Public Disclosure Copy The World Bank Implementation Status & Results Report Second Power Transmission Project (P146788) Second Power Transmission Project (P146788) EUROPE AND CENTRAL ASIA | Ukraine | Energy & Extractives Global Practice | IBRD/IDA | Investment Project Financing | FY 2015 | Seq No: 7 | ARCHIVED on 01-Dec-2017 | ISR30488 | Implementing Agencies: Ministry of Finance, National Power Company Ukrenergo (UE), Ministry of Energy and Coal Industry of Ukraine Key Dates Key Project Dates Bank Approval Date:22-Dec-2014 Effectiveness Date:09-Jun-2015 Planned Mid Term Review Date:01-May-2018 Actual Mid-Term Review Date:-- Original Closing Date:30-Jun-2020 Revised Closing Date:30-Jun-2020 Project Development Objectives Project Development Objective (from Project Appraisal Document) To improve the reliability of power transmission system and support implementation of the Wholesale Electricity Market in Ukraine. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Rehabilitation of Transmission Substations:(Cost $268.00 M) Electricity Market Enhancement:(Cost $107.92 M) Improving of Institutional Capacity of MoECI for Reform Implementation:(Cost $2.50 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Moderately Satisfactory  Moderately Satisfactory Overall Implementation Progress (IP)  Moderately Unsatisfactory  Moderately Unsatisfactory Overall Risk Rating  Moderate  Moderate Implementation Status and Key Decisions 12/1/2017 Page 1 of 14 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Power Transmission Project (P146788) Since the last mission in June 2017, implementation has gradually improved with UE successfully concluding competitive tenders for Component 1 (Rehabilitation of Transmission Substations) and Subcomponent 2.1 (Installation of Shunt Reactors) and signed five out of six contracts totaling US$87 million for rehabilitation of six 330 kV substations. The final US$15.6 million ICB contract for rehabilitation of “Zhovtneva” substation (renamed “Nyvky”) is currently under negotiation. While the progress achieved so far is commendable, it is critical that contractors’ mobilization and commencement of works is not delayed to maintain the agreed schedule. During the Mid-Term Review of the Project, which is planned in May 2018, the status of all activities will be assessed, the Bank will consider upgrading the Implementation Progress rating to “Moderately Satisfactory” subject to UE completing the key actions agreed during the mission n October 2017. 12/1/2017 Page 2 of 14 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Power Transmission Project (P146788) 12/1/2017 Page 3 of 14 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Power Transmission Project (P146788) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  Substantial  Substantial Macroeconomic  --  Moderate  Moderate Sector Strategies and Policies  --  Moderate  Moderate Technical Design of Project or Program  --  Low  Low 12/1/2017 Page 4 of 14 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Power Transmission Project (P146788) Institutional Capacity for Implementation and Sustainability  --  Low  Low Fiduciary  --  Low  Low Environment and Social  --  Low  Moderate Stakeholders  --  Low  Low Other  --  --  -- Overall  --  Moderate  Moderate Results Project Development Objective Indicators PHINDPDOTBL  Number of outages at rehabilitated SSs is reduced (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 0.00 Date 31-May-2014 07-Jun-2017 21-Nov-2017 30-Jun-2020 PHINDPDOTBL  Sumy (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 27.00 27.00 27.00 7.00 Date 31-May-2014 07-Jun-2017 21-Nov-2017 30-Jun-2020 PHINDPDOTBL  Cherkaska (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 12.00 12.00 12.00 3.00 Date 31-May-2014 18-May-2015 21-Nov-2017 30-Jun-2020 PHINDPDOTBL  Novokyyiska (Number, Custom Breakdown) 12/1/2017 Page 5 of 14 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Power Transmission Project (P146788) Baseline Actual (Previous) Actual (Current) End Target Value 35.00 35.00 35.00 8.00 Date 31-May-2014 07-Jun-2017 21-Nov-2017 30-Jun-2020 PHINDPDOTBL  Kremenchug (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 37.00 37.00 37.00 9.00 Date 31-May-2014 07-Jun-2017 21-Nov-2017 30-Jun-2020 PHINDPDOTBL  October (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 23.00 23.00 23.00 5.00 Date 31-May-2014 07-Jun-2017 21-Nov-2017 30-Jun-2020 PHINDPDOTBL  Zhytomyrska (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 28.00 28.00 28.00 7.00 Date 31-May-2014 07-Jun-2017 21-Nov-2017 30-Jun-2020 PHINDPDOTBL  Decrease in power usage for own needs of Substations which were reconstructed (Megawatt hour(MWh), Custom) 12/1/2017 Page 6 of 14 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Power Transmission Project (P146788) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 0.00 Date 31-May-2014 07-Jun-2017 21-Nov-2017 30-Jun-2020 PHINDPDOTBL  North Region SS Cherkaska, Sumy (Megawatt hour(MWh), Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 3,299.00 -- 3,299.00 3,091.00 Date 31-May-2014 -- 21-Nov-2017 30-Jun-2020 PHINDPDOTBL  Central Region SS Novokyyivska, October, Kremenchug, Zhytomyrska (Megawatt hour(MWh), Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 3,863.00 3,863.00 3,863.00 3,546.00 Date 31-May-2014 07-Jun-2017 21-Nov-2017 30-Jun-2020 PHINDPDOTBL  Share of electricity traded on bilateral basis and day ahead market in WEM of Ukraine (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 70.00 Date 31-May-2014 07-Jun-2017 21-Nov-2017 30-Jun-2020 Overall Comments Intermediate Results Indicators 12/1/2017 Page 7 of 14 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Power Transmission Project (P146788) PHINDIRITBL  Implementation progress of SS Rehabiliation in 1. Novokyyivska 2. October 3. Kremenchug 4. Zhytomyrska 5. Cherkaska 6. Sumy (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target works have not started Works continue yet. Contracts signed on High works have not started and now Contractors are Voltage Units Value 0.00 yet. Tender Documents finalizing Design 330 kV/ are under preparation. Documents and plan Contracts first shipments in late Completed 2018. Date 31-May-2014 07-Jun-2017 21-Nov-2017 30-Jun-2020 PHINDIRITBL  Reduced operating and maintenance costs at the rehabilitated SSs: 1. Novokyyivska 2. October 3. Kremenchug 4. Zhytomyrska 5. Cherkaska 6. Sumy (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 50.00 Date 31-May-2014 -- 21-Nov-2017 30-Jun-2020 PHINDIRITBL  Electricity losses per year in the project area (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.50 0.50 0.50 0.20 Date 31-May-2014 07-Jun-2017 21-Nov-2017 30-Jun-2020 PHINDIRITBL  Electricity losses per year in the project area- Non-Technical (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 0.00 12/1/2017 Page 8 of 14 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Power Transmission Project (P146788) PHINDIRITBL  Electricity losses per year in the project area- Technical (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.50 0.50 0.50 0.20 PHINDIRITBL  Total net injected generation (Megawatt hour(MWh), Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 147,200.00 147,200.00 147,200.00 164,640.00 PHINDIRITBL  Energy Not Served reduced by 50% (Gigawatt-hour (GWh), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 0.00 Date 31-May-2014 07-Jun-2017 21-Nov-2017 30-Jun-2020 PHINDIRITBL  North Region (Gigawatt-hour (GWh), Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 7.00 7.00 7.00 50.00 Date 31-May-2014 07-Jun-2017 21-Nov-2017 30-Jun-2020 12/1/2017 Page 9 of 14 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Power Transmission Project (P146788) PHINDIRITBL  Central Region (Gigawatt-hour (GWh), Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 35.00 35.00 35.00 50.00 Date 31-May-2014 07-Jun-2017 21-Nov-2017 30-Jun-2020 PHINDIRITBL  Voltage at bus bars 35kV at the rehabilitated SSs are within operating limits +-5% (Volts, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 0.00 Date 31-May-2014 07-Jun-2017 21-Nov-2017 30-Jun-2020 PHINDIRITBL  Kamenets-Podilska (Volts, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 42.00 42.00 42.00 36.00 Date 31-May-2014 07-Jun-2017 21-Nov-2017 30-Jun-2020 PHINDIRITBL  Shepetivka (Volts, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 41.00 41.00 41.00 36.00 Date 31-May-2014 07-Jun-2017 21-Nov-2017 30-Jun-2020 12/1/2017 Page 10 of 14 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Power Transmission Project (P146788) PHINDIRITBL  Kovel (Volts, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 40.00 40.00 40.00 36.00 Date 31-May-2014 07-Jun-2017 21-Nov-2017 30-Jun-2020 PHINDIRITBL  Novovolynskaya (Volts, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 40.00 -- 40.00 35.00 Date 31-May-2014 -- 21-Nov-2017 30-Jun-2020 PHINDIRITBL  Lutsk Pivdenna (Volts, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 40.00 -- 40.00 35.00 Date 31-May-2014 -- 21-Nov-2017 30-Jun-2020 PHINDIRITBL  Implementation progress of Smart Grid (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Feasibility Study completed. UE has selected Consultant and they started preparing Tender Documents for Feasibility Study Component 2.2. with the System fully completed. UE is expectation that Tender Supplied and Selecting Consultant Documents will be ready Value Feasibility study completed Tested/ as part of Component by August 31, 2017 and Contract 2.4 for the Preparation in September tendering Completed of Tender Documents. will start. For Lot 1 and 2 Tender Documents were completed and submitted in October and now are reviewed by the Bank with 12/1/2017 Page 11 of 14 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Power Transmission Project (P146788) expectation that Tender will start by end of December. For Lot 3, 4 and 5 Tender Documents are expected to be finalized by end of March 2018. Date 31-May-2014 -- 21-Nov-2017 30-Jun-2020 PHINDIRITBL  Implementation of Balancing Market (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target After adoption and signing on new Electricity Market law The Preparation of #4493 in early June Tender Documents is 2017 Ukrenergo completed by June finalized Tender 2016. Now UE is Documents and send it Modifications to waiting for review and for Bank review of June BM. Balancing approval in Second 30, 2017. In September Market Value Feasibility study completed Reading of new tender was announced, Operational / Electricity Market law Pre-Bid meeting Balancing and Market Rules in happened in October Market early Spring 2017 and it is expected that Operational before they can tender will be completed proceed with tendering by end of January and stage. by March 2018 Bank expects UE will finalize BER and send for Bank review and NO. Date 31-May-2014 30-Jun-2017 21-Nov-2017 30-Jun-2020 PHINDIRITBL  Implementation progress of MIS (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target By end of December By end of December 2016 Feasibility Study 2016 Feasibility Study for MIS has been for MIS has been completed and completed and finalized finalized but UE but UE decided to Testing and decided to procure procure several modules staff training several modules of MIS of MIS using own funds Value Feasibility study completed completed using own funds and and therefore delayed System therefore delayed tendering for remaining operational tendering for remaining modules until 2 modules modules until 2 are procured, installed modules are procured, and Tender Documents installed and Tender are updated per this Documents are procurement. It is 12/1/2017 Page 12 of 14 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Power Transmission Project (P146788) updated per the expected that in early procurement. July 2017 UE will send revised Tender Documents for Bank review and clearance. In Mid October UE finalized first tender package on MIS and send for Bank NO and is expected to start Tender in early November 2017 and finalize BER by April/May 2018. Date 31-May-2014 -- 21-Nov-2017 30-Jun-2020 PHINDIRITBL  Tons of GHG emissions reduced or avoided based on Electricity Savings (Tones/year, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 220,700.00 Date 31-May-2014 07-Jun-2017 21-Nov-2017 30-Jun-2020 Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P146788 IBRD-84620 Effective USD 330.00 330.00 0.00 13.36 316.64 4% P146788 TF-17661 Effective USD 48.43 48.43 0.00 0.22 48.21 0% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P146788 IBRD-84620 Effective 22-Dec-2014 10-Feb-2015 09-Jun-2015 30-Jun-2020 30-Jun-2020 P146788 TF-17661 Effective 22-Dec-2014 10-Feb-2015 09-Jun-2015 30-Jun-2020 30-Jun-2020 12/1/2017 Page 13 of 14 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Second Power Transmission Project (P146788) Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 12/1/2017 Page 14 of 14 Public Disclosure Copy