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: 6 | ARCHIVED on 12-Jul-2017 | ISR28832 | Implementing Agencies: Ministry of Energy and Natural Resources, Republic of Turkey 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:28-Sep-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 Name Previous Rating Current Rating 7/12/2017 Page 1 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report EU/IPA Energy Sector Technical Assistance Project (P131921) Progress towards achievement of PDO  Moderately Satisfactory  Moderately Satisfactory Overall Implementation Progress (IP)  Moderately Satisfactory  Moderately Unsatisfactory Overall Risk Rating  Substantial  Substantial Implementation Status and Key Decisions Despite some progress since the last mission in September 2016, overall implementation remains well behind schedule. In February, a six-month extension was approved establishing September 28, 2017 as the new Closing Date. However, the Project implementation completion (in terms of % of completed activities) is only 68% and disbursements are slightly below 50% with no disbursements over a 7-month period. Close supervision will be critical over the coming months to ensure all of the activities can be completed in a quality manner by the end of September. The Bank has approved to allocate about half of the unallocated amount (about €0.252 million) of the EU-IPA funds to CS4 (Energy Efficiency) to support additional energy audits. The balance (about €0.250 million) would then be cancelled. 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  --  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 Turkey's energy sector can There has been sizable There has been The MENR Value be enhanced in line with progress under all measureable progress approves a 7/12/2017 Page 2 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report EU/IPA Energy Sector Technical Assistance Project (P131921) the EU energy priorities contracts with the under all contracts, with program for the and strategies. related contract one contract completed enhancement implementation (CS- (CS-03) and all reports of the Turkish 01) and all reports have been submitted for energy sector have been submitted comments before being in line with the for comments. finalized. EU energy priorities and strategies, based on a review and regulatory impact 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 06-Jul-2017 28-Sep-2017 PHINDPDOTBL  Natural Gas Market Development (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target BOTAŞ and EMRA approve a draft design Gas Trading Platform Gas Trading Platform and has been drafted, has been drafted, widely regulations, Design and regulations not widely discussed and Value discussed and delivery respectively, for available. delivery approved by approved by the MENR, a mechanism the MENR, EMRA and EMRA and EPIAS. for the EPIAS. wholesale trading of natural gas. Date 18-Jul-2012 20-Jun-2016 06-Jul-2017 28-Sep-2017 PHINDPDOTBL  Renewable Energy Development (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Turkey's energy security The RE action plan has The RE action plan has The MENR and climate change been prepared by the been approved and approves a Value strategies include Government, which adopted by the plan for the acceleration of renewable aims to produce 30% Government, which aims acceleration of 7/12/2017 Page 3 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report EU/IPA Energy Sector Technical Assistance Project (P131921) energy development. of electricity from to produce 30% of renewable renewable resources electricity from energy by 2023, 10% of renewable resources by development renewables share in 2023, including 10% of including the transport sector and renewables share in improvement of reducing energy transport sector. TEIAŞ power intensity by 20% before system 2020. flexibility to integrate a larger share of renewable electricity. Date 18-Jul-2012 20-Jun-2016 06-Jul-2017 28-Sep-2017 PHINDPDOTBL  Energy Efficiency Promotion (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target MENR is now finalizing Turkish MENR completed its national EE action financial drafting of EE action plan and plans to submit institutions plan, the consultations it for approval in the receive and Turkey's energy security are still ongoing. The coming weeks. The review and climate change contract for energy contract for energy financing strategies include efficiency under IPA efficiency under IPA applications for Value acceleration of deployment project has been project has been energy of energy efficiency initiated in October, initiated in October, efficiency measures and 2015 and work is 2015 and work is projects for technologies. ongoing under multiple ongoing under multiple small and tasks, including 140 tasks, including about medium-scale SME EE audits 200 SME EE audits industries and competed. completed. buildings. Date 18-Jul-2012 20-Jun-2016 06-Jul-2017 28-Sep-2017 Overall Comments Intermediate Results Indicators 7/12/2017 Page 4 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report EU/IPA Energy Sector Technical Assistance Project (P131921) 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 legislation have been been prepared and and institutional prepared and approved. MENR and framework for Regulatory impact approved. MENR and EU are using these Value electricity, assessment not available. 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 Regulatory impact has been completed and energy with the assessment work has roadmaps are now EU's energy been completed and under advanced acquis. under review. preparation. Date 18-Jul-2012 20-Jun-2016 06-Jul-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 Design and draft regulations for submitted for review. regulations for a Design and regulations not a mechanism Value The Gas Trading mechanism for the available. for the Platform design has wholesale trading of wholesale been approved by the natural gas. trading of PIU. natural gas. Date 18-Jul-2012 20-Jun-2016 06-Jul-2017 31-Mar-2016 7/12/2017 Page 5 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report EU/IPA Energy Sector Technical Assistance Project (P131921) PHINDIRITBL  Consultant Engagement. (Yes/No, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value N Y Y Y PHINDIRITBL  Renewable Energy Development (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target A review of current situation, The RE action plan has The RE action plan has barriers and been adopted by the been prepared by the road map for Government. It aims to Government. It aims to renewable produce 30% of produce 30% of energy, and a electricity from electricity from plan renewable renewable resources by renewable resources energy grid 2023 and 10% of by 2023, 10% of integration to renewables share in Review, road map and renewables share in distribution and Value transport sector. The plan not available. transport sector and TEIAŞ contract for RE has reducing energy transmission been recently awarded intensity by 20% before systems. and work is ongoing 2020. The contract for Formulation of under several tasks, RE has been recently at least five including the completion awarded and work is renewable of about 65 prefeasibility ongoing under several energy projects studies for small-scale tasks. for small and RE. medium-sized industries and buildings. Date 18-Jul-2012 20-Jun-2016 06-Jul-2017 28-Sep-2017 PHINDIRITBL  Consultant Engagement (Yes/No, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value N Y Y Y 7/12/2017 Page 6 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report EU/IPA Energy Sector Technical Assistance Project (P131921) PHINDIRITBL  Energy Efficiency Promotion (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target As of ISR date the As of ISR date the Consultant completed Consultant completed 140 SME EE audits about 200 SME EE and currently drafting audits and currently the Bankable reports. drafting the bankability Formulation of Additionally, several reports. Additionally, at least twenty- awareness raising several awareness five energy Insufficent capacity, activities and trainings raising activities and efficiency Value shortage of energy are ongoing with trainings are ongoing projects for efficiency projects. regards to ESCO with regards to ESCO small and market development market development and medium-sized and EE project EE project preparation. industries and preparation. Financial A report on EE banking buildings. mechanism for EE is products was finalized being drafted and will and approved. An EE soon be sent out for policy review is being comments. finalized. Date 18-Jul-2012 20-Jun-2016 06-Jul-2017 28-Sep-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 5.80 49% Key Dates (by loan) 7/12/2017 Page 7 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report EU/IPA Energy Sector Technical Assistance Project (P131921) 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 28-Sep-2017 Cumulative Disbursements Restructuring History Level 2 Approved on 17-Feb-2017 Related Project(s) There are no related projects. 7/12/2017 Page 8 of 8 Public Disclosure Copy