The World Bank Report No: ISR5601

Implementation Status & Results Energy 2 Project (P040558)

Operation Name: Energy 2 Project (P040558) Project Stage: Implementation Seq.No: 15 Status: ARCHIVED Archive Date: 27-Jun-2011 Country: Moldova Approval FY: 2004

Public Disclosure Authorized Product Line:IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Moldova Energy Projects Implementation Unit (MEPIU) Key Dates Board Approval Date 25-Nov-2003 Original Closing Date 30-Apr-2008 Planned Mid Term Review Date 31-Mar-2006 Last Archived ISR Date 27-Jun-2011 Public Disclosure Copy Effectiveness Date 02-Mar-2004 Revised Closing Date 31-Dec-2011 Actual Mid Term Review Date 21-Apr-2006

Project Development Objectives Project Development Objective (from Project Appraisal Document) Improve the security and reliability of the electricity transmission system and wholesale electricity supply and, therefore, facilitate unimpeded commercial operation of the power system. Improve the availability, quality, and efficiency of heating in selected priority public buildings. Has the Project Development Objective been changed since Board Approval of the Project?

Yes No Public Disclosure Authorized Component(s)

Component Name Component Cost ELECTRICITY SYSTEM UPGRADE 27.79 HEATING SUPPLY AND EFFICIENCY IMPROVEMENT 19.16 TECHNICAL ASSISTANCE FOR PROJECT IMPLEMENTATION AND ENERGY SECTOR REFORM 1.60 PROJECT MANAGEMENT AND ADMINISTRATION 1.38

Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory

Public Disclosure Authorized Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Unsatisfactory Overall Risk Rating

Implementation Status Overview The project had achieved the original key performance indicators by the end of 2009. The electricity component has been implemented with the exception of the SCADA and Public Disclosure Copy Telecommunication contract, which is still experiencing delays. The installation works and pre-commissioning are expected to be completed by December 31, 2011. The Borrower requested the extension of closing date of the project from December 31, 2011 until April 30, 2012.

Page 1 of 7 Public Disclosure Authorized The World Bank Report No: ISR5601

The implementation of the Additional Financing for the Energy II project (heating component contracts) will be completed and will close on December 31, 2011, as scheduled. Locations Country First Administrative Division Location Planned Actual Moldova Raionul Edinet Edinet

Moldova Raionul Ungheni

Moldova Raionul Stefan-Voda Raionul Stefan-Voda ✔

Moldova Raionul Straseni Straseni

Public Disclosure Copy Moldova Raionul Soroca

Moldova Raionul Raionul Orhei ✔

Moldova Raionul Ocnita Raionul Ocnita ✔

Moldova Raionul Raionul Anenii Noi ✔

Moldova Raionul Nisporeni

Moldova Not Entered Republic of Moldova

Moldova Raionul Hincesti Hincesti

Moldova Raionul Ialoveni

Moldova Raionul Floresti Floresti

Moldova Raionul Falesti Falesti

Moldova Raionul Raionul Drochia ✔

Moldova Municipiul Chisinau Chisinau

Moldova Raionul Cimislia Raionul Cimislia ✔

Moldova Raionul Cantemir Cantemir

Moldova Raionul Donduseni

Moldova Municipul Balti Balti

Moldova Raionul Soldanesti Raionul Soldanesti ✔ Public Disclosure Copy Results

Page 2 of 7 The World Bank Report No: ISR5601

Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Reduce outage rates of Moldelectrica Text Value 2002: 253 hours 162 hours (24.65% reduction). Reduce outage rates by 35% transmission lines and substations by 35%. Date 31-Dec-2002 31-Dec-2010 31-Dec-2011 Comments Increased number of outage hours in 2010 is partially caused by scheduled disconnections of lines under the Energy II project activities. In 2009 there were 113 hours. 2011 indicators will be Public Disclosure Copy reviewed and updated in March 2012, as ME’s reports are finalized by the month of March of every year. Reduce non-technical losses in transmission Text Value Non technical losses in 2002 0.68 % (93.8% reduction) Non technical losses reduced and distribution by 75% were 11%. by 75%. Date 31-Dec-2002 31-Dec-2010 31-Dec-2011 Comments 2011 indicators will be reviewed and updated in March 2012, as ME’s reports are finalized by the month of March of every year. Reduce unserved energy by 200 MWh per year Text Value Unserved energy of about 2010: 0 Reduce unserved energy by 602 MWh in 1999. 200 MWh per year Date 31-Dec-2002 31-Dec-2010 31-Dec-2011 Comments There were no cases of unserved energy during 2010. 2011 indicators will be reviewed and updated in March 2012, as ME’s reports arefinalized by the month of March of every year. Reduce technical losses of Moldelectrica by Text Value Total technical losses of 2010: 136.96 GWh (1.3 % Reduce technical losses by 5%. about 138.9 GWh in 2002. reduction) 5% Date 31-Dec-2002 31-Dec-2010 31-Dec-2010 Public Disclosure Copy

Page 3 of 7 The World Bank Report No: ISR5601

Indicator Name Core Unit of Measure Baseline Current End Target Comments (In 2009: 11.7 % reduction since 2002) The discrepancy will be reviewed by the next ISR. 2011 indicators will be reviewed and updated in March 2012, as ME’s reports are finalized by the month of March of every year. Increase no. of buildings with heating Text Value 80 institutions/buildings with 64 institutions & 43 residential 120 days availability of throughout the winter season. heating availability from 0-30 buildings (252 buildings in heating in the selected Public Disclosure Copy days peryear (during project total, incl. schools, hospitals, buildings (170 + 47 preparation the term kindergartens, and (Additional Financing)) institutions/buildings was orphanages) have heating used; an institution may have andDomestic Hot Water 20 buildings on its campus) (DHW) availability throughout the entire year (including during the winter heating season, which is more than 120days/year. Date 31-Dec-2002 30-Sep-2011 31-Dec-2011 Comments

Number of students and teachers who benefit Text Value 0 (schools heated for 0-30 27,485 teachers and students 8,399 students plus 4,800 from educational facilities heated 120 days or days per year) in schools and children in students and teachers more during winter kindergartens benefiting from (Additional Financing) heating and DHW throughout benefitting from educational the entire year (including facilities heated 120 days or during the winter heating more during winter. season, which is more than 120 days/year (AF – 12,938 persons). Date 31-Dec-2002 30-Sep-2011 31-Dec-2011 Comments Public Disclosure Copy

Page 4 of 7 The World Bank Report No: ISR5601

Number of inpatients, medical staff and Text Value 0 (hospitals heated from 0-30 412,206 inpatients and 1 million patients, staff and outpatients benefitting from facilities heated days per year) or with space 11,177 medical staff and visitors plus 228,000 patients, 120 days or more during winter. heaters in only certain areas 876,610 outpatients/year staff andoutpatients of the hospitals. (1,697,510 persons in total) (Additional Financing) benefiting from heating and benefitting from facilities DHW throughout the entire heated 120 days or more year (including during the during winter. winter heating season, which is more than 120 days/year. (AF - 51,806 inpatientsand 3,691 medical staff and 342,020 outpatients –

Public Disclosure Copy 397,517 persons in total). Date 31-Dec-2002 31-May-2011 31-Dec-2011 Comments The figures for medical staff, inpatients and outpatients were revised by MEPIU to reflect correctly the share of people benefitting of stationary treatment (inpatients and outpatients on day stay) and outpatient visits to the medical facilities rehabilitated under the project.

Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Installation of meters and one metering Text Value Obsolete meters 580 meters and one metering 400 meters installed plus one management system management system. metering management system Date 31-Dec-2002 30-Jun-2010 31-Dec-2011 Comments Completed the installment of the meters, and of the metering management system. Replacement of transmission substation Text Value equipment obsolete and 47 high-voltage circuit 53 high voltage circuit equipment prone to failure breakers at three breakers replaced at 3 major 330 kV substations and at substations one 110 kV substation (4 major substations). Public Disclosure Copy Date 31-Dec-2002 30-Jun-2010 31-Dec-2011

Page 5 of 7 The World Bank Report No: ISR5601

Comments Completed already in 2010. Only 47 high-voltage circuit breakers were procured by the project, as at the stage of A4 contract implementation Moldelectrica already had procured and installed circuit breakers with its own funds.

Data on Financial Performance (as of 13-Dec-2011)

Financial Agreement(s) Key Dates Public Disclosure Copy Project Loan No. Status Approval Date Signing Date Effectiveness Date Closing Date P040558 IDA-38330 Effective 25-Nov-2003 04-Dec-2003 02-Mar-2004 31-Dec-2011 P040558 IDA-45410 Effective 29-Jan-2009 16-Mar-2009 04-Sep-2009 31-Dec-2011

Disbursements (in Millions) Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P040558 IDA-38330 Effective XDR 25.70 25.70 0.00 22.79 2.91 89.00 P040558 IDA-45410 Effective XDR 6.70 6.70 0.00 6.70 0.00 100.00

Disbursement Graph Public Disclosure Copy

Page 6 of 7 The World Bank Report No: ISR5601

Key Decisions Regarding Implementation The Ministry of Economy will continue prompt oversight of the Telecommunication and SCADA contract implementation so that the contract can be physically completed by December 31, 2011.

Restructuring History There has been no restructuring to date.

Related Projects P113569-ADDITIONAL FINANCING FOR ENERGY II PROJECT Public Disclosure Copy Public Disclosure Copy

Page 7 of 7