The World Bank Implementation Status & Results Report India Energy Efficiency Scale-up Program (P162849) India Energy Efficiency Scale-up Program (P162849) SOUTH ASIA | India | Energy & Extractives Global Practice | Requesting Unit: SACIN | Responsible Unit: ISAE1 IBRD/IDA | Program-for-Results Financing | FY 2018 | Team Leader(s): Ivan Jaques Goldenberg, Yuge Ma Seq No: 7 | ARCHIVED on 24-Mar-2023 | ISR53899 | Created by: Ivan Jaques Goldenberg on 16-Nov-2022 | Modified by: Ivan Jaques Goldenberg on 17-Mar-2023 Program Development Objectives PDO Table Program Development Objective (from Program Appraisal Document) The program and project development objectives are to scale up energy savings in residential and public sectors, strengthen EESL’s institutional capacity, and enhance its access to commercial financing. Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Unsatisfactory Implementation Status and Key Decisions The India Energy Efficiency Scale-Up operation was approved by the World Bank Group Board of Directors on May 17, 2018, and the PforR loan for this operation became effective on November 6, 2018. Results Area 1 has been successfully implemented while Results Areas 3 and 4 are progressing satisfactorily overall. However, Results Area 2 is currently on hold until the Program's closing date extension and Loan Agreement Amendment letter is countersigned. As of now, the overall Program has disbursed 70.5 percent of the IBRD Loan. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P162849 IBRD-88570 Effective USD 220.00 220.00 0.00 155.08 64.92 70% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P162849 IBRD-88570 Effective 17-May-2018 28-Aug-2018 06-Nov-2018 30-Sep-2022 30-Sep-2023 DLI Disbursement Achievement Disbursed amount in Disbursement % for DLI ID DLI Type Description Coc DLI Amount Status Coc DLI Loan: IBRD88570-001 3/24/2023 Page 1 of 11 The World Bank Implementation Status & Results Report India Energy Efficiency Scale-up Program (P162849) DLI1 (i) No of LED bulb & 1.1 Regular USD 17,110,000.00 Fully Achieved 17,110,000.00 100 % tubes sold P1 DLI1 (ii) No of LED bulb & 1.2 Regular USD 19,000,000.00 Fully Achieved 19,000,000.00 100 % tubes sold P2 DLI1 (iii) No of LED bulb& Partially 1.3 Regular USD 4,444,428.00 4,444,428.00 100 % tubes sold P3 Achieved DLI2 (i) No of EE ceiling 2.1 Regular USD 3,400,000.00 Fully Achieved 3,400,000.00 100 % fans sold P1 DLI2 (ii) No of EE ceiling Partially 2.2 Regular USD 3,074,549.00 3,074,549.00 100 % fans sold P2 Achieved DLI 3 (i) No of LED strt 3.1 Regular USD 19,250,000.00 Fully Achieved 19,250,000.00 100 % lights inst P1 DLI 3 (ii) No of LED strt 3.2 Regular USD 19,250,000.00 Fully Achieved 19,250,000.00 100 % lights inst P2 DLI3 (iii) No of LED strt 3.3 Regular USD 19,250,000.00 Fully Achieved 19,250,000.00 100 % lights ins P3 DLI3 (iv) No of LED strt 3.4 Regular USD 16,040,000.00 Fully Achieved 16,040,000.00 100 % lights ins P4 DLI3 (v) No of LED strt 3.5 Regular USD 44,181,023.00 Fully Achieved 3,210,000.00 7.3 % lights ins P5 DLI 4 Sustainability Action 4 Regular USD 14,000,000.00 Fully Achieved 14,000,000.00 100 % Imple DLI 5 Bus model for Collab 5 Regular USD 8,000,000.00 Not Achieved 0.00 Pvt sec ESCO DLI6 (i) Est of sus dev unit 6.1 Regular USD 16,500,000.00 Fully Achieved 16,500,000.00 100 % report DLI6 (ii) Est of sus dev unit 6.2 Regular USD 15,950,000.00 Not Achieved 0.00 report Program Action Plan EESL will update EESL Guidelines, Policy and Procedure for Procurement of Goods, Works and Non-Consulting Action Description Services (“Guidelines”), Standard Bidding Documents; Standard MOU Template with SOEs and ULBs, and adopt all these Guidelines. Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems EESL Due Date 31-Mar-2019 Completed Completion Measurement This Program Action was delayed beyond the agreed deadline of March 31, 2019 but has now been completed. Comments EESL will develop, adopt, and/or disseminate its Quality Assurance Manuals by September 30, 2018 and dispense Action Description training on quality assurance in street and domestic lighting and ceiling fans programs to staff and vendors. Source DLI# Responsibility Timing Timing Value Status 3/24/2023 Page 2 of 11 The World Bank Implementation Status & Results Report India Energy Efficiency Scale-up Program (P162849) Environmental and Social EESL Due Date 31-Mar-2019 Completed Systems This Program Action has been completed in January 2019. The Quality Assurance Manuals have been prepared, Completion Measurement adopted and hosted on EESL’s Website. Comments Action Description EESL Audit Committee of the Board (ACB) shall include two independent directors as its members. Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems EESL Due Date 30-Sep-2018 Completed Achieved, but the action is rendered infructuous due to change in law: EESL had two independent directors (ID) on Completion Measurement the Board of Directors. Due to certain changes in the Companies act and rules, appointment of IDs is no longer mandatory for EESL. As on date, there are no independent directors on the Board of EESL.Due to certain amendments in the Companies Comments act and rules in India, appointment of independent directors is no longer required for EESL. Hence appointment was not pursued with GoI. EESL will prepare, adopt and implement finance manual(s) covering all financial management functions in line with Action Description current systems and issue an internal notification of their application as of April 1, 2019. Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems EESL Due Date 31-Mar-2019 Completed The Finance Manuals have been finalized, approved by competent authority (MD) on 25-Sept-2021, and Completion Measurement operationalized. Comments Approval of the manuals from the Board of EESL is in process. The action is delayed. EESL shall ensure that its audit committee approves terms of reference acceptable to the Bank to strengthen EESL’s Action Description internal audit function; and such internal audit function is performed in accordance with approved terms of reference. Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems EESL Due Date 30-Sep-2018 Completed Achieved: Internal audit is conducted by a private audit firm on ToR approved by the Audit Committee. Audit is Completion Measurement completed up to FY22. EESL has revised the ToR with enhanced focus on risk-based approach. FY22 internal audit reps have been shared w/Bank Comments EESL shall develop, adopt and report to the Bank on its strategy on energy efficiency market transformation of Action Description residential lighting including reporting on bulk procurement, quality assurance, environmental sustainability, marketing and outreach, etc. 3/24/2023 Page 3 of 11 The World Bank Implementation Status & Results Report India Energy Efficiency Scale-up Program (P162849) Source DLI# Responsibility Timing Timing Value Status Technical EESL Due Date 31-Mar-2023 In Progress This Program Action is Not Yet Completed. The draft Strategy document prepared and submitted by EESL to the Completion Measurement World Bank has many gaps and need to be revised. The revised report has not yet been submitted to the Bank. Comments EESL shall produce and make publicly available a report (i) containing an independent review and evaluation of the Action Description agricultural EE and DSM models examined/tested by the EESL; and (ii) reporting on EESL's sustainability actions and indicators Source DLI# Responsibility Timing Timing Value Status Technical EESL Due Date 31-Mar-2020 Completed Completion Measurement Report on the impact assessment of the Agricultural DSM program completed and published on EESL's website. Comments EESL to develop and implement a plan for systematic and periodic independent evaluation of each of its program Action Description under implementation, including program impact assessment, challenge identification, and consumer perspectives collection, and report them. Source DLI# Responsibility Timing Timing Value Status Other EESL Due Date 06-Jan-2022 Completed A report on systemic and periodic independent evaluation of each of EESL's Program Under Implementation has Completion Measurement been approved by EESL Management and submitted to the Bank. Comments EESL will develop and adopt a training program, and install a training center, for EE capacity building and training of Action Description the EESL’s staff, EE private sector targeting private sector ESCOs and other EE service providers, and the EESL’s customers. Source DLI# Responsibility Timing Timing Value Status Technical EESL Due Date 31-Mar-2020 Completed EESL has established an EESL Knowledge Centre (EKC) learning platform in order to develop the capability of the Completion Measurement EESL workforce. Comments EESL will (i) develop a baseline of the number of women it employs at each level (managerial, technical, Action Description administrative); and (ii) track, on an ongoing basis, how many women it employs at each level. 3/24/2023 Page 4 of 11 The World Bank Implementation Status & Results Report India Energy Efficiency Scale-up Program (P162849) Source DLI# Responsibility Timing Timing Value Status Environmental and Social EESL Due Date 06-Jan-2022 Completed Systems Completion Measurement The updated version of the EESL Gender Baseline Report until January 2022 has been submitted to the World Bank. Comments EESL will strengthen, complete and operationalize the complete Environmental, Occupational Health & Safety and Action Description Social (EHSS) Manual (details described in #11 in Annex 8 of PAD) Source DLI# Responsibility Timing Timing Value Status Environmental and Social EESL Due Date 31-Mar-2019 Completed Systems This Program Action was completed. EESL is also continuously udating the EHSS Manual for all activities which Completion Measurement qualifies as ‘program under implementation’ as defined under the program. Comments EESL, with financial advisors’ support, shall develop, and its management shall approve, a long-term financial Action Description resource mobilization plan. Source DLI# Responsibility Timing Timing Value Status Other EESL Due Date 31-Mar-2019 In Progress The PAP is under progress. The draft financial resource mobilization plan for EESL and document detailing the Completion Measurement Funding Options was sent by EESL to the World Bank but has not yet been finalized and formally submitted to meet the PAP requirements. Comments Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Low Low Macroeconomic -- Low Low Sector Strategies and Policies -- Low Low Technical Design of Project or Program -- Moderate Moderate Institutional Capacity for Implementation and -- Low Low Sustainability Fiduciary -- Moderate Moderate 3/24/2023 Page 5 of 11 The World Bank Implementation Status & Results Report India Energy Efficiency Scale-up Program (P162849) Environment and Social -- Moderate Moderate Stakeholders -- Moderate Moderate Other -- High High Overall -- Moderate Moderate RiskComments Comments The "Other" risk has been assessed as High, because Program implementation of Results Area 2 is on hold until the closing date extension and Loan Agreement Amendment letter is countersigned by EESL and DEA. The Loan Agreement was amended together with the extension, creating a Period 6 for disbursements under DLI3. This Period cannot be created in the system, and hence disbursements made, until the letter is countersigned. Results PDO Indicators by Objectives / Outcomes To scale up energy savings in residential and public sectors IN01217424 ►PDO Indicator 1- Projected lifetime energy savings from LED bulbs, tube lights, EE ceiling fans and LED Street Lights sold via EESL programs. (Gigawatt-hour (GWh), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 197,900.00 327,867.00 327,867.00 331,900.00 Date 31-Mar-2017 11-Apr-2022 15-Mar-2023 30-Sep-2023 Comments IN01217522 ►PDO Indicator 2- Avoided CO2 emissions associated with projected lifetime savings from LED bulbs, LED tube lights, energy efficient ceiling fans and LED street lights sold via EESL programs (Metric ton, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 160,700,000.00 265,973,612.00 265,973,612.00 269,200,000.00 Date 31-Mar-2017 11-Apr-2022 15-Mar-2023 30-Sep-2023 Comments Enhance EESL's access to commercial financing IN01217425 ►PDO Indicator 3- Amount of commercial financing leveraged by the IBRD guarantee (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 200,000,000.00 Date 31-Mar-2017 11-Apr-2022 15-Mar-2023 30-Sep-2023 The guarantee was not activated, so no commercial financing has been leveraged. After the approval of the Guarantee in 2018, EESL’s use of this instrument in support of its commercial financing needs was delayed Comments initially due to changing business needs and priorities at EESL vis-à-vis the original scope of the Project activities contemplated under the Guarantee and evolving uncertain market conditions, which were 3/24/2023 Page 6 of 11 The World Bank Implementation Status & Results Report India Energy Efficiency Scale-up Program (P162849) exacerbated further due to COVID disruptions since 2020. The issue was discussed during the review mission on November 2021 and the Tripartite Portfolio Review Meeting in the same month. The discussions continued during a joint meeting in December 2021 between EESL, DEA and the Bank team, and subsequent technical meetings through 2022. Various options were explored and discussed with EESL to utilize the Guarantee, but ultimately, EESL management decided not to use it, and as a result, the Guarantee will be cancelled. Strengthen EESL's institutional capacity IN01217521 ►PDO Indicator 4 - Establishment of Sustainable Development Unit and report on implementation of updated EHSS Manual covering all EESL programs under implementation (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 31-Mar-2017 11-Apr-2022 15-Mar-2023 30-Sep-2023 Comments Intermediate Results Indicators by Results Areas RA 1- Energy savings and EE market transformation in the residential sector IN01217523 ►IR Indicator 1.1- Number of LED bulbs and tube lights sold via EESL program (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 216,000,000.00 351,186,649.00 351,186,649.00 351,186,649.00 Date 31-Mar-2017 11-Apr-2022 15-Mar-2023 30-Sep-2022 Comments IN01217527 ►IR Indicator 1.2- Estimated number of beneficiaries (of which women) of LED bulbs sold via EESL program (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 336,000,000.00 550,192,417.00 550,192,417.00 550,190,000.00 Date 31-Mar-2017 11-Apr-2022 15-Mar-2023 30-Sep-2022 Comments IN01217531 ►IR Indicator 1.3 - Number of energy efficient ceiling fans sold via EESL program (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 587,795.00 2,300,316.00 2,300,316.00 2,300,316.00 Date 31-Mar-2017 11-Apr-2022 15-Mar-2023 30-Sep-2022 Comments IN01217533 3/24/2023 Page 7 of 11 The World Bank Implementation Status & Results Report India Energy Efficiency Scale-up Program (P162849) ►IR Indicator 1.4- Approval of EESL strategy for sustainable LED market transformation in residential lighting, including set of indicators EESL will monitor and track (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 31-Mar-2017 11-Apr-2022 15-Mar-2023 30-Sep-2023 Comments IN01217534 ►IR Indicator 1.0- Direct employment (number of jobs) created of which women (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 366.00 366.00 366.00 500.00 Date 31-Mar-2017 11-Apr-2022 15-Mar-2023 30-Sep-2023 Comments RA 2- Energy savings and EE market transformation in street lighting IN01217524 ►IR Indicator 2.1- Number of LED street lights installed under SLNP (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1,967,000.00 9,406,563.00 9,406,563.00 13,000,000.00 Date 31-Mar-2017 11-Apr-2022 15-Mar-2023 30-Sep-2023 Comments IN01217528 ►IR Indicator 2.2 - Number of municipalities/towns/villages/gram panchayats with LED street lights installed through SLNP (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 500.00 700.00 700.00 1,500.00 Date 31-Mar-2017 10-Sep-2021 15-Mar-2023 30-Sep-2023 Comments RA 3- Development of sustainable business models in new EE market segments IN01217525 ►IR Indicator 3.1 - EESL implementation of the three EE AC sustainability actions approved (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 31-Mar-2017 11-Apr-2022 15-Mar-2023 30-Sep-2021 Comments IN01217529 3/24/2023 Page 8 of 11 The World Bank Implementation Status & Results Report India Energy Efficiency Scale-up Program (P162849) ►IR Indicator 3.2 - EESL approval of business model for collaboration with private sectur ESCOs in the implementation of EESL's Builidng EE activities (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 31-Mar-2017 11-Apr-2022 15-Mar-2023 31-May-2023 Comments RA 4- Institutional strengthening for sustainable EE scale-up IN01217526 ►IR Indicator 4.1- Periodic independent evaluations of EESL programs (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 31-Mar-2017 11-Apr-2022 15-Mar-2023 30-Sep-2023 Comments IN01217530 ►IR Indicator 4.2- Approval of capacity buidling and training program for EE provate sector to facilitate support and participation in EE market segments (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 31-Mar-2017 12-Mar-2020 12-Mar-2020 31-Mar-2020 Comments IN01217532 ►IR Indicator 4.3 - Adoption by EESL managemnet of standardized procurement documents" "Guidelines", SBDs and MOU formats (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 31-Mar-2017 26-Apr-2019 26-Apr-2019 31-Mar-2019 Comments Disbursement Linked Indicators DLI_IND_TABLE ►DLI 1 DLI 1- Number of LED bulbs and tube lights sold by EESL under the UJALA program (Output, 40,554,428.00, 88%) 18 Months Period ending 30-Sep-2023 (Cumulative Baseline Actual (Previous) Actual (Current) number) Value 216,000,000.00 351,186,649.00 351,186,649.00 351,186,649.00 3/24/2023 Page 9 of 11 The World Bank Implementation Status & Results Report India Energy Efficiency Scale-up Program (P162849) Date -- 11-Apr-2022 15-Mar-2023 -- These results are calculated based on verified results of Disbursement Linked Indicators 1, 2 and 3, as reported by EESL for the period up to March 31, 2021, through their Results Notification letter of February Comments 25, 2022. ►DLI 2 DLI 2- Number of energy efficient ceiling fans sold by EESL under the UJALA program (Output, 6,474,549.00, 91%) 18 Months Period ending 30-Sep-2023 (Cumulative Baseline Actual (Previous) Actual (Current) number) Value 590,000.00 2,300,316.00 2,300,316.00 2,300,316.00 Date -- 11-Apr-2022 15-Mar-2023 -- These results are calculated based on verified results of Disbursement Linked Indicators 1, 2 and 3, as reported by EESL for the period up to March 31, 2021, through their Results Notification letter of February Comments 25, 2022. ►DLI 3 DLI 3- Number of LED steet lights installed by EESL under the SLNP program (Output, 117,971,023.00, 43%) 18 Months Period ending 30-Sep-2023 (Cumulative Baseline Actual (Previous) Actual (Current) number) Value 2,000,000.00 9,406,563.00 9,406,563.00 13,035,000.00 Date -- 11-Apr-2022 15-Mar-2023 -- These results are calculated based on verified results of Disbursement Linked Indicators 1, 2 and 3, as reported by EESL for the period up to March 31, 2021, through their Results Notification letter of February Comments 25, 2022. ►DLI 4 DLI 4- EESL implementation of EE AC sustainability actions (Process, 14,000,000.00, 0%) 18 Months Period ending 30-Sep-2023 (Cumulative Baseline Actual (Previous) Actual (Current) number) Value No Yes Yes Yes Date -- 11-Apr-2022 15-Mar-2023 -- Comments ►DLI 5 DLI 5- Business model for collaboration with private sector ESCOs in the implementation of EESL's Building EE Program (Output, 8,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) 18 Months Period ending 30-Sep-2023 3/24/2023 Page 10 of 11 The World Bank Implementation Status & Results Report India Energy Efficiency Scale-up Program (P162849) (Cumulative number) Value No No No Yes Date -- 11-Apr-2022 15-Mar-2023 -- Comments ►DLI 6 DLI 6 - Establishment of Sustainable Developmnet Unit (Process, 32,450,000.00, 51%) 18 Months Period ending 30-Sep-2023 (Cumulative Baseline Actual (Previous) Actual (Current) number) Value No No No Yes Date -- 11-Apr-2022 15-Mar-2023 -- Part (i) of the DLI 6 has been achieved. Hence $16.5 million (of the total $32.45 million) has been disbursed. Comments Part (ii) of DLI 6 remains to be completed. 3/24/2023 Page 11 of 11