Public Disclosure Copy The World Bank Implementation Status & Results Report GAS SECTOR DEVELOPMENT (P093765) GAS SECTOR DEVELOPMENT (P093765) EUROPE AND CENTRAL ASIA | Turkey | Energy and Mining Global Practice | IBRD/IDA | Specific Investment Loan | FY 2006 | Seq No: 14 | ARCHIVED on 29-Jun-2015 | ISR20045 | Implementing Agencies: Key Dates Key Project Dates Board Approval date:29-Nov-2005 Effectiveness Date:07-Mar-2006 Planned Mid Term Review Date:15-Apr-2012 Actual Mid-Term Review Date:15-Apr-2012 Original Closing Date:31-Dec-2012 Revised Closing Date:31-Dec-2020 Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project objective is to increase the reliability and stability of gas supply in Turkey by implementing critically needed gas storage and network infrastructure, and support BOTAS in strengthening its operations as a financially stable and commercially managed corporation. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Underground storage:(Cost $607.00 M) Network expansion:(Cost $88.00 M) Supervision Consultant:(Cost $15.60 M) Environmental Monitoring Consultant:(Cost $2.60 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Satisfactory  Satisfactory Overall Implementation Progress (IP)  Moderately Satisfactory  Moderately Satisfactory Overall Risk Rating  Moderate  Moderate 6/29/2015 Page 1 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report GAS SECTOR DEVELOPMENT (P093765) Implementation Status and Key Decisions The contract implementation of Tuz Golu gas storage facility, which is of crucial importance for the supply security of the Turkish gas market, began in 2012. Phase 0 of the project comprising the installation of water pipelines, brine discharge pipelines and the energy transmission lines has been completed on December 31, 2013. Construction activities continue successfully, with the focus being on the drilling and leaching activities at the wells. The drilling is completed, and leaching activity has started in April 2014 in six caverns covered under Phase 1 reaching 30% of the total volume on the average in June 2015. Besides, four of the remaining six caverns of Phase 2 have been drilled for solution mining. Completion of the project is scheduled for 2016 (Phase 1 – 50% of storage capacity) and 2020 (Phase 2/total project). Erzincan compressor station has been operational since December 2013 by making a good contribution to the gas supply of the country just before severe winter conditions. The total cost of the project has risen significantly from US$ 325 million since the appraisal of the project, thus BOTAS needed additional financing in order to complete the Tuz Golu storage project. Based on the requests from the Turkish Government and BOTAS, the additional financing of US$400 million, approved by the Bank in July 2014, has been effective since November 20, 2014. 6/29/2015 Page 2 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report GAS SECTOR DEVELOPMENT (P093765) 6/29/2015 Page 3 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report GAS SECTOR DEVELOPMENT (P093765) 6/29/2015 Page 4 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report GAS SECTOR DEVELOPMENT (P093765) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  Substantial  Substantial Macroeconomic  --  Moderate  Moderate Sector Strategies and Policies  --  Moderate  Moderate Technical Design of Project or Program  --  Low  Low Institutional Capacity for Implementation and Sustainability  --  Moderate  Moderate Fiduciary  --  Moderate  Moderate Environment and Social  --  Substantial  Moderate Stakeholders  --  Low  Low Other  --  Moderate  -- Overall  --  Moderate  Moderate Results Project Development Objective Indicators 6/29/2015 Page 5 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report GAS SECTOR DEVELOPMENT (P093765) PHINDPDOTBL  Increased natural gas storage capacity. [Phase 1: 0.48 bcm by 2016, Phase 2: 0.96 bcm by end-2020] (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0 0 0 0.96 bcm Date 31-Dec-2005 25-Dec-2014 25-Jun-2015 31-Dec-2020 PHINDPDOTBL  Increased capacity of transmission lines to carry gas. (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 22 BCM/ year 40 BCM/year 40 BCM/year 40 BCM/year Date 31-Dec-2005 25-Dec-2014 25-Jun-2015 31-Dec-2020 PHINDPDOTBL  Storage operates as separate business unit to ensure independence and open access. (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N N Y Date 31-Dec-2005 25-Dec-2014 25-Jun-2015 31-Dec-2020 PHINDPDOTBL  Achievement of agreed financial targets (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value -- Y Y Y Date 31-Dec-2005 25-Dec-2014 25-Jun-2015 31-Dec-2020 PHINDPDOTBL  Direct project beneficiaries (Number, Core) Baseline Actual (Previous) Actual (Current) End Target Value 6000000.00 10700000.00 10700000.00 15000000.00 6/29/2015 Page 6 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report GAS SECTOR DEVELOPMENT (P093765) Date 31-Dec-2005 25-Dec-2014 25-Jun-2015 31-Dec-2020 PHINDPDOTBL  Female beneficiaries (Percentage, Core Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 50.00 50.00 50.00 50.00 Overall Comments Intermediate Results Indicators PHINDIRITBL  Compressor capacity of system increasing (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Increased Value 0 MW 120 MW 120 MW capacity of 70 MW Date 31-Dec-2005 25-Dec-2014 25-Jun-2015 31-Dec-2020 PHINDIRITBL  Storage capacity is built with completion of Phase 1 in 2016 and Phase 2 in 2020 (% completion). (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0% / 0% 65%/15% 70%/20% 100% / 100% Date 31-Dec-2005 25-Dec-2014 25-Jun-2015 31-Dec-2020 6/29/2015 Page 7 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report GAS SECTOR DEVELOPMENT (P093765) PHINDIRITBL  Achievement of agreed financial targets - Debt Service Coverage Ratio (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value -- 13.30 4.00 1.20 Date -- 25-Dec-2014 25-Jun-2015 31-Dec-2020 PHINDIRITBL  Comprehensive costs available for storage on a stand alone basis: Project cost information collected (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value Y Y Y Y Date 31-Dec-2005 25-Dec-2014 25-Jun-2015 31-Dec-2020 PHINDIRITBL  Comprehensive cost available for storage on a stand alone basis: Storage business established. (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N N Y Date 31-Dec-2005 25-Dec-2014 25-Jun-2015 31-Dec-2020 Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P093765 IBRD-73420 Closed USD 325.00 325.00 0.00 325.00 0.00 100% P093765 IBRD-83490 Effective USD 400.00 400.00 0.00 154.59 245.41 39% Key Dates (by loan) 6/29/2015 Page 8 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report GAS SECTOR DEVELOPMENT (P093765) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P093765 IBRD-73420 Closed 29-Nov-2005 02-Feb-2006 07-Mar-2006 31-Dec-2012 30-Sep-2014 P093765 IBRD-83490 Effective 02-Jul-2014 02-Oct-2014 20-Nov-2014 31-Dec-2020 31-Dec-2020 Cumulative Disbursements Restructuring History Level Approved on 21-Dec-2012 ,Level 2 Approved on 06-Dec-2013 ,Level 2 Approved on 22-May-2014 Related Project(s) P133565-Gas Sector Development Additional Financing 6/29/2015 Page 9 of 9 Public Disclosure Copy