Public Disclosure Copy The World Bank Implementation Status & Results Report Kosovo Energy Efficiency and Renewable Energy Project (P143055) Kosovo Energy Efficiency and Renewable Energy Project (P143055) EUROPE AND CENTRAL ASIA | Kosovo | Energy & Extractives Global Practice | IBRD/IDA | Specific Investment Loan | FY 2014 | Seq No: 5 | ARCHIVED on 27-Oct-2016 | ISR25425 | Implementing Agencies: Kosovo Energy Efficiency Agency Key Dates Key Project Dates Bank Approval Date:18-Jun-2014 Effectiveness Date:05-Jun-2015 Planned Mid Term Review Date:25-Sep-2017 Actual Mid-Term Review Date:-- Original Closing Date:31-Aug-2020 Revised Closing Date:31-Aug-2020 Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objectives are to: (i) reduce energy consumption and fossil fuel use in public buildings through energy efficiency and renewable energy investments; and (ii) enhance the policy and regulatory environment for renewable energy and energy efficiency. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Energy efficiency and renewable energy investments in public buildings:(Cost $29.56 M) Policy and regulatory support for renewable energy and energy efficiency:(Cost $2.30 M) Project implementation support:(Cost $0.64 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Moderately Unsatisfactory  Moderately Unsatisfactory Overall Implementation Progress (IP)  Moderately Unsatisfactory  Moderately Unsatisfactory Overall Risk Rating  Substantial  Substantial 10/27/2016 Page 1 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Kosovo Energy Efficiency and Renewable Energy Project (P143055) Implementation Status and Key Decisions Despite good progress over the past six months on regulatory support to the Energy Regulatory Office (ERO), including adoption of a new cost- reflective District Heating (DH) tariff methodology for Termokos by ERO, and submission of a draft Bid Evaluation Report (BER) for renovation works of the second package of 14 buildings (“Package 2”), the Project rating remains Moderately Unsatisfactory due to the lack of physical progress on renovation works. It was agreed Package 1 will not be financed by the Bank. Once the contract for Package 2 has been signed and substantial physical progress has been made on the renovations, the Project ratings could be upgraded. MED expects to sign the contract for Package 2 by October 17 but may not be able to initiate renovation works until after the heating season (i.e., March 2017). Due to the delays in Project Effectiveness and procurement for Packages 1 and 2, the Project has not been able to utilize its allocated budgets for 2014, 2015 or 2016. As a result, the Project is about 18 months behind its original schedule. Now that procurement for Package 2 is nearing completion, disbursements are expected to significantly improve. The PIU is also now finalizing the TOR for the technical designs for Package 3 and could increase the number of buildings if requested, thereby accelerating implementation. MED agreed to seek an increase in the capital investment budget for 2017. With respect to the EE Fund, the Bank team shared its final report, Kosovo: Options for Financing Energy Efficiency in Public Buildings, with the Government on September 16. This report analyzed the current opportunities and challenges with financing public building renovations in Kosovo and assessed alternate options based on experience in the region and elsewhere. The report recommends establishment of an independent Energy Efficiency Revolving Fund. Such a fund would likely not be classified as an extra-budgetary fund and should impose no additional budget implications for the Government since it is proposed to be primarily capitalized with EC funds and the ongoing KEEREP project. MED agreed to review and discuss the proposed scheme with MOF for possible establishment in 2017. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  Substantial  Substantial Macroeconomic  --  Substantial  Substantial Sector Strategies and Policies  --  Moderate  Moderate Technical Design of Project or Program  --  Substantial  Substantial Institutional Capacity for Implementation and Sustainability  --  Substantial  Substantial Fiduciary  --  Substantial  Substantial Environment and Social  --  Moderate  Moderate Stakeholders  --  Low  Low Other  --  --  -- Overall  --  Substantial  Substantial Results Project Development Objective Indicators PHINDPDOTBL  Projected lifetime energy savings (Megawatt hour(MWh), Core) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 750000.00 10/27/2016 Page 2 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Kosovo Energy Efficiency and Renewable Energy Project (P143055) Date 01-Jul-2014 11-Apr-2016 07-Oct-2016 31-Aug-2020 PHINDPDOTBL  Capacity of approved RE regulatory licenses (Megawatt, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 35.80 78.22 119.00 140.00 Date 01-May-2014 11-Apr-2016 07-Oct-2016 31-Aug-2020 PHINDPDOTBL  Reduced fossil fuel use for heating in public buildings (Metric ton, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 1500.00 Date 01-Jul-2014 11-Apr-2016 07-Oct-2016 31-Aug-2020 Overall Comments Intermediate Results Indicators PHINDIRITBL  CO2 emission reductions in retrofitted public facilities (Metric ton, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 875.00 Date 01-Jul-2014 11-Apr-2016 07-Oct-2016 31-Aug-2020 10/27/2016 Page 3 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Kosovo Energy Efficiency and Renewable Energy Project (P143055) PHINDIRITBL  Amount of installed energy capacity for RE systems for heating under project (Megawatt, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 5.00 Date 01-Jul-2014 11-Apr-2016 07-Oct-2016 31-Aug-2020 PHINDIRITBL  Annual energy costs savings (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 16700000.00 Date 01-Jul-2014 11-Apr-2016 07-Oct-2016 31-Aug-2020 PHINDIRITBL  Number of subprojects commissioned in public facilities (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 140.00 Date 01-Jul-2014 11-Apr-2016 07-Oct-2016 31-Aug-2020 PHINDIRITBL  Direct project beneficiaries (Number, Core) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 30000.00 Date 01-Jul-2014 11-Apr-2016 07-Oct-2016 31-Aug-2020 10/27/2016 Page 4 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Kosovo Energy Efficiency and Renewable Energy Project (P143055) PHINDIRITBL  Female beneficiaries (Percentage, Core Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 33.00 PHINDIRITBL  Development of suitable EE financing mechanism for the municipal sector (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 01-Jul-2014 11-Apr-2016 07-Oct-2016 31-Aug-2020 PHINDIRITBL  Enhanced policy/ regulatory mechanisms developed/adopted to scale-up RE (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value Not Yet Not yet Not yet TBD Date 01-Jul-2014 11-Apr-2016 07-Oct-2016 31-Aug-2020 PHINDIRITBL  Number of people trained (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 250.00 Date 01-Jul-2014 11-Apr-2016 07-Oct-2016 31-Aug-2020 Overall Comments Data on Financial Performance 10/27/2016 Page 5 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Kosovo Energy Efficiency and Renewable Energy Project (P143055) Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P143055 IDA-55080 Effective XDR 20.10 20.10 0.00 0.43 19.67 2% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P143055 IDA-55080 Effective 18-Jun-2014 15-Jan-2015 05-Jun-2015 31-Aug-2020 31-Aug-2020 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 10/27/2016 Page 6 of 7 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Kosovo Energy Efficiency and Renewable Energy Project (P143055) 10/27/2016 Page 7 of 7 Public Disclosure Copy