Implementation Status & Results Albania Energy Community of South East Europe APL Program - APL 5 for Albania DAM SAFETY (P110481)
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1 losure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized The World Bank Implementation Status & Results Albania Energy Community of South East Europe APL Program - APL 5 for Albania DAM SAFETY (P110481) Operation Name: Energy Community of South East Europe APL Program - Project Stage: Implementation Seq.No: 6 Status: ARCHIVED Archive : 23-Apr-2014 APL 5 for Albania DAM SAFETY (P110481) Country: Albania Approval FY: 2008 Product Line: IBRD/IDA Region: EUROPE AND CENTRAL ASIA Lending Instrument: Adaptable Program Loan Implementing Agency(ies): Albanian Power Corporation (KESH) Key s Board Approval 30-Jun-2008 Original Closing 31-Dec-2013 Planned Mid Term Review 31-Mar-2014 Last Archived ISR 13-Apr-2013 Effectiveness 16-Dec-2008 Revised Closing Actual Mid Term Review Project Development Objectives Project Development Objective (from Project Appraisal Document) The development objectives of the project are to: (i) contribute to safeguarding the major hydroelectric dams of Albania; and (ii) improve their operational efficiency and enhance the stability of power supply for the regional electricity market. The proposed project supports the development of the Energy Community in accordance with the objectives of the Energy Community of South Eastern Europe (ECSEE) APL. The key objectives of the ECSEE Program are to: (a) Create a stable regulatory and market framework to attract investment in gas networks and power systems so that all states in the region have access to the stable and continuous energy supply, essential for economic development and social stability; (b) Establish integrated regional markets in South East Europe, closely linked to the internal energy market of the European Union, and complying with the rules applicable within the European Union; (c) Enhance the energy security of South East Europe and the European Union by providing incentives to connect the Balkans to Caspian and North African gas reserves; and (d) Improve the environmental situation in relation to energy in the region. Has the Project Development Objective been changed since Board Approval of the Project? Yes Component(s) No Component Name Component Cost Physical infrastructure investments Technical Assistance and Training 9.23 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Unsatisfactory Overall Risk Rating Low Implementation Status Overview Page 1 of 7
2 Construction works have started at the Komani Power Plant (electromechanical rehabilitation). The power house cranes are commissioned and Unit 2 was dewartered on February 3, Evaluation is underway for the Spillways Packages for Rehabilitation of Komani and Fierza HPP and the Vau Dejes Spillway Gates and construction of new stoplog. The contracts for Project Implementation and for Safety of Dam Experts Panel have both been extended. Consultant selection process is progressing for Institutional Strengthening of Dam Safety and Emergency Preparedness and for Safe Flood Management of Drin River Cascade. Parts of the project financed by Swiss State Secretariat for Economic Affairs (SECO); i.e. the Dam, Geological and Seismic Monitoring, Geodetic Monitoring, and the Rockfall protection at Fierza Dam, are almost completed. Locations Country First Administrative Division Location Planned Actual Albania Not Entered Ulez Albania Not Entered Shkopet Albania Not Entered Lumi i Matit Albania Not Entered Vau i Dejes Hydroelectric Power Station Albania Not Entered Fierze Hydroelectric Power Station Albania Not Entered Komani Hydroelectric Power Station Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Total safeguarded dams and generation Text Value 0% of Albania's hydropower 20% 80% capacity capacity affected by safeguard measures. The Dam Safety Project will contribute to the Safeguarding the major hydroelectric plants on Drin and Mat River Cascades in Albania. The risk of dam failure is reduced with well-maintained and structurally safe dam and appurtenant structures. Also, the loss of life is reduced, when events affecting the dam safety can be predicted in advance. The development objectives of contributing towards the safeguarding of major hydroelectric dams in Albania is progressing well and the capacities affected by the safeguard measures has increased by 20%. Page 2 of 7
3 Electricity output due to reduced water Text Value 0 GWh 0 GWh 11 GWh leakages and electro-mechanical equipment rehabilitation. Electricity output is expected to increase after rehabilitation of electromechanical equipment in Komani HPP and rehabilitation of spillways gates in three power plants in Drin Cascade are completed. Electricity output due to improved reservoir Text Value 0 GWh 0GWh 20 GWh optimization procedures The Bank financed the study 'Optimization of the Operation of Hydroelectric Plants in Albania.' A report was provided by the consulting firm with procedures to follow on the simulation of the Albanian System in order to optimize the utilization of hydro resources throughout the timeframe. The methods are being applied but it is too early to obtain results yet. Regional Market Liberalization Text Value 0% in most countries While the potential for a regional integrated market is very high in South East Europe, the opening of the energy market is still far from reality given that the an environment dominated by the State. The markets consist of regulated and nonregulated segments with only a few industrial retail customers supplied by either regional traders or local incumbents in the nonregulated market. Except for a few non-regulated customers and situation of shortage of domestic generation, trading Report Page 3 of 7
4 on regional markets is not developed in the Energy Community. Also, price regulation is still too low to generate funding for the necessary investments in generation capacity and networks and even to maintain security of supply. This discourages most utilities as they could go bankrupt. Besides market designs, there is a lack of institutions such as power exchanges for the day, ahead market, regional balancing markets and, joing capacity allocation mechanisms. Most laws envisage full market opening by While the potential for a regional integrated market is very high in South East Europe, the opening of the energy market is still far from reality given that the environment is dominted by the State. The markets consist of regulated and nonregulated segments with only a few industrial retail customers supplied by either regional traders or local incumbents in the nonregulated market. Except for a few non-regulated customers and situation of shortage of domestic generation, trading on regional markets is not developed in the Energy Community. Also, price regulation is still too low to generate funding for the necessary investments in Page 4 of 7
5 generation capacity and networks and even to maintain security of supply. This discourages most utilities as they could go bankrupt. Besides market designs, there is a lack of institutions such as power exchanges for the day, ahead market, regional balancing markets, and joint capacity allocation mechanisms. Most laws envisage full market opening by Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target The rehabilitated spillways are tested and functional for very high priority investments. Text Value Feasibility study outcomes and results. Testing not done yet. Rehabilitation tested and completed. 19-May-2008 Bids for rehabilitation of the spillways on (i) Komani &Fierza HPP and (ii) Vau i Dejes dam were opened on Jan 31, 2014, and evaluation of the bids is underway. High priority remedial measures completed. Text Value Feasibility study outcomes and results Remedial measures of medium priority and operational improvements completed. 19-May-2008 The high priority remedial measures are subjects of the Dam Safety Project under implementation. Text Value Feasibility study outcomes and results. Work on rehabilitation of electromechanical equipment in the Komani HPP has started. The contract was signed on July 3, 2012 and the work started on unit one on February 3, Some improvement has taken place. 19-May-2008 The medium priority remedial measures and operational improvements are subjects of (i) Dam Safety Procedures, Maintenance and Internal Emergency Action Plan are Rehabilitation completed Remedial measures and operational improvements completed. Page 5 of 7
6 the Dam Safety Project under implementation. partially established. The concept of safety maintenance procedures is based on the laws and regulations related to dam safety in Albania and Switzerland. Existing Plans are exemplifiedby the Internal Emergency Action Plan ( IEAP.) (ii) The Dam Safety department at KESH has been reorganized at their headquarters aswellas at each HPPand are now staffedwith qualified experts. (iii) The experts at KESH participated in a two week study tour (June 3-16,2012) study in the USA and Canadaon Dam Safety programs and Emergency Preparedness Plan. (iv) Selection of a consultant undertheta for Instructional Strengtheningof Dam Safety and Emergency Preparedness Plan is underway (v) Selection for a consultant underthe TA for Prefeasibility and Feasibility Study for providing the Safe Flood Management is underway. Safety of Dams Expert Panel Text Value Terms of reference drafted Panel has been selected and in full operation. 20-Mar-2014 The Expert Panel for Dam Safety was established by the end of The Panel is operating since end 2010 and will continue throughout the life of the project. Panel in full operation. 31-Dec-2010 The Expert Panel for Dam Safety was established by the end of The Panel is operating since end 2010 and will continue throughout the life of the project. Data on Financial Performance (as of 28-Feb-2014) Page 6 of 7
7 Financial Agreement(s) Key s Project Ln/Cr/Tf Status Approval Signing Effectiveness Original Closing Revised Closing P IBRD Effective 20-Dec Feb May-2012 P IDA Effective 30-Jun Jul Dec Dec-2013 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P IBRD Effective USD P IDA Effective USD Disbursement Graph Key Decisions Regarding Implementation Construction works have started at the Komani Power Plant. Restructuring History There has been no restructuring to date. Related Projects P DAM SAFETY - ADDITIONAL FINANCING Page 7 of 7
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