Public Disclosure Copy The World Bank Implementation Status & Results Report Energy Community of South East Europe APL Program - APL 5 for Albania DAM SAFETY (P110481) Energy Community of South East Europe APL Program - APL 5 for Albania DAM SAFETY (P110481) EUROPE AND CENTRAL ASIA | Albania | Energy & Extractives Global Practice | IBRD/IDA | Investment Project Financing | FY 2008 | Seq No: 13 | ARCHIVED on 12-Jun-2018 | ISR33001 | Implementing Agencies: Albanian Power Corporation (KESH), Albania Key Dates Key Project Dates Bank Approval Date:30-Jun-2008 Effectiveness Date:16-Dec-2008 Planned Mid Term Review Date:30-Nov-2015 Actual Mid-Term Review Date:07-Apr-2016 Original Closing Date:31-Dec-2013 Revised Closing Date:31-Dec-2020 Project Development Objectives Project Development Objective (from Project Appraisal Document) The objectives of the Project are to: (i) contribute to safeguarding the hydroelectric dams on the Drin and Mat river cascades in the territory of the Borrower; and (ii) improve the operational efficiency of said hydroelectric dams and enhance the stability of power supply in the regional market. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Physical infrastructure investments:(Cost $54.81 M) Technical Assistance and Training:(Cost $10.98 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Satisfactory  Satisfactory Overall Implementation Progress (IP)  Moderately Satisfactory  Moderately Satisfactory Overall Risk Rating  Moderate  Moderate Implementation Status and Key Decisions 6/12/2018 Page 1 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Energy Community of South East Europe APL Program - APL 5 for Albania DAM SAFETY (P110481) There has been steady progress in the Electro Mechanical (E&M) Rehabilitation and Installation of a new Control and Monitoring System of Komani HPP. The last unit (UNIT#4) was dewatered and demolished in May 2018 and it is in rehabilitation phase; it is expected to be re-commissioned and completed in February 2019. The contract for Spillway Gates Rehabilitation package was signed by KESH and contractor on June 7, 2018. However the contract signed by KESh is conditional and be effective when the Second Additional Financing (AF2) is approved by Albanian Parliament and the financing of EBRD is signed by the Ministry of Finance (MOF) Regarding TA supported activities, there is only one package left for procurement: TA supports KESH Financial Management. which is in procurement process. The other TAs are all completed. There are three main TAs which contributed to the project and for future Dam Safety practices: (i) Risks assessment and Emergency Preparedness Plan; (ii) Upgrade and enforce the KESH Generation and Dam Safety Departments; and (iii) Prefeasibility and Feasibility Studies, Design and Bidding Document for Providing Safe Flood Management of the Drin River Cascade Hydro Power Plants. Actually the Owner's engineer contract (AFC contract) and Panel of Experts will be extended for entire project implementation time until December 2020. The project closing date was extended until December 31, 2020 The AF2 (Euro 12 million) is approved by Albanian Government (23 May 2018) and by the Board of the Bank on 25 May 2018. Subsequently the MoF should send the confirmation for new loan signature and after to submit the documents for Albanian Parliament approval. The AF will also cover Spillway Gates package and the contingencies needed under the ongoing E&M Komani rehabilitation contract, as well as the owners engineer contract. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  Low  Low Macroeconomic  --  Low  Low Sector Strategies and Policies  --  Moderate  Moderate Technical Design of Project or Program  --  Substantial  Moderate Institutional Capacity for Implementation and Sustainability  --  Low  Low Fiduciary  --  Low  Low Environment and Social  --  Moderate  Moderate Stakeholders  --  Low  Low Other  --  --  -- Overall  --  Moderate  Moderate Results Project Development Objective Indicators PHINDPDOTBL  Regional Market Liberalization (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 8% in Albania: Ten customers The Albanian Value 0% in most countries connected in HV are Power 6/12/2018 Page 2 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Energy Community of South East Europe APL Program - APL 5 for Albania DAM SAFETY (P110481) Ten customers qualified as eligible; the Exchange to be connected in HV are annual consumption in Functional and eligible; the annual 2017 was GWh 783 Operational consumption GWh 650 which is 11% of total is expected in 2017. demand in Albania. At Next year other MV the beginning of 2018 customers (connected the other 85 MV in 35 kV and 20 kV) will customers connected in be in deregulated 35 kV are qualified; next market together with year other 1000 MV Hydro IPPs. The new customers will be Power Law is in force qualifies and be part of and the new market deregulated market structure is going to be together with Hydro established. The IPPs. The new market Albanian Power structure is going to be exchange and Albanian established. The Balancing Market are Albanian Power expected to be exchange and Albanian established by the end Balancing Market are of 2018. expected to be . established by the beginning of 2019. . Date 10-Mar-2011 05-Dec-2017 07-Jun-2018 31-Dec-2020 PHINDPDOTBL  Safeguarded dams and generation capacities (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 60% of Albania’s The main hydropower hydropower capacity capacity in Albania are affected by safeguards affected by safeguards measures. measures (Drin and Mat The dam geological, Rivers Cascades). seismic and geodetic The dam geological, monitoring systems are seismic and geodetic functional. monitoring systems are KESh and Albanian functional (both institution are adopting Cascades) the recommendations KESh and Albanian Safeguard of “Strengthening of the institution are adopting remedies are Safeguard measures are Institution set-up of the recommendations of implemented at Value not functional Dam Safety and “Strengthening of the Drin and Mat Emergency Institution set-up of Dam Rivers Preparedness” study. Safety and Emergency Cascades Rehabilitation works in Preparedness” study. Komani HPP are Rehabilitation works in progressing. Two units Komani HPP are (UNIT#2 and UNIT#3) progressing. Three units were re-commissioned are re-commissioned; respectively in Oct. the last one is in 2015 and Feb 2017. rehabilitation phase and The third unit (UNIT#1) will be re-commissioned will be re- by the end of Feb 2019. commissioned by the The contract for Fierza 6/12/2018 Page 3 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Energy Community of South East Europe APL Program - APL 5 for Albania DAM SAFETY (P110481) end of Feb 2018. and Komani’s Spillways The Bid Evaluation gates and Stop-logs Report (BER) is Rehabilitation works is finalized and contract signed on June 7, 2018. award for the Fierza The contract is excepted and Komani’s to be effective in July Spillways 2018 when the AF2 will Rehabilitation package be approved by is issued. The contract Albanian Parliament. is excepted to be The Rockfall danger effective in February protection works are 2018. The team is COMPLETED in all working on AF three Drin River Dams; preparation. The Komani dam toe The Rockfall danger rehabilitation works are protection is COMPLETED on July COMPLETED in all 2016. three Dams; The Komani dam rehabilitation works are COMPLETED on July 2016. Date 19-May-2008 05-Dec-2017 07-Jun-2018 31-Dec-2020 PHINDPDOTBL  Improve the dams’ operation efficiency (Gigawatt-hour (GWh), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 5.00 9.00 31.00 Date 19-May-2008 05-Dec-2017 07-Jun-2018 31-Dec-2020 Overall Comments Intermediate Results Indicators 6/12/2018 Page 4 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Energy Community of South East Europe APL Program - APL 5 for Albania DAM SAFETY (P110481) PHINDIRITBL  The rehabilitated spillways are tested and functional for very high priority investments. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The final BER for Spillway Gates Rehabilitation is finalized on October 2017 and the contract award for both lots (for Komani and Fierza HPPs) is issued. The The main hydropower contract will be signed capacity in Albania are in December 2017 affected by safeguards The AF will be provided measures (Drin and Mat to cover partially the Rivers Cascades). spillway packages; the The contract for contract will be co- Spillways Gates and financed with EBRD Stop-logs Rehabilitation which is committed to works in Fierza and use the remained Komani HPPs is signed amount in its loan. on June 7, 2018. The contract is excepted to The rehabilitation be effective in July 2018 works are rescheduled; when the AF2 will be Two units (UNIT#2 and Rehabilitation Feasibility Study (FS) approved by Albanian Value UNIT#3) were re- tested and completed Parliament. The works commissioned completed. are expected to respectively in Oct. commence in August 2015 and Feb 2017. 2018. The third unit (UNIT#1) kfW is financing the is in reassembling Spillway Gates phase and the re- Rehabilitation and new commissioning is Stop-logs in Vau Deja programed in Feb Dams; the owners 2018. The last unit engineer is assigned, (UNIT#4) will be the BDs are prepared rehabilitated and re- and issued for Bid. The commissioned by the tender is opened on end of 2018. June 4, 2018. The Komani dam rehabilitation works are COMPLETED on July 2016. Date 10-Mar-2011 05-Dec-2017 07-Jun-2018 31-Dec-2020 6/12/2018 Page 5 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Energy Community of South East Europe APL Program - APL 5 for Albania DAM SAFETY (P110481) PHINDIRITBL  High priority remedial measures completed. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The Dam Monitoring Systems are The Intermediate COMPLETED. Indicator is partially COMPLETED The additional (i) The Electro- instruments and other Mechanical facilities will be Rehabilitation works in provided by SECO; the Komani HPP are underwater inspection progressing. Three units to verify the water are re-commissioned; leakages in Komani the last one is in Dam, is ongoing. rehabilitation phase and will be re-commissioned TA contract is by the end of Feb 2019. COMPLETED. The (ii) The Dam's Albanian responsible Instrumentation and institutions are Monitoring Systems are adopting COMPLETED. The recommendations. additional instruments and other facilities are The prefeasibility study be provided by SECO; Rehabilitation Value FS completed is completed. The the underwater completed Feasibility study for inspection to verify the additional spillways in water leakages in Fierza and Komani is Komani Dam, is ongoing. COMPLETED. (iii) The Komani Dam The financial toe rehabilitation works, Agreement (Euro 20 the consolidation of million) between kFW scour area and dredging and GoA is signed on to the tailrace channel June 30, 2015. are COMPLETED. There are two (iv) The Prefeasibility components (i) and Feasibility studies rehabilitation of VDeja are both COMPLETED. spillway gates and new The recommendations stop-log and (ii) dam for new additional observation and spillways in Fierza and controlling system for Komani Dams are the cascade. provided. Date 10-Mar-2011 05-Dec-2017 07-Jun-2018 31-Dec-2020 6/12/2018 Page 6 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Energy Community of South East Europe APL Program - APL 5 for Albania DAM SAFETY (P110481) PHINDIRITBL  Remedial measures of medium priority and operational improvements completed. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 6/12/2018 Page 7 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Energy Community of South East Europe APL Program - APL 5 for Albania DAM SAFETY (P110481) The intermediate Indicator is partially COMPLETED (i). The Risk Analysis and preparation of Emergency Preparedness Plan (i). The Rock-fall (EPP) is COMPLETED; protection in Fierza the Albanian responsible HPP and Komani HPP institutions are adopting are COMPLETED the recommendations The rockfall danger provided in EPP. protection and rockfall (ii) The internal stochastic modeling organization is are completed in all COMPLETED; the new Drin Cascade Dams dam safety department is established. The (ii). The internal operational organization is improvements are completed. The new ongoing and the Internal dam safety department Operation improvements is established. The are partially Completed. operational KESH is adopting the improvements are “Strengthening of the going on. The Internal Institution set-up of Dam Operation Safety and Emergency improvements are Preparedness” study Remedial partially Completed. recommendations. measures and Value FS completed KESH is adopting the (iii) The Rock-fall operational “Strengthening of the protection in Fierza improvements Institution set-up of HPP, Komani HPP and completed. Dam Safety and Vau Deja HPP are Emergency COMPLETED Preparedness” study The rockfall danger recommendations. protection and rockfall stochastic modeling are (iii).Drin river operation completed in all Drin optimization (WBG Cascade Dam finances) - (iv) The Drin River COMPLETED SCADA system The study presents the (including the alarm results of the system) is in simulation of the implementation phase; Albanian system in that is financed by KfW order to optimize the (v).Drin river operation utilization of hydro optimization (WBG resources. finances) - COMPLETED. The study (finalized in 2012) presents the results of the simulation of the Albanian system in order to optimize the utilization of hydro resources. Date 10-Mar-2011 05-Dec-2017 07-Jun-2018 31-Dec-2020 6/12/2018 Page 8 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Energy Community of South East Europe APL Program - APL 5 for Albania DAM SAFETY (P110481) PHINDIRITBL  Safety of Dams Expert Panel (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The Expert Panel is The Expert Panel is fully fully operative; the operative; the individual Panel in full Value Terms of reference drafted individual contracts are contracts are expected operation. extended until June to be extended until 2019 December 2020 Date 10-Mar-2011 05-Dec-2017 07-Jun-2018 30-Jun-2019 PHINDIRITBL  Hydrology analysis and water management (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The intermediate Indicator is COMPLETED The Prefeasibility and The system is Feasibility studies are Value Planning stag Completed completed and both COMPLETED. The functional recommendations for new additional spillways in Fierza and Komani Dams are provided. Date 10-Mar-2011 31-Dec-2017 07-Jun-2018 30-Jun-2019 PHINDIRITBL  Emergency preparedness plan (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The intermediate indicator is COMPELTED The Risk Analysis and preparation of Emergency Value Planning stage Completed Preparedness Plan Continuation (EPP) is COMPLETED; the Albanian responsible institutions are adopting the recommendations provided in EPP. Date 10-Mar-2011 31-Dec-2015 07-Jun-2018 30-Jun-2019 6/12/2018 Page 9 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Energy Community of South East Europe APL Program - APL 5 for Albania DAM SAFETY (P110481) PHINDIRITBL  Strengthen the capacities of KESH’s dam safety department and AlbCOLD (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The intermediate Indicator is partially COMPLETED The internal organization is COMPLETED; the new dam safety department is established. The operational improvements are Value Planning stage Completed Completion ongoing and the Internal Operation improvements are partially Completed. KESH is adopting the “Strengthening of the Institution set-up of Dam Safety and Emergency Preparedness” study recommendations. Date 10-Mar-2011 31-Dec-2015 07-Jun-2018 30-Jun-2019 PHINDIRITBL  Prepare a new structure and organization for KESH Generation (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The intermediate indicator is partially Completed The internal organization is COMPLETED; the new dam safety department is established. The operational improvements are Value Planning stage Completed Implementation ongoing and the Internal Operation improvements are partially Completed. KESH is adopting the “Strengthening of the Institution set-up of Dam Safety and Emergency Preparedness” study recommendations. Date 10-Mar-2011 31-Dec-2015 07-Jun-2018 30-Jun-2019 6/12/2018 Page 10 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Energy Community of South East Europe APL Program - APL 5 for Albania DAM SAFETY (P110481) PHINDIRITBL  Financial management capacity building (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Financial management The ToR for technical assistance is prepared KESH’s annual and approved. The Bid financial There is no Progress. is opened and in statements are Value Planning stage The FM will be evaluation phase. prepared in full tendered in 2017. The target: KESH's compliance annual financial with IFRS statements and report are prepared in full compliance with IFRS. Date 10-Mar-2011 05-Dec-2017 07-Jun-2018 31-Dec-2020 PHINDIRITBL  Percentage of grievance received and addresses within agreed timeframe (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 95.00 Date 31-Jan-2018 05-Dec-2017 07-Jun-2018 31-Dec-2020 Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P110481 IBRD-81110 Effective USD 21.60 21.60 0.00 12.69 6.19 67% Not P110481 IBRD-88620 USD 14.90 14.90 0.00 0.00 14.90 0% Effective P110481 IDA-44800 Effective USD 35.30 35.30 0.00 30.92 1.21 96% Key Dates (by loan) 6/12/2018 Page 11 of 12 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Energy Community of South East Europe APL Program - APL 5 for Albania DAM SAFETY (P110481) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P110481 IBRD-81110 Effective 20-Dec-2011 17-Feb-2012 31-May-2012 30-Dec-2016 30-Jun-2019 Not P110481 IBRD-88620 25-May-2018 -- -- 31-Dec-2020 31-Dec-2020 Effective P110481 IDA-44800 Effective 30-Jun-2008 02-Jul-2008 16-Dec-2008 31-Dec-2013 30-Jun-2019 Cumulative Disbursements Restructuring History Level 2 Approved on 15-Dec-2015 ,Level 2 Approved on 27-Dec-2016 Related Project(s) P125856-DAM SAFETY - ADDITIONAL FINANCING ,P166469-Second Additional Financing for Energy Community of South East Europe APL Program APL 5 for Albania Dam Safety 6/12/2018 Page 12 of 12 Public Disclosure Copy