The World Bank Report No: ISR6707 Implementation Status & Results India Chiller Energy Efficiency (P100584) Public Disclosure Copy Operation Name: Chiller Energy Efficiency (P100584) Project Stage: Implementation Seq.No: 6 Status: ARCHIVED Archive Date: 25-Dec-2011 Country: India Approval FY: 2009 Product Line: Global Environment Project Region: SOUTH ASIA Lending Instrument: Specific Investment Loan Implementing Agency(ies): IDBI Bank Ltd, Ministry of Environment and Forests, Government of India Key Dates Board Approval Date 30-Jun-2009 Original Closing Date 30-Jun-2014 Planned Mid Term Review Date 09-Jul-2012 Last Archived ISR Date 25-Dec-2011 Effectiveness Date 23-Nov-2009 Revised Closing Date 30-Jun-2014 Actual Mid Term Review Date Project Development Objectives Global Environmental Objective (from Project Appraisal Document) The overall global environment objectives of the CEEP are to reduce greenhouse gas emissions whilst simultaneously supporting the completion of the phase-out of consumption of Ozone Depleting Substances required under the Montreal Protocol. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Provision of Incentives to Accelerate Replacement of Energy Efficient Chillers 79668370.00 Measurement, Monitoring and Verification 1572000.00 Technical Assistance 533453.00 Project management 1479781.00 Overall Ratings Public Disclosure Copy Previous Rating Current Rating Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Satisfactory Overall Risk Rating Moderate Moderate Implementation Status Overview Project implementation has been critically impacted due to a number of externalities: These included (i) accelerated CFC production phaseout by India by 17 months (from December 2010 to August 2008) which had a significant impact on the number of eligible CFC-based chillers available for conversion; (ii) Delay in approval by GEF which reduced the number of years under the existing Clean Development Mechanism (CDM) regime; (iii) complexities and stringent conditions imposed by CDM and reluctance of beneficiaries to access CDM in an uncertain global scenario and (iv) availability of lower cost options such as retrofitting which were considered ineligible under CDM. The poor performance of the CDM component resulted in IDBI and KfW mutually agreeing to terminate the Emissions Reduction Purchase Agreement (ERPA) in November 2011. Page 1 of 4 The World Bank Report No: ISR6707 Of the estimated 1,000 CFC based chillers as identified during the chillers survey undertaken in 2001, majority had retrofitted or replaced the chillers, and by October 2011, only 54 chillers had been registered under the program, of which 35 have signed the financial agreements. Of these 21 CFC based chillers have been replaced to date , amounting to about 10mt of CFCs captured. This achievement supports Government of India's efforts in phaseout of ODS consumption in the country. The termination of the component under the CDM necessitates that the project design be revisited, since it was an integral part of the project design, implementation modalities and Public Disclosure Copy financing structure. The task team has undertaken discussions with the Ministry of Environment and Forests (MOEF), Bureau of Energy Efficiency (BEE), IDBI Bank and chiller manufacturers. A mid-term technical mission is to be hosted in July 2012 after which an updated ISR will be submitted. Locations Country First Administrative Division Location Planned Actual India Bengal State of West Bengal India Uttar Pradesh State of Uttar Pradesh India State of Tamil Nadu State of Tamil Nadu India State of Maharashtra State of Maharashtra India State of Gujarat State of Gujarat Results Global Environmental Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Emission reductions as direct and indirect Metric ton Value 0.00 0.00 4.49 benefits from the project. Date 31-Oct-2008 21-May-2010 30-Jun-2014 Comments Since the chillers have recently been replaced, the monitoring of energy savings has not yet been completed MWh savings & MW demand reduction Megawatt Value 0.00 48.00 Date 21-May-2010 30-Jun-2014 Public Disclosure Copy Comments This activity is ongoing, but the data will be compiled after one year. Intermediate Results Indicators Page 2 of 4 The World Bank Report No: ISR6707 Indicator Name Core Unit of Measure Baseline Current End Target Number of CFC-based centrifugal chillers Number Value 0.00 22.00 350.00 replaced by the CEEP Date 20-Sep-2002 09-Nov-2010 30-Jun-2014 Public Disclosure Copy Comments The 2011 survey had Of the 35 chillers which had This target will be relooked at identified about 1500 CFC signed financial agreements during next phase based chillers with IDBI in Nov 2010, it is confirmed that 21 chillers have been replaced Indirect Carbon emission reductions achieved Text Value 8.868 by chillers replaced Date 21-May-2010 30-Jun-2014 Comments This activity has been terminated Data on Financial Performance (as of 25-Jan-2012) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P100584 TF-94877 Effective 26-Aug-2009 26-Aug-2009 23-Nov-2009 30-Jun-2014 30-Jun-2014 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P100584 TF-94877 Effective USD 6.30 6.30 0.00 0.99 5.31 16.00 Disbursement Graph Public Disclosure Copy Page 3 of 4 The World Bank Report No: ISR6707 Public Disclosure Copy Key Decisions Regarding Implementation Discussions with MOEF have taken place on the proposed modification to recast the project into an energy efficiency project. A mid-term technical mission is to be hosted in July 2012 to discuss the revised design and an updated ISR will be submitted after formal agreements have been reached with key stakeholders. Restructuring History There has been no restructuring to date. Related Projects P100533-INDIA Chiller Energy Effiency Carbon Finance Operation, P102790-India - Chiller Energy Efficiency Project - MP Component Public Disclosure Copy Page 4 of 4