The World Bank Implementation Status & Results Report Energy Supply Reliability and Financial Recovery (P169117) Energy Supply Reliability and Financial Recovery (P169117) EUROPE AND CENTRAL ASIA | Georgia | Energy & Extractives Global Practice | IBRD/IDA | Investment Project Financing | FY 2019 | Seq No: 1 | ARCHIVED on 16-Sep-2019 | ISR38398 | Implementing Agencies: Ministry of Finance, Ministry of Economy and Sustainable Development, Georgian State Electrosystem Key Dates Key Project Dates Bank Approval Date: 23-May-2019 Effectiveness Date: Planned Mid Term Review Date: 31-Jan-2022 Actual Mid-Term Review Date: Original Closing Date: 31-Dec-2024 Revised Closing Date: 31-Dec-2024 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The objectives of the Project are to increase electricity supply reliability in the western part of Georgia, achieve the financial viability of GSE, and help it access long-term commercial financing. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Strengthening of the power transmission network:(Cost $66.00 M) Support to financial recovery of GSE and preparatory work to access the capital markets:(Cost $6.50 M) IBRD Guarantee to help GSE raise long-term commercial financing:(Cost $50.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO -- Satisfactory Overall Implementation Progress (IP) -- Satisfactory Overall Risk Rating -- Substantial Implementation Status and Key Decisions The project is expected to become effective by mid-October 2019. The procurement of the main works contract under the project - construction of 500 kV Jvari-Tskaltubo power transmission line and 500 kV Tskaltubo substation - is underway. The implementation of other activities is progressing as scheduled. There are no major issues under the project. 9/16/2019 Page 1 of 6 The World Bank Implementation Status & Results Report Energy Supply Reliability and Financial Recovery (P169117) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Moderate -- Moderate Macroeconomic Moderate -- Moderate Sector Strategies and Policies Moderate -- Moderate Technical Design of Project or Program Moderate -- Moderate Institutional Capacity for Implementation and Sustainability Substantial -- Substantial Fiduciary Moderate -- Moderate Environment and Social High -- High Stakeholders Substantial -- Substantial Other -- -- -- Overall Substantial -- Substantial Results PDO Indicators by Objectives / Outcomes Electricity supply reliability in the western part of Georgia IN00739147 ►Number of end-user outages caused by failures of 500 kV OHLs in the western part of Georgia (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 4.00 -- 3.00 0.00 Date 31-Dec-2018 -- 30-Aug-2019 31-Dec-2024 This indicator will measure improvements in reliability of electricity supply in the western part of Georgia. This indicator would track outages caused only by failures on 500 kV Imereti, Zekari, Jvari-Tskaltubo, and Comments: Tskaltubo-Akhaltiskhe OHLs. IN00739150 ►Average annual duration of end-user outages caused by failures of 500 kV OHLs in the western part of Georgia (Minutes, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 161.00 -- 120.00 0.00 Date 31-Dec-2018 -- 30-Aug-2019 31-Dec-2024 This indicator will measure improvement of electricity supply reliability in the western part of Georgia. Comments: 9/16/2019 Page 2 of 6 The World Bank Implementation Status & Results Report Energy Supply Reliability and Financial Recovery (P169117) Financial viability IN00739148 ►End of GSE rehabilitation regime (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No -- No Yes Date 31-Dec-2018 -- 30-Aug-2019 30-Mar-2020 This indicator will measure the progress with financial recovery of GSE. Comments: IN00739191 ►Reduction of cash deficit of GSE (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 3,064,460.00 -- 2,800,000.00 0.00 Date 31-Dec-2017 -- 30-Aug-2019 30-Jun-2021 This indicator will measure the adequacy of operating cash revenues of GSE (as a Group) to fully finance Comments: the required recurrent operating and maintenance costs, debt service, and taxes. IN00739192 ►Improved decision-making on new investments in power transmission network as a result of institutional strengthening (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target New investments in New investments in New investments in power transmission power transmission power transmission network are not always network are always network are not always Value -- consistent with the consistent with the consistent with the principles of least principles of least principles of least economic cost economic cost economic cost planning. planning. planning. Date 31-Dec-2018 -- 30-Aug-2019 31-Dec-2024 This indicator will measure the progress with strengthening of institutional capacity of GSE. Comments: Access to long-term commercial financing IN00739149 ►Long-term commercial financing mobilized (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 100,000,000.00 Date 31-Dec-2018 -- 30-Aug-2019 30-Jun-2021 Comments: This indicator will measure progress with securing long-term commercial financing. Intermediate Results Indicators by Components 9/16/2019 Page 3 of 6 The World Bank Implementation Status & Results Report Energy Supply Reliability and Financial Recovery (P169117) Strengthening of the power transmission network IN00739193 ►Jvari-Tskaltubo 500 kV OHL constructed (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 77.00 Date 31-Dec-2018 -- 30-Aug-2019 29-Dec-2023 Comments: This indicator will measure the progress with construction of the target transmission line. IN00739196 ►500/220 kV Tskaltubo substation constructed (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No -- No Yes Date 31-Dec-2018 -- 30-Aug-2019 31-Dec-2022 Comments: This indicator will track progress with completion of 500/220 kV Tskaltubo substation Financial recovery of GSE and preparatory work to access capital markets IN00739194 ►Adequately staffed Environmental and Social Unit is established and maintained at GSE (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No -- No Yes Date 31-Dec-2018 -- 30-Aug-2019 31-Dec-2019 This indicator will measure the progress with strengthening of in-house capacity of GSE in adequately Comments: managing the environmental and social aspects of investment projects. IN00739197 ►Mechanism is introduced to reduce or eliminate exposure of GSE to FX risks (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No -- No Yes Date 31-Dec-2018 -- 30-Aug-2019 31-Dec-2021 This indicator will measure the progress with introduction and implementation of mechanism to eliminate Comments: or reduce GSE exposure to FX risks. IN00739198 ►GSE is issued a credit rating by an international reputable rating agency (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No -- No Yes Date 31-Dec-2018 -- 30-Aug-2019 31-Mar-2021 This indicator will measure the progress with preparedness of GSE to access commercial financing. Comments: IN00739199 9/16/2019 Page 4 of 6 The World Bank Implementation Status & Results Report Energy Supply Reliability and Financial Recovery (P169117) ►Percentage of grievances recorded by the Project and resolved within a two-week period (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 100.00 100.00 Date 31-Dec-2018 -- 30-Aug-2019 31-Dec-2023 Comments: This indicator will monitor efficiency of GRM under the Project. IN00739200 ►Percentage of citizens who believe that the project has established effective engagement processes (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 75.00 Date 31-Dec-2018 -- 30-Aug-2019 31-Dec-2023 This indicator will help to monitor progress of citizen engagement activities. Comments: IN00739201 ►Increase in demand for gender-based violence support services in project regions (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 10.00 Date 31-Dec-2018 -- 30-Aug-2019 31-Dec-2023 Comments: This indicator will monitor the progress on gender related activities. Support in accessing long-term commercial financing IN00739195 ►Closure of the transaction to raise commercial financing (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No -- No Yes Date 31-Dec-2018 -- 30-Aug-2019 30-Sep-2022 Comments: This indicator will measure the progress with raising long-term commercial financing for GSE. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed Not P169117 IBRD-89520 USD 70.70 70.70 0.00 0.00 70.70 0% Effective 9/16/2019 Page 5 of 6 The World Bank Implementation Status & Results Report Energy Supply Reliability and Financial Recovery (P169117) Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date Not P169117 IBRD-89520 23-May-2019 -- -- 31-Dec-2024 31-Dec-2024 Effective Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) P170552-Energy Supply Reliability and Financial Recovery Guarantee 9/16/2019 Page 6 of 6