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 | IBRD/IDA | Investment Project Financing (IPF) | FY 2022 | Seq No: 4 | Archived on 08-May-2024 | ISR00203 Implementing Agencies: Ministry of Energy 1. OBJECTIVE 1.1 Development Objective Original Development Objective (Approved as part of Approval package on 15-Mar-2023) To improve the financial performance and operational reliability of the electricity sector. Has the Development Objective been changed since Board Approval of the Project Objective? No 2. COMPONENTS Name Component 1. Rehabilitation and Upgrade of Distribution Networks:(Cost 10,000,000.00) Component 2. Digitalization of Distribution Network:(Cost 43,000,000.00) Component 3. Strengthening Social Protection Systems:(Cost 3,000,000.00) Component 4. Institutional Development and Project Implementation Support:(Cost 2,000,000.00) 3. OVERALL RATINGS Name Previous Current Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Substantial Substantial 4. KEY ISSUES & STATUS May 08, 2024 Page 1 of 9 The World Bank Implementation Status & Results Report Electricity Sector Modernization and Sustainability Project (P177871) 4.1 Implementation Status and Key Decisions The project became effective on June 27, 2023. Since then, project implementation has progressed in all areas. The bid document (BD) for the smart meter package was issued on February 13, 2024. The BDs for the transformer and aerial bundled cable (ABC) packages are issued on 29 February 2024. MoE is coordinating with the MoF and NEGK to complete the Asset Transfer Agreement for the transfer of assets procured for Components 1-2 of the project. 5. SYSTEMATIC OPERATIONS RISK-RATING TOOL Rating at Approval Last Approved Rating Risk Category Approval Package - ISR Seq. 03 - 02 Nov Proposed Rating 15 Mar 2023 2023 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 Overall Substantial Substantial Substantial May 08, 2024 Page 2 of 9 The World Bank Implementation Status & Results Report Electricity Sector Modernization and Sustainability Project (P177871) 6. RESULTS 6.1 PDO Indicators by PDO Outcomes Cost recovery tariff trajectory established and implemented over time Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Tariff setting Sep/2022 A new tariff 15-Apr-2024 A new tariff 15-Apr-2024 Energy tariffs Sep/2027 methodology methodology methodology adjusted in without consistent consistent accordance Cost recovery tariff trajectory principles of with principles with principles with new tariff established and implemented full cost- of full cost- of full cost- methodology over time (Text) PBC recovery recovery recovery and MTTP applied approved on approved on October 6, October 6, 2023 2023 Reduction of average duration of interruptions per customer for the project area Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year 0.00 Sep/2022 0.00 14-Apr-2024 0.00 14-Apr-2024 179.00 Sep/2027 Reduction of average Comments on Change in the duration of total interruptions experienced by a representative customer in a duration of interruptions per achieving targets year. Also can be calculated as the change in the product of SAIDI and annual SAIFI. customer for the project area (Minutes) The progress will be reported soon following the actual implementation of activities. Cash collected per kWh of distributed electricity Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year May 08, 2024 Page 3 of 9 The World Bank Implementation Status & Results Report Electricity Sector Modernization and Sustainability Project (P177871) 1.37 Sep/2022 1.55 14-Apr-2024 1.55 14-Apr-2024 2.00 Sep/2027 Cash collected per kWh of Comments on Amount of cash collected per kWh of distributed electricity distributed electricity achieving targets (KGS/kWh) (Number) There is no progress so far due to delays in project effectiveness and procurement packages 6.2 Intermediate Results Indicators by Components Component 1. Rehabilitation and Upgrade of Distribution Networks Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Distribution lines upgraded 0.00 Sep/2022 0.00 14-Apr-2024 0.00 14-Apr-2024 350.00 Sep/2027 or rehabilitated under the Comments on As stated by the indicator name. project (Kilometers) achieving targets Construction and 0.00 Sep/2022 0.00 14-Apr-2024 0.00 14-Apr-2024 1,000.00 Sep/2027 rehabilitation of transformer Comments on As stated by the indicator name. substations 6-10/ 0.4 kV achieving targets (Number) 0.00 Sep/2022 0.00 14-Apr-2024 0.00 14-Apr-2024 34500.00 Sep/2027 Net greenhouse gas (GHG) Comments on Project net greenhouse gas (GHG) emissions are calculated as an annual average of the emissions (Metric achieving targets difference between project gross (absolute) emissions aggregated over the economic lifetime tons/year) of the project and the emissions of a baseline (counterfactual) scenario aggregated over the same time horizon. They are reported in metric tons of carbon dioxide equivalent per year. Component 2. Digitalization of Distribution Network Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Advanced metering systems 0.00 Sep/2022 0.00 14-Apr-2024 0.00 14-Apr-2024 590,000.00 Sep/2027 May 08, 2024 Page 4 of 9 The World Bank Implementation Status & Results Report Electricity Sector Modernization and Sustainability Project (P177871) installed under the Project Comments on Advanced meters include both single-phase and three-phase smart meters. The package is at (Cumulative) (Number) achieving targets evaluation stage. Installation of advanced 0.00 Sep/2022 0.00 14-Apr-2024 0.00 14-Apr-2024 2.00 Sep/2027 energy information and Comments on Installation of advanced energy information and management systems under the Project. management systems under achieving targets Installation will follow the contracting of the package. the Project (cumulative) (Number) Component 3. Strengthening Social Protection Systems Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Social Sep/2022 Social 26-Oct-2023 Social Sep/2027 protection protection protection measures not measures not system sufficient to sufficient to strengthened protect the protect the through extremely extremely increased Social protection measures poor and poor and efficiency and adopted to protect extremely vulnerable vulnerable responsiveness poor and vulnerable households households of the UBK residential consumers from from gradual from gradual program to energy tariff increase (Text) tariff tariff energy tariff adjustments adjustments increases and modernized IT systems Comments on It measures the adoption of social mitigation measures identified by the technical assistance achieving targets to protect the extremely poor and vulnerable households from gradual tariff adjustments. Component 4. Institutional Development and Project Implementation Support Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year May 08, 2024 Page 5 of 9 The World Bank Implementation Status & Results Report Electricity Sector Modernization and Sustainability Project (P177871) Sector Sep/2022 Sector 26-Oct-2023 Improved Sep/2027 planning planning sector Improved sector governance conducted on conducted on governance and strengthened an ad-hoc an ad-hoc and institutional capacity, basis. basis. strengthened including strategic power institutional sector planning framework capacity established and implemented Comments on This PBC monitors the strengthening of sector governance and institutional capacity, including (Text) PBC achieving targets the power sector planning framework and sector expansion on a least- cost and systematic basis. Energy sector planning unit No Sep/2022 No 14-Apr-2024 No 14-Apr-2024 Yes Sep/2027 established (Yes/No) Customer satisfaction on 0.00 Sep/2022 0.00 26-Oct-2023 75.00 Sep/2027 energy service provision Comments on Three surveys to be carried out to access customer satisfaction in each DISCO’s service area obtained (Percentage) achieving targets Increase in the share of 0.00 Sep/2022 0.00 14-Apr-2024 0.00 14-Apr-2024 2.00 Sep/2027 women employed by Comments on Change in the share of women employed by participating energy companies in technical and participating companies in achieving targets managerial positions. technical and managerial positions (Percentage) Increase in number of 2.00 Sep/2022 2.00 14-Apr-2024 2.00 14-Apr-2024 6.00 Sep/2027 entities to improve financial Comments on Increase in number of energy sector entities through disclosure of their IFRS-based audited transparency and discipline achieving targets financial statements, all accompanying notes that include information on borrowings, at SOEs’ (Number) own websites in line with the requirements of the Law on Accounting (amended in 2021) 6.3 Performance Based Conditions (PBC) May 08, 2024 Page 6 of 9 The World Bank Implementation Status & Results Report Electricity Sector Modernization and Sustainability Project (P177871) Actual (Previous) Actual (Current) PBC Name Baseline Closing Period Value Date Value Date A new tariff A new tariff methodology methodology Tariff setting 1 : Cost recovery consistent with consistent with methodology without tariff trajectory Value principles of full principles of full cost- principles of full cost- established and cost-recovery 26-Oct-2023 recovery endorsed by 26-Oct-2023 recovery applied implemented over endorsed by MoE MoE on October 6, time (Text) on October 6, 2023 2023 Allocated 0.00 0.00 0.00 4,000,000.00 Amount Updated Renewable Updated Renewable 2 : Improved sector Energy Law was Energy Law was governance and adopted in August adopted in August strengthened 2023 where the Sector planning 2023 where the institutional National Electricity Value conducted on an ad- National Electricity capacity, including Grid of Kyrgyzstan hoc basis. 26-Oct-2023 Grid of Kyrgyzstan 26-Oct-2023 strategic power was designated as was designated as the sector planning the renewable renewable energy off- framework energy off-taker / taker / single buyer. established and single buyer. implemented (Text) Allocated 0.00 0.00 0.00 0.00 Amount May 08, 2024 Page 7 of 9 The World Bank Implementation Status & Results Report Electricity Sector Modernization and Sustainability Project (P177871) 7. DATA ON FINANCIAL PERFORMANCE 7.1 Cumulative Disbursements 7.2 Disbursements (by loan) Loan/Credit/TF Status Original Revised Cancelled Disbursed Undisbursed % Disbursed IDA-71470 Effective 25.00 25.00 0.00 0.00 24.51 0% IDA-E0690 Effective 25.00 25.00 0.00 1.04 23.47 4.16% TF-B9767 Effective 6.00 6.00 0.00 0.00 6.00 0% 7.3 Key Dates (by loan) Loan/Credit/TF Status Approval Signing Effectiveness Orig. Closing Rev. Closing May 08, 2024 Page 8 of 9 The World Bank Implementation Status & Results Report Electricity Sector Modernization and Sustainability Project (P177871) IDA-71470 Effective 23-Jun-2022 05-Oct-2022 28-Jul-2023 31-Dec-2027 31-Dec-2027 IDA-E0690 Effective 23-Jun-2022 05-Oct-2022 28-Jul-2023 31-Dec-2027 31-Dec-2027 TF-B9767 Effective 31-Jan-2023 31-Jan-2023 28-Jul-2023 30-Jun-2027 30-Jun-2027 8. KEY DATES Key Events Planned Actual Approval 23-Jun-2022 23-Jun-2022 Effectiveness 28-Jul-2023 28-Jul-2023 Mid-Term Review No. 01 30-Oct-2025 Operation Closing/Cancellation 31-Dec-2027 9. RESTRUCTURING HISTORY 10. ASSOCIATED OPERATION(S) There are no associated operations May 08, 2024 Page 9 of 9