removal of ash and overburden from the instable areas of the ash dump: This refers especially to the parts where the high of the dump had a level up to 48 m. A lack of proper dumping technology caused these masses to be thrown in very high natural angles. In order to reach the stability, the geotechnical analyses suggested creation of stable slopes in proper angle and lowering the dump high. Therefore this mass needed to be removed to other safe areas of the ash dump via short transport distances. Use of mobile equipment for the earth-work measures: The dumped ash masses created natural forms, which when being under influence of climatic condition, become solidified. In order to create stabilized forms, the dump needs to be reshaped and reformed according to the geotechnical designs. It is necessary to use the mobile heavy equipment for breaking the rough slopes, moving masses and reshaping the area according to the geotechnical designs. Mass Removal Based on the results of the site investigations and the accomplished soil-mechanical evaluations there were prepared earthwork measures. Before conducting the shaping works, the illegal waste disposal on the south outside dump of and in the collapsed underground mines, were removed and the basins with the tar deposits were excavated. Removing of the south-western wing of the south ash dump: The south-west wing of the ash dump was embedded in an area dipping westward. This fact and the alternating deposition of ash dump and south overburden dump at the same time, led to a pressing out of the overburden masses by the load of the ash. This area was to be reshaped by removing the ash masses which were transported by trucks and distributed on an area specified ahead on a distance about 30 m, and reducing the high for approx. 10 m. The works were conducted during the rainy seasons. During the summer season the driveways and the working levels on the winning- as well as on the dumping side were sprinkled for reducing dust formation. Recovery of cohesive overburden material for the shaping of the overburden dump near the ash dump: In particular the western part of the dump, which was additionally loaded by the overlaying ash masses, tended to creeping slides and endangers residential houses west of the dump. Annually, the dump moved forward for about 1.5 m and especially in the rainy season. After reducing the load by the removing the ash, it was also be necessary to shape the overburden dump. The removed masses are used for covering parts of the ash dump in order to reduce both the infiltration of surface water into the ash dump on the one hand and the dust formation on the ash dump. The works were conducted during seasons with low precipitation. During the summer season the driveways leading across the ash was sprinkled for reducing dust formation. 76 Working process Levelingg: Apart from m the earthw work measur res describeed before, exxtensive gra ading works were o in the are carried out ea under rev view. Beforee leveling thhe water accu umulations i in the sinks were pumped and dischar rge, respectively. Furthe er leveling wworks were possible on nly when the dry dumping g of ash was finished. TheT special design d for assh dump sug ggested that the highest level on the duump should be 40 m, an nd general an ngle of slopee to be 11ᵒ. Considering at ash g the fact tha would be w 1 m of soil, the suggested high e covered with h and slopee angle was the solution n that tability with creates st i h requested insurance fac ctor. The nuumber of terr races variedd according tto the m slope of dump and mostly imitat f ted natural forms. In total there werre remediated 123 hectar res in Kosovo A ash depos sit, and 56 he he accompan ectares in th nying overbu urden dump. The objecti ive of the project for this pa art was achieeved and exc ceeded. The drainnage channe els on ash du ump were constructed on n 3700 m len ngth, all arou dump und the ash d ure below), and (see pictu a with 300 00 m length on accompa anying overb burden dump p. annels on ash dump and so Drainage cha den dump outh overburd ation Measu Reclama ures 77 The rehaabilitation meeasures sugg n the framew gested within work of this project were to the e restricted t nge of the dump north ran d he accompan and th nying overbuurden dump p. These me easures sugg gested p mainly planting g of grass on the soil covered northern ppart with a ssize of 40.5 ha, soil-covvered p 2.7 ha and overbur western part w a size of 89 ha. T rden dump with The Reclama ation Depart tment takes car c re only on cutting the grass period rder to prev dically in or vent eventuaal fire from high temperatuures during the summer he year 2017 rs. During th going to be reshaped th 7, there are g he last h 30 hectares part with s of the wholle dump areaa. h dump after re Ash eclamation h dump after re Ash eclamation d Ash dump lamation after recl clamation Ash dump after rec Monitori ematic air mo ing: A syste onitoring system has beeen implemen monitoring p nted by six m points ure below). Weekly an (see pictu nd monthly reports are provided by y KEK. Sam mpling was done monthly and samples s were analyz ht and granu zed for weigh hese monitori ulometry. Th ved as ing data serv r planned imp a control measure for o the ash du provements of ons. ump operatio 78 The grapph below sho reased level of dust from ows the decr m 2011 to th 013, and by 2015 he end of 20 t level that the level was below the could registe t the monitoring points c er. D level moni Dust 011 to 2015 itoring from 20 b Pictures below nts the ash dump presen d aerial view v on 2010 (left) com e 2016 (right mpared to the t) 79 Ash dump before remedia (left) and 2016 (right) ation on 2010 ( art C - Recla 2.2.4 Pa erburden du amation ove umps This com mponent was t mobilize existing KE s projected to EK earth mo oving equipm ment and reclaim about 650 f overburden 0 hectares of gh investigat n land throug ng and re-cu tion, reshapin ultivating in order and to becom for the la me usable aggain for commmunity purp poses. This la mplete owne and is in com ership of KEK. The total costs compris estigations, c sed site inve civil works, planting and greening a areas. The acti ivities included physica al reshapingg, constructiion of main n and mino or access r roads, on of a surface drainage system installatio s and planting p rees and mix of tr xed vegetatioon. verburden dump Lismir – Kuzmin ov d This are a ea covers around 782 hectares. The T d site inves detailed stigation report and d design ated the geol investiga ditions, soil classificatio logical cond ater managem on stability, sloping, wa ment, environmmental situation and land d use and cooncluded tha ce of the du at the surfac ump was mo ore or less natur ened, with a lot of (water rally re-gree r filled), holees, slope moovement, butt also parts w where ure was infor agricultu rmally execuuted by neighhboring villa ages. ws an overvie The map below show iginal situati ew of the ori min Dump ion at the Lismir- Kuzm 80 w Map of the Lismir Overview L Dump Kuzmin Overburden D The follo owing range of reclamat tion measure es were foresseen in the L zmin Overbu Lismir - Kuz urden Dump: (i on of dump areas: i) stabilizatio a oping and fl attening of d (ii) slo uction dump areas: (iii) constru of accesss roads; (ivv) construction of drain nage channe ls; (v) plan es. From the nting of tree e site investiga ations and thet detailed d design fo or the recla amation, the ere were also areas w where reclamatiion was fore eseen by nattural vegetat tion due to t the presence oles and natu e of waterho urally occurring a animal species. g rare plant and s In adddition, was te was remooved. Before After rees Tr r, Kuzmin dum Lismir after remediatio mp before and a on Mass Reemoval Based onn the results of the site investigationns the northeern part of thhe south dummp was sepaarated n this project from the treatment in rting the act t. Before star waste at the d tivities, the w SE 3) dump foot (S was remooved and the d sinks were drained. e water filled SM 1 Sta o the dump foot west of abilization of Within this a f the village of Lizmir: W hesive area the coh den masses were dump overburd ped into a former bro ook bed w without appr ropriate drainage 81 measures s. The high water satura ation of the dumped ma he undergro aterial and th ound dipping g into the south he reason cre h east were th eeping slides continued west of Lizm mir. t counterac In order to m ct this slide movement, he following th g measures w were taken: - The dummp foot was drained by constructing g drainage caanals. - Levelin ng of the enttire dump we zmir to avoid est from Liz d damming wetness and harge d direct disch of the sur rface water. - The red duction of the dump heig ght northwesst of Lizmir i educe the load. in order to re The dum s by draina mp foot was slit age channelss along the f foot on highest and lowe th the est lines, wit channels not more th han 1 m deppth, because the type of soil limits th he depths off the canals. The access ro oads were coonstructed onn more than 3 km distanc to be able to ce, in order t dump o access the d areas, before and afte on. er reclamatio w after remedi SM 1 view iation SM 2 Reshaping of th a he instable areas betweeen Lizmir an nd Kuzmin: W Within this a ing of area, reshapi slopes is done in 1 section. The works were e conducted during seaso ons with loww precipitation as otherwisee the area could not be accessed by y the heavy equipment. Driveways on around 4 km were esta s ablished in such a way th hat they didn e nature rese n’t affect the erves. In the lower part o of the dump the e two ditchess are combin itch. ned to one di Access road e canals ds and drainage 82 SM 3 Reshaping of th he steep eastern slope no mir: In this ra orth of Lizm gest dump he ange the larg eights w partly 50 existed with 5 m. The ou utside dump stands here e on horizon ntal ground; the general slope t dump pa angle of the artly reaches 18 to 20°. To ensurre a permane f the slope sy ent safety of ystem, terraccing of this s m is impleme slope system ented. The high aces amount h of the terra t to 2 m, the errace with l ere is one te h up to 60 m and larger width three sma w each terrace aller. Below age channels e, the draina s were constr ructed on a length of 26650 m distance. The workks were cond ducted durinng seasons with w low prec Driveways we cipitation. D hed as ere establish ansport dista required to reduce tra ances. ing of the terra Reshapi aces inage channels Drai es Stabilizing Measure ng and resha Stabilizin aping measu ures were pla anned on 888 ha (14 % o of the area).. The pastureland a and the already sting and uti exis ilized fields were respec cted and not t changed. O On SM1 – d dump foot, wes lage Lismir, 40 hectares st of the vill d were stabil s of the land ned and resh lized, flatten haped. The Lism mir commun nity, started to use it fo ral purposes. On SM3- the areas on the or agricultur s eastern slope, north of Lismir, 232 hectares area re-cultivvated with 6 60 000 forest trees. Sinc ce the a planted area was not t fenced, thuus the grazinng cattle couuld damage the new pla ants, Reclammation Department organize ed a special guarding un s increased t ntil the plants their length enough to bbe out T Departm of risk. The ment also org ganized a we eeding twice order to remo e a year, in o ove the risk from 83 i fire and increase the percentage of survival rate among the trees. 87 7% of the planted trees were successfuul in this area. Planted trees South off the unpave ed road fromm Lizmir to Bardh there 4 ha area wi e are a 46.4 ith a lot of small waterholes. This area is reserved d as protect area. The lar ted natural a rgest part off it was natuurally d on the bas cultivated te investigat sis of the sit clamation pla tion and rec ended that n an. It is inte nature shall dev u velop here undisturbed. The numer rous waterho e habitats fo oles provide or rare plannt and animal sp ow) pecies. (See pictures belo ation Natural created vegetat ation Natural created vegetat The area nd eastern of a northern an was extensiv f the school in Lizmir w vely used as municipal w waste dump by the villager tity of waste rs. The quant ated to 2,000 e was estima uted on an ar 0 m³, distribu rea of 84 about 2 ha. h Partly the e waste was dumped into ally water-fi o the seasona which is integ illed sink, w grated em of the ou in the drainage syste utside dump. The contam minated area a lied behindd the overbuurden dump. Because B of th he direct vi icinity to th he area unde er review an nd the risk of surface w water contamin K nation, the KEK Reclamation Depart ed the site sim tment cleare multaneously y. Western of the village Lizmir was w a further area conta aminated wi ith mostly ddomestic garrbage. The garbbage concent trated along the road bet tween Lizmi ir and Bardh me was estim h. The volum mated m The Re to 100 m³. eclamation Department t removed t this garbagee with shovels and tr rucks, supportedd by manual l clearing, constructed a road 800 m distance, t then the road Bardh d Lismir – B m distance. The of 1,8 km T reclama ation Departm ment also he elped on layyering and sh chool haping the sc yard. The elow shows some e pictures be s entioned abo of the activities me ove. r school yard Works on Lismir nstruction Road con c Road cleaning epartment by De maintenance for Plants m r community d constructions Road s 85 Illega al al waste remova rburden at Kalaja The over K L and Lugu lle i Thel An essenntial part of the opening-up masses of the Bardh hi mine wer re stored in t the outside ddump T outside dump Kalaja. The d irectly south lies di hwest of the Bardh villag of the ge in the uphill terrain o basement t and consistts of two ma ain parts, the e bigger easttern part (Kaalaja) and thee smaller we estern gu i Thell). part (Lug The outside dump Kalaja, K dumped between 1964 and 19 978 is forme ed by a mor re or less fla at and wavy sur rface with a slight dippin ng in eastern Also the form n direction. A mer undergro ound of the d dump was dippping into eastern directio on. The dum mp extends ov ver an area o of 164 ha annd includes a about 25 mlcmm overburden n. The thickn d ness of the dumped overrburden com mes to 15 m in average. With the excepption of the eastern side the dump is enclosed d within the basement. T The slope o on the eastern si ump is locate ide of the du v ed in a flat valley. The outsside dump LuguL i Thell lie on a hig han the main gher level th n part. The dump bench h belt conveyor u along a hi r was built up om this posit ill slope. Fro tion about 4.6 ml cm of overburden were dumped over an area a of 49 ha in n the subjaccent valley bbetween 198 88 and 1991. The foot o of the ans against the opposite slope lea e side of th he valley. RRisks for the e public safefety could not be observedd. Some sma t northern all plots at the n as well as the southern n boundary of the dum mp are used for agriculture. Northernn of the Kala c aja dump is connected a small flat duumping area a filled with overburden from the openning-up of th he mine Bar rdh. This 41 1 ha large d dump was bu uild up in ccombination with trucks an nd train oper c ration and contains an overburden o volume of 3 v 3.2 ml cm only. The average thicknesss of this parrt of the dum mp comes to o less than 8 m. The su urface has bbeen naturall ly re- greened despite the higher conte ent of granuular material l from the oopening-up. This 41 ha large dump wa as build up ini combinat tion with truuck sand trai in operationn and contain ns an overbu urden volume ofo 3.2 ml cm m only. The average thic ckness of thiis part of the dump com mes to less th han 8 m. The su urface has been naturally y re-greenedd despite the higher cont tent of granuular material from the openiing-up. 86 O Overburden Dum d Lugu i Thellë. mp Kalaja and se Concept Land Us Kalaja ou urally used in utside dump is agricultu nformally on nly in the we r on an area of 19 estern sector ha. The preparation of the cent tral horizonttal area in KKalaja for a agricultural uuse was alsoo not recomme ended because of the prooofed heavy metal conce the dumped material (de entration in t espite irements of the resident the requi ts in the adjaacent villagees). Two so oil samples wwere taken aat the Kalaja ouutside dumpp. The obtain s ned results shows that c cadmium val lues were fo cantly ound signific lower an a nd below accepted standards, but nickel con ncentrations are confirm med well a above standardss used for evaluation. Chromium was analyz zed and als so found close to or a above standardss. The probblems related to nickel, , chrome an nd potential lly cadmium m originate from overburdden material which was not expose ed to soil foormations. In n a separatee academic study w examined nickel was cally in a pr d systematic rofile from c face and con coal to surfa ncentrations were nd in the ord also foun der of hundrreds mg/kg. Nickel and d chrome are e both consi idered phytootoxic and also toxic for huumans when entering the e food chainn. Soil of thiis compositiion should nnot be o pasture. used for agriculture or alaja overburde Ka d use concept en dump - land t agricultu Besides the ural use theree was also a demand for r firewood byy the residen re the nts. Therefor land use concept sugggested the preparation of a plantat tion for fast growing tre entral ees in the ce he dump Kal part of th laja. In total l, 65 hectare es have been n flattened annd stabilized d and 34 hecctares are plant 000 forest trees. ted with 780 t Becauuse of the gr f area, a full reat size of l fence was note 87 feasible, instead KEK d a guard to make sure t K appointed were not dam that plants w maged by ca attle’s and other C r animals. Comparing to o Lismir-Ku al rate of the uzmin plants, the surviva Kalaja e plants in K is around 60% as there were problems with w weed competition n, fires, rab aused bbits that ca substanti o seedlings not to surviv ial amounts of ve. w Planting works – Kalaja dump The surfa d faces of the dump of Ka alaja as well l as the dum mp of Lugu i Thellë hav eened ve self re-gre with gras a small trees. The west ss, brushes and art has been used for agr tern main pa riculture for some years, though this is not recomm mended and not in line with the lan nd use conce ept. The dummp is o already optically egrated into the landscap inte pe. The drainnage channeels were connstructed on 2200 m, on thiis overburdenn site. n of drainage channels Construction c alaja overburde on Ka en dump Dump Kalaja K already y had existing ditches which w onnected to the existing are co g watercours ses in ys with direc the valley utheast. ctions to the east and sou 88 a  overburden areas treated  during the pro Map of all oject   89 Dump site Stabilizat Sloping and Constructi Constructio Planting Total area Areas Contaminated Areas to ion of flattening on of n of of trees treated where land still be dump (hect) access drainage (hect) (hect) detailed management/l reclaimed areas (in roads (km) channels design and reclaimed by KEK in hect) (m) investigated (hect) future (hect) as already suitable for community purposes (hect) Ash dump 123 123 6 3700 m 246 0 123 40 South 56 56 3000 m 112 0 56 24 Dragodani ash and overburden Total ash 179 179 6 6700m 358 0 179 64 dump South 91 91 7 2650 m 23 205 681 10 Lismir- Kuzmin Overburden Kalaja and 65 65 6 2200 m 34 164 330 15 Lugu i thelle overburden Vasiljeva 0 0 0 0 0 0 79 50 overburden Total 156 156 13 4850m 57 369 1090 1246 75 overburden areas Table 2. Project target achievement     2.2.5 Part D: Project Management This component provided support to KEK to implement the project. It included support for: (i) project management and technical assistance in such areas as detailed design, construction supervision, procurement and financial management; and (ii)monitoring and evaluation of project impacts, including implementation of an environmental management plan for construction activities carried out under the project. The responsibilities of the PMU were to:  Manage day-to-day project implementation, including, but not limited to, procurement, project monitoring and evaluation, financial management, progress and financial reporting in close cooperation with the Grant Unit of the Ministry of Economy and Finance;  Prepare quarterly progress reports for KEK’s Board of Directors, the Association and the Project Coordination Committee (PCC);  Draft Terms of Reference for consultant assignments;  Function as the counterpart of the services provided from the grant;  Review consultants’ reports and monitor the performance of the consultants;  Serve as the Secretariat of the Project Coordination Committee and assist in follow up of activities approved by the PCC;  Arrange for public consultations as required;  Ensure that project subcomponents are completed on schedule and achieve their planned outcomes; 90  Ensure that procurement and financial management are carried out in accordance with World Bank procedures and that the annual financial audit is submitted to the World Bank within 6 months of the close of the financial year;  Maintain grant implementation records;  Serve as the contact point for information on the grant; and  Coordinate clean-up and reclamation activities with other KEK projects. The PMU reported through the head of KEK’s Services Division to KEK’s Board of Directors and the PCC. The Board provided to the PMU Director, advice and recommendations on grant implementation. The IDA grant provided funds for the first two years of the project to hire a PMU director and a procurement specialist, both with international experience. Office equipment and incremental operating costs were also financed by the grant. The PMU monitored implementation of project activities and the performance of the consultants in accordance with the contracts, reviewed and approved the consultants’ inception reports, mid- term reports, and final reports. A quarterly report on project implementation was submitted by the PMU through UNMIK to the Association as per the formats agreed during Negotiations. The grant unit in the Ministry of Economy and Finance assisted in the reporting as well as in the disbursement procedures. An external auditor was appointed to audit the financial statements of the project and the cost of the annual project audits will be paid from the Grant. Procurement activities were carried out in accordance with the World Bank’s Guidelines by KEK through its PMU. The CLR-Project was established as independent structural unit within KEK. Mainly consisted of the personnel recruited from KEK and had partly also own equipment financed by the World Bank budget. KEK plans to allocate this department to the new opencast mine if activities in this mine will prevail against the active mines. Initiated on 2007 as part of the project, the Reclamation Department was created and started operating on 2009. The main goal of this Department was to continue with the good environmental international practices on land reclamation after mining activities. The Department was equipped with heavy vehicles and necessary tools by the project and partially from KEK, in order to be fully operational. There are 52 employees engaged in this Department, who successfully got trained by the expert of the project. 2.2.6 Part E: Hazardous Chemicals Clean-up at the Kosovo A Gasification Site The main goal of the project was to remove the hazardous compounds in order to bring significant benefits in terms of eliminating the risks and concern for negative effects on public health and for potentially environmental impacts arising from the actual situation. In particular, the clean-up project aims to dispose of ca. 20’000 t of hazardous wastes from the following storage facilities: • 12 vertical and 16 horizontal tanks • 156 barrels • 2 open basins • 1 open tar deposit Ca. 15’000 t of liquids with low organic contents could be treated on site by chemical physical 91 Treatmennt, while Ca ctions consist a. 7’300 t of residue frac h organic con ting of liquids with high ntent, solvents, diisopropyl r residues ha lether and tar nsported out ave to be tran o and dispos tside Kosovo sed of in cemen w nt plants and hazardous waste ration plants inciner s. o gasification site Tanks on s and open basi Reservoirs d on Gasificatio ins with liquid on site s filled with wa Reservoirs aste T sludge on o Tar opened area Initially a design and ion contract for the gasi d investigati ant clean-up has been sig ification pla gned. The inve esults and in estigation re nterim reporrt have beenn available in the first quarter 20009. A contract was signed for Environ nmental Imp pact Assessm ment of thiss report as a necessity prior start-up of o any physical works on n removal/treatment of tthese hazard EIA was fina d materials. E alized th where th uts came fro he final inpu om the secon nd Public heearing, held on January . EIA y 27 , 2010. 92 report wa as completed t report we d and with this w assured E Environment tal Consent from Minist try of Environm ment and Spa ng. atial Plannin The cont E tract with EPE/MOUR RIK consorti ium got sig gned early iin 2011 and d meanwhile the n of the Inter selection rnational Su C upervision Company to supervise thhe works in gasification n Site was cond ducted. Both h contractorss started theiir works on site and the was to prepar e first step w re the infrastruc c cture: the construction of access roads, as w well as forttified areas for storage e and manipula ation was begun. The negotiations with w other po osers and cou ossible dispo ed out untries turne to be verry difficult because Koso ovo is not a member of t the Basel Coonvention. TThis problem m was solved by y having in place the bi ilateral agreements betw ween Republ lic of Kosov vo (as counttry of origin of r f the hazard waste) and receiving co ountries Belg gium, Swede en as most h hazard wastee was foreseen to be finally y disposed inn those count tries. w Permits were grantedd by Ministr ry of Enviroonment and Spatial plan nning in Dec cember whil le the bilateral agreements have been signeds ebruary 2012 in Fe were forward 2 and then w ded to respeective authoritiees in the rec cipient Coun ntries. All of o the waste e that had too leave Kos sovo was alr ready packed in n IBC containers, meani ing that metaal reservoirss have been emptied, cle eaned and ha anded over cleaan to KEK. The pilot t test for cleaning up thee Liquids wi ith Low Org ganic Contennt (LLOC) started on the e 13th of Augus st and was completed c onn September r 7th,, 2011. The pilot te est showed t that 3 times more n than the planned, of chemicals necessary to remove the phenols. Also, since the e discharge llimits for the parameters chemical oxygen o Demmand (COD D), Total O Organic Car rbon (TOC) ) and Sulphates cannot re each, an exe emption for r temporary discharging g limit was s granted by y the Ministry of Environ nment and Spatial Pla anning on t the basis oof detailed analysis of f low environmmental impac cts from the d e sulphate discharge. B Below are s shown the p pictures fromm the o site prepar process of ration and clleaning proccess. e preparations Site truction of deco Const reas and pavem ontaminated ar e measurement ment for vehicle ts 93 Work pr ning rocess on clean Work pr ning rocess on clean S Sampling w and works ined spaces on confi Packaging and n process d transportation 94 A double e or in somee cases triple in three inde e analysis (i ependent lab bs) of heavy y metals, pheenols, sulphates s, sulphides, COD and TOC T ensuredd the quality of the perm mitted dischar nd the rge limits an ke containing filter cak ular residues from the Fe g the particu enton reactioon. Regular measuremen nts of the impa act of the woork on the ennvironment do not show w any excee eding of limi its .By mid April 2012, all h l 30 basins have been trreated comppleting as su uch the local l treatment o of 14,755 toons of w Low Org Liquid with ganic Conten nt (LLOC). During th P he works, PMU in cooordination with the KEK K requested from the co ontractor to do a sampling g of the undeerground tank B5 that wa asn’t include on inventory list. The B5 ed initially o 5 tank has volum me of appro oximately 1000m3, filled with a mixt ture of solvents, creatin ng a high rissk for the work kers and anyo t could use th one else that he area in the future. The cont tractor clean ned the tank and by com mpletion of t these activit ties, all the works under this compone ent have bee en successfuully complet ted. Therefo ore, under th his project c component, there have been treated totally:  7,300 7 L tons LHOC exporrted outsidee the countr ry.  14,755 1 tons of LLOC tr reated on sitte.  494 4 big bags s (approx. 550 5 t) left on n site, but re epackaged an nd safely sto ored in warehhouse (see ( picture). Bags stored rehouse d inside the war B Before After process Before and after cleaning p 95 process Before and after cleaning p rt F – MESP 2.2.7 Par mental Moni P Environm ent itoring and Manageme This com mponent aimeed at improvving the funcctioning of th he examinat tion and mon MESP nitoring of M ronmental and with regard to envir a social im mpacts of la arge power plant projects by provviding w goods, works chnical assist and tec ding: tance, includ (i) Air Quuality monit ns to have re toring station on air quality eliable data o y; a Water Monitoring (ii) Soil and M prrogram to co le data on ac ollect reliabl ctual pollutio on, (iii) Envi a Social Im ironmental and mpact Assesssment for th e proposed K Kosova Pow wer Project; (iv) Mon he RAP implementation of nitoring of th o the Shala Neighborho ood; (v) Panel e l of experts established t assist on ESIA to E and mo onitoring of RAP; and (vi) Low carbon ener s rgy growth study (vii) Studdy Tour to Poland It is impo ention that al ortant to me ll above men ntioned activ vities were a mprove the qu aimed to im uality of the wo M orks within MESP and also a to provi ed for succes ide accurate data, neede edible ssful and cre ESIA doc cument to be or the Kosov e prepared fo va e Re Powwer Plant. Q (i) Air Quality itoring stati moni ions; These staations were aimed initia ally to be puurchased un nder Lignite Power Tech hnical Assisstance Project (LPTAP) ( ut since the bu e project was w closed, it was fore eseen that t ns be these station ed to the CL transferre LRP-AF proj oject. Based on the analy ysis and win eloped by H nd rose deve HMIK (Hydro-m meteorologiccal Institute of Kosovo) best possibl for these AQ le locations f QM stations were selected. These loca ations were in the muni icipality of Obiliq, all nearby the power plant and ed to have be distribute est area cove t the map b erage (refer to below) 96 As locatiions where the stations would be installed, had ontinuous power supply d to have co y, the n cooperatio project in on with mun nicipality of Obiliq and KEK had c e public loca chosen three ations that woulld accommo tations: odate these st Local co ode of Name of the station M Managed b by: asured para Mea amteres ion the stati KS0110 Ob care biliq- Healthc KEPA/ K K HMIK SO2 , NO2, CO,O3, PM10/PM2.5 nter cen KS0111 Da mary ardhishte-Prim KEPA/ K K HMIK SO2 , NO2, CO,O3, PM10/PM2.5 School KS0112 alaj-Kosova Mont Pa M K K KEPA/HMIK SO2 , NO2, CO,O3, PM10/PM2.5 en from the table, So as see t AQM stations wer re designed tto measure pparameters oof SO2, NO2, CO, O3, PM10 0/PM2.5 conti d report to HMIK inuously and H l-time basis. on real . Additionnally to abovve mentioneed parameter rs, also winnd speed and nd air d direction, pressure an humidityy were measu ured. 97 These continuous air monitoring stations had served best for what they were designated and provided continuous data for the experts in charge for preparing Air Quality and Air modelling chapters of the ESIA document. They were procured and financed under the CLRP. All these data were required to have clear picture on actual situation and to make future assumptions with new power units in operation. Also the data is submitted to the Kosovo Hydrometerological Institute which is using the data together with data from the stations across the rest of Kosovo in monthly and yearly state of the air quality reports. (ii) Soil and Water Monitoring program The main objectives of the assignment were the collection of field data with focus on soil, surface water and groundwater to close the data gaps of the existing environmental database mentioned above in order to provide sufficient environmental baseline data for a fully elaborated ESIA with regard to - future lignite open cast mining activities in the Sibovc South lignite license area earmarked for coal supply under consideration of the abundant mining activities in Bardh and Mirash open cast mines as well as already abundant open cast and underground mining activities - disposal of ash and waste water under consideration of existing TPPs Kosovo A and B - fresh water supply under consideration of existing TPPs Kosovo A and B fresh water consumption The assignment included the following major tasks and issues: - Sampling and analysis of surface water - Sampling and analysis of waste water - Sampling and analysis of ground water from existing wells and new drills - Drilling and lining of new GWM, documentation of ground water levels in new and existing GWM - Reporting (maps, coordinates, documentation of drilling and lining of GWM, sampling reports and analysis results, basic assessment/evaluation of analysis results) - Measuring of flow rates of selected rivers and creeks in the area There were two sampling campaigns undertaken during this assignment, while the number of the total samples (soil, surface water and groundwater) are shown below: Type of the sample Number of sampling points Soil 60 Surface water 35 Ground water 29 Waste water 14 River sediments 24 For illustrative purposes, KEK area and groundwater sampling points are shown in the map below 98 ironmental and Social Impact Ass (iii) Envi sessment The envi a social im ironmental and mpact assessmment of the proposed K Kosova Powe er Project waas the most imp gnment of th portant assig s also other c he project, as complement tary studies prepared showed s known tha this. It is at it is the re esponsibility y of the devveloper, in thhis case thee winning pr rivate sector bi idder to pre E epare the Environmenta al and Soci ial Impact A Assessment for each o of the separate sub-project ts subject to t national legal requi irements. FFor the prop posed KPP P, the Governm ment and the World Bank m k agreed to make ent use of tim efficie me and until the award o of that specific concession in order for the Go overnment to commen nce the preparation o of an Environm S mental and Social Impacct Assessmen nt (ESIA) fo r the propossed KPP. The ToR tudy were prepared R’s of the st p ry carefully and discussed with different loca ver al and onal stakeho internatio olders to ma t all relevan ake sure that followed. Af nt standards are being f fter a procuremment process ium of comp s, a consorti panies fromm Croatia, Sl snia and Ko lovenia, Bos osovo o prepare the had won the tender to e ESIA. The proccess of the ESIA was a loong process, of difficultie , with a lot o e implementa es during the ation, ason for this could be di while rea ifferent, but it would be worth to me ention some: one of the most importannt was that consultants s responsibl le to prepar re the ESIA A didn’t un nderstand in n the beginning that the ESIA E we waanted them to t prepare w was not a do ocument me eant to be hhighly l and on the other side also technical a not know wing the fin nal technolog gy that was ggoing to be used, made the document uminous tre t quite volu eating differ rent types o of technolog ferent gies in diff condition ns. 99 Finally after agreeing with the right version of the document, the consultant prepared the Scoping study as required by TOR, and after discussing it also in the stakeholder committee (a committee with members from MESP, MoF, MED, Municipality of Obiliq and KEK) agreed to make it publicly available and to hold a public debate with the affected people of the municipality of Obiliq. During the public debate the consultant presented the document and alternatives that were considered and after the comments received the document was finalized. It should be noted that during this assignment, the public information office (PIO) was established and served together with municipality of Obiliq to the concerned people. Under this project there was a full time employee who was stationed within the municipality building to keep people up to date with the information from the project and raise further concerns or complaints in case they had. Last but not least, also a web-site was established in order to provide more information related to the document and latest notifications related to ESIA. Where interested parties could read and download monthly Air Quality Reports (from HMIK), latest version of the ESIA and other related studies such as soil and water monitoring program. Throughout the process, the project team was assisted by the Panel of Expert, who were international experts with experience on environment and social issues according to standards of International Financial Institutions (IFI). This part will be further elaborated in next section. The ESIA was delivered draft, due to reached agreement between GoK and private investors which was not foreseen by the actual ToR’s of the actual ESIA. The process has now started to revise the ESIA for update to the new power plant configuration. (iv) Monitoring of the RAP implementation of the Shala Neighborhood Since one of the three objectives of the Clean-up and Land Reclamation-AF project there was also the objective to support KEK and the Ministry of Environment and Spatial Planning (MESP) to implement continued clean-up operations and environmental good practices in the mining and energy sector, this assignment was related to what was said above and exclusively for resettlement. As part of the this objective described above the AF-CLRP included a component aimed at improving the review and monitoring function of the MESP in relation to the environmental and social implications of large power sector projects and in particular the preparation of the Kosovo Power Project (KPP), which was being supported by a separate WB operation. The aforementioned component included resources for, among other, the following activities: (a) the Environmental and Social Impact Assessment (ESIA) for the proposed KPP; (b) international ESIA and Resettlement Panel of Experts; and (c) monitoring of the implementation by the Hade Project office under the MESP of the RAP for the Shala neighborhood of Hade village in accordance with the World Bank's Operational Policy on Involuntary Resettlement 4.12 (OP 4.12) and International Finance Corporation's (IFC) Performance Standard 5 on Land Acquisition and Involuntary Resettlement (PS5). 100 Therefore to help the project comply with above mentioned standards there was a consultant hired to provide Consultant Services for the Monitoring of the Resettlement Action Plan (RAP) for the Shala neighborhood of Hade village are aimed at supporting activity (c) above and continue the work conducted by rePlan under a previous contract between 2010 and 2012. During this assignment the engaged consultant monitored the resettlement process which took place in the new location designated for future resettlements. The consultant during this period produced two monitoring reports with the insights from the field visits and also a resettlement completion audit followed by a stakeholder workshop. The Resettlement Completion Report also contained an Executive Summary which was publicly disclosed followed by public discussion with the project affected people. (v) Panel of Experts (PoE) established to assist on ESIA and monitoring of RAP During project implementation also two experts (social and environmental) were engaged. These experts had a crucial role in advising PIU and also companies on IFI standards to be followed during implementation of ESIA and RAP. ESIA and RAP Panel of experts had the following objectives: (a) to ensure due diligence and international quality standards in the studies, including integration of international standards for data, methodologies, benchmarks for impacts, and design criteria; (b) to provide high level and professional independent advice and guidance to support objectivity and credibility in the assessment process, and (c) to share technical expertise and knowledge and so contribute to dialogue amongst Consultants, the Government of Kosovo and other stakeholders. The primary outcome from their effort was to ensure international standards of the study, risk evaluation and impact assessment are met, and to assure a level of confidence amongst the international community in the quality and integrity of the assessment process and findings. POE members were experts with a broad knowledge of environmental, social, and technical impacts and issues associated with open cast mine development and large scale coal and lignite fired power projects. Furthermore, they had full understanding and were knowledgeable in recent EU Directives, BREFs and World Bank and EBRD Safeguard Policies and procedures required for a “Category A” project. The POE worked as an integrated team; Experts did not only address their own area of expertise, but contributed to the interdisciplinary work of the POE. Their collective professional knowledge and experience allowed them to address the following broad areas of importance to the ESIA, including but not limited to: institutional aspects, technical issues/design options and alternatives (particularly for pollution control), social and environmental impact data requirements and impact analysis, resettlement and economic rehabilitation projects, and public consultation and disclosure procedures. (vi) Low carbon energy growth study Low carbon energy growth study was part of the project as an initiative from World Bank, not only to consider fossil fueled energy but also to have a broad perspective on other renewable energy sources as well as energy efficiency and their cost reflections as well. In order to complete this study a company ECOFYS, was engaged with extensive experience in similar studies. Below are described the scopes of the services undertaken under this assignment as well as the findings. 101 Task 1: Review the Climate Change Strategy and other relevant background documents The Consultant had to review all available background documents, in particular: (i) the Climate Change Strategy; (ii) the activities undertaken by Ministry of Economic Development (MED) to meet the EU 20-20-20 targets in the framework of the Energy Community treaty, including the Renewable Energy Action Plan and Energy Efficiency Action Plan; (iii) the several projects to reduce Greenhouse Gases (GHG) in buildings and other sectors, such as the Energy Efficiency and Renewable Energy Project, financed by the World Bank and implemented by the MED and other donor financed GHG projects, such as from KfW, USAID and the EU. Task 2: Identification of key Greenhouse Gas emission reduction measures for key sectors, greenhouse gas reduction potential and associated costs and investment needs The Consultant had identified the key emission reduction measures which exist in the key sectors in Kosovo, estimated the greenhouse gas reduction potential as well as the associated costs and investment needs that are required in order to realize this reduction. The consultant had also identified the measures and actions which were already being realized and have secured funding, the reduction potential which was estimated to be realized through these projects already being implemented and for the remaining measures, the key parties which would carry the investments required. Task 3: Preparation of Greenhouse Gas Abatement Costs curves The purpose of this task was to provide a clear overview of all type of measures required for Kosovo to meet its obligations towards the European Union and for Kosovo to follow a low carbon development path, its investment costs and the greenhouse gas emission reduction potential. This task modeled the measures required based on 3 different scenarios in terms of greenhouse gas reductions and compared this with a business as usual model scenario. Task 4: Training of MED and MESP on Greenhouse Gas Abatement Costs Curves and establishment of database The Consultant established a database containing the different type of measures, the estimated investment costs and greenhouse gas emission reduction potential in the key sectors in the MESP and MED, provided the model for the Greenhouse Gas Abatement Costs Curves and provided a 4 day training to Kosovo officials on how to maintain the database and model the Greenhouse Gas Abatement Costs Curves when updated information becomes available in the future. Marginal abatement cost for 2024 projection for Kosovo, which came out as a result of this study is shown below: 102 dy Tour to Poland (vii) Stud P Purpose ofo the study tour was to strengthen the capacity within the M Ministry of EEnvironment t and P Spatial Planning, the Kosovo Env vironmental Protection A Agency and its inspector e rates and the Ministry of Economi ic Developm ment in the field of lignite e-fired poweer plants, inccluding open n cast i the follow mining, in wing areas: (i i) Environme ental Impact t Assessmen nt for new po ower plants aand r how the review q and quality contr zed; (ii) perm rol is organiz mitting taskss as they are defined in P Integrated Pollution Prevention a Control legislation and l (I IPPC) and k key elements s of IPPC per rmit 1 including g application n and approv val procedure es ; (iii) freq quency and t type of inspe ections to c monitor compliance w the perm with ons, (iv) emis mit conditio ry including emission ssion registr monitorinng obligation ns for indust bmission req tries and sub quirements too authorities, (v) Best Availablee Technique es for lignite fired powerr plants; and (vi) site visi tly construct it to 3 recent ted or renovated ed power pla d lignite fire ants to view their t environ nmental commpliance, em mission monitorinng regime an nd environm mental investmments. fi Lignite fired p power plants preferably in the range r of 300 MW (small l units) rangiing until 5000 MW as th he 300 MW units are mo ost comparab ble to the pla anned unit size in Poland. The idea of 1 d manuals used in the Minist  Including guidelines and plications and permits.  And branch guideli try for IPPC app ines  ergy sector.   for the ene 103 the study tour was also to visit power plants which use Pulverized Coal Combustion (PCC) technologies and units who use atmospheric circulated fluidized bed combustion (CFBC) and perhaps different type of cooling systems direct once-through cooling (Patnow II). Key plants in Poland who were built in the last 10 years and visited are: Bełchatów II PGE /BOT Elektrownia Bełchatów 1 x 858 Belchatów SA. Patnow II Elektrowni Pątnów-Adamów-Konin SA. Patnow- Konin 1 x 464 (ZE PAK SA.) Turow 4, 5, 6 Turow Power Plant S.A. Turow 3 x 262 3 PROGRAM SUSTAINABILITY Sustainability of the program was achieved through capacity building of the implementing agency and other participating institutions. KEK’s capacity in lignite mining operations was enhanced by developing integrated approach to deal with environmental legacy issues from lignite mining and power generation activities. By building capacity within KEK and environmental officials in central and local Government, the clean-up activities substantially reduced the environmental pollution created by the ash deposited in the open ash dump. This project and its implementation model can be used for other similar projects, as a good example with significant results. The sustainability was also achieved by investigation of the site using international good practice to remove, package, and export for incineration or reprocessing of chemicals including phenol, benzene and tarry residuals. The capacity building subcomponent of the Grant included a) Training of the local staff of MESP, MF, KEK, Municipality of Obiliq and PMU and b) Forming a new Reclamation Department within Mining Division, in order to continue with using international good practice on remediation and land reclamation, c) Site visit to the RWE mining facilities in Germany. The purpose of the site visit is to study closely the successful implementation of the IPPC permitting procedures, IED compliance and other environmental permitting procedures for the lignite-fired power plants in Germany. 4 INSTITUTIONAL ARRANGEMENT AND STAKEHOLDERS FOR PROGRAM IMPLEMENTATION KEK is the main project beneficiary and implementing agency. As the implementing agency, KEK was responsible for day-to-day project management, including hiring and supervising consultants. Internationally experienced specialists for the PMU were financed by the grant under component D. A Project Coordination Committee (PCC) was established to provide advice and monitor project execution, and oversee coordination between KEK and local and central authorities. MEM, MESP and the Municipality of Obiliq played an advisory role and coordinated activities such as the preparation of the EIA and the land use plan. 104 The PCC was chaired by the Minister of MESP or higher duly authorized delegate and included representatives from KEK, the Kosovo Trust Agency (KTA), the Ministry of Energy and Mining, the Independent Commission of Mines and Minerals (ICMM), and the Municipality of Obiliq. Representation in the PCC required participation from all key institutions that have involvement or an interest in one or more of the aspects of implementation. The Chair of the PCC convened regular meetings throughout the implementation of the Grant. Attendance by representatives of the KTA, KEK, MEM, MESP and the Municipality of Obiliq were mandatory. The detailed functions and responsibilities of the PCC and the PMU were defined in an Operations Manual, which was adopted after project effectiveness. The key responsibilities of the PCC were to:  Coordinate the activities of the various agencies involved in the implementation of subcomponents, especially those related to environmental and social aspects (regulatory supervision particularly from MESP and MEM);  Ensure consultation with local institutions, donors and other stakeholders as appropriate, based on recommendations from the PMU;  Review the PMU’s quarterly Progress reports;  Advise KEK’s Board of Directors on project execution and progress; The PMU was to serve as the Secretariat for the PCC and prepare and distribute the Minutes / Agenda for each PCC Meeting. 5 IMPLEMENTATIONS ISSUES ENCOUNTERED One of the issues encountered was that, the design of the Wet Ash System and construction works were reviewed several times so there were delays on completing the works. The reasons claimed by the contractor were: (i) the addition of metal detectors and crushers to the scope of works for the wet ash system, which had to be integrated into the procurement process to ensure proper functioning of the wet ash system, (ii) the amount of extra underground water discovered on site, and (iii) additional time required for clarification technical designs. The other issues encountered were also that the contractor was supplied with materials from local subcontractors (against specifications on the contract) and later on tended to have problems with fulfilling the responsibilities derived from the contract, in context of delivering proper invoices and payment processing from KEK. The implementation of some of the components such as Component E was delayed as a result of difficulties of the export permits from the Ministry of Environment and spatial planning. Parallel to the works, the efforts to get the necessary import permits, export contracts and usage permits for the various chemicals were commenced. The negotiations with other possible disposers and countries turned out to be very difficult because Kosovo was not a member of the Basel Convention. This problem had to be solved by having in place the bilateral agreements between Republic of Kosova (as country of origin of the hazard waste) and receiving countries like Belgium, Germany, Sweden and Bulgaria as most hazard waste is foreseen to be finally disposed in those countries. Export permits were granted by Ministry of Environment and Spatial planning in December while the bilateral agreements have been signed in February 2012 and then were 105 forwarded to respective authorities in the recipient Countries. It took a year, on the first time, and six months on the second time, for the export permits to be granted for the project. The works sometimes were delayed due to specific working conditions on ash dump, damaging twice faster spare parts of the equipment. This type of work required very intensive maintenance in order to follow with the working dynamic. KEK contracted a maintenance operator, for maintaining all the equipment of mining division but their service did not satisfy our equipment requirements. As a result, many times the excavators were out of use for several months. 106 Annex 8. Comments of Cofinanciers and Other Partners/Stakeholders N/A 107 Annex 9. List of Supporting Documents  Project Appraisal Document, May 15, 2006 (Report No: 35870-XK)  Project Paper on Clean-up of the Gasification Site – First Additional Financing, May 21, 2007 (Report No: 39802-XK)  Restructuring Paper of June 3, 2009  Project and Restructuring Paper of March 28, 2013 (Report No: 73115-XK)  Restructuring Paper of June 29, 2015 (Report No: RES19837)  Implementation Status Reports number 1 through 18  Mid-Term Review  Aide Memoires  Borrower’s Project Completion Report  World Bank’s Interim Strategy Note (ISN) for Kosovo  Law No. 05/L – 044 On The Environmentally Endangered Zone Of Obiliq And Its Surroundings, Republic of Kosovo, Assembly  Soil and Water Sampling and Analysis Program, GEOtest. August, 2014  Site Investigation, Vattenfall Europe Mining AG and Deutsche Montan Technologie GmbH. April, 2008  Inspection Panel Investigation Report, World Bank Inspection Panel. September, 2016 (Report No: 106658-XK)  Management Report And Recommendation, World Bank. October, 2016 (Report No: INSP/106658-XK)  Final Completion Report (2011 –2016) for MESP Monitoring Unit, Resettlement Action Plan for Shala Neighborhood of Hade Village, rePlan Inc. July, 2016 108 MAP 109