The World Bank Implementation Status & Results Report Second District Heating Efficiency Improvement Project (P172668) Second District Heating Efficiency Improvement Project (P172668) EUROPE AND CENTRAL ASIA | Moldova | Energy & Extractives Global Practice | IBRD/IDA | Investment Project Financing | FY 2020 | Seq No: 1 | ARCHIVED on 29-Oct-2020 | ISR43522 | Implementing Agencies: Moldova Energy Projects Implementation Unit, Republic of Moldova Key Dates Key Project Dates Bank Approval Date: 18-Jun-2020 Effectiveness Date: -- Planned Mid Term Review Date: -- Actual Mid-Term Review Date: Original Closing Date: 31-Dec-2025 Revised Closing Date: 31-Dec-2025 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Development Objective of the Project is to increase the efficiency of the District Heating system in Chisinau. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Optimization of Heat and Electricity Generation:(Cost $92.00 M) Energy Efficiency Investments:(Cost $7.00 M) Project Management and Technical Assistance:(Cost $1.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO -- Satisfactory Overall Implementation Progress (IP) -- Satisfactory Overall Risk Rating -- Moderate Implementation Status and Key Decisions This is the first ISR for the project. The loan agreement was signed by the Government on September 30, 2020. The LA provides for two effectiveness conditions: (a) The Borrower, through MoEI, has adopted the Project Operational Manual (POM) in a manner satisfactory to the Bank. (b) The MoF, the MoEI, TE and MEPIU have concluded the Project Implementation Agreement in the manner satisfactory to the Bank. The draft POM prepared by MEPIU has been submitted to Termoelectrica for review and comments on October 23, 2020. The draft Implementation Agreement (IA), which has as annex the On-Lending Agreement, has been submitted to Termoelectrica for review and comments on October 16, 2020. [the tex of the drat IA was cleared by the Bank at negotiations] 10/29/2020 Page 1 of 6 The World Bank Implementation Status & Results Report Second District Heating Efficiency Improvement Project (P172668) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Moderate -- Moderate Macroeconomic Substantial -- Substantial Sector Strategies and Policies Moderate -- Moderate Technical Design of Project or Program Moderate -- Moderate Institutional Capacity for Implementation and Moderate -- Moderate Sustainability Fiduciary Moderate -- Moderate Environment and Social Moderate -- Moderate Stakeholders Moderate -- Moderate Other Moderate -- Moderate Overall Moderate -- Moderate Results PDO Indicators by Objectives / Outcomes Projected lifetime fuel savings IN00894386 ►Net annual CO2 emission reductions (Tones/year, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 603,000.00 Date 30-Apr-2020 -- 23-Oct-2020 31-Dec-2025 This indicator measures the net annual emission reduction from the new or reconstructed CHP capacity Comments: under the project in comparison with no project scenario under which electricity produced by MGRES. IN00894387 ►Projected Lifetime Fuel Savings (GJ) (Mega Joules (MJ), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 12,376,000.00 Date 31-Dec-2020 -- 23-Oct-2020 31-Dec-2025 10/29/2020 Page 2 of 6 The World Bank Implementation Status & Results Report Second District Heating Efficiency Improvement Project (P172668) This indicator will be tracked annually from reports of MEPIU. This indicator is intended to track and Comments: calculate corresponding fuel savings as the decreased gas needs of Termoelectica for heat and electricity production converted into GJ. Intermediate Results Indicators by Components Optimization of Heat and Electricity Generation IN00894388 ►New generation capacity constructed (Megawatt, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 55.00 Date 30-Apr-2020 -- 23-Oct-2020 31-Dec-2025 Comments: Power Generation capacity built under the project IN00894391 ►Additional generation capacity of electricity reconstructed (Megawatt, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 18.00 Date 30-Apr-2020 -- 23-Oct-2020 31-Dec-2025 Comments: Additional generation capacity following Turbine reconstruction in source 1 CHP IN00894393 ►Share of total heat produced in cogeneration mode annually (%) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 71.80 -- 71.80 79.30 Date 31-Dec-2020 -- 23-Oct-2020 31-Dec-2025 Comments: Share of total heat produced in cogeneration mode annually (%) IN00894395 ►CHP generation efficiency: Ratio of electricity to heat for production in cogeneration mode (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 41.80 -- 41.80 62.00 Date 31-Dec-2020 -- 23-Oct-2020 31-Dec-2025 Comments: Ratio of electricity to heat for production in cogeneration mode (annual average) IN00894396 ►Closure of CHP-1 operations (Date) (Yes/No, Custom) 10/29/2020 Page 3 of 6 The World Bank Implementation Status & Results Report Second District Heating Efficiency Improvement Project (P172668) Baseline Actual (Previous) Actual (Current) End Target Value No -- No Yes Date 30-Apr-2020 -- 23-Oct-2020 31-Dec-2025 Comments: The termination of all CHP Source-2 operations is effective (by end 2022). IN00894397 ►Self Financing Ratio (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 40.00 -- 40.00 70.00 Date 31-Dec-2020 -- 23-Oct-2020 31-Dec-2025 Ratio of annual investments (in renewal and replacement of existing infrastructure excluding new facilities Comments: under the project) to net cash flow (EBIDTA-minus debt service excluding historical gas debt) IN00894398 ►Debt Service Coverage Ratio (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.10 -- 1.10 1.10 Date 31-Dec-2020 -- 23-Oct-2020 31-Dec-2025 Comments: Estimated net revenues of TE to be at least 1.1 times the estimated debt service requirements Energy Efficiency Investments IN00894389 ►People that gained access to more energy-efficient heat-generating facilities (Number) (Core) of which Female beneficiaries (%) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 17,500.00 Date 30-Apr-2020 -- 23-Oct-2020 31-Dec-2025 The indicator tracks the number of people who benefited from upgrades in more reliable and efficient heat Comments: supply through switches from GHS to IHS. 140 IHS supply each about 50 apartments with 2-3 inhabitants in each app. Female beneficiary 53% of total. IN00894392 ►Percentage of households that reported improved quality of service in buildings where IHSs were installed (%) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 70.00 Date 30-Apr-2020 -- 23-Oct-2020 31-Dec-2025 Percentage of beneficiaries reporting better quality of hot water services and more comfortable Comments: temperatures in their households. 70% target is based on targets from similar project using same instrument to measure quality of service IN00894394 10/29/2020 Page 4 of 6 The World Bank Implementation Status & Results Report Second District Heating Efficiency Improvement Project (P172668) ►Percent of benefiting households who are satisfied with the process by which they have been consulted (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 70.00 Date 30-May-2020 -- 23-Oct-2020 31-Dec-2025 Project Management and Technical Assistance IN00894390 ►Gender-sensitive policies reviewed and strengthened. (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No -- No Yes Date 31-Dec-2020 -- 23-Oct-2020 31-Dec-2025 Comments: Baseline: No assessment (NO). Target: Gender-sensitive policies assessed and strengthened (Yes). Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed Not P172668 IBRD-91340 USD 100.00 100.00 0.00 0.00 100.00 0% Effective Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date Not P172668 IBRD-91340 18-Jun-2020 30-Sep-2020 -- 31-Dec-2025 31-Dec-2025 Effective Cumulative Disbursements 10/29/2020 Page 5 of 6 The World Bank Implementation Status & Results Report Second District Heating Efficiency Improvement Project (P172668) PBC Disbursement Achievement Disbursed amount in Disbursement % PBC ID PBC Type Description Coc PBC Amount Status Coc for PBC Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 10/29/2020 Page 6 of 6