Public Disclosure Copy The World Bank Implementation Status & Results Report Urumqi District Heating Project (P120664) Urumqi District Heating Project (P120664) EAST ASIA AND PACIFIC | China | Energy and Mining Global Practice | IBRD/IDA | Specific Investment Loan | FY 2011 | Seq No: 6 | ARCHIVED on 18-Dec-2014 | ISR17243 | Implementing Agencies: Urumqi Heating Company Key Dates Key Project Dates Board Approval date:17-May-2011 Effectiveness Date:27-Sep-2011 Planned Mid Term Review Date:15-Dec-2012 Actual Mid-Term Review Date:14-Jan-2013 Original Closing Date:31-Dec-2015 Revised Closing Date:31-Dec-2015 Project Development Objectives Project Development Objective (from Project Appraisal Document) The objective of the Project is to connect consumers in selected districts of Urumqi to district heating services with improved energy efficiency and environmental performance. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name A. Shuimogou District Urumqi CHP Heating Network Component (UHN):(Cost $178.50 M) B. Shayibake District CHP Heating Network Component (SHN):(Cost $131.30 M) C. Institutional Development and Project Management:(Cost $1.30 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 12/18/2014 Page 1 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Urumqi District Heating Project (P120664) Implementation Status and Key Decisions After 3.5 years of project implementation, the project has committed 77% and disbursed 60% of the World Bank loan of US$100 million. About 64 % of total planned heating area is connected to the UDHC network. Additional planned commitments should raise loan commitments to about 90%. The project has replaced use of 1626 MW of inefficient coal-fired boilers and connected their load to a CHP-based DH network. About one third of this load is currently supplied by newly constructed gas-fired heat-only boilers, which the CHP network serves as backup capacity. Most of the remaining planned load is currently served by gas fired heat only boilers as a result of Urumqi's gasification program, which started in late spring 2012. Both this project and the gasification program have contributed to improved air quality in the city. The city is also addressing the increased cost of supply by undertaking a study to optimize operation of multiple heat sources in the UDHC network, to be financed from this project. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  --  Low Macroeconomic  --  --  Low Sector Strategies and Policies  --  --  Moderate Technical Design of Project or Program  --  --  Moderate Institutional Capacity for Implementation and Sustainability  --  --  Moderate Fiduciary  --  --  Moderate Environment and Social  --  --  Moderate Stakeholders  --  --  Moderate Other  --  --  -- 12/18/2014 Page 2 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Urumqi District Heating Project (P120664) Overall  --  --  Moderate Results Project Development Objective Indicators PHINDPDOTBL  Energy efficiency performance indicator: Reduced annual boiler plant coal consumption for heating per connected floor area (tce / million m2) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 18100.00 11500.00 5100.00 Date 31-Dec-2009 24-Mar-2014 24-Mar-2014 31-Dec-2015 Comments The actual value is the monitored value based on the full calendar year data of 2013. This indicator will be updated in the next ISR by when the full calendar year data of 2014 becomes available. Please note the value of 18100 (of ISR 5) is now corrected to be 11500 to reflect the unit tce /million m2. PHINDPDOTBL  Environmental performance indicators: Reduced SO2 annual boiler plant emissions per connected floor area (tons/ million m2) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 408.00 408.00 248.00 Date 31-Dec-2009 24-Mar-2014 24-Mar-2014 31-Dec-2015 Comments The actual value is the monitored value based on the full calendar year data of 2013. This indicator will be updated in the next ISR by when the full calendar year data of 2014 becomes available. PHINDPDOTBL  Environmental performance indicators: Reduced dust annual boiler plant emissions per connected floor area (tons/ million m2) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 188.00 188.00 129.00 Date 31-Dec-2009 24-Mar-2014 24-Mar-2014 31-Dec-2015 Comments The actual value is the monitored value based on the full calendar year data of 2013. This indicator will be updated in the next ISR by when the full calendar year data of 2014 becomes available. 12/18/2014 Page 3 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Urumqi District Heating Project (P120664) PHINDPDOTBL  Environmental performance indicators: Reduced CO2 annual boiler plant emissions per connected floor area (tons/thousand m2) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 29.50 29.50 14.10 Date 31-Dec-2009 24-Mar-2014 24-Mar-2014 31-Dec-2015 Comments The actual value is the monitored value based on the full calendar year data of 2013. This indicator will be updated in the next ISR by when the full calendar year data of 2014 becomes available. PHINDPDOTBL  Financial performance indicators: Maintain working ratio not higher than 90% (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value -- 94.00 93.00 90.00 Date -- 10-Dec-2013 05-Dec-2014 31-Dec-2015 Overall Comments Intermediate Results Indicators PHINDIRITBL  1.1 Connected heated area to UHN network (Million m2) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 7.99 7.99 14.70 Date 31-Dec-2009 20-Dec-2013 17-Aug-2014 31-Dec-2015 Comments There was no increase in heating area in 2014. The company is reassessing any additions for the final year of implementation given the 12/18/2014 Page 4 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Urumqi District Heating Project (P120664) gasification program. PHINDIRITBL  1.2 Kilometers of pipelines installed (km) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 39.20 41.90 54.00 Date 31-Dec-2009 20-Dec-2013 17-Aug-2014 31-Dec-2015 PHINDIRITBL  1.3 Construction of new pressure regulating stations (large substation) (nb of stations) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 1.00 1.00 Date 31-Dec-2009 20-Dec-2013 17-Aug-2014 31-Dec-2015 PHINDIRITBL  1.4 Number of substations constructed or rehabilitated (nb of stations) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 58.00 60.00 90.00 Date 31-Dec-2009 20-Dec-2013 17-Aug-2014 31-Dec-2015 12/18/2014 Page 5 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Urumqi District Heating Project (P120664) PHINDIRITBL  2.1 Connected heated area to SHN network (Million m2) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 10.41 10.73 14.70 Date 31-Dec-2009 20-Dec-2013 17-Aug-2014 31-Dec-2015 Comments There was a slight increase in heating area in 2014. The company is reassessing any additions for the final year of implementation given the gasification program. PHINDIRITBL  2.2 Kilometers of pipelines installed (km) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 36.95 37.90 39.00 Date 31-Dec-2009 20-Dec-2013 17-Aug-2014 31-Dec-2015 PHINDIRITBL  2.3 Construction of a pressure regulation station (large substation) (nb of stations) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 1.00 1.00 Date 31-Dec-2009 14-Jan-2013 17-Aug-2014 31-Dec-2015 PHINDIRITBL  2.4 Number of substations constructed or rehabilitated (nb of substations) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 47.00 86.00 50.00 Date 31-Dec-2009 20-Dec-2013 17-Aug-2014 31-Dec-2015 12/18/2014 Page 6 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Urumqi District Heating Project (P120664) PHINDIRITBL  3.1 Strengthening the billing and accounting system of UDHC (set of TA activities) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Bid opening expected in Equipment Ongoing HRBEE Specifications under Value week of December 9, installed and assessment study preparation 2014 used Date 01-Apr-2011 16-Apr-2014 02-Dec-2014 31-Dec-2015 PHINDIRITBL  3.2 Technical assistance to UDHC and study of how to optimize the multi-heat source operation, management and monitoring (set of TAactivities) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The Study is expected The Study is expected to Final Report Value Draft TOR available to start in May 2014. start in January 2015 available Date 01-Apr-2011 16-Apr-2014 25-Nov-2014 31-Dec-2015 PHINDIRITBL  3.3 Number of study tours implemented (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target 3 domestic 3 domestic 20 domestic Value 0 1 international 1 international 2 international Date 01-Apr-2011 16-Apr-2014 17-Aug-2014 31-Dec-2015 Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P120664 IBRD-80460 Effective USD 100.00 100.00 0.00 59.92 40.08 60% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P120664 IBRD-80460 Effective 17-May-2011 08-Jun-2011 27-Sep-2011 31-Dec-2015 31-Dec-2015 12/18/2014 Page 7 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Urumqi District Heating Project (P120664) Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 12/18/2014 Page 8 of 8 Public Disclosure Copy