The World Bank Renewable Energy Integration Technical Assistance Project (P155510) REPORT NO.: RES31930 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF THE RENEWABLE ENERGY INTEGRATION TECHNICAL ASSISTANCE PROJECT APPROVED ON DECEMBER 14, 2015 TO TÜRKİYE ELEKTRİK İLETİM A.Ş. (TEİAŞ) ENERGY AND EXTRACTIVES GLOBAL PRACTICE EUROPE AND CENTRAL ASIA REGION Regional Vice President: Cyril E Muller Country Director: Johannes C.M. Zutt Senior Global Practice Director: Riccardo Puliti Practice Manager: Sameer Shukla Task Team Leader: Yesim Akcollu The World Bank Renewable Energy Integration Technical Assistance Project (P155510) ABBREVIATIONS AND ACRONYMS REITAP: Renewable Energy Integration Technical Assistance Project TEİAŞ: Turkish Electricity Transmission Company BASIC DATA Product Information Project ID Financing Instrument P155510 Investment Project Financing Original EA Category Current EA Category Not Required (C) Not Required (C) Approval Date Current Closing Date 14-Dec-2015 31-Mar-2018 Organizations Borrower Responsible Agency TEIAS-Turkiye Elektrik Iletim A.S. TEIAS-Turkiye Elektrik Iletim A.S. Project Development Objective (PDO) Original PDO To enhance capacity for generation planning, transmission planning, and grid management in Turkey in anticipation of increased share of renewable energy in the generation mix. OPS_TABLE_PDO_CURRENTPDO The World Bank Renewable Energy Integration Technical Assistance Project (P155510) Summary Status of Financing Net TF Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed TF-A1619 25-Dec-2015 25-Dec-2015 25-Dec-2015 31-Mar-2018 1.00 .49 .51 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. Project Status 1. The Renewable Energy Integration Technical Assistance Project, whose Grant Agreement dated August 23, 2016 between the World Bank (acting as the administrator of grant funds provided by various donors under the Clean Technology Fund) and the Turkish Electricity Transmission Company (TEİAŞ), includes two components: a) capacity enhancement for generation and transmission planning; and b) capacity enhancement for SCADA based Smartgrid System. 2. Under Component 1, the generation planning software was procured in April 2017. Installation of the software and the introductory training of TEİAŞ personnel who would be using the software have been completed. TEİAŞ is about to finalize the procurement process and sign the contract for the consultancy work covering the data collection, analysis, training and reporting, with some delay. Given the scope and the complexity of the generation planning work, TEIAS has agreed with the Bank team on hiring new engineers who will work for the Generation Planning Unit as soon as possible. In addition, the Bank team has emphasized the importance of a few staff from the Transmission Planning Unit participating in the generation planning trainings and exercises since they are the main users of the data and outputs generated by the generation planning activity and reports. TEIAS agrees with this and will be assigning staff from the Transmission Planning Unit to attend the trainings. 3. Under Component 2, all SCADA/EMS trainings have been completed. 4. There are no outstanding audits under the Grant. B. Rational for Restructuring The World Bank Renewable Energy Integration Technical Assistance Project (P155510) 5. In its letter dated December 18, 2017, TEİAŞ requested an extension of six months to the original closing date of March 31, 2018, in order to complete the procurement and implementation of consultancy work for the generation planning. They later renewed their request, in another letter dated January 24, 2018, to increase the closing date extension to one year (instead of six months), as more time would be needed to complete the implementation of this consultancy work under the project, based on the proposals coming from the firms. 6. This project is linked to an investment lending project (P144534) which also needs to be restructured due to a few changes in the project, and it would have been efficient if all restructurings would be covered under one package. However, as the Borrowers’ request regarding some of these changes was delayed, and the closing date of this project is nearing, it is being restructured separately. II. DESCRIPTION OF PROPOSED CHANGES 7. The restructuring involves an extension of the project closing date from March 31, 2018 to March 31, 2019, with no other changes. III. SUMMARY OF CHANGES Changed Not Changed Change in Loan Closing Date(s) ✔ Change in Implementing Agency ✔ Change in Project's Development Objectives ✔ Change in Results Framework ✔ Change in Components and Cost ✔ Cancellations Proposed ✔ Additional Financing Proposed ✔ Reallocation between Disbursement Categories ✔ Change in Disbursements Arrangements ✔ Change in Disbursement Estimates ✔ Change in Overall Risk Rating ✔ Change in Safeguard Policies Triggered ✔ The World Bank Renewable Energy Integration Technical Assistance Project (P155510) Change of EA category ✔ Change in Legal Covenants ✔ Change in Institutional Arrangements ✔ Change in Financial Management ✔ Change in Procurement ✔ Change in Implementation Schedule ✔ Other Change(s) ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_LOANCLOSING_TABLE LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline TF Status Closing Closing(s) Closing for Withdrawal Applications TF-A1619 Effective 31-Mar-2018 31-Mar-2019 31-Jul-2019