The World Bank Report No: ISR3637 Implementation Status & Results Kazakhstan Public Disclosure Copy North-South Electricity Transmission Project (P095155) Operation Name: North-South Electricity Transmission Project (P095155) Project Stage: Implementation Seq.No: 11 Status: ARCHIVED Last Modified Date: 15-Jun-2011 Country: Kazakhstan Approval FY: 2006 Product Line: IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 27-Oct-2005 Original Closing Date 31-Dec-2009 Planned Mid Term Review Date 30-Oct-2007 Last Archived ISR Date 04-Nov-2010 Effectiveness Date 22-Dec-2005 Revised Closing Date 30-Nov-2011 Actual Mid Term Review Date 30-Nov-2007 Project Development Objectives Project Development Objective (from Project Appraisal Document) The primary development objective is to ensure that business enterprises and households in southern Kazakhstan have access to a reliable, cost effective and high quality supply of electricity. The project also aims to promote competition on the electicity market. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Construction of Ekibastuz-Agadyr Transmission Line 113.81 Extension/Modernization of Ekibastuz Substation 13.14 Extension/Modernization of Agadyr Substation 32.73 Technical Assistance 0.90 Public Disclosure Copy Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Highly Satisfactory Satisfactory Overall Risk Rating Implementation Status Overview Substation Automation and Protective Relaying (SAPR) was the only remaining physical component to be completed. In December 2010, all 67 substations under the original SAPR program were fully ("red phase") commissioned in accordance with the updated schedule under the Amendment Agreement concluded between KEGOC and Siemens. Following the last payment to the contractor (Siemens). Page 1 of 5 The World Bank Report No: ISR3637 There is an undisbursed loan balance of US$1.92 m. KEGOC will inform the Bank in due course about the proposed utilization, including for the purpose of the Alma project. Public Disclosure Copy KEGOC has continued to operate the electricity Balancing Market (BM) in trial mode. Under this regime, the BM is undergoing comprehensive performance testing using the software products Commercial Metering System, BM Siemens (internet-based) and Oracle E-Business IMS. The balance providers receive #test# invoices for the balance electricity bought on the BM. Trial operations provide useful information on the expected balance amounts to be traded and the pricing range for balance electricity. Based on feedback from BM participants, the market rules and softwares are continuously updated. Under GOK order, the BM will start live operations on Jan. 1, 2012. Results Project Development Objective Indicators Indicator Baseline Current End Target Indicator Name Value Value Value PDO: Increased volume of electricity transfer from northern 650 MW (3.9 TWh) electricity 1,350 MW (7.5 TWh) electricity 1,350 MW (7.5 TWh) electricity Kazakhstan to markets in southern Kazakhstan to reduce power deficit transfer from northern Kazakhstan transfer through North/South transfer through North-South and improve quality of electricity supply. to southern Kazakhstan through interconnector in 2010. interconnector. North-South interconnector. Date Date Type Unit of Measure Date 18-May-2011 31-Dec-2009 Custom Indicator Text 31-Dec-2005 Comment Comment Comment Indicator Baseline Current End Target Indicator Name Value Value Value PDO: Promote competition in the electricity market. Transmission tariffs inadequately Efficient transmission tariff Zonal tranmsission tariffs supportive of competition. methodology has been maintained. implemented and later (mid-2010) Date Tariff structure is transparent. Tariff replaced with a more efficient tariff level covers justifiable costs and merthodology reflecting the Type Unit of Measure 31-Dec-2005 regulated rate of return. removal of severe transmission line Custom Indicator Text Comment Date bottlenecks (thanks to subject project and other grid-enhancing Public Disclosure Copy 18-May-2011 investments). Comment Date 30-Nov-2011 Comment Page 2 of 5 The World Bank Report No: ISR3637 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value PDO: Promote competition in electricity market. No functioning real time balancing BM is operated in trial mode. Establishment of BM. market (BM). Date Date Date 18-May-2011 30-Nov-2011 Type Unit of Measure 31-Dec-2005 Comment Comment Custom Indicator Text Comment The BM has been undergoing comprehensive performance testing and fine-tuning based on market participant feedback. Under GOK order,the BM will start live operation on Jan. 1, 2012. Intermediate Results Indicators Indicator Baseline Current End Target Indicator Name Value Value Value Reduction in the frequency of emergency outages on the North/Sourh 13 4 8 interconnector. Date Date Date 31-Dec-2005 18-May-2011 30-Nov-2011 Type Unit of Measure Comment Comment Comment Custom Indicator Text Number of "first grade" Number of "first grade" technological failures. technological failures. Indicator Baseline Current End Target Indicator Name Value Value Value Reduction in trasmission losses on North-South interconector. 8.8% 5.3% 6.5% Date Date Date Public Disclosure Copy 31-Dec-2005 18-May-2011 30-Nov-2011 Type Unit of Measure Comment Comment Comment Custom Indicator Text KEGOC transmission system as a KEGOC transmission system as a whole. whole. Page 3 of 5 The World Bank Report No: ISR3637 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Susbstations completed 0.00 67.00 67.00 Date Date Date 31-Dec-2009 18-May-2011 31-Dec-2010 Type Unit of Measure Comment Comment Comment Custom Indicator Number Substations to be completed. All 67 substations fully completed All substations completed/ and commissioned ("red phase') by commissioned. end-2010. Data on Financial Performance (as of 04-Mar-2011) Financial Agreement(s) Key Dates Project Loan No. Status Approval Date Signing Date Effectiveness Date Closing Date P095155 IBRD-48050 Effective 27-Oct-2005 22-Nov-2005 22-Dec-2005 30-Nov-2011 Disbursements (in Millions) Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P095155 IBRD-48050 Effective USD 100.00 100.00 0.00 98.08 1.92 98.00 Disbursement Graph Public Disclosure Copy Page 4 of 5 The World Bank Report No: ISR3637 Key Decisions Regarding Implementation Implementation status can be disclosed. Public Disclosure Copy Restructuring History CD Approved on 19-Feb-2009 Related Projects Public Disclosure Copy Page 5 of 5