The World Bank Report No: ISR8047 Implementation Status & Results Kosovo Energy Sector Cleanup and Land Reclamation Project (P096181) Public Disclosure Copy Operation Name: Energy Sector Cleanup and Land Reclamation Project Project Stage: Implementation Seq.No: 10 Status: ARCHIVED Archive Date: 06-Oct-2012 (P096181) Country: Kosovo Approval FY: 2006 Product Line: IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Kosovo Energy Corporation J.S.C. Key Dates Board Approval Date 13-Jun-2006 Original Closing Date 31-Dec-2010 Planned Mid Term Review Date 15-Feb-2010 Last Archived ISR Date 05-Dec-2011 Effectiveness Date 28-Feb-2007 Revised Closing Date 15-Dec-2012 Actual Mid Term Review Date 15-Feb-2010 Project Development Objectives Project Development Objective (from Project Appraisal Document) The objectives of the Cleanup and Land Reclamation Project are to: (a) address environmental legacy issues related to open dumping of ashes on land; (b) enable KEK to free land for community development purposes currently taken by overburden materials and enable KEK to remediate the Kosovo A ash dump ; and (c) build capacity in KEK for continued clean-up and environmentally good practice mining operations. Has the Project Development Objective been changed since Board Approval of the Project? � Yes No Component(s) Component Name Component Cost Component A. Preparation of the Mirash Open Pit Mine for Ash Management: 2.76 Component B. Relocation of Kosovo A Ash Dumps into Mirash Open Pit Mine 5.48 Component C. Reclamation of Overburden Dump Areas 0.75 Component D. Project Management 0.71 Public Disclosure Copy Component E - Removal of Hazardous Chemicals from Kosovo A Gasification Site 5.00 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Satisfactory Overall Risk Rating Implementation Status Overview Page 1 of 5 The World Bank Report No: ISR8047 The Project is on course to fully meet the objectives for all components by the revised closing date of December 15, 2012. For Components B (remediation of the Kosovo A coal ash dump) and Component C (reclamation of the overburden dumps) with both targets to remediate or reclaim more than 55% of the total area, the Project objectives already have been met. The installation of the hydraulic ash handling system for Kosovo A, which should stop the dry ash dumping as Public Disclosure Copy required under Project Component A, is now progressing well and commissioning is expected in November 2012. Also Project Component D (Hazardous Chemicals Cleanup at the Gasification Plant Site) is now all but completed with all watery hazardous waste treated on site and 93% of the other chemicals removed from the site for export and final disposal. With this progress the related result indicator already has been met. The last remaining chemicals that are under contract for disposal will leave the site not later than in October 2012. Locations Country First Administrative Division Location Planned Actual Kosovo Komuna e Obiliqit Obiliq Kosovo Komuna e Obiliqit Komuna e Obiliqit Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Disposal of ash from Kosovo A at the open ash Text Value 100% ash production from Completion and stoppage of Complete elimination of ash dump site will be stopped and redirected to the Kosovo A is dumped on open dry ash disposal planned for dumping on open land (0%). Mirash mine. land. November 2012. Date 21-Sep-2006 17-Sep-2012 15-Dec-2012 Comments Initiate and enable KEK to achieve land Text Value 650 hectares of overburden Some road improvements still Reclamation of 55% of total reclamation for natural habitats, agriculture, dumps require reclamation needed in areas available for overburden area. resettlement or other land use purposes. works to improve further land re-development. use. Date 21-Sep-2006 17-Sep-2012 15-Dec-2012 Comments Public Disclosure Copy Initiate and enable KEK to remediate Kosovo A Text Value 243 hectares of unremediated Target Achieved. 55% of ash dump area ash dump area, thereby initiate and enable ash disposal area. remediated. KEK to eliminate pollution infiltration from the Date 21-Sep-2006 14-Sep-2012 15-Dec-2012 ashes into the groundwater. Comments Initiate and enable KEK to reduce loss of Text Value 10 houses at risk. no houses at risk private property in the area by eliminating the Date 21-Sep-2006 13-Oct-2010 18-Oct-2010 extensive geotechnical instabilities fromthe Comments Kosovo A ash dump and adjacent overburden dumps. Page 2 of 5 The World Bank Report No: ISR8047 Increase in capacity in institutions and KEK for Text Value no capabilities in KEK/MESP/ KEK staff fully responsible for good environmental practices mining MEM for implementation of clean-up and land reclamation operations. clean-up and landreclamation operations. operations. Public Disclosure Copy Date 21-Sep-2006 13-Oct-2010 31-Dec-2010 Comments Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Percentage of Mirash Mine prepared for Text Value Mirash mine is unsuitable for Target achieved. All civil works completed and sanitary disposal of Kosovo A ash ash reception (0%) mine ready to receive ash. Date 21-Sep-2006 17-Sep-2012 15-Jan-2012 Comments Transfer of ash stream from Kosovo A to dump Text Value Kosovo A ash production to System under construction, Ash disposal redirected to site will be stopped and redirected to Mirash open dump site. with commissioning Mirash mine mine. completion scheduled for November 27, 2012. Date 21-Sep-2006 17-Sep-2012 15-Dec-2012 Comments System operational November 2012. Percentage of remediation of Kosovo A ash Text Value Unremediated ash and Target achieved. 55% of surface area dump, eliminating dust problems and pollution overburden dump of 243 ha. remediation. infiltration in underground. Date 21-Sep-2006 17-Sep-2012 15-Dec-2012 Comments Reduction in houses at risk from geotechnical Text Value 10 houses at risk Target achieved. no houses at risk instabilities of Kosovo A ash dump Date 21-Sep-2006 17-Sep-2012 15-Dec-2012 Comments Initiate reclamation of 6.5 km2 (650ha) of land Text Value No land reclaimed in 650 ha 450 ha reclaimed land. available for community development including of overburden dump areas Public Disclosure Copy for agriculture, resettlement and/or natural Date 21-Sep-2006 17-Sep-2012 15-Dec-2012 habitats Comments Road works still required. Works are continuing beyond project targets. Increased capacities in KEK and institutions for Text Value Limited capacities in KEK/ Target achieved. KEK staff fully responsible for good environmental practices in lignite mining MEM/MESP clean-up and land reclamation operations. works. Date 21-Sep-2006 17-Sep-2012 15-Dec-2012 Comments Page 3 of 5 The World Bank Report No: ISR8047 Removal of highest priority hazardous Metric ton Value 4300.00 212.00 0.00 substnces from storage stanks at the Date 01-Jan-2008 17-Sep-2012 15-Dec-2012 gasification site Comments Works will be concluded in Public Disclosure Copy October 2012. Around 2,000 tons of tars residues which where not in the project's scope for removal fromsite remain on site awaiting funding for future removal. Partial removal and containment of phenol in Metric ton Value 13245.00 0.00 0.00 water solutions Date 01-Jan-2008 01-Jun-2012 15-Dec-2012 Comments All phenols in water solutions treated on site and eliminated. Preparation of full site clean-up investment Text Value No remediation plan Target achieved. Prepared site clean-up plan and adaptation of health and safety investment plan and adaption regulations and low-cost remediation program of health and safety regulations and low-cost remediation plan Date 01-Jan-2008 17-Sep-2012 15-Dec-2012 Comments Data on Financial Performance (as of 21-Sep-2012) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P096181 IDA-H2340 Effective 13-Jun-2006 13-Dec-2006 28-Feb-2007 31-Dec-2010 15-Dec-2012 P096181 IDA-H3190 Effective 28-Jun-2007 05-Nov-2007 11-Dec-2007 31-Dec-2010 15-Dec-2012 P096181 TF-90160 Closed 05-Nov-2007 05-Nov-2007 05-Nov-2007 30-Jul-2010 30-Jun-2011 Disbursements (in Millions) Public Disclosure Copy Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P096181 IDA-H2340 Effective USD 5.50 5.50 0.00 5.52 0.44 100.00 P096181 IDA-H3190 Effective USD 5.00 5.00 0.00 4.05 1.03 81.00 P096181 TF-90160 Closed USD 4.33 4.26 0.01 4.29 0.00 101.00 Disbursement Graph Page 4 of 5 The World Bank Report No: ISR8047 Public Disclosure Copy Key Decisions Regarding Implementation None. Restructuring History Board Approved on 03-Jun-2009, Level two Approved on 16-Nov-2010, Level two Approved on 15-Dec-2011, Level two Approved on 17-May-2012 Related Projects P105870-Kosovo Energy Sector Clean-up of Gasification Site, P131539-AF - CleanUp & Land Reclamation Project, P133033-to be recycled. Public Disclosure Copy Page 5 of 5