Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) MN-Mining Infrastructure Investment Supp (P118109) EAST ASIA AND PACIFIC | Mongolia | Energy & Extractives Global Practice | IBRD/IDA | Specific Investment Loan | FY 2011 | Seq No: 10 | ARCHIVED on 20-Apr-2016 | ISR23138 | Implementing Agencies: Key Dates Key Project Dates Bank Approval Date:10-May-2011 Effectiveness Date:20-Nov-2011 Planned Mid Term Review Date:31-Oct-2013 Actual Mid-Term Review Date:31-Oct-2013 Original Closing Date:30-Sep-2016 Revised Closing Date:30-Sep-2016 Project Development Objectives MN-Mining Infrastructure Investment Supp (P118109) Project Development Objective (from Project Appraisal Document) To facilitate investments in infrastructure to support mining and downstream processing activities, regardless of funding source, and to build local capacity to prepare and transact infrastructure projects. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Name Support for Infrastructure Investments:(Cost $18.11 M) Capacity Building and Knowledge Transfer:(Cost $2.47 M) Strengthening Groundwater Management:(Cost $5.33 M) Project Management:(Cost $1.19 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Moderately Satisfactory  Moderately Satisfactory Overall Implementation Progress (IP)  Moderately Satisfactory  Moderately Satisfactory Overall Risk Rating  Substantial  Substantial 4/20/2016 Public Disclosure Copy Page 1 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) Implementation Status and Key Decisions The project has been making steady progress regarding the preparation of the assessment studies for the six priority sub-projects which include: (i) Orkhon Gobi Water (OGW); (ii) Shuren Hydropower plant (SHP); (iii) Integrated Steel Complex with Infrastructure in the central region of Darkhan- Selenge (SC); (iv) Extension of Coal Mine "Baganuur" LLC. (BCM); (v) a Rural and Industrial Water Supply Scheme in the South Gobi region (RIWS); and (vi) Synthetic Natural Gas Plant (SNG); and some other pre-feasibility studies. No infrastructure investments are eligible for financing under this project. The Project is playing a significant role in building the capacity of Ministry of Environment Green Development and Tourism, Ministry of Finance, Ministry of Energy, Ministry of Mining, Ministry of Industry and other institutions in the areas of project preparation, contract management, public- private partnership, water resources management, iron ore processing and the development of new transactions. Good progress has been made towards strengthening capacity in groundwater management. The three newly established River Basin Administrations as well as River Basin Councils of South Gobi Region are well staffed and becoming functional and the groundwater monitoring system started to function and data is being collected. 4/20/2016 Public Disclosure Copy Page 2 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  Moderate  Moderate Macroeconomic  --  Moderate  Moderate 4/20/2016 Public Disclosure Copy Page 3 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) Sector Strategies and Policies  --  Moderate  Moderate Technical Design of Project or Program  --  Moderate  Moderate Institutional Capacity for Implementation and Sustainability  --  Substantial  Substantial Fiduciary  --  Moderate  Moderate Environment and Social  --  Substantial  Substantial Stakeholders  --  High  High Other  --  --  -- Overall  --  Substantial  Substantial Results Project Development Objective Indicators PHINDPDOTBL  At least two key infrastructure assets ready for tender (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target FSs and ESIAs for the five priority projects financed by the project FSs and ESIAs for the are all at various stages six priority projects of preparation. The most financed by the project advanced are the FS are all at various and CIA for Baganuur stages of preparation. Coal Mine which are The most advanced both under Two Technical/financial are the FS and CIA for implementation. The transactions Value understanding to prepare Baganuur Coal Mine ESIA and FS for the are ready for transactions lacking. which are both under Synthetic Natural Gas tendering. implementation. The have started and for the TORs and procurement Steel Complex are at for the studies for the final stage to be other 5 subprojects are awarded. Moreover, The at various stages of TORs and procurement preparation. for the studies for the other 2 subprojects are at various stages of preparation Date 30-Apr-2010 15-Nov-2015 31-Mar-2016 31-Dec-2015 PHINDPDOTBL  Good practice and procedures established to prepare projects for public and private financing (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Achieved through the Achieved through the Limited understanding of training offered to training offered to Good practice required studies, no Value Ministry of Finance, Ministry of Finance, and procedures guidelines on economic Ministry of Energy, Ministry of Energy, adopted. evaluation. Ministry of Environment Ministry of Environment 4/20/2016 Public Disclosure Copy Page 4 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) Green Development Green Development and and Tourism. Ministry Tourism. Ministry of of Industry and Ministry Industry and Ministry of of Mining, regarding Mining, regarding the the preparation of preparation of feasibility feasibility studies and studies and financial and financial and economic economic evaluation. evaluation. Date 30-Apr-2011 15-Nov-2015 31-Mar-2016 30-Jun-2016 Overall Comments The project has made good progress towards building the capacity of Mongolia in the preparation of projects for public and private financing. This had been possible through the on-job training for the various involved ministries in preparing the FS and ESIAs for a number of priority projects. Progress related to the preparation of two transaction is in progress as the preparation of the FS and CIA for the expansion of Bagauur Coal mine is on its final stage while that of the SNG has just started and expected to be followed by the Steel Complex FS and ESIA preparation shortly. Global Environmental Objective Indicators Overall Comments Intermediate Results Indicators PHINDIRITBL  Direct project beneficiaries (Number, Core) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 5685.00 7767.00 1400.00 Date 30-Apr-2011 15-Nov-2015 31-Mar-2016 30-Jun-2016 PHINDIRITBL  Female beneficiaries (Percentage, Core Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 38.10 38.70 30.00 4/20/2016 Public Disclosure Copy Page 5 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) PHINDIRITBL  Feasibility studies for infrastructure projects (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Ongoing. Feasibility Ongoing. Feasibility Study for one Complete Study for one transaction is under feasibility Studies for priority projects transaction is under finalization, one has studies for Value not available. finalization while other been just awarded, one ongoing 4 are soon to be under is under award and the infrastructure procurement. other two are under projects. procurement. Date 30-Apr-2011 15-Nov-2015 31-Mar-2016 30-Jun-2016 Comments This target is lagging behind and can not be achieved within the current prevailing closing date. PHINDIRITBL  Rapid response to address issues impacting private investment (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Target Achieved. Five issues including need Target Achieved. Five assessment, issues including need information gathering, assessment, information viability and economic gathering, viability and analysis, proper economic analysis, preparation and public proper preparation and Technical/financial support Rapid response consultation were public consultation were Value to address issues not to at least five addressed in the addressed in the course available. issues. course of the priority of the priority sub- sub-projects projects identification identification and the and the development of development of the the pre-feasibility and pre-feasibility and the the feasibility studies, feasibility studies, the the CIAs and ESIAs. CIAs and ESIAs. Date 30-Apr-2011 15-Nov-2015 31-Mar-2016 30-Jun-2016 PHINDIRITBL  Training programs and events (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 93.00 99.00 10.00 Date 30-Apr-2011 15-Nov-2015 31-Mar-2016 30-Jun-2016 4/20/2016 Public Disclosure Copy Page 6 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) PHINDIRITBL  Conferences to promote investment opportunities (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target At least 5 6 workshops were events over the Value none 6 workshops were held attended course of the project. Date 30-Apr-2011 15-Nov-2015 31-Mar-2016 30-Jun-2016 PHINDIRITBL  Consultants provide hands-on training and help administer government-financed projects & PPP concessions (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target A number of training A number of training programs were offered programs were offered Staff is well to the Ministry of to the Ministry of trained to Finance and other Finance and other administer No concessions to Value Ministries in the Ministries in the government- administer. preparation and preparation and financed processing of seven processing of seven projects & PPP PPP transactions since PPP transactions since concessions 2011. 2011. Date 30-Apr-2011 15-Nov-2015 31-Mar-2016 30-Jun-2016 PHINDIRITBL  Ability to manage groundwater strengthened (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Substantially Achieved: Achieved: The RBAs are The RBAs are adequately staffed, have adequately staffed, become fully operational have become fully and GW management operational and GW and monitoring plans are management and under implementation. monitoring plans are Groundwater monitoring under implementation. wells in south Gobi are Groundwater completed and Building Insufficient monitoring wells in equipped. Moreover, the capacity for resources/capacity to south Gobi are monitoring system is Value effective manage groundwater in completed and functioning and data is groundwater Southern Mongolia. equipped. Moreover, being collected through management. the monitoring system online telemetry for is functioning and data some remote locations is being collected and periodic through online downloading from the telemetry for some other installed data remote locations and loggers. Moreover, the periodic downloading three RBCs have been from the other installed recently established and data loggers. staffed. Date 30-Apr-2011 15-Nov-2015 31-Mar-2016 31-Dec-2015 4/20/2016 Public Disclosure Copy Page 7 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) PHINDIRITBL  Promotion of appropriate organization structure for groundwater management established (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Completed. Completed. Appropriate Appropriate Development of organization structure organization structure the appropriate for the management of Preliminary organization for the management of organization the GW in three river Value structure was in place but the GW in three river structure for the basins, consisting of 3 not revised basins, consisting of 3 management of RBAs and 3 RBCs, in RBAs and 3 RBCs, in the GW in three South Gobi was South Gobi was river basins developed. developed. Date 30-Apr-2011 15-Nov-2015 31-Mar-2016 31-Dec-2013 PHINDIRITBL  Establishment of 3 RBA in Southern Gobi Region (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3.00 3.00 3.00 Date 30-Apr-2011 15-Nov-2015 31-Mar-2016 30-Jun-2016 PHINDIRITBL  Agreement to implement important recommendations from water resource pricing studies (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Water pricing Water resource pricing Water resource pricing recommendatio studies are under studies are under Water Resources Pricing ns are well Value process of process of studies are finalized adapted and implementation by implementation by enforced by the MoEGDT and RBAs MoEGDT and RBAs RBAs Date 30-Apr-2014 15-Nov-2015 31-Mar-2016 30-Jun-2016 4/20/2016 Public Disclosure Copy Page 8 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) PHINDIRITBL  New Institutional structure financially sustainable (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The development of Develop the The fiscal budget plan fiscal budget plan is fiscal budget has been approved and Value No plan underway for the plan for the will be in effect starting established RBAs and RBAs and October 1, 2016. the future RBCs. RBCs Date 30-Apr-2014 15-Nov-2015 31-Mar-2016 31-Dec-2014 PHINDIRITBL  Improved transparency and public awareness of groundwater resources and the impact of water use and abstraction (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Completed as more Completed as more than Organize than 3 Public 3 Public awareness groundwater awareness workshop workshop were Value No plan public were organized organized between awareness between September 17 September 17 and 26, workshop. and 26, 2014. 2014. Date 30-Apr-2014 15-Nov-2015 31-Mar-2016 30-Jun-2016 Overall Comments The project has achieved the majority of its intermediate performance indicators (11 out of 13) the remaining targets are being achieved but the extension of the closing date is necessary to ensure the completion of the feasibility studies for all identified priority sub-projects. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P118109 IDA-48880 Effective USD 25.00 25.00 0.00 11.34 11.71 45% P118109 TF-16382 Effective USD 4.05 4.05 0.00 2.47 1.58 61% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P118109 IDA-48880 Effective 10-May-2011 24-May-2011 20-Nov-2011 30-Sep-2016 30-Sep-2016 P118109 TF-16382 Effective 28-Mar-2014 30-Apr-2014 30-Apr-2014 30-Sep-2016 30-Sep-2016 Cumulative Disbursements 4/20/2016 Public Disclosure Copy Page 9 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) Restructuring History There has been no restructuring to date. Related Project(s) P145439-Mining Infrastructure Investment Support - Additional Financing 4/20/2016 Public Disclosure Copy Page 10 of 10