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 and Mining Global Practice | IBRD/IDA | Specific Investment Loan | FY 2011 | Seq No: 7 | ARCHIVED on 10-Dec-2014 | ISR16178 | Implementing Agencies: Key Dates Key Project Dates Board 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  Satisfactory  Satisfactory Overall Implementation Progress (IP)  Moderately Satisfactory  Moderately Satisfactory Overall Risk Rating  --  Substantial 12/10/2014 Public Disclosure Copy Page 1 of 9 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. The Project Steering Committee (PSC) has updated the list of priority sub-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-Selenge; and (iv) Extension of Coal Mine "Baganuur" LLC.; (v) a Rural and Industrial Water Supply Scheme in the South Gobi region; (vi) Synthetic Natural Gas Plant (SNG); and some other pre-feasibility studies. The pre-feasibility study for Shuren Hydropower sub-project has been finalized. Similarly, the preparatory study for Orkhon Gobi river flow regulation sub-project has also been finalized. The determination of viable dam location will not be determined at this phase, but rather would be part of a feasibility study (FS) phase. The FSs as well as the ESIAs for both subprojects are ready to be launched. The FS contracts for the Extension of Coal Mine “Baganuur” LLC has been signed; the sampling and testing of iron ore required for the launching of the feasibility study for the Integrated Steel Plant Complex with infrastructure in central region of Darkhan-Selenge region have been finalized. 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 (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 partnership, water resources management, iron ore processing and the development of new transactions. Around 4905 person-days of training have been already conducted to draw from the experience of developed and developing countries. As most of the ESIA will be launched very soon, training in stakeholders and public consultation and disclosure is being designed to be implemented soonest. - The next supervision mission is scheduled for April 2015. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  --  Substantial Macroeconomic  --  --  Moderate 12/10/2014 Public Disclosure Copy Page 2 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) Sector Strategies and Policies  --  --  Moderate Technical Design of Project or Program  --  --  Moderate Institutional Capacity for Implementation and Sustainability  --  --  Substantial Fiduciary  --  --  Moderate Environment and Social  --  --  Substantial Stakeholders  --  --  Moderate Other  --  --  -- Overall  --  --  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 Through capacity building and training to the MED, MoE and MoF, 5 PPP transactions have Two Technical/financial None is ready for been signed in 2014. transactions Value understanding to prepare tender yet. They cover wide range are ready for transactions lacking. of sectors including tendering. power generation, roads, metal processing and water supply. Date 30-Apr-2010 29-May-2014 05-Dec-2014 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 The MED and MoF have Limited understanding of benefitted from the Capacity is being built Good practice required studies, no prepartation process Value through training and and procedures guidelines on economic and training and 5 PPP hiring adopted. evaluation. projects have already been awarded in 2014. Date 30-Apr-2011 29-May-2014 05-Dec-2014 30-Jun-2016 Overall Comments Under the project, six priority projects are under processing out of which one feasibility study contract has been signed, ToRs for three have been cleared and the remaining 2 ToRs are being finalized by the consultants and the working groups.Stakeholders like MED, MoF, MoE and MEGD have also received significant training that enabled the viability 12/10/2014 Public Disclosure Copy Page 3 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) determination of 3 priority projects and being able to manage the preparation of feasibility studies and the associated ESIAs leading to readiness of some sub-projects to be transacted for implementation. 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 3256.00 4905.00 1400.00 Date 30-Apr-2011 29-May-2014 05-Dec-2014 30-Jun-2016 Comments Completed. 4905 person.days training have been already performed in Mongolia and abroad. Training covered areas like project appraisal and risk management, design and operation of hydropower plants, steel processing, water supply, dams safety and construction, project financing and PPP and road maintenance. Target for FY2014 was 900. PHINDIRITBL  Female beneficiaries (Percentage, Core Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 36.00 36.41 30.00 Date 30-Apr-2011 29-May-2014 05-Dec-2014 30-Jun-2016 PHINDIRITBL  Feasibility studies for infrastructure projects (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Pre-feasibility study for one transaction is Pre-feasibility studies complete, FS for one Complete for 3 priority projects transaction has been feasibility are being finalized and Studies for priority projects contracted, three FSs studies for Value the ToRs for the not available. are ready for tendering ongoing feasibility studies have and the FSs ToRs for infrastructure been prepared forthe 6 the remaining 2 sub- projects. sub-projects. projects are under finalization. 12/10/2014 Public Disclosure Copy Page 4 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) Date 30-Apr-2011 29-May-2014 05-Dec-2014 30-Jun-2016 PHINDIRITBL  Rapid response to address issues impacting private investment (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Four issues including Methodology and need assessment, criteria prioritization on information gathering, private investment viability and economic have been agreed. analysis and proper Technical/financial support Rapid response Viability of projects preparation were Value to address issues not to at least five determination is addressedin the course available. issues. underway while pre- of the priority sub- feasibility studies on projects identification private investment are and the development of being finalized. the pre-feasibility and/or the feasibility studies. Date 30-Apr-2011 29-May-2014 05-Dec-2014 30-Jun-2016 Comments The target for FY 14 is 3 issues to be addressed. PHINDIRITBL  Training programs and events (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 47.00 62.00 10.00 Date 30-Apr-2011 29-May-2014 05-Dec-2014 30-Jun-2016 Comments Completed. Due to the wide scope of the priority sub-projects, training needs were much more than anticipated during the preparation of the project. About 62 Training events took place in Mongolia, the USA, UK, Singapore, Canada, Norway, South Korea, Australia, China, India and Philippines. 12/10/2014 Public Disclosure Copy Page 5 of 9 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 events over the Value none 2 were held 3 were held course of the project. Date 30-Apr-2011 29-May-2014 05-Dec-2014 30-Jun-2016 Comments Three conferences were held addressing the implementation of Mongolia’s infrastructure needs in general with emphasis on the miningsector development. PHINDIRITBL  Consultants provide hands-on training and help administer government-financed projects & PPP concessions (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Staff is well trained to Five PPP projects have administer No concessions to No project is under been launched Value government- administer. implementation yet. throughout 2014 and are financed well administered. projects & PPP concessions Date 30-Apr-2011 29-May-2014 05-Dec-2014 30-Jun-2016 Comments The staff of MoE, MED and MoF received a good level of training (5 training programs) that helped preparing and launching some PPP projects. Seven transactions have been awarded and are ongoing. PHINDIRITBL  Ability to manage groundwater strengthened (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The RBAs are adequately staffed, Building Insufficient trained and became fully capacity for resources/capacity to Value In progress operational; and GW effective manage groundwater in management and groundwater Southern Mongolia. monitoring plans are management. under implementation. Date 30-Apr-2011 29-May-2014 05-Dec-2014 31-Dec-2015 12/10/2014 Public Disclosure Copy Page 6 of 9 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 Development of Appropriate the appropriate Preliminary organization organization structure organization Value structure was in place but for groundwater Completed structure for the not revised management management of established the GW in three river basins Date 30-Apr-2011 29-May-2014 05-Dec-2014 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 29-May-2014 05-Dec-2014 30-Jun-2016 Comments Completed. 3 RBAs have been established in Southern Gobi Region. They have been staffed and are becoming functional. PHINDIRITBL  Agreement to implement important recommendations from water resource pricing studies (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Water resource pricing Water resource pricing Water pricing studies are under studies are under recommendatio Water Resources Pricing process of process of ns are well Value studies are finalized implementation by implementation by adapted and related ministry and related ministry and enforced by the RBAs RBAs RBAs Date 30-Apr-2014 29-May-2014 05-Dec-2014 30-Jun-2016 12/10/2014 Public Disclosure Copy Page 7 of 9 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 Develop the The development of fiscal budget No plan yet but working Value No plan fiscal budget plan is plan for the on it. underway RBAs and RBCs Date 30-Apr-2014 29-May-2014 05-Dec-2014 31-Dec-2014 Comments FY14 target is to develop a fiscal budget plan for the RBAs and RBCs. 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 IFC gas started public Three Public awareness Organize perception and workshop were groundwater Value No plan awareness campaign organized between public targeting the mining September 17 to 26, awareness industry. 2014. workshop. Date 30-Apr-2014 29-May-2014 05-Dec-2014 30-Jun-2016 Overall Comments The project is making a steady progress. All intermediate indicators are timely met with some are completed ahead of their schedule. 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 6.21 17.79 25% P118109 TF-16382 Effective USD 2.10 2.10 0.00 0.52 1.58 25% 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 12/10/2014 Public Disclosure Copy Page 8 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report MN-Mining Infrastructure Investment Supp (P118109) Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) P145439-Mining Infrastructure Investment Support - Additional Financing 12/10/2014 Public Disclosure Copy Page 9 of 9