The World Bank Report No: ISR2664 Implementation Status & Results Kosovo Public Disclosure Copy Lignite Power Technical Assistance Project (P097635) Operation Name: Lignite Power Technical Assistance Project (P097635) Project Stage: Implementation Seq.No: 6 Status: ARCHIVED Last Modified Date: 29-Mar-2011 Country: Kosovo Approval FY: 2007 Product Line: IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Technical Assistance Loan Implementing Agency(ies): Project Office Key Dates Board Approval Date 12-Oct-2006 Original Closing Date 31-Dec-2009 Planned Mid Term Review Date 30-Jun-2008 Last Archived ISR Date 24-Mar-2010 Effectiveness Date 06-Mar-2007 Revised Closing Date 31-Dec-2011 Actual Mid Term Review Date 26-Jun-2009 Project Development Objectives Project Development Objective (from Project Appraisal Document) The objectives are to: (a) help the Government strengthen the enabling policy, legal and regulatory frameworks conducive to new investments in the energy sector; and (b) assist the Government to attract qualified private investors to develop lignite mines and build new capacity for lignite thermal power generation, guided by high standards of environmental and social sustainability. Has the Project Development Objective been changed since Board Approval of the Project? � Yes No Component(s) Component Name Component Cost Sector Policy, Legal, Regulatory and Safeguards Advice 5.24 Mine and Power Plant Analyses 0.30 Capacity Building 1.56 Public Disclosure Copy Transaction Advisor 3.40 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Moderately Unsatisfactory Overall Risk Rating Implementation Status Overview LPTAP is helping the government prepare for a private sector mining and power generation project called Kosova e Re Project. This transaction reached a significant milestone with the issuance of the Draft Request for Proposals (RFP) to prequalified bidders in August 2010. With the recent resignation of the government and new general elections, the outgoing Page 1 of 7 The World Bank Report No: ISR2664 government has deferred action on the transaction to the new government. When the new government is formed and the Project Steering Committee (PSC) is re-formed and operating, the transaction should resume. Public Disclosure Copy Results Project Development Objective Indicators Indicator Baseline Current End Target Indicator Name Value Value Value Various policy, legal and regulatory instruments, consistent with Previous analyses (under ESTAP Final SESA report delivered in New legislation/regulatory international good practice, adopted and used by the authorities in III) revealed numerous gaps in the December 2008. The Law on instruments; new SESA regulations negotiations with new investor(s). existing legal and regulatory Environmental Strategic and Resettlement Policy framework. Assessment was adopted by the Framework; SESA; Environmental Type Unit of Measure Date Assembly and promulgated by the baseline database; used by Custom Indicator Text President on March 19, 2009. Transaction Advisor in negotiations 31-Mar-2005 Law on Public Private with investors Comment Partnerships and Concessions Date adopted by the Assembly and promulgated by the President on 31-Dec-2011 July 15, 2009. Comment Date 21-Jan-2011 Comment Largely completed; however, some further legislative changes are likely based on requirements of the successful bidder. Funding ofconsultants is dependent on LPTAP Additional Financing 2. Indicator Baseline Current End Target Indicator Name Value Value Value Public Disclosure Copy Selection of project sponsor and negotiation leading to financial closing 3 initial steps to attract new Advisors have prepared and Selection of project sponsor and on mine and power plant investment(s) investment underway: (i) government has issued the Draft negotiation leading to final close of emergency development of Sibovc Request for Proposals (RFP) to mine and power plant investments. SW mine using donor funds; (ii) prequalified bidders for the Kosova Date Type Unit of Measure EAR funded Investment Options e Re Project. Next steps awaiting Review; (iii) issuance of REI for the new government. 31-Dec-2011 Custom Indicator Text investors Date Comment Date 21-Jan-2011 A second extension of the closing 31-Jul-2006 date of the LPTAP is likely. Comment Comment Amendment/extension of advisors' contracts is ongoing. Page 2 of 7 The World Bank Report No: ISR2664 Intermediate Results Indicators Public Disclosure Copy Indicator Baseline Current End Target Indicator Name Value Value Value Component 1, subcomponent 1: Preparation and presentation to the These instruments do not exist at The Legal Advisor has completed Completion of additional legal/ Assembly of various policy, legal and regulatory instruments, present. work on the Revised Draft SESA regulatory work in regard to a new consistent with good international practice Secondary Legislation, the structure for the electricity sector of Date Revised Draft Land Acquisition Kosovo, compliant with Kosovo's Type Unit of Measure 29-Sep-2006 Legislation, the Revised Draft obligations under the Energy Custom Indicator Text Comment Resettlement Policy Framework, Community Treaty. and the Revised Report on Date Proposed Regulatory Instruments. Additional legal/regulatory 31-Dec-2011 framework work is pending but Comment awaiting further policy decisions by government and PSC. Date 21-Jan-2011 Comment Amendment/extension of the Legal Advisor's contract is ongoing. Indicator Baseline Current End Target Indicator Name Value Value Value Safeguards Advice -SESA, Sector Specific EIA Handbook, TOR for None of these exist at present. Final SESA Report submitted in Preparation of SESA, Preparation Environmental Impact Assessment, Social Assessment and December 2008. A Resettlement of the specified TORs, Preparation Date Resettlement Action Plan for new investments Policy Framework (RPF) is under of the EIA Handbook, MESP staff 29-Sep-2006 consultation with the public. A trained in env. and inv. Type Unit of Measure Comment Resettlement Action Plan (RAP) resettlement procedures Custom Indicator Text for Hade Villlage is under Date preparation. 31-Dec-2011 Public Disclosure Copy Date Comment 21-Jan-2011 Comment Additional sub-components for ESIA, Environmental and Social Panel of Experts, greenhouse gas activities, and capacity building areawaiting LPTAP Additional Financing 2. Page 3 of 7 The World Bank Report No: ISR2664 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Safeguards Advice - Baseline environmental monitoring and data No such baseline data currently Procurement of air monitoring Completion of environmental collection and development of an environmental monitoring and data exists. services put on hold awaiting baseline database Completion of registration and reporting system LPTAP Additional Financing 2. environmental monitoring and data Date Date registration and reporting system. Type Unit of Measure 29-Sep-2006 21-Jan-2011 Date Custom Indicator Text Comment Comment 31-Dec-2011 Soil and water monitoring is also Comment included in LPTAP Additional Financing 2. Indicator Baseline Current End Target Indicator Name Value Value Value Component 2: Mine and Power Plant Analyses - Studies and ongoing Only limited work has been done to The HPP Zhur Pre-Feasibility Studies and ongoing support for support for renewable energy, cogeneration and energy efficiency date in regard to these areas. Study, including the preparation of renewable energy, cogeneration Date pre-EIA and pre-SIA, is completed. and energy efficiency Work on other sub-components Date Type Unit of Measure 30-Sep-2006 isawaiting funding under LPTAP Comment Additional Financing 2. 31-Dec-2011 Custom Indicator Text Date Comment 21-Jan-2011 Comment LPTAP Additional Financing 2 will include funding for energy efficiency and wind feasibility studies. Funding for CCS has been approved separately, from a trust fund. Public Disclosure Copy Page 4 of 7 The World Bank Report No: ISR2664 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Component 3: Capacity Building and Communiciations - Establishment Project Office and Project Steering The Project Steering Committee Ongoing effective operation of both of LPTAP Project Office and Project Steering Committee, trainingMEM, Committee are being established. and the Project Office are fully the Project Office and the Project ERO & ICMM in major project devt. & MEM in communications operational, and the Project Office Steering Committee; staff trained in Date has now gained considerable major project development & Type Unit of Measure 30-Sep-2006 experience with the proposed visible improvement in Custom Indicator Text Comment LPTAP transactions. A communications by MEM communication firm has completed Date its contract and will be replaced with another broader 31-Dec-2011 communications arrangement, Comment pending LPTAP Additional Financing 2. In addition, the Legal Advisor has been actively engaged in building capacity in public sector counterparts such as the relevant Ministries and sector agencies, such as the MEM, ERO and ICMM. Date 21-Jan-2011 Comment LPTAP Additional Financing 2 will include a new sub-component (see Component 1) for capacity building in environmental and social governance. Depending on the composition of the new government, there may be some additional training required. Public Disclosure Copy Page 5 of 7 The World Bank Report No: ISR2664 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Component 4: Transaction Advice - Assistance to the Project Office in No transaction support The Draft RFP for the short-listed Testing of investor interest levels preparing for a bidding process and in negotiations with strategic mechanisms are in place. bidders has been issued. and concerns; preparation of draft investors. agreements and legal opinions for Date Date the mine and power plant Type Unit of Measure 30-Sep-2006 21-Jan-2011 transactions;advice on bidding and Custom Indicator Text Comment Comment on the conduct of negotiations; Amendment/extension of the Date Transaction Advisor's contract is 31-Dec-2011 ongoing. Comment Data on Financial Performance (as of 04-Feb-2011) Financial Agreement(s) Key Dates Project Loan No. Status Approval Date Signing Date Effectiveness Date Closing Date P097635 IDA-H2540 Effective 12-Oct-2006 13-Dec-2006 06-Mar-2007 31-Dec-2011 P097635 IDA-H3180 Effective 28-Jun-2007 20-Jul-2007 30-Aug-2007 31-Dec-2011 Disbursements (in Millions) Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P097635 IDA-H2540 Effective XDR 5.80 5.80 0.00 4.93 0.87 85.00 P097635 IDA-H3180 Effective XDR 1.40 1.40 0.00 0.57 0.83 41.00 Disbursement Graph Public Disclosure Copy Page 6 of 7 The World Bank Report No: ISR2664 Public Disclosure Copy Key Decisions Regarding Implementation The new PSC will need to take decisions relating to the finalization of the RFP, including incorporation of comments received from prequalified bidders. Restructuring History Board Approved on 01-Nov-2009 Related Projects P106580-LPTAP Additional Financing 1, P122131-LPTAP Additional Financing 2 Public Disclosure Copy Page 7 of 7