The World Bank Modernization and Upgrade of Transmission Substations (P156584) REPORT NO.: RES59471 DOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF MODERNIZATION AND UPGRADE OF TRANSMISSION SUBSTATIONS APPROVED ON NOVEMBER 23, 2016 TO REPUBLIC OF UZBEKISTAN ENERGY & EXTRACTIVES EUROPE AND CENTRAL ASIA Regional Vice President: Antonella Bassani Country Director: Tatiana A. Proskuryakova Regional Director: Charles Joseph Cormier Practice Manager/Manager: Stephanie Gil Task Team Leader(s): Koji Nishida, Maksudjon Safarov The World Bank Modernization and Upgrade of Transmission Substations (P156584) I. BASIC DATA Product Information Project ID Financing Instrument P156584 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 23-Nov-2016 31-Dec-2023 Organizations Borrower Responsible Agency Republic of Uzbekistan JSC "National Electricity Grid of Uzbekistan" Project Development Objective (PDO) Original PDO The project development objective is to improve the technical efficiency and reliability of the power transmission networks in Uzbekistan. Summary Status of Financing (US$, Millions) Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IBRD-86640 23-Nov-2016 20-Sep-2017 28-Dec-2017 31-Dec-2023 92.00 59.95 32.05 IDA-59160 23-Nov-2016 20-Sep-2017 28-Dec-2017 31-Dec-2023 39.16 39.16 0 IDA-59170 23-Nov-2016 20-Sep-2017 28-Dec-2017 31-Dec-2023 18.84 18.84 0 The World Bank Modernization and Upgrade of Transmission Substations (P156584) Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No II. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES The Project was approved on November 23, 2016, and became effective on December 28, 2017. Despite the slow start of disbursement due to the preparation of complex procurement packages, the Project has demonstrated steady disbursements from 2018 and has been rated Satisfactory in recent years for both the Progress Towards Achievement of PDO and Implementation Progress, except for the ISR dated Dec 2021 when the FY2020 IFRS-based financial statements were overdue. Currently, there are no overdue financial audits. The Project is financed from three sources: 2 IDA credits and an IBRD loan. The proposed extension is related to IBRD Loan 8664-UZ, while two IDA Credits 5916-UZ and 5917-UZ will close on December 31, 2023. In its letter dated December 20, 2023 (No.2/45-1-9866), the Borrower (Minister of Economy and Finance) has requested to extend the closing date of the IBRD Loan from December 31, 2023, to June 30, 2024. No other changes to the Project are being requested. If approved, this will be the second, and last, extension for the IBRD loan with a cumulative extension period of 18 months in total. The project was previously restructured in November 2021 to remove subcomponent 1.2 Emergency Outage Management Systems and extend the project closing date from December 31, 2022, to December 31, 2023. The extension is necessary to complete the critical procurement package: "procurement of Gas Insulated Switchgear (GIS) equipment for 220/110kV Yuksak substation" to achieve the Project Development Objective (PDO). The completion of the substation rehabilitation with the GIS technology is particularly critical to ensure and improve the reliability of electricity supply to Tashkent city, which has suffered deteriorating supply reliability, including a blackout in January 2023. The preparation of the package took time as the GIS technology is new to NEGU and various COVID-19 restrictions were in place. The package was contracted on July 5, 2022. During the implementation, the contractor faced further challenges due to prolonged processes and negotiations for the land acquisition and the relocation of the existing underground cable, resulting in further delay. As of December 2023, while the contractor has already supplied the equipment and the construction for the equipment buildings is under implementation, it will require three to four more months to complete the installation and commissioning of the equipment. Taking into consideration potential disruptions due to winter weather, the proposed extension to June 2024 will ensure the full completion of the contract. While the project still has undisbursed amount of US$32 million as of December 2023, the remaining payments for the ongoing contracts, other than the GIS package, will be processed by the end of December 2023. The amount for the remaining installation and commissioning work under the GIS package is around US$3 million, which will be paid during the extended period. The Bank team confirmed with NEGU that this is the last extension for the project, and NEGU has agreed to use its own financing for any pending expenses beyond the extended period. The World Bank Modernization and Upgrade of Transmission Substations (P156584) III. DETAILED CHANGES LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications IBRD-86640 Effective 31-Dec-2022 31-Dec-2023 30-Jun-2024 31-Oct-2024 IDA-59160 Effective 31-Dec-2022 31-Dec-2023 31-Dec-2023 30-Apr-2024 IDA-59170 Effective 31-Dec-2022 31-Dec-2023 31-Dec-2023 30-Apr-2024