The World Bank Implementation Status & Results Report Electricity Sector Modernization and Sustainability Project (P177871) Electricity Sector Modernization and Sustainability Project (P177871) EUROPE AND CENTRAL ASIA | Kyrgyz Republic | Energy & Extractives Global Practice | IBRD/IDA | Investment Project Financing | FY 2022 | Seq No: 2 | ARCHIVED on 24-Apr-2023 | ISR55829 | Implementing Agencies: Kyrgyz Republic, Ministry of Energy Key Dates Key Project Dates Bank Approval Date: 23-Jun-2022 Effectiveness Date: -- Planned Mid Term Review Date: -- Actual Mid-Term Review Date: Original Closing Date: 31-Dec-2027 Revised Closing Date: 31-Dec-2027 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) To improve the financial performance and operational reliability of the electricity sector. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Component 1. Rehabilitation and Upgrade of Distribution Networks:(Cost $10.00 M) Component 2. Digitalization of Distribution Network:(Cost $43.00 M) Component 3. Strengthening Social Protection Systems:(Cost $3.00 M) Component 4. Institutional Development and Project Implementation Support:(Cost $2.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions The Project was approved by the Board on June 23, 2022, with an IDA credit in the amount of SDR 18.6 million (US$25 million equivalent) and an IDA grant in the amount of SDR 18.6 million (US$25 million equivalent). The Financing Agreement was signed on October 5, 2022 and the Grant Agreement on January 31, 2023. During the mission in March 2023, the Bank team reviewed progress made towards meeting effectiveness conditions and discussed an action plan with client to ensure the completion of all conditions within the extended deadline June 2, 2023. 4/24/2023 Page 1 of 7 The World Bank Implementation Status & Results Report Electricity Sector Modernization and Sustainability Project (P177871) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Substantial Substantial Macroeconomic High High High Sector Strategies and Policies Substantial Substantial Substantial Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and Substantial Substantial Substantial Sustainability Fiduciary Substantial Substantial Substantial Environment and Social Substantial Substantial Substantial Stakeholders Moderate Moderate Moderate Other -- -- -- Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes Cost recovery tariff trajectory established and implemented over time IN01280815 ►Cost recovery tariff trajectory established and implemented over time (Text, Custom, PBC) Baseline Actual (Previous) Actual (Current) End Target Tariff setting Tariff setting Tariff setting Energy tariffs adjusted methodology without methodology without methodology without in accordance with Value principles of full cost- principles of full cost- principles of full cost- new tariff methodology recovery applied recovery applied recovery applied and MTTP Date 19-Sep-2022 23-Sep-2022 13-Apr-2023 30-Sep-2027 This PBC aims to support the gradual and systematic adjustment of energy tariffs toward cost recovery, Comments: as per a new tariff methodology and MTTP to be adopted Reduction of average duration of interruptions per customer for the project area IN01280813 ►Reduction of average duration of interruptions per customer for the project area (Minutes, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 179.00 4/24/2023 Page 2 of 7 The World Bank Implementation Status & Results Report Electricity Sector Modernization and Sustainability Project (P177871) Date 19-Sep-2022 23-Sep-2022 13-Apr-2023 30-Sep-2027 Change in the duration of total interruptions experienced by a representative customer in a year. Also can Comments: be calculated as the change in the product of SAIDI and annual SAIFI. Cash collected per kWh of distributed electricity IN01280814 ►Cash collected per kWh of distributed electricity (KGS/kWh) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.37 1.37 1.37 2.00 Date 19-Sep-2022 23-Sep-2022 13-Apr-2023 30-Sep-2027 Comments: Amount of cash collected per kWh of distributed electricity Intermediate Results Indicators by Components Rehabilitation and Upgrade of Distribution Networks IN01280831 ►Distribution lines upgraded or rehabilitated under the project (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 350.00 Date 19-Sep-2022 23-Sep-2022 13-Apr-2023 30-Sep-2027 Comments: As stated by the indicator name IN01280835 ►Construction and rehabilitation of transformer substations 6-10/ 0.4 kV (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 1,000.00 Date 19-Sep-2022 23-Sep-2022 13-Apr-2023 30-Sep-2027 Comments: As stated by the indicator name IN01280838 ►Net greenhouse gas (GHG) emissions (Metric tons/year, Corporate) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 34,500.00 Date 19-Sep-2022 23-Sep-2022 13-Apr-2023 30-Sep-2027 4/24/2023 Page 3 of 7 The World Bank Implementation Status & Results Report Electricity Sector Modernization and Sustainability Project (P177871) Project net greenhouse gas (GHG) emissions are calculated as an annual average of the difference between project gross (absolute) emissions aggregated over the economic lifetime of the project and the Comments: emissions of a baseline (counterfactual) scenario aggregated over the same time horizon. They are reported in metric tons of carbon dioxide equivalent per year. Digitalization of Distribution Network IN01280832 ►Advanced metering systems installed under the Project (Cumulative) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 590,000.00 Date 19-Sep-2022 23-Sep-2022 13-Apr-2023 30-Sep-2027 Comments: Advanced meters include both single-phase and three-phase smart meters IN01280836 ►Installation of advanced energy information and management systems under the Project (cumulative) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 2.00 Date 19-Sep-2022 23-Sep-2022 23-Sep-2022 30-Sep-2027 Comments: Installation of advanced energy information and management systems under the Project Strengthening Social Protection Systems IN01280834 ►Social protection measures adopted to protect extremely poor and vulnerable residential consumers from energy tariff increase (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Social protection Social protection system strengthened Social protection Social protection measures not through increased measures not sufficient measures not sufficient sufficient to protect the efficiency and to protect the extremely to protect the extremely Value extremely poor and responsiveness of the poor and vulnerable poor and vulnerable vulnerable households UBK program to households from gradual households from gradual from gradual tariff energy tariff increases tariff adjustments tariff adjustments adjustments and modernized IT systems Date 30-Sep-2022 23-Sep-2022 23-Sep-2022 30-Sep-2027 It measures the adoption of social mitigation measures identified by the technical assistance to protect the Comments: extremely poor and vulnerable households from gradual tariff adjustments Institutional Development and Project Implementation Support IN01280833 ►Improved sector governance and strengthened institutional capacity, including strategic power sector planning framework established and implemented (Text, Custom, PBC) Baseline Actual (Previous) Actual (Current) End Target 4/24/2023 Page 4 of 7 The World Bank Implementation Status & Results Report Electricity Sector Modernization and Sustainability Project (P177871) Improved sector Sector planning Sector planning Sector planning governance and Value conducted on an ad-hoc conducted on an ad-hoc conducted on an ad- strengthened basis. basis. hoc basis. institutional capacity Date 19-Sep-2022 23-Sep-2022 23-Sep-2022 30-Sep-2027 This PBC monitors the strengthening of sector governance and institutional capacity, including the power Comments: sector planning framework and sector expansion on a least- cost and systematic basis IN01280837 ►Energy sector planning unit established (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 19-Sep-2022 23-Sep-2022 23-Sep-2022 30-Sep-2027 Comments: As stated by the indicator name IN01280839 ►Customer satisfaction on energy service provision obtained (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 75.00 Date 19-Sep-2022 23-Sep-2022 23-Sep-2022 30-Sep-2027 Comments: Three surveys to be carried out to access customer satisfaction in each DISCO’s service area IN01280840 ►Increase in the share of women employed by participating companies in technical and managerial positions (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 2.00 Date 19-Sep-2022 23-Sep-2022 23-Sep-2022 30-Sep-2027 Change in the share of women employed by participating energy companies in technical and managerial Comments: positions. IN01280841 ►Increase in number of entities to improve financial transparency and discipline (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 2.00 2.00 2.00 6.00 Date 19-Sep-2022 23-Sep-2022 23-Sep-2022 30-Sep-2027 Increase in number of energy sector entities through disclosure of their IFRS-based audited financial Comments: statements, all accompanying notes that include information on borrowings, at SOEs’ own websites in line with the requirements of the Law on Accounting (amended in 2021) Performance-Based Conditions 4/24/2023 Page 5 of 7 The World Bank Implementation Status & Results Report Electricity Sector Modernization and Sustainability Project (P177871) IN01280842 ►PBC 1 Cost recovery tariff trajectory established and implemented over time (Text, Outcome, 20,000,000.00, 0.00%) Baseline Actual (Previous) Actual (Current) Year 5 target Tariff setting Tariff setting methodology Tariff setting methodology methodology without Value without principles of full without principles of full -- principles of full cost- cost-recovery applied cost-recovery applied recovery applied Date -- 23-Sep-2022 13-Apr-2023 -- IN01280843 ►PBC 2 Improved sector governance and strengthened institutional capacity, including strategic power sector planning framework established and implemented (Text, Intermediate Outcome, 1,000,000.00, 0.00%) Baseline Actual (Previous) Actual (Current) Year 5 target Sector planning Sector planning Sector planning conducted Value conducted on an ad-hoc conducted on an ad-hoc -- on an ad-hoc basis. basis. basis. Date -- 23-Sep-2022 13-Apr-2023 -- Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed Not P177871 IDA-71470 USD 25.00 25.00 0.00 0.00 23.67 0% Effective Not P177871 IDA-E0690 USD 25.00 25.00 0.00 0.00 23.67 0% Effective Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date Not P177871 IDA-71470 23-Jun-2022 05-Oct-2022 -- 31-Dec-2027 31-Dec-2027 Effective Not P177871 IDA-E0690 23-Jun-2022 05-Oct-2022 -- 31-Dec-2027 31-Dec-2027 Effective Cumulative Disbursements 4/24/2023 Page 6 of 7 The World Bank Implementation Status & Results Report Electricity Sector Modernization and Sustainability Project (P177871) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 4/24/2023 Page 7 of 7