The World Bank Implementation Status & Results Report Energy Community of South East Europe APL Program - APL 5 for Albania DAM SAFETY (P110481) Energy Community of South East Europe APL Program - APL 5 for Albania DAM SAFETY (P110481) EUROPE AND CENTRAL ASIA | Albania | Energy & Extractives Global Practice | IBRD/IDA | Investment Project Financing | FY 2008 | Seq No: 15 | ARCHIVED on 11-Jun-2019 | ISR37005 | Implementing Agencies: Albanian Power Corporation (KESH), Albania Key Dates Key Project Dates Bank Approval Date: 30-Jun-2008 Effectiveness Date: 16-Dec-2008 Planned Mid Term Review Date: 30-Nov-2015 Actual Mid-Term Review Date: 07-Apr-2016 Original Closing Date: 31-Dec-2013 Revised Closing Date: 31-Dec-2020 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The objectives of the Project are to: (i) contribute to safeguarding the hydroelectric dams on the Drin and Mat river cascades in the territory of the Borrower; and (ii) improve the operational efficiency of said hydroelectric dams and enhance the stability of power supply in the regional market. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Physical infrastructure investments:(Cost $54.81 M) Technical Assistance and Training:(Cost $10.98 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Satisfactory Overall Risk Rating Moderate Moderate Implementation Status and Key Decisions The works on the last remaining Unit No. 4 on Komani HPP have been finalized and completed. The Completion Certificate for this unit was issued by KESH on March 04, 2019, with several outstanding items from the punch list expected to be completed by contractor in line with contractual arrangements. The last contract payments will be made within the fiscal year F19, which will increase the project disbursement ratio. The electromechanical rehabilitation works for Komani HPP (the largest hydro power plant in Albania) is fully completed on March 2019; The refurbishment and rehabilitation of all four units have increased the power plant: (i) reliability (the availability of units is high and the benefit from the cascade operation during good hydrology is significant) and (ii) efficiency (water leakages are eliminated and the estimated GWh 11 lost during a year is reduced to zero). After initial mobilization and completing designs, the works on spillway rehabilitation have commenced on April 10, 2019. The Contractor has been fully mobilized and is executing works on both HPPs in parallel. Since the works on spillway rehabilitation on both HPPs are still in an early stage, a 6/11/2019 Page 1 of 11 The World Bank Implementation Status & Results Report Energy Community of South East Europe APL Program - APL 5 for Albania DAM SAFETY (P110481) more detailed assessment of their actual condition will be done on July 2019. Once the initial inspections are finalized, KESh is requested to prepare the updated time schedule. There are three TA contracts under implementation (i) project owner’s engineer contract which is extended until project closing date; (ii) project panel of expert’s contacts which are extended until the project closing date; and (iii) KESH Financial Management. which is in implementation phase Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Low Moderate Macroeconomic -- Low Low Sector Strategies and Policies -- Moderate Moderate Technical Design of Project or Program -- Moderate Moderate Institutional Capacity for Implementation and Sustainability -- Low Low Fiduciary -- Moderate Moderate Environment and Social -- Moderate Low Stakeholders -- Low Low Other -- -- -- Overall -- Moderate Moderate Results PDO Indicators by Objectives / Outcomes Regional Market Liberalization IN00700931 ►Regional Market Liberalization (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Ten customers On May 15, 2019, the connected in HV are Albanian Government qualified as eligible; the decided to establish annual consumption in the Albanian Power 2018 is expected to be Exchage (APEX). above GWh 900 which is Twelve customers The Albanian Power 15% of total demand in connected in HV are Exchange to be Value 0% in most countries Albania. At the beginning qualified as eligible; Functional and of 2018 the other 85 MV the annual Operational customers connected in consumption in 2018 35 kV were qualified but was above GWh 900 only few of them are which is 15% of total suppled on deregulated demand in Albania. At market; next year other the beginning of 2018 6/11/2019 Page 2 of 11 The World Bank Implementation Status & Results Report Energy Community of South East Europe APL Program - APL 5 for Albania DAM SAFETY (P110481) 1000 MV customers will the other 85 MV be qualifies and be part customers connected of deregulated market in 35 kV were qualified together with Hydro IPPs. but only few of them The new market structure are suppled on is going to be deregulated market. established. The . Albanian Power exchange and Albanian Balancing Market are expected to be established by the beginning of 2020.. . Date 10-Mar-2011 10-Dec-2018 07-Jun-2019 31-Dec-2020 Improve the dams’ operation efficiency IN00700933 ►Improve the dams’ operation efficiency (Gigawatt-hour (GWh), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 15.00 15.00 31.00 Date 19-May-2008 10-Dec-2018 07-Jun-2019 31-Dec-2020 The electromechanical rehabilitation works for Komani HPP (the largest hydro power plant in Albania) is fully completed on March 2019; The refurbishment and rehabilitation of all four units have increased the power plant: (i) reliability (the availability of units is high and the benefit from the cascade operation during Comments: good hydrology is significant) and (ii) efficiency (water leakages are eliminated and the estimated GWh 11 lost during a year is reduced to zero). Safeguarded dams and generation capacities IN00700932 ►Safeguarded dams and generation capacities (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The main hydropower The main hydropower capacity in Albania are capacities in Albania affected by safeguards are affected by measures (Drin and Mat safeguards measures Rivers Cascades). (Drin and Mat Rivers The dam geological, Cascades). seismic and geodetic The dam geological, monitoring systems are seismic and geodetic functional (both monitoring systems Safeguard remedies Safeguard measures are Cascades) are functional (both are implemented at Value not functional KESh and Albanian Cascades). Drin and Mat Rivers institution are adopting COMPLETED. Cascades the recommendations of The Rockfall danger “Strengthening of the protection works in all Institution set-up of Dam three Drin River Dams Safety and Emergency are COMPLETED Preparedness” study. The Komani dam toe Rehabilitation works in rehabilitation works Komani HPP are are COMPLETED on progressing. Three units July 2016 6/11/2019 Page 3 of 11 The World Bank Implementation Status & Results Report Energy Community of South East Europe APL Program - APL 5 for Albania DAM SAFETY (P110481) are re-commissioned; the KESh and Albanian last one is in institution are adopting rehabilitation phase and the recommendations will be re-commissioned of “Strengthening of by the end of March the Institution set-up of 2019. Dam Safety and The contract for Fierza Emergency and Komani’s Spillways Preparedness” study. gates and Stop-logs Rehabilitation works in Rehabilitation works is Komani HPP are signed on June 7, 2018. completed and four The contract is excepted generation units are in to be effective within year operation. 2018 COMPLETED on The Rockfall danger March 2019.. protection works are The contract for Fierza COMPLETED in all three and Komani’s Drin River Dams; Spillways Gates and The Komani dam toe Stop-logs rehabilitation works are Rehabilitation works, is COMPLETED on July in implementation 2016. phase since January . 2019. Date 19-May-2008 10-Dec-2018 07-Jun-2019 31-Dec-2020 Overall Comments PDO Albanian government adopts decision to set up power exchange. Albania informed about the Government’s decision of 15 May 2019 on establishing the power exchange (APEX). Government of Albania has adopted a decision to establish APEX (with day-ahead and intraday markets). The power exchange will be established in accordance with EU directives and as a step-in power sector reform. The power exchange will speed up the electricity market liberalization and deregulation. OST, Albania’s state-owned transmission system operator (TSO), will be in charge of setting up a company to operate the power exchange. The operator will be a joint stock company, and the Albanian government will select its shareholders. The EnC Secretariat pointed out the positive developments in the establishment of day-ahead markets in Albania, Montenegro and North Macedonia. However, the pace of reforms in the WB6 region overall must be accelerated if market coupling is to take place within the time horizon foreseen. The establishment of a legal framework harmonized with the Third Energy Package and a power exchange, the key prerequisites, are yet to be completed by all WB6 Contracting Parties. The significant contribution of the project is focused on safeguarding the hydropower dams on the Drin River Cascade in the territory of Albania. The main hydro power capacities are directly affected by safeguards remedial measures including those with very high priority, high priority and medium priority: (i) the dam geological, seismic and geodetic monitoring systems are functional; (ii) KESh and Albanian institution are implementing the strengthening of the Institution set-up of Dam Safety and Emergency Preparedness based on risk analysis; (iii) the Komani dam toe is fully reinstated; (iv) the Rockfall danger protection is implemented in three hydro power plants; (v) four units in Komani HPP are renovated and re-commissioned; (vi) the rehabilitation of Spillways gates and Stop-logs in three power plants are in implementation phase; and (vii) the recommendation for the hydrology risk management and new additional spillway capacities in Komani and Fierza HPPs are provided. 6/11/2019 Page 4 of 11 The World Bank Implementation Status & Results Report Energy Community of South East Europe APL Program - APL 5 for Albania DAM SAFETY (P110481) Drin River Cascade operational efficiency is significantly improved. The generation is increased and the Bank provided the recommendations and tool for the simulation of the Albanian system in order to optimize the utilization of hydro resources. The Drin River SCADA system (including the alarm system) is in implementation phase.The electromechanical rehabilitation works for Komani HPP (the largest hydro power plant in Albania) is fully completed on March 2019 and the refurbishment and rehabilitation of all four units have increased the power plant: (i) reliability (the availability of units is high and the benefit from the cascade operation during good hydrology is significant) and (ii) efficiency (water leakages are eliminated and the estimated GWh 11 lost during a year is reduced to zero). Intermediate Results Indicators by Components Physical Infrastructure Investments IN00700934 ►The rehabilitated spillways are tested and functional for very high priority investments (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The main hydropower capacity in Albania are affected by safeguards measures (Drin and Mat Rivers Cascades). The main hydropower The contract for Fierza capacity in Albania are and Komani’s affected by safeguards Spillways gates and measures (Drin and Mat Stop-logs Rivers Cascades). Rehabilitation works is The contract for Fierza in implementation and Komani’s Spillways phase and will be gates and Stop-logs completed by the end Rehabilitation works is of December 2020. signed on June 7, 2018. KESh and the Panel of The contract is excepted Experts would provide to be effective within year Feasibility Study (FS) their views on the Rehabilitation tested Value 2018. The contract will completed updated time schedule and completed be completed after 24-28 and strategic plan to months. mitigate the risks kfW is financing the related to operation of Spillway Gates both dams during Rehabilitation and new rehabilitation works. Stop-logs in Vau Deja Dams; the owners kfW is financing the engineer is appointed; Spillway Gates the bidder is selected, Rehabilitation and new and contract will be Stop-logs in Vau Deja signed Dams; the owners engineer is appointed; the bidder is selected, and contract will be signed Date 10-Mar-2011 10-Dec-2018 07-Jun-2019 31-Dec-2020 6/11/2019 Page 5 of 11 The World Bank Implementation Status & Results Report Energy Community of South East Europe APL Program - APL 5 for Albania DAM SAFETY (P110481) IN00700935 ►High priority remedial measures completed (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The Intermediate Indicator is The Intermediate COMPLETED Indicator is COMPLETED (i) The Electro- (i) The Electro- Mechanical Mechanical Rehabilitation works in Rehabilitation works in Komani HPP are Komani HPP are co0mpleted. Four progressing. Three units generation units are are re-commissioned; the re-commissioned and last one is in in operation since rehabilitation phase and March 2019. will be re-commissioned (ii) The Dam's by the end of Feb 2019. Instrumentation and (ii) The Dam's Monitoring Systems Instrumentation and are COMPLETED. The Monitoring Systems are additional instruments COMPLETED. The and other facilities are additional instruments be provided by SECO; and other facilities are be the underwater provided by SECO; the inspection to verify the Rehabilitation Value FS completed underwater inspection to water leakages in completed verify the water leakages Komani Dam, is in Komani Dam, is COMPLETED. COMPLETED. (iii) The Komani Dam (iii) The Komani Dam toe toe rehabilitation rehabilitation works, the works, the consolidation of scour consolidation of scour area and dredging to the area and dredging to tailrace channel are the tailrace channel COMPLETED. are COMPLETED. (iv) The Prefeasibility and (iv) The Prefeasibility Feasibility studies are and Feasibility studies both COMPLETED. The are both recommendations for COMPLETED. The new additional spillways recommendations for in Fierza and Komani new additional Dams are provided. spillways in Fierza and Komani Dams are provided. Date 10-Mar-2011 10-Dec-2018 07-Jun-2019 31-Dec-2020 IN00700936 ►Remedial measures of medium priority and operational improvements completed (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value FS completed The intermediate The intermediate Remedial measures Indicator is partially Indicator is partially and operational COMPLETED COMPLETED improvements (i). The Risk Analysis and (i). The Risk Analysis completed preparation of and preparation of Emergency Emergency Preparedness Plan Preparedness Plan (EPP) is COMPLETED; (EPP) is the Albanian responsible COMPLETED; the 6/11/2019 Page 6 of 11 The World Bank Implementation Status & Results Report Energy Community of South East Europe APL Program - APL 5 for Albania DAM SAFETY (P110481) institutions are adopting Albanian responsible the recommendations institutions are provided in EPP. adopting the (ii) The internal recommendations organization is provided in EPP. COMPLETED; the new (ii) The internal dam safety department is organization is established. The COMPLETED; the operational new dam safety improvements are department is ongoing, and the Internal established. The Operation improvements operational are partially Completed. improvements are KESH is adopting the ongoing, and the “Strengthening of the Internal Operation Institution set-up of Dam improvements are Safety and Emergency partially Completed. Preparedness” study KESH is adopting the recommendations. “Strengthening of the (iii) The Rock-fall Institution set-up of protection in Fierza HPP, Dam Safety and Komani HPP and Vau Emergency Deja HPP are Preparedness” study COMPLETED recommendations. The rockfall danger (iii) The Rock-fall protection and rockfall protection in Fierza stochastic modeling are HPP, Komani HPP completed in all Drin and Vau Deja HPP are Cascade Dam COMPLETED (iv) The Drin River The rockfall danger SCADA system protection and rockfall (including the alarm stochastic modeling system) is in are completed in all implementation phase; Drin Cascade Dam that is financed by KfW (iv) The Drin River (v).Drin river operation SCADA system optimization (WBG (including the alarm finances) - system) is in COMPLETED. The study implementation phase; (finalized in 2012) that is financed by KfW presents the results of (v).Drin river operation the simulation of the optimization (WBG Albanian system in order finances) - to optimize the utilization COMPLETED. The of hydro resources. study (finalized in 2012) presents the results of the simulation of the Albanian system in order to optimize the utilization of hydro resources. Date 10-Mar-2011 10-Dec-2018 07-Jun-2019 31-Dec-2020 IN00700937 ►Safety of Dams Expert Panel (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value Terms of reference The Expert Panel is fully The Expert Panel is Panel in full operation. drafted operative; the individual fully operative; the contracts are expected to individual contracts are 6/11/2019 Page 7 of 11 The World Bank Implementation Status & Results Report Energy Community of South East Europe APL Program - APL 5 for Albania DAM SAFETY (P110481) be extended until extended until December 2020. December 2020. Date 10-Mar-2011 10-Dec-2018 07-Jun-2019 31-Dec-2020 IN00700938 ►Hydrology analysis and water management (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The intermediate The intermediate Indicator is Indicator is COMPLETED COMPLETED The Prefeasibility and The Prefeasibility and Feasibility studies are Feasibility studies are The system is both COMPLETED. The both COMPLETED. Value Planning stag completed and recommendations for The recommendations functional new additional spillways for new additional in Fierza and Komani spillways in Fierza and Dams are provided Komani Dams are provided Date 10-Mar-2011 10-Dec-2018 07-Jun-2019 30-Jun-2019 IN00700939 ►Emergency preparedness plan (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The intermediate The intermediate indicator is indicator is COMPELTED COMPELTED The Risk Analysis and The Risk Analysis and preparation of preparation of Emergency Emergency Preparedness Plan Preparedness Plan Value Planning stage Continuation (EPP) is COMPLETED (EPP) is COMPLETED the Albanian responsible the Albanian institutions are adopting responsible institutions the recommendations are adopting the provided in EPP recommendations provided in EPP Date 10-Mar-2011 10-Dec-2018 07-Jun-2019 31-Dec-2019 IN00700940 ►Strengthen the capacities of KESH’s dam safety department and AlbCOLD (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value Planning stage The intermediate The intermediate Completion Indicator is partially Indicator is COMPLETED COMPLETED The internal organization The internal is COMPLETED; the new organization is dam safety department is COMPLETED; the established. The new dam safety operational department is improvements are established. The ongoing, and the Internal internal operational Operation improvements improvements are are partially Completed. ongoing. KESH is KESH is adopting the adopting the “Strengthening of the “Strengthening of the 6/11/2019 Page 8 of 11 The World Bank Implementation Status & Results Report Energy Community of South East Europe APL Program - APL 5 for Albania DAM SAFETY (P110481) Institution set-up of Dam Institution set-up of Safety and Emergency Dam Safety and Preparedness” study Emergency recommendations Preparedness” study recommendations Date 10-Mar-2011 10-Dec-2018 07-Jun-2019 30-Jun-2019 IN00700941 ►Prepare a new structure and organization for KESH Generation (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The intermediate The intermediate indicator is indicator is partially COMPLETED COMPLETED The internal The internal organization organization is is COMPLETED; the new COMPLETED; the dam safety department is new dam safety established. The department is operational established. The improvements are internal operational Value Planning stage ongoing, and the Internal Completion improvements are Operation improvements ongoing. KESH is are partially Completed. adopting the KESH is adopting the “Strengthening of the “Strengthening of the Institution set-up of Institution set-up of Dam Dam Safety and Safety and Emergency Emergency Preparedness” study Preparedness” study recommendations recommendations Date 10-Mar-2011 10-Dec-2018 07-Jun-2019 30-Jun-2019 IN00700942 ►Financial management capacity building (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The KESH financial management contract The KESH financial is signed, and it is in management contract is implementation phase. signed, and it is in KESH’s annual The audited Financial implementation phase. financial statements Value Planning stage Statements and The audited Financial are prepared in full auditor Management Statements and auditor compliance with IFRS Letter for 2018 are Management Letter for expected to be 2017 are submitted. submitted by the end of June 2019. Date 10-Mar-2011 10-Dec-2018 07-Jun-2019 31-Dec-2020 IN00700943 ►Percentage of grievance received and addresses within agreed timeframe (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 95.00 Date 31-Jan-2018 10-Dec-2018 07-Jun-2019 31-Dec-2020 6/11/2019 Page 9 of 11 The World Bank Implementation Status & Results Report Energy Community of South East Europe APL Program - APL 5 for Albania DAM SAFETY (P110481) Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P110481 IBRD-81110 Effective USD 21.60 21.60 0.00 15.84 2.37 87% P110481 IBRD-88620 Effective USD 14.90 14.90 0.00 0.72 14.11 4.9% P110481 IDA-44800 Effective USD 35.30 35.30 0.00 31.67 0.44 99% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P110481 IBRD-81110 Effective 20-Dec-2011 17-Feb-2012 31-May-2012 30-Dec-2016 31-Dec-2020 P110481 IBRD-88620 Effective 25-May-2018 21-Jun-2018 29-Nov-2018 31-Dec-2020 31-Dec-2020 P110481 IDA-44800 Effective 30-Jun-2008 02-Jul-2008 16-Dec-2008 31-Dec-2013 31-Dec-2020 Cumulative Disbursements 6/11/2019 Page 10 of 11 The World Bank Implementation Status & Results Report Energy Community of South East Europe APL Program - APL 5 for Albania DAM SAFETY (P110481) Restructuring History Level 2 Approved on 15-Dec-2015 ,Level 2 Approved on 27-Dec-2016 Related Project(s) P125856-DAM SAFETY - ADDITIONAL FINANCING ,P166469-Second Additional Financing for Energy Community of South East Europe APL Program APL 5 for Albania Dam Safety 6/11/2019 Page 11 of 11