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Document of
 
The World Bank 
 
Report No: 58369-AZ 
 
RESTRUCTURING PAPER 
 
ON A 
 
POWER TRANSMISSION PROJECT  
 
LOAN 
 
TO THE 
 
REPUBLIC OF AZERBAIJAN OPEN JOINT STOCK 
COMPANY “AZERENERJI” 
 
December 22, 2010 
 
Regional Vice President:
Phillipe H. Le Houerou 
Country Director:
Asad Alam 
Sector Manager / Director:
Ranjit Lamech  
Task Team Leader:
Arturo S. Rivera 
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EXTENSION OF CLOSING DATE  
AZERBAIJAN - POWER TRANSMISSION PROJECT P083341 
LOAN NUMBER 7294-AZ 
 
1.  The closing date for Azerbaijan, Power Transmission Project P0 83341, Loan No. 
7294-AZ will be extended
 
from December 31, 2010, to December 31, 2011.   
2. 
 Project implementation is progressing well and the Implementation Rating in the last 
ISR (May 1, 2010) is ‘Satisfactory.’  Disbursement is currently at 83% of the Loan 
(USD 40.1m out of USD 48m).   
 
3.  A major component of the project is a SCADA/EMS system (Supervisory Control 
and Data Acquisition/Energy Management System) which is progressing well; 
however while significant progress has been made to date, implementation of such a 
system is a complex undertaking and additional time is required for completion of the 
remaining tasks for the system to become fully operational. These tasks are:              
(a) Provide remain telemetry from stations and substations to SCADA;                             
(b) Commissioning and acceptance testing of Energy Management System;               
(c) Tuning of Automatic Generation System; (d) Training of personnel; and                     
(e) Migration of dispatching and operations to the new SCADA system. 
4.  The audit report for the year ending December 30, 2009, with accompanying draft 
Management Letter has been submitted to the Bank and arrangements for the 2010 
audit have been made by Azerenerji. The Bank Financial Management Supervision 
was carried out by a Financial Management Specialist on December 14, 2010.  The  
current Financial Management arrangements of the project are moderately 
satisfactory due to improvement in the quality of IFRS and timeliness of their 
submission but project and entity audits are not always submitted on time.  
 
5.  This will be the first extension of the Closing Date for the project.