Public Disclosure Copy The World Bank Implementation Status & Results Report EU/IPA Energy Sector Technical Assistance Project (P131921) EU/IPA Energy Sector Technical Assistance Project (P131921) EUROPE AND CENTRAL ASIA | Turkey | Energy & Extractives Global Practice | Recipient Executed Activities | Technical Assistance Loan | FY 2014 | Seq No: 5 | ARCHIVED on 09-Feb-2017 | ISR26762 | Implementing Agencies: Key Dates Key Project Dates Bank Approval Date:30-May-2014 Effectiveness Date:30-May-2014 Planned Mid Term Review Date:15-Mar-2016 Actual Mid-Term Review Date:04-Apr-2016 Original Closing Date:31-Mar-2017 Revised Closing Date:31-Mar-2017 Project Development Objectives Project Development Objective (from Project Appraisal Document) The development objective is the enhancement of the Turkish energy sector in line with the EU Energy priorities and strategies in energy efficiency, renewable energy, and the natural gas market. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name (1) MENR - (a) institutional review and capacity building of MENR and (b) review of alignment of Turkey's legal and institutional fr amework with the EU's energy acquis.:(Cost $1.12 M) (2) Renewable Energy - (a) review of current situation, barriers and road map, (b) renewable energy grid integration and (c) busines s development services to small and medium-sized industries.:(Cost $3.03 M) (3) Natural Gas - (a) support for the unbundling of the national gas company BOTAŞ; and (b) design and regulations for a gas trading platform and a plan for effective gas market opening.:(Cost $2.67 M) (4) Energy Efficiency - (a) market development including business development services to small and medium-sized industries and (b) capacity building for commercial energy efficiency lending market.:(Cost $5.46 M) (5) Visibility and Public Awareness.:(Cost $0.61 M) Trust fund administration, program management and supervision.:(Cost $1.15 M) Overall Ratings 2/9/2017 Page 1 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report EU/IPA Energy Sector Technical Assistance Project (P131921) Name Previous Rating Current Rating Progress towards achievement of PDO  Satisfactory  Moderately Satisfactory Overall Implementation Progress (IP)  Moderately Satisfactory  Moderately Satisfactory Overall Risk Rating  Substantial  Substantial Implementation Status and Key Decisions There has been progress in project implementation. The acquis alignment, gas market and capacity building related work has been mostly completed. The Regulatory Impact Assessment Report has been distributed for management comments. Energy efficiency and renewable energy development related contracts have continued with more than 170 EE audit reports and 40 small-scale RE assessment reports prepared. 2/9/2017 Page 2 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report EU/IPA Energy Sector Technical Assistance Project (P131921) 2/9/2017 Page 3 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report EU/IPA Energy Sector Technical Assistance Project (P131921) 2/9/2017 Page 4 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report EU/IPA Energy Sector Technical Assistance Project (P131921) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  Moderate  Substantial Macroeconomic  --  Moderate  Moderate Sector Strategies and Policies  --  Low  Low Technical Design of Project or Program  --  Low  Low Institutional Capacity for Implementation and Sustainability  --  Substantial  Substantial Fiduciary  --  Substantial  Substantial Environment and Social  --  Low  Low Stakeholders  --  Low  Low Other  --  --  -- Overall  --  Substantial  Substantial Results Project Development Objective Indicators PHINDPDOTBL  MENR (Energy Sector Alignment) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The MENR approves a program for the There has been sizable There has been sizable enhancement progress under all progress under all of the Turkish Turkey's energy sector can contracts with the contracts with the energy sector be enhanced in line with related contract related contract in line with the Value the EU energy priorities implementation (CS- implementation (CS-01) EU energy and strategies. 01) and all reports and all reports except priorities and have been submitted the RIA have been strategies, for comments. approved by the MENR. based on a review and regulatory impact 2/9/2017 Page 5 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report EU/IPA Energy Sector Technical Assistance Project (P131921) assessment of alignment of Turkey's legal and institutional framework for electricity, naturalgas, energy efficiency and renewable energy with the EU's energy acquis. Date 18-Jul-2012 20-Jun-2016 02-Jan-2017 31-Mar-2017 PHINDPDOTBL  Natural Gas Market Development (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Gas Trading Platform BOTAŞ and design has been drafted, EMRA approve Gas Trading Platform widely discussed and a design and has been drafted, delivery approved by the regulations, Design and regulations not widely discussed and MENR, EMRA and respectively, for Value available. delivery approved by EPIAS. EPIAS is now a mechanism the MENR, EMRA and working on legislation for the EPIAS. together with EMRA for wholesale GTP integration to trading of EPIAS in 2017. natural gas. Date 18-Jul-2012 20-Jun-2016 02-Jan-2017 31-Mar-2017 PHINDPDOTBL  Renewable Energy Development (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The MENR approves a The RE action plan has The RE action plan has plan for the been prepared by the been prepared by the acceleration of Government, which Government, which aims renewable aims to produce 30% to produce 30% of energy Turkey's energy security of electricity from electricity from development and climate change renewable resources renewable resources by including the Value strategies include by 2023, 10% of 2023, 10% of improvement of acceleration of renewable renewables share in renewables share in TEIAŞ power energy development. transport sector and transport sector and system reducing energy reducing energy flexibility to intensity by 20% before intensity by 20% before integrate a 2020. 2020. larger share of renewable electricity. 2/9/2017 Page 6 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report EU/IPA Energy Sector Technical Assistance Project (P131921) Date 18-Jul-2012 20-Jun-2016 02-Jan-2017 31-Mar-2017 PHINDPDOTBL  Energy Efficiency Promotion (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Turkish MENR completed financial drafting of EE action institutions plan, the consultations receive and Turkey's energy security are still ongoing. The review and climate change contract for energy MENR completed financing strategies include efficiency under IPA drafting of EE action applications for Value acceleration of deployment project has been plan and the Minister will energy of energy efficiency initiated in October, make the announcement efficiency measures and 2015 and work is in January 2017. projects for technologies. ongoing under multiple small and tasks, including 140 medium-scale SME EE audits industries and competed. buildings. Date 18-Jul-2012 20-Jun-2016 02-Jan-2017 31-Mar-2017 Overall Comments Intermediate Results Indicators PHINDIRITBL  MENR (Energy Sector Alignment) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target The initial reports on The initial reports on gap Regulatory gap analysis in analysis in electricity, impact electricity, natural gas, natural gas, energy assessment of energy efficiency and efficiency and renewable alignment of renewable energy energy legislation have Turkey's legal Regulatory impact legislation have been been prepared and and institutional Value assessment not available. prepared and approved. MENR and framework for approved. MENR and EU are using these electricity, EU are using these documents as a basis natural gas, documents as a basis for EU accession energy for EU accession negotiations. Regulatory efficiency and negotiations. impact assessment work renewable 2/9/2017 Page 7 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report EU/IPA Energy Sector Technical Assistance Project (P131921) Regulatory impact has been completed and energy with the assessment work has under review of MENR EU's energy been completed and management. acquis. under review. Date 18-Jul-2012 20-Jun-2016 10-Jan-2017 31-Mar-2016 PHINDIRITBL  Consultant Engagement (Yes/No, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value N Y Y Y PHINDIRITBL  Natural Gas Market Development (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Design and The design and draft draft regulations have been The proposed Gas regulations for submitted for review. Trading Platform design, Design and regulations not a mechanism Value The Gas Trading as well as draft available. for the Platform design has regulations have been wholesale been approved by the approved by all Parties. trading of PIU. natural gas. Date 18-Jul-2012 20-Jun-2016 10-Jan-2017 31-Mar-2016 PHINDIRITBL  Consultant Engagement. (Yes/No, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value N Y Y Y 2/9/2017 Page 8 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report EU/IPA Energy Sector Technical Assistance Project (P131921) PHINDIRITBL  Renewable Energy Development (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target A review of current situation, The RE action plan has barriers and been prepared by the road map for Government. It aims to renewable produce 30% of energy, and a electricity from The contract for RE has plan renewable renewable resources been awarded and work energy grid by 2023, 10% of is ongoing under several integration to Review, road map and renewables share in tasks in different paces. distribution and Value plan not available. transport sector and First drafts of all TEIAŞ reducing energy deliverables under the transmission intensity by 20% before contract are under systems. 2020. The contract for review by the consultant. Formulation of RE has been recently at least five awarded and work is renewable ongoing under several energy projects tasks. for small and medium-sized industries and buildings. Date 18-Jul-2012 20-Jun-2016 10-Jan-2017 31-Mar-2017 PHINDIRITBL  Consultant Engagement (Yes/No, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value N Y Y Y PHINDIRITBL  Energy Efficiency Promotion (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target As of ISR date the Several awareness Consultant completed Formulation of raising activities and 140 SME EE audits at least twenty- trainings are ongoing and currently drafting five energy with regards to ESCO Insufficent capacity, the Bankable reports. efficiency market development and Value shortage of energy Additionally, several projects for EE project preparation. efficiency projects. awareness raising small and Financial mechanism for activities and trainings medium-sized EE is being drafted and are ongoing with industries and will soon be sent out for regards to ESCO buildings. comments. market development 2/9/2017 Page 9 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report EU/IPA Energy Sector Technical Assistance Project (P131921) and EE project preparation. Financial mechanism for EE is being drafted and will soon be sent out for comments. Date 18-Jul-2012 20-Jun-2016 10-Jan-2017 31-Mar-2017 PHINDIRITBL  Consultant Engagement (Yes/No, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value N Y Y Y Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P131921 TF-16532 Effective USD 11.70 11.70 0.00 5.79 5.96 49% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P131921 TF-16532 Effective 30-May-2014 30-May-2014 30-May-2014 31-Mar-2017 31-Mar-2017 Cumulative Disbursements 2/9/2017 Page 10 of 11 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report EU/IPA Energy Sector Technical Assistance Project (P131921) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 2/9/2017 Page 11 of 11 Public Disclosure Copy