Albania Aide Memoire for Dam Safety Project (ECSEE-APL5) Summary of Key Issues and Progress May 8-12, 2017 1. This Aide Memoire reflects the main findings during the project supervision mission on May 8-12, 2017 and builds on and includes the findings of meeting on March 13-17, 2017. Team members 1 visited the project site, participated in technical meetings with KESH, contractors, met with co-financiers of the Dam Safety Program, and jointly with KESh reviewed project implementation progress. The team would like to thank KESh and the authorities for their assistance during the visits. This Aide-Memoire is subject to confirmation by the Bank management. Table 1. Dam Safety Project - Key Project Data Project Number P110481 Credit/Loan Number: 44800/81110 Effectiveness Date IDA Credit: 12/16/2008 Closing Date (Original): 12/31/2013 Effectiveness Date IBRD AF: 05/31/2012 Closing Date (AF): 06/30/2019 IDA Credit 4480 Credit Amount: XDR 21.7 million Total Disbursements: 19.42 million Special Commitments 0 Funds Available 2.27 million (%) Disbursement 89.5% IBRB Loan 81110 Loan Amount: EUR 15.5 million Total Disbursement Euro 3.9 million Special Commitments Euro 10.8 million Funds Available Euro 0.70 million (%) Disbursement 25.1% Date of Restructuring/AF: 11/20/2011 PDO Rating Moderately Moderately Overall IP Rating Satisfactory Satisfactory I. Summary of Findings 1. Project objectives (a) ECSEE APL5 (Dam Safety Project) supports the development of the Energy Community in accordance with the objectives of ECSEE Adaptable Program Loan (APL). The key objective is to establish integrated regional markets in South East Europe, closely linked to the internal energy market of the European Union, and complying with the rules applicable within the European Union. The progress in Albania, particularly over the last 2 years, is significant. The new Power Sector Law transposing the Third Energy Package in the electricity sector was adopted in April 2015 and entered into force on 13 June 2015. The Power Sector Law transposes the provisions required for liberalization of the electricity market in Albania. The Energy Regulatory Entity (ERE) and the Ministry of Energy and Industry started the process of harmonizing the secondary legislation required for the reforms and liberalization of the electricity market. 1 The Bank team included S. Rivera (TTL), Gazmend Daci (Sr Energy Specialist), Arben Maho (Procurement specialist), Charles Husband (Corporate Finance Specialist, consultant), and Dzenan Malovic (Hydro specialist). 1 In July 2016, the Council of Ministers adopted the market model for the regulation of Albania’s electricity market; the Council adopted an action plan for implementation. An action plan for establishing a power exchange, was also part of this package. It is envisaged to establish an organized day-ahead market by the 1st half of 2018. (b) The objectives of the Dam Safety Project remain relevant: (i) to contribute to safeguarding the hydroelectric dams on the Drin River cascade; and (ii) to improve the operational efficiency of the hydroelectric dams and enhance the stability of power supply in the regional market. The WB financed project is part of a larger Euro 81 million Dam Safety Program financed by EBRD (Euro 12.7 million), SECO (CHF 6.4 million), KFW (Euro 20 million) and World Bank (Euro 42.3 million). The World Bank supported project has two main components: (i) Physical infrastructure investments at Fierza,Komani and Vau Dejes HPPs; and (ii) Technical assistance support for the Dam Safety Program. Main Findings: Fierza & Komani’s Spillways package. The project is facing slow implementation progress on the rehabilitation of Fierza, Komani Spillways work. It is critical for KESH, and the Ministry of Energy, to take prompt action on completion of the Bid Evaluation Report—as per bidding documents and qualification criteria—on the World Bank’s financed component and, in the case of Vau Dejes, financed by KFW, in the appointment of the owner’s engineer for preparation of bidding documents. During the mission, the Bank team reiterated that all bidders need to fulfill previous experience evidence as per bidding documents. These works take an added urgency due to the combination of the reduced spillway capacity of both Fierza and Komani’s HPPs, derived from gates operation’s constraints and from tailrace limited capacity, which make them unable to safely operate under medium-flood conditions, thus risking safety of the dams and population downstream. Future World Bank additional financing to cover rehabilitation of the Fierza and Komani’s Spillways is contingent on the successful contract award to the responsive bidder and, furthermore, achievement of project’s objectives—and continuing World Bank supports--is contingent on this component being timely implemented. Komani’s E&M rehabilitation. Both KESH and the contractor (Andritz) met on December 6, 2016 and May 6-7, 2017 (see annex with list of participants) to address disagreements on implementation issues, the Bank team was asked to attend both meetings as observer. Copy of minutes of meetings is included in annex 3. Following on these meetings, unit # 3 was commissioned on February 22, 2017; the completion certificate was issued on April 4, 2017. After the failure of the contractor to put in appropriate operation the new system for thrust bearing oil coolers, the contractor and KESH reconfirmed their agreement during the May 6-7 meetings to use the old coolers in both rehabilitated units (Unit#2 and Unit#3). KESH is satisfied with the operation of the existing refurbished coolers. As next step an addendum will be made to the Contract to exclude the thrust bearing coolers. In order to ensure timely completion of the next unit, the mission encouraged the contractor to ensure timely disclosure of the dismantling report of Unit # 1 by June 30 at the latest, this has been a source of constant delays in the past. Technical assistance components have advanced: i) the Albanian Committee of large dams (AlbCOLD) has approved the Implementation of Emergency Preparedness Plan for the Drin Driver Dams, a consultation process as local community level will take place on the 2nd half of the year; ii) comments were provided. The World Bank has extended the closing date of the Project until 30 June 2019; the letter of confirmation was sent to Minister of Finance on December 27, 2016. The proposed extension of closing date to June 30, 2 2019 is needed to: (i) complete E&M rehabilitation of the remaining two turbines out of four at the Komani HPP by September 2018; and (ii) provide adequate time for contract award and implementation of the rehabilitation of the Fierza and Komani Spillways by December 2018. Completion of these activities will enable full accomplishment of the PDO. This was the third extension of the project for a cumulative total of 66 months. Also, it was noted that specific actions were to be fulfilled as conditions for project extension: (i) to complete the rehabilitation of second unit and to start the third unit; (ii) to finalize the BER and the contract award for Spillway Gates package and based on that the Additional Financing may be needed depending on the outcomes of the Spillways rebidding. The Dam monitoring systems and Institutional arrangements for Dam Safety are in operation; Komani’s Dam toe rehabilitation has been completed successfully; Komani’s Unit #2 and Unit #3 have been rehabilitated and works on the third unit (Unit#1) are progressing well; the rock fall damages protection is fully implemented; and the bid evaluation process for the Spillways rehabilitation in Komani & Fierza HPPs is underway. 2. Detailed Implementation Progress. Over the last six months’ implementation progress under the project has taken a positive turnaround as shown by:  Progress on E&M rehabilitation at Komani HPP: Mobilization of contractor’s staff, in early July 2016 was concluded with complete rehabilitation of the 2 nd unit at Komani HPP (Unit#3); A Tri-partite meeting in early May 2017 (8-9 May 2017) was held between KESH & owners’ engineer (AFC), Andritz Hydro (AH the contractor) and World Bank (observers). The minutes of meeting are shown in Annex ; the main topics discussed and agreed were: (i) KESh and AH mutually agreed to use the old coolers (properly cleaned and refurbished) for all units without additional costs to KESh; the price schedule will be amended to deduct the cost of new coolers as subsequent change order; (ii) due to the delay of replacement of the new coolers with old coolers the completion of Unit#3 was delayed and that is subject of liquidated damages; (iii) the additional time and cost requested by AH to implement Change Order Nb3 was not accepted by KESH since the change order approved by the Bank was agreed and signed by both parties; (iv) the extension time requested for Unit#1 was agreed by both parties; (v) the dismantling report was requested to be submitted in one month after the handing-over the unit but the contractor stated that this report will be submitted by mid-June 2017; (vi) a commitment was made by the contractor to resolve the issue of low pressure in shaft seal components (unit#3); and (vii) there were some other contractual, price adjustment and payment issues discussed and agreed. The meeting was concluded in amicable manner. The permission to dismantle the third unit (Unit#1) was provided by KESh on April 11, 2017; the dismantling report and expected change proposal are both in preparation phase. The contractor is mobilized on procurement and acquisition of equipment/machining for Unit#1. Poles and wicked gates are sent for refurbishment to the subcontractor outside Albania, the runner and other equipment are cleaned (sand blast) and ready for reassembling; the machinery will come to Komani HPP on early July and machining works will be carried out. Based on the pace of work reported during the mission and ongoing implementation schedule the third unit erection will start in September and be completed by February 2018. Immediately after it, the last (fourth) unit will be open for rehabilitation (Annex 3). The World Bank project team will be visiting the project site at that time to verify implementation progress and confirm implementation progress by the contractor; 3  Fierza & Komani Spillways Rehabilitation package Following three unsuccessful bids, bids were opened on October 6, 2016, five companies are under evaluation and clarification stage, and a final BER is expected to be submitted to the Bank by the end of June 2017 and the contract with recommended award in mid-August, 2017;  Strengthening of the institutional set-up of DS and adoption of the Emergency Preparedness Plan: After repeated delays, KESH management launched the process of consultation with the Albanian Committee of large dams (AlbCOLD), to be followed in 2017 by consultation with the local government authorities in areas that could be affected by an event. This process is planned to be completed by the 2nd half of 2017. On February 27, 2017, the AlbCOLD approved the Implementation of Emergency Preparedness Plan for the Drin Driver Dams (Annex 4 – The AlbCOLD Decision Nb1 date 27/02/2017– Albanian version);  Flood management Study progress: Following on the Inception Report submitted on April 2015, the consultants will present to KESH preliminary results of the pre-feasibility report on or around December 12, 2016, the presentation will be attended by both AlbCOLD members, Panel of experts, and World Bank project staff. The consultants contract (Fichtner) will be extended to September, 2017, due in part to delays by the Albanian counterpart in approving the recommended “design flood” to dimension the additional spillways in both Fierza and Komani HPPs; and (ii) the availability of hydraulic laboratories, which will carry out the hydraulic model tests for the proposed additional spillways in Fierza and Komani; and  Komani’s Dam Toe water leakage: The mission received copy of the description of the SECO’s Technical Assistance for improving and upgrading the dam safety and monitoring systems in Drin River including the leakage analysis and mitigation measures of the Komani Dam, as well as a copy of a memorandum on Komani Dam – Study of Leakage including Investigation Measures addressed to KESH by AF Consultant in June 2016 The memorandum explained AF Consultant’s intention of review and analysis of available data including geological/geotechnical investigations (geological mapping, seismic profiles, core drillings, permeability tests, interpretation etc.) and results of the piezometers installed at Komani dam. The mission recommended that: (i) KESH will request AF Consultant to undertake and submit the leakage analysis, including assessment of leakage path with tracer and analysis of piezometers data; (ii) AF Consultant should make use of monitoring data and analyses done by the Polytech University and Dam Safety Department of KESH and prepare a summary report with a time-bound action plan, including underwater investigation arrangements; and (iii) KESH’s dam safety department should increase the frequency of measurement of leakage water volume from monthly to weekly and preferably daily basis.  Safe flood Management Study The mission met with KESH to review status of the flood management consultancy by Fichtner. On December 13-14, 2016 a meeting was held between KESh PMU, KESh Dam Safety Department and the Project Panel of Experts and Fichtner consultants, comments provided by the Panel are attached. The Bank provided detailed comments on each stage of the Pre-Feasibility Report and on Supplementary Note to the Final Pre-Feasibility Report. One of the planned follow-up actions in the Supplementary Note was that KESH /Fichtner would check with the Albanian Commission on Large Dams regarding the required hydrological safety level of the hydropower dams, i.e. Fierza and Komani, in the Drin River cascade. The Bank is of the view that the Albanian Government should make the decision on the required hydrological safety level of those dams considering their potential risk and hazard as well as technical, 4 economic, and social conditions. The mission noted that no specific international standards exist which determine the required safety level of particular dams in different countries. The Feasibility Study and the designs for the new Spillways in Kmani and Fierza Dams is to be finalized by the end of September 2017. The mission recommended that KESH should request that Fichtner provides cost estimate of the spillway tunnels construction and the financial and economic analysis for both Fierza and Komani dams based on: i) design flood as 10,000 years return period and ii) check flood as PMF. The current safety level was set as 1,000 years return period for design flood and 10,000 years return period for check flood according to the Fichtner’s Pre-Feasibility Report. Given the Fichtner’s cost estimate of the two spillway tunnels construction is in the range of between around US$140 million and US$190 million, it is important that Fichtner provides the cost estimate of design options in order for the country’s key stakeholders to make informed decision for the safety and investment level. Further, since Fichtner has already prepared the rainfall-runoff and flood routing model of those dams for different return periods, the Bank considers that Fichtner should be able to easily check the required discharge capacity of new spillway tunnels and cost estimate for the aforementioned option as part of their existing contract.  Fierza’s additional investment needs While in the field, KESH’s Administrator reiterated to the mission the serious operational issues affecting two of the Turbines at Fierza, resulting in one of the units frequently being out of operation, and requested Bank support for the replacement of two of the turbines, and associated refurbishment of generators and ancillary equipment. The mission discussed with both the Minister of Energy and KESH’s administrator, options to: i) finance and carry out the assessment as part of the ongoing TA support under the Dam Safety Project; and ii) explore the possibilities to finance the rehabilitation, estimated at around euro 20 million. As next step KESH will carry out an assessment of the rehabilitation and budget needs to be followed by an official request to the Bank. The new assessment was kept under the ongoing contract with AFC and the results are expected to be provided by the end of July, 2017. Disbursement. Disbursements under the IDA credit reached the value US$ 30 million (89%) by June, 2017; IBRD funds have started to be withdrawn and the disbursements reached the value US$4 million (23%). Annex 6 provides a summary of commitments by Infrastructure Investment (works) and TA on signed contracts and funds available from IDA/IBRD support. Disbursement Table – June, 2017 5 II. Financial Management & Financial viability of KESh Financial management: - The mission discussed with KESH the existing allocation under the TA component, Financial Management, to support KESh’s efforts to establish a new financial management system, reduce the number of audit qualifications and comply with the conditions precedent for the EBRD’s second tranche loan in a timely manner. Given the importance of achieving a clean audit, under IFRS, for 2017 it was agreed that KESh would forward the draft TORs for this TA support to the Bank for its review by first half of 2017. KESH’s Financial Status - Despite no increase in energy tariffs for 2015, the audited financial results for 2015 show: a) a significant turn-around owing to above average hydrological conditions, and an increase of 31 percent in domestic sales; and b) compliance with all financial covenants. The same positive situation was reported for 2016. The audited financial statements for 2016 are not yet submitted to the Bank. In mid- 2016 the licensed for Wholelsale supplier was removed and since July 1 st, 2017, KESh is responsable only for electricty production and trade. Nest Steps Table 2. Summary of Next steps Actions Responsibility Date 1 Submit to the Bank the Dismantling Report and Change KESH June, 2017 Proposal for Unit#1 2 Submit to the Bank the final BER for Spillway Gates KESH July 1, 2017 Rehab for final review and approval 3 Submit to the Bank the Quarterly Progress Report KESH July, 2017 4. Preparation and submission of Financial Management KESH July, 2017 TORs for KESH 5 Submit to the Bank the Report for Fierza HPP KESH July 2017 6 Prepare and approve the Additional Financing WB September, 2017 7 Submit to the Bank the Final Report of Flood KESH September, 2017 Management Study Next Mission A full supervision mission and the preparation of the Additional financing will take place in September, 2017. The team expect that KESH has finalized the new contract for Spillway Gates Rehabilitation. List of Annexes Annex 1 List of People Met Annex 2 Komani HPP Rehabilitation - updated draft Implementation Schedule Annex 3 Komani HPP Rehabilitation - Minutes of Meeting – May 8-9, 2017 Annex 4 The AlbCOLD Decision Nb1 date 27/02/2017 (Albanian version) on Implementation of Emergency Preparedness Plan Annex 5 The status of the Assistance for Dam Safety Project by the other IFIs Annex 6 Summary of commitments by Infrastructure Investment and TA Annex 7 Project Results and Framework Monitoring 6 Annex 1 List of People Met Name Organization Position 1 Damian Gjiknuri Ministry of Energy Minister 2 Ilir Bejtja Ministry of Energy Deputy Minister 3 Eduart Gjokutaj Ministry of Energy Minister Adviser 4 Agron Hetoja KESh CEO 5 Fatos Bundo KESh PMU manager 6 PMU Specialists KESh PMU Staff 7 Ilir Belba KESh Generation Dep. Director 8 Arjan Jovani KESh Dam Safety Dep. Director 9 Ani Spahiu KESH Financial Department 10 Helmut Obermoser AFC Project Manager 11 Ramu Pulupula AFC Project Site Supervisor 12 Mariapillar NandakKumar AFC Project Procurement Andritz Hydro 7 Annex 2 Komani – Updated Implementation Schedule 8 Annex 3 - Komani HPP Rehabilitation - Minutes of Meeting – May 8-9, 2017 9 10 11 Annex 4 - The AlbCOLD Decision Nb1 date 27/02/2017 (Albanian version) on Implementation of Emergency Preparedness Plan 12 13 Annex 5 The status of the Assistance for Dam Safety Project by the other IFIs t SECO – Swiss Cooperation The Project Agreement between Government of Swiss Confederation, Government of Albania and Albanian Power Corporation, was amended. The Amendmen2 aims to assist KESH (i) to operate the dam safety monitoring system reliably and according to best international practices and putting in place the protection measures of dams and their appurtenant structures against rock fall at the Drin River Cascade; (ii) to improve and upgrade the Dam safety and Monitoring System and (iii) to remove the water Leakage (Seepage) at Komani Dam. 1.4 Mil CHF from 6.4 Mil CHF assigned for the implementation of Dam Safety Project, result as savings from the project implementation. Therefore, the available funds KESH intents to use in additional work for (THE PROJECT) with the aim of upgrading and completing the dam safety monitoring systems for all dams of Drin River Cascade, improving the dam monitoring process as well as analyzing and studying the leakage of Komani dam which are in line with the objectives and scope of Dam Safety Project Agreement. The tasks are listed as follows: (i) T1 - Upgrade and complete the dam geological and seismic monitoring systems that are installed in the previous phases; (ii) T2 - Improve and upgrade the dam monitoring process and maintenance of monitoring systems in all dams of Drin River Cascade through extension of data acquisition system (DAS), installation and commissioning of automatic data transfer system to WebDAVIS server, data management operation for period 2016 – 2020 and maintenance of monitoring equipment to all HPPs for 5 years; (iii) T3 - A prolongation of the current license of KESH for the software WebDavis or provision of a new license for an alternative dam monitoring software shall be provided measures in order to eliminate / reduce the leakage of the Komani Dam; (iv) T4 - Upgrade and complete the dam geodetic monitoring system that has been installed in the previous phases through supply and installation of additional geodetic monitoring system in Rragami Dam and Preparation of Deformation mappings for 5 dams and landslides; and (v) T5 - Implementation of remedial measures in order to eliminate / reduce the leakage of the Komani Dam (the underwater inspection is included). From the total amount of the grant by SECO for 6,400,000 CHF, are disbursed 4,727,734.26CHF, the outstanding amount is 1,672,265.74 CHF. From the amount 4,727,734.26CHF are financed: • Geodetic Dam Monitoring, BSF Swiss Photo, Switzerland in the amount for 638,286.90 CHF. • Dam Monitoring, Geological Monitoring and Seismic Monitoring Systems, Solexperts, Switzerland in the amount for 1,912,634.02 CHF. • Stochastic Rock Fall Modelling, ETH Zurich, Switzerland in the amount of 42,605.63 CHF. • Rockfall Protection Measures Fierza HPP in the amount of 2,134,207.71 CHF. EBRD Loan Op.43125 The Loan Agreement between the Albanian Government and EBRD for the Dam Safety Project for the purpose of providing additional financing of the Komani Hydropower Dam Safety Upgrade ratified by Albanian Parliament with the Law No.103/2013, dated 25 March 2013. EBRD agrees to finance the amount of Euro 12,700,000 to the Albanian Government. From the total amount of the EBRD loan Euro 12,700,000 are disbursed Euro 6,003,902.30 for:  Front-end commission in the amount of 127,000 EUR;  Mitigation Measures for Komani dam toe and dredging works for tailrace channel, Porr Bau, Austria the amount of Euro 5,051,700.39  Rockfall Protection Measures for Komani HPP, CAN, France, the amount of Euro 825,201.91. The outstanding amount is 6,696,097.70 EUR. EBRD is expecting the results of spillway gates rehab tender. 14 GRANT of KFW From the total amount of the grant by KFW for 320,000 EUR, are disbursed 89,328.70 EUR, the outstanding amount is 230,671.30 EUR. From the amount 89,328.70 EUR are financed: • Feasibility study for establishing a Drin river Cascade Monitoring and Dispatch Centre Tender Agent, Interbusiness Germany in the amount of 9,716.20 EUR. • Feasibility study for establishing a Drin river Cascade Monitoring and Dispatch Centre (CMDC), Fichtner Gmbh, Germany in the amount of 79,612.50 EUR. 15 Annex 6 Summary of commitments by Infrastructure Investment and TA 16 Annex 7 – PROJECT RESULTS FRAMEWORK AND MONITORING Project Development Objective (PDO) ECSEE APL: The ECSEE APL establishes the ECSEE APL facility for the implementation of priority investments in electricity generation, transmission and distribution and technical assistance for institutional / systems development and project preparation and implementation for development of a functional regional electricity market in South East Europe and its integration into the internal electricity market of the EU. 1). Contribution to safeguarding the major hydroelectric dams of Albania and 2). Improve their operation efficiency and enhance the stability of power supply for the regional electricity supply Baseline Baseline Cumulative Target Value (4) Data Revised Data PDO Level Results UOM Original Progress to date Source Core (1) in AF for Freq Respon Indicators (2) Project Start (YR 2017) (5) project 2015 2016 2017 (6) (2008) (2011) (3) 1. Regional Market Text 0% in most 0% in 8% in Albania: 8% 8% 8% Annual ERE ERE Liberalization countries most Eight HV customers are ly countries eligible and GWh 700 is the annual consumption; next year other MV customers will be in deregulated market together with Hydro IPPs. The new Power Law is in force and the new market structure is going to be established. 2. Total Safeguarded Text 0% of 0% of 60% of Albania’s 40% 50% 60% Quarter Project PMU dams and generation Albania’s Albania’s hydropower capacity ly Reports; capacity. hydropower hydropow affected by safeguards Monitori capacity er measures. ng by affected by capacity PMU safeguard affected The dam geological, Continuous Continuous Continuous measures by seismic and geodetic information information information safeguard monitoring systems are obtained from dam obtained from dam obtained from dam measures operative. monitoring monitoring monitoring systems systems systems KESh and Albanian Part of Safeguard Part of Safeguard Part of Safeguard institution are adopting measures and measures and measures and the recommendations of preparedness plan preparedness plan preparedness plan “Strengthening of the are functional. are functional are functional Institution set-up of Dam Safety and Emergency Preparedness” study. The Rockfall danger Rockfall Danger Rockfall Danger Rockfall Danger protection are Protection Protection Protection COMPLETED in all COMPLETED COMPLETED COMPLETED three Dams; The first unit The second unit The second unit Rehabilitation works in (UNIT#2) was (UNIT#3) is in the (UNIT#3) is Komani HPP are recommissioned last phase of recommissioned 17 progressing. The first unit and is in rehabilitation; the and in operation (UNIT#2) was operation. unit will be since March 2017. recommissioned in Oct. The UINIT#3 is in recommissioned in The Unit#1 is 2015. The second unit rehabilitation February 2017. dismantled on (UNIT#3) was phase. April 11, 2017. recommissioned on March 2017. The spillway gates The Revised BDs The tender was The tender was rehabilitation works is will be issued on opened in Oct 6, opened in Oct 6, retendered and the May 15, 2016 2016. The 2016. The final contract will be awarded evaluation and BER and the in December 2016. contract award are contract award are expected in expected in December 2016 August 2017. The Komani dam The works for The Komani dam The Komani dam rehabilitation works are Komani Dam will rehabilitation rehabilitation COMPLETED. be completed in works are works are June 2016. COMPLETED COMPLETED on July 2016. on July 2016. 3. Electricity Output GWh 0 0 5 GWh Two units are Monthl KESh PMU due to reduced water Two units are rehabilitated in y producti leakages and rehabilitated in Komani. Not Estimated Not estimated Komani. It is on data; electromechanical It is expected that by the expected that by power equipment end of 2017 to have 5 the end of 2017 to plant rehabilitation GWh gained due to have 5 GWh meters. elimination of the water gained due to leakages. elimination of the The rehabilitation of water leakages n E&M in Komani HPP progressing. 4. Electricity Output GWh 0 0 0 GWh Not Estimated Not Estimated Not Estimated Monthl KESh PMU due to improved An optimization study, KESh generation KESh generation KESh generation y producti reservoir optimization financed by the Bank, by Drin Cascade by Drin Cascade by Drin Cascade is on data; procedures. was carried out. The was (4,452 GWh) was (5,092 GWh) expected to be power results show the above multiyear above multiyear above multiyear plant importance of optimal average average average meters utilization of hydro (4,000GWh). (4,000GWh). (4,000GWh).N resources. Beneficiaries Project Beneficiaries Number 185,395 Not yet Estimated Not yet estimated Nor yet Estimated Of which female (%) 51% Not yet Estimated Not yet Estimated Not yet Estimated (1) Please indicate whether the indicator is a Core Sector Indicator (for additional guidance – please see http://coreindicators). (2) UOM = Unit of Measurement. (3) New indicators introduced as a part of Additional Financing, the progress to the date is used to reflect the baseline value. (4) Target value should be entered for the years data will be available, not necessary annually. Target value should normally be accumulative. If the targets refer to annual value, please indicate this in the indicator name (5) Data Source and Methodology (6) Responsibility for Data Collection. 18 Intermediate Results and Indicators Baseline Cumulative Target Value (4) Data Data UO Original Baseline Revised Freq Intermediate Progress to date Source Respons Core (1) M Project in AF for project uenc Results Indicators (YR 2017) (5) . (2) Start (2011) (3) 2015 2016 2017 y (6) (2008) 1. The Very High Text Feasibility (i) The Rehabilitation of After the detailed The tender was opened The tender was opened Quar Project PMU Remedial Study Rehabilitated spillway gates is review of previous in Oct 6, 2016. The in Oct 6, 2016. The terly Reports; Investments (FS) Spillway gates are retendered. The failures, the new evaluation and contract evaluation and contract Monitoring Completed; completed tested and Bank will bidding documents are award are expected in award are expected in by PMU functional. finance only in the preparation December 2016. August 2017. (WBG finances) Komani and process. The works will start in The works will start in Fierza Spillway An assessment of February 2017 and be October 2017 and be Gates. Additional existing spillways completed in June completed in June funds needed and from Fichtner is 2019. 2019. estimated at Euro completed. 15Mln. The BDs will be issued There is an for Bank review in agreement with mid-June, 2016 KfW to finance VauDejes HPP. (ii) Rehabilitation Contract for Contract under The rehabilitation The rehabilitation of Komani is Rehabilitation of implementation works are rescheduled; works are rescheduled; completed and all E-M equipment 30% completed the change orders are the change orders are four units are and installation First unit was approved. approved. functional. of new CMS for recommissioned and The second unit The second unit (WBG finances) Komani HPP, is operational since Oct (UNIT#3) is in the last (UNIT#3) is under 2015. phase of rehabilitation; recommissioned ang implementation. The second unit is in the unit will be the third unit rehab phase. recommissioned in (UNIT#1) is February 2017 dismantled and in the rehabilitation phase; the unit will be recommissioned in February 2018. (iii) Rehabilitation Contract for Contract is under The Komani dam The Komani dam of Dam Toe and Rehabilitation of implementation and rehabilitation works rehabilitation works Consolidation of Dam Toe and 80% of works are are COMPLETED are COMPLETED scour area in Consolidation of completed. on July 2016 on July 2016 Komani Dam is scour area in The dredging works completed. Komani Dam is and jet-grouting are (EBRD finances) under completed. implementation. 19 Baseline Cumulative Target Value (4) Data Data UO Original Baseline Revised Freq Intermediate Progress to date Source Respons Core (1) M Project in AF for project uenc Results Indicators (YR 2017) (5) . (2) Start (2011) (3) 2015 2016 2017 y (6) (2008) 2. The High Text Feasibility (i) Dam The Dam Information obtained The Dam Monitoring The Dam Monitoring Quar Project PMU Priority Remedial Study monitoring is Monitoring from dam monitoring Systems are Systems are terly Reports; Measures (FS) completed. Systems are system in continuation COMPLETED COMPLETED Monitoring Completed; completed (SECO finances) COMPLETED The additional The additional by PMU instruments and other instruments and other facilities will be facilities will be provided by SECO provided by SECO (ii) Dam Safety Dam Safety TA contract is TA contract is TA contract is procedures are procedures are COMPLETED. The COMPLETED. The COMPLETED. The completed. revised and main conclusions and Albanian responsible Albanian responsible (WBG finances) improvements recommendations are institutions are institutions are based on best presented on May adopting adopting practices are 2015. KESh and recommendations. recommendations. recommended to Albanian institution be adopted by are adopting the Albanian recommendations Institutions (iii) TA contract for flood The prefeasibility The prefeasibility Recommendations TA contract for management and new study is completed. study is completed. and estimated flood additional spillways is The Feasibility study The Feasibility study investments for management and progressing. for additional for additional addition spillway new additional The design phase spillways in Fierza and spillways in Fierza and capacities are spillways is started. Komani is ongoing. Komani is ongoing. completed. contracted and The final study will be (WBG finances) under submitted on implementation. September 2017 The financial The financial The financial (iv) Water alarm KESH, asked Agreement (Euro 20 Agreement (Euro 20 Agreement (Euro 20 system and kFW to provide million) between kFW million) between kFW million) between kFW external measures funds regarding and GoA is signed on and GoA is signed on and GoA is signed on are functional. the centralized June 30, 2015. June 30, 2015. June 30, 2015. (kFW is Dispatch-Alarm- There are two There are two There are two committed) Center for components (i) components (i) components (i) centralized rehabilitation of VDeja rehabilitation of VDeja rehabilitation of VDeja managing of the spillway gates and new spillway gates and new spillway gates and new Drin Cascade stop-log and (ii) dam stop-log and (ii) dam stop-log and (ii) dam and monitoring observation and observation and observation and the safety controlling system for controlling system for controlling system for parameters of the cascade. the cascade. the cascade. dams 20 Baseline Cumulative Target Value (4) Data Data UO Original Baseline Revised Freq Intermediate Progress to date Source Respons Core (1) M Project in AF for project uenc Results Indicators (YR 2017) (5) . (2) Start (2011) (3) 2015 2016 2017 y (6) (2008) 3. The Medium Text Feasibility (i) Rock-fall The Rock-fall COMPLETED The Rock-fall The Rock-fall Quar Project PMU Priority Remedial Study protection in all protection in The rockfall danger protection in Fierza protection in Fierza terly Reports; Measures (FS) HPPs is completed Fierza HPP and protection and rockfall HPP and Komani HPP HPP and Komani HPP Monitoring Completed. completed (SECO and EBRD Komani HPP are stochastic modeling are COMPLETED are COMPLETED by PMU finance) COMPLETED are completed in all Drin Cascade Dams (ii) Internal The internal The Internal Operation The internal The internal Operational organization is improvements are organization is organization is improvements are COMPLETED. partially Completed. COMPLETED. The COMPLETED. The completed. The new dam KESH is adopting the new dam safety new dam safety (KESh) safety “Strengthening of the department is department is department is Institution set-up of established. The established. The established. The Dam Safety and operational operational operational Emergency improvements are improvements are improvements Preparedness” study going on. going on. are going on. recommendations. (iii) Drin river The Study, The Study, financed by The Study, financed by The Study, financed by operation financed by the the Bank is the Bank is the Bank is optimization Bank is COMPLETED COMPLETED COMPLETED (WBG finances) COMPLETED 4. Safety of Dams Text Terms of Expert Panel Panel in full The Expert Panel is The Expert Panel is The Expert Panel is Quar Project PMU Expert Panel Reference established Operation fully operative; the fully operative; the fully operative; the terly Reports; Drafted individual contracts individual contracts individual contracts Monitoring are extended until Dec are extended until Dec are extended until June by PMU 2016 2016. The extension 2019. for others two years is required 5. Hydrology Text Planning Planning Stage The TA for The study for flood The Prefeasibility The Prefeasibility Quar Project PMU Analysis and Stage prefeasibility management is Study is completed in Study is completed in terly Reports; Water study, feasibility progressing; the kick May 2016; the May 2016; the Monitoring Management study is ongoing. of meeting (KESh- Feasibility study is Feasibility study is by PMU Fichtner) was held on ongoing and will be ongoing and will be June 10, 2015. completed in mid- completed in 2017. September 2017. 6. Emergency Text Planning Planning Stage The TA for The study is The study is The study is Quar Project PMU Preparedness Plan Stage strengthening of COPMELETED. COPMELETED. COPMELETED. terly Reports; dam safety The recommendations The recommendations The recommendations Monitoring program are effective and are are effective and are are effective and are by PMU. implementation going to be adopted by going to be adopted by going to be adopted by of risk studies KESH and Albanian KESH and Albanian KESH and Albanian methodologies Institutions Institutions Institutions and preparation 21 Baseline Cumulative Target Value (4) Data Data UO Original Baseline Revised Freq Intermediate Progress to date Source Respons Core (1) M Project in AF for project uenc Results Indicators (YR 2017) (5) . (2) Start (2011) (3) 2015 2016 2017 y (6) (2008) of EPP is COMPLETED. 7. Strengthen the Text Planning Planning Stage The TA for The study is The internal The internal Quar Project PMU Capacity of Stage strengthening of COPMELETED. organization is organization is terly Reports; KESH’s Dam dam safety The recommendations COMPLETED. The COMPLETED. The Monitoring Safety Department program are effective and are new dam safety new dam safety by PMU and AlbCOLD implementation going to be adopted by department is department is of risk studies KESH and Albanian established. The established. The methodologies Institutions operational operational and preparation improvements are improvements are of EPP is going on. going on. COMPLETED. 8. Prepare the new Text Planning Planning Stage KESh’s Dam KESh’s Dam Safety KESh’s Dam Safety KESh’s Dam Safety KESH KESH structure and Stage Safety Department is Department is Department is organization for Department is established and full in established and full in established and full in KESh Generation. established and operation operation operation full in operation 9. Studies for new Text Planning Planning Stage Study for After KESh’s request, The TA for Skavica is The TA for Skavica is Quar Project PMU Hydropower Stage Assessment of MoF asked the Bank to prposed to be cancelld prposed to be cancelld terly Reports; development Power cancel the intent to use and the funds available and the funds available Monitoring Generation the available funds to be reallocated in to be reallocated in by PMU Potential of under category 3 on Ctaegory2 for the Ctaegory2 for the selected study for Scavica HPP. Assessment of Fierza Assessment of Fierza Albanian rivers The funds will be HPP. HPP.d carried out by reallocated to category Sogreah France 2 for other TA. during 2009. Final Report submitted. 10. Financial Text Planning Planning Stage KESH is not There is no Progress There is no Progress There is no Progress Quar Project PMU Management Stage progressing on The FM will be The FM will be terly Reports; Capacity Building. this item. tendered in 2017 tendered in 2017 Monitoring by PMU 22