The World Bank Report No: ISR7680 Implementation Status & Results Kyrgyz Republic Emergency Recovery Project (P123044) Public Disclosure Copy Operation Name: Emergency Recovery Project (P123044) Project Stage: Implementation Seq.No: 3 Status: ARCHIVED Archive Date: 14-Oct-2012 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 28-Dec-2011 Effectiveness Date 08-Oct-2010 Revised Closing Date 31-Dec-2012 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) The objectives of this project are (a) to strengthen the Government#s financial resilience to meet the priority needs of its emergency 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 High 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 the first component, $28million was used as retroactive payment towards gas purchases fromUzbekistan,to ensure availability of supplies for winter heating and to free up Page 1 of 4 The World Bank Report No: ISR7680 budget 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 the first component is to finance textbooks, furniture, and computer for schools. Progress was made with tendering, bidding, and evaluation process during 2011, and all four contracts (two on printing books, one on procurement of furniture, and one on procurement of computers) were signed between November 2011 and March 2012. Schools furniture were delivered in May 2012 and delivery of computer equipment to the south of the country is completed. Delivery of books and remaining computers are expected during October 2012. The implementation of the first component and its disbursement is expected to complete upon delivery of remaining goods by the end of October 2012. A second component of $35m will finance equipment for the energy sector. Implementation was initially delayed due to a lengthy process in concluding the required Subsidiary Credit Agreements between the Ministry of Finance (MoF) and the energy companies who are the expected final recipients of the project funds. There were also problems with inadequate capacity at the Ministry of Energy(MoE) and its PIU (JEPIG) particularly on the procurement process. Following the signing of Subsidiary Agreements in March2011, extensive supervision by the team and the strengthened capacity of the PIU, procurement accelerated significantly since July2011 with a number of contracts already awarded/signed and goods delivered. Furthermore, JEPIG was restructured and additional funds allocated to further strengthen the management of JEPIG. This is expected to support expedited procurement as implementation advances. In line with the project development objective of restoring reliability and security of energy services, the project also provides financial support towards conducting public awareness and outreach activities on the investment needs and financial viability of the power sector. The project is expected to close at the end of 2012. 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 Kyrgyz Republic Jalal-Abad Oblasty Toktogul Results Public Disclosure Copy Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Ensure adequate budget financing for Percentage Value 10.30 13.60 13.00 education, health and social allowances for the Date 01-Dec-2009 15-May-2012 31-Dec-2012 poor, measured as percent of GDP Comments Page 2 of 4 The World Bank Report No: ISR7680 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 15-Jun-2012 31-Dec-2012 number of re-connected households Comments A total of 19000 connections All consumers are connected All consumers are connected Public Disclosure Copy 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 15-Jun-2012 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 Comments OCHP received 9.2 th. tons of fuel oil in December 2011- May 2012. Data on Financial Performance (as of 25-May-2012) Public Disclosure Copy 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-2012 P123044 IDA-H6180 Effective 30-Sep-2010 01-Oct-2010 08-Oct-2010 31-Dec-2012 31-Dec-2012 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P123044 IDA-48250 Effective XDR 25.30 25.30 0.00 17.30 8.00 68.00 Page 3 of 4 The World Bank Report No: ISR7680 P123044 IDA-H6180 Effective XDR 21.10 21.10 0.00 17.65 3.45 84.00 Disbursement Graph Public Disclosure Copy 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 to accelerate disbursement. The project team together with the Bank Education team in collaboration with the Ministry of Education discussed the issue of quality of textbooks raised as a complaint by an NGO. Extensive interviews with schools and teachers regarding quality of textbooks that the project aims to finance pointed to the conclusion that books content had already gone through quality control and deemed appropriate by teachers and schools authorities interviewed. There is broader issue of shortages of textbooks that the education team is addressing under the education policy dialogue with the government. Public Disclosure Copy Restructuring History There has been no restructuring to date. Related Projects There are no related projects. Page 4 of 4