The World Bank Report No: ISR12903 Implementation Status & Results Mongolia MN-Mining Infrastructure Investment Supp (P118109) Public Disclosure Copy Operation Name: MN-Mining Infrastructure Investment Supp (P118109) Project Stage: Implementation Seq.No: 5 Status: ARCHIVED Archive Date: 22-Dec-2013 Country: Mongolia Approval FY: 2011 Product Line: IBRD/IDA Region: EAST ASIA AND PACIFIC Lending Instrument: Specific Investment Loan Implementing Agency(ies): Ministry of Finance Key Dates Board Approval Date 10-May-2011 Original Closing Date 30-Sep-2016 Planned Mid Term Review Date 31-Oct-2013 Last Archived ISR Date 24-Jun-2013 Effectiveness Date 20-Nov-2011 Revised Closing Date 30-Sep-2016 Actual Mid Term Review Date 31-Oct-2013 Project Development Objectives 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? Yes No Component(s) Component Name Component Cost Support for Infrastructure Investments 19.69 Capacity Building and Knowledge Transfer 1.45 Strengthening Groundwater Management 3.23 Project Management 0.63 Overall Ratings Public Disclosure Copy Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Implementation Status Overview The MINIS project has been making steady progress. To facilitate infrastructure investments, the Project Steering Committee (PSC) has updated its list of priority projects which includes: (i) Flow regulation of the Orkhon river and construction of water reservoir complex; (ii) Shuren Hydropower plant; (iii) Integrated Steel Complex with Infrastructure in the central region of Darkhan-Selengea; and (iv) Extension of Coal Mine "Baganuur" LLC. Furthermore, it has just approved the development of full feasibility studies for a number of new projects including: (i) a Rural and Industrial Water Supply Scheme in the South Gobi region; (ii) a Substitute Natural Gas Plant (SNG); (iii) Extension of the Baganuur Coal Mine; and Page 1 of 6 The World Bank Report No: ISR12903 some other pre-feasibility studies. The implementation of pre-feasibility studies is underway for the first three priority projects and the studies are expected to be completed between January and June 2014. With regard to building local capacity, the Project is playing a significant role in building the capacity of Ministry of Environment and Green Development (MEGD), Ministry of Finance Public Disclosure Copy (MoF), Ministry of Economic Development (MED), Ministry of Energy (MoE), Ministry of Mining (MoM), Ministry of Industry and Agriculture (MIA) and other institutions in the areas of project preparation, contract management, public-private participation partnerships and the development of new transactions. Around 1807 person-days of training have been already conducted to draw from the experience of developed and developing countries. Australian bilateral aid (AusAID) is interested in expanding the scope of component III (Strengthening Groundwater Management) and the Administration Agreement was signed in June 2013. An additional financing grant agreement of $4.2 million is under processing. The additional financing objective is to build the local capacity in groundwater monitoring and management and to promote the development of three River Basin Administrations including North Gobi hills – Khalkh mid steppe (basin 17), Galba-Uush-Dolood Gobi (basin 18) and Altai south Gobi (basin 20). Locations Country First Administrative Division Location Planned Actual Mongolia Not Entered Omnogovi Aymag Mongolia Not Entered Dundgovi Aymag Mongolia Not Entered Dornogovi Aymag Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target At least two key infrastructure assets ready for Text Value Technical/financial None is ready for tender yet. One transaction ready for tender understanding to prepare tender. transactions lacking. Date 30-Apr-2010 30-Nov-2013 30-Jun-2015 Comments Pre-feasibility studies (phase 2) for 3 proposals including Shuren Hydropower, Orkhon Public Disclosure Copy Gobi Water supply Scheme and Darkhan Steel Complex started are ongoing. Good practice and procedures established to Text Value Limited understanding of Capacity is being built through Good practice and prepare projects for public and private financing required studies, no training and hiring procedures adopted. guidelines on economic consultants. evaluation. Date 30-Apr-2011 30-Nov-2013 30-Jun-2016 Page 2 of 6 The World Bank Report No: ISR12903 Comments Viability of the above mentioned three projects will be determined at the end of phase 2 (June 2014). Public Disclosure Copy Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Direct project beneficiaries Number Value 0.00 1807.00 2000.00 Date 30-Apr-2011 30-Nov-2013 30-Jun-2016 Comments Training achieved in person. 1807 person.day training This Core Indicator was day. have been already performed added in November 2012 and in Mongolia and abroad. the targets were established Training covered areas like based on the revised training project appraisal and plan in May 2013. riskmanagement, design and operation of hydropower plants, steel processing, water supply, dams safety and construction, project financing and PPP and road maintenance. Female beneficiaries Percentage Value 0.00 40.00 30.00 Sub Type Supplemental Feasibility studies for infrastructure projects Text Value Studies for priority projects Pre-feasibility studies for 3 complete feasibility studies for not available. priority projects are ongoing ongoing infrastructure projects. Date 30-Apr-2011 30-Nov-2013 30-Jun-2016 Comments Rapid response to address issues impacting Text Value Technical/financial support to Methodology and criteria Rapid response to at least private investment address issues not available. prioritization on private one issue. Public Disclosure Copy investment have been agreed. Viability of projects determination is underway while pre-feasibility studies on private investment are ongoing. Date 30-Apr-2011 30-Nov-2013 30-Jun-2016 Page 3 of 6 The World Bank Report No: ISR12903 Comments It's too early in implementation for measurable results. Public Disclosure Copy Training programs and events Number Value 0.00 40.00 10.00 Date 30-Apr-2011 30-Nov-2013 30-Jun-2016 Comments More than 40 Training events 10 total programs and events took place in Mongolia, the held over the life of the USA, UK, Singapore, project. Canada, Norway, South Korea, Australia, China, India and Philippines. Conferences to promote investment Text Value none 2 held Up to 5 over the course of the opportunities project. Date 30-Apr-2011 30-Nov-2013 30-Jun-2016 Comments Two conferences were held addressing the implementation of Mongolia’s infrastructure needs in general with emphasis on the mining sector development. Consultants provide hands-on training and help Text Value No concessions to administer. No project is under Staff is well trained to administer government-financed projects & implementation yet. administer government- PPP concessions financed projects & PPP concessions Date 30-Apr-2011 30-Nov-2013 30-Jun-2016 Comments It's too early in implementation for measurable results. Ability to manage groundwater strengthened Text Value Insufficient resources/capacity In progress Building capacity for effective to manage groundwater in groundwater management. Southern Mongolia. Public Disclosure Copy Date 30-Apr-2011 30-Nov-2013 30-Jun-2016 Comments The institutional arrangements and staffing of the department and divisions for groundwater management in the Ministry of Environment and Green Development have been developed. Key supporting staff have been recruited. Regulations were Page 4 of 6 The World Bank Report No: ISR12903 approved and RBA heads havebeen appointed. RBA staff TORs have been developed. Selection will start Public Disclosure Copy soon. Data on Financial Performance (as of 31-Oct-2013) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P118109 IDA-48880 Effective 10-May-2011 24-May-2011 20-Nov-2011 30-Sep-2016 30-Sep-2016 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P118109 IDA-48880 Effective XDR 16.00 16.00 0.00 2.40 13.60 15.00 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation -Following the signing of the Administration Agreement between the AusAID and the Bank, MINIS project will be restructured and the Additional Financing Agreement will be prepared. Restructuring History Page 5 of 6 The World Bank Report No: ISR12903 There has been no restructuring to date. Related Projects Public Disclosure Copy P145439-Mining Infrastructure Investment Support - Additional Financing Public Disclosure Copy Page 6 of 6