Public Disclosure Copy The World Bank Implementation Status & Results Report Ust-Kamenogorsk Environmental Remediation Project (P078342) Ust-Kamenogorsk Environmental Remediation Project (P078342) EUROPE AND CENTRAL ASIA | Kazakhstan | Environment & Natural Resources Global Practice | IBRD/IDA | Specific Investment Loan | FY 2007 | Seq No: 18 | ARCHIVED on 29-Dec-2016 | ISR26566 | Implementing Agencies: Committee of Water Resources Key Dates Key Project Dates Bank Approval Date:01-Feb-2007 Effectiveness Date:15-Dec-2008 Planned Mid Term Review Date:28-Mar-2012 Actual Mid-Term Review Date:16-Mar-2012 Original Closing Date:30-Mar-2013 Revised Closing Date:31-Dec-2016 Project Development Objectives Project Development Objective (from Project Appraisal Document) The project has two development objectives: (i) Prevent the groundwater contamination plume's further migration towards the residential areas, the city's sources of drinking water supply and eventually into the Irtysh River; and (ii) Strengthen institutional mechanisms for groundwater quality monitoring to enable control of ongoing groundwater pollution from local municipal and industrial sources. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Comp. A. Containment of High-priority Sources of Groundwater Contamination.:(Cost $22.00 M) Comp. B. Remediation of Current Contaminated Groundwater Sites.:(Cost $13.00 M) Comp. C. Project Management and Monitoring:(Cost $0.60 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Moderately Unsatisfactory  Moderately Unsatisfactory Overall Implementation Progress (IP)  Moderately Unsatisfactory  Moderately Unsatisfactory Overall Risk Rating  High  High 12/29/2016 Page 1 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Ust-Kamenogorsk Environmental Remediation Project (P078342) Implementation Status and Key Decisions The following key activities have been completed thus far under the Project: (a) site investigation programs; (b) preparation of detailed designs for remediation of six industrial waste dumps, the seventh site was earlier remediated with public funding when the design work for the other sites was carried out; (c) supply of leak detection and laboratory equipment to local stakeholders; and (d) implementation of a water leakage reduction program in Ust-Kamenogorsk. The activities (a) and (c) were financed from European Commission co-funding and were completed satisfactorily before its closing date in 2010. The other two activities have been financed from the counterpart financing from Kazakhstan. Civil works for the physical remediation works for the high priority industrial waste dumps have started as of April 2013. Works at the Kazzinc and the Power Plant dumps under the Project are complete and have been handed-over. The remediation of the capacitor sludge pond also was completed in December 2015. The remediation of the waste dumps at Titanium Magnesium Plant finally started and the remediation is 80% complete. The tender for the last historic industrial waste dump UMZ dump no 6 has been completed but the contract cannot be signed due to Closing of the Loan. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  Moderate  Moderate Macroeconomic  --  Substantial  Substantial Sector Strategies and Policies  --  Low  Low Technical Design of Project or Program  --  Moderate  Moderate Institutional Capacity for Implementation and Sustainability  --  High  High Fiduciary  --  Moderate  Moderate Environment and Social  --  Substantial  Substantial Stakeholders  --  Substantial  Substantial Other  --  High  High Overall  --  High  High Results Project Development Objective Indicators PHINDPDOTBL  Reduce level of heavy metals & other hazardous pollutants in groundwater, thereby reducing risk of contamination of city's soil & groundwater system, drinking water wells, & surface water of Irtysh. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Based on the detailed one No exceedings of No exceedings of Level of heavy year monitoring campaign, maximum allowable maximum allowable metals pollution there were no exceedings concentrations have concentrations have in groundwater Value of maximum allowable been detected, neither been detected near the reduced to concentrations have been local Kazakhstan drinking water well-field, below detected at the drinking water neither local Kazakhstan international Oktyabrskiy drinking water Maximum Allowable drinking water Maximum limits. 12/29/2016 Page 2 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Ust-Kamenogorsk Environmental Remediation Project (P078342) well nor the wells Concentrations Allowable surrounding the well. (MACs), nor the MACs Concentrations (MACs), Neither local Kazakhstan specified by the nor the MACs specified drinking water Maximum International by the International Allowable Concentrations Guidelines for drinking Guidelines for drinking (MACs), nor the MACs water quality water quality specified by the (established by the (established by the International Guidelines for World Health World Health drinking water quality Organization) thus, the Organization) thus, the (established by the World groundwater in groundwater in Health Organization) thus, Oktyabrskiy well-field Oktyabrskiy well-field the groundwater in and nowadays is not nowadays is not near Oktyabrskiy well-field contaminated. contaminated. nowadays is not contaminated. The concentration of The concentration of harmful substances in harmful substances in the groundwater is the groundwater is significantly high in the higher in the close close proximity to the proximity to the territory territory of the Central of the Central Industrial Industrial Complex and Complex and reduces gradually reduces afar, moving away from the which is proven by Central Industrial results obtained from Complex. This is is “Oskemen-Vodokanal” proven by results operating wells and the obtained from 4th group of monitoring “Oskemen-Vodokanal” wells.(further away drinking water wells and from the Central the 4th group of Industrial Complex) monitoring wells.(which are further away from Exceedings of the Central Industrial Maximum Allowable Complex) Concentrations in the groundwater aquifer It was based on the were found, especially detailed findings of the for metals and groundwater monitoring, inorganics, in their that the groundwater majority the obtained pumping and treatment results showed that system was cancelled. harmful concentrations The pollution in the even exceeded the groundwater and the WHO’s Guidelines migration of the pollution Values, which are less was not severe enough strict than RoK MACs; to justify such investment and Additionally, there are operating costs of such occurrences with system, specifically Cadmium and Thallium since the risks of in hydroposts (in the contamination of the River) in December. drinking water wells and This matter needs the Irtysh river was further thorough sufficiently low as the investigation in second pollution was more monitoring round to immobilized near the bring light on the Central Industrial situation with such Complex and did not hazardous element migrate through the groundwater system towards the drinking water wells and Irtysh river. However 12/29/2016 Page 3 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Ust-Kamenogorsk Environmental Remediation Project (P078342) continued groundwater monitoring is required as there are exceedences of pollutants in the groundwater. For the key indicator under the Project, heavy metals, the results of the second monitoring campaign showed that Boron was the only metal which showed insignificant increases in the group of the 4th monitoring wells. The third monitoring campaign found only increased quantities of Selenium Date 30-Nov-2007 04-Oct-2016 30-Dec-2016 31-Dec-2016 Comments Because the purpose of the project is to prevent the contamination plume's further migration towards residential areas, the city's drinking water supply and eventually the Irtysh river as the first important part of the PDO, when the one-year monitoring results did not show serious exceedence of the groundwater samples taken from the well field (8 operating wells and 2 monitoring wells located nearby), it was jointly decided with the GoK to cancel the activity on groundwater pump and treatment system PHINDPDOTBL  Contaminated land managed or dump sites closed under the project (Hectare(Ha), Core) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 35.00 31.50 45.50 Date 15-Dec-2008 04-Oct-2016 30-Dec-2016 31-Dec-2016 Comments More precise measurements were done. Final values for contaminated land which was managed under the Project is as follows: * Capacitor Sludge Pond: 6.4 hectares- remediation completed * Heat and Power Plant Waste Dump nr 1, waste dump of the Experimental Lead-Zinc production and Lead-Zinc Plant Terricone no 6 19.5 hectares and remediation completed * Industrial waste dump no 1 at the Titanium Magnesium Plan, 7 hectares and completed for 80% (5.6 hectares) * Waste Dump No 6 of the Ulba Metallurgical Plan, 12 hectares Remediation could not start due to lack of time before Closing Date even when tender was completed and contract award for remediation submitted to WB in September 2016 * Historic Ash Dump 2a/2b of the Ust-Kamenogorsk Heat and Power Plant were remediated during the detailed design phase of the Project. 12/29/2016 Page 4 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Ust-Kamenogorsk Environmental Remediation Project (P078342) PHINDPDOTBL  Preventing further pollution of the local underground and aquifer through containment of identified high-risk waste dumps and slurry ponds located in the city area (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 5 identified high risk waste dumps and slurry ponds contained through stabilization, dewatering and covering. 1 identified high risk waste dump for which 7 identified high containment and risk waste remediation works are dumps and No high risk waste dumps completed for 80%. 1 slurry ponds Value and slurry ponds identified -- identified high waste contained for containment. dump (radioactive through historic Ulba Metturgical stabilization, Plant waste dump nr 6) dewatering and for which the contract covering. award recommendation has been received but contract could not be signed due to insufficient construction time until project closure. Date 30-Nov-2007 11-Mar-2015 30-Dec-2016 31-Dec-2016 PHINDPDOTBL  Groundwater quality monitoring system is established and functioning and local institutions are capable of sampling and sample analysis (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Three (3) phases of long term groundwater monitoring program have been executed and relevant reports received. the Sampling has been undertaken by Groundwater local sampling company quality and the local drinking monitoring water company No groundwater quality system is Vodokanal carried out all monitoring system established and the sample analysis with Value established and -- functioning and their new laboratory functioning in local local institutions which was rehabilitated institutions are capable of under the Project to sampling and ensure that they could sample measure heavy metals analysis. and organic chemicals in the lab to control the quality of drinking water and sewage in the city. Local institutions are capable of sampling 12/29/2016 Page 5 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Ust-Kamenogorsk Environmental Remediation Project (P078342) analysis based on new modern lab equipment and international training and joint execution first phases of groundwater monitoring program Date 15-Dec-2008 11-Mar-2015 30-Dec-2016 31-Dec-2016 PHINDPDOTBL  Direct project beneficiaries (Number, Core) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 300,000.00 207,000.00 300,000.00 Date 15-Dec-2008 04-Oct-2016 30-Dec-2016 31-Dec-2016 Comments The beneficiaries were reduced proportionally to the amount of contaminated land remediated under the Project, which 69% of the total amount PHINDPDOTBL  Female beneficiaries (Percentage, Core Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 50.00 50.00 50.00 Overall Comments Intermediate Results Indicators 12/29/2016 Page 6 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Ust-Kamenogorsk Environmental Remediation Project (P078342) PHINDIRITBL  Eliminating pollution inflitration into the groundwater from these sites (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Verification of effectiveness of the containment through technical inspections of the structures has been done. Verification of effectiveness of The technical the inspections were containment Value No target identified -- undertaken as part of through the formal acceptance technical procedures for the inspections of completion of the the structures. remediation works for the five dumps remediated. Date 30-Nov-2007 11-Mar-2015 30-Dec-2016 31-Dec-2016 PHINDIRITBL  Capacity of local institutions to implement and manage monitoring program has been increased. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Regular monitoring Regular monitoring Implementation program now underway program now underway Current monitoring of monitoring and implementation of and implementation of Value capabilities are program is the monitoring program the monitoring program inadequate. according to according to the according to the specifications. specifications specifications Date 30-Nov-2007 04-Oct-2016 30-Dec-2016 31-Dec-2016 Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P078342 IBRD-48480 Effective USD 24.29 17.29 7.00 5.45 11.84 32% P078342 TF-58070 Closed USD 4.96 3.74 1.23 3.47 0.00 93% 12/29/2016 Page 7 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Ust-Kamenogorsk Environmental Remediation Project (P078342) Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P078342 IBRD-48480 Effective 01-Feb-2007 02-Feb-2008 15-Dec-2008 30-Mar-2013 31-Dec-2016 P078342 TF-58070 Closed 16-Jan-2008 16-Jan-2008 15-Dec-2008 28-Feb-2010 31-Aug-2010 Cumulative Disbursements Restructuring History Level Approved on 26-Mar-2013 ,Level 2 Approved on 22-Dec-2014 ,Level 2 Approved on 13-Mar-2015 ,Level 2 Approved on 22-Dec-2015 Related Project(s) There are no related projects. 12/29/2016 Page 8 of 8 Public Disclosure Copy