The World Bank Implementation Status & Results Report Partial Risk Sharing Facility in Energy Efficiency (P132620) Partial Risk Sharing Facility in Energy Efficiency (P132620) SOUTH ASIA | India | IBRD/IDA | Investment Project Financing (IPF) | FY 2015 | Seq No: 13 | Archived on 30-Jun-2024 | ISR01101 Implementing Agencies: EESL Energy Efficiency Services Limited, Small Industries Development Bank of India 1.OBJECTIVE 1.1 Development Objective Original Development Objective (Approved as part of Approval package on 13-Mar-2019) The project development objective is to assist India in achieving energy savings with mobilization of commercial finance and participation of Energy Service Companies (ESCOs). Has the Development Objective been changed since Board Approval of the Project Objective? No 2.COMPONENTS Name Component 1: Partial risk sharing facility:(Cost 37,000,000.00) 2. Component 2: Technical assistance and capacity building:(Cost 6,000,000.00) 3. OVERALL RATINGS Name Previous Current Progress towards achievement of lSatisfactory lSatisfactory PDO Overall Implementation Progress (IP) lSatisfactory lSatisfactory Overall Risk Rating lSubstantial lSubstantial 4. KEY ISSUES & STATUS Jun 30, 2024 Page 1 of 9 The World Bank Implementation Status & Results Report Partial Risk Sharing Facility in Energy Efficiency (P132620) 4.1 Implementation Status and Key Decisions Project Status: The PRSF Project became effective on August 31, 2015, with a closing date of April 1, 2024. The project development objective is to assist India in achieving energy savings with the mobilization of commercial finance and participation of Energy Service Companies. It is expected that over the Project period, PRSF would help alleviate the perceived risks, assist the ESCOs and other market actors to have better access to finance, and mobilize over US$125 million of commercial financing for EE investments across various demand side sectors and thereby trigger large-scale EE market transformation. Starting in 2015, total 79 sub-project have been covered under the scheme till date. Total guaranteed amount for the 79 sub projects is US$78.53 million (INR 5104.35 million) mobilizing a total Energy Efficiency Investment of US$131.93 million (INR 8577.11 million). The resultant leverage of guarantee amount in terms of total EE Investment mobilized by 2.34 times. Of the 79 guarantees issued till date, 21 guarantees have been completed successfully having cumulative guarantee amount of US$16.63 million (INR 1080.9 million), 58 sub-projects are at different stages of implementation. For two projects, guarantee claims have been received, which are being investigated. SIDBI is in discussion with several ESCOs and project proponents for covering more energy efficiency projects under the PRSF. The cumulative guarantee amount for these projects is around INR 242 crores (i.e. US$37.29 million). Regarding M&V activity, the 20 sub-projects for M&V activity have since been shortlisted and shared with CII and the World Bank. Proposed M&V framework including reporting formats and expected outcomes have been revised based on the World Bank inputs. Out of 20, the site visit for 12 projects have been completed and report is awaited. The TA component supported the establishment of SIDBI’s Green Vertical to focus on green and decarbonization investments. So far, a portfolio of close to US$2 billion has been developed by SIDBI’s green portfolio, including US$1.7 billion in energy efficiency business and US$350 million in renewable energy business. This led to the indirect leverage of the PRSF to 46 times. 5. SYSTEMATIC OPERATIONS RISK-RATING TOOL Last Approved Rating at Rating Risk Category Proposed Rating Approval ISR Seq. 012 - 18 Dec 2023 Political and Governance l lLow lLow Macroeconomic l lLow lLow Sector Strategies and Policies l lLow lLow Jun 30, 2024 Page 2 of 9 The World Bank Implementation Status & Results Report Partial Risk Sharing Facility in Energy Efficiency (P132620) Technical Design of Project or l lSubstantial lSubstantial Program Institutional Capacity for l lModerate lModerate Implementation and Sustainability Fiduciary l lModerate lModerate Environment and Social l lLow lLow Stakeholders l lSubstantial lSubstantial Overall l lSubstantial lSubstantial Jun 30, 2024 Page 3 of 9 The World Bank Implementation Status & Results Report Partial Risk Sharing Facility in Energy Efficiency (P132620) 6. RESULTS 6.1 PDO Indicators by PDO Outcomes Achieving energy savings through energy service companies (ESCOs) Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Annual energy savings 0.00 Apr/2015 375.3 31-May- 375.3 31-May- 328.00 Jun/2025 achieved by projects 2024 2024 that receive PRSF risk coverage (Gigawatt- hour (GWh)) Annual mitigation of 0.00 Apr/2015 286,000.00 31-May- 286,000.00 31-May- 289,000.00 Jun/2025 CO2 emissions 2024 2024 achieved by projects that receive PRSF risk coverage (million tons; estimated based on the type and amount of energy savings recorded) (Metric tons/year) Total number of 0.00 Apr/2015 79.00 31-May- 79.00 31-May- 77.00 Jun/2025 ESCO-implemented 2024 2024 energy efficiency Comments on Of the 79 guarantees issued till date, 21 guarantees have been completed investments whose achieving targets successfully: Municipality (7), Large Industries (1), Office Building (1), loans receive credit Hospital (3), Hotels (1) & MSME (8) having cumulative guarantee amount of guarantee from PRSF US$16.63 million (INR 1080.9 million). (Number) Total amount of loan 0.00 Apr/2015 85,610,000.00 31-May- 85,610,000.00 31-May- 87,000,000.00 Jun/2025 financing provided for 2024 2024 Jun 30, 2024 Page 4 of 9 The World Bank Implementation Status & Results Report Partial Risk Sharing Facility in Energy Efficiency (P132620) ESCO-implemented energy efficiency investments including that from SIDBI and PFIs that receive PRSF risk coverage (million US$) (Amount(USD)) 6.2 Intermediate Results Indicators by Components Component 1: Partial risk sharing facility Baseline Actual (Previous) Actual (Current) Closing Period Indicator Name Value Month/Year Value Date Value Date Value Month/Year Total amount of loans 0.00 Apr/2015 78,530,000 31-May- 78,530,000 31-May- 89,000,000.00 Jun/2025 that receive risk- 2024 2024 sharing coverage through credit guarantees from PRSF (million US$) (Amount(USD)) Private capital 0.00 Apr/2015 131,930,000.00 31-May- 131,930,000.00 31-May- 125,000,000.00 Jun/2025 mobilized (million 2024 2024 US$) (Amount(USD)) 0.00 Apr/2015 0.01 30- 0.01 30-Sept- 15.00 Jun/2025 Default rate of loans Sept- 2023 that receive risk- 2023 sharing coverage through credit Comments on One project guarantee issued to IREDA for implementing EE Project (Capacitor guarantees from achieving targets Bank) at Manipur State Power Company Ltd. implemented by Smaru Tech (ESCO) under deemed saving model has been called for. Actions taken in this Jun 30, 2024 Page 5 of 9 The World Bank Implementation Status & Results Report Partial Risk Sharing Facility in Energy Efficiency (P132620) PRSF (%) regard include: (Percentage) o Review of documents received from IREDA i.c.w. claim form submitted for its borrower viz. M/s Smaru Tech LLP (ESCO). o Discussion with ESCO to understand the problem being faced in terms of not meeting the loan repayment obligations. o Due Diligence report is being drafted by CII. However, few additional documents have been requested by CII from IREDA and ESCO which are still awaited. o The above activity is expected to be closed shortly (by end of July 2024). Another claim has been received in case of M/s Dashmesh Alloys for which Due diligence exercise has been initiated. 6.3 Performance Based Conditions (PBC) Actual (Previous) Actual (Current) Closing PBC Name Baseline Value Date Value Date Period 1:Annual energy Value 0.00 28.65 28.65 savings achieved by projects that Allocated 11-Jun-2018 11-Jun-2018 receive PRSF 0.00 0.00 Amount risk coverage (Amount(USD)) PBC allocation 0.00 2:Annual Value 0.00 27.10 27.10 mitigation of 11-Jun-2018 11-Jun-2018 CO2 emissions Allocated 0.00 0.00 achieved by Amount Jun 30, 2024 Page 6 of 9 The World Bank Implementation Status & Results Report Partial Risk Sharing Facility in Energy Efficiency (P132620) projects that receive PRSF risk coverage (million tons; estimated based on the type and amount of energy savings recorded) (Amount(USD)) PBC allocation 0.00 Jun 30, 2024 Page 7 of 9 The World Bank Implementation Status & Results Report Partial Risk Sharing Facility in Energy Efficiency (P132620) 7. DATA ON FINANCIAL PERFORMANCE 7.1 Cumulative Disbursements 7.2 Disbursements (by loan) Loan/Credit/ Cancelle Undisburs Status Original Revised Disbursed % Disbursed TF d ed TF-19230 Effective 25.00 25.00 0.00 0.00 25.00 0% 7.3 Key Dates (by loan) Orig. Rev. Loan/Credit/TF Status Approval Signing Effectiveness Closing Closing 31-Mar- 01-Apr- 31-Mar- TF-19230 Effective 25-Feb-2015 31-Aug-2015 2015 2035 2025 Jun 30, 2024 Page 8 of 9 The World Bank Implementation Status & Results Report Partial Risk Sharing Facility in Energy Efficiency (P132620) 8. KEY DATES Key Events Planned Actual Approval 25-Feb-2015 25-Feb-2015 Effectiveness Not Available 31-Aug-2015 Mid-Term Review No. 01 29-Jan-2021 Mid-Term Review No. 01 Mid-Term Review No. 01 Operation Closing/Cancellation 31-Mar-2025 9. RESTRUCTURING HISTORY Restructuring Level 2 Approved on 23-Mar-2022 Restructuring Level 2 Approved on 16-Mar-2023 10. ASSOCIATED OPERATION(S) There are no associated operations Jun 30, 2024 Page 9 of 9