The World Bank Report No: ISR15375 Implementation Status & Results Ukraine Hydropower Rehabilitation Project (P083702) Public Disclosure Copy Operation Name: Hydropower Rehabilitation Project (P083702) Project Stage: Implementation Seq.No: 14 Status: ARCHIVED Archive Date: 07-Jul-2014 Country: Ukraine Approval FY: 2005 Product Line: IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Specific Investment Loan Implementing Agency(ies): UkrHydroEnergo 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 26-Dec-2013 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 6 The World Bank Report No: ISR15375 Previous Rating Current Rating Overall Risk Rating Moderate Moderate Public Disclosure Copy Implementation Status Overview In 2014, implementation of the Hydropower Rehabilitation Project has progressed well towards meeting its development objectives. All contracts are already under implementation under both the original and additional loan. Thus far, the project has rehabilitated 37 hydropower units and increased the hydropower capacity by 159 megawatts. The implementation of the project will be extended by two years until June 30, 2016. The Wholesale Electricity Market Law was approved on October 24, 2013 in the Parliament and became effective on January 1, 2014. 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 6 The World Bank Report No: ISR15375 Indicator Name Core Unit of Measure Baseline Current End Target A conceptual plan for technical and legal Text Value No conceptual plan for The consultancy assignments A conceptual plan for harmonization with EU Energy Market technical and legal were closed. The Ukrainian technical and legal Public Disclosure Copy harmonization with EU energy side is in process af revising harmonization with EU energy market. the corresponding laws and market. regulations. Date 21-Jun-2005 30-May-2014 30-Jun-2014 Comments The consultancy assignments The results framework with KPMG and Mercados indicator and end target date have been completed and were modified by the level 2 closed. restructuring approved on January 26, 2012. Opening of electricity market. Text Value 0% Implmentation of the newly Electricity market functioning approved law has started. based on new model. Date 21-Jun-2005 30-May-2014 30-Jun-2014 Comments New WEM was approved and End target and end target implementation in progress. date were revised by level 2 restructuring approved on January 26, 2012 Improve stability and reliability of power supply Text Value 118.1 MW - capacity increase 159 225 MW capacity increase by increasing installed capacity of hydropower after the first phase plants (1998-2005) Date 21-Jun-2005 30-May-2014 30-Jun-2014 Comments 159 MW additional capacity This indicator was not has been added as of SMay included in the indicators in 30, 2014. 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 Public Disclosure Copy been changed to reflect closing date extension. New market rules and review of primary Text Value Not established Implementation of the new Wholesale Electricity Market legislation law has started. Law approved, market rules, regulatory and legal framework of new energy market model established. Date 21-Jun-2005 30-May-2014 30-Jun-2014 Page 3 of 6 The World Bank Report No: ISR15375 Comments Implementation to start in New indicator and end target 2014. 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 58.00 73.00 Date 21-Jun-2005 30-May-2014 30-Jun-2014 Comments Situation in May 2014, 37 New PDO indicator added in units during the project in total Level 2 Restructuring 58 units have been approved on January 26, rehabilitated. 2012. UHE provides ancillary services required for Text Value No Under preparation after Regular operation of the power balancing mechanism appproval of the new WEM balancing market law. Date 30-May-2014 30-Jun-2014 Comments New PDO indicator added during level 2 restructuring approved on January 26, 2012. Generation Capacity of Hydropower Megawatt Value 0.00 159.00 182.00 constructed or rehabilitated under the project Date 21-Jun-2005 30-May-2014 Comments 159 MW additional capacity has been added by end of May 2014. Generation Capacity of Hydropower Megawatt Value 0.00 125.00 182.00 rehabilitated under the project Sub Type Date 21-Jun-2005 30-May-2014 Breakdown Comments 159 MW additional capacity has been added by end-May 2014. Intermediate Results Indicators Public Disclosure Copy Indicator Name Core Unit of Measure Baseline Current End Target Component A: Increase in hydropower capacity Text Value 0 182 MW installed Date 21-Jun-2005 29-Oct-2013 30-Jun-2014 Comments 125 MW additional capacity Name of indicator, end target has been added by and date revised in level 2 September 2013. An restructuring approved additional 15 MW expected by January 26, 2012. end 2013. Page 4 of 6 The World Bank Report No: ISR15375 Component B: Dam safety monitoring system Text Value Dam safety monitoring Completion of Kaniv, Dnieper, implemented. systems (DSMS) in operation Dniester and at Kyiv and Kremenchung Dniprodzerhynsk dam safety Dams systems Public Disclosure Copy Date 21-Jun-2005 29-Oct-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 April 2014.. January 26, 2012. Component C: Text Value Not established Design 2010-2011; Management information system Implementation 2012-2013; Full Operation 2014 Date 21-Jun-2005 29-Oct-2013 30-Jun-2014 Comments The contract for MIS is under MIS in use in UGE implementation to be completed by April 2014. Component D: Policies in the energy sector in Text Value No Ukraine is making slow Policies in accordance with accordance with EU directives. progress according to the the Protocol. protocal Date 21-Jun-2005 30-May-2014 30-Jun-2014 Comments The consultancy assignments Name of indicator, end target with KPMG i and and date revised during level Mercadosare completed. 2 restructuring approved on January 26, 2012. Component E: Restructuring of the energy Text Value Single-buyer electricity market The new WEM law is in force Electricity market functioning market based on the Wholesale Electricity and implementaion is in based on the new model. Market concept prorgess. Date 21-Jun-2005 30-May-2014 30-Jun-2014 Comments WEM Law implementation The name of the indicator, has started in 2014. end target and date were revised in the level 2 Public Disclosure Copy Restructuring approved on January 26, 2012. Cumulative emission reduction Text Value 375000 611,430 1000000 Sub Type Date 31-Dec-2010 30-May-2014 30-Jun-2014 Breakdown Comments Emission reduction achieved: Carbon finance contract is This indicator was not one of 442,360 tons closed. the original or restructured indicators, but will continue to be monitored. Data on Financial Performance (as of 19-May-2014) Page 5 of 6 The World Bank Report No: ISR15375 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 Public Disclosure Copy 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 86.32 19.68 81.00 P083702 IBRD-77910 Effective USD 60.00 60.00 0.00 16.81 43.19 28.00 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation The implementation period of the project by has been extended by two years until June 30, 2016. Restructuring History Level two Approved on 26-Jan-2012, Level 2 CD Decision on 21-Oct-2013 Related Projects P115515-HYDROPOWER - ADDITIONAL FINANCING Page 6 of 6