Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) (P118109) MN-Mining Infrastructure Investment Supp (P118109) (P118109) EAST ASIA AND PACIFIC | Mongolia | Energy & Extractives Global Practice | IBRD/IDA | Specific Investment Loan | FY 2011 | Seq No: 12 | ARCHIVED on 01-Jun-2017 | ISR28196 | Implementing Agencies: Ministry of Finance 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-2017 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 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  High  Substantial 6/1/2017 Public Disclosure Copy Page 1 of 11 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) (P118109) Implementation Status and Key Decisions Project implementation has progressed well since the last implementation support mission, held in September 2016, owing largely to significantly improved management of the MINIS Project Management Unit. Component 1 The Shuren Hydropower Plant and Flow Regulation of the Orkhon River and Construction of Reservoir Complex subprojects: Public consultations in Buryatia and the Irkutsk region of the Russian Federation were successfully conducted during the period March-May 2017. In total, 14 consultation meetings took place. Additional consultations in Mongolia on the TORs of studies for the two subprojects are planned for June-July 2017. Extension of the Baganuur Coal Mine subproject: the CIA of the subproject is being revised and should be available, together with the CIA for the Tavan Tolgoi Coal Mine, in July 2017. The studies for the Integrated Steel Complex and Synthetic Natural Gas subprojects are at advanced stage of implementation and should be completed, including public consultations, by September 30, 2017. Component 2 The knowledge transfer activities are being implemented satisfactorily and further strengthened capacity of the Ministry of Finance, Ministry of Environment and Tourism, Ministry of Energy, Ministry of Mining and Heavy Industry and other institutions in the areas of project preparation, contract management, and public-private partnership. Component 3 The three River Basin Administrations (RBA) - Umard, Galba and Altain Uvur - and River Basin Councils (RBC), supported by the project in the South Gobi region, function well and provide an excellent benchmark for RBAs and RBCs in the other regions of the country. The implementation of an Integrated Water Resources Management Plan for each of three RBAs is under way and should be completed by September 30, 2017. 6/1/2017 Public Disclosure Copy Page 2 of 11 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) (P118109) 6/1/2017 Public Disclosure Copy Page 3 of 11 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) (P118109) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  Substantial  Substantial Macroeconomic  --  Moderate  Moderate 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  Substantial Other  --  --  -- Overall  --  High  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 The FS and studies for the Baganuur mine have The FS and studies for been completed. The the Baganuur mine CIA study for the mine have been completed. has also been prepared The REA study was but it is now being also prepared but revised in response to Two Technical/financial needs to be revised. comments from NGOs. transactions Value understanding to prepare The FS and ESIA The FS and ESIA are ready for transactions lacking. studies for the Steel studies for the Steel tendering. Complex and Synthetic Complex and Synthetic Natural Gas Natural Gas subprojects subprojects are under are under implementation. implementation and should be completed by the project closing date. Date 30-Apr-2010 01-Nov-2016 22-May-2017 30-Sep-2017 6/1/2017 Public Disclosure Copy Page 4 of 11 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) (P118109) PHINDPDOTBL  Good practice and procedures established to prepare projects for public and private financing (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Achieved: Training on Achieved: Training on preparation of preparation of feasibility feasibility studies and studies and financial and financial and economic economic evaluation evaluation was offered was offered to Ministry to Ministry of Finance, of Finance, Ministry of Limited understanding of Ministry of Energy, Energy, Ministry of Good practice required studies, no Ministry of Environment Value Environment Green and procedures guidelines on economic Green Development Development and adopted. evaluation. 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 01-Nov-2016 22-May-2017 30-Jun-2016 Overall Comments Intermediate Results Indicators PHINDIRITBL  Direct project beneficiaries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 7,767.00 7,767.00 1,400.00 Date 30-Apr-2011 01-Nov-2016 22-May-2017 30-Jun-2016 6/1/2017 Public Disclosure Copy Page 5 of 11 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) (P118109) PHINDIRITBL  Female beneficiaries (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 38.70 38.70 30.00 PHINDIRITBL  Feasibility studies for infrastructure projects (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Ongoing: The FS study Ongoing: The FS study for the Baganuur coal for the Baganuur coal Complete mine has been mine has been feasibility Studies for priority projects completed. The FS completed. The FS studies for Value not available. studies for the Steel studies for the Steel ongoing Complex and Synthetic Complex and Synthetic infrastructure Natural Gas are under Natural Gas are under projects. implementation. implementation. Date 30-Apr-2011 01-Nov-2016 22-May-2017 30-Sep-2017 PHINDIRITBL  Rapid response to address issues impacting private investment (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Achieved: Five issues including need Achieved: Five issues assessment, 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 01-Nov-2016 22-May-2017 30-Jun-2016 6/1/2017 Public Disclosure Copy Page 6 of 11 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) (P118109) PHINDIRITBL  Training programs and events (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 99.00 99.00 10.00 Date 30-Apr-2011 01-Nov-2016 22-May-2017 30-Jun-2016 PHINDIRITBL  Conferences to promote investment opportunities (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target At least 5 6 workshops were 6 workshops were events over the Value none attended attended course of the project. Date 30-Apr-2011 01-Nov-2016 22-May-2017 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 Ongoing: A number of Ongoing: A number of training programs were training programs were Staff is well offered to the Ministry offered to the Ministry of trained to of 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 01-Nov-2016 22-May-2017 30-Sep-2017 PHINDIRITBL  Ability to manage groundwater strengthened (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Achieved: The RBAs Achieved: The RBAs are are adequately staffed, adequately staffed, have have become fully become fully operational operational and GW and GW management Building Insufficient management and and monitoring plans are capacity for resources/capacity to Value monitoring plans are under implementation. effective manage groundwater in under implementation. Groundwater monitoring groundwater Southern Mongolia. Groundwater wells in south Gobi are management. monitoring wells in completed and south Gobi are equipped. Moreover, the completed and monitoring system is 6/1/2017 Public Disclosure Copy Page 7 of 11 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) (P118109) equipped. Moreover, functioning and data is the monitoring system being collected through is functioning and data online telemetry for is being collected some remote locations through online and periodic telemetry for some downloading from the remote locations and other installed data periodic downloading loggers. Moreover, the from the other installed three RBCs have been data loggers. recently established and Moreover, the three staffed. RBCs have been recently established and staffed. Date 30-Apr-2011 01-Nov-2016 22-May-2017 31-Dec-2015 PHINDIRITBL  Promotion of appropriate organization structure for groundwater management established (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Achieved: Appropriate Achieved: Appropriate Development of organization structure organization structure the appropriate for the management of for the management of Preliminary organization organization the GW in three river the GW in three river Value structure was in place but structure for the basins, consisting of 3 basins, consisting of 3 not revised 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 01-Nov-2016 22-May-2017 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 01-Nov-2016 22-May-2017 30-Jun-2016 6/1/2017 Public Disclosure Copy Page 8 of 11 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) (P118109) PHINDIRITBL  Agreement to implement important recommendations from water resource pricing studies (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Achieved: Ministry of Achieved: Ministry of Environment and Environment and Tourism together with Water pricing Tourism together with the RBAs have recommendatio the RBAs have Water Resources Pricing implemented studies ns are well Value implemented studies on studies are finalized on water pricing and adapted and water pricing and their their recommendations enforced by the recommendations have have been adapted RBAs been adapted and and enforced by the enforced by the RBAs. RBAs. Date 30-Apr-2014 01-Nov-2016 22-May-2017 30-Jun-2016 PHINDIRITBL  New Institutional structure financially sustainable (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Budget provisions were Budget provisions were Develop the made for transferring made for transferring fiscal budget financing of RBAs and financing of RBAs and Value No plan plan for the RBCs from the AF TF RBCs from the AF TF to RBAs and to the central budget in the central budget in the RBCs the course of 2017. course of 2017. Date 30-Apr-2014 30-Nov-2016 22-May-2017 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 01-Nov-2016 22-May-2017 30-Jun-2016 Overall Comments Data on Financial Performance 6/1/2017 Public Disclosure Copy Page 9 of 11 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) (P118109) 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 15.98 6.77 64% P118109 TF-16382 Effective USD 4.05 4.05 0.00 3.29 0.76 81% 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-2017 P118109 TF-16382 Effective 28-Mar-2014 30-Apr-2014 30-Apr-2014 30-Sep-2016 30-Sep-2017 Cumulative Disbursements Restructuring History Level 2 Approved on 27-Jul-2016 Related Project(s) 6/1/2017 Public Disclosure Copy Page 10 of 11 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) (P118109) P145439-MN-Mining Infrastructure Investment Supp (P118109) 6/1/2017 Public Disclosure Copy Page 11 of 11