The World Bank Implementation Status & Results Report The District Heating Energy Efficiency Project (P132741) The District Heating Energy Efficiency Project (P132741) EUROPE AND CENTRAL ASIA | Ukraine | Energy & Extractives Global Practice | IBRD/IDA | Investment Project Financing | FY 2014 | Seq No: 12 | ARCHIVED on 21-Dec-2021 | ISR48664 | Implementing Agencies: Ministry of Communities and Territories of Ukraine, Ukraine Key Dates Key Project Dates Bank Approval Date: 22-May-2014 Effectiveness Date: 21-Nov-2014 Planned Mid Term Review Date: 18-Sep-2018 Actual Mid-Term Review Date: 18-Sep-2018 Original Closing Date: 30-Oct-2020 Revised Closing Date: 31-Dec-2022 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective is to improve the energy efficiency and quality of service of selected Ukrainian district heating(DH) companies, improve their financial viability and decrease their CO2 emissions. The global objective is to reduce greenhouse gas (GHG) emissions through avoided heat generation by improving heat generation efficiency, reducing heat losses in DH transmission and distribution systems, and reducing residential heat consumption. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Component 1: Energy Efficiency Investments:(Cost $196.09 M) Component 2: Technical Assistance and Capacity Building:(Cost $5.50 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Unsatisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions The project was approved by the Board of Executive Directors on May 22, 2014 in the amount of US$382 million (US$332 IBRD Loan and US$50 million Clean Technology Fund (CTF) Loan). The Loan and Project Agreements were signed on May 26, 2014, and the project was declared effective on November 21, 2014. The implementation progress has initially been below expectations with significant delays experienced in the first year following effectiveness. While the Central Project Management Unit at Minregion is adequately staffed and able to fulfill its missions, some District Heating companies have made insufficient progress in the preparation of their investment plans, feasibility studies and in tendering. Given this situation, the Ukrainian authorities and the Bank agreed to restructure the Project. Four restructurings have taken place, in March 2016, May 2017, June 2018 and January 2019, resulting in a reduction of the number of participating utility companies (from 10 to 5) and in a reduction of the IBRD loan (which after 12/21/2021 Page 1 of 7 The World Bank Implementation Status & Results Report The District Heating Energy Efficiency Project (P132741) cancellation amounts to US$160.00). The Project closing date was extended by one year to October 30, 2021 to allow the five remaining participating utilities to complete the ongoing major network reconstruction and heat generation investments. A second and final extension to June 30, 2022 which should enable the completion of major investments was implemented on October 27, 2021. 12/21/2021 Page 2 of 7 The World Bank Implementation Status & Results Report The District Heating Energy Efficiency Project (P132741) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Moderate Moderate Macroeconomic -- Moderate Moderate Sector Strategies and Policies -- Substantial Substantial Technical Design of Project or Program -- Moderate Moderate Institutional Capacity for Implementation and -- Substantial Substantial Sustainability Fiduciary -- Moderate Moderate Environment and Social -- Moderate Moderate Stakeholders -- Moderate Moderate Other -- -- -- Overall -- Substantial Substantial Results PDO Indicators by Objectives / Outcomes Improve the energy efficiency and decrease CO2 emissions IN01051332 ►Projected lifetime fuel savings (Mega Joules (MJ), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 95,000,000.00 287,000,000.00 1,091,000,000.00 Date 01-Jul-2014 31-Dec-2018 19-Oct-2021 30-Jun-2021 12/21/2021 Page 3 of 7 The World Bank Implementation Status & Results Report The District Heating Energy Efficiency Project (P132741) The fuel savings will be estimated at the end of the upcoming heating season, taking into account the recently commissioned infrastructure in Kamyanets (boilers, CHP and network upgrade), infrastructure to Comments: be completed by the end of the year in other cities, and installed Individual Heat Substations. IN01051335 Project lifetime fuel savings, calculated as decreased gas needs of participating utilities for heat production (Cubic Meter(m3), Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2,800,000.00 8,434,265.00 32,200,000.00 IN01051421 ►Energy savings of participating DH companies (Gigawatt-hour (GWh), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 38.00 38.00 380.00 Date 01-Jul-2014 31-Dec-2018 31-Dec-2018 30-Jun-2021 IN01051423 Avoided CO2 emissions of participating DH companies (Tones/year, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 10,160.00 32,000.00 115,840.00 Improve quality of service of selected Ukrainian DH companies and improve their financial viability IN01051333 ►People that gained access to more energy-efficient cooking and/or heating facilities (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 55,909.00 194,355.00 497,600.00 Date 01-Jul-2014 31-Mar-2019 19-Oct-2021 01-Jul-2020 Latest indicator value reported is for Kamyanets Podilsky only, since this is the only city where Comments: investments are substantially completed and full benefits for users have materialized. IN01051334 ►Percentage of households that reported improved quality of service in buildings where IHSs were installed (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 80.00 Date 01-Jul-2014 02-Apr-2021 02-Apr-2021 01-Jul-2020 Beneficiary feedback survey is being finalized (results not yet available except for Kamyanets where Comments: satisfaction was 85% but this may not be representative for project as a whole) IN01051422 ►Ratio of total revenues to total operating costs (including debt service requirements) (Percentage, Custom) 12/21/2021 Page 4 of 7 The World Bank Implementation Status & Results Report The District Heating Energy Efficiency Project (P132741) Baseline Actual (Previous) Actual (Current) End Target Value 0.80 0.90 0.83 1.00 Date 01-Jul-2014 31-Dec-2020 19-Oct-2021 31-Dec-2021 Intermediate Results Indicators by Components Component 1: Energy Efficiency Investments IN01051424 ►Improved efficiency of heat generation (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 2.90 Date 01-Jul-2014 31-Dec-2018 31-Dec-2018 30-Jun-2021 improvement in efficiency of heat generation (boilers, CHP) will be assessed at the end of the next heating Comments: season after a full season of operation for infrastructure financed under the project. IN01051425 Fuel saved due to efficiency gains (Megawatt hour(MWh), Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 21,750.00 21,750.00 216,000.00 IN01051426 ►Reduction in network heat losses (Megawatt hour(MWh), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 4,960.00 4,960.00 49,000.00 Date 01-Jul-2014 31-Dec-2018 31-Dec-2018 30-Jun-2021 IN01051427 ►Reduction in residential heat consumption in buildings where IHSs were installed (Megawatt hour(MWh), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 11,400.00 11,400.00 114,000.00 Date 01-Jul-2014 31-Dec-2018 31-Dec-2018 01-Jul-2021 Performance-Based Conditions Data on Financial Performance 12/21/2021 Page 5 of 7 The World Bank Implementation Status & Results Report The District Heating Energy Efficiency Project (P132741) Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P132741 IBRD-83870 Effective USD 332.00 151.59 180.41 124.76 26.83 82% P132741 TF-16327 Effective USD 50.00 50.00 0.00 19.69 30.31 39% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P132741 IBRD-83870 Effective 22-May-2014 26-May-2014 21-Nov-2014 30-Oct-2020 30-Jun-2022 P132741 TF-16327 Effective 22-May-2014 26-May-2014 21-Nov-2014 30-Oct-2020 31-Dec-2022 Cumulative Disbursements PBC Disbursement Achievement Disbursed amount in Disbursement % PBC ID PBC Type Description Coc PBC Amount Status Coc for PBC 12/21/2021 Page 6 of 7 The World Bank Implementation Status & Results Report The District Heating Energy Efficiency Project (P132741) Restructuring History Level 2 Approved on 12-Nov-2014 ,Level 2 Approved on 26-Feb-2016 ,Level 2 Approved on 29-May-2017 ,Level 2 Approved on 29-Jun-2018 ,Level 2 Approved on 21-Jan-2019 ,Level 2 Approved on 22-Oct-2020 ,Level 2 Approved on 08-Feb-2021 ,Level 2 Approved on 11-Nov-2021 Related Project(s) There are no related projects. 12/21/2021 Page 7 of 7