Public Disclosure Copy The World Bank Implementation Status & Results Report Energy Efficiency Facility for Industrial Enterprises (P118737) Energy Efficiency Facility for Industrial Enterprises (P118737) EUROPE AND CENTRAL ASIA | Uzbekistan | Energy & Extractives Global Practice | IBRD/IDA | Investment Project Financing | FY 2010 | Seq No: 11 | ARCHIVED on 24-Jan-2018 | ISR31202 | Implementing Agencies: The Republic of Uzbekistan, Ministry of Economy, ASAKA Bank, Hamkorbank, Uzpromstroybank Key Dates Key Project Dates Bank Approval Date:17-Jun-2010 Effectiveness Date:15-Dec-2011 Planned Mid Term Review Date:05-Jun-2015 Actual Mid-Term Review Date:05-Jun-2015 Original Closing Date:31-Jan-2016 Revised Closing Date:31-Jan-2018 Project Development Objectives Project Development Objective (from Project Appraisal Document) The project objective is to improve energy efficiency in Industrial Enterprises (IEs) by designing and establishing a financing mechanism for energy saving investments. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Component A - Development of Energy Efficiency Capacity:(Cost $2.00 M) Component B - Credit Line to Participating Banks (PBs):(Cost $123.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Satisfactory  Satisfactory Overall Implementation Progress (IP)  Moderately Satisfactory  Moderately Satisfactory Overall Risk Rating  --  Moderate Implementation Status and Key Decisions 1/24/2018 Page 1 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Energy Efficiency Facility for Industrial Enterprises (P118737) Due to the recent government reorganization the approval of two international competitive biding (ICB) tenders were delayed. As a result an extension of the Closing Date of the additional IDA credit (IDA-52410) is needed in order to complete the subprojects which are still under procurement. During the negotiations of the proposed additional IBRD loan to the Energy Efficiency Facility for Industrial Enterprises Project on December 27 and 28,2017, the Uzbek Delegation requested the World Bank to extend the Closing Date of the additional IDA credit (IDA-52410) from January 31, 2018 to January 31, 2023, in alignment with the Closing Date of the proposed additional IBRD loan. As of December 31, 2017, US$84.46 million, or 91% of the additional IDA credit was disbursed. The disbursement rate of the additional IDA credit is expected to reach about $88.5 million, or 95% by June 30, 2018, after the extension of the Closing Date. 1/24/2018 Page 2 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Energy Efficiency Facility for Industrial Enterprises (P118737) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  --  Moderate Macroeconomic  --  --  Substantial Sector Strategies and Policies  --  --  Moderate Technical Design of Project or Program  --  --  Substantial 1/24/2018 Page 3 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Energy Efficiency Facility for Industrial Enterprises (P118737) Institutional Capacity for Implementation and Sustainability  --  --  Moderate Fiduciary  --  --  Moderate Environment and Social  --  Moderate  Moderate Stakeholders  --  --  Low Other  --  --  -- Overall  --  --  Moderate Results Project Development Objective Indicators PHINDPDOTBL  Leveraged amount of EE Investments (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 30,000,000.00 89,958,000.00 69,580,000.00 83,125,000.00 Date 30-Jun-2012 30-Jun-2017 29-Sep-2017 31-Jan-2018 Comments Note that the "actual" Leveraged Amount of EE Investments entered on September 29, 2017 was based on the assessment of the interim Implementation Completion and Results Report. The earlier entry on June 30, 2017 was based on reported figure from the PCU, which was significantly overestimated. PHINDPDOTBL  Energy savings (Megawatt hour(MWh), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 27,000.00 360,343.00 358,587.50 227,000.00 Date 30-Jun-2012 30-Jun-2017 29-Sep-2017 31-Jan-2018 Comments Note that the "actual" energy savings entered on September 29, 2017 were based on the assessment of the interim Implementation Completion and Results Report. The earlier entry on June 30, 2017 was based on reported figure from the PCU, which was similar. 1/24/2018 Page 4 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Energy Efficiency Facility for Industrial Enterprises (P118737) PHINDPDOTBL  CO2 emission reduction (Metric ton, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 70,000.00 458,406.00 583,227.10 470,000.00 Date 30-Jun-2012 30-Jun-2017 29-Sep-2017 31-Jan-2018 Comments Note that the "actual" CO2 emissions reduction entered on September 29, 2017 was based on the assessment of the interim Implementation Completion and Results Report. The earlier entry on June 30, 2017 was based on reported figure from the PCU, which was significantly under-estimated. Overall Comments Beneficiary industrial enterprises contributed US$35.970 million, which was 20 percent of the investment cost as required. The participating banks contributed US$33.606 million, which was 23 percent of sub project debt financing, and exceeded their required minimum required contribution (as per financing agreement) of 20 percent of the total sub-loan. Thus, the project exceeded the amount of co-financing required as per project financing agreement. The total leveraged EE investment is US$69.580 which is 84 percent of the target. This is because US$2.9 million was not committed at the time of the interim ICR assessment; and US$9.825 million was lost due to the strengthening of the US dollar against the SDR from 1 SDR=US$1.53 in April 2013 when the AF was appraised, to 1 SDR=US$1.41 in September 2017. The equivalent co-financing amount would have been US$7.160 million which would bring up the leveraged amount of EE investments to 93 percent of the target. The project's credit line component, which allocated equal amounts of IDA credit to the three PBs (US$41 million equivalent total for each PB under two IDA credits), has so far resulted in $188 million investments for industrial EE through 74 subprojects among 31 industrial enterprises. The project generated an equivalent of 358 GWh of annual energy savings, and 583,000 metric tons of avoided annual CO2 emissions. These results exceeded their respective target values. The main types of subprojects financed by the credit line included modernization of electrical equipment and controls (e.g., motors, capacitors, and frequency convertors), thermal equipment (e.g., boilers and furnaces), and other industrial equipment (e.g., compressors and cooling towers), as well as waste-to-electricity generation (e.g., utilization of waste heat and previously flared natural gas). The sub-loan sizes ranged from less than US$ 0.5 million to over US$5 million and averaged less than US$2 million. There were no defaults or late payments reported so far. The capacity building component, with US$1 million allocated under each IDA credit, informed the government’s industrial EE policy and program design, developed IEs’ capacity to identify, prepare and implement EE projects, and supported project coordination and implementation. The government opted to use its own budgetary resources, instead of IDA funds, for several institutional capacity strengthening activities under the component. For example, the planned activity for improving the system of statistical reporting of industrial energy consumption and efficiency was cancelled because the government eventually completed and had firm plan to complete most of the tasks using its own resources. Overall, the project made a significant impact on improving EE in IEs in Uzbekistan by providing and increase access to dedicated commercial bank EE financing, raising the capacity of large industrial energy users to undertake EE projects, and establishing and demonstrating a viable business model for local banks to lend for a variety of industrial EE projects based on project specific and corporate level criteria and following good safeguards practices. The three PBs, which represented 29 percent of Uzbekistan’s total banking assets in 2014, pioneered EE lending to IEs. Each bank has established dedicated implementation unit for preparing and closing EE investment sub-loans and developing and maintaining EE business knowledge. Due to the success of the project the government formally recognized EE credit line as a key mechanism for scaling up industrial EE investments and included it in the Action Program for Further Development of Renewable Energy, Improvement of Energy Efficiency in Sectors of Economy and Social Sector during 2017-2021 (Presidential Resolution No. PP-3012). Intermediate Results Indicators 1/24/2018 Page 5 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Energy Efficiency Facility for Industrial Enterprises (P118737) PHINDIRITBL  EE Strategy for IEs (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value Not developed Completed Completed Completed Date 17-Jun-2010 01-Mar-2015 01-Mar-2015 31-Dec-2013 PHINDIRITBL  Establishment and Operation of PCU (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value Not established Established Established Established Date 17-Jun-2010 01-Mar-2015 01-Mar-2015 15-Dec-2011 PHINDIRITBL  EE Communication Strategy (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value Not developed Completed Completed Completed Date 17-Jun-2010 01-Mar-2015 01-Mar-2015 31-Dec-2015 PHINDIRITBL  Direct project beneficiaries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 12.00 31.00 31.00 37.00 Date 30-Jun-2012 30-Jun-2017 29-Sep-2017 31-Jan-2018 Overall Comments 1/24/2018 Page 6 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Energy Efficiency Facility for Industrial Enterprises (P118737) Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P118737 IDA-47450 Closed USD 25.00 24.20 0.80 24.23 0.00 100% P118737 IDA-52410 Effective USD 100.00 100.00 0.00 84.46 8.57 91% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P118737 IDA-47450 Closed 17-Jun-2010 18-Aug-2011 15-Dec-2011 31-Jan-2016 31-Jan-2016 P118737 IDA-52410 Effective 26-Apr-2013 18-Jul-2013 06-Dec-2013 31-Jan-2018 31-Jan-2018 Cumulative Disbursements Restructuring History There has been no restructuring to date. 1/24/2018 Page 7 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Energy Efficiency Facility for Industrial Enterprises (P118737) Related Project(s) P133633-Additional Financing Energy Efficiency - Industrial Enterprises ,P165054-Energy Efficiency Facility for Industrial Enterprises, Phase 3 1/24/2018 Page 8 of 8 Public Disclosure Copy