The World Bank Report No: ISR16230 Implementation Status & Results Armenia Energy Efficiency Project (P116680) Public Disclosure Copy Operation Name: Energy Efficiency Project (P116680) Project Stage: Implementation Seq.No: 5 Status: ARCHIVED Archive Date: 02-Nov-2014 Country: Armenia Approval FY: 2012 Product Line: Global Environment Project Region: EUROPE AND CENTRAL ASIA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 27-Mar-2012 Original Closing Date 30-Jun-2015 Planned Mid Term Review Date 09-Jul-2014 Last Archived ISR Date 04-Apr-2014 Effectiveness Date 10-Aug-2012 Revised Closing Date 30-Jun-2015 Actual Mid Term Review Date 17-Jul-2014 Global Environmental Objectives Global Environmental Objective (from Project Appraisal Document) The project development objective is to reduce energy consumption of social and other public facilities. The global environmental objective is to decrease greenhouse gas emissions through the removal of barriers to the implementation of energy efficiency investments in the public sector. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Energy efficiency investments in public facilities 6.00 Technical assistance 1.96 Overall Ratings Previous Rating Current Rating Progress towards achievement of GEO Satisfactory Moderately Satisfactory Public Disclosure Copy Overall Implementation Progress (IP) Satisfactory Moderately Satisfactory Overall Risk Rating Moderate Moderate Implementation Status Overview Due to the steep learning curve associated with innovative project design, the overall implementation progress of the project during the two years of its effectiveness was slow. The project is therefore unlikely to meet the investment target of US$6 million and the associated targets for energy savings and emission reductions by the current closing date of June 30, 2015. However, the commissioned sub-projects have successful performance with actual energy savings and payback periods exceeding the initial estimates. In addition, the investment pipeline of the project has significantly increased and 93 prospective applications are undergoing preliminary audit by the project implementing entity, the Renewable Resources and Energy Efficiency Fund (R2E2 Fund). Page 1 of 5 The World Bank Report No: ISR16230 Locations Country First Administrative Division Location Planned Actual Armenia Not Entered Syunik’ Public Disclosure Copy Armenia Not Entered Ararat Armenia Not Entered Vayots’ Dzori Marz Armenia Not Entered Yerevan Armenia Not Entered Shirak Armenia Not Entered Lorri Armenia Not Entered Kotayk’ Armenia Not Entered Armavir Armenia Not Entered Geghark’unik’ Armenia Not Entered Aragatsotn Armenia Not Entered Tavushi Marz Results Global Environmental Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target CO2 emission reductions in retrofitted social Metric ton Value 0.00 19159.00 50549.00 and other public facilities through energy Date 03-Jul-2012 30-Jun-2014 30-Jun-2015 efficiency investments Comments Cumulative CO2 reductions For commissioned sub- over 20-year useful life of projects, the project has investments achieved higher emission Public Disclosure Copy reduction per dollar of investment than envisaged by targets. However, due to overall slow implementation progress, the project will unlikely achieve the end emission reduction target by the original closing date. Page 2 of 5 The World Bank Report No: ISR16230 Energy savings in retrofitted social and other Gigawatt-hour Value 0.00 6603.00 215.69 public facilities (GWh) Date 03-Jul-2012 30-Jun-2014 30-Jun-2015 Comments Cumulative energy savings The actual energy savings for Public Disclosure Copy over 20-year useful life of the thirteen commissioned investments sub-projects is 37 to 60 percent, higher than envisaged by the targets. However, due to overall slow implementation progress the end energy savings target by the original closing date. Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Regulations, legislative amendments, Yes/No Value No No Yes guidelines to further promote energy efficiency Date 03-Jul-2012 30-Jun-2014 30-Jun-2015 Comments The R2E2 Fund has initiated Based on the findings of the the procurement of a completed assessment, the consultant to support with the R2E2 Fund will initiate and preparation of the second complete the preparation of Energy Efficiency Action Plan the second National Energy that will aim to address the Efficiency Action Plan for legal, regulatory, financing 2015-2020. and institutional gaps identified during the implementation of the first Energy Efficiency Action Plan (2011-2013). Number of public sector projects commissioned Number Value 0.00 27.00 85.00 Date 03-Jul-2012 30-Jun-2014 30-Jun-2015 Comments Since project effectiveness, Based on the revised Public Disclosure Copy energy efficiency retrofits in investment target and the twenty seven public buildings average size of implemented have been implemented. sub-projects, the number of projects commissioned is revised from 121 to 85. Cumulative investments in social and other Amount(USD) Value 0.00 2973680.00 6000000.00 public facilities Date 03-Jul-2012 30-Jun-2014 30-Jun-2015 Comments Cumulative investments of Based on the implementation nineteen sub-projects for progress of the first eighteen which the R2E2 Fund has months, the investment target Page 3 of 5 The World Bank Report No: ISR16230 signed Energy Service for the project closure is Agreements. revised from US$8.7 million to US$6.0 million. However, this will not impact the originally Public Disclosure Copy set target outcome indicators for energy saving and emission reduction. Data on Financial Performance (as of 27-Jun-2014) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P116680 TF-12163 Effective 20-Apr-2012 20-Apr-2012 10-Aug-2012 30-Jun-2015 30-Jun-2015 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P116680 TF-12163 Effective USD 1.82 1.82 0.00 0.76 1.06 42.00 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation To ensure that the project is completed successfully and the investment and outcome targets are achieved, the Ministry of Energy and Natural Resources and the R2E2 Fund need to ensure that: (i) the Board of Trustees of the Fund approves the eligible sub-projects for implementation soon after these are audited, found eligible and Initiation Agreements with the Page 4 of 5 The World Bank Report No: ISR16230 R2E2 Fund are signed; (ii) the implementation of eligible sub-projects is closely coordinated with the Ministries of Health, Education, other government bodies and municipalities to ensure that the public facilities remain committed to the project and do not withdraw their applications at the procurement stage; and (iii) the audits for prospective applications are completed and Initiation Agreements signed by mid-October 2014. Public Disclosure Copy Restructuring History There has been no restructuring to date. Related Projects There are no related projects. Public Disclosure Copy Page 5 of 5