The World Bank Vishnugad Pipalkoti Hydro Electric Project (P096124) REPORT NO.: RES56314 DOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF VISHNUGAD PIPALKOTI HYDRO ELECTRIC PROJECT APPROVED ON JUNE 30, 2011 TO INDIA ENERGY & EXTRACTIVES SOUTH ASIA Regional Vice President: Martin Raiser Country Director: Auguste Tano Kouame Regional Director: Pankaj Gupta Practice Manager/Manager: Simon J. Stolp Task Team Leader(s): Dzenan Malovic, Pyush Dogra The World Bank Vishnugad Pipalkoti Hydro Electric Project (P096124) I. BASIC DATA Product Information Project ID Financing Instrument P096124 Investment Project Financing Original EA Category Current EA Category Full Assessment (A) Full Assessment (A) Approval Date Current Closing Date 30-Jun-2011 30-Jun-2023 Organizations Borrower Responsible Agency India THDC (Tehri Hydro Development Corporation) Project Development Objective (PDO) Original PDO The Project Development Objectives are: (a) to increase the supply of electricity to India's national grid through the addition of renewable, low-carbon energy; and (b) strengthen the institutional capacity of THDC with respect to the preparation and implementation of economically, environmentally and socially sustainable hydropower projects. Summary Status of Financing (US$, Millions) Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IBRD-80780 30-Jun-2011 10-Aug-2011 07-Nov-2011 30-Jun-2023 448.00 218.85 229.15 TF-58016 24-Apr-2007 24-Apr-2007 24-Apr-2007 31-Mar-2010 .99 .99 0 The World Bank Vishnugad Pipalkoti Hydro Electric Project (P096124) Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No II. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES The Vishnugad Pipalkoti Hydro-Electric Project was approved on June 30, 2011, and expected to close on December 31, 2017. When finalized, the Project’s capacity of 444 MW will produce 1,665 GWh/year of clean energy, resulting in a reduction of greenhouse gas emissions by 1.6 million tonnes/year. However, as Project implementation suffered significant delays, the Project has been subject to multiple restructurings, including Project extensions. The current closing date is June 30, 2023. Project implementation has been subject to significant delays due to factors beyond the Borrower’s control. THDC has had to suspend works on multiple occasions, leading to cumulative delays of more than six years. During a special review meeting of the Project on May 18, 2023, the Department of Economic Affairs (DEA), Ministry of Finance, acknowledged that, due to these cumulative delays, Project construction was not likely to be completed on time, and therefore formally requested the Bank to extend the Project until December 2024. During the last implementation support mission conducted in April 2023, it was confirmed that the Project had recently made significant progress. Consequently, disbursements have been exceeding US$ 66 million over the past 18 months (Q3 FY22 to Q4 FY23)—more than eleven times the amount of US$ 5.8 million disbursed over the previous 18 months (Q1 FY21 to Q2 FY22). In addition, THDC has consistently met the milestones agreed upon in June 2021 against which the Project’s performance is monitored. The Project is currently employing 2,418 persons, and it remains a significant source of local economic activity by directly and indirectly employing 625 community members from Project-affected families. The Project also supports significant economic activity in the district of Chamoli through THDC’s Corporate and Social Responsibility Program. The team recommends extending the Project for 18 months until December 31, 2024. In addition, the team and the Country Management Unit will put in place the additional supervision safeguards, missions, and review meetings, to ensure the timely completion of all critical milestones agreed with THDC. III. DETAILED CHANGES LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications 30-Jun-2019, 31-Dec- IBRD-80780 Effective 31-Dec-2017 2019, 31-Jan-2020, 31-Dec-2024 30-Apr-2025 31-Dec-2020, 30-Jun- The World Bank Vishnugad Pipalkoti Hydro Electric Project (P096124) 2021, 30-Jun-2022, 30-Jun-2023 30-Sep-2009, 31-Mar- TF-58016 Closed 17-Mar-2009 2010, 28-Oct-2010