Public Disclosure Copy The World Bank Implementation Status & Results Report Energy Supply Reliability and Financial Recovery (P169117) Energy Supply Reliability and Financial Recovery (P169117) EUROPE AND CENTRAL ASIA | Georgia | Energy & Extractives Global Practice | IBRD/IDA | Investment Project Financing | FY 2019 | Seq No: 6 | ARCHIVED on 02-Aug-2022 | ISR52205 | Implementing Agencies: Georgian State Electrosystem, Ministry of Economy and Sustainable Development, Ministry of Finance Key Dates Key Project Dates Bank Approval Date: 23-May-2019 Effectiveness Date: 28-Nov-2019 Planned Mid Term Review Date: 30-Sep-2022 Actual Mid-Term Review Date: Original Closing Date: 31-Dec-2024 Revised Closing Date: 31-Dec-2024 Guarantee Expiration Date: Guarantee Information Deli Coverage: [✓] Loan Guarantee [ ] Payment guarantee Type of Implementing entity: Public Guarantee beneficiary: Not known yet Includes Payment Guarantee Yes Guarantee fees: UpFront Are guarantee fees current? Guarantee fees payment due dates: pdoTable Project Development Objectives Project Development Objective (PDO) Project Development Objective (from Project Appraisal Document) The objectives of the Project are to increase electricity supply reliability in the western part of Georgia, achieve the financial viability of GSE, and help it access long-term commercial financing. HRPDODELs Components Table 8/2/2022 Page 1 of 8 Public Disclosure Copy The World Bank Implementation Status & Results Report Energy Supply Reliability and Financial Recovery (P169117) Name Strengthening of the power transmission network:(Cost $66.00 M) Support to financial recovery of GSE and preparatory work to access the capital markets:(Cost $6.50 M) IBRD Guarantee to help GSE raise long-term commercial financing:(Cost $50.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Moderate Moderate Implementation Status and Key Decisions The implementation of the Project is overall Satisfactory. The rating towards the achievement of PDO is Satisfactory given that there are no material risks that may undermine the timely achievement of the PDO. The implementation progress is Satisfactory because the key activities related to the construction of the new transmission line and the substation as well as the financial recovery of GSE are progressing well. Guarantee Conditions Precedent Description Status The decision on deployment of guarantee for local GEL bond issuance would be made by September 2021 depending on feedback from the Unknown market Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Moderate Low Low Macroeconomic Moderate Moderate Moderate Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program Moderate Low Low Institutional Capacity for Implementation and Substantial Substantial Substantial Sustainability Fiduciary Moderate Moderate Moderate Environment and Social High High High Stakeholders Substantial Substantial Substantial 8/2/2022 Page 2 of 8 Public Disclosure Copy The World Bank Implementation Status & Results Report Energy Supply Reliability and Financial Recovery (P169117) Other -- Moderate Moderate Overall Substantial Moderate Moderate Results PDO Indicators by Objectives / Outcomes Electricity supply reliability in the western part of Georgia IN01163366 ►Number of end-user outages caused by failures of 500 kV OHLs in the western part of Georgia (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 4.00 18.00 18.00 0.00 Date 31-Dec-2018 31-Dec-2021 31-Dec-2021 31-Dec-2024 This indicator will measure improvements in reliability of electricity supply in the western part of Georgia. This indicator would track outages caused only by failures on 500 kV Imereti, Zekari, Jvari-Tskaltubo, and Tskaltubo-Akhaltiskhe OHLs. Comments: The Actual outages data changes from year to year based on actual outages on the mentioned existing lines. The target remains unchanged. IN01163369 ►Average annual duration of end-user outages caused by failures of 500 kV OHLs in the western part of Georgia (Minutes, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 161.00 1,142.00 1,142.00 0.00 Date 31-Dec-2018 31-Dec-2021 31-Dec-2021 31-Dec-2024 This indicator will measure improvement of electricity supply reliability in the western part of Georgia. The duration of outages in the western part of Georgia will be changing from year to year in unpredictable Comments: manner until the new line is constructed. There is no change in the Target Value of this indicator. Financial viability IN01163367 ►End of GSE rehabilitation regime (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 31-Dec-2018 31-Dec-2021 31-Dec-2021 30-Sep-2020 This indicator will measure the progress with financial recovery of GSE. Comments: IN01163370 ►Reduction of cash deficit of GSE (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 3,064,460.00 6,856,630.00 2,800,000.00 0.00 8/2/2022 Page 3 of 8 Public Disclosure Copy The World Bank Implementation Status & Results Report Energy Supply Reliability and Financial Recovery (P169117) Date 31-Dec-2017 31-Dec-2020 31-Dec-2020 30-Jun-2021 This indicator will measure the adequacy of the operating cash revenues of GSE (as a Group) to fully finance the required recurrent operating and maintenance costs, debt service, and taxes. The actual value is not updated because the audited financial statements of GSE for FY2020 are not Comments: available yet and those would be submitted to the Bank by July 31 and then reviewed by the Bank, including update of the computation on reduction of cash deficit. IN01163371 ►Improved decision-making on new investments in power transmission network as a result of institutional strengthening (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target New investments in New investments in New investments in New investments in power transmission power transmission power transmission power transmission network are always network are not always network are consistent network are consistent Value consistent with the consistent with the with the principles of with the principles of principles of least principles of least least economic cost least economic cost economic cost economic cost planning. planning. planning. planning. Date 31-Dec-2018 31-Dec-2021 31-Dec-2021 31-Dec-2024 This indicator will measure the progress with strengthening of institutional capacity of GSE. Comments: Access to long-term commercial financing IN01163368 ►Long-term commercial financing mobilized (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 100,000,000.00 Date 31-Dec-2018 31-Dec-2021 30-Jun-2022 30-Jun-2021 Comments: This indicator will measure progress with securing long-term commercial financing. Intermediate Results Indicators by Components Strengthening of the power transmission network IN01163372 ►Jvari-Tskaltubo 500 kV OHL constructed (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 77.00 Date 31-Dec-2018 31-Dec-2021 30-Jun-2022 29-Dec-2023 Comments: This indicator will measure the progress with construction of the target transmission line. IN01163375 ►500/220 kV Tskaltubo substation constructed (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target 8/2/2022 Page 4 of 8 Public Disclosure Copy The World Bank Implementation Status & Results Report Energy Supply Reliability and Financial Recovery (P169117) Value No No No Yes Date 31-Dec-2018 31-Dec-2021 30-Jun-2022 31-Dec-2022 Comments: This indicator will track progress with completion of 500/220 kV Tskaltubo substation Financial recovery of GSE and preparatory work to access capital markets IN01163373 ►Adequately staffed Environmental and Social Unit is established and maintained at GSE (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 31-Dec-2018 31-Dec-2021 30-Jun-2022 31-Dec-2019 This indicator will measure the progress with strengthening of in-house capacity of GSE in adequately Comments: managing the environmental and social aspects of investment projects. IN01163376 ►Mechanism is introduced to reduce or eliminate exposure of GSE to FX risks (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 31-Dec-2018 31-Dec-2021 30-Jun-2022 31-Dec-2021 This indicator will measure the progress with introduction and implementation of mechanism to eliminate Comments: or reduce GSE exposure to FX risks. IN01163377 ►GSE is issued a credit rating by an international reputable rating agency (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 31-Dec-2018 31-Dec-2021 30-Jun-2022 31-Mar-2021 This indicator will measure the progress with preparedness of GSE to access commercial financing. This Comments: has been delayed, but is in progress. IN01163378 ►Percentage of grievances recorded by the Project and resolved within a two-week period (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 100.00 100.00 100.00 Date 31-Dec-2018 31-Dec-2021 30-Jun-2022 31-Dec-2023 Comments: This indicator will monitor efficiency of GRM under the Project. IN01163379 ►Percentage of citizens who believe that the project has established effective engagement processes (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target 8/2/2022 Page 5 of 8 Public Disclosure Copy The World Bank Implementation Status & Results Report Energy Supply Reliability and Financial Recovery (P169117) Value 0.00 90.00 90.00 75.00 Date 31-Dec-2018 31-Dec-2021 31-Dec-2021 31-Dec-2023 This indicator will help to monitor progress of citizen engagement activities. Comments: IN01163380 ►Increase in demand for gender-based violence support services in project regions (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 10.00 Date 31-Dec-2018 31-Dec-2021 30-Jun-2022 31-Dec-2023 Comments: This indicator will monitor the progress on gender related activities. Support in accessing long-term commercial financing IN01163374 ►Closure of the transaction to raise commercial financing (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 31-Dec-2018 31-Dec-2021 30-Jun-2022 30-Sep-2022 Comments: This indicator will measure the progress with raising long-term commercial financing for GSE. Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P169117 IBRD-89520 Effective USD 70.70 70.70 0.00 12.96 57.91 18% Key Dates (by loan) 8/2/2022 Page 6 of 8 Public Disclosure Copy The World Bank Implementation Status & Results Report Energy Supply Reliability and Financial Recovery (P169117) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P169117 IBRD-89520 Effective 23-May-2019 18-Jun-2019 28-Nov-2019 31-Dec-2024 31-Dec-2024 Guarantee Amount Project Guarantee No. Status Currency Original Revised Cancelled Current Amount P170552 IBRD-G2870 Not Effective EUR 43.87 43.87 0 43.87 Guarantee Dates Orig. Guarantee Rev. Guarantee Project Guarantee No Status Approval Date Signing Date Effectiveness Date Expiration Date Expiration Date Not P170552 IBRD-G2870 23-May-2019 Effective Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) 8/2/2022 Page 7 of 8 Public Disclosure Copy The World Bank Implementation Status & Results Report Energy Supply Reliability and Financial Recovery (P169117) P170552-Energy Supply Reliability and Financial Recovery Guarantee 8/2/2022 Page 8 of 8