The World Bank Report No: ISR11849 Implementation Status & Results Mongolia Energy Sector Project (P040907) Public Disclosure Copy Operation Name: Energy Sector Project (P040907) Project Stage: Implementation Seq.No: 18 Status: ARCHIVED Archive Date: 18-Sep-2013 Country: Mongolia Approval FY: 2001 Product Line: IBRD/IDA Region: EAST ASIA AND PACIFIC Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 03-May-2001 Original Closing Date 31-Dec-2006 Planned Mid Term Review Date 16-Apr-2012 Last Archived ISR Date 31-Mar-2013 Effectiveness Date 30-Jul-2002 Revised Closing Date 30-Sep-2013 Actual Mid Term Review Date 16-Apr-2012 Project Development Objectives Project Development Objective (from Project Appraisal Document) The objective of the project is to reduce system losses and improve revenue collection in electricity distribution companies in Mongolia. A central emphasis of the project is to improve the reliability and financial sustainability of electricity distribution companies, so that consumers are provided reliable, high-quality distribution services by commercially-operated distribution utilities. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost ULAANBAATAR DISTRIBUTION 21.83 AIMAG ENERGY 11.83 REGULATORY & FINANCIAL MGT 0.19 UBEDN and NPTC Investments 11.20 Distribution Network Planning 1.00 Public Disclosure Copy Capacity Building and Incremental Costs 0.30 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Low Low Implementation Status Overview Page 1 of 5 The World Bank Report No: ISR11849 Under the additional financing, the project appears to have satisfactorily achieved its development objectives of reducing system losses and improving revenue collection. Thanks to the project’s many capital investments (meters, transformers, distribution networks, substations), system losses have been reduced from 34.9% at the beginning of the project in 2001 to 17.9% now, reaching the targeted level of 18%. Average losses at aimag utilities were estimated at 55% in 2001 and have now declined to 14.3%. The financial situation of the Ulaanbaatar Electricity Distribution Network (UBEDN) has improved in part due to the reduction of average time of outstanding billing collections from 120 days in 2001 to 23 days Public Disclosure Copy in June 2013, significantly exceeding the target. Also, additional customer sales per annum now stand at 146 GWH, compared to the target of 64 GWH, strong evidence of Ulaanbaatar’s ever growing demand for the project’s output of electricity. The final ongoing capacity building initiatives in the proper use of system planning software, integrated information data base for electricity distribution, and smart grids will help sustain the gains made under the project. Locations Country First Administrative Division Location Planned Actual Mongolia Dzavhan Aymag Uliastay Mongolia Govi-Altay Aymag Altai Mongolia Ulaanbaatar Hot Ulaanbaatar Mongolia Hovsgol Aymag Murun-kuren Mongolia Not Entered Mongolia Mongolia Orhon Aymag Erdenet Mongolia Not Entered Egiyn Gol Mongolia Darhan-Uul Aymag Darhan Mongolia South Govi Dalandzadgad Mongolia East Aimak Choybalsan Mongolia Bayanhongor Aymag Bayanhongor Mongolia Suhbaatar Aymag Baruun-Urt Public Disclosure Copy Mongolia Central Aimak Baganuur Results Project Development Objective Indicators Page 2 of 5 The World Bank Report No: ISR11849 Indicator Name Core Unit of Measure Baseline Current End Target Percentage of Losses Percentage Value 34.90 17.94 18.00 Date 02-Sep-2002 30-Jul-2013 30-Sep-2013 Public Disclosure Copy Comments Data from UBEDN. Target exceeded. Reduce Average Losses at Aimag Utilities Percentage Value 55.00 14.32 15.00 Date 02-Sep-2002 30-Jul-2013 30-Sep-2013 Comments Target exceeded. Reduce Technical Losses at Aimag Utilities Percentage Value 45.00 14.32 15.00 Date 02-Sep-2002 30-Jul-2013 30-Sep-2013 Comments Target exceeded. Additional Customer Sales per Annum (Gwh) Number Value 0.00 146.00 64.00 Date 02-Sep-2002 30-Jul-2013 30-Sep-2013 Comments The value of 146 GWh per year is the incremental value from 2012 to 2013. Electricity losses per year in the project area Percentage Value 34.90 17.94 18.00 Date 02-Sep-2002 30-Jul-2013 30-Sep-2013 Comments Target exceeded. Total net injected generation Megawatt hour Value 1000000.00 2015104.00 1850000.00 (MWh) Sub Type Supplemental Electricity losses per year in the project area- Percentage Value 14.90 10.13 9.00 Technical Sub Type Supplemental Electricity losses per year in the project area- Percentage Value 20.00 7.81 9.00 Public Disclosure Copy Non-Technical Sub Type Supplemental Intermediate Results Indicators Page 3 of 5 The World Bank Report No: ISR11849 Indicator Name Core Unit of Measure Baseline Current End Target New Meters Connected Number Value 0.00 147717.00 124000.00 Date 02-Sep-2002 30-Jul-2013 30-Sep-2013 Public Disclosure Copy Comments From Dec 2012 to July 2013, 23,717 new customers were connected. Target exceeded. Receivables Days Value 120.00 23.00 45.00 Date 02-Sep-2002 30-Jul-2013 30-Sep-2013 Comments Data from UBEDN. Target already exceeded. Data on Financial Performance (as of 25-Apr-2013) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P040907 IDA-35030 Closed 03-May-2001 02-Aug-2001 30-Jul-2002 31-Dec-2006 30-Sep-2010 P040907 IDA-46730 Effective 25-Mar-2010 16-Apr-2010 16-Sep-2010 30-Sep-2013 30-Sep-2013 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P040907 IDA-35030 Closed XDR 23.40 23.07 0.33 23.07 0.00 100.00 P040907 IDA-46730 Effective XDR 7.60 7.60 0.00 7.06 0.54 93.00 Disbursement Graph Public Disclosure Copy Page 4 of 5 The World Bank Report No: ISR11849 Public Disclosure Copy Key Decisions Regarding Implementation All project activities should be completed by the Credit's closing date. The completion mission is tentatively scheduled for October 2013, and the final implementation completion report will be delivered by March 31, 2014. Restructuring History There has been no restructuring to date. Related Projects P116166-MN-Energy Sector Additional Financing Public Disclosure Copy Page 5 of 5