This definitely wasn't the world's first penis transplant, only the world's first "successful" one and the jury is still out on whether it'll actually be a success or not depending on the patient.
In 2006 surgeons in China successfully did a penis transplant but the patient experienced psychological trauma as a result and had the surgery revised to remove it.
Here is the article:
Man rejects first penis transplanthttp://www.theguardian.com/science/2006/sep/18/medicineandhealth.chinaIan Sample
Monday 18 September 2006 00.05 BST
"Chinese surgeons have performed the world's first penis transplant on a man whose organ was damaged beyond repair in an accident this year. The incident left the man with a 1cm-long stump with which he was unable to urinate or have sexual intercourse. "His quality of life was affected severely," said Dr Weilie Hu, a surgeon at Guangzhou General Hospital".
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Even if penis transplants become routine (and I can't imagine they would because there's already a severe lack of organ donors much less penis donators) the medical and psychological impacts of having such an intimate part of another person's body attached to yours can be scarring. Even people who receive "normal" organ transplants: hearts, kidneys, lungs, are impacted emotionally by it and there's always a risk that the new organ will be rejected by the body.
Edited to forum rules.