The World Bank Energy Efficiency Facility for Industrial Enterprises (P118737) REPORT NO.: RES31012 DOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF ENERGY EFFICIENCY FACILITY FOR INDUSTRIAL ENTERPRISES APPROVED ON JUNE 17, 2010 TO THE REPUBLIC OF UZBEKISTAN ENERGY & EXTRACTIVES EUROPE AND CENTRAL ASIA Regional Vice President: Cyril E Muller Country Director: Lilia Burunciuc Senior Global Practice Director: Riccardo Puliti Practice Manager/Manager: Sameer Shukla Task Team Leader: Feng Liu, Pedzisayi Makumbe The World Bank Energy Efficiency Facility for Industrial Enterprises (P118737) I. BASIC DATA Product Information Project ID Financing Instrument P118737 Investment Project Financing Original EA Category Current EA Category Financial Intermediary Assessment (F) Financial Intermediary Assessment (F) Approval Date Current Closing Date 17-Jun-2010 31-Jan-2018 Organizations Borrower Responsible Agency Ministry of Economy,ASAKA The Republic of Uzbekistan Bank,Hamkorbank,Uzpromstroybank Project Development Objective (PDO) Original PDO The project objective is to improve energy efficiency in Industrial Enterprises (IEs) by designing and establishing a financing mechanism for energy saving investments. Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-52410 26-Apr-2013 18-Jul-2013 06-Dec-2013 31-Jan-2018 100.00 84.46 8.57 IDA-47450 17-Jun-2010 18-Aug-2011 15-Dec-2011 31-Jan-2016 24.20 24.23 0 The World Bank Energy Efficiency Facility for Industrial Enterprises (P118737) Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No II. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES The original IDA credit of SDR16.5 million (US$25 million equivalent), approved on June 17, 2010 and effective on December 15, 2011, introduced dedicated energy efficiency (EE) financing business concept to the Uzbek banking sector and supported the establishment of EE lending business in three participating banks (PBs) –Asaka Bank, HamkorBank, and Uzpromstroybank. The additional IDA credit of SDR 66.1 million (US$100 million equivalent), approved on April 26, 2013 and effective on December 6, 2013, expanded the reach of the credit line to more industrial enterprises (IEs) and strengthened the PBs’ EE lending capacity. The original IDA credit (IDA-47450) was closed on January 31, 2016. The additional IDA credit (IDA-52410) was scheduled to be closed on January 31, 2018. The project’s overall performance has been satisfactory. Progress towards achievement of the PDO has been rated satisfactory since effectiveness of the original IDA credit. The overall implementation progress has been rated satisfactory or moderately satisfactory since effectiveness of the additional finance. The slow disbursement of the TA component was the main reason for the moderately satisfactory rating in the last four ISRs. As of December 31, 2017, about 93 percent of the IDA credits (including the original and additional IDA credits) had been disbursed. Subprojects to be financed by the remaining IDA funds are under procurement process. Due to the recent government reorganization, two ICB tenders, which obtained Bank no-objections in June 2017, were not officially approved until mid-November 2017. Due to these unexpected delays in implementation, an extension of the closing date of the additional IDA credit is needed in order to complete the remaining subprojects. The negotiations of a proposed additional loan of US$200 million to the parent project were concluded on December 28, 2017. During the negotiations the Uzbek delegation requested the Bank to extend the closing date of the additional IDA credit (IDA-52410) and the parent project (P118737) to January 31, 2023, in alignment with the Closing Date of the proposed additional Loan. An interim Implementation Completion and Results Report (ICR) of the original and additional IDA credits was approved by the Senior Director of EEX GP on December 31, 2017. The Outcome is rated satisfactory. The Bank Performance is rated satisfactory. The M&E Quality is rated substantial. Audited project financial statements were submitted to the Bank on time. There are no overdue audit reports under the project. III. DETAILED CHANGES LOAN CLOSING DATE(S) The World Bank Energy Efficiency Facility for Industrial Enterprises (P118737) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications IDA-47450 Closed 31-Jan-2016 11-Jul-2016 IDA-52410 Effective 31-Jan-2018 31-Jan-2023 31-May-2023