Public Disclosure Copy
The World Bank Implementation Status & Results Report
District Heating Efficiency Improvement Project (P132443)
District Heating Efficiency Improvement Project (P132443)
EUROPE AND CENTRAL ASIA | Moldova | Energy & Extractives Global Practice |
IBRD/IDA | Investment Project Financing | FY 2015 | Seq No: 6 | ARCHIVED on 27-Jun-2018 | ISR32767 |
Implementing Agencies: Ministry of Economy, Moldova Energy Projects Implementation Unit (MEPIU), Ministry of Finance, Ministry of Economy,
Termoelectrica
Key Dates
Key Project Dates
Bank Approval Date:21-Nov-2014 Effectiveness Date:14-Aug-2015
Planned Mid Term Review Date:28-Sep-2018 Actual Mid-Term Review Date:--
Original Closing Date:30-Jun-2020 Revised Closing Date:30-Jun-2020
Project Development Objectives
Project Development Objective (from Project Appraisal Document)
The objective of the proposed project is to contribute to improved operational efficiency and financial viability of the District Heating company and to
improve quality and reliability of heating services delivered to the population of Chisinau.
Has the Project Development Objective been changed since Board Approval of the Project Objective?
No
PHRPDODEL
Components
Name
Component 1: Investments to District Heating System:(Cost $33.30 M)
Component 2: Support for streamlining operations:(Cost $5.60 M)
Component 3: Project Management:(Cost $1.50 M)
Overall Ratings
Name Previous Rating Current Rating
Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory
Overall Implementation Progress (IP) Satisfactory Satisfactory
Overall Risk Rating Substantial Substantial
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Public Disclosure Copy
Public Disclosure Copy
The World Bank Implementation Status & Results Report
District Heating Efficiency Improvement Project (P132443)
Implementation Status and Key Decisions
The Project continues to register good implementation progress. Disbursements reached US$32.21 million or 80% of the total committed amount of
US$40.5 million in about 2.5 years of implementation. The expected disbursements for the July 1, 2018 – June 30, 2019 period (WB fiscal year 2019)
are US$4.14 million or an additional 10.2%. Total project disbursements until the end of FY19 are estimated to reach US37.41 million or 92.37%. This is
in less than 4 years of implementation and represents an outstanding achievement for an infrastructure project of such complexity, TE’s performance in
general and its manager in particular, as well as the excellent collaboration between the Project’s Team and the Client. It could serve as show case
within the Bank and in Client countries.
Component 1: Investments to District Heating System
All priority investments and most investment packages were successfully completed or being implementing per agreed schedule.
A new large capacity pumping station and a new main interconnection pipe were constructed to streamline Termoelectrica's operation and optimize the
supply of heat in the transportation network. The new pumping station brought important benefits by reduced electricity and gas consumption and
therefore reduced CO2 emissions. It helped optimize the transportation and distribution of heat and therefore increase service quality.
Three large pumping stations were rehabilitated and modern equipment was installed allowing Termoelectrica to reduce its energy consumption and
further optimization of the DH network.
Major segments of transmission network were replaced with modern preinsulated pipes helping TE to reduce its network losses and improve the
efficiency of heat supply to end-user consumers.
Individual Heat Substations were installed replacing the old Central Heat Substations improving the control of heat consumption on demand side and
the comfort of end user consumers.
Remaining investment packages.
Two new investment packages remain to be implemented. A new investment will finance the Technological upgrade of pumping systems using Variable
Speed Drivers (VSD) in the CHP-2 and the Heat-only-boiler (HOB) West. This investment is critical to improve the performance of bulk supply from the
CHP-2 and the HOB-West, and will bring important energy savings. The second investment will finance the Supply and installation of Individual Heating
Substations and associated piping in residential buildings. This is the last investment package under the Project and will be implemented depending on
remaining funds.
Component 2: Support for streamlining operations. Five out of six consulting contracts supporting the streamlining of TE's operations, including on
staff retrenchment and training were successfully completed. These included:
1 . Technical Assistance for Social Impact Mitigation /Training under the Staff Reduction Program. A new methodology for optimization of
organizational structure of TE was elaborated, including skills inventory and of redundant workers or particular category of workers, and a Social
Impact Mitigation Plan (SIMP) including the Grievance Redress Mechanism (GRM). The SIMP was approved by the Bank and outlines realistic
procedures for consultations, the grievance mechanism, the procedure for selection of employees, who were subject to staff retrenchment, standards
for determining the amount of severance payments and their timely payments, top-up assistance programs for retrenched employees (training,
outplacement, job assistance and economic development opportunities), as per WB's social safeguards.
2 . Environmental Audit of CHP-1 site. The Environmental Audit of CHP-1 site was carried out to analyze the CHP-1’s final decommissioning
scenarios, including evaluation of their environmental aspects.
3 . Technical Supervision for Works Contracts.
4 . International Design Consultant. To speed up project implementation and to build up TE's internal design capacities, an individual international
design consultant was hired to revise the design documents elaborated by TE’s specialists. The consultant attested a significant improvement in TE's
design capacities over the period. This arrangement also significantly helped advance and complete important network replacement contracts.
5 . Assessment of heat losses in DH network in Chisinau. This assignment was included later in the Project per Government's request to support
ANRE and TE in the completion of TE's heat tariff adjustment, which served as conditionality under the IMF program. The process was duly
completed by April 2017 and a cost recovery tariff was approved, following consultant's recommendations.
Ongoing:
1 . Public awareness campaigns for dissemination of the benefits of Energy Efficiency improvements and efficiently operating DH systems. This will
help increase Public Awareness of energy efficiency improvements under the DHEIP, Public Level and Attitude and Corporate Public Image of TE
and development of its Corporate Communication Strategy.
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Public Disclosure Copy
Public Disclosure Copy
The World Bank Implementation Status & Results Report
District Heating Efficiency Improvement Project (P132443)
Risks
Systematic Operations Risk-rating Tool
Risk Category Rating at Approval Previous Rating Current Rating
Political and Governance -- Substantial Substantial
Macroeconomic -- Substantial Substantial
Sector Strategies and Policies -- Substantial Substantial
Technical Design of Project or Program -- Low Low
Institutional Capacity for Implementation and
Sustainability
-- Substantial Substantial
Fiduciary -- Moderate Moderate
Environment and Social -- Moderate Moderate
Stakeholders -- Moderate Moderate
Other -- -- --
Overall -- Substantial Substantial
Results
Project Development Objective Indicators
PHINDPDOTBL
Reduction in network heat losses (GCal) (Number, Custom)
Baseline Actual (Previous) Actual (Current) End Target
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Public Disclosure Copy
The World Bank Implementation Status & Results Report
District Heating Efficiency Improvement Project (P132443)
Value 360,000.00 355,000.00 349,562.00 330,000.00
Date 16-Feb-2015 19-Oct-2017 01-Jan-2018 30-Jun-2020
PHINDPDOTBL
Debt Service Coverage Ratio (Percentage, Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value 2.45 0.00 32.03 1.20
Date 16-Feb-2015 17-Apr-2015 01-Jan-2018 30-Jun-2020
PHINDPDOTBL
Projected lifetime fuel savings (Mega Joules (MJ), Custom)
Baseline Actual (Previous) Actual (Current) End Target
9,603,288,368.
Value 0.00 -- 218,961,041.00
00
Date 16-Feb-2015 -- 01-Jan-2018 30-Jun-2020
PHINDPDOTBL
Projected lifetime energy savings (Megawatt hour(MWh), Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value 0.00 -- 74,647.00 2,849,208.00
Date 16-Feb-2015 -- 01-Jan-2018 30-Jun-2020
PHINDPDOTBL
Percentage of households that reported improved quality of service in buildings where IHSs were installed (Percentage)
(Percentage, Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value 0.00 0.00 0.00 80.00
Date 16-Feb-2015 19-Oct-2017 01-Jan-2018 30-Jun-2020
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The World Bank Implementation Status & Results Report
District Heating Efficiency Improvement Project (P132443)
Comments
This indicator has been planned to be measured by the yearly DH quality of service surveys conducted in the municipality of
Chisinau, which are part of the Technical Assistance Component of the Project under the contract C3.6 – Public Awareness and
Communication Strategy. The indicator could not be measured under this ISR because the later start of contract C3.6, and will be duly
reported in the next ISR sequence.
PHINDPDOTBL
Projected lifetime reduction in CO2 emissions due to investments financed under the project (tCO2) (Tones/year, Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value 0.00 7,877.00 22,216.00 685,299.00
Date 16-Feb-2015 19-Oct-2017 01-Jan-2018 16-Feb-2046
PHINDPDOTBL
Districth Heating systems breakdown rate (Number/km) (Number, Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value 1.36 1.30 0.91 0.90
Date 23-Oct-2014 19-Oct-2017 01-Jan-2018 30-Nov-2019
Overall Comments
The PMI’s are updated either on annual or bi-annual basis depending on the indicator. Hence the January 1, 2018 PMI’s status. The next update
will be made after June 30 and duly reflected in the next SPN documents and ISR.
Intermediate Results Indicators
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Public Disclosure Copy
The World Bank Implementation Status & Results Report
District Heating Efficiency Improvement Project (P132443)
PHINDIRITBL
People that gained access to more energy-efficient cooking and/or heating facilities (Number, Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value 27,000.00 -- 76,050.00 109,000.00
Date 16-Feb-2015 -- 01-Jan-2018 30-Jun-2020
PHINDIRITBL
People that gained access only through fuel switching (Number, Custom Breakdown)
Baseline Actual (Previous) Actual (Current) End Target
Value 27,000.00 45,000.00 76,050.00 109,000.00
Date 16-Feb-2015 19-Oct-2017 01-Jan-2018 30-Jun-2020
PHINDIRITBL
Actual fuel savings (GCal) (Text, Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value 0.00 0.00 52,272 79,138
Date 16-Feb-2015 -- 01-Jan-2018 30-Jun-2020
PHINDIRITBL
Self-financing ratio (Percentage, Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value 55.00 179.00 124.00 25.00
Date 16-Feb-2015 22-Nov-2017 01-Jan-2018 30-Jun-2020
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The World Bank Implementation Status & Results Report
District Heating Efficiency Improvement Project (P132443)
PHINDIRITBL
Termination of CHP-1 operations (Date, Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value 16-Feb-2015 31-Mar-2016 29-Mar-2016 31-Mar-2016
Date 16-Feb-2015 31-Mar-2016 29-Mar-2016 31-Mar-2016
Comments
The CHP-1 has been officially announced to terminate its operation on March 29, 2016. However, the CHP-1 has been occasionally put into
operation for cost savings reasons, mainly during the summer seazon.
PHINDIRITBL
Reduction in Heat Consumption due to transition from Group Heating Substations to Individual Heating Substations (GCal)
(Number, Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value 0.00 0.00 0.00 709.00
Date 16-Feb-2015 19-Oct-2017 01-Jan-2018 30-Jun-2020
Comments
The reduction in heat consumption due to transition from GHS to IHS could be observed at a later stage of Project Implementation, given
that these investments were recently implemented, and one larger contract for installation of IHSs is still remaining to be implemented.
PHINDIRITBL
Government buildings reconnected to DH system (Number, Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value 0.00 23.00 50.00 44.00
Date 16-Feb-2015 19-Oct-2017 01-Jan-2018 30-Jun-2018
Comments
The buildings' number provided here includes 22 public institutions under C1.3 Contract and 28 institutions under C1.6 Contract. Real IHS
utilization - 43 institutions from which 15 institutions under the C1.3 Contract and 28 institution under the C1.6 Contract.
Several public institutions refuse con reconnect to the DH and install IHS, which is described in the Key Issues and Project Status sections.
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Public Disclosure Copy
The World Bank Implementation Status & Results Report
District Heating Efficiency Improvement Project (P132443)
PHINDIRITBL
Staff who received re-training (Number, Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value 0.00 17.00 17.00 648.00
Date 16-Feb-2015 19-Oct-2017 01-Jan-2018 30-Jun-2020
Comments
From 57 redundant employees (II stage) only 26 have subscribed for the training programs. Afterwards, 3 employees accepted to be
transferred to other positions within the company, 2 employees found a new job, and other 4 did not attend the trainings due to personal
reasons.
PHINDIRITBL
Staff who received severance payment (Number, Custom)
Baseline Actual (Previous) Actual (Current) End Target
Value 0.00 -- 46.00 898.00
Date 16-Feb-2015 -- 01-Jan-2018 30-Jun-2020
Comments
From 57 redundant employees 8 persons have been transferred to other positions within the company, 1 person died, and other 2 persons
are still on sick leave.
Overall Comments
Data on Financial Performance
Disbursements (by loan)
Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed
P132443 IBRD-84510 Effective USD 40.50 40.50 0.00 32.21 8.29 80%
Key Dates (by loan)
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Public Disclosure Copy
Public Disclosure Copy
The World Bank Implementation Status & Results Report
District Heating Efficiency Improvement Project (P132443)
Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date
P132443 IBRD-84510 Effective 21-Nov-2014 15-Apr-2015 14-Aug-2015 30-Jun-2020 30-Jun-2020
Cumulative Disbursements
Restructuring History
There has been no restructuring to date.
Related Project(s)
There are no related projects.
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