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: 3 | ARCHIVED on 28-Oct-2020 | ISR43520 | Implementing Agencies: Ministry of Finance, Ministry of Economy and Sustainable Development, Georgian State Electrosystem Key Dates Key Project Dates Bank Approval Date: 23-May-2019 Effectiveness Date: 28-Nov-2019 Planned Mid Term Review Date: 31-Jan-2022 Actual Mid-Term Review Date: Original Closing Date: 31-Dec-2024 Revised Closing Date: 31-Dec-2024 pdoTable Project Development Objectives 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. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table 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 Substantial Moderate Implementation Status and Key Decisions The implementation of the Project is overall Satisfactory. The rating towards achievement of PDO is Satisfactory given that there are no material risks that may undermine timely achievement of the PDO. The implementation progress is Satisfactory because the key activities related to construction of the new transmission line and the substation as well as the financial recovery of GSE are progressing with no material delays. 10/28/2020 Page 1 of 7 The World Bank Implementation Status & Results Report Energy Supply Reliability and Financial Recovery (P169117) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Moderate Moderate Low Macroeconomic Moderate Moderate Low Sector Strategies and Policies Moderate Moderate Low Technical Design of Project or Program Moderate Moderate Low Institutional Capacity for Implementation and Substantial Substantial Substantial Sustainability Fiduciary Moderate Moderate Moderate Environment and Social High High High Stakeholders Substantial Substantial Substantial Other -- -- Substantial Overall Substantial Substantial Moderate Results PDO Indicators by Objectives / Outcomes Electricity supply reliability in the western part of Georgia IN00894277 ►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 3.00 4.00 0.00 Date 31-Dec-2018 15-Jan-2020 30-Jun-2020 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. IN00894280 ►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 161.00 120.00 139.00 0.00 Date 31-Dec-2018 15-Jan-2020 30-Jun-2020 31-Dec-2024 Comments: This indicator will measure improvement of electricity supply reliability in the western part of Georgia. 10/28/2020 Page 2 of 7 The World Bank Implementation Status & Results Report Energy Supply Reliability and Financial Recovery (P169117) The duration of outages in the western part of Georgia will be changing from year to year in unpredictable manner until the new line is constructed. There is no change in the Target Value of this indicator. Financial viability IN00894278 ►End of GSE rehabilitation regime (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 31-Dec-2018 15-Jan-2020 30-Jun-2020 30-Sep-2020 This indicator will measure the progress with financial recovery of GSE. Comments: IN00894351 ►Reduction of cash deficit of GSE (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 3,064,460.00 2,800,000.00 2,800,000.00 0.00 Date 31-Dec-2017 15-Jan-2020 30-Jun-2020 30-Jun-2021 This indicator will measure the adequacy of operating cash revenues of GSE (as a Group) to fully finance Comments: the required recurrent operating and maintenance costs, debt service, and taxes. IN00894352 ►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 not always network are consistent Value consistent with the consistent with the consistent with the with the principles of principles of least principles of least principles of least least economic cost economic cost economic cost planning. economic cost planning. planning. planning. Date 31-Dec-2018 15-Jan-2020 30-Jun-2020 31-Dec-2024 This indicator will measure the progress with strengthening of institutional capacity of GSE. Comments: Access to long-term commercial financing IN00894279 ►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 15-Jan-2020 30-Jun-2020 30-Jun-2021 10/28/2020 Page 3 of 7 The World Bank Implementation Status & Results Report Energy Supply Reliability and Financial Recovery (P169117) Comments: This indicator will measure progress with securing long-term commercial financing. Intermediate Results Indicators by Components Strengthening of the power transmission network IN00894353 ►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 15-Jan-2020 30-Jun-2020 29-Dec-2023 Comments: This indicator will measure the progress with construction of the target transmission line. IN00894356 ►500/220 kV Tskaltubo substation constructed (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 31-Dec-2018 15-Jan-2020 30-Jun-2020 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 IN00894354 ►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 15-Jan-2020 30-Jun-2020 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. IN00894357 ►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 15-Jan-2020 30-Jun-2020 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. IN00894358 10/28/2020 Page 4 of 7 The World Bank Implementation Status & Results Report Energy Supply Reliability and Financial Recovery (P169117) ►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 15-Jan-2020 30-Jun-2020 31-Mar-2021 This indicator will measure the progress with preparedness of GSE to access commercial financing. Comments: IN00894359 ►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 15-Jan-2020 30-Jun-2020 31-Dec-2023 Comments: This indicator will monitor efficiency of GRM under the Project. IN00894360 ►Percentage of citizens who believe that the project has established effective engagement processes (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 75.00 Date 31-Dec-2018 15-Jan-2020 30-Jun-2020 31-Dec-2023 This indicator will help to monitor progress of citizen engagement activities. Comments: IN00894361 ►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 15-Jan-2020 30-Jun-2020 31-Dec-2023 Comments: This indicator will monitor the progress on gender related activities. Support in accessing long-term commercial financing IN00894355 ►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 15-Jan-2020 30-Jun-2020 30-Sep-2022 Comments: This indicator will measure the progress with raising long-term commercial financing for GSE. 10/28/2020 Page 5 of 7 The World Bank Implementation Status & Results Report Energy Supply Reliability and Financial Recovery (P169117) 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 0.76 69.95 1.1% Key Dates (by loan) 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 Cumulative Disbursements PBC Disbursement Achievement Disbursed amount in Disbursement % PBC ID PBC Type Description Coc PBC Amount Status Coc for PBC 10/28/2020 Page 6 of 7 The World Bank Implementation Status & Results Report Energy Supply Reliability and Financial Recovery (P169117) Restructuring History There has been no restructuring to date. Related Project(s) P170552-Energy Supply Reliability and Financial Recovery Guarantee 10/28/2020 Page 7 of 7