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Implementation Status & Results The World Bank Report No: ISR7027 Implementation Status & Results Bosnia and Herzegovina Energy Community of South East Europe (ECSEE) APL3-Bosnia and Herzegovina Project (P090666) Operation Name: Energy Community of South East Europe (ECSEE) APL3- Project Stage: Implementation Seq.No: 8 Status: ARCHIVED Archive Date: 11-Oct-2011 Bosnia and Herzegovina Project (P090666) Public Disclosure Authorized Country: Bosnia and Herzegovina Approval FY: 2006 Product Line:IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Adaptable Program Loan Implementing Agency(ies): EPBiH, EPHZHB, EPRS Key Dates Public Disclosure Copy Board Approval Date 16-Jun-2006 Original Closing Date 31-Dec-2010 Planned Mid Term Review Date Last Archived ISR Date 11-Oct-2011 Effectiveness Date 13-Apr-2007 Revised Closing Date 30-Jun-2012 Actual Mid Term Review Date 03-Nov-2009 Project Development Objectives Project Development Objective (from Project Appraisal Document) The countries of South East Europe, including Bosnia and Herzegovina, and the European Commission are cooperating to develop a regional energy market, the Energy Community of South East Europe (ECSEE) and integrate it into the internal energy market of the European Union. The objective of the project is to facilitate BiH's participation in ECSEE through investments to: (i) improve dam safety;(ii) reduce adverse environmental impacts at thermal power stations; (iii) replace ageing existing facilities and equipment at hydropower and thermal power stations; (iv) rehabilitate distribution systems and introduce distribution Supervisory Control and Data Public Disclosure Authorized Acquisition (SCADA) systems, (v) establish a market operation system, (vi) provide hardware and software to improve the financial management information systems of the Elektroprivredas; and through technical assistance to facilitate project implementation, and determine the best way to reduce sulfur dioxide and nitrogen oxide emissions at a power plant. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost EPBiH Component 15.20 EPHZHB component 2.00 EPRS component 19.50 Public Disclosure Authorized Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Satisfactory Moderately Satisfactory Public Disclosure Copy Overall Risk Rating Moderate Moderate Page 1 of 6 Public Disclosure Authorized The World Bank Report No: ISR7027 Implementation Status Overview Implementation has progressed well, though slower than projected. Five of the six sub-objectives of the project have been fully achieved. Adverse environmental impacts at Kakanj, Tuzla, Ugljevik and Gacko thermal power plants (TPPs) have been significantly reduced. Air quality has improved at Kakanj TPP. Wastewater treatment and water cooling system rehabilitation and ash handling at Ugljevik and Gacko have decreased the overall emissions and resulted in a more rational use of water. Better coal handling at Tuzla TPP has helped improve environmental performance. Electricity generation has reached 13,988 gigawatt hours compared to a baseline of 12,800. Dam safety studies to recommend measures to improve dam safety have been completed or will be completed shortly. The establishment of a market system operator has only been partially achieved; it has been established as an institution, but is not yet fully functional. Locations Country First Administrative Division Location Planned Actual Bosnia and Herz Republika Srpska Visegrad Public Disclosure Copy Bosnia and Herz Federation of Bosnia and Herzegovina Tuzla Bosnia and Herz Republika Srpska Trebinje Bosnia and Herz Federation of Bosnia and Herzegovina Kakanj Bosnia and Herz Republika Srpska Gacko Bosnia and Herz Republika Srpska Bocac Bosnia and Herz Republika Srpska Ugljevik Bosnia and Herz Federation of Bosnia and Herzegovina Capljina Bosnia and Herz Federation of Bosnia and Herzegovina Salakovac Bosnia and Herz Federation of Bosnia and Herzegovina Jablanica Bosnia and Herz Federation of Bosnia and Herzegovina Neretvljanski Results Project Development Objective Indicators Public Disclosure Copy Page 2 of 6 The World Bank Report No: ISR7027 Indicator Name Core Unit of Measure Baseline Current End Target Market liberalization in the regional market Text Value 0% in most countires Regulators have allowed Market liberalization in eligible customers to buy their accordance with EC Treaty requirements through the which currently envisages full market but due to tariff liberalization by 2015. differentials very few customers do so. Date 01-Jan-2007 01-Jun-2012 30-Jun-2012 Comments Because of the financial The end target is beyond the crisis, most of the countries in Credit closing date. the sub-region have slowed Public Disclosure Copy down market liberalization. Electricity generation is maintained at or above Text Value 12,800 GWh EPBH 7295 GWh Equal or greater base levels in corresponding hydrological EPRS 5298 conditions EPHZHB 1395 GWh Date 31-Dec-2005 01-Jun-2012 30-Jun-2012 Comments Achieved Environmental Compliance is improved at: Text Value No Yes Yes 1. Kakanj TPP Date 31-Dec-2005 01-Jun-2012 30-Jun-2012 2. Tuzla TPP 3. Ugljevik TPP Comments ESP at Kakanj is functioning 4. Gacko TPP better than the contracted performance levels and has helped improve air quality in the vicinity as registered by the project supported environmental monitoring system which is fully operational; wastewater treatment, water cooling system rehabilitation and ash handling at Ugljevik and Gacko has also helped improve environmental performance through decreasing the overall environmental impact (emissions) into the environment and through improved and more rational use of natural resources Public Disclosure Copy (primarily water). Better coal handling in Tuzla indirectly Page 3 of 6 The World Bank Report No: ISR7027 helps improve environmental performance through improved combustion of a more homogeneous coal mix. Dam Safety is improved at: Text Value No No Yes 1. Grabovica Date 31-Dec-2005 11-Jun-2012 30-Jun-2012 2. Salakovac 3. Jablanica Comments Consultants have submitted 4. Rama inception, and intermediate 5. Trebinje II reports to the clients; dam 6. Visegrad safety measures have been 7. Bocac recommended and several bidding documents prepared Public Disclosure Copy that have been used by EIB for procurement to finance the recommended measures as envisaged in the Project design, i.e. IDA to finance technical assistance and EIB to finance implementation of measures. ISO has Functional Market Operation System. Text Value No No Yes Date 31-Dec-2005 01-Jun-2012 30-Jun-2012 Comments The dispute between the two The target will be achieved Entities on the issue of one only partially. Transco (and related institutional arrangement for ISO) has deepened. The dispute is not resolved, and this target is unlikely to be achieved. The market has been established but is not fully functional dueto the dispute. Intermediate Results Indicators Public Disclosure Copy Page 4 of 6 The World Bank Report No: ISR7027 Indicator Name Core Unit of Measure Baseline Current End Target Progress in implementation of EPBiH Text Value 0% 80% 100% components. Date 31-Dec-2005 01-Jun-2012 30-Jun-2012 Comments All but two components have been successfully completed; coal handling plant at Tuzla is expected to be completed by June 30, 2012 and operational certificate issued by August 2012. Dam safety TA, as agreed with IDA and Public Disclosure Copy EIB will continue and be completed by March2013. Progress in implementation of EPHZHB Text Value 0% 100% 100% components. Date 31-Dec-2005 01-Jun-2012 30-Jun-2012 Comments EPHZHB has completed the Bank funded FMIS implementation. Dam Safety TA is expected to be completed by June 30, 2012. Progress in implementation of EPRS Text Value 0% 60% 100% components Date 31-Dec-2005 01-Jun-2012 30-Jun-2012 Comments Six of ten components have been completed; two others will be completed within six months of closing date. One- largely funded by EPRs will be completed one year after Credit closing date, and the dam safety TA, pragmatically extended until Dec 2013. Contract amendments and variations have not been handled well by EPRS. Data on Financial Performance (as of 01-Jun-2012) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date Public Disclosure Copy P090666 IDA-41970 Effective 16-Jun-2006 21-Aug-2006 13-Apr-2007 31-Dec-2010 30-Jun-2012 Disbursements (in Millions) Page 5 of 6 The World Bank Report No: ISR7027 Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P090666 IDA-41970 Effective XDR 25.10 25.10 0.00 20.68 4.42 82.00 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation The project is closing on June 30, 2012. Restructuring History Level two Approved on 22-Nov-2010, Level two Approved on 07-Feb-2011 Related Projects There are no related projects. Public Disclosure Copy Page 6 of 6.
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