The World Bank Report No: ISR13383 Implementation Status & Results India Fifth Power System Development Project (P115566) Public Disclosure Copy Operation Name: Fifth Power System Development Project (P115566) Project Stage: Implementation Seq.No: 10 Status: ARCHIVED Archive Date: 12-Mar-2014 Country: India Approval FY: 2010 Product Line: IBRD/IDA Region: SOUTH ASIA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 22-Sep-2009 Original Closing Date 30-Jun-2015 Planned Mid Term Review Date 16-Sep-2013 Last Archived ISR Date 28-Dec-2013 Effectiveness Date 08-Jan-2010 Revised Closing Date 30-Jun-2015 Actual Mid Term Review Date 26-Oct-2013 Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective is to strengthen India's electricity transmission system in order to increase reliable power exchange between regions and states. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Transmission System Stregthening Schemes 1000.00 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Moderate Moderate Public Disclosure Copy Overall Risk Rating Implementation Status Overview The mid term review mission for the project was carried out from September 16 - October 26, 2013. The outcome indicator (inter-regional power exchange in a year) is on track to meet its revised targets. It was also noted that POWERGRID had again outperformed the annual targets for the other two key performance indicators (KPI) (results indicators). As of end December 2013, the disbursement ratio stands at 41% approximately. So far in this fiscal year, POWERGRID has disbursed USD 73 million meeting the disbursement target of USD 45 million (under the low case) till December 2013. Based on these estimates, the disbursement for FY14 is expected to be in the order of USD 110-140 million (if there is no further depreciation of the the Rupee against the US dollar). Since it is still lower than the PAD estimates of 73% by end FY2013, the rating on the implementation progress remains 'moderately satisfactory'. The project development objective rating is also being downgraded from Satisfactory to Moderately Satisfactory. This shall be reviewed once the restructuring of the project is complete. Page 1 of 6 The World Bank Report No: ISR13383 This situation has been compounded by the further depreciation of the Indian rupee against the US dollar. The Bank has approved additional schemes to continue to strengthen the national transmission grid, and is working with POWERGRID, MoP and DEA on the restructuring options for the PSDP V IBRD loan, especially the structuring of a World Bank Partial Credit Guarantee (PCG) out of the current IBRD exposure. This restructuring has been on hold since February 2013, pending the preparation of a policy paper by DEA. In the interim, Public Disclosure Copy DEA has approved on January 30, 2014, the restructuring strategy for POWERGRID portfolio, i.e. to swap one scheme (agreed at the time of appraisal) of PSDP V with two schemes of PSDP IV AF, and has agreed to a two-year extension of the loan closing date of PSDP V. It is to be noted that these changes will not entail any change in the project development objective, structure and monitoring framework. Locations Country First Administrative Division Location Planned Actual India State of Maharashtra Wardha India Uttar Pradesh State of Uttar Pradesh India Rajasthan Sikar India State of Madhya Pradesh Sidhi India State of Maharashtra Solapur India State of Madhya Pradesh Seoni India State of Madhya Pradesh Satna India State of Bihar Sasaram India Rajasthan Ratangarh India Rajasthan State of Rajasthan India State of Karnataka Raichur India State of Maharashtra Pune India State of Gujarat Mundra Public Disclosure Copy India Bengal Maithon India State of Maharashtra State of Maharashtra India State of Andhra Pradesh Kurnool India State of Andhra Pradesh Krishnapatnam India State of Maharashtra Kolhapur India State of Karnataka State of Karnataka Page 2 of 6 The World Bank Report No: ISR13383 Country First Administrative Division Location Planned Actual India State of Gujarat Jetpur Public Disclosure Copy India Rajasthan Jaipur India State of Madhya Pradesh Indore India State of Madhya Pradesh Gwalior India State of Gujarat State of Gujarat India State of Andhra Pradesh Gooty India State of Madhya Pradesh Fatehpur India State of Bihar State of Bihar India State of Maharashtra Aurangabad India State of Andhra Pradesh State of Andhra Pradesh India Uttar Pradesh Allahabad India State of Madhya Pradesh Agra India Haryana Abdullapur India Haryana Panchkula Gurukul India State of Madhya Pradesh Bina India Rajasthan Barh India State of Himachal Pradesh Nathpa Jhakri India Bengal Karanpura Public Disclosure Copy India State of Bihar Kahalgaon Results Project Development Objective Indicators Page 3 of 6 The World Bank Report No: ISR13383 Indicator Name Core Unit of Measure Baseline Current End Target Growth in power exchange between and Text Value 46,027 Gwh 31,004 GWh 60,000 Gwh across regions (Millions kWh) Date 31-Mar-2009 30-Sep-2013 30-Jun-2015 Public Disclosure Copy Comments Since this ISR is being Likely to be exceeded. Annual submitted within a month of project target revised upwards the last ISR, no change in to 68,000 GWh and 70,000 these indicators is being GWh for FY2014 and recorded. FY2015, respectively. Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Growth in transmission capacity (circuit km) Text Value 71,447 ckt-km 102,035 ckm 100,000 ckt-km Date 31-Mar-2009 30-Sep-2013 30-Jun-2015 Comments Already exceeded the end Already met. Annual project year target of 100,000 ckm. target revised upwards to 107,000 ckm and 114,000 ckm for FY2014and FY2015, respectively Growth in transformation capacity (MVA) Text Value 79,522 MVA 169,563 MVA 95,000 MVA Date 31-Mar-2009 30-Sep-2013 30-Jun-2015 Comments Already exceeded the target Already met. Annual project of 95,000 MVA. target revised upwards to 185,000 MVA and 200,000 MVA for FY2014 and FY2015, respectively Implementation of ESPP - Social (percent of Text Value 0% - 100% PAPs rehabilitated) Date 31-Mar-2009 31-Dec-2013 30-Jun-2015 Comments Current data not available and Met. shall be updated once received at the end of fiscal Public Disclosure Copy year of POWERGRID Implementation of ESPP - Environment - Text Value 18.6 MW/metre - 21.5 MW/metre Cumulative transmission capacity (MW) per Date 31-Mar-2009 31-Dec-2013 30-Jun-2015 meter width of right-of-way within forest area Comments Current data not available and Likely to be met shall be updated once received at the end of fiscal year of POWERGRID Transmission lines constructed or rehabilitated Kilometers Value under the project Date 31-Mar-2009 30-Jun-2015 Page 4 of 6 The World Bank Report No: ISR13383 Comments CSI Retrofit per SEGEN - This data will be collected and Sept. 2013. updated in the next ISR Transmission lines rehabilitated under the Kilometers Value Public Disclosure Copy project Sub Type Date 31-Mar-2009 30-Jun-2015 Breakdown Comments CSI Retrofit per SEGEN - This data will be collected and Sept. 2013. updated in the next ISR Transmission lines constructed under the Kilometers Value project Sub Type Date 31-Mar-2009 30-Jun-2015 Breakdown Comments CSI Retrofit per SEGEN - This data will be collected and Sept. 2013. updated in the next ISR Data on Financial Performance (as of 14-Feb-2014) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P115566 IBRD-77870 Effective 22-Sep-2009 13-Oct-2009 08-Jan-2010 30-Jun-2015 30-Jun-2015 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P115566 IBRD-77870 Effective USD 1,000.00 1,000.00 0.00 468.72 531.28 47.00 Disbursement Graph Public Disclosure Copy Page 5 of 6 The World Bank Report No: ISR13383 Public Disclosure Copy Key Decisions Regarding Implementation Around 41% of the funds have been disbursed. Since this is slower than the level anticipated at the time of project appraisal, the overall implementation progress rating is maintained as 'moderately satisfactory'. The rating will be upgraded once the disbursement profile improves. The progress towards achievement of project development objective has been downgraded from 'satisfactory' to 'moderately satisfactory'. This shall be reviewed once the restructuring of the project is complete. DEA has approved on January 30, 2014, the restructuring strategy for POWERGRID portfolio, i.e. to swap one scheme (agreed at the time of appraisal) of PSDP V with two schemes of PSDP IV AF, and has agreed to a two- year extension of the loan closing date of PSDP V. Restructuring History There has been no restructuring to date. Related Projects There are no related projects. Public Disclosure Copy Page 6 of 6