The World Bank
Energy Efficiency Project (P108023)
REPORT NO.: RES30988
DOCUMENT OF THE WORLD BANK
RESTRUCTURING PAPER
ON A
PROPOSED PROJECT RESTRUCTURING
OF
ENERGY EFFICIENCY PROJECT
APPROVED ON MAY 28, 2009
TO
THE REPUBLIC OF BELARUS
ENERGY & EXTRACTIVES
EUROPE AND CENTRAL ASIA
Regional Vice President: Cyril E Muller
Country Director: Satu Kristiina J. Kahkonen
Senior Global Practice Director: Riccardo Puliti
Practice Manager/Manager: Sameer Shukla
Task Team Leader: Feng Liu
The World Bank
Energy Efficiency Project (P108023)
I. BASIC DATA
Product Information
Project ID Financing Instrument
P108023 Investment Project Financing
Original EA Category Current EA Category
Partial Assessment (B) Partial Assessment (B)
Approval Date Current Closing Date
28-May-2009 31-Dec-2017
Organizations
Borrower Responsible Agency
Energy Efficiency Department, State Standardization
The Republic of Belarus
Committee,RUE 'Belinvestenergosberezhenie'/ PIU
Project Development Objective (PDO)
Original PDO
The development objective is to improve energy efficiency in heat and power generation in selected towns in Belarus.
Summary Status of Financing
Net
Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed
IBRD-82810 06-Jun-2013 24-Jun-2013 23-Oct-2013 31-Dec-2017 90.00 89.75 .25
IBRD-76980 28-May-2009 08-Jun-2009 30-Sep-2009 31-Dec-2017 125.00 118.55 6.45
Policy Waiver(s)
Does this restructuring trigger the need for any policy waiver(s)?
No
II. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES
The World Bank
Energy Efficiency Project (P108023)
The project is reaching successful completion and will be closed on December 31, 2017. The project implementation
has been consistently rated satisfactory. The PDO is expected to be achieved satisfactorily at project closing. All
combined heat and power (CHP) plants financed by the original loan (US$125 million) are in commercial operation.
The two CHP plants, Mogilev CHP-1 and Gomel CHP-1, financed under the additional loan (US$90 million) were also
completed and commissioned as of July 2017. As of November 30, 2017, US$118.55 million or about 95 percent of the
original loan, and US$89.75 million or close to 100 percent of the additional loan were disbursed. It is expected that by
December 31, 2017 the disbursement of the original loan will be unchanged, and the additional loan will be fully
disbursed. The total disbursement of the project by the closing date is expected to reach about US$209 million.
There were significant cost savings under the implementation of the original loan due to fluctuations in the exchange
rates between the Swedish Krona, Euro and the U.S. dollar and a strong competition during the bidding process. The
Bank approved the allocation of US$5.9 million savings from the original loan for RUE ‘Minskenergo’ to implement the
reconstruction of 110 kV Open Switchgear at Zhodino CHP. The bids evaluation was concluded in August 2016. The
lowest bid was disqualified due to a conflict of interest. The clarifications and final decision took several months. The
borrower agreed to the negotiations with the second lowest bid, but concluded in April 2017 without reaching an
agreement. Given that the project's closing date was extended twice and would not be further extended, there was no
time left to proceed with the third lowest evaluated bidder and award and implement the contract. The Bank gave no-
objection to the PMU’s proposal to cancel the ICB bidding procedure. The Bank received the Government’s letter for
cancellation of the US$5.9 million on December 4, 2017.
III. DETAILED CHANGES