The World Bank Report No: ISR10305 Implementation Status & Results Ukraine Hydropower Rehabilitation Project (P083702) Public Disclosure Copy Operation Name: Hydropower Rehabilitation Project (P083702) Project Stage: Implementation Seq.No: 12 Status: ARCHIVED Archive Date: 09-Jun-2013 Country: Ukraine Approval FY: 2005 Product Line: IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 21-Jun-2005 Original Closing Date 30-Jun-2012 Planned Mid Term Review Date 31-Dec-2008 Last Archived ISR Date 19-Dec-2012 Effectiveness Date 03-Feb-2006 Revised Closing Date 30-Jun-2014 Actual Mid Term Review Date 28-May-2009 Project Development Objectives Project Development Objective (from Project Appraisal Document) The overall program objective is to improve the security, reliability and quality of energy supply, and, therefore, facilitate unimpeded operation of the energy market, both domestically and internationally. The main objective of the Hydropower Rehabilitation Project is to improve operational stability and reliability of power supply by increasing regulating capacity, efficiency and safety of hydroelectric plants, and, therefore, facilitate unimpeded operation and opening up of the electricity market. Additional objective is to support the Ministry of Fuel and Energy and NERC in preparing and implementing the Energy Sector Reform and Development Program, including the Wholesale Electricity Market (WEM) concept. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Component A: Rehabilitation of Hydroelectric plants 207.62 Component B: Dam Safety 6.76 Component C: UHE Institutional Development 14.21 Public Disclosure Copy Component D: 2.52 Implementation of the Energy Sector Reform Dev't Program Component E: 3.03 Implementation of the WEM Concept Emission Reduction 0.00 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Page 1 of 7 The World Bank Report No: ISR10305 Previous Rating Current Rating Overall Risk Rating Moderate Moderate Public Disclosure Copy Implementation Status Overview In 2012 and the first quarter of 2013, implementation of the Hydropower Rehabilitation Project has progressed well towards meeting its development objectives. Most of the contracts are already under implementation under both the original and additional loan. Thusfar, the project has rehabilitated 34 hydropower units and increased the hydropower capacity by 125 megawatts. A conceptual plan for technical and legal harmonization with the EU Energy Market is being updated. The draft Wholesale Electricity Market Law is under review in Parliament. Locations Country First Administrative Division Location Planned Actual Ukraine Not Entered Ukraine Ukraine Not Entered Dniester Hydroelectric Power Station Ukraine Not Entered Kiev Hydroelectric Power Station Ukraine Not Entered Kaniv Hydroelectric Power Station Ukraine Not Entered Kremenchuk Hydroelectric Power Station Ukraine Not Entered Dniprodzerzinsk Hydroelectric Power Station Ukraine Not Entered Kakhovka Hydroelectric Power Station Ukraine Not Entered Kiev Pumped Storage Plant Ukraine Not Entered Dnieper Hydroelectric Station Results Project Development Objective Indicators Public Disclosure Copy Page 2 of 7 The World Bank Report No: ISR10305 Indicator Name Core Unit of Measure Baseline Current End Target A conceptual plan for technical and legal Text Value No conceptual plan for The draft WEM Law is under A conceptual plan for harmonization with EU Energy Market technical and legal review in Parliament technical and legal Public Disclosure Copy harmonization with EU energy harmonization with EU energy market. market. Date 21-Jun-2005 03-Apr-2013 30-Jun-2014 Comments The consultancy assignments The results framework (Mercados and KPMG) are indicator and end target date expected to be completed by were modified by the level 2 end-May 2013. restructuring approved on January 26, 2012. Opening of electricity market. Text Value 0% <10% Electricity market functioning based on new model. Date 21-Jun-2005 03-Apr-2013 30-Jun-2014 Comments New WEM law under public End target and end target review in April 2013. date were revised by level 2 Transition to bilateral restructuring approved on contracts to start later in 2013 January 26, 2012 Improve stability and reliability of power supply Text Value 118.1 MW - capacity increase 125 MW 225 MW capacity increase by increasing installed capacity of hydropower after the first phase plants (1998-2005) Date 21-Jun-2005 03-Apr-2013 30-Jun-2014 Comments 125 MW additional capacity This indicator was not has been added at the end of included in the indicators in 2012. the Project Restructuring approved on January 26, 2012, but is important and will continue to be monitored by the team and will be included in the next restructuring later in 2012. End target date has been changed to reflect Public Disclosure Copy closing date extension. New market rules and review of primary Text Value Not established WEM Law under review in Wholesale Electricity Market legislation Rada. Law approved, market rules, regulatory and legal framework of new energy market model established. Date 21-Jun-2005 03-Apr-2013 30-Jun-2014 Page 3 of 7 The World Bank Report No: ISR10305 Comments Expected to be approved in New indicator and end target 2013. added during level 2 restructuring approved on January 26, 2012 Public Disclosure Copy More than 70 units in UHE are refurbished. Number Value 21.00 55.00 73.00 Date 21-Jun-2005 03-Apr-2013 30-Jun-2014 Comments The number of units New PDO indicator added in refurbished is reached 55 at Level 2 Restructuring the end of 2012. approved on January 26, 2012. UHE provides ancillary services required for Text Value No Market rules under review in Regular operation of the power balancing mechanism Parlament together with WEM balancing market law Date 03-Apr-2013 30-Jun-2014 Comments Market rules are expected to New PDO indicator added be approved in 2013. during level 2 restructuring approved on January 26, 2012. Generation Capacity of Hydropower Megawatt Value 0.00 125.00 182.00 constructed or rehabilitated under the project Date 21-Jun-2005 03-Apr-2013 Comments 125 MW additional capacity has been added at the end of 2012. Generation Capacity of Hydropower Megawatt Value 0.00 125.00 182.00 rehabilitated under the project Sub Type Date 21-Jun-2005 28-Sep-2012 Breakdown Comments 125 MW additional capacity has been added at the end of 2012. Intermediate Results Indicators Public Disclosure Copy Indicator Name Core Unit of Measure Baseline Current End Target Component A: Increase in hydropower capacity Text Value 0 125 MW 182 MW installed Date 21-Jun-2005 03-Apr-2013 30-Jun-2014 Comments 125 MW additional capacity Name of indicator, end target has been added at the end of and date revised in level 2 2012. restructuring approved January 26, 2012. Page 4 of 7 The World Bank Report No: ISR10305 Component B: Dam safety monitoring system Text Value Dam safety monitoring Dam safety monitoring Completion of Kaniv, Dnieper, implemented. systems (DSMS) in operation systems (DSMS) in operation Dniester and at Kyiv and Kremenchung at Kyiv and Kremenchung Dniprodzerhynsk dam safety Dams Dams systems Public Disclosure Copy Date 21-Jun-2005 03-Apr-2013 30-Jun-2014 Comments Contract for dam safety Name of indicator, end target improvements for 4 HPPs is and date revised in level 2 under implementation and to restructuring approved be completed by end 2013. January 26, 2012. Component C: Text Value Not established The MIS contract is under Design 2010-2011; Management information system implementation. Implementation 2012-2013; Full Operation 2014 Date 21-Jun-2005 03-Apr-2013 30-Jun-2014 Comments The contract for MIS is under End target date was revised implementation to be in level 2 restructuring completed by end 2013. approved on January 26, 2012 to reflect the revised closing date. Component D: Policies in the energy sector in Text Value No The consultancy reports at Policies in accordance with accordance with EU directives. final stages of approval by the the Protocol. Ukrainian authorities. Date 21-Jun-2005 03-Apr-2013 30-Jun-2014 Comments The consultancy assignments Name of indicator, end target (Mercados and KPMG) are and date revised during level expected to be completed by 2 restructuring approved on May 2013. January 26, 2012. Component E: Restructuring of the energy Text Value Single-buyer electricity market WEM law under review in Electricity market functioning market based on the Wholesale Electricity Rada based on the new model. Market concept Date 21-Jun-2005 03-Apr-2013 30-Jun-2014 Comments The consultancy contract The name of the indicator, under this component (KEMA) end target and date were Public Disclosure Copy was completed in October revised in the level 2 2009. The WEM law is under Restructuring approved on public review and expected to January 26, 2012. be approved in Rada later in 2013. Cumulative emission reduction Text Value 375000 611,430 1000000 Sub Type Date 31-Dec-2010 03-Apr-2013 30-Jun-2014 Page 5 of 7 The World Bank Report No: ISR10305 Breakdown Comments Emission reduction achieved: Verification of 2012 emission This indicator was not one of 442,360 tons reductions shall take place in the original or restructured May 2013. indicators, but will continue to be monitored. Public Disclosure Copy Data on Financial Performance (as of 06-May-2013) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P083702 IBRD-47950 Effective 21-Jun-2005 19-Sep-2005 03-Feb-2006 30-Jun-2012 30-Jun-2014 P083702 IBRD-77910 Effective 19-Nov-2009 03-Feb-2010 03-Aug-2010 30-Jun-2012 30-Jun-2014 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P083702 IBRD-47950 Effective USD 106.00 106.00 0.00 73.70 32.30 70.00 P083702 IBRD-77910 Effective USD 60.00 60.00 0.00 12.69 47.31 21.00 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation No new decisions at this time. Page 6 of 7 The World Bank Report No: ISR10305 Restructuring History Level two Approved on 26-Jan-2012 Public Disclosure Copy Related Projects P115515-HYDROPOWER - ADDITIONAL FINANCING Public Disclosure Copy Page 7 of 7