The World Bank Report No: ISR9264 Implementation Status & Results Kyrgyz Republic Emergency Recovery Project (P123044) Public Disclosure Copy Operation Name: Emergency Recovery Project (P123044) Project Stage: Implementation Seq.No: 4 Status: ARCHIVED Archive Date: 25-Apr-2013 Country: Kyrgyz Republic Approval FY: 2011 Product Line: IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Emergency Recovery Loan Implementing Agency(ies): Key Dates Board Approval Date 30-Sep-2010 Original Closing Date 31-Dec-2012 Planned Mid Term Review Date Last Archived ISR Date 14-Oct-2012 Effectiveness Date 08-Oct-2010 Revised Closing Date 31-Dec-2013 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) (a) to strengthen the Government's financial resilience to meet the priority needs of itsemergency program, and (b) to restore reliability and security of energy services - electricity and heating - especially in Osh and Jalalabad where energy infrastructure was damaged. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Component 1. High Priority Expenditures Pertaining to Emergency Recovery and Reconstruction 30.00 Component 2. Rehabilitation and Repair of Energy Infrastructure and Networks 22.00 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Public Disclosure Copy Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status Overview The Emergency Recovery Project in the amount of $70 million was approved in September 2010 to support the government in addressing the economic and social impact of the crisis that hit the Kyrgyz Republic in April and June 2010. The project has two components (financed equally at $35 million) with the objectives of (a) to strengthen the Government's financial resilience to meet the priority needs of its emergency recovery program and (b) to restore reliability and security of energy services - electricity and heating -- especially in Osh and Jalalabad where energy infrastructure was damaged and provide adequate heating to population during the winter. Under Component 1, $28million was used as retroactive payment towards gas purchases from Uzbekistan to ensure availability of supplies for winter heating and to free up budget Page 1 of 5 The World Bank Report No: ISR9264 resources for the government to finance high priority expenditures. This money was disbursed soon after the start of the project, in early October 2010. Implementation of the remaining parts of the project were delayed due to several factors including limited capacity in the government, especially for procurement, bidding processes that had to be repeated to ensure adherence to Bank procurement guidelines, and unforeseen delays in delivery of goods on part of the suppliers. Public Disclosure Copy A sub-component of Component 1 financed textbooks, furniture, and computer for schools. The procurement process for four contracts (two on printing books, one on procurement of furniture, and one on procurement of computers) was launched during 2011 and all four contracts were signed between November 2011 and March 2012. All contracts were successfully completed by end of 2012. Schools furniture was delivered in May 2012 and the delivery of computer equipment to the south of the country and of books was completed later in 2012. The PIU received a request by the Ministry of Education to support the publication of new books; however, given the time required for the procurement process and printing it was concluded that the activities could not be completed by the revised closing date of December 31, 2013. The implementation of Component 2 on “Rehabilitation and Repair of Energy Infrastructure and Networks� was initially delayed due to the delayed conclusion of the Subsidiary Credit Agreements between the Ministry of Finance and the energy companies who are the final recipients of the project funds. To a lesser extent, there were also procurement delays. With the signing of the Subsidiary Agreements in March 2011, extensive implementation support by the Bank and strengthened capacity of the PIU, procurement has significantly accelerated since July 2011. However, the progress achieved since that time has not made for the initial delays, which made it impossible to fully implement Component 2 by the original project date of December 31, 2012. Furthermore, cost savings thanks to competitive procurement processes under Component 1 and Component 2 created opportunities for supporting additional critical investments in the energy sector. In view of the above and in response to Government request, the project was extended through December 31, 2013. As of end of March 2013, 119 contracts have been signed to the amount of about $26.8 million, out of which some $20.7 million have been disbursed. The total amount of packages that are at an advanced stage of procurement is around $5.5 million. The outcome and results indicators for Component 2 are either met, or will be fully met once the remaining funds are utilized. In order to avoid the need for further extension, no new goods or works procurements will be launched during the remainder of 2013. In response to a Government request, the project is being restructured to accommodate additional technical assistance, including in support of the CASA-1000 project that will enhance the security of power supply in the country and help mitigate winter power emergency situations. The restructuring is supposed to be completed by the end of May 2013. Locations Country First Administrative Division Location Planned Actual Kyrgyz Republic Osh Oblasty Osh Oblasty Kyrgyz Republic Osh Oblasty Osh Kyrgyz Republic Jalal-Abad Oblasty Jalal-Abad Kyrgyz Republic Gorod Bishkek Bishkek Public Disclosure Copy Kyrgyz Republic Jalal-Abad Oblasty Toktogul Results Project Development Objective Indicators Page 2 of 5 The World Bank Report No: ISR9264 Indicator Name Core Unit of Measure Baseline Current End Target Ensure adequate budget financing for Percentage Value 10.30 12.40 7.00 education, health and social allowances for the Date 01-Dec-2009 31-Dec-2012 31-Dec-2012 Public Disclosure Copy poor, measured as percent of GDP Comments Restore access to power supply in the cities of Number Value 0.00 19000.00 19000.00 Jalalabad and Osh regions as measured by Date 01-Dec-2009 02-Apr-2013 31-Dec-2012 number of re-connected households Comments A total of 19000 connections All consumers are connected All consumers are connected were destroyed. to electric power network. to electric power network. Maintain the heat supply availability in Osh in Percentage Value 0.00 100.00 100.00 2010/11 and 2011/12 winters at levels Date 01-Dec-2009 15-Jun-2012 31-Dec-2012 equivalent to corresponding periods in 2009 as Comments Heat supply from OCHP measured by percentage of available heat output started on November 3, 2011 in 2011/ 2012 winter. Total 2011/2012 winter heat supply is 153% of 2009/2010 winter. Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Arrears for teacher and doctor salaries, Amount(USD) Value 0.00 0.00 0.00 pensions, social allowances (UMB and MSB) Date 01-Dec-2009 02-Apr-2013 31-Dec-2012 Comments No accumulated arrears. Number of restored gas connections Number Value 0.00 1235.00 1224.00 Date 01-Dec-2009 15-Jun-2012 31-Dec-2012 Comments Connections of both restored and new houses/ apartments are in progress. Fuel supply for Osh CHP (tons) Number Value 0.00 9200.00 17400.00 Date 01-Dec-2009 15-Jun-2012 31-Dec-2012 Public Disclosure Copy Comments OCHP received 9.2 th. tons of fuel oil in December 2011- May 2012. Data on Financial Performance (as of 28-Mar-2013) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P123044 IDA-48250 Effective 30-Sep-2010 01-Oct-2010 08-Oct-2010 31-Dec-2012 31-Dec-2013 Page 3 of 5 The World Bank Report No: ISR9264 Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P123044 IDA-H6180 Effective 30-Sep-2010 01-Oct-2010 08-Oct-2010 31-Dec-2012 31-Dec-2013 Disbursements (in Millions) Public Disclosure Copy Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P123044 IDA-48250 Effective XDR 25.30 25.30 0.00 18.52 6.78 73.00 P123044 IDA-H6180 Effective XDR 21.10 21.10 0.00 19.60 1.50 93.00 Disbursement Graph Key Decisions Regarding Implementation Due to significant increase in number of signed contracts under the second component, the Bank has agreed to the use of the maximum balance of the government's project account Public Disclosure Copy to accelerate disbursement. The project’s closing date was recently extended by twelve months to December 31, 2013. The extension of the project will allow completion of the procurement of more complex equipment to improve the reliability of power supply and increase its resilience. The ERP is currently being restructured to allow for the provision of limited technical assistance to support the implementation of the energy sector reform plan and the Central Asia- South Asia electricity transmission project (CASA-1000). Both activities fall under the development objective of the Emergency Recovery Project. Restructuring History Level two Approved on 13-Dec-2012, Level two Approved on 08-Apr-2013 Page 4 of 5 The World Bank Report No: ISR9264 Related Projects There are no related projects. Public Disclosure Copy Public Disclosure Copy Page 5 of 5