Public Disclosure Copy The World Bank Implementation Status & Results Report Assistance to the National Commission for Regulation of Communal Services: District Heating Regulatory Reform Support Pr Assistance to the National Commission for Regulation of Communal Services: District Heating Regulatory Reform Support Pr EUROPE AND CENTRAL ASIA | Ukraine | Energy & Extractives Global Practice | Recipient Executed Activities | Investment Project Financing | FY 2014 | Seq No: 1 | ARCHIVED on 27-Dec-2017 | ISR29321 | Implementing Agencies: Ministry of Economy, NEURC - The Regulator Key Dates Key Project Dates Bank Approval Date:23-Jun-2014 Effectiveness Date:18-Feb-2015 Original Closing Date:31-May-2016 Revised Closing Date:31-Dec-2017 Project Development Objectives Project Development Objective (from Project Appraisal Document) The objective of the activity is to assist the National Commission of Ukraine for Regulation of Communal Services (Regulator) with transitioning from “cost plus” to “incentive-based” district heating regulation. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  --  Moderately Unsatisfactory Overall Implementation Progress (IP)  --  Moderately Unsatisfactory Implementation Status and Key Decisions Project implementation is coming to an end as the project closes on December 31, 2017. The Bank is working with the Regulator and the Consultant to try and resolve the differences between the two. We hope that the parties will find an amicable solution, which will lead to the closing of the project on a positive note. 12/27/2017 Page 1 of 4 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Assistance to the National Commission for Regulation of Communal Services: District Heating Regulatory Reform Support Pr Risks Overall Risk Rating Risk Category Rating at Approval Previous Rating Current Rating Overall  --  --  Substantial Comments Given the payments dispute between the Regulator and the Consultant, there is substantial risk that the two parties will not reach an agreement, and they would need mediation. The Bank is prepared to finance an independent consultant to mediate between the two parties in order to minimize the reputational risk from the dispute. Results Project Development Objective Indicators PHINDPDOTBL Delivery of reports which constribute towards incentive-based pricing in the district heating sector. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value None -- Partially delivered Delivered Date 23-Jun-2014 -- 11-Dec-2017 29-Dec-2017 Overall Comments The consultants have produced the following acceptable reports which contribute towards meeting the PDO: (1) draft regulatory accounting and reporting, (2) draft procedures and regulations for investments, (3) guidelines for analyzing data provided by licensees, (4) advice on software for transitional pricing methodology The reports are of acceptable quality, and will help advance incentive-base regulation in the district heating sector. Intermediate Results Indicators 12/27/2017 Page 2 of 4 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Assistance to the National Commission for Regulation of Communal Services: District Heating Regulatory Reform Support Pr PHINDIRITBL Development of draft incentive-based tariff setting methodology (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value Developed -- Partially developed Developed Date 23-Jun-2014 -- 11-Dec-2017 29-Dec-2017 Overall Comments The draft methodology was developed, but there was no buy-in from the Regulator, and the methodology was not piloted as originally planned. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P151321 TF-17571 Effective USD 1.94 1.94 0.00 0.37 1.55 19% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P151321 TF-17571 Effective 18-Aug-2014 18-Aug-2014 18-Feb-2015 31-May-2016 31-Dec-2017 Cumulative Disbursements 12/27/2017 Page 3 of 4 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Assistance to the National Commission for Regulation of Communal Services: District Heating Regulatory Reform Support Pr Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 12/27/2017 Page 4 of 4 Public Disclosure Copy