MFF Progress Report 34339013 For the meaning of each item, please refer to the MFF Annual Report...

Annual MFF Progress Report34339013For the meaning of each item, please refer to the MFF Annual Report Definitions Table.

FACILITY UPDATEProject Title MFF - Renewable Energy Development Sector

Investment Program (formerly Renewable Energy Development Facility)

Project No. 34339-013

Country/Regional

Pakistan Department CWRD

Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

1 Dec 2006 31 Dec 2017

Division CWEN

MFF Amount ($ million) 510.00

Source COLOCR

Cofinancing($ million) N/A

Source N/A

Facility Summary

ADB approved the MFF - Renewable Energy Development Sector Investment Program (formerly Renewable Energy Development Facility) for an aggregate amount not exceeding $510.00 million from ADB’s ADF, OCR on 1 December 2006. Impact: Reduction in carbon dioxide (CO2) emission Outcome: Increased production and use of clean energy Outputs: Part A: Clean Energy Development Small to medium-size hydropower stations and other sources of RE generation units will be constructed during the program period. Part B. Due Diligence Support Feasibility studies and other due diligence work on new RE schemes Part C: Capacity Development Introduction of a capacity development program at federal, provincial, and project levels Significant Developments of the Facility: There were no significant developments of the facility including major changes to the roadmap, investment program, and policy and legal framework.

Estimated Total No. of Tranches to be Processed

-

Approved Tranches To Date 2Approved Tranche Amount to Date

315.00

Facility Change in Scope

Category Date Proposed Change N/A N/A N/A

Tranche Completion Report N/A

1

Facility Completion Report N/A

MFF Performance Rating (On Track, Potential Problem, At Risk)

On Track

2

TRANCHE 1 UPDATE

Tranche Title Renewable Energy Development Sector Investment Program - Project I


Country/Regional Pakistan Loan/Grant No.

2286, 2287

Project Officer Khattak, Ehtesham Zafar Department CWRD

Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

13 Dec 2006 30 Jun 2012 30 Jun 2017Division PRM

Tranche Amount($ million)

115.00 Source COLOCR

CofinancingAmount ($ million)

N/A Source N/A

Estimated Cost Overrun ($ million)

N/A

Estimated AmountUsed for DED1

($ million)

N/A

Project Data Sheet http://www.adb.org/projects/34339-023/main

1 DED = Detailed Engineering Design.3

Tranche Summary

ADB approved the Renewable Energy Development Sector Investment Program - Project I, not exceeding the aggregate amount of $115.00 million on 13 December 2006 including TA amounts (if any). Impact: Reduction in CO2 emission Outcome: Increased production and use of clean energy Outputs: Part A. Clean Energy Development Small to medium-size hydropower stations are operational in KP and Punjab. Part B. Due Diligence Feasibility studies and other due diligence work on new RE schemes completed. Part C. Capacity Development Training needs assessment at the provincial and project levels conducted. Implementation Arrangements: The executing agency (EA) at the federal level is the Alternative Energy Development Board while at the provincial government level, the program will be executed by a special-purpose implementing agencies (IAs). The subprojects under the first Periodic Financing Request will cover two provinces - Khyber Pakhtunkhwa (KP) (formerly North West Frontier Province) and Punjab. Accordingly, Irrigation and Power Departments (PDs) of the government of KP and Punjab will be their EAs and the IAs will be the Pakhtunkhwa Energy Development Organization (formerly Sarhad Hydel Development Organization) in KP and Punjab IPD in Punjab (until the Punjab Power Development Company Limited is established and becomes operational). Implementation Status: All contracts for this tranche have been awarded. The hydropower plant construction is on-going in both KP and Punjab provinces. Eight (8) feasibility studies for new hydropower sites in KP (3) and Punjab (5) have been completed. PEDO's office building has been completed and outfitted. Procurement under the capacity development component for PEDO and related entities has been completed with the PEDO staff having undergone local and international training. The Punjab Development Company Limited was established and is operational in the Punjab province. It has taken over from Punjab Energy Department.

Tranche Change in ScopeCategory Date Approved Proposed Change

Minor Change 15 Jun 2016 Further extended loan closing from 1 July 2016 to 30 June 2017 to complete the subprojects.


Tranche Performance( Quarterly Performance as of 31 Dec 2016 )

On Track Potential Problem Actual ProblemOverall Rating ✓

Financial ✓Contract Awards ✓Disbursements ✓Safeguards ✓Technical ✓

Contract Awards &Disbursements(Cumulative)

Contract Awards Disbursements$ million % $ million %

119.54 100.00 108.00 88.87

Significant Developments During the Year

Tranche 1 (Loan 2286 and 2287) is a loan of $115.00 million from the Ordinary Capital Resources (OCR) and the Asian Development Fund (ADF), which was approved on 13 December 2006 and declared effective on 29 November 2007. Tranche 1 is rated as On Track. The tranche will be closed on 30 June 2017 as extended. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 1 have reached $119.55 million (100.0%) and $108.00 million (88.9%), respectively. Hydropower plants (HPPs) in Khyber Pakhtunkhwa (KP) achieved 100% progress at Machai and Ranolia at 31 December 2016, respectively. HPPs in Punjab achieved the following by 31 December 2016: (i) Marala: 98.5% progress; (ii) Chianwali: 77.5% progress; (iii) Deg Outfall: 91.7% progress; and (iv) Pakpattan: 100% progress, respectively. ADB approved the third extension of loan closing date to 30 June 2017 to allow completion of six ongoing subprojects. Scope Change: There was a minor scope change for this tranche in 2016. Undertaking and Covenants: There are 55 project covenants, of which, 53 are being complied with/ongoing and 2 are not yet due.



FACILITY UPDATEProject Title MFF - Power Transmission Enhancement Project No. 37192-013Country/Regional


Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

12 Dec 2006 31 Dec 2016 31 Dec 2019

Division CWEN


Source COLOCR

Cofinancing($ million) 82.50

Source AFD

Facility Summary

ADB approved the MFF - Power Transmission Enhancement for an aggregate amount not exceeding $800.00 million from ADB’s ADF, OCR on 12 December 2006. Impact: Improved power transmission infrastructure and management Outcome: Reliable and quality power transmitted in PAK and service coverage expanded Outputs: Transmission networks improved through rehabilitation, augmenetation and expansion of systems NTDC operations and management strengthened Significant Developments of the Facility: There was a major change for the facility in 2016.


-


947.24


Category Date Proposed ChangeMajor Change 05 Dec 2016 The facility availability period was

extended from the original closing date of 31 December 2016 to 31 December 2019, to help complete the project under the fourth and last tranche with cofinancing from the Agence Fran?aise de D?veloppement.


6



On Track

7

TRANCHE 1 UPDATE

Tranche Title Power Transmission Enhancement Investment Program Tranche 1



2289, 2290

Project Officer Zhang, Lei Department CWRD

Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

13 Dec 2006 31 Dec 2016 30 Jun 2012Division PRM




N/A Source N/A


N/A


($ million)

N/A


Tranche Summary

ADB approved the Power Transmission Enhancement Investment Program Tranche 1, not exceeding the aggregate amount of $236.00 million on 13 December 2006 including TA amounts (if any). Impact: Enhanced power transmission operations and management Outcome: Augmented, rehabilitated, and expanded transmission system Outputs: Transmission lines and substations commissioned Implementation Arrangements: NTDC is responsible for implementing the MFF and its individual tranches, including Tranche 1. Implementation Status: Loan 2290 supported the Program with project preparatory, project supervision, safeguards and procurement consultants. The loan will be financially closed in 2017 after all disbursements are processed for expenses incurred within the original loan closing date of 31 December 2016.

Tranche Change in ScopeCategory Date Proposed Change

N/A N/A N/A







133.96 100.00 132.71 99.88


Tranche 1 comprises Loans 2289 and 2290 totaling $138.75 million from OCR and ADF. The original aggregate amount of $236.00 million before partial loan cancellations was approved on 13 December 2006, and declared effective on 11 May 2007. Tranche 1 is rated as On Track. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 1 have reached $133.97 million (100.0%) and $132.71 million (99.9%), respectively. The consultants financed under Loan 2290 completed their services to NTDC, including safeguards monitoring and procurement for Tranches 3 and 4. Scope Change: There were no scope changes for this tranche in 2016. . Undertaking and Covenants: Of the 23 key covenants, 21 are complied with; and 2 are not complied with for (i) submission of NTDC's audited financial statements for FY 2015, which were due on 31 December 2015, and (ii) operationalization of the Central Power Purchasing Agency.


TRANCHE 3 UPDATE




2846


Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

22 Dec 2011 30 Jun 2016 31 Dec 2016Division PRM


243.24 Source OCR


N/A Source N/A


N/A


($ million)

N/A


Tranche Summary

ADB approved the Power Transmission Enhancement Investment Program Tranche 3, not exceeding the aggregate amount of $243.24 million on 22 December 2011 including TA amounts (if any). Impact: Enhanced power transmission operations and management. Outcome: Expanded and reliable transmission system Outputs: Transmission lines and substations commissioned Implementation Arrangements: NTDC is responsible for implementing the MFF and its individual tranches, including Tranche 3. Implementation Status: The turnkey contract for 200 kV substation was signed in March 2015. The allied grid station equipment contracts were signed in May and June 2016. These and the other signed contracts are ongoing. The tranche was not completed by the loan closing date of 31 December 2016. NTDC confirmed financing expenditures to be incurred beyond loan closing.



Minor Change 21 Apr 2016 Loan closing extended from 1 July 2016 to 31 December 2016 to complete the subprojects.

Tranche Performance

( Quarterly Performance as of 31 Dec 2016 )





208.37 98.20 144.26 100.00


Tranche 3 (Loan/Grant 2846) is a loan of $243.24 million from the Ordinary Capital Resources (OCR), which was approved on 22 December 2011, and declared effective on 21 February 2012. Tranche 3 is rated as On Track. Net loan amount after a loan saving cancellation of $23.00. million on 24 October 2016 is $220.24 million Progress: As of 31 December 2016, contract awards and disbursements under Tranche 3 have reached $208.37 million (98.2%) and $144.26 million (100.0%), respectively. The six turnkey contracts have achieved progress as (i) 65R, Package 1, Lot I: 500kV Transmission Line 3rd Circuit - Jamshoro-Moro Section (86%); (ii) 65R, Package 1, Lot II: 500kV Transmission Line 3rd Circuit Jamshoro Rahim Yar Khan (Dadu-Moro-Qazi-Mahar Section = 90%); (iii) 65R, package 1, Lot III: 500kV Transmission Line 3rd Circuit - Qazi-Mahar-Rahim Yar Khan Section (88%); (iv) 65R, Package 2: 500kV Switching Station at Moro and Extension Works at Existing 400kV Substations at Jamshoro, Dadu & Rahim Yar Khan (87%); (v) Package 67R: 220kV AIS Substation Mansehra (50%), and (v) Package 68R: 220kV Double Circuit, Twin Bundle Uch-Sibi Transmission Line (70%), respectively. The contracts for auto transformers and grid station equipment were signed and out of 9 packages/lots, delivery of equipment for five lots have been completed and factory acceptance tests for four lots are expected in January-February 2017 and delivery to be completed by 30 April 2017. NTDC confirmed financing expenditures to be incurred beyond loan closing. Scope Change: There was a minor change for this tranche in 2016. Undertaking and Covenants: Of the 37 key covenants, 8 have been complied with, 27 are ongoing; and 2 are not yet complied with (submission of NTDC's audited financial statements for FY 2015, which were due on 31 December 2015; and establishment of project performance monitoring system).


TRANCHE 4 UPDATE




3203


Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

3 Dec 2014 31 Dec 2016Division PRM


248.00 Source OCR


N/A Source N/A


N/A


($ million)

N/A


Tranche Summary

ADB approved the Power Transmission Enhancement Investment Program Tranche 4, not exceeding the aggregate amount of $248.00 million on 3 December 2014 including TA amounts (if any). Impact: Enhanced power transmission operations and management. Outcome: An expanded and reliable 500-kV and 220-kV transmission system. Outputs: Transmission lines and substations commissioned. Implementation Arrangements: NTDC is responsible for implementing the MFF and its individual tranches, including Tranche 4. Implementation Status: More than half of the contracts in the procurement plan were awarded. As Tranche 4 is now expected to be completed by 31 December 2019, the facility availability period was extended accordingly to allow NTDC to continue implementation beyond Loan 3203 's closing date of 31 December 2016 with their own resources and cofinancing.



Major Change 05 Dec 2016 Administration of cofinancing for up to ?75 million from Agence Fran?aise de D?veloppement for expenses to be incurred beyond Loan 3203's period, i.e. from 1 January 2017 to 31 December 2019.

Minor Change 05 Oct 2016 Partial loan cancellation of $61 million to align the loan amount with the expected contract amounts by 31 December 2016.

Minor Change 28 Jul 2016 Minor change in project scope, and corresponding partial loan cancellation of $63.3 million. Three contract packages were cancelled for (i) supply of grid station transport equipment, which was not endorsed by the government; (ii) engineering, procurement, and construction for static var compensators in Quetta that was impeded by security issues; and (iii) works for transmission line in Guddu-Muzaffargargh, which was moved to the Second Power Transmission Enhancement Investment Program Tranche 1 (Loan 3419) after being rebid.

Tranche Performance






105.34 88.66 43.21 100.00



Tranche 4 comprises Loan 3203 from OCR, which was approved on 3 December 2014, and declared effective on 6 March 2015. The original loan amount of $248.00 million was reduced to $123.70 million after partial loan cancellations. Administration of cofinancing for up to 75 million (around $82.50 million equivalent, Loan 8311) from Agence Fran aise de D veloppement was approved on 5 December 2016 for expenses to be incurred after Loan 3203's loan period (i.e. between 1 January 2017 and 31 December 2019). Loan 8311 is expected to be declared effective in Q1 2017. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 4 have reached $105.34 million (88.7%) and $43.21 million (100.0%), respectively. Of the maximum 59 contracts across nine contract packages, 35 contracts are awarded, with some contracts for 220 kV and 500 kV transmission line subprojects at advanced stage. The remaining contracts are in various stages of procurement and expected to be signed by Q2 2017. Some packages delayed by pre-bid and post-bid clarifications, rebidding, and representations. Scope Change: There was 1 major and 2 minor changes (including scope changes) for this tranche in 2016. Undertaking and Covenants: Of the 38 key covenants, 5 have been complied with, 31 are ongoing; and 2 are not yet complied with (submission of NTDC's audited financial statements for FY 2015, which were due on 31 December 2015; and establishment of project performance monitoring system).



FACILITY UPDATEProject Title MFF - Sindh Cities Improvement Investment Program

(Facility Concept)Project No. 37220-013

Country/Regional


Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

3 Dec 2008 31 Dec 2018

Division CWUW


Source COLOCR


Source N/A

Facility Summary

ADB approved the MFF - Sindh Cities Improvement Investment Program (Facility Concept) for an aggregate amount not exceeding $300.00 million from ADB’s ADF, OCR on 3 December 2008. Impact: Improved health, quality of life in and economic competitiveness of participating towns Outcome: Increased quality, reliability and coverage of water supply, wastewater and solid waste management services in participating towns Outputs: Part A. Improved Urban Service Management and Planning A.1 Creation of effective and sustainable urban services providers A.2 Urban Policy and Strategic Planning Unit (UPSPU/Urban Unit) sustainable; Program Support Unit sustainable throughout Investment Program implementation, providing effective support to Local Government Department/TMAs A.3 Performance-based contracts with private sector pursued Part B: Investments in Water Supply and Wastewater Management Improvements B.1 Rehabilitation and expansion of existing piped water supply systems, water works and treatment facilities in participating towns; groundwater quality monitoring system developed in participating towns B.2 Rehabilitation and expansion of sewerage and drainage networks and wastewater treatment completed in participating towns Part C: Investments in Solid Waste Management Improvements C.1 Development of sanitary landfills and provision of secondary collection (including equipment and services) Significant Developments of the Facility: Due to the delay in the implementation of previous tranches and the weakening commitment of the government on urban reforms, and the limited time left in the facility completion period, the remaining two tranches of the MFF had to be cancelled. There were no significant improvements on reforms, and no new development on roadmap, and policy. The legal framework has been changed, further centralizing local governance.


1

Approved Tranches To Date 2

15

Approved Tranche Amount to Date

137.10



Tranche Completion Report N/A Facility Completion Report N/A


Potential Problem

16

TRANCHE 2 UPDATE

Tranche Title Sindh Cities Improvement Investment Program - Tranche 2



2975, 2976

Project Officer Shafi, Mian S. Department CWRD

Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

18 Dec 2012 31 Aug 2017Division PRM


99.10 Source COLOCR


N/A Source N/A


N/A


($ million)

N/A



Tranche Summary

ADB approved the Sindh Cities Improvement Investment Program - Tranche 2, not exceeding the aggregate amount of $99.10 million on 18 December 2012 including TA amounts (if any). Impact: Improved health, quality of life in and eocnomic competitiveness of participating towns Outcome: Increased quality, reliability, and coverage of water supply, wastewater, and solid waste management services in participating towns Outputs: NSUSC provides effective and more sustainable services in participating towns More informed urban policies and planning Timely and transparent operations support funding for NSUSC to cover eligible shortfall Improved water supply, wastewater and solid waste management services in participating towns Management structure and capacity for WSS operations improved Implementation Arrangements: The executing agency is the Planning and Development Department (P&DD) of the Government of Sindh (GOS) under which a program support unit was established to support overall program implementation. The implementing agency is North Sindh Urban Services Corporation Limited (NSUSC). Implementation Status: Tranche 2 seriously underperformed in 2016. The work on the only awarded civil works contract is very slow and is not expected to complete within the contract completion date. Supply of solid waste and waste water equipment under one ICB contract and nine shopping packages was completed in 2016. Upon EA's request ADB approved to issue a repeat order to the ICB supply contract for procurement of additional item (30% of the original quantities) in December 2016. The Tranche 2 completion date is 31 August 2017, which requires to be extended until 30 June 2018 to award and complete the works and supply contracts identified for the Tranche 2. There has been a high turn-over of the Project Directors due to transfer/postings by the Government of Sindh. At NSUSC, most of the key staff has been appointed, however, the position of MD, and internal auditor are still not filled. An acting MD is in place though. The Board of Directors of the North Sindh Urban Services Corporation (NSUSC) was reconstituted and became active in 2016. However, the positions of nominees from private sector are still vacant which need to be filled. Only one consultancy contract, for design and construction supervision was awarded in 2016. The Government of Sindh has decided to take out two cities (Larkana and Shikarpur) from the mandate of NSUSC. The GoS also agreed to finance the operational expenditure of the NSUSC and has allocated an amount of $20.0 million for this purpose.


N/A N/A N/A







26.70 48.09 22.39 60.30


Tranche 2 (Loan 2975, 2976) is a loan of USD 99.10 million from OCR, which was approved on 18 December 2012 and declared effective on 31 May 2013. Tranche 2 is rated as Actual Problem. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 2 have reached $26.70 million (48.1%) and $22.39 million (60.3%), respectively. Six packages (ICB) of civil works were designed by the consultants. The bidding documents of these contracts were prepared by NSUSC, reviewed and approved by ADB. Of the six pacakges, four were advertised in Q3 2016. Bids were received in December 2016 are are currently being evaluated by NSUSC. Two ICB packages will be advertised towards mid of February 2017. Poor performance in procurement of works and supply contracts is due to the EA's lack of procurement capacity, and the delay in Government of Sindh's decision on changes in the project scope. PRM has been helping the NSUSC by providing services of a procurement Specialist (staff consultant) to help EA in procurement and consultant recruitment matters. Scope Change: The Government of Sindh is working on a request for scope change. This includes dropping of two cities from NSUSC's mandate, and some addition/deletion of subprojects in the Tranche II. However, as of 31 December 2016, no such request was received by ADB. Undertaking and Covenants: .There are 60 covenants in the loan agreements of which 57 are ongoing and 3 are partially complied with.



FACILITY UPDATEProject Title MFF-Punjab Irrigated Agriculture Investment Program

(Facility)Project No. 37231-013

Country/Regional


Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

13 Dec 2006 30 Sep 2017 30 Sep 2017

Division CWER


Source COLOCR


Source N/A

Facility Summary

ADB approved the MFF-Punjab Irrigated Agriculture Investment Program (Facility) for an aggregate amount not exceeding $700.00 million from ADB’s ADF, OCR on 13 December 2006. Impact: Increased agricultural productivity and farm income in Punjab irrigated agricultural areas Outcome: Punjab irrigated agriculture program areas receives a sustainably improved delivery of water services and management Outputs: 1. Irrigation infrastructure upgraded and rehabilitated 2. Flood risks in the program area are reduced 3. Groundwater in the program area is used sustainably 4. Improved on-farm water management and agricultural support practices adopted in the program area 5. Water management institutions improved Significant Developments of the Facility: There were no significant development of the facility including major changes to the roadmap, investment program and policy and legal framework.


-


597.37




20


On Track

21

TRANCHE 1 UPDATE

Tranche Title Punjab Irrigated Agriculture Investment Program-Project 1



2299, 2300

Project Officer Zafar, Asad A. Department CWRD

Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

18 Dec 2006 30 Sep 2013 30 Jun 2017Division PRM




N/A Source N/A


26.57


($ million)

10.00



Tranche Summary

ADB approved the Punjab Irrigated Agriculture Investment Program-Project 1, not exceeding the aggregate amount of $227.80 million on 18 December 2006 including TA amounts (if any). Impact: Increased agricultural production and farm income in Lower Bari Doab Canal (LBDC) command area (Okara, Sahiwal, Khanewal, Vehari, and Multan districts) Outcome: LBDC command area receives a sustainably improved delivery of water services and management Outputs: The LBDC and distribution system rehabilitated on time and within budget. A groundwater management plan and conjunctive use strategy for LBDC is operational Farmers use improved on-farm water management practices Area Water Board (AWB) and Farmers Organizations (FOs) take responsibility for operations of canal systems. Due diligence of subsequent tranches Balloki Barrage rehabilitated on time and within budget Implementation Arrangements: The Executing Agency is Punjab Irrigation Department (PID). The implementing agencies are PID through Project Management Unit, Punjab Irrigation and Drainage Authority, and Directorate of On-Farm Water Management. Implementation Status: The PMU is established. All the consultancy and civil works contracts have been awarded. Five of the 10 civil works contracts were completed. The progress on the nonphysical components includes (i) establishment of water user associations, (ii) farmers organizations (FOs) and area water board, completing the decentralized farmers management structures for operation and maintenance of irrigation system, (iii) completion of a groundwater modeling study and institutionalization of its recommendations within the PID, and (iv) establishment of on-farm demonstration plots with the FOs.


N/A N/A N/A







202.81 93.91 201.25 100.00


Tranche 1 (Loans 2299,2300) is a loan of $227.80 million which was approved on 18 December 2006 and declared effective on 24 August 2007. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 1 have reached $202.81 million (93.9%) and $201.25 million (100.0%), respectively. The implementation period of Project 1 (Loan 2299, 2300) was extended by from 30 September 2016 to revised closing on 30 June 2017. Scope Change: There were no scope changes for this tranche in 2016. Undertaking and Covenants: All covenants in the framework financing agreement (FFA) and the legal agreements for all tranches have been complied with, except for four for which the action plan has been agreed upon with the EA.


TRANCHE 2 UPDATE

Tranche Title Punjab Irrigated Agriculture Investment Program - Project 2



2841

Project Officer Sato, Noriko Department CWRD

Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

22 Dec 2011 31 Dec 2016 31 Jul 2017Division CWER


270.00 Source COL


N/A Source N/A


N/A


($ million)

N/A


Tranche Summary

ADB approved the Punjab Irrigated Agriculture Investment Program - Project 2, not exceeding the aggregate amount of $270.00 million on 22 December 2011 including TA amounts (if any). Impact: Improved agricultural production and farm income in Lower Chenab Canal (LCC) command area (Gujranwala, Hafizabad, Sheikhupura, Nankana Sahib, Faisalabad, Jhang and Toba Tek Singh districts). Outcome: The sustainable improved delivery of services for irrigated agriculture and better water management in LCC command areas. Outputs: 1. New Khanki Barrage completed on time and within the budget. 2. EA's improved project management efficiency. Implementation Arrangements: The executing agency is the Punjab Irrigation Department (PID). PID through the Project Management Office (PMO) for Barrages is the implementing agency. Implementation Status: The barrage works is significantly completed. Lower Chenab Canal was already operational through newly constructed Head Regulator since 24 October 2016. Dismantelling of old head regulator and some river training works are ongoing.



N/A N/A N/A






191.71 100.00 152.66 96.76


Tranche 2 (Loan 2841) is a loan of $270 million from the Asian Development Fund (ADF), which was approved on 22 December 2011 and declared effective on 17 February 2012. Tranche 2 is rated as On Track. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 2 have reached $191.71 million (100.0%) and $152.66 million (96.8%), respectively. Savings of around $30 million are expected. Scope Change: There were no scope changes for this tranche in 2016. However, Output 2 statement was reworded as "EA and Community's capabilities improved" with associated change in performance indicators. Undertaking and Covenants: Of the 14 loan covenants, 12 were complied with, 1 is being complied with and 1 is late complied. The covenant on the recruitment of external monitor for safeguards which was to be recruited 6 months after loan effectiveness is complied late.


TRANCHE 3 UPDATE

Tranche Title Punjab Irrigated Agriculture Investment Program Tranche 3



2971


Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

13 Dec 2012 31 Mar 2017 30 Sep 2017Division PRM


73.00 Source OCR


N/A Source N/A


N/A


($ million)

N/A


Tranche Summary

ADB approved the Punjab Irrigated Agriculture Investment Program Tranche 3, not exceeding the aggregate amount of $73.00 million on 13 December 2012 including TA amounts (if any). Impact: Improved agricultural production and farm income in Pakpattan Canal command area (Okara, Pakpattan, Vehari and Lodhran districts). Outcome: Improved and reliable water supplies for irrigated agriculture in Pakpattan canal command areas. Outputs: 1. Rehabilitation of Pakpattan canal and Suleimanki Barrage completed on time and within the budget 2. EAs improved project management capacity Implementation Arrangements: The executing agency is the Punjab Irrigation Department (PID). PID through the Project Management Office (PMO) for Barrages is the implementing agency. Implementation Status: The PMU is established. One consultancy and two civil works contracts have been awarded.


N/A N/A N/A







61.75 100.00 37.51 91.17


Tranche 3 (Loan 2971) is a loan of $73.0 million from ordinary capital resources (OCR), which was approved on 13 December 2012 and declared effective on 6 June 2013. Tranche 3 is rated as On Track. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 3 have reached $61.75 million (100.0%) and $37.51 million (91.2%), respectively. Progress on the two civil works contract ICB-01 and ICB-02 is 67.50% and 86.13% respectively. The overall physical progress is 77.75% against an elapsed project period of 94%. Scope Change: There were no scope changes for this tranche in 2016. Undertaking and Covenants: Of the twelve (12) loan covenants, five (5) are complied with, six (6) are being complied and one is not yet due.


TRANCHE 4 UPDATE

Tranche Title Punjab Irrigated Agriculture Investment Program – Tranche 4



3351


Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

8 Dec 2015 30 Jun 2017Division PRM


26.57 Source OCR


N/A Source N/A


N/A


($ million)

N/A



Tranche Summary

ADB approved the Punjab Irrigated Agriculture Investment Program - Tranche 4, not exceeding the aggregate amount of $26.57 million on 8 December 2015 including TA amounts (if any). Impact: Increased agricultural production and farm income in Lower Bari Doab Canal (LBDC) command area. Outcome: LBDC command area receives a sustainably improved delivery of water services and management. Outputs: Balloki Barrage rehabilitated on revised time schedule and within budget based on the detail design and model studies. A groundwater management plan and conjunctive use strategy for LBDC is operational. Farmers use improved on-farm water management practices. LBDC and distribution system rehabilitated on revised time schedule and within budget based on detail design. Due diligence of subsequent tranches. Area Water Board (AWB) and Farmers Organizations (FOs) take responsibility for operations of canal systems. Implementation Arrangements: The Executing Agency is Punjab Irrigation Department (PID). The implementing agencies are PID through Project Management Unit, Punjab Irrigation and Drainage Authority, and Directorate of On-Farm Water Management. Implementation Status: The PMU is established. This tranche finances the cost overrun of Project 1 under which all the consultancy and civil works contracts have been awarded.


N/A N/A N/A






23.75 100.00 8.16 85.87



Tranche 4 (Loans 3351) is a loan of $26.57 million from ADBs Ordinary Capital Resource (OCR) which was approved on 8 December 2015 and declared effective on 11 January 2016. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 4 have reached $23.75 million (100.0%) and $8.16 million (85.9%), respectively. . Scope Change: There were no scope changes for this tranche in 2016. Undertaking and Covenants: All covenants in the framework financing agreement (FFA) and the legal agreements have been complied with, except for four for which the action plan has been agreed upon with the EA.



FACILITY UPDATEProject Title MFF - Power Distribution Enhancement Investment

ProgramProject No. 38456-013

Country/Regional


Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

3 Sep 2008 30 Jun 2018

Division CWEN


Source COLOCR


Source N/A

Facility Summary

ADB approved the MFF - Power Distribution Enhancement Investment Program for an aggregate amount not exceeding $810.00 million from ADB’s ADF, OCR on 3 September 2008. Impact: Increased and reliable access to electricity services in PAK Outcome: Improved power distribution infrastructure and management. Outputs: 1. Power distribution systems rehabilitated, augmented and expanded. 2. Distribution companies (DISCOs) institutionalized and strengthened Significant Developments of the Facility: There were no significant developments of the facility including major changes to the roadmap, investment program, and policy and legal framework.


-


906.20





On Track

32

TRANCHE 1 UPDATE

Tranche Title Power Distribution Enhancement Investment Program- Project 1



2438, 2439


Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

12 Sep 2008 31 Dec 2018Division PRM




N/A Source N/A


N/A


($ million)

N/A


Tranche Summary

ADB approved the Power Distribution Enhancement Investment Program- Project 1, not exceeding the aggregate amount of $252.00 million on 12 September 2008 including TA amounts (if any). Impact: Improved power distribution infrastructure and management Outcome: Power distribution systems rehabilitated, augmented and expanded. Outputs: Subprojects Commissioned. Implementation Arrangements: The executing agency is the Pakistan Electric Power Company (PEPCO). The implementing agencies are the distribution companies (DISCOs), i.e., Faisalabad Electric Supply Company Limited (FESCO) Gujranwala Electric Power Company Limited (GEPCO) Hyderabad Electric Supply Company Limited (HESCO) Islamabad Electric Supply Company Limited (IESCO) Lahore Electric Supply Company Limited (LESCO) Multan Electric Power Company Limited (MEPCO) Peshawar Electric Supply Company Limited (PESCO) Quetta Electric Supply Company Limited (QESCO) Implementation Status: Tranche 1 (Loan 2438) was closed on 30 June 2012. Due to savings, the first, second and third partial cancellation of $13.4 million, $27.8 million and $28.5 million were effected on 21 July 2010, 23 November 2012 and 16 July 2013, respectively. The final cancellation of $0.44 million was effected on 3 January 2014. All 180 subprojects including additional scope have been completed, with 2,588 MVA capacity and 24.33 km distribution lines added to the distribution system.



N/A N/A N/A






180.10 100.00 178.10 100.00


Tranche 1 (Loan 2438, 2439) is a loan of $252.00 million from the Ordinary Capital Resources (OCR) and the Asian Development Fund (ADF), which was approved on 12 September 2008 and declared effective on 13 January 2009. Tranche 1 is rated On Track. Loan 2438 was closed on 3 January 2014 due to the delayed refund of imprest account and mobilization advances against two cancelled non-performing contracts under the category "PESCO". Loan 2439 will close on 31 December 2018. Net loan amount after first, second and third partial cancellation of $13.4 million, $27.8 million, 28.5 million and final $0.44 million effected on 21 July 2010, 23 November 2012, 16 July 2013 and 3 January 2014, respectively is $210.83 million. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 1 have reached $180.10 million (100.0%) and $178.10 million (100.0%), respectively. A total of 180 subprojects have been completed for this tranche, with 2,588 MVA of transformer capacity and 24.33 km distribution lines added to the distribution system. The loan 2438 closed on 3 January 2014. Loan 2439 will close on 31 December 2018. Scope Change: There were no scope changes for this tranche in 2016. Undertaking and Covenants: All 12 covenants have been complied with.


TRANCHE 2 UPDATE

Tranche Title Power Distribution Enhancement Investment Program - Tranche 2



2727


Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

14 Dec 2010 30 Sep 2015 31 Mar 2018Division PRM


242.00 Source OCR


N/A Source N/A


N/A


($ million)

N/A


Tranche Summary

ADB approved the Power Distribution Enhancement Investment Program - Tranche 2, not exceeding the aggregate amount of $242.00 million on 14 December 2010 including TA amounts (if any). Impact: Improved power distribution infrastructure and management Outcome: Power distribution systems rehabilitated, augmented and expanded Outputs: Subprojects commissioned Implementation Arrangements: The executing agency is the Pakistan Electric Power Company (PEPCO). The implementing agencies are the distribution companies (DISCOs), i.e., Faisalabad Electric Supply Company Limited (FESCO) Gujranwala Electric Power Company Limited (GEPCO) Hyderabad Electric Supply Company Limited (HESCO) Islamabad Electric Supply Company Limited (IESCO) Lahore Electric Supply Company Limited (LESCO) Multan Electric Power Company Limited (MEPCO) Peshawar Electric Supply Company Limited (PESCO) Quetta Electric Supply Company Limited (QESCO) Implementation Status: Tranche 2 is on track. Out of 161 subprojects including additional scope, 106 have been completed, 362.2 km transmission line added and 1,881 MVA added to the system. The remaining subprojects and transmission lines would be completed within the extended loan closing date of 31 March 2018.



Minor Change 28 Jun 2016 Tranche 2: Minor change to Project, reallocation of loan proceeds and extension of the loan closing date.

Tranche Performance






151.36 96.71 123.92 91.28


Tranche 2 (Loan 2727) is a loan of $242.0 million from Ordinary Capital Resources (OCR), which was approved on 14 December 2010 and declared effective on 5 October 2011. Tranche 2 is rated as On Track. The loan will be closed on 31 March 2018 as extended. Net loan amount after a loan saving cancellation of $69.7 million on 22 May 2013 is $172.3 million. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 2 have reached $151.36 million (96.7%) and $123.92 million (91.3%), respectively. A total of 106 have been completed for this tranche, with 1,881 MVA of transformer capacity and 362.2 km transmission line added to the distribution system. Scope Change: There was a minor scope change for this tranche in 2016. Undertaking and Covenants: There are a total of 11 covenants for this tranche, two (2) of which have been complied with, one (1) partially complied with and the remaining 8 are ongoing/being complied with.


TRANCHE 3 UPDATE




2972


Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

14 Dec 2012 31 Dec 2016 31 Jan 2018Division PRM


245.00 Source OCR


N/A Source N/A


N/A


($ million)

N/A


Tranche Summary

ADB approved the Power Distribution Enhancement Investment Program - Tranche 3, not exceeding the aggregate amount of $245.00 million on 14 December 2012 including TA amounts (if any). Impact: Reliable and quality power supplied and service coverage expanded Outcome: Power distribution systems rehabilitated, augmented and expanded Outputs: Subprojects commissioned Implementation Arrangements: The executing agency is the Pakistan Electric Power Company (PEPCO). The implementing agencies are the distribution companies (DISCOs), i.e., Faisalabad Electric Supply Company Limited (FESCO) Gujranwala Electric Power Company Limited (GEPCO) Hyderabad Electric Supply Company Limited (HESCO) Islamabad Electric Supply Company Limited (IESCO) Lahore Electric Supply Company Limited (LESCO) Multan Electric Power Company Limited (MEPCO) Peshawar Electric Supply Company Limited (PESCO) Quetta Electric Supply Company Limited (QESCO) Implementation Status: Out of 117 subprojects including additional scope, 39 have been completed, 94.43 km transmission line added and 535 MVA added to the system. The remaining subprojects and transmission lines would be completed within the extended loan closing date of 31 January 2018.



N/A N/A N/A






195.01 97.88 122.38 100.00


Tranche 3 (Loan 2972) is a loan of $245.0 million from Ordinary Capital Resources (OCR), which was approved on 14 December 2012 and declared effective on 10 December 2013. Tranche 3 is rated as On Track. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 3 have reached $195.01 million (97.9%) and $122.38 million (100.0%), respectively. Out of 117 subprojects, 39 have been completed, 94.43 km transmission line added and 535 MVA capacity added to the distribution system. Scope Change: There were no scope changes for this tranche in 2016. Undertaking and Covenants: There are 25 project covenants, of which, 24 are complied with/ongoing and one (1) is partially complied with.


TRANCHE 4 UPDATE




3096


Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

13 Dec 2013 30 Jun 2017 30 Jun 2018Division PRM


167.20 Source OCR


N/A Source N/A


N/A


($ million)

N/A


Tranche Summary

ADB approved the Power Distribution Enhancement Investment Program - Tranche 4, not exceeding the aggregate amount of $167.20 million on 13 December 2013 including TA amounts (if any). Impact: Reliable and quality power supplied and service coverage expanded Outcome: Capacity of the power distribution systems increased Outputs: Subprojects commissioned Implementation Arrangements: The executing agency is the Pakistan Electric Power Company (PEPCO). The implementing agencies are the distribution companies (DISCOs), i.e., Faisalabad Electric Supply Company Limited (FESCO) Gujranwala Electric Power Company Limited (GEPCO) Hyderabad Electric Supply Company Limited (HESCO) Islamabad Electric Supply Company Limited (IESCO) Lahore Electric Supply Company Limited (LESCO) Multan Electric Power Company Limited (MEPCO) Peshawar Electric Supply Company Limited (PESCO) Quetta Electric Supply Company Limited (QESCO) Implementation Status: Out of 315 subprojects including additional scope, 70 have been completed and 1,169 MVA added to the system. The remaining subprojects would be completed within the proposed extended loan closing date of 30 June 2018.



N/A N/A N/A






101.44 90.95 68.44 100.00


Tranche 4 (Loan 3096) is a loan of $167.20 million from Ordinary Capital Resources (OCR), which was approved on 13 December 2013 and declared effective on 18 July 2014. Tranche 4 is rated as On Track. As proposed by the Borrower, the loan will be closed on 30 June 2018, yet to be extended. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 4 have reached $101.44 million (91.0%) and $68.44 million (100.0%), respectively. A total of 70 subprojects have been completed for this tranche, with 1,169 MV of transformer capacity added to the distribution system. Scope Change: There were no scope changes for this tranche in 2016. Undertaking and Covenants: Of the 25 key covenants, 6 have been complied with; 18 are ongoing; and 1 is not yet due.



FACILITY UPDATEProject Title MFF-Road Network Development Program Project No. 39176-013Country/Regional

Azerbaijan Department CWRD

Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

28 Sep 2007 31 Dec 2014 28 Sep 2017

Division CWTC


Source COLOCR


Source N/A

Facility Summary

ADB approved the MFF-Road Network Development Program for an aggregate amount not exceeding $500.00 million from ADB’s ADF, OCR on 28 September 2007. Impact: Sustained economic development in Azerbaijan and its cooperation with neighboring countries Outcome: An adequate, efficient, safe, and sustainable road network in Azerbaijan, connecting the country domestically and internationally Outputs: A 4-lane expressway between Masalli and Astara on the southern corridor built, with access roads rehabilitated (Project 1) A 2-lane road between Ganja and Qazakh on the east-west corridor upgraded to a 4-lane expressway (Project 2) Road network management capacity strengthened (throughout the MFF) Significant Developments of the Facility: There were no significant developments of the facility including major changes to the roadmap, investment program, and policy and legal framework.


-


500.40





On Track

41

TRANCHE 1 UPDATETranche Title Road Network Development Program - Tranche 1 Project No. 39176-023Country/Regional Azerbaijan Loan/Grant

No.2354, 2355

Project Officer Faraj, Huseynbeyov Department CWRD

Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

4 Oct 2007 30 Jun 2010 28 Sep 2017Division AZRM




N/A Source N/A


N/A


($ million)

0.00



Tranche Summary

ADB approved the Road Network Development Program - Tranche 1, not exceeding the aggregate amount of $200.00 million on 4 October 2007 including TA amounts (if any). Impact: Greater economic development in Azerbaijan and expanded trade with the neighboring countries Outcome: An efficient, safe, and sustainable southern road corridor from Baku Outputs: Section A of 4-lane expressway between Masalli and Astara on the southern corridor built, with access roads rehabilitated Road network management capacity strengthened Implementation Arrangements: The Ministry of Transport (MOT) was the executing agency and Azeravtoyol OJSC (AAY) under MOT was the implementing agency. In accordance with the Order No. 826 of the President of Azerbaijan dated 9 March 2016, AAY now reports directly to the Cabinet of Ministers of Azerbaijan Republic and is subsequently renamed as Azeravtoyol OJSC. Implementation Status: All major contracts have been awarded. The original civil works contract for Section A with AzerinshaatService LLC was terminated in October 2015 with about 66% completion of physical progress. The direct contracting with Kolin Insaat Turizm Sanayi ve Tic A.S. for the balance work was approved and contract was signed in June 2016. ADB approved on 21 June 2016 the government's request to extend the loan closing date by 6 months, from 30 June 2016 to 31 December 2016 (resulting to cumulative extension of 6.5 years). The government's request to cancel $11 million under Loan 2354-AZE was approved by ADB in October 2016, reducing the loan amount to $179 million. ADB received on 19 December 2016 the government 's request to extend Tranche 1 loan closing date to 28 September 2017 to fully complete the road works for Section A. The approval for the request for extension of loan closing date is currently being processed.


N/A N/A N/A







174.22 98.14 170.61 90.36


Tranche 1 (Loan 2354, 2355) is a loan of USD 200.00 million from ADF, OCR, which was approved on 4 October 2007 and declared effective on 3 March 2008. Tranche 1 is rated as On Track. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 1 have reached $174.22 million (98.1%) and $170.61 million (90.4%), respectively. Cumulative progress for Section A is about 88.58% completed as of 30 November 2016. The four (4) weighbrige stations have been installed and are under defects notification period until December 2016. Lenkaran Bridge was completed and the taking-over certificate was issued in September 2014. Contract awards (denominated in AZN) was adversely affected due to AZN devaluation. The currency exchange (AZN to USD) dropped twice in 2015 (February and December), from AZN1 = $1.277 on 1 January 2015 to AZN1 = $0.64 on 31 December 2015 and continued the trend in 2016 (AZN1 = $0.54 on 31 December 2016). As a result, contract awards and disbursements (in USD equivalent) dropped and this downgrades related performance rating. Scope Change: There were no scope changes for this tranche in 2016. Undertaking and Covenants: Some covenants are partially complied with; the rest are being complied with and regularly monitored.



No.2831


Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

14 Dec 2011 31 Dec 2014 28 Sep 2017Division AZRM


200.00 Source OCR


N/A Source N/A


N/A


($ million)

N/A


Tranche Summary

ADB approved the Road Network Development Program - Tranche 3, not exceeding the aggregate amount of $200.00 million on 14 December 2011 including TA amounts (if any). Impact: Greater economic development in Azerbaijan and expanded trade with neighboring countries Outcome: An efficient, safe, and sustainable southern road corridor from Baku. Outputs: Sections B and C of 4-lane expressway between Masalli and Astara on the southern corridor built, with access roads rehabilitated Implementation Arrangements: The Ministry of Transport (MOT) was the executing agency and Azeravtoyol OJSC (AAY) under MOT was the implementing agency. In accordance with the Order No. 826 of the President of Azerbaijan dated 9 March 2016, AAY now reports directly to the Cabinet of Ministers of Azerbaijan Republic and is subsequently renamed as Azeravtoyol OJSC. Implementation Status: All contracts have been awarded. Due to changes in legislation in Azerbaijan which resulted in increased prices for fuel (diesel) and bitumen, adjustment to contract price for both Sections B and C was endorsed by ADB in June and May 2016, respectively, at the request of Azeravtoyol. The contract completion date for Section B was extended to 31 Dec 2016 in lieu of resolving pending land acquisition issues. The contract completion date for Section C was extended from Oct 2016 to July 2017 per approved Variation No. 2 on account of unforeseen ground conditions discovered during the construction and additional BOQ items/quantities necessary to complete the works.



N/A N/A N/A






157.24 78.62 148.28 100.00


Tranche 3 (Loan 2831) is a loan of USD 200.00 million from OCR, which was approved on 14 December 2011 and declared effective on 23 October 2012. Tranche 3 is rated as On Track. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 3 have reached $157.24 million (78.6%) and $148.28 million (100.0%), respectively. Civil works for Section B is about 74.51% and for Section C is about 68.13% completed as of 30 November 2016. Contract awards (denominated in AZN) was adversely affected due to AZN devaluation. The currency exchange (AZN to USD) dropped twice in 2015 (February and December), from AZN1 = $1.277 on 1 January 2015 to AZN1 = $0.64 on 31 December 2015 and continued the trend in 2016 (AZN1 = $0.54 on 31 December 2016). As a result, contract awards and disbursements (in USD equivalent) dropped and this downgrades related performance rating. Scope Change: There were no scope changes for this tranche in 2016. Undertaking and Covenants: Some covenants are partially complied with; the rest are being complied with and regularly monitored.



No.3116

Project Officer San Miguel, Cesar M. Department CWRD

Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

27 Mar 2014 28 Sep 2017Division CWTC


45.00 Source OCR


N/A Source N/A


N/A


($ million)

N/A


Tranche Summary

ADB approved the Road Network Development Program - Tranche 4, not exceeding the aggregate amount of $45.00 million on 27 March 2014 including TA amounts (if any). Impact: Greater socioeconomic development in the Ganja region of Azerbaijan and its cooperation with neighboring countries Outcome: An efficient, safe, and sustainable road network in the Ganja region of Azerbaijan Outputs: Four bridges reconstructed and associated infrastructure and local roads rehabilitated in the Ganja region Project implementation support to ARS, timely and effectively provided Implementation Arrangements: The Ministry of Transport (MOT) was the executing agency and Azeravtoyol OJSC (AAY) under MOT was the implementing agency. In accordance with the Order No. 826 of the President of Azerbaijan dated 9 March 2016, AAY now reports directly to the Cabinet of Ministers of Azerbaijan Republic and is subsequently renamed as Azeravtoyol OJSC. Implementation Status: The designs of four bridges under Tranche 4 were completed by the contractor and approved by the Ministry of Emergency. Shop drawings of all bridges are currently under review. Construction activities are ongoing.



Minor Change 09 Mar 2016 To include bank charges as eligible expenditure for ADB financing under Loan 3116-AZE.

Tranche Performance






19.70 98.34 11.12 100.00


Tranche 4 (Loan 3116) is a loan of USD 45.00 million from OCR, which was approved on 27 March 2014 and declared effective on 9 September 2014. Tranche 4 is rated as On Track. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 4 have reached $19.70 million (98.3%) and $11.12 million (100.0%), respectively. Cumulative progress for the four bridges is about 64.46% completed as of 30 November 2016. Contract awards (denominated in AZN) was adversely affected due to AZN devaluation. The currency exchange (AZN to USD) dropped twice in 2015 (February and December), from AZN1 = $1.277 on 1 January 2015 to AZN1 = $0.64 on 31 December 2015 and continued the trend in 2016 (AZN1 = $0.54 on 31 December 2016). As a result, contract awards and disbursements (in USD equivalent) dropped and this downgrades related performance rating. Scope Change: There was a minor scope change for this tranche in 2016. Undertaking and Covenants: Some covenants are partially complied with; the rest are being complied with and regularly monitored.



FACILITY UPDATEProject Title National Trade Corridor Highway Investment Program Project No. 40075-013Country/Regional


Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

10 Dec 2007 31 Aug 2017 10 Dec 2017

Division CWTC


Source COLOCR


Source N/A

Facility Summary

ADB approved the National Trade Corridor Highway Investment Program for an aggregate amount not exceeding $900.00 million from ADB’s ADF, OCR on 10 December 2007. Impact: Increased trade growth Outcome: Efficiency gain for road traffice operation along the National Trade Corridor Outputs: 1. Newly constructed and upgraded roads and bridges. 2. NTC Business Plan and Coordinating Body 3. Institutional Capacity Development Significant Developments of the Facility: There were no significant developments of the facility including major changes to the roadmap, investment program, and policy and legal framework.


1


507.00





On Track

49

TRANCHE 2 UPDATE

Tranche Title National Trade Corridor Highway Investment Program, Tranche 2



0434, 3121

Project Officer Karki, Pawan Department CWRD

Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

1 Apr 2014 10 Dec 2017Division PRM


200.00 Source OCR


N/A Source N/A


N/A


($ million)

N/A


Tranche Summary

ADB approved the National Trade Corridor Highway Investment Program, Tranche 2, not exceeding the aggregate amount of $200.00 million on 1 April 2014 including TA amounts (if any). Impact: Efficiency gain for road traffic operation along the National Trade Corridor Outcome: Improved regional network for movement of goods and people along E35 expressway Outputs: Expressway connecting Hassanabdal and Sarai Saleh constructed and operational NHA's institutional capacity in social safeguards improved Implementation Arrangements: National Highway Authority is the Executing Agency Implementation Status: The Project comprises of two (2) civil works contracts awarded in December 2014; Package-I (Burhan to JariKas) with a road length of 20.3 km and Package II (JarijKas to Sarai Saleh) with a road length of 19.2 km. The overall physical progress of works in both packages is 63% and 40% respectively. The progress in Package-II needs improved project management to expeditiously catch up on progress targets. It is strongly recommended that the contractor of Package-II mobilize necessary additional resources, initiate work activities in parallel and extend its working hours. NHA, through the Engineer, should closely monitor the works progress of both the contractors.



Minor Change 29 Apr 2016 On July 2015, NHA requested an upgradation of 4 lane expressway (original design) to a 6 lane motorway under Tranche 2. ADB approved on 29 December 2015 the upgradation of structures from 4 lanes to 6 lanes and simultaneously approved the Variation Order (VO) No. 1 of $18 million for the additional costs for expanding structures for both packages on 21 January 2016. On 25 April 2016, NHA again requested for fully upgrading of E35 from a 4-lane to a 6-lane motorway which was also approved by ADB on 29 April 2016. A VO No. 2 of $ 23 million for additional quantities was also approved on 24 November 2016.

Tranche Performance






143.16 100.00 86.09 82.71



Tranche 2 (Loan 3121) is a loan of USD 117.6 million from OCR, which was approved on 01 April 2014 and declared effective on 11 November 2014. Tranche 2 is rated as On Track. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 2 have reached $143.16 million (100.0%) and $86.09 million (82.7%), respectively. The overall physical progress of works in both packages is 63% and 40% respectively. Scope Change: There was a minor scope change for this tranche in 2016. Undertaking and Covenants: Out of total 56 covenants, - 14 are complied, 38 being complied, 2 are to be complied, 1 is delayed and 1 is not yet due.


TRANCHE 3 UPDATE

Tranche Title National Trade Corridor Highway Investment Program - Tranche 3



0435, 3197

Project Officer Karki, Pawan Department CWRD

Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

25 Nov 2014 10 Dec 2017Division PRM


127.00 Source OCR


N/A Source N/A


N/A


($ million)

N/A


Tranche Summary

ADB approved the National Trade Corridor Highway Investment Program - Tranche 3, not exceeding the aggregate amount of $127.00 million on 25 November 2014 including TA amounts (if any). Impact: efficiency gain for road traffic operation along the National Trade Corridor. Outcome: improved regional network for the movement of goods and people along E35 expressway. Outputs: Expressway connecting Sarai Saleh and Havelian constructed and operational. Implementation Arrangements: National Highway Authority is the Executing Agency. Implementation Status: Construction Contract Package III (Sarai Saleh to Havelian) with a road length of 19.1 km was awarded in November 2015 for a 4 lanes Expressway. Since April 2015, the SSMC assisted NHA/PIU in implementation and monitoring of LARPs and payments to DPs. About 50 officials of NHA have been trained by SSMC in better safeguard management including trouble shooting of project implementation issues



Minor Change 29 Apr 2016 On 25 April 2016, NHA requested for minor change in scope for Package-III (expanding pavements from 4-lane to a 6-lane motorway which was also approved by ADB on 29 April 2016. Variation Order No. 1 mainly consists of extra quantities related to the widening from 4 lane to 6 lanes motorway of $30 million (approximately) is under process.

Tranche Performance






72.26 100.00 46.97 100.00


Tranche 3 (Loan 3197) is a loan of USD 87.8 million from OCR, which was approved on 25 November 2014 and declared effective on 08 October 2015. Tranche 3 is rated as On Track. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 3 have reached $72.26 million (100.0%) and $46.97 million (100.0%), respectively. The overall physical progress of the project is 56% as against the planned progress of 48%. Scope Change: There was a minor scope change for this tranche in 2016. Undertaking and Covenants: The status of compliance with loan covenants is satisfactory. Out of total 39 covenants, 6 are complied, 30 are being complied, 2 are partly complied and 1 is not yet due.



FACILITY UPDATEProject Title MFF - Road Corridor Investment Program Project No. 41122-013Country/Regional

Georgia Department CWRD

Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

29 Sep 2009 29 Sep 2019 29 Sep 2019

Division CWTC


Source COLOCR


Source N/A

Facility Summary

ADB approved the MFF - Road Corridor Investment Program for an aggregate amount not exceeding $500.00 million from ADB’s ADF, OCR on 29 September 2009. Impact: The Investment Program will promote economic development and subregional trade, and accelerate subregional cooperation and integration. It will create better trade corridors to facilitate the cross border movement of people and cargo. Outcome: Improvement of subregional road network. Outputs: About 120 to 200 km of subregional roads improved Strengthening of asset management capacity of the Roads Department Improvement of Road Safety Significant Developments of the Facility: There were no significant developments of the facility including major changes to the roadmap, investment program, and policy and legal framework.


1


408.80




55


On Track

56

TRANCHE 1 UPDATETranche Title Road Corridor Investment Program - Tranche 1 Project No. 41122-023Country/Regional Georgia Loan/Grant

No.2560

Project Officer Kiziria, George Department CWRD

Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

6 Oct 2009 30 Jun 2014 31 Dec 2017Division GRM


118.80 Source COL


N/A Source N/A


140,000,000.00


($ million)

N/A


Tranche Summary

ADB approved the Road Corridor Investment Program - Tranche 1, not exceeding the aggregate amount of $118.80 million on 6 October 2009 including TA amounts (if any). Impact: Increase in subregional trade and tourism revenue Outcome: Improvement of the subregional road network Outputs: A 33.6 km two-lane bypass road detouring Kobuleti Strengthening of asset management capacity Improvement of road safety Implementation Arrangements: The executing agency is the Ministry of Regional Development and Infrastructure of Georgia (MRDI). The Roads Department (RD), an agency under MRDI, is the implementing agency. Implementation Status: All works in Lot 1 (about 15 km--km 0 to 12.4 and km 30 to 33) were completed in October 2014, and the road is open to traffic. The Engineer has issued the performance certificate in 2015 for Lot 1. Construction works for Lot 2 (km 12.4 to km 31.2) are ongoing. The last remaining land acquisition case is expected to be resolved by Q1 2017.



N/A N/A N/A






115.50 100.00 115.47 100.00


Tranche 1 (Loan 2560) is a loan of USD 118.80 million from ADF, which was approved on 6 October 2009 and declared effective on 1 December 2009. Tranche 1 is rated as On Track. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 1 have reached $115.50 million (100.0%) and $115.47 million (100.0%), respectively. Civil works under Lot 2 is about 78.08% completed as of 31 December 2016. Scope Change: There were no scope changes for this tranche in 2016. Undertaking and Covenants: Most covenants have been met. The rest are being monitored for compliance.


TRANCHE 3 UPDATE

Tranche Title Road Corridor Investment Program - Tranche 3 (Additional Financing)


Country/Regional Georgia Loan/Grant No.

2843

Project Officer Kalliokoski, Ari Department CWRD

Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

22 Dec 2011 31 Dec 2015 31 Dec 2017Division CWTC


140.00 Source OCR


N/A Source N/A


N/A


($ million)

N/A



Tranche Summary

ADB approved the Road Corridor Investment Program - Tranche 3 (Additional Financing), not exceeding the aggregate amount of $140.00 million on 22 December 2011 including TA amounts (if any). Impact: Increase in subregional trade and tourism revenues Outcome: Improvement of the subregional road network Outputs: A 33.6 km two-lane bypass road detouring Kobuleti Strengthening of asset management capacity Improvement of road safety Detailed design of Kharagauli-Chumateleti road Feasibility study, detailed engineering design, and safeguard works for Batumi Bypass-Sarpi section (E-70 road) Detailed design and safeguard works for Khevi-Argveta section (E-60 highway) Feasibility study, detailed design, and safeguard works for Tbilisi Bypass road Implementation Arrangements: The executing agency is the Ministry of Regional Development and Infrastructure of Georgia (MRDI). The Roads Department (RD), an agency under MRDI, is the implementing agency. Implementation Status: Construction works for Lot 2 (km 12.4 to km 31.2) are ongoing. The last remaining land acquisition case is expected to be resolved by Q1 2017. Recruitment of consultants to carry out the feasibility studies and detailed design of proposed road projects are ongoing.


Minor Change 07 Apr 2016 To carry out: (a) detailed design and safeguard works for sections F2, F3, and F4 (42 km of Khevi-Argveta) of E-60 highway; (b) feasibility study, detailed design, and safeguard works for the Tbilisi Bypass road for an approximate 55 km alignment to the east of the city, linking with roads leading to border crossing points with Armenia and Azerbaijan); (c) changes in costs for construction supervision; and (d) project management support.







57.38 93.80 40.18 96.20


Tranche 3 (Loan 2843) is a loan of USD 140.00 million from OCR, which was approved on 22 December 2011 and declared effective on 13 June 2012. Tranche 3 is rated as On Track. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 3 have reached $57.38 million (93.8%) and $40.18 million (96.2%), respectively. Civil works under Lot 2 is about 78.08% completed as of 31 December 2016. Scope Change: There was a minor scope change for this tranche in 2016. Undertaking and Covenants: Some covenants have been met. The rest are not yet due.



FACILITY UPDATEProject Title Energy Efficiency Investment Program Project No. 42051-013Country/Regional


Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

17 Sep 2009 16 Sep 2019

Division CWEN


Source COLOCR


Source N/A

Facility Summary

ADB approved the Energy Efficiency Investment Program for an aggregate amount not exceeding $780.00 million from ADB’s ADF, OCR on 17 September 2009. Impact: Improved energy security in Pakistan Outcome: Energy efficiency promoted in Pakistan Outputs: Energy efficient lights and appliances introduced in the market Power generation losses (thermal) reduced Significant Developments of the Facility: There were no significant developments for the facility, including major changes to the roadmap, investment program, and policy and legal frameworks.


2


60.00





On Track

62

TRANCHE 1 UPDATETranche Title Energy Efficiency Investment Program - Tranche 1 Project No. 42051-023Country/Regional Pakistan Loan/Grant

No.2552, 2553,

8246Project Officer Inoue, Yuki Department CWRD

Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

22 Sep 2009 31 Mar 2017 30 Jun 2014Division CWEN


60.00 Source COLOCR


N/A Source N/A


20.45


($ million)

N/A


Tranche Summary

ADB approved the Energy Efficiency Investment Program - Tranche 1, not exceeding the aggregate amount of $60.00 million on 22 September 2009 including TA amounts (if any). Impact: Energy efficiency promoted in Pakistan Outcome: Inefficient, substandard incandescent bulbs phased out of the market Outputs: CFLs introduced in the local market Increased consumer awareness on energy efficient lighting products Lamp waste collection and recycling demonstration facility established Energy efficiency and climate change mainstreamed in national development strategy Implementation Arrangements: L2552/8246-National CFL Project: The Ministry of Water and Power (MoWP) was the executing agency, and the 9 distribution utilities were the implementation agencies responsible for CFL distribution under Loan 2552/8246. The Pakistan Electric Power Company (PEPCO) was the procurement agency for all contracts, and acted as the project management agency on MoWP's behalf. L2553-Investment Program Management Support Project: The executing agency was changed from the Planning Commission of Pakistan to the Ministry of Water and Power (MoWP). The Program Management Office (PMO) will be set up in MoWP. Implementation Status: Loans 2552 and 8246 were financially closed on 5 May and 1 June 2015, respectively.



N/A N/A N/A






44.86 100.00 44.37 100.00


Tranche 1 comprises Loans 2552, 2553, and 8246 totaling $75.00 million from OCR, ADF, and Agence Fran aise de D veloppement. Loans 2552 and 2553 were approved on 22 September 2009, and declared effective on 30 August 2010. Loan 8246 was approved on 30 September 2009, and declared effective on 9 July 2010. Tranche 1 is rated as On Track. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 1 have reached $44.86 million (100.0%) and $44.37 million (100.0%), respectively. National CFL Project (Loan 2552/8246): Loans 2552 and 8246 were financially closed on 5 May and 1 June 2015, respectively. All 30 million CFLs were shipped to Pakistan between August and December 2013, and delivered to the stores designated by the distribution companies between August 2013 and February 2014. L2553-Investment Program Management Support Project: Through letters and missions, ADB urged MoWP to fully establish the PMO so that procurement for the lamp waste management facility and other planned contracts to be financed under L2553 could start. In May 2016, the Government requested recruiting an energy efficiency expert under L2553 to assist in setting up the PMO, planning for the facility support component, and procuring the lamp waste management facility. The consultant will be engaged in Q1 2017. Loan extension will then be considered. Scope Change: There were no scope changes for this tranche in 2016. Undertaking and Covenants: Of 27 key covenants, 11 complied; 9 ongoing throughout MFF implementation; and 7 not complied on (i) submission of acceptable audited project financial statements for Loan 2552, (ii) opening of imprest account for Loan 2553, (iii) establishing a PMO, (iv) CFL distribution to households, (v) establishing a project performance monitoring system, (vi) submitting progress reports for the Program Management Support Project, and (vii) submitting a project completion report for National CFL Project.



FACILITY UPDATEProject Title MFF- Water Resources Development Investment

Program (Facility Concept)Project No. 42091-022

Country/Regional

Afghanistan Department CWRD

Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

20 Dec 2005 22 Sep 2019 30 Jun 2018

Division CWER


Source ADF


Source N/A

Facility Summary

ADB approved the MFF- Water Resources Development Investment Program (Facility Concept) for an aggregate amount not exceeding $300.00 million from ADB’s ADF on 20 December 2005. Impact: Agriculture production in Afghanistan improved. Outcome: Water resources management in Afghanistan is improved Outputs: Irrigation infrastructure upgraded and rehabilitated Land along the river banks protected from flood/ erosion. Basin master plan prepared Tranches are processed and implemented on time and within the budget. Water management institutions improved Significant Developments of the Facility: There are no significant developments of the facility including major changes to the roadmap, investment program, and policy and legal framework.


-


186.60




65


On Track

66

TRANCHE 1 UPDATE

Tranche Title Water Resources Development Investment Program - Project 1


Country/Regional Afghanistan Loan/Grant No.

0167, 0170

Project Officer Ayubi, Mohammad Hanif Department CWRD

Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

6 Oct 2009 30 Jun 2015 30 Jun 2018Division CWER


86.60 Source ADF


N/A Source N/A


N/A


($ million)

N/A


Tranche Summary

ADB approved the Water Resources Development Investment Program - Project 1, not exceeding the aggregate amount of $86.60 million on 6 October 2009 including TA amounts (if any). Impact: Agricultural production increased in Balkh, Jazawan, Nangarhar, Kunduz and Takhar provinces. Outcome: Improved water resources management. Outputs: Improved northern Basin irrigation system delivers reliable irrigation supplies. Irrigated lands are protected from flood events Institutional Strengthening Capacity development and training Project Management Implementation Arrangements: The executing agency is the Ministry of Finance (MOF) while the implementing agencies (IAs) are the Ministry of Energy and Water (MEW), and Ministry of Agriculture, Irrigation and Livestock (MAIL). Implementation Status: 207 structures in the northern basins out of the 250 structures were completed. The rehabilitation of NVDA main, secondary and tertiary canals ICB contract was awarded on 3 February 2015. ICB contracts for both Yatem Tapa bank protection and Bangala weir is 65% completed. A contract variation to increase the cost is being processed and the works will be completed by end 2017.



N/A N/A N/A






83.46 100.00 56.76 100.00


Tranche (Loan/Grant 0167) is a loan/grant of USD 89.90 million from ADF, which was approved on 06 OCTOBER 2009 and declared effective on 08 JANUARY 2010. Tranche is rated as On Track. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 1 have reached $83.46 million (100.0%) and $56.76 million (100.0%), respectively. As of 31 December 2016 cumulative contracts awarded is $83.5 million (93% achieved) while disbursements is $56.8 million (63% achieved) Scope Change: There were no scope changes in the Tranche 2016. Undertaking and Covenants: Almost all the covenants have been complied with.


TRANCHE 2 UPDATE

Tranche Title Water Resources Development Investment Program - Project 2



0362

Project Officer Woldring, Hans Siewert Department CWRD

Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

8 Oct 2013Division CWER


100.00 Source ADF


N/A Source N/A


N/A


($ million)

N/A


Tranche Summary

ADB approved the Water Resources Development Investment Program - Project 2, not exceeding the aggregate amount of $100.00 million on 8 October 2013 including TA amounts (if any). Impact: Increased agricultural production in Kunduz and Takhar provinces in northern Afghanistan Outcome: Improved water resources management in the Lower Kokcha Irrigation System Outputs: 1. The Shahrawan and Archi main canals deliver reliable irrigation supplies 2. Improved capacity of water management and agricultural extension institutions 3. The project is implemented on time and within the budget Implementation Arrangements: Ministry of Finance is the executing agency. Ministry of energy and Water and Ministry of Agriculture, Irrigation and Livestock are the implementing agencies. Implementation Status: Project implementation office (PIO) in Kunduz has been established and staffed. ADB provided its no objection the MEW on the award of contract for Rehabilitation and upgrading of Lower Kokcha Irrigation on 7 July 2016. Negotiations collapsed and the bid will be repackaged.


N/A N/A N/A


Tranche Performance






0.34 0.48 0.43 5.90


Tranche (Loan/Grant 0362) is a loan/grant of USD 103.39 million from ADF, which was approved on 08 OCTOBER 2013 and declared effective on 30 JULY 2014. Tranche is rated as Actual Problem. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 2 have reached $.34 million (.5%) and $.43 million (5.9%), respectively. The main civil works package with estimated amount of $71 million will be repackaged. Scope Change: There is no scope change in 2016. Undertaking and Covenants: All of the 24 grant covenants detailed in the grant agreement are being complied with, as the project activities are still to start. Most of them will be complied with in 2016, however due to the failure in negotiations in the main package EA will go for repackaging and rebidding.



FACILITY UPDATEProject Title MFF - Energy Sector Development Investment Program


Country/Regional


Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

28 Nov 2008 30 Jun 2017 28 Nov 2018

Division CWEN


Source ADF


Source N/A

Facility Summary

ADB approved the MFF - Energy Sector Development Investment Program (Facility Concept) for an aggregate amount not exceeding $570.00 million from ADB’s ADF on 28 November 2008. Impact: Secure and stable energy supplies for Afghanistan Outcome: Sustainable and reliable grid connected power supply in north, east and south Afghanistan Outputs: Generation capacity from hydro sources and gas wells increased Transmission network upgraded in project areas through rehabilitation, augmentation and expansion of NEPS Development of power distribution systems at load centers supplied from NEPS Technical, managerial, financial and institutional functions of DABS achieves requisite autonomy and corporatization Project Management: Projects designed, implemented and monitored within cost, time and quality parameters Significant Developments of the Facility: The MFF closing date was extended to 28 November 2018. Other than this, there were no significant developments of the facility including changes to the road map, investment program, and policy legal frame work.


-


537.60



71



On Track

72

TRANCHE 1 UPDATE

Tranche Title MFF - Energy Sector Development Investment Program - Tranche 1



0134

Project Officer Aleem, Asad Department CWRD

Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

2 Dec 2008 30 Jun 2014 30 Jun 2018Division CWEN


164.00 Source ADF


N/A Source N/A


N/A


($ million)

N/A



Tranche Summary

ADB approved the MFF - Energy Sector Development Investment Program - Tranche 1, not exceeding the aggregate amount of $164.00 million on 2 December 2008 including TA amounts (if any). Impact: Sustainable and reliable grid connected power supply in north east Afghanistan. Outcome: Stable power supplies in Taluqan, Kunduz and Baghlan and additional gas production at Sheberghan. Outputs: Rehabilitation of 8-12 gas wells in Sheberghan Evacuation of power in NEPS area through Kunduz Taloqan transmission line Development of distribution systems in Kunduz and Baghlan load centers Stabilization of NEPS operations and maintenance (O&M) system instituted for efficient functioning of grid. Improvement of DABS operations and management capacities Implementation Arrangements: Da Afghanistan Breshna Sherkat (Afghan Power Utility) and Ministry of Mines and Petroleum are the Implementation Agencies while Ministry of Finance is the Executive Agency. Implementation Status: The tranche comprises of the following sub-projects which are on-going: (i) NEPS distribution network in Kunduz and Baghlan -- $51.3 million - development and rehabilitation of 20kv and low voltage networks for 45,000 households in Kunduz and Baghlan cities. Delivery of material/equipment 85% has been achieved and completed (65% target achieved). (ii) NEPS 220kv system operation and maintenance (O&M) emergency equipment -- $14.6 million - Consulting services to assist the operation and maintenance of the newly constructed 220kv NEPS. Two contracts (Lot 1 and 3) awarded and one (Lot 2) may go for rebidding (80% progress achieved). (iii) Project management and implementation for tranche I & II -- $21.7 million - Consulting services to assist the management of projects in DABS. (Ongoing). (iv) Future sub-projects' preparation consultant - $5.1 million. Ongoing. (85% Progress achieved and ongoing). (v) NEPS 220kV transmission system O&M Supply Contract -- $14.3 million. Ongoing (95% Completed). (vi) Chimtala 220kV switchyard extension & expansion of 220/110kV substation contract -- $9.5 Ongoing (15% Completed). The Following sub-projects are completed:- (i) NEPS 220kv transmission line (Kunduz - Taluqan) -- $27.8 million - construction of a 67km double circuit 220kv transmission line linking Taluqan to Kunduz. (Completed and Commissioned in 2013). (ii) Rehabilitation of Shiberghan gas wells -- $21.8 million - rehabilitation of dilapidated gas wells in Sheberghan to enable extraction of domestic gas to power future gas fired power generation in Jawzjan province. First phase completed and commissioned in 2014 (100% progress achieved). (iii) Implementation supervision Gas wells rehabilitation and capacity building of Ministry of Mines -- $1.3 million - design and supervision consultancy. Cancelled due to poor performance (Completed). (iv) Individual consultants -- $0.5 million (Completed).


N/A N/A N/A







143.32 100.00 108.70 100.00


Tranche 1(Loan/Grant 0134) is a loan/grant of USD 164.00 million from ADF, which was approved on 02 DECEMBER 2008 and declared effective on 26 MAY 2009. Tranche 1 is rated as On Track. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 1 have reached $143.32 million (100.0%) and $108.70 million (100.0%), respectively. The distribution networks contract in Kunduz and Baghlan (EPC) had very low disbursement due to the weak performance of the Contractor, as well as security challenges. The project is behind schedule but is still expected to be completed by June 2017. The physical work on 8 gas wells (first phase) has been completed and the government has requested ADB for the rehabilitation of two additional wells in Sheberghan area part of the second phase and the bidding process has been completed. The contract is expected to be signed in January 2017. The contract for Lot 1 and 3 for O&M Emergency Equipment for 220kV NEPS Line were awarded in mid-2014. However, Lot 2 was recommended for rebidding. The Project management and implementation for Tranches 1 & 2 was awarded to SMEC International and is on-going. Future sub-projects preparation ($5.1 million) awarded to Fichtner is still on-going. Scope Change: There were no scope changes for this tranche in 2016. Undertaking and Covenants: There are 11 undertakings and 39 covenants for Tranche 1. For undertakings, 11 are being complied with. For covenants, 32 have been complied with and 7 are not yet due.


TRANCHE 2 UPDATE

Tranche Title MFF - Energy Sector Development Investment Program - Tranche 2



0184


Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

3 Dec 2009 30 Jun 2014 30 Jun 2018Division CWEN


81.50 Source ADF


N/A Source N/A


N/A


($ million)

N/A



Tranche Summary

ADB approved the MFF - Energy Sector Development Investment Program - Tranche 2, not exceeding the aggregate amount of $81.50 million on 3 December 2009 including TA amounts (if any). Impact: Sustainable and reliable grid connected power supply in Kabul. Outcome: Expanded power sector services and stable power supplies in Kabul Outputs: Transmission coverage expanded from Chimtala to South West Kabul Kabul Distribution Network in Darchi-e-Bashi (South West Kabul) developed Improved system planning and project management capacities in DABS Implementation Arrangements: The tranche comprises of following sub-projects: (i) Supply of 100 distribution transformers for Kabul city network. (ii) Construction of 30KM 220kV Transmission Line from South West Kabul to Chimtal Substation, (iii) The construction of distribution network in South West Kabul, (iv) Construction of 220/20kV Arghundi substation. The Ministry of Finance is the executing agency while the Da Afghanistan Breshna Sherkat (Afghan Power Utility) is the implementing agency. Implementation Status: The tranche comprises of the following sub-projects: (i) Supply of 100 distribution transformers for Kabul city network. (100%Completed) (ii) Construction of 30KM 220-kV Transmission Line from South West Kabul to Chimtala Substation was awarded to KEC International in June 2013 and construction works are expected to be completed by end Q1 2017. (99% Completed) (iii) The Contract was awarded to FEKA (Turkey) on 7 October 2013. The project completion is on target and Project is expected to be completed by mid-2017. (90% Completed) (iv) The EPC contract for construction of 220/20kV Arghundi substation to Siemens. DABS has committed to provide required co-financing to cover the shortfall. Due to cost overruns in the 3 physical subprojects under the tranche, DABS requested ADB to cancel remaining sub-projects (i) DABS senior management assistance, and (ii) support for distribution planning and revolving fund, as these jobs have now been funded by the United States Government (USAID). ADB financed consultants SMEC International, are working closely with DABS to design, implement and supervise sub-projects under tranches 1 (G-0134), and T2 (G-0184). Meanwhile, USAID, ADB and WB have parallel programs complementing efforts towards capacity building and institutional strengthening of DABS in particular and energy sector in general.


N/A N/A N/A







80.85 100.00 63.22 100.00


Tranche 2(Loan/Grant 0184) is a loan/grant of USD 81.50 million from ADF, which was approved on 03 DECEMBER 2009 and declared effective on 22 FEBRUARY 2010. Tranche 2 is rated as On Track. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 2 have reached $80.85 million (100.0%) and $63.22 million (100.0%), respectively. The construction of 30Km 220kV Transmission Line from SW Kabul to Chimtala Substation is ongoing and is expected to be completed by Q1 2017. The design works for the construction of the power distribution network in SW Kabul (40,000 connections) commenced in March 2014, with construction/installation expected to be completed by mid-2017. The EPC contract for the construction of the 220/20kV SW Kabul (Arghundi) substation was awarded to Siemens Pakistan in 2015, with physical works expected to be completed by Q4 2017. Scope Change: There were no scope changes for this tranche in 2016. Undertaking and Covenants: There are 10 undertakings and 22 covenants for Tranche 2. For undertakings, 10 are being complied with. For covenants, 21 have been complied with and 1 are not yet due


TRANCHE 3 UPDATE

Tranche Title Energy Sector Development Investment Program - Tranche 3



0280, 0281, 0282


Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

22 Dec 2011 31 Mar 2015 30 Jun 2018Division CWEN


43.00 Source ADF


N/A Source N/A


N/A


($ million)

N/A



Tranche Summary

ADB approved the Energy Sector Development Investment Program - Tranche 3, not exceeding the aggregate amount of $43.00 million on 22 December 2011 including TA amounts (if any). Impact: Better power supply in areas south of Kabul Outcome: Increase in hydropower generation capacity in Gereshk Outputs: 1. Gereshk power supply system rehabilitated and improved 2. End-user connections increased with improved distribution facilities 3. DABS' operational capacity increased Implementation Arrangements: The tranche comprises of following sub-projects: (i) rehabilitation and upgrading of hydropower plant with 4.8 MW installation capacity; contract was awarded to AIPL/Huna JV, (ii) replacement of 10 km of 3.3 kV distribution lines to 20 kV line; and (iii) replacement and new installation of end-user meters. The Ministry of Finance is the executing agency while the Da Afghanistan Breshna Sherkat (Afghan Power Utility) is the implementing agency. Implementation Status: The rehabilitation and upgrading of the hydropower plant with 4.8 MW installation capacity, and the rehabilitation of canal bans and canal side roads were slow, with 90% of works completed (including survey, design and shipment of HM/EM equipment). This was due to the (i) weak performance of the contractor, (ii) replacement of the consultant, and (iii) bad security circumstances at site. There was a failure in bidding for the supply of equipment for the rehabilitation distribution network and replacement of 10 km of 3.3 kV distribution lines to 20 kV line. The BER was submitted to ADB in December 2016 and contract award is expected by early February 2017. The construction of the distribution network will be done in parallel with rehabilitation of generation facilities and will be completed by Q1 2018.


N/A N/A N/A







53.07 100.00 35.82 100.00


Tranche 3(Loan/Grant 0280) is a loan/grant of USD 43.00 million from ADF, which was approved on 22 DECEMBER 2011 and declared effective on 20 MARCH 2012. Tranche 3 is rated as On Track. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 3 have reached $53.07 million (100.0%) and $35.82 million (100.0%), respectively. The physical progress has been very slow due to the following: (i) late effectiveness of the contract; (ii) weak performance of contractor; (iii) replacement of the consultant; and, (iv) bad security circumstances at the site. Only 90% has been completed which includes survey, design and shipment of HM/EM equipment, with the completion of the project expected by Q4 2017 as per the revised schedule and action plans of the contractor. There was a bidding failure for the component of goods supply for the rehabilitation of the distribution network, with rebidding taking place in 2016 and contract award is expected by early February 2017. The construction of the distribution network will be done in parallel with the rehabilitation of the generation facilities by Q1 2018. The nonphysical component will enhance DABS project implementation, as well as operation and maintenance capacities. DABS operational staff received on-the-job training by ADB financed consultants from SMEC, Hill International and contractors working on distribution rehabilitation projects (KEC, FEKA). The Tranche closing date was extended from 31 December 2016 till through 30 June 2018 and after extension of the tranche, the revised target is achievable by Q1 2018. Scope Change: There were no scope changes for this tranche in 2016. Undertaking and Covenants: There are 14 undertakings and 33 covenants for Tranche 3. For undertakings, 14 are being complied with and for covenants, 29 are being complied with and 4 are not yet due.


TRANCHE 4 UPDATE




0332


Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

18 Dec 2012 30 Jun 2017 28 Nov 2018Division CWEN


200.00 Source ADF


N/A Source N/A


N/A


($ million)

N/A



Tranche Summary

ADB approved the Energy Sector Development Investment Program - Tranche 4, not exceeding the aggregate amount of $200.00 million on 18 December 2012 including TA amounts (if any). Impact: Increased regional power trade and energy supplies in Afghanistan Outcome: Reliable power supplies to all grid connected customers Outputs: Commissioning of 108 kms 500 kV transmission line from AFG/TKM border to Andkhoy to Sheberghan Commissioning of 142 kms 220 line from Sheberghan to Mazar-e-Sharif Commissioning of 220/20 kV substations at Andkhoy and Sheberghan and expansion of 220 kV substation at Mazar-e- Sharif Commissioning of 13,000 new power connections at Pul-e-Alam, 13,000 new power connections in Gardez city, Wazay Zadran (5,000 connections), and Khost (13,000 connections) Implementation Arrangements: The Tranche comprise of below sub-projects: (i) 500kV Transmission Line (100 kms approx) from AFG/TKM border to Sheberghan and 220kV Transmission Line (142 kms approx) between Sheberghan and Mazar Sharif - ICB Turnkey, (ii) 220/20 kV substations at Andkhoy and Sheberghan and expansion of 220kv substation at Mazar Sharif - ICB Turnkey, (iii) 220/20 kv Distribution Networks at Pul-e-Alam (10,000 connections approx) and Gardez (10,000 connections approx) along with installation of transformers and ancillary equipment at Pul-e-Alam and Gardez substations (220/20kv) - ICB Turnkey. The Ministry of Finance is the executing agency while the Da Afghanistan Breshna Sherkat (Afghan Power Utility) is the implementing agency. Implementation Status: The tranche comprises of the following sub-projects which are still going on: (i) 500kV Transmission Line AFG/TKM border to Sheberghan and 220kV Transmission Line from Sheberghan to and Mazar Sharif. The project progress is on track (12% target achieved) (ii) 220/20 kV substations at Andkhoy and Sheberghan and expansion of 220kv substation at Mazar Sharif The project progress is on track (15% target achieved) (ii) Program Management and Implementation Consultant. (On-going) Procurement is underway for the following project components: (i) The 220/20 kv Distribution Networks at Pul-e-Alam and Gardez contract to be signed in January 2017.


N/A N/A N/A







97.63 66.14 14.93 72.12


Tranche 4(Loan/Grant 0332) is a loan/grant of USD 200.00 million from ADF, which was approved on 18 DECEMBER 2012 and declared effective on 05 JUNE 2013. Tranche 4 is rated as Actual Problem. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 4 have reached $97.63 million (66.1%) and $14.93 million (72.1%), respectively. Two EPC contract (Transmission and Substation) and the Implementation Consultant have been awarded. Overall progress for transmission line works is about 12% and about 15% on the substation work. A notification of contract award has been issued to the EPC contract for distribution package. Contract signing is expected before end of January 2017. Scope Change: There were no scope changes for this tranche in 2016. Undertaking and Covenants: There are 27 covenants for Tranche 4, 12 have been complied, 11 are being complied with, 4 are not yet due.


TRANCHE 5 UPDATE




0377


Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

4 Dec 2013 30 Jun 2017 28 Nov 2018Division CWEN


49.10 Source ADF


N/A Source N/A


N/A


($ million)

N/A


Tranche Summary

ADB approved the Energy Sector Development Investment Program - Tranche 5, not exceeding the aggregate amount of $49.10 million on 4 December 2013 including TA amounts (if any). Impact: Better and cost-effective power supply to all customers Outcome: Sustainable power supply in northern, eastern and southern Afghanistan Outputs: Commissioning of a 500-kV substation at Dashte Alwan Implementation Arrangements: The tranche comprises of project covers the construction of new 500kV substation in Dashte Alwan near Pule Khumri. Da Afghanistan Breshna Sherkat (Afghan Power Utility) is the Implementing Agency while Ministry of Finance is the Executing Agency. Implementation Status: The supervision consultant was mobilized in August 2016 and their work is on-going. The procurement of plant design, supply, and installation of the 500 kV/220 kV substation at Dasht-e-Alwan (Pul-e-Khumri) has been completed, with contractor mobilized in Q2 2016.


N/A N/A N/A







49.10 100.00 7.89 100.00


Tranche 5(Loan/Grant 0377) is a loan/grant of USD 49.10 million from ADF, which was approved on 04 DECEMBER 2013 and declared effective on 10 MARCH 2014. Tranche 5 is rated as On Track. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 5 have reached $49.10 million (100.0%) and $7.89 million (100.0%), respectively. The Supervision Consultant has been mobilized in August 2016. The procurement of plant design, supply, and installation of the 500 kV/220 kV substation at Dasht-e-Alwan (Pul-e-Khumri) has been completed and mobilized by mid-2016 (15% target achieved). Scope Change: There were no scope changes for this tranche in 2016. Undertaking and Covenants: There are 14 undertakings and 48 covenants for Tranche 5. For undertakings, 14 are being complied with and for Covenants, 40 are being complied and 8 are not yet due.



FACILITY UPDATEProject Title MFF - Road Network Development Investment Program


Country/Regional


Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

28 Nov 2008 31 Dec 2017 27 Nov 2018

Division CWTC


Source ADF


Source AITF

Facility Summary

ADB approved the MFF - Road Network Development Investment Program (Facility Concept) for an aggregate amount not exceeding $400.00 million from ADB’s ADF on 28 November 2008. Impact: Reduced economic disparity among provinces. Outcome: Increased efficiency of goods and passenger transport Outputs: The Program will comprise separate sequential Projects between 2008 and 2013, with one or more physical and non-physical components. These components will include: (i) feasibility studies and designs; (ii) infrstructure improvements; (iii) ancillary and emergency infrastructure works; (iv) infrstructure maintenance; and (v) human resource development and institutional reform. Significant Developments of the Facility: There was a minor scope change for the facility in 2016.


-


370.00


Category Date Proposed ChangeMinor Change 12 Dec 2016 Extended the availability period from 31

December 2017 to 27 November 2018 bringing it to the maximum utilization period of 10 years from its approval on 28 November 2008.


87



On Track

88

TRANCHE 2 UPDATE

Tranche Title Road Network Development Investment Program - Tranche 2



0244, 0291

Project Officer Tawisook, Witoon Department CWRD

Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

21 Dec 2010 31 Dec 2016 27 Nov 2018Division AFRM


310.00 Source ADF


N/A Source N/A


N/A


($ million)

N/A



Tranche Summary

ADB approved the Road Network Development Investment Program - Tranche 2, not exceeding the aggregate amount of $310.00 million on 21 December 2010 including TA amounts (if any). Impact: Increased national trade in, and transit trade through, Afghanistan. Outcome: An efficient, safe, reliable, road network developed in western Afghanistan. Outputs: 1. The Qaisar-Bala Murghab-Laman section of the ring road constructed and reconstructed with quality and within budget. 2. Provision of basic infrastructure needs for about 100 local communities. Implementation Arrangements: The Ministry of Public Works (MPW) is the Executing Agency. A program management office (PMO) has been established and manages project implementation within ADB guidelines. Implementation Status: Tranche 2 is one of the four grants funding the reconstruction of a total of 233 km (comprising six sections) of the national Ring Road from Qaisar to Leman and to provide basic infrastructure needs to approximately 100 communities along the road's alignment. Civil works and consultant supervision contracts have been awarded in 2011 but implementation encountered a contractual dispute with MPW. The works were suspended in July 2014 and the contractor eventually issued notice of intention to terminate and subsequently issued a notice of termination on September 2014. On 13 March 2015, the Dispute Board ruled that the contractor' s termination of the contract was valid and hence the contract was officially terminated on 11 August 2014. Under the strategy to restart the uncompleted Section 1 and 2 works, the contracts will undergo rebidding. As of December 2016, bidding documents were being finalized. Sections 3-6, of which the work has not been started, would be repackaged and retendered after the detailed design is completed.


Minor Change 12 Dec 2016 Extension of grant closing date of Tranche 2 (Grant 0244) from 31 December 2016 to 27 November 2018 to align with the MFF availability period.







119.51 38.55 119.51 100.00


Tranche (Grant 0244) is a grant of USD 310.00 million from ADF, which was approved on 21 December 2010 and declared effective on 12 September 2011. Tranche is rated as Potential Problem. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 2 have reached $119.51 million (38.6%) and $119.51 million (100.0%), respectively. The civil works contracts for Sections 1 and 2 will likely be awarded no earlier than May 2017. MPW plans to award subsequent contracts for sections 3-6 on a progressive basis during 2017. Scope Change: There was a minor scope change for this tranche in 2016. Undertaking and Covenants: All undertakings and covenants are being complied with during the implementation of the project.



FACILITY UPDATEProject Title MFF - Central Asia Regional Economic Cooperation

Corridor 2 Road Investment ProgramProject No. 42107-013

Country/Regional

Uzbekistan Department CWRD

Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

20 Apr 2010 30 Apr 2016 31 Dec 2017

Division CWTC


Source COLOCR


Source N/A

Facility Summary

ADB approved the MFF - Central Asia Regional Economic Cooperation Corridor 2 Road Investment Program for an aggregate amount not exceeding $600.00 million from ADB’s ADF, OCR on 20 April 2010. Impact: Sustainable economic development Outcome: Better connectivity and an efficient transport system along the Uzbekistan section of CAREC Corridor 2 Road Outputs: 1. Uzbekistan section of CAREC Corridor 2 road constructed 2. Cross-border facility operational 3. Road sector sustainability strategy and plans adopted by the Road Fund Significant Developments of the Facility: There were no significant developments of the facility including major changes to the roadmap, investment program, and policy and legal framework.


-


455.00





On Track

92

TRANCHE 2 UPDATE

Tranche Title CAREC Corridor 2 Road Investment Program - Tranche 2


Country/Regional Uzbekistan Loan/Grant No.

2746

Project Officer Luu, Khuong Department CWRD

Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

31 Mar 2011 30 Jun 2014 31 Mar 2017Division URM


240.00 Source OCR


N/A Source N/A


N/A


($ million)

N/A


Tranche Summary

ADB approved the CAREC Corridor 2 Road Investment Program - Tranche 2, not exceeding the aggregate amount of $240.00 million on 31 March 2011 including TA amounts (if any). Impact: Better connectivity and an efficient transport system along Uzbekistan section of CAREC Corridor 2 Road Outcome: Reconstructed A380 highway section with improved travel time and effectively operated and maintained Outputs: Uzbekistan section of CAREC Corridor 2 road constructed Road sector sustainability plans adopted by the Road Fund Implementation Arrangements: The Republican Road Fund under the Ministry of Finance is the executing agency (EA) while the program management unit (PMU) set up within the EA is the implementing agency. Implementation Status: The loan is ongoing and is expected to be completed by the current closing date of 31 March 2017.


N/A N/A N/A


Tranche Performance






191.42 100.00 159.53 100.00


Tranche 2 (Loan 2746) is a loan of USD 240.00 million from OCR, which was approved on 31 March 2011 and declared effective on 06 May 2011. Tranche 2 is rated as On Track. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 2 have reached $191.42 million (100.0%) and $159.53 million (100.0%), respectively. All contracts have been completed except the civil works, project management and construction supervision, and independent audit services contracts. The civil works contractor substantially completed all major physical works and the taking-over certificate inspection was conducted on 22 November 2016. The remaining works including 12 km of shoulder fill, minor pavement markings and installation of road signs were completed in December 2016. The project management and construction supervision consultant contract is planned to be extended until the loan closing date of 31 March 2017 to accommodate other project closeout activities such as reviewing as-built drawings, finalizing project completion report, finalizing safeguard reports, and participating in the project acceptance process. Scope Change: There were no scope changes for this tranche in 2016. Undertaking and Covenants: Of the 20 covenants under Tranche 2, six are complied with, and 14 are being complied with.


TRANCHE 3 UPDATE

Tranche Title CAREC Corridor 2 Road Investment Program - Tranche 3



2868


Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

5 Jun 2012 30 Jun 2015 30 Jun 2017Division URM


100.00 Source COL


N/A Source N/A


N/A


($ million)

N/A


Tranche Summary

ADB approved the CAREC Corridor 2 Road Investment Program - Tranche 3, not exceeding the aggregate amount of $100.00 million on 5 June 2012 including TA amounts (if any). Impact: Better connectivity and an efficient transport system along Uzbekistan section of CAREC Corridor 2 Road Outcome: Reconstructed A380 highway section and cross border facilities with improved travel time and efficiency Outputs: Uzbekistan section of CAREC Corridor 2 road reconstructed Border infrastructure at Daut-Ata Border Crossing Point improved Community development Implementation Arrangements: The Republican Road Fund under the Ministry of Finance is the executing agency (EA) while the program management unit (PMU) set up within the EA is the implementing agency. Implementation Status: The loan is ongoing and is expected to be completed by the current closing date of 30 June 2017.



N/A N/A N/A






70.77 77.36 58.60 95.12


Tranche 3 (Loan 2868) is a loan of USD 100.00 million from ADF, which was approved on 05 June 2012 and declared effective on 09 November 2012. Tranche 3 is rated as On Track. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 3 have reached $70.77 million (77.4%) and $58.60 million (95.1%), respectively. All contracts have been completed except the civil works, project management and construction supervision, and independent audit services contract. The civil works contractor substantially completed all major physical works and the taking-over certificate inspection was conducted in December 2016. The project management and construction supervision consultant contract is planned to be extended until 31 March 2017 or before the loan closing date of 30 June 2017 to accommodate other project closeout activities such as reviewing as-built drawings, drafting and finalizing project completion report, finalizing safeguard reports, and participating in the project acceptance process. Scope Change: There were no scope changes for this tranche in 2016. Undertaking and Covenants: Of the 19 covenants, two are complied with, 14 are being complied with, two will be complied with, and one is not applicable.



FACILITY UPDATEProject Title North-South Road Corridor Investment Program Project No. 42145-013Country/Regional

Armenia Department CWRD

Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

29 Sep 2009 31 Dec 2017

Division CWTC


Source COLOCR


Source CNIFEIB

Facility Summary

ADB approved the North-South Road Corridor Investment Program for an aggregate amount not exceeding $500.00 million from ADB’s ADF, OCR on 29 September 2009. Impact: Increased subregional trade and accelerated economic development in Armenia Outcome: Efficient, safe, and sustainable transport on the north-south road corridor Outputs: 550 km north- south road corridor improved Border and customs facilities modernized and a cross-border agreement with Georgia in place Road subsector plan implemented Road subsector management and institutional capacities improved Road safety improved Significant Developments of the Facility: There was a minor scope change for the facility in 2016.


2


330.00


Category Date Proposed ChangeMinor Change 09 Aug 2016 Extend the MFF availability period by

about 21 months from 31 December 2017 to 14 September 2019. While ADB already approved the extension, the Armenia government is still in the process of ratifying the letter agreement indicating the revised availability period, which will

97

Category Date Proposed Changeonly take effect on the date of receipt by ADB of a signed original of the letter agreement together with the government's notification on the fulfillment of all legal procedures necessary for its entry into force.



On Track

98

TRANCHE 1 UPDATE

Tranche Title North-South Road Corridor Investment Program - Tranche 1


Country/Regional Armenia Loan/Grant No.

2561

Project Officer Herz, Thomas Department CWRD

Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

6 Oct 2009 30 Jun 2014 30 Jun 2017Division CWTC


60.00 Source COL


N/A Source N/A


6,900,000.00


($ million)

2.90


Tranche Summary

ADB approved the North-South Road Corridor Investment Program - Tranche 1, not exceeding the aggregate amount of $60.00 million on 6 October 2009 including TA amounts (if any). Impact: Efficient, safe, and sustainable transport on the north-south road corridor Outcome: Reconstructed Yerevan to Ashtarak Road with increased traffic volume is safe and efficiently operated Outputs: Yerevan-Ashtarak road reconstructed Implementation Arrangements: The executing agency is the Ministry of Transport, Communication and Information Technologies (formerly Ministry of Transport and Communication) while the implementing agency is the "Organization for Implementation of North-South Road Corridor Investment Program" State Non-Commercial Organization. Implementation Status: The loan is ongoing and is expected to close according to the revised closing date of 30 June 2017. The previously identified cost overrun of about USD 6.00 million has been addressed through a minor scope change.



Minor Change 17 Jun 2016 Remove an underfunded scope of approximately 2 km from the scope of Tranche 1 (Loan 2561) and include the same to that of Tranche 2 (Loan 2729).

Tranche Performance






56.18 100.00 57.04 100.00


Tranche 1 (Loan 2561) is a loan of USD 60.00 million from ADF, which was approved on 6 October 2009 and declared effective on 24 February 2010. Tranche 1 is rated as On Track. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 1 have reached $56.18 million (100.0%) and $57.04 million (100.0%), respectively. All contracts have been completed except that of the external financial auditor for the fiscal years 2015, 2016, and half year 2017. The civil works contractor substantially completed the works in June 2016. The engineer issued on 16 June 2016 the taking-over certificate and punch list of outstanding works that are scheduled to be completed on or before 16 June 2017--the end of the defects notification period. Scope Change: There was a minor scope change for this tranche in 2016. Undertaking and Covenants: Of the 20 covenants under Tranche 1, four are complied with, 12 are being complied with, two are not complied with, and two are not applicable. The two covenants that are not complied with pertain to the road subsector plan which has been moved to Tranche 3 and the yearly road maintenance budget. The two covenants that are not applicable relate to land acquisition and resettlement.


TRANCHE 2 UPDATE




2729


Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

21 Dec 2010 30 Jun 2015 30 Jun 2017Division CWTC


170.00 Source OCR


N/A Source N/A


N/A


($ million)

N/A


Tranche Summary

ADB approved the North-South Road Corridor Investment Program - Tranche 2, not exceeding the aggregate amount of $170.00 million on 21 December 2010 including TA amounts (if any). Impact: Efficient, safe and sustainable north-south road corridor, linking Armenia domestically and internationally Outcome: Reconstructed and widened Ashtarak to Talin road is safe and efficiently operated Outputs: Upgraded 44 km section between Ashtarak and Talin Implementation Arrangements: The executing agency is the Ministry of Transport, Communication and Information Technologies (formerly Ministry of Transport and Communication) while the implementing agency is the "Organization for Implementation of North-South Road Corridor Investment Program" State Non-Commercial Organization. Implementation Status: The loan is ongoing. It is expected that the current closing date of 30 June 2017 will be further extended to allow for completion of works.



Minor Change 17 Jun 2016 Remove an underfunded scope of approximately 2 km from the scope of Tranche 1 (Loan 2561) and include the same to that of Tranche 2 (Loan 2729), and reallocate USD 6.00 million from the interest during construction category to the civil works category.

Tranche Performance






161.78 100.00 77.00 100.00


Tranche 2 (Loan 2729) is a loan of USD 170.00 million from OCR, which was approved on 21 December 2010 and declared effective on 18 July 2011. Tranche 2 is rated as On Track. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 2 have reached $161.78 million (100.0%) and $77.00 million (100.0%), respectively. All contracts have been awarded and are ongoing. Based on the value of the civil works completed, the progress is approximately at 24% in December 2016. There is an ongoing dispute between the employer and the contractor on the exact commencement date which is yet to be resolved. While land acquisition issues have been settled, utility relocation is only partially completed and needs to be addressed. Scope Change: There was a minor scope change for this tranche in 2016. Undertaking and Covenants: Of the 25 covenants, nine are complied with, 14 are being complied with, and two are not yet due.


TRANCHE 3 UPDATE




2993


Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

12 Mar 2013 30 Jun 2017 31 Dec 2017Division CWTC


100.00 Source OCR


N/A Source N/A


N/A


($ million)

N/A


Tranche Summary

ADB approved the North-South Road Corridor Investment Program - Tranche 3, not exceeding the aggregate amount of $100.00 million on 12 March 2013 including TA amounts (if any). Impact: Socioeconomic development in Armenia and expanded regional trade Outcome: Efficient, safe and sustainable north-south road corridor, linking Armenia domestically and internationally Outputs: Reconstructed 18.7 km two-lane road section between the towns of Talin and Landjik Road Subsector Plan completed and Road Asset Management and Road Maintenance System implemented Feasibility studies and detailed design for Tranche 4 prepared Implementation Arrangements: The executing agency is the Ministry of Transport, Communication and Information Technologies (formerly Ministry of Transport and Communication) while the implementing agency is the "Organization for Implementation of North-South Road Corridor Investment Program" State Non-Commercial Organization. Implementation Status: The loan is ongoing. It is expected that the current closing date of 31 December 2017 will be further extended to allow for completion of works.



N/A N/A N/A






64.56 100.00 12.30 100.00


Tranche 3 (Loan 2993) is a loan of USD 180.00 million from OCR, which was approved on 12 March 2013 and declared effective on 24 July 2014. Due to a cofinancing arrangement with the European Investment Bank, the ADB-financed section of the road was reduced. Consequently, USD 80.00 million was cancelled from the tranche amount. Tranche 3 is rated as On Track. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 3 have reached $64.56 million (100.0%) and $12.30 million (100.0%), respectively. The civil works contract was awarded in May 2016. The contractor has begun earthworks but has only completed about 50% of its work program in December 2016. Four civil works contracts for small works on nine overpasses on Tranche 1 section were also awarded in April and May 2016 and are ongoing. The construction supervision consultant contract awarded in March 2015 and covering supervision of all civil works is being implemented. Land acquisition is ongoing. The external monitoring of land acquisition and resettlement plan implementation contract was awarded in April 2016. The recruitment of consultant for preparing the road subsector plan has been postponed to 2017 as the assignment may need to be revised due to budget constraint and the outcome of the government's coordination with other donors. The procurement of goods for the road asset management system has been delayed due to rebidding and government's revision of the list of goods to be procured and estimated budget. The revised draft bidding document was submitted to ADB in January 2017 and the invitation for bid is expected to be advertised in February 2017. The recruitment of the external financial auditor is ongoing and contract award is expected in the first quarter of 2017. Individual consultants (contracts/FIDIC claims management expert, land acquisition and resettlement legal specialist, and field work coordinator) are engaged to support the project implementation unit as needed. Scope Change: There were no scope changes for this tranche in 2016. Undertaking and Covenants: Of the 38 covenants, three are complied with, 22 are being complied with, three are not yet complied with, four are not yet applicable, and six are not yet due.



FACILITY UPDATEProject Title Power Distribution Enhancement Investment Program Project No. 42401-014Country/Regional


Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

12 Jul 2016 31 Dec 2022

Division CWEN


Source OCR


Source N/A

Facility Summary

ADB approved the Power Distribution Enhancement Investment Program for an aggregate amount not exceeding $750.00 million from ADB’s OCR on 12 July 2016. Impact: increased availability of reliable electricity supply to all domestic consumers. Outcome: improved efficiency and reliability of the power distribution networks. Outputs: Customer services lines rehabilitated and smart meters installed and operational Distribution network including distribution lines and substations rehabilitated, augmented, and functional Institutional capacity improved and corporate reform achieved Significant Developments of the Facility: As of 31 December 2016, actual cumulative contract awards were $141.59 million and disbursements at $31.53 million. Of the 24 contracts awarded - one consultants contract was awarded in September 2016, and experts commenced services in October 2016. 23 turnkey contracts (2 ICB and 21 NCB) were awarded between July to December 2016.


2


250.00




105


On Track

106

TRANCHE 1 UPDATE



Country/Regional Azerbaijan Loan/Grant No.

3407

Project Officer Tareen, Adnan Department CWRD

Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

19 Jul 2016 30 Jun 2019Division CWEN


250.00 Source OCR


N/A Source N/A


N/A


($ million)

N/A



Tranche Summary

ADB approved the Power Distribution Enhancement Investment Program - Tranche 1, not exceeding the aggregate amount of $250.00 million on 19 July 2016 including TA amounts (if any). Impact: increased availability of reliable electricity supply to all domestic consumers. Outcome: improved efficiency and reliability of the power distribution networks. Outputs: Distribution network including distribution lines and substations rehabilitated, augmented, and functional Customer services lines rehabilitated and smart meters installed and operational Institutional capacity improved and corporate reform achieved Implementation Arrangements: The tranche comprises the following outputs: (i) rehabilitation and expansion of aging medium- and low-voltage distribution lines including approximately 54 km of 110 kV of 35 kV overhead lines, and 1,190 km 10 kV overhead lines, 15 km of 35 kV underground cables, and 49 km of 10 kV underground cables; (ii) rehabilitation and expansion of aging medium- and low-voltage substations including 4 substations at 110 kV, 16 substations at 35 kV, and 1,157 complete transformer substations; (iii) replacement of aging customer service lines with self-supporting insulated wires of approximately 3,900 km and installation of digital electric meters of approximately 108,410 units in place of inaccurate induction type meters; and (iv) project implementation support comprising project management and supervision, safeguards, compliance, institutional development and capacity building for Azerishiq. Azerishiq Open Joint Stock Company (OJSC) is the executing agency. Implementation Status: Consulting contract was awarded to the Joint venture of decon international GmbH, Consulectra GmbH and Arpa Consulting (Azerbaijan). Turnkey contracts (23) have been awarded and are under implementation. Of the 23 contracts, 2 are ICB and 21 are NCB.


N/A N/A N/A







139.97 100.00 31.53 100.00


Tranche 1 (Loan/Grant 3407) is a loan/grant of USD 250.00 million from OCR, which was approved on 19 JULY 2016 and declared effective on 02 SEPTEMBER 2016. Tranche 1 is rated as On Track. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 1 have reached $139.97 million (100.0%) and $31.53 million (100.0%), respectively. Consultants commenced services in October 2016. Turnkey contracts totaling 23 contracts are now under implementation. Scope Change: There was no scope changes for this tranche in 2016. Undertaking and Covenants: All undertakings and covenants are being complied with.



FACILITY UPDATEProject Title MFF - Water Supply and Sanitation Investment Program


Country/Regional


Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

23 Sep 2009 31 May 2018

Division CWUW


Source OCR


Source N/A

Facility Summary

ADB approved the MFF - Water Supply and Sanitation Investment Program (Facility Concept) for an aggregate amount not exceeding $600.00 million from ADB’s OCR on 23 September 2009. Impact: Improved public health and environment in participating towns Outcome: Improved coverage, and the continuity and quality of water supplies and wastewater disposal in participating towns Outputs: A: Water Supply and Sanitation Infrastructure Rehabilitated and Improved A.1 Rehabilitated, replaced, and expanded piped-water supply systems, water works, and treatment facilities in participating towns A.2. Water quality monitoring system developed and implemented A.3 Rehabilitated, replaced and expanded sewerage networks A.4 New wastewater treatment plants constructed in participating towns B. Improved WSS management and planning B.1 Institutions improved for WSS service delivery B.2 Capacity developed for better system planning, operations and maintenance B.3 Cost recovery enhanced through metering, billing and collection tariffs B.4 Efficiency increased for timely processing of effective WSS projects B.5 Twinning arrangement finalized with an external WSS utility to support capacity development B.6 Consumers mainstreamed on Investment Program implementation C. Program Management Facility established Significant Developments of the Facility: Tranche 4 of the MFF was approved on 9 August 2016 and awaiting signing of the loan agreement.


-


600.00

110

Facility Change in ScopeCategory Date Proposed Change

N/A N/A N/A Tranche Completion Report N/A Facility Completion Report N/A


On Track

111

TRANCHE 1 UPDATE

Tranche Title Water Supply and Sanitation Investment Program - Tranche 1



2571


Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

14 Oct 2009 30 Jun 2013 30 Jun 2017Division AZRM


75.00 Source OCR


N/A Source N/A


N/A


($ million)

2.84



Tranche Summary

ADB approved the Water Supply and Sanitation Investment Program - Tranche 1, not exceeding the aggregate amount of $75.00 million on 14 October 2009 including TA amounts (if any). Impact: Improved public health and environment in participating towns Outcome: Improved coverage, and the continuity and quality of water supplies and wastewater disposal in participating towns. Outputs: A. Water and Sanitation Infrastructure Rehabilitated and Improved A.1 Reconstructed, and expanded existing piped-water supply systems, water works, and treatment facilities in participating towns A.2 Water quality monitoring system developed A.3 Rehabilitated, replaced and expanded sewerage networks B. Improved WSS management and planning B.1 Institutions improved for WSS service delivery B.2 Capacity developed for better system planning, operations and maintenance B.3 Cost recovery enhanced through metering, billing and collection tariffs B.4 Efficiency increased for timely processing of effective WSS projects B.5 Twinning arrangement finalized with an external WSS utility to support capacity development C. Program Management Facility established providing effective support to AzerSu, SAWMA, and JSCs Implementation Arrangements: The executing agencies are Azersu and SAWMC. Investment Management Offices (IPMOs) were established in both executing agencies, which are responsible for implementation of the Project. The IPMOs are headed by a full time director and staffed with technical, financial, procurement, and safeguards specialists, and supported by the Project Management Consultants. Implementation Status: Tranche 1 aims to improve water supply and sanitation in parts of two secondary towns, Goychay and Nakhchivan. All contracts under Tranche 1 have been competed.


N/A N/A N/A







72.48 99.76 73.98 100.00


Tranche 1 (Loan 2571) is a loan of $75.00 million from Ordinary Capital Resources (OCR), which was approved on 14 October 2009 and declared effective on 17 February 2010. Tranche 1 is rated as On Track. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 1 have reached $72.48 million (99.8%) and $73.98 million (100.0%), respectively. Civil works in the two project towns - Goychay and Nakhchivan - have been completed. Azersu IPMC contract remains open as their contract covers supervision of the construction works in Tranche 2 of the MFF which runs until June 2017. Scope Change: There were no minor scope changes for this tranche in 2016. Undertaking and Covenants: The government has complied with all facility undertakings. The executing agencies have complied with all sector covenants and financial covenants and financial covenants. For safeguards covenants, environmental management plans were incorporated in all civil works contracts prior to inviting bids. Azersu and SAWMC have complied with environmental covenants while implementing civil works contracts.


TRANCHE 2 UPDATE




2842

Project Officer Jafarova, Sabina Department CWRD

Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

22 Dec 2011 30 Jun 2017Division AZRM


300.00 Source OCR


N/A Source N/A


38.26


($ million)

N/A



Tranche Summary

ADB approved the Water Supply and Sanitation Investment Program - Tranche 2, not exceeding the aggregate amount of $300.00 million on 22 December 2011 including TA amounts (if any). Impact: Improved water supply and sanitation services in the urban centers of Agdash, Beylagan, Goychay and Nakhchivan Outcome: Improved access to water supply and sanitation infrastructure in Agdash, Beylagan, Goychay and Nakhchivan Outputs: Water supply system efficiency improved through rehabilitation and replacement, and coverage expanded Sewerage and sanitation system efficiency improved through rehabilitation and reconstruction, and coverage expanded Management information system developed Management capacity of Sukanals and JSCs enhanced Institutions improved for WSS delivery Better hygiene and sanitation practices in the community Implementation Arrangements: The executing agencies are Azersu and the State Amelioration Water Management Committee (SAWMC). Investment Program Management Offices (IPMOs) were established in both executing agencies which are responsible for implementation of the Project. The IMPOs are headed by a full-time program director and staffed with technical, financial, procurement, and safeguards specialists, and supported by the Project Management Consultants. Implementation Status: Tranche 2 aims to complement the works under Tranche 1 through the provision of water supply and sewerage services in the remaining parts of Goychay, Nakhchivan, as well as the two additional secondary towns of Agdash and Beylagan. Under Tranche 2, four secondary towns would receive improved water supply and sewerage networks and sewage treatment plants covering the entire population of over 183,000. Tranche 2 includes construction of 460 km of water supply network, 7,000 cubic meters of storage reservoirs, 424 km of sewer network, and four sewage treatment plants with a total capacity of 83 MLD. All civil works have been completed or substantially completed. The loan is expected to be financially closed by Q4 2017.



Minor Change 09 Aug 2016 Change in the location of water intake facility in the WSS contract in Agdash town.

Minor Change 21 Jun 2016 Price adjustment provision (PCC 13.8) in WSS contract in Agdash town was invoked to allow payment of price escalation after 18-month period implementation.

Minor Change 29 Aug 2016 The completion date for WSS contract in Beylagan town was extended from 31 Aug 2016 to 31 Dec 2016.

Minor Change 30 Sep 2016 The savings in the WSS contract in Goychay town was cancelled and returned to the Loan funds.

Tranche Performance






299.93 100.00 270.44 100.00



Tranche (Loan/Grant 2842) is a loan/grant of USD 300.00 million from OCR, which was approved on 22 DECEMBER 2011 and declared effective on 20 SEPTEMBER 2012. Tranche is rated as Actual Problem. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 2 have reached $299.93 million (100.0%) and $270.44 million (100.0%), respectively. All civil works have been completed or substantially completed. Scope Change: There were four (4) minor scope changes for the project. Undertaking and Covenants: The government has complied with all facility undertakings. The executing agencies have complied with all sector covenants. For safeguards covenants, environmental management plans were incorporated in all civil works contracts prior to inviting bids. Azersu and SAWMC have complied with environmental covenants while implementing civil works contracts.


TRANCHE 3 UPDATE




3079

Project Officer Shen, Lu Department CWRD

Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

5 Dec 2013 31 May 2018Division CWUW


150.00 Source OCR


N/A Source N/A


N/A


($ million)

N/A



Tranche Summary

ADB approved the Water Supply and Sanitation Investment Program - Tranche 3, not exceeding the aggregate amount of $150.00 million on 5 December 2013 including TA amounts (if any). Impact: Improved public health and environment in participating towns of Aghjabedi and the peri-urban towns of Nakhchivan City (Qarahanbeyli, Qaracuq, Tumbul, Bulgan and Hacniyyet towns) Outcome: Improved coverage, and the continuity and quality of water supply and wasterwater disposal in Aghjabedi and the peri-urban towns of Nakhchivan City Outputs: A: WSS Infrastructure Rehabilitated and Improved Water supply and sewerage system efficiency improved through rehabilitation and replacement, and coverage expanded B. Institutional Effectiveness Capacity developed for better system planning, operations and maintenance Implementation Arrangements: The executing agencies are Azersu and State Amelioration Water Management Committee (SAWMC). Investment Program Management Offices were established in both executing agencies, which are responsible for implementation of the Project. The IPMOs are headed by a full-time program director and staffed with technical, financial, procurement, and safeguards specialists, and supported by the Project Management Consultants. Implementation Status: Three civil works are envisaged for the project. The contract for the construction of water and sewerage networks in the peri-urban towns of Nakchivan was awarded in December 2015. The WSS package in Aghjabedi town was awarded in June 2016.


N/A N/A N/A






116.48 96.21 34.80 100.00



Three civil works are envisaged for the project. The contract for the construction of water and sewerage networks in the peri-urban towns of Nakchivan was awarded in December 2015. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 3 have reached $116.49 million (96.2%) and $34.80 million (100.0%), respectively. The civil works package water supply and sewerage (WSS) networks in the peri-urban towns in Nackhivan, under SAWMC supervision, was awarded in December 2015. The WSS package in Aghjabedi town was awarded in June 2016. Scope Change: There were no scope changes for this tranche in 2016. Undertaking and Covenants: For safeguards covenants, environmental management plans were incorporated in all civil works contracts prior to inviting bids.


TRANCHE 4 UPDATE

Tranche Title Water Supply and Sanitation Investment Program - Tranche 4 (Additional Financing)



3411

Project Officer Shen, Lu Department CWRD

Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

9 Aug 2016 31 May 2018Division CWUW


75.00 Source OCR


N/A Source N/A


N/A


($ million)

N/A


Tranche Summary

ADB approved the Water Supply and Sanitation Investment Program - Tranche 4 (Additional Financing), not exceeding the aggregate amount of $75.00 million on 9 August 2016 including TA amounts (if any). Impact: Improved public health and environment in Agdash and Beylagan. Outcome: Improved coverage, continuity, and quality of water supplies and wastewater disposal in Agdash and Beylagan. Outputs: Water supply system efficiency improved through rehabilitation and replacement, and coverage expanded in Agdash sewerage and sanitation system efficiency improved through construction and coverage expansion in Agdash and Beylagan Implementation Arrangements: Not Applicable Implementation Status: Not Yet Effective


N/A N/A N/A



On Track Potential Problem Actual ProblemOverall Rating

FinancialContract AwardsDisbursementsSafeguardsTechnical



0.00 0.00 0.00 0.00




FACILITY UPDATEProject Title Sustainable Urban Transport Investment Program -

Facility ConceptProject No. 42414-013

Country/Regional


Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

19 Jul 2010 30 Sep 2018

Division CWUW


Source COLOCR


Source N/A

Facility Summary

ADB approved the Sustainable Urban Transport Investment Program - Facility Concept for an aggregate amount not exceeding $300.00 million from ADB’s ADF, OCR on 19 July 2010. Impact: Improved urban environment, expanded local economy, and better living conditions within urban areas Outcome: Efficient, reliable, and affordable urban transport services provided in relevant cities Outputs: Urban transport infrastructure extended, rehabilitated and improved by MDF and relevant municipalities Institutional and management capacity of MDF and relevant municipalities strengthened Establishment of skilled and experienced units to oversee the management and the implementation of the program in MDF and the relevant municipalities Significant Developments of the Facility: There was a minor scope change for this facility in 2015.


1


258.00





On Track

124

TRANCHE 1 UPDATE

Tranche Title Sustainable Urban Transport Investment Program - Tranche 1



2655

Project Officer Margonsztern, David C. M. Department CWRD

Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

21 Jul 2010 31 Dec 2016 30 Sep 2018Division CWUW


85.00 Source COL


N/A Source N/A


N/A


($ million)

N/A



Tranche Summary

ADB approved the Sustainable Urban Transport Investment Program - Tranche 1, not exceeding the aggregate amount of $85.00 million on 21 July 2010 including TA amounts (if any). Impact: Improved urban environment, local economy, and better living conditions within urban areas. Outcome: Efficient, reliable, and affordable urban transport services provided in relevant cities. Outputs: Urban transport infrastructure extended, rehabilitated and improved by MDF and relevant municipalities Institutional and management capacity of MDF and relevant municipalities strengthened. Establishment of skilled and experienced units to oversee the management and the implementation of the program in MDF and the relevant municipalities. Implementation Arrangements: The executing agency is Municipal Development Fund (MDF). It has the technical capacity and track record in implementing donor-financed projects. It will (i) procure and manage loan proceeds, (ii) supervise and monitor the implementation of investments under the MFF, (ii) provide counterpart assistance, and (iii) ensure oversight over environmental and social safeguard compliance. In subsequent tranches, Tbilisi municipality could become the implementing agency for its subprojects. The MDF Supervisory Board, chaired by the Prime Minister, will monitor progress on the MFF. This Board comprises representatives of all relevant government entities. It will also include representatives from regional/municipal authorities, as appropriate. The implementation arrangements are described in the Project Administration Manual. Implementation Status: 1. Zugdidi to Mestia Road: 23 km road construction completed. 2. Anaklia coastal improvement subproject (Phase 1): The contract was awarded in 2013, and works are ongoing. Completion date is expected end of Q3 2017. 3. Metro extension subproject: Metro extension civil works in progress, reaching 70 % physical progress since the contract commencement effective in June 2015. The physical completion expected in April 2017 and testing to be completed by September 2017.


N/A N/A N/A







66.76 93.19 61.69 100.00


Tranche 1 (Loan 2655) is a loan of $85.00 million from the Asian Development Fund (ADF), which was approved on 21 July 2010 and declared effective on 29 September 2010. Tranche 1 is rated as On Track. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 1 have reached $66.76 million (93.2%) and $61.69 million (100.0%), respectively. As of 31 December 2016, contract awards and disbursements under Tranche 1 have reached $66.762 million (93.18%) and $61.68 million (100.0%), respectively. The Anaklia coastal improvement subproject (Phase 1) contract was awarded in 2013, and works are ongoing. Completion date is expected at the end of Q3 2017. Metro extension subproject: The civil work contract was awarded on 26 March 2015 and the contractor fully mobilized in July 2015. The construction activities are according to schedule with an anticipated completion by April 2017 and the testing completed by September 2017. Scope Change: There were no scope changes for this tranche in 2016. Undertaking and Covenants: All undertakings and covenants are being complied with.


TRANCHE 2 UPDATE




2879, 2880


Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

24 Jul 2012 31 Dec 2018Division CWUW


80.00 Source COLOCR


N/A Source N/A


N/A


($ million)

N/A



Tranche Summary

ADB approved the Sustainable Urban Transport Investment Program - Tranche 2, not exceeding the aggregate amount of $80.00 million on 24 July 2012 including TA amounts (if any). Impact: Improved urban environment, local economy and better living conditions within urban areas Outcome: Efficient, reliable and affordable urban transport services provided in relevant cities Outputs: Urban transport infrastructure extended, rehabilitated and improved by MDF and relevant municipalities Subprojects for subsequent tranches ready for implementation Establishment of skilled and experienced units to oversee the management and the implementation of the Project in MDF and relevant municipalities Implementation Arrangements: The executing agency is Municipal Development Fund of Georgia (MDF). The MDF Supervisory Board, chaired by the Prime Minister, includes representatives from the Ministry of Finance (MOF); Ministry for Regional Development and Infrastructure (MRDI); and Ministry of Economy and Sustainable Development (MESD). Other ministries and municipalities are invited to attend as appropriate. The Board provides guidance and reviews program performance. The implementation arrangements are summarized in Table 5 of the PFR Report and described in detail in the PAM. Implementation period: July 2012 - July 2018 Estimated completion date: 31 July 2018 Implementation Status: Modernization of Tbilisi-Rustavi Urban Road Link (Sections 1 and 3): The Contractor completed the works in Sections 1 and 3 by end-June 2016. The sections are under the defect liability period.


N/A N/A N/A






44.93 97.63 49.83 100.00



Tranche 2 (Loans 2879, 2880) is a loan of $80.00 million from the Asian Development Fund (ADF) and Ordinary Capital Resources (OCR), which was approved on 24 July 2012 and declared effective on 20 August 2012. Tranche 2 is rated as On Track. A major change in scope of Tranche 2 has been approved by ADB President on 17 May 2013 which resulted in the cancellation of a portion of the OCR Loan (2879), while the ADF loan (Loan 2880-GEO [SF]) amount remains unchanged. The revised OCR loan amount is $48.90 million. The revised Tranche 2 total amount is $64.89 million. Tranche 2 is rated as On Track. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 2 have reached $44.93 million (97.6%) and $49.83 million (100.0%), respectively. The construction of Sections 1 and 3 was completed by by end-June 2016. The sections are under the defect liability period. The Office of Special Project Facilitation (OSPF) received two complaints filed by owner of the land plot occupied by Caucasus Auto Center (complaint dated 9 November 2016) and the Auto House (complaint dated 17 November 2016). The OSPF declared both the cases in eligible for problem solving, the case of Caucasus Auto Center on 6 December 2016 and the case of Auto House on 10 January 2017. Scope Change: There were no scope changes for this tranche in 2016. Undertaking and Covenants: All undertakings and covenants are being complied with.


TRANCHE 3 UPDATE




3063


Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

25 Nov 2013 31 Dec 2018Division CWUW


73.00 Source OCR


N/A Source N/A


N/A


($ million)

N/A


Tranche Summary

ADB approved the Sustainable Urban Transport Investment Program - Tranche 3, not exceeding the aggregate amount of $73.00 million on 25 November 2013 including TA amounts (if any). Impact: Improved urban environment, local economy, and better living conditions within urban areas Outcome: Efficient, reliable, and affordable urban transport services provided in relevant cities Outputs: Urban transport infrastructure extended, rehabilitated, and improved by MDF and relevant municipalities Implementation Arrangements: The executing agency will be the MDF. The supervisory board of MDF (chaired by the Prime Minister) includes representatives from the Ministry of Finance (MOF), MRDI, and Ministry of Economic Development (MoED). Other ministries and municipalities are invited to attend as appropriate. The board is providing guidance, reviewing the Investment Program, and performance. The implementation arrangements are described in detail in the project administration manual (PAM). Implementation Status: 1. Anaklia coastal improvement subproject (Phase 2): The contract was awarded in September 2014 the breakwater construction is completed. 2. Tbilisi-Rustavi Road Link (Section 2): The civil works contract was awarded in November 2016. The contractor will begin works in first quarter of 2017 except in an approximate 3km in Ponichala currently subjected to compliance review by Office of the Compliance Review Panel (OCRP).



N/A N/A N/A






40.94 100.00 17.97 100.00


Tranche (Loan/Grant 3063) is a loan/grant of USD 118.20 million from OCR, which was approved on 25 NOVEMBER 2013 and declared effective on 14 MARCH 2014. Tranche is rated as On Track. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 3 have reached $40.94 million (100.0%) and $17.97 million (100.0%), respectively. As of 31 December 2016, contract awards and disbursements under Tranche 3 have reached $40.936 million (100.0%) and $17.974 million (100.0%), respectively. Anaklia coastal improvement (Phase 2): the works completed in Q4 2016. Tbilisi-Rustavi road link (section 2). The civil works contract was awarded in November 2016. The contractor will begin works in first quarter of 2017 except in an approximate 3km in Ponichala currently subjected to compliance review by OCRP. The MDF will hand over the sections subject to compliance review last after resolution of the issues based on the outcome of the compliance review. The OCRP on 15 November 2016 submitted the draft report on its finding to ADB s Management for comments. The compliant was made on 14 March 2016 to OCRP by 81 residents of the building 12 in the 12-33 Block in Ponichala section. Scope Change: There were no scope changes for this tranche in 2016. Undertaking and Covenants: All undertakings and covenants are being complied with.


TRANCHE 4 UPDATE




3273


Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

25 Aug 2015 30 Jun 2020Division CWUW


20.00 Source OCR


N/A Source N/A


N/A


($ million)

N/A


Tranche Summary

ADB approved the Sustainable Urban Transport Investment Program - Tranche 4, not exceeding the aggregate amount of $20.00 million on 25 August 2015 including TA amounts (if any). Impact: Improved urban environment, local economy and living conditions within urban areas. Outcome: Efficient, reliable and affordable urban transport services provided in relevant cities. Outputs: Urban transport infrastructure extended, rehabilitated, and improved by the Municipal Development Fund of Georgia (MDF) and relevant municipalities Institutional and management capacity of MDF strengthened Skilled and experienced units to oversee the management and implementation of the program in MDF established Implementation Arrangements: The executing agency will be the MDF. The supervisory board of MDF (chaired by the Prime Minister) includes representatives from the Ministry of Finance (MOF), MRDI, and Ministry of Economic Development (MoED). Other ministries and municipalities are invited to attend as appropriate. The board is providing guidance, reviewing the Investment Program, and performance. The implementation arrangements are described in detail in the project administration manual (PAM). Implementation Status: Batumi Costal Protection civil works contract was awarded in November 2016 and mobilization is ongoing.



N/A N/A N/A






10.31 0.00 2.29 100.00


Tranche (Loan/Grant 3273) is a loan/grant of USD 20.00 million from OCR, which was approved on 25 AUGUST 2015 and declared effective on 08 JANUARY 2016. Tranche is rated as On Track. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 4 have reached $10.31 million (.0%) and $2.29 million (100.0%), respectively. As of 31 December 2016, contract awards and disbursements under Tranche 4 have reached $10.31 million (100.0%) and $2.294 million (100.0%), respectively. ADB provided its no objection on October 2016 to award the civil works contract to the lowest evaluated substantially responsive bidder. The contractor signed the contract in November 2016 the contractor has commenced to mobilize and works would start in the first quarter 2017. Scope Change: There were no scope changes for this tranche in 2016. Undertaking and Covenants: All undertakings and covenants are being complied with.



FACILITY UPDATEProject Title MFF - Sustainable Urban Development Investment

Program - Facility ConceptProject No. 42417-013

Country/Regional

Armenia Department CWRD

Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

19 Apr 2011 31 Dec 2020

Division CWUW


Source COLOCR


Source N/A

Facility Summary

ADB approved the MFF - Sustainable Urban Development Investment Program - Facility Concept for an aggregate amount not exceeding $400.00 million from ADB’s ADF, OCR on 19 April 2011. Impact: Improved urban environment, local economy and enhanced private sector within urban areas Outcome: Efficient, reliable and affordable urban infrastructures and services provided in Armenian cities Outputs: Appropriate institutional capacity strengthened in Yerevan and secondary cities Establishment of skilled and experienced program Implementation Units in Yerevan and Armenia Urban infrastructure extended, rehabilitated and improved in urban areas Significant Developments of the Facility: There were no significant developments of the facility including major changes to the roadmap, investment program, and policy and legal framework.


1


161.61





On Track

135

TRANCHE 1 UPDATE

Tranche Title Sustainable Urban Development Investment Program - Tranche 1



2752

Project Officer Llorens, Cesar Department CWRD

Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

9 May 2011 30 Jun 2016 31 Dec 2017Division ARRM


48.64 Source COL


N/A Source N/A


N/A


($ million)

1.00


Tranche Summary

ADB approved the Sustainable Urban Development Investment Program - Tranche 1, not exceeding the aggregate amount of $48.64 million on 9 May 2011 including TA amounts (if any). Impact: Improved urban environment, local economy and enhanced private sector in Yerevan Outcome: Efficient, reliable and affordable urban infrastructures and services provided in Yerevan Outputs: Urban infrastructure extended, rehabilitated and improved in Yerevan Appropriate institutional capacity strengthened in Yerevan Establishment of skilled and efficient program Implementation Unit in Yerevan Implementation Arrangements: Ministry of Economy is the EA, and Yerevan Municipality is the IA for Tranches 1 Implementation Status: Ongoing


N/A N/A N/A







32.81 94.86 32.65 100.00


Tranche 1 (Loan/Grant 2752) is a loan/grant of USD 48.64 million from COL, which was approved on 09 MAY 2011 and declared effective on 19 JULY 2011. Tranche 1 is rated as On Track. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 1 have reached $32.81 million (94.9%) and $32.65 million (100.0%), respectively. As of 31 December 2016, contract awards and disbursements under Tranche 1 have reached $32.81 million (94.9%) and $32.65 million (100.0%), respectively. Scope Change: Incorporation of two new fly overs in to the original scope Undertaking and Covenants: All covenants are complied with, or in the process of being complied with.


TRANCHE 2 UPDATE

Tranche Title Sustainable Urban Development Investment Program - Tranche 2



3293

Project Officer Llorens, Cesar Department CWRD

Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

29 Sep 2015 30 Mar 2020Division ARRM


112.97 Source OCR


N/A Source N/A


N/A


($ million)

N/A


Tranche Summary

ADB approved the Sustainable Urban Development Investment Program - Tranche 2, not exceeding the aggregate amount of $112.97 million on 29 September 2015 including TA amounts (if any). Impact: improved road traffic safety and enhanced local economy in Yerevan. Outcome: efficient, reliable, and affordable urban infrastructure and services provided in Yerevan by 2020. Outputs: Urban transport infrastructure extended, rehabilitated, and improved in Yerevan Appropriate institutional capacity strengthened in Yerevan Skilled and efficient program implementation system established. Implementation Arrangements: Ministry of Economy is the EA, and Yerevan Municipality is the IA for Tranche 2 Implementation Status: Ongoing


N/A N/A N/A







35.01 100.00 12.86 100.00


Tranche (Loan/Grant 3293) is a loan/grant of USD 112.97 million from OCR, which was approved on 29 SEPTEMBER 2015 and declared effective on 04 MARCH 2016. Tranche is rated as On Track. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 2 have reached $35.01 million (100.0%) and $12.86 million (100.0%), respectively. As of 31 December 2016, contract awards and disbursements under Tranche 2 have reached $35.01 million (100.0%) and $12.86 million (100.0%), respectively. Scope Change: No scope Change Undertaking and Covenants: All covenants are complied with, or in the process of being complied with.



FACILITY UPDATEProject Title MFF - Water Supply and Sanitation Services Investment

Program - Facility ConceptProject No. 42489-013

Country/Regional


Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

29 Sep 2009 31 Dec 2018

Division CWUW


Source COL


Source N/A

Facility Summary

ADB approved the MFF - Water Supply and Sanitation Services Investment Program - Facility Concept for an aggregate amount not exceeding $300.00 million from ADB’s COL on 29 September 2009. Impact: The impact of the investment program will be improved living standards, environment and public health for about 3 million residents. Outcome: The outcome will be safe, reliable, inclusive, and sustainable water supply and sanitation services and improved community hygiene. Outputs: The investment program will focus on physical and institutional improvements in water supply and sewerage subsectors through physical investments (Part I) and institutional strengthening and capacity development (Part II). Significant Developments of the Facility: There were no significant developments of the facility including major changes to the roadmap, investment program, and policy and legal framework.


-


300.00




140


On Track

141

TRANCHE 1 UPDATE

Tranche Title Water Supply and Sanitation Services Investment Program - Tranche 1



2564

Project Officer Mukhammadaliyev, Doniyor Tojimuhammadovich Department CWRD

Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

8 Oct 2009 30 Jun 2015 30 Jun 2017Division URM


60.00 Source COL


N/A Source N/A


N/A


($ million)

N/A


Tranche Summary

ADB approved the Water Supply and Sanitation Services Investment Program - Tranche 1, not exceeding the aggregate amount of $60.00 million on 8 October 2009 including TA amounts (if any). Impact: The impact of the proposed investment program will be improved living standards, environment and public health in urban centers of Uzbekistan. Outcome: The outcome will be safe, reliable, and sustainable water supply and sanitation services in 11 district centers in Bukhara and Navoi Provinces. Outputs: Water supply and Sanitation Systems Rehabilitated and Improved Management Improvement and Capacity Development - Management structure and capacity for water supply operation inproved. Program Management Facility - Effective support provided to program development, implementation and management. Implementation Arrangements: The executing agency (EA) is Uzbekistan Agency Uzkommunkhizmat also known as Uzbek Communal Services Agency (UCSA). The implementing unit under UCSA is the project management unit which handles all the water supply projects under UCSA including this MFF. Implementation Status: Except for one consulting contract to be awarded for institutional strengthening and capacity development, all contract were awarded. Tranche 1 will be completed as scheduled by 30 June 2017.



N/A N/A N/A






53.80 98.97 54.21 100.00


Tranche (Loan/Grant 2564) is a loan/grant of USD 60.00 million from COL, which was approved on 08 OCTOBER 2009 and declared effective on 21 APRIL 2010. Tranche is rated as On Track. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 1 have reached $53.80 million (99.0%) and $54.21 million (100.0%), respectively. Loan will close by 30 June 2017 as scheduled. Scope Change: No scope change. Undertaking and Covenants: Loan covenants are all in compliance.


TRANCHE 2 UPDATE




2633


Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

21 Apr 2010 31 Jan 2016 31 Dec 2016Division URM


140.00 Source COL


N/A Source N/A


N/A


($ million)

N/A


Tranche Summary

ADB approved the Water Supply and Sanitation Services Investment Program - Tranche 2, not exceeding the aggregate amount of $140.00 million on 21 April 2010 including TA amounts (if any). Impact: Improved living standards, environment, and public health in urban centers of Uzbekistan. Outcome: Safe, reliable, and sustainable water supply and sanitation services and improved hygiene in project cities. Outputs: Water supply and sanitation systems improved and rehabilitated Management structure and capacity for WSS operation improved. Effective support provided to program implementation. Implementation Arrangements: The executing agency (EA) is Uzbekistan Agency Uzkommunkhizmat also known as Uzbek Communal Services Agency (UCSA). The implementing unit under UCSA is the project management unit which handles all the water supply projects under UCSA including this MFF. Implementation Status: Loan was closed on 31 December 2016.


N/A N/A N/A


Tranche Performance






131.74 99.82 132.96 99.58


Tranche (Loan/Grant 2633) is a loan/grant of USD 140.00 million from COL, which was approved on 21 APRIL 2010 and declared effective on 10 AUGUST 2010. Tranche is rated as On Track. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 2 have reached $131.74 million (99.8%) and $132.97 million (99.6%), respectively. Loan was closed on 31 December 2016. Scope Change: No scope change. Undertaking and Covenants: All loan covenants have been complied.


TRANCHE 3 UPDATE




2825


Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

7 Dec 2011 31 Dec 2016Division URM


58.00 Source COL


N/A Source N/A


N/A


($ million)

N/A


Tranche Summary

ADB approved the Water Supply and Sanitation Services Investment Program - Tranche 3, not exceeding the aggregate amount of $58.00 million on 7 December 2011 including TA amounts (if any). Impact: Improved living standards, environment, and public health in urban centers of Uzbekistan. Outcome: Safe, reliable, and sustainable water supply, improved sanitation services and hygiene in project towns. Outputs: 1.1 Water supply systems rehabilitated and constructed. 1.2 Sanitation systems rehabilitated, constructed and improved. 1.3 Management structure and capacity for WSS operation improved. Implementation Arrangements: The executing agency (EA) is Uzbekistan Agency Uzkommunkhizmat also known as Uzbek Communal Services Agency (UCSA). The implementing unit under UCSA is the project management unit which handles all the water supply projects under UCSA including this MFF. Implementation Status: Loan was closed on 31 December 2016.


N/A N/A N/A







51.45 100.00 48.52 100.00


Tranche (Loan/Grant 2825) is a loan/grant of USD 72.50 million from COL, which was approved on 07 DECEMBER 2011 and declared effective on 20 APRIL 2012. Tranche is rated as On Track. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 3 have reached $51.45 million (100.0%) and $48.53 million (100.0%), respectively. Loan was closed on 31 December 2016. Scope Change: No scope change. Undertaking and Covenants: All loan covenants have been complied.


TRANCHE 4 UPDATE




3064

Project Officer Zhang, Hao Department CWRD

Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

25 Nov 2013 31 Mar 2018Division CWUW


42.00 Source COL


N/A Source N/A


N/A


($ million)

N/A


Tranche Summary

ADB approved the Water Supply and Sanitation Services Investment Program - Tranche 4, not exceeding the aggregate amount of $42.00 million on 25 November 2013 including TA amounts (if any). Impact: Improved living standards, environment, and public health in Fergana, Margilan, and Tashlak cities and the surrounding districts Outcome: Safe, reliable, and sustainable sewerage services in Fergana, Margilan, and Tashlak cities and the surrounding districts Outputs: 1.Rehabilitation and expansion of sewerage management system in Fergana and Margilan cities 2. Management structure and capacity for vodokanals improved, and implementation effectively supported Implementation Arrangements: The executing agency (EA) is Uzbekistan Agency Uzkommunkhizmat also known as Uzbek Communal Services Agency (UCSA). The implementing unit under UCSA is the project management unit which handles all the water supply projects under UCSA including this MFF. Implementation Status: All civil works, equipment and consulting services have been awarded under Tranche 4 and there are no remaining contracts to be awarded. The two civil works contracts will be completed as scheduled.



N/A N/A N/A






37.29 100.00 20.42 100.00


Tranche (Loan/Grant 3064) is a loan/grant of USD 52.50 million from ADF, which was approved on 25 NOVEMBER 2013 and declared effective on 05 SEPTEMBER 2014. Tranche is rated as On Track. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 4 have reached $37.29 million (100.0%) and $20.42 million (100.0%), respectively. - Scope Change: There were no scope changes during the year for this Tranche. Undertaking and Covenants: All covenants are being complied with. The engagement of the auditor is ongoing and the audit for the previous fiscal years will commence in Q2 2017.



FACILITY UPDATEProject Title MFF - Urban Services Improvement Investment Program

- Facility ConceptProject No. 43405-013

Country/Regional


Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

30 Mar 2011 31 Mar 2019

Division CWUW


Source COLOCR


Source N/A

Facility Summary

ADB approved the MFF - Urban Services Improvement Investment Program - Facility Concept for an aggregate amount not exceeding $500.00 million from ADB’s ADF, OCR on 30 March 2011. Impact: Improved health of residents in the secondary towns of Georgia Outcome: Improved water supply and sanitation services in the secondary towns of Georgia Outputs: Component 1: Infrastructure Improvement Water supply system efficiency improved through rehabilitation and replacement, and coverage expanded Component 1: Infrastructure Improvement Sewerage and sanitation system efficiency improved through rehabilitation and reconstruction, and coverage expanded Component 2: Institutional Effectiveness Business plans developed and implemented Component 2: Institutional Effectiveness Financial management improved; management information system and accounting system developed Component 2: Institutional Effectiveness Geospatial WSS utility management systems operationalized Component 2: Institutional Effectiveness Management capacity of UWSCG enhanced Component 2: Institutional Effectiveness Sector regulatory capacity of GNEWSRC, MEPNR, and MA developed Component 3: Project Implementation Support Public awareness program effectively implemented, materials on hygiene and sanitation disseminated, and women developed as hygiene and sanitation advocates Significant Developments of the Facility: There are no significant developments of the facility including major changes to the roadmap, investment program, and policy and legal framework.


-


500.00

150





On Track

151

TRANCHE 1 UPDATE

Tranche Title Urban Services Improvement Investment Program - Tranche 1



2749


Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

12 Apr 2011 30 Sep 2016 30 Jun 2018Division GRM


80.00 Source COL


N/A Source N/A


N/A


($ million)

4.50



Tranche Summary

ADB approved the Urban Services Improvement Investment Program - Tranche 1, not exceeding the aggregate amount of $80.00 million on 12 April 2011 including TA amounts (if any). Impact: Improved water supply in Secondary towns in Georgia. Outcome: Improved operations of the UWSCG. Outputs: Component 1: Infrastructure Improvement Water intake, treatment and transmission pipeline constructed Component 2: Institutional Effectiveness Business Plans developed and implemented Component 2: Institutional Effectiveness Financial management improved, MIS and Accounting systems developed Component 2: Institutional Effectiveness Geospatial WSS utility management systems operationalized Component 2: Institutional Effectiveness Management capacity of UWSCG enhanced Component 2: Institutional Effectiveness Sector regulatory capacity of GNEWSRC, MEPNR, and MA developed Component 3: Project Implementation Support Public awareness program effectively implemented, materials on hygiene and sanitation disseminated, and women developed as hygiene and sanitation advocates Implementation Arrangements: The executing agency is the Ministry of Regional Development and Infrastructure of Georgia. The implementing agency is the United Water Supply Company of Georgia LLC (UWSCG). Implementation Status: An extension of the loan closing date from 30 September 2016 to 30 June 2018 (18 months) was approved on 22 April 2016 due to the delay in the completion of the following of the contract for the construction of UWSCG's Office Building. The construction of a water supply network in Mestia is complete. Water supply system improvements in Anaklia, Kutaisi, and Poti are 98% complete. Construction of a water treatment plant in Mestia and a sewage treatment plant in Anaklia are 60% complete as of 31 December 2016. The Ureki water supply system is 40% complete as of 31 December 2016. The works contract for the UWSCG office building, awarded on 1 December 2015, has reached only a 2% physical progress due to delays related to environmental permits released by the city of Tbilisi.



Minor Change 25 Aug 2016 A minor change in scope of Tranche 1 was requested in May 2016 to: (i) include the town of Abasha in addition to the existing towns of Anaklia, Mestia, Kutaisi, Poti, and Ureki, and the corresponding addition of water supply works components in the town to be undertaken and financed from the expected savings of $3 million under Tranche 1; and (ii) reallocate loan proceeds within the same total amount of SDR 51.343 million of Tranche 1.

Tranche Performance






68.70 95.81 53.02 94.42


Tranche 1 (Loan 2749) is a loan of USD 80.00 million from COL, which was approved on 12 April 2011 and declared effective on 15 June 2011. Tranche 1 is rated as On Track. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 1 have reached $68.70 million (95.8%) and $53.02 million (94.4%), respectively. As of 31 December 2016, the physical progress has reached 75%. Scope Change: There was a minor scope change for this tranche in 2016. Undertaking and Covenants: The government and the executing agency have complied with all financial covenants, while some of the sector development covenants have not been complied with yet, but the EA is in the process of meeting compliance (strengthening of water regulatory body and improvement of UWSCG management). Safeguard covenants (Environment, Resettlement, Health, Gender and Development, and Governance and Anticorruption) are being complied with.


TRANCHE 2 UPDATE




2807


Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

23 Nov 2011 30 Jun 2017Division GRM


40.00 Source COL


N/A Source N/A


N/A


($ million)

N/A


Tranche Summary

ADB approved the Urban Services Improvement Investment Program - Tranche 2, not exceeding the aggregate amount of $40.00 million on 23 November 2011 including TA amounts (if any). Impact: Improved water supply and sanitation in the urban centers of Georgia Outcome: Improved water supply and sanitation services. Outputs: Infrastructure Improvement Water supply system efficiency improved through rehabilitation and replacement, and coverage expanded Sewerage and sanitation system efficiency improved through rehabilitation and reconstruction, and coverage expanded Implementation Arrangements: The executing agency is the Ministry of Regional Development and Infrastructure of Georgia. The implementing agency is the United Water Supply Company of Georgia LLC (UWSCG). Implementation Status: The two contracts for water supply and sewerage network in Mestia and Anaklia were awarded and completed. All of the civil contracts have been awarded. The design-build contract for wastewater treatment plant in Anaklia and the contract for the transmission pipeline in Ureki are both ongoing.



Minor Change 02 Sep 2016 A minor change in scope of Tranche 2 was requested in May 2016 to: (i) add the water supply components in Bakuriani town which will be financed from the expected savings of $2 million under Tranche 2; and (ii) reallocate loan proceeds within the same total amount of SDR 25.047 million of Tranche 2.

Tranche Performance






32.16 100.00 28.58 100.00


Tranche 2 (Loan 2807) is a loan of USD 40.00 million from COL, which was approved on 23 November 2011 and declared effective on 19 December 2011. Tranche 2 is rated as On Track. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 2 have reached $32.16 million (100.0%) and $28.58 million (100.0%), respectively. s of 31 December 2016, the physical progress has reached 69%. Scope Change: There was a minor scope change for this tranche in 2016. Undertaking and Covenants: The government and the executing agency have complied with all financial covenants, while some of the sector development covenants have not been complied with yet, but the EA is in the process of meeting compliance (strengthening of water regulatory body and improvement of UWSCG management). Safeguard covenants (Environment, Resettlement, Health, Gender and Development, and Governance and Anticorruption) are being complied with.


TRANCHE 3 UPDATE




3078

Project Officer Petrone, Massimo Department CWRD

Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

5 Dec 2013 30 Jun 2018Division CWUW


98.00 Source COL


N/A Source N/A


N/A


($ million)

N/A


Tranche Summary

ADB approved the Urban Services Improvement Investment Program - Tranche 3, not exceeding the aggregate amount of $98.00 million on 5 December 2013 including TA amounts (if any). Impact: Improved health of residents in the urban centers of Ureki and Kutaisi Outcome: Improved water supply and sanitation services in the urban centers of Ureki and improved water supply services in the urban centers of Kutaisi Outputs: Water supply system efficiency improved through rehabilitation, replacement, and coverage expanded in Ureki and Kutaisi Geospatial WSS utility management systems operationalized Sewerage and sanitation system efficiency improved through rehabilitation, reconstruction, and coverage expanded in Ureki Management capacity of UWSCG enhanced Implementation Arrangements: The executing agency is the Ministry of Regional Development and Infrastructure of Georgia. The implementing agency is the United Water Supply Company of Georgia LLC (UWSCG). Implementation Status: A design build contract for the STP in Ureki was awarded in April 2015 and overall progress was 40% complete as of 31 December 2016. The construction of water supply system in Kutaisi (Phase II) was awarded in April 2015 and is 25% complete.



N/A N/A N/A






57.08 95.36 24.47 83.11


Tranche 3 (Loan 3078) is a loan of USD 116.00 million from COL, which was approved on 05 December 2013 and declared effective on 17 March 2014. Tranche 3 is rated as On Track. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 3 have reached $57.08 million (95.4%) and $24.47 million (83.1%), respectively. As of 31 December 2016, the physical progress has reached 30% (without considering the utilization of future savings). Scope Change: There was no change in scope for this tranche in 2016. Undertaking and Covenants: The government and the executing agency have complied with all financial covenants, while some of the sector development covenants have not been complied with yet, but the EA is in the process of meeting compliance (strengthening of water regulatory body and improvement of UWSCG management). Safeguard covenants (Environment, Resettlement, Health, Gender and Development, and Governance and Anticorruption) are being complied with.


TRANCHE 4 UPDATE

Tranche Title Urban Services Improvement Investment Program-Tranche 4



3238


Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

11 Dec 2014 30 Jun 2018Division CWUW


108.00 Source OCR


N/A Source N/A


N/A


($ million)

N/A



Tranche Summary

ADB approved the Urban Services Improvement Investment Program-Tranche 4, not exceeding the aggregate amount of $108.00 million on 11 December 2014 including TA amounts (if any). Impact: Improved health of residents in the urban centers of Georgia. Outcome: Water supply and sanitation services improved. Outputs: Infrastructure Improvement: Water supply system efficiency improved through rehabilitation and replacement, and extended coverage. Infrastructure Improvement: Sewerage and sanitation system efficiency improved through rehabilitation and reconstruction, and extended coverage. Project Implementation Support: Public awareness program effectively implemented, information on hygiene and sanitation disseminated. Implementation Arrangements: The executing agency is the Ministry of Regional Development and Infrastructure of Georgia. The implementing agency is the United Water Supply Company of Georgia LLC (UWSCG). Implementation Status: The contracts for the construction of Zugdidi Water Supply System was awarded in October 2015 and it is in good progress (35%). Poti Sewerage System Construction was awarded in December 2015, but ADB has approved the recommendation of EA for the termination of the contract due to non-compliance with General Conditions of the Contract.. The bidding documents for the civil, mechanical and electrical works for Poti STP Construction (POT-02) is under preparation and is expected to be submitted in Q1-2017. The government requested to change the contract type of POT-02 from Design-Build-Operate to Design and Build in November 2016.


Minor Change 02 Sep 2016 A minor change in scope of Tranche 4 was requested in May 2016 to: (i) add the water supply and sanitation works in the Gudauri and Jvari towns to be financed with the savings of $13 million under Tranche 4; and (ii) reallocate loan proceeds within the same total amount of $108 million of Tranche 4.







69.88 79.90 14.00 77.82


Tranche 4 (Loan 3238) is a loan of $108.00 million from OCR, which was approved on 11 December 2014 and declared effective on 30 March 2015. Tranche 4 is rated as Potential Problem. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 4 have reached $69.88 million (79.9%) and $14.00 million (77.8%), respectively. As of 31 December 2016, the physical progress has reached 20.81% (without considering the new contracts to be funded under the savings) or 14% considering the additional packages of Jvari and Gudauri to be awarded in 2017. Scope Change: There was a minor scope change for this tranche in 2016. Undertaking and Covenants: The government and the executing agency have complied with all financial covenants, while some of the sector development covenants have not been complied with yet, but the EA is in the process of meeting compliance (strengthening of water regulatory body and improvement of UWSCG management). Safeguard covenants (Environment, Resettlement, Health, Gender and Development, and Governance and Anticorruption) are being complied with.


TRANCHE 5 UPDATE




3291, 3292


Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

29 Sep 2015 30 Jun 2019Division CWUW


75.00 Source COLOCR


N/A Source N/A


N/A


($ million)

N/A


Tranche Summary

ADB approved the Urban Services Improvement Investment Program - Tranche 5, not exceeding the aggregate amount of $75.00 million on 29 September 2015 including TA amounts (if any). Impact: Improved health of residents in the urban centers of Zugdidi and Mestia (Water Supply and Sanitation Sector Development Plan 2011-2020) Outcome: Sanitation services improved in urban centers of Zugdidi and Mestia Outputs: 1. Infrastructure Improvement: Sewerage and sanitation system efficiency improved through construction and expansion 2. Project Implementation Support: Public awareness program effectively implemented, information on hygiene and sanitation disseminated Implementation Arrangements: The executing agency is the Ministry of Regional Development and Infrastructure of Georgia. The implementing agency is the United Water Supply Company of Georgia LLC (UWSCG). Implementation Status: The contract for the sewerage system construction in Zugdidi (ZUG-02) was awarded in October 2016. The bidding document for the procurement of civil, mechanical and electrical works for STP Construction in Mestia and Zugdidi (Design and Build) is under preparation and is expected to be submitted in Q1-2017.



N/A N/A N/A






30.13 100.00 3.62 100.00


Tranche 5 (Loan 3291/3292) is a loan of $75.00 million from COL, OCR, which was approved on 29 September 2015 and declared effective on 19 January 2016. Tranche 5 is rated as On Track. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 5 have reached $30.13 million (100.0%) and $3.62 million (100.0%), respectively. As of 31 December 2016, the physical progress has reached 1.00%. Scope Change: There were no scope changes for this tranche in 2016. Undertaking and Covenants: The government and the executing agency have complied with all financial covenants, while some of the sector development covenants have not been complied with yet, but the EA is in the process of meeting compliance (strengthening of water regulatory body and improvement of UWSCG management). Safeguard covenants (Environment, Resettlement, Health, Gender and Development, and Governance and Anticorruption) are being complied with.


TRANCHE 6 UPDATE

Tranche Title Urban Services Improvement Investment Program -Tranche 6



3441


Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

4 Oct 2016 30 Sep 2019Division CWUW


99.00 Source OCR


N/A Source N/A


N/A


($ million)

N/A


Tranche Summary

ADB approved the Urban Services Improvement Investment Program -Tranche 6, not exceeding the aggregate amount of $99.00 million on 4 October 2016 including TA amounts (if any). Impact: Improved health of residents in the secondary towns of Georgia (program defined). Outcome: Improved water supply and sanitation services in the secondary towns of Georgia. Outputs: Water Supply and Sewerage system efficiency improved through rehabilitation and reconstruction, and extended coverage. Project implementation support and public awareness program effectively implemented, information on hygiene and sanitation disseminated. Implementation Arrangements: Not Applicable Implementation Status: Not Yet Effective


N/A N/A N/A







0.00 0.00 0.00 0.00




FACILITY UPDATEProject Title MFF - Central Asia Regional Economic Cooperation

Corridor 2 (Mangystau Oblast Sections) Investment Program (Facility)


Country/Regional

Kazakhstan Department CWRD

Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

28 Sep 2010 30 Jun 2017

Division CWTC


Source OCR


Source N/A

Facility Summary

ADB approved the MFF - Central Asia Regional Economic Cooperation Corridor 2 (Mangystau Oblast Sections) Investment Program (Facility) for an aggregate amount not exceeding $800.00 million from ADB’s OCR on 28 September 2010. Impact: Increased national economic growth and regional trade Outcome: Efficient transport network in Mangystau Oblast connecting Aktau to Manasha, Beineu to Akzhigit (Uzbekistan border), and Zhetybai to Fetisovo Outputs: Mangystau Oblast road sections improved and open to traffic MOTC's capacity for project and asset management strengthened Cross-border infrastructure and facilities improved Significant Developments of the Facility: There were no significant developments of the facility including major changes to the roadmap, investment program, policy and legal framework.


1


654.30




166


On Track

167

TRANCHE 2 UPDATE

Tranche Title CAREC Corridor 2 (Mangystau Oblast Section) Investment Program - Tranche 2


Country/Regional Kazakhstan Loan/Grant No.

2967

Project Officer Lim, Susan Department CWRD

Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

13 Dec 2012 31 Oct 2017Division CWTC


371.30 Source OCR


N/A Source N/A


N/A


($ million)

N/A


Tranche Summary

ADB approved the CAREC Corridor 2 (Mangystau Oblast Section) Investment Program - Tranche 2, not exceeding the aggregate amount of $371.30 million on 13 December 2012 including TA amounts (if any). Impact: Contribution to sustainable economic development and regional cooperation under CAREC Outcome: Increased transport connectivity and efficiency in the Mangystau region Outputs: 1. Shetpe-Zhetibay-Aktau road sections reconstructed 2. Zhetybay-Zhanaozen road section reconstructed Implementation Arrangements: The Ministry of Investment and Development (MID) is the project executing agency (EA), and the Committee of Roads (CoR) under MID is the implementing agency. Implementation Status: For Output 1: Shetpe Zhetybay Aktau road sections reconstructed, civil works is ongoing and more than 50% completed. For Output 2: Zhetybay-Zhanaozen road section reconstructed, Project management consultants and construction supervision consultants recruitment, and civil works procurement are ongoing.



N/A N/A N/A






214.40 99.53 167.83 100.00


Tranche (Loan/Grant 2967) is a loan/grant of USD 424.10 million from OCR, which was approved on 13 DECEMBER 2012 and declared effective on 16 JANUARY 2014. Tranche is rated as Actual Problem. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 2 have reached $214.40 million (99.5%) and $167.83 million (100.0%), respectively. Cumulative contract awards reached $215 million (58% of net amount) and cumulative disbursement at $168 million (45%). Scope Change: None. Undertaking and Covenants: The loan covenants have been complied with.



FACILITY UPDATEProject Title MFF- Small and Medium Enterprise Investment Program Project No. 44060-013Country/Regional

Kazakhstan Department CWRD

Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

29 Sep 2010 31 Dec 2015 31 Dec 2018

Division CWPF


Source OCR


Source N/A

Facility Summary

ADB approved the MFF- Small and Medium Enterprise Investment Program for an aggregate amount not exceeding $500.00 million from ADB’s OCR on 29 September 2010. Impact: The project's impact will be sustained job creation and economic growth through SME development. Outcome: SMEs have increased access to medium term credit on a sustainable basis. Outputs: Medium-term financing to SMEs Improved effectiveness and efficiency of Damu Improved financial sector outreach, with a focus on women entrepreneurs Significant Developments of the Facility: There have been no significant scope changes to the investment program and the general policy and legal framework in support of SMEs. This is provided by the Roadmap for Business-2020 and the Strategy Program of Industrial and Innovative Development (2015-2019, SPIID). Limited access to finance is a key constraint identified in the 2050 Development Strategy (Government of Kazakhstan, 2012), which advocates a larger role for SMEs in economic diversification.


-


528.00




170


On Track

171

TRANCHE 3 UPDATE

Tranche Title MFF Small and Medium Enterprise Investment Program Tranche 3


Country/Regional Kazakhstan Loan/Grant No.

3231, 3261

Project Officer Song, Dai Chang Department CWRD

Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

15 Dec 2014 10 Nov 2016 10 Nov 2017Division CWPF


228.00 Source OCR


N/A Source N/A


N/A


($ million)

N/A



Tranche Summary

ADB approved the MFF Small and Medium Enterprise Investment Program Tranche 3, not exceeding the aggregate amount of $228.00 million on 15 December 2014 including TA amounts (if any). Impact: sustained job creation and economic growth. Outcome: SMEs have increased access to medium term credit on a sustainable basis. Outputs: 1. Medium-term financing to SMEs 2. Improved financial sector outreach, with a focus on women entrepreneurs and lending outside of the bigger cities Implementation Arrangements: On November 2016, the loan closing date has been extended by one year from 10 November 2016 to 10 November 2017. A minor change in implementation arrangement was approved on November 2016 to remove one PFI (Kazkommertsbank) as an eligible participating financial institution due to KKB's failure to comply with eligibility criteria. There might be additional implementation changes due to current volatility in the Kazakhstan financial sectors. Implementation Status: As of end December 2016, the four PFIs (including KKB) had disbursed 84% of the total loan amount of US$228 million. The bulk of funding supported short term working capital loans (73%), investments (23%) and refinancing of existing loans (5%). The majority of loans to SMEs were provided to the trade sector, followed by transport and warehousing. The weaker economic growth of the Kazakhstan economy affected the projected disbursement of PFI loans to SMEs which supported the extension of the loan closing date.


N/A N/A N/A






190.57 100.00 228.00 100.00



Tranche 3 (Loan 3231, 3261) is a loan of USD 228.00 million from OCR which was approved on 15 December 2014 and declared effective on 09 October 2015. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 3 have reached $190.57 million (100.0%) and $228.00 million (100.0%), respectively. The PFIs received the Tenge funds on 14 October 2015. To-date, two PFIs have already fully disbursed their allocation of the loan to their respective SME borrowers. The other remaining PFI has disbursed 81% of its loan allocation and has until 01 March 2017 to fully disburse to SME borrowers. Scope Change: There were no scope changes for this tranche in 2016. Undertaking and Covenants: During the mid-term review mission last September 2016, the mission reviewed participating financial intermediaries' (PFIs) compliance with the financial covenants and discussed with each PFI their current SME portfolio and strategy. To-date, all undertakings and covenants are being complied with including all pending audit report submission requirements.



FACILITY UPDATEProject Title MFF- Housing for Integrated Rural Development

Investment ProgramProject No. 44318-013

Country/Regional


Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

31 Aug 2011 31 Dec 2016

Division CWPF


Source OCR


Source N/A

Facility Summary

ADB approved the MFF- Housing for Integrated Rural Development Investment Program for an aggregate amount not exceeding $500.00 million from ADB’s OCR on 31 August 2011. Impact: Rural communities have improved living standards Outcome: Improved rural housing for targeted beneficiaries Outputs: Housing loans provided by PCBs to targeted creditworthy subborrowers in rural areas Improved capacity of local governments to prepare and implement integrated rural development plans and investment promotion strategies Improved enabling environment for entrepreneurs and MSMEs to expand or establish new businesses in rural areas Significant Developments of the Facility: There were no significant developments of the facility including major changes to the roadmap, investment program, and policy and legal framework.


-


500.00




175


On Track

176

TRANCHE 2 UPDATE

Tranche Title Housing for Integrated Rural Development Improvement Program - Tranche 2



3039

Project Officer Sumbal, Asadullah Khan Department CWRD

Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

1 Oct 2013 31 Dec 2016Division URM


200.00 Source OCR


N/A Source N/A


N/A


($ million)

N/A



Tranche Summary

ADB approved the Housing for Integrated Rural Development Improvement Program - Tranche 2, not exceeding the aggregate amount of $200.00 million on 1 October 2013 including TA amounts (if any). Impact: Improved rural housing for targeted beneficiaries. Outcome: Downstreaming of the rural housing scheme for moderate and lower income beneficiaries, with a focus on women. Outputs: Housing loans provided by PCBs to targeted credit worthy subborrowers in rural areas Improved capacity of local governments to prepare and implement integrated rural development plans and investment promotion strategies Improved enabling environment for entrepreneurs and MSEs to establish or expand new businesses in rural areas Implementation Arrangements: The executing agency is the Ministry of Economy (MOE), while the MOE, Qishloq Qurilish Bank and National Bank of Uzbekistan (NBU) are the implementing agencies. Implementation Status: A total of $198.82 million have been released to finance 9,348 subloans by QQB and NBU for construction and purchase of new houses, and $263,235 for capacity development and PIU support. Improvements were made to the designs of HIRD houses to reduce costs and increase environmental sustainability. For example, two-cycle boilers and solar water heaters were provided as options for Component 1. Under Component 2, more than 2,200 local government officials received training in integrated rural development planning and investment promotion strategies. Under component 3, the government implemented 24 additional reforms. Tranche 2 was extended to coincide with the closing of Tranche 3 targeted to close on 31 December 2016. Using its own funds and funds from international financial institutions, including ADB, the government provided credit lines to banks to increase lending to MSEs, particularly rural businesses and businesses owned by women. As of 31 December 2016, estimated total number of MSEs is 218,170. Tranche 2 was rated as Potential Problem due to late submission of 2015 audited financial statements (AFS) and project financial statements (APFS). The participating commercial banks (PCBs), National Bank of Uzbekistan (NBU) and Qishloq Qurilish Bank (QQB), required time to discuss revised audit terms of reference and to contract the auditor. The progress updates of the actions taken by the PCBs have been discussed with the IAs during the last loan review mission conducted in November 2016. The 2015 AFSs and APFSs have been submitted and reviewed and is expected to be approved in January 2017 by CWRD. The last Loan Review Mission was conducted from 17 to 30 November 2016 to (i) review the overall implementation of the projects and progress in meeting the project's objectives and long-term goals; (ii) review compliance with the framework financing agreement, loan covenants, and project agreements; (iii) review the adequacy of the work done so far by the executing agency (EA), the implementing agencies (IAs), and the program implementation unit (PIU); (iv) follow up discussions with the participating commercial banks (PCBs) on the audit finding and discuss progress on implementation of their Action Plans to improve their financial management practices and operational performance; and (v) organize field visits to review construction completion and homebuyer satisfaction. Observation of the visited housing massifs revealed that most of the houses have been occupied. Beneficiaries have access to various social, community and commercial services, and infrastructure. Some of the beneficiaries met and interviewed by the Mission expressed their overall satisfaction with new houses and available amenities and services.



N/A N/A N/A






205.63 99.84 199.35 99.67


Tranche 2 (Loan 3039) is a loan of USD 1,764.65 million from OCR, which was approved on 01 October 2013 and declared effective on 24 October 2013. There were no significant developments of the facility including major changes to the roadmap, investment program, and policy and legal framework. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 2 have reached $205.63 million (99.8%) and $199.35 million (99.7%), respectively. Tranche 2 is rated as potential problem. Scope Change: There were no scope changes for this tranche in 2016. Undertaking and Covenants: Tranche 2 was rated as actual problem under its financial covenants due to late submission by NBU and QQB of their respective 2015 Audited Financial Statements and Audited Project Financial Statements as a result of the longer than expected time taken to discuss revised audit terms of reference and to contract the auditor. The 2015 AFSs and APFSs have been submitted and reviewed and are expected to be approved in January 2017 by CWRD.



FACILITY UPDATEProject Title MFF - Transport Network Development Investment


Country/Regional


Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

20 Sep 2011 31 Dec 2017 31 Dec 2019

Division CWTC


Source ADF


Source AITF

Facility Summary

ADB approved the MFF - Transport Network Development Investment Program for an aggregate amount not exceeding $754.00 million from ADB’s ADF on 20 September 2011. Impact: Increased trade and jobs Outcome: Increased movement of goods and services and better connectivity for people and businesses Outputs: 1. 578 km of reconstructed and rehabilitated regional and national roads 2. 225 km of constructed railway and stations between Mazar-e-Sharif and Andkhoy 4. Strengthened capacity of MPW 5. Improved transport sector governance 3. Operation and maintenance of 75 km of new railway line, loops and stations between Hairatan and Mazar-e-Sharif Significant Developments of the Facility: There were no significant developments of the facility including major changes to the roadmap, investment program, and policy and legal framework.


2


694.00




180


On Track

181

TRANCHE 1 UPDATE

Tranche Title Transport Network Development Investment Program - Tranche 1



0261, 0262

Project Officer Mohibi, Neak Mohammad Department CWRD

Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

12 Oct 2011 31 Dec 2017Division AFRM


189.00 Source ADF


N/A Source N/A


N/A


($ million)

N/A



Tranche Summary

ADB approved the Transport Network Development Investment Program - Tranche 1, not exceeding the aggregate amount of $189.00 million on 12 October 2011 including TA amounts (if any). Impact: Increased trade and jobs in the project areas Outcome: Increased movement of goods and services and better connectivity for people and businesses in the project areas Outputs: 145 km (Bagramy-Sapary, Jabul Saraj-Nijrab; and Faizabad-Beharak sections) of reconstructed, rehabilitated, and appropriately maintained roads Operation and maintenance of 75 km of new railway line, loops and stations between Hairatan and Mazar-e-Sharif Strengthened capacity of MPW Improved transport sector governance. Implementation Arrangements: Ministry of Finance (MOF) is the executing agency and Ministry of Public Works (MPW) is the implementing agency. A project management office (PMO) has been set up under the existing MFF and will administer the program, while a project implementation unit (PIU) established within the PMO will implement the railway component of the project. Implementation Status: All civil works contracts, project management supervision consultancy contracts, loading and unloading equipment contract, and consultancy for railway sub-project have been awarded. Works are in progress.


Minor Change 02 Oct 2016 A minor change in scope to reduce 4 KM of Faizabad-Baharak section (KM 44 to KM 40) from the original scope to enable the contract price to fit remaining budget.

Minor Change 13 Mar 2016 A minor change in scope for reducing the scope of Jabul Saraj-Nijrab road project. Show History.







215.75 100.00 165.13 97.88


Tranche 1 (Loan/Grant 0261) is a loan/grant of USD 222.00 million from ADF, which was approved on 12 OCTOBER 2011 and declared effective on 31 OCTOBER 2011. Tranche 1 is rated as on Track. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 1 have reached $215.75 million (100.0%) and $165.13 million (97.9%), respectively. All civil works and supervision consultant contracts awarded. Work is ongoing on two subprojects (Jabul Saraj-Nijrab 76.64% and Faizabad Baharak 68.85%), However, the civil works contract for Bagrami-Sapary was terminated due to slow work progress and financial incapability of the contractor. Outcome achievement will be delayed due to delays in project implementation. Scope Change: There were two (2) minor scope changes for this tranche in 2016. Undertaking and Covenants: There are a total of 29 covenants for Tranche 1, where in 5 of them have been complied with and the others are ongoing.


TRANCHE 2 UPDATE




0327, 0328


Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

10 Dec 2012 30 Jun 2017 30 Jun 2019Division AFRM


176.00 Source ADF


N/A Source N/A


N/A


($ million)

N/A


Tranche Summary

ADB approved the Transport Network Development Investment Program - Tranche 2, not exceeding the aggregate amount of $176.00 million on 10 December 2012 including TA amounts (if any). Impact: Better connectivity and efficiency of the southern road network with focus on cross border links to Pakistan. Outcome: Rehabilitated and reconstructed sections of national and regional highways. Outputs: 188 km (Sapary-Jalalabad, Sharan-Angoor Ada, and Chan-e-Anjir-Gereshk sections) of reconstructed, rehabilitated, and appropriately maintained national and regional highways. Strengthened capacity of MPW Implementation Arrangements: Ministry of Finance (MOF) is the executing agency and Ministry of Public Works (MPW) is the implementing agency. A project management office (PMO) has been set up under the existing MFF and will administer the program. Implementation Status: All civil works contracts and project management supervision consultancy contracts, FS consultancy contract and three individual consultants contract have been awarded. Work is on going on three sub-projects (Sapary-Jalalabad 13.05%, Sharan Angoor Ada 26.50%, Chah-e-Anjir Greshk 11.4%).



Minor Change 11 Jul 2016 A minor change in scope and reallocation was approved to include the detailed design of Dara-e-Suf Yakawlang road project (Tranche 3) under Tranche 2 and reallocate $4.95 million to Sapary-Jalalabad supervision consultant cost category.

Minor Change 19 Dec 2016 A minor change in scope and reallocation was approved to remove asset management system from Tranche 2 and reallocate $1 million from road asset management to project management cost category.

Tranche Performance






226.94 100.00 71.09 100.00


Tranche (Loan/Grant 0327) is a loan/grant of USD 282.00 million from ADF, which was approved on 10 DECEMBER 2012 and declared effective on 04 APRIL 2013. Tranche is rated as On Track. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 2 have reached $226.94 million (100.0%) and $71.09 million (100.0%), respectively. All civil works (Sapary to Jalalabad, Sharan-Angor Ada and Chah-e-Anjir Greshk) contracts have been awarded and works are ongoing on all three civil works contracts. All three project management supervision consultancy contracts and pre-feasibility study consultancy contract have been awarded. Three individual consultants to support the PMO have been mobilized and are assisting MPW on transport sector matters, procurement, and resettlement. Scope Change: There were two minor scope changes for this tranche in 2016. Undertaking and Covenants: There are a total of 23 covenants for Tranche 2 and all of them are ongoing.


TRANCHE 3 UPDATE




0355

Project Officer Singru, Narendra Department CWRD

Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

11 Sep 2013 31 Dec 2017 31 Dec 2019Division CWTC


220.00 Source ADF


N/A Source N/A


N/A


($ million)

N/A


Tranche Summary

ADB approved the Transport Network Development Investment Program - Tranche 3, not exceeding the aggregate amount of $220.00 million on 11 September 2013 including TA amounts (if any). Impact: Better connectivity and efficiency through a fully complete North-South Corridor Outcome: Rehabilitated and reconstructed sections of national and regional highways Outputs: 178 km (Dar-i-Suf-Yakawlang section of the North-South Corridor) of reconstructed, rehabilitated, and appropriately maintained national and regional highways Community development infrastructure Implementation Arrangements: MPW is the executing agency and the Ministry of Finance is the grant recipient. Implementation Status: The civil work procurement has been delayed because of the high bid prices. Nevertheless, the civil work contract has finally been awarded in December 2016 and the contractor is expected to mobilize by Q2 2017. The contract for supervision consultant is expected to be awarded in Q1 2017. The recruitment of feasibility consultant for Kabul Ring Road is ongoing and currently in contract negotiation stage. The contract is expected to be awarded in Q1 2017.



N/A N/A N/A






204.99 0.00 0.00 0.00


Tranche 3 (Grant 0355) is an ADF grant of USD 230.00 million that was approved on 11 September 2013 and declared effective on 3 January 2014. Tranche 3 is rated On Track. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 3 have reached $204.99 million (.0%) and $.00 million (.0%), respectively. ADB recruitment of the construction supervision consultant, on behalf of the EA, is ongoing. The contract for supervision consultant is expected to be awarded in Q1 2017. The civil works contract was signed on 31 December 2016. Due to poor quality of the feasibility study, the bid prices in were too high and this resulted in failure of the first tender attempt. The BOQ was subsequently revised and the two qualified bidders were allowed to resubmit their bids based on the revised BOQ. As a result, the contract has been awarded to the lowest bidder in December 2016. The construction is expected start by Q2 2017. Scope Change: A minor change in implementation arrangement (consultant selection) was approved on 9 March 2016 in response to EA's request for ADB to facilitate construction supervision consultant recruitment. This was needed because of weak EA capacity in consultant recruitment. A related minor change in Grant 0327-AFG (Tranche 2) approved on 11 July 2016 was processed to expand the work of Sheladia Associates Inc. in order to prepare the detailed design of the Dara-e-Suf to Yakawlang Road, following the decision to change the procurement modality for Tranche 3. This will hopefully fast track implementation of Trance 3. Undertaking and Covenants: Project -specific covenants are being complied and will be due by 30 June 2017. All compliance to covenants are currently rated Satisfactory.


TRANCHE 4 UPDATE




0422, 0423


Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

15 Dec 2014 31 Dec 2019Division AFRM


109.00 Source ADF


N/A Source N/A


N/A


($ million)

N/A



Tranche Summary

ADB approved the Transport Network Development Investment Program - Tranche 4, not exceeding the aggregate amount of $109.00 million on 15 December 2014 including TA amounts (if any). Impact: Better connectivity and efficiency through a fully complete transport corridor traversing Badakhshan province to Tajikistan Outcome: Increased movement of goods and services and better connectivity for people and businesses in the project areas Outputs: 108 km (Beharak-Eshkashim section of the Faizabad-Eshkashim Road) of reconstructed, rehabilitated, and appropriately maintained national and regional highways Community development infrastructure Strengthened capacity of Afghanistan Railway Authority (AfRA) Improved efficiency for traffic traversing Afghanistan along CAREC Corridors 5 and 6 Implementation Arrangements: The existing organization relationships and implementation arrangements for the MFF Transport Network Development Investment Program is intended to cover all tranches. MPW is the executing agency, while the MOF is the recipient of the grant agreements. The program management office (PMO) is assisting MPW to implement all tranches of the investment program in accordance with ADB guidelines and to ensure the timely accomplishment of procurement activities. Implementation Status: The civil works contract for reconstruction and rehabilitation of the Beharak-Eshkashim section of the Faizabad-Eshkashim Road was awarded in December 2016. Recruitment of supervision consultant is ongoing and currently in contract negotiation stage. Individual consultants for road pilot O&M and AfRA capacity building are awarded. Pilot Operations and Maintenance contract was awarded in December 2016.


Minor Change 24 Aug 2016 A minor change in scope was approved to undertake additional detailed condition surveys under the project.







109.98 100.00 11.67 100.00


Tranche 1 (Loan/Grant 0422) is a loan/grant of USD 130.00 million from ADF, which was approved on 15 DECEMBER 2014 and declared effective on 25 MARCH 2015. Tranche 1 is rated as on Track. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 4 have reached $109.98 million (100.0%) and $11.67 million (100.0%), respectively. The civil works contract for reconstruction and rehabilitation of the Beharak-Eshkashim section of the Faizabad-Eshkashim Road was awarded in December 2016. Recruitment of supervision consultant is ongoing and currently in contract negotiation stage. Individual consultants for road pilot O&M and AfRA capacity building are awarded. Pilot Operations and Maintenance contract was awarded in December 2016. Scope Change: There was a minor scope change for this tranche in 2016. Undertaking and Covenants: The government has been collaborating closely with ADB during the implementation of the investment program and has been complying with the undertakings, legal covenants, and other requirements as stipulated in the grant agreement and the FFA.



FACILITY UPDATEProject Title MFF - Second Central Asia Regional Economic

Cooperation Corridor 2 Road Investment ProgramProject No. 44483-024

Country/Regional


Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

23 Aug 2011 31 Dec 2017 31 Mar 2020

Division CWTC


Source OCR


Source N/A

Facility Summary

ADB approved the MFF - Second Central Asia Regional Economic Cooperation Corridor 2 Road Investment Program for an aggregate amount not exceeding $500.00 million from ADB’s OCR on 23 August 2011. Impact: Increased domestic and international trade Outcome: Improved road connectivity, safety, and effective Road Fund management of the Uzbekistan sections of CAREC Corridor 2 Road Outputs: Selected sections of CAREC Corridor 2 Road reconstructed by the Road Fund Road sector sustainability plans implemented by the Road Fund MFF tranches completed as targeted and budgeted Significant Developments of the Facility: There was a minor scope change for the facility in 2016.


1


500.00


Category Date Proposed ChangeMinor Change 26 Apr 2016 Extend the MFF availability period by 27

months from 31 December 2017 to 31 March 2020.


192



On Track

193

TRANCHE 1 UPDATE

Tranche Title Second Central Asia Regional Economic Cooperation Corridor 2 Road Investment Program - Tranche 1



2772


Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

2 Sep 2011 31 Mar 2014 31 Dec 2017Division URM


130.00 Source OCR


N/A Source N/A


N/A


($ million)

N/A


Tranche Summary

ADB approved the Second Central Asia Regional Economic Cooperation Corridor 2 Road Investment Program - Tranche 1, not exceeding the aggregate amount of $130.00 million on 2 September 2011 including TA amounts (if any). Impact: Improved road connectivity, safety, and effective Road Fund management for the Uzbekistan sections of CAREC Corridor 2 Road Outcome: Reconstructed A373 highway section with increased traffic volume is safe and effectively operated and maintained Outputs: Selected section of A373 highway reconstructed by the Road Fund Road sector sustainability plans implemented by the Road Fund Tranche 1 Project completed as targeted and budgeted Implementation Arrangements: The Republican Road Fund under the Ministry of Finance is the executing agency (EA) while the program management unit (PMU) set up within the EA is the implementing agency. Implementation Status: The loan is ongoing and is expected to be completed by the current closing date of 31 December 2017.



N/A N/A N/A






129.19 99.76 93.42 100.00


Tranche 1 (Loan 2772) is a loan of USD 129.50 million from OCR, which was approved on 02 September 2011 and declared effective on 13 January 2012. Tranche 1 is rated as On Track. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 1 have reached $129.19 million (99.8%) and $93.42 million (100.0%), respectively. Following the termination of the first civil works contract in 2015, ADB approved on 16 March 2016 the direct contracting of the approximately 52% remaining works, and on 20 June 2016 the contract award. The contract was signed on 11 August 2016. The construction works started immediately after the contract signing. Based on the value of the civil works completed, the progress is approximately at 31% in December 2016. Scope Change: There were no scope changes for this tranche in 2016. Undertaking and Covenants: Of the 18 covenants, one is complied with and 17 are being complied with.


TRANCHE 2 UPDATE

Tranche Title Second Central Asia Regional Economic Cooperation Corridor 2 Road Investment Program - Tranche 2



2965

Project Officer Ning, Jiangbo Department CWRD

Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

10 Dec 2012 30 Jun 2016 30 Jun 2019Division CWTC


220.00 Source OCR


N/A Source N/A


N/A


($ million)

N/A


Tranche Summary

ADB approved the Second Central Asia Regional Economic Cooperation Corridor 2 Road Investment Program - Tranche 2, not exceeding the aggregate amount of $220.00 million on 10 December 2012 including TA amounts (if any). Impact: Improved road connectivity, safety, and effective management for the Uzbekistan sections of CAREC Corridor 2 Road Outcome: Increased travel efficiency on the reconstructed A373/4R112 highway sections Outputs: Selected section of A373/4R112 highway reconstructed by the Road Fund Remaining sections of Project 1 on A373 completed Implementation Arrangements: The Republican Road Fund under the Ministry of Finance is the executing agency (EA) while the program management unit (PMU) set up within the EA is the implementing agency. Implementation Status: The loan is ongoing and is expected to be completed by the current closing date of 30 June 2019.



N/A N/A N/A






35.32 100.00 0.79 100.00


Tranche 2 (Loan 2965) is a loan of USD 220.00 million from OCR, which was approved on 10 December 2012 and declared effective on 15 August 2013. Tranche 2 is rated as On Track. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 2 have reached $35.32 million (100.0%) and $.79 million (100.0%), respectively. The rebidding of the civil works contract is ongoing. ADB approved the price bid evaluation report in October 2016. Contract signing is expected during the first quarter of 2017. Scope Change: There were no scope changes for this tranche in 2016. Undertaking and Covenants: Of the 21 covenants, 15 are being complied with and 6 will be complied with.


TRANCHE 3 UPDATE

Tranche Title Second Central Asia Regional Economic Cooperation Corridor 2 Road Investment Program (Tranche 3)



3355


Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

9 Dec 2015 31 Dec 2017Division URM


150.00 Source OCR


N/A Source N/A


N/A


($ million)

N/A


Tranche Summary

ADB approved the Second Central Asia Regional Economic Cooperation Corridor 2 Road Investment Program (Tranche 3), not exceeding the aggregate amount of $150.00 million on 9 December 2015 including TA amounts (if any). Impact: better connectivity, efficient transport system, and effective management for the Uzbekistan sections of CAREC Corridor 2 Road (Program-defined [approved MFF Facility Outcome statement, 21 April 2010]) Outcome: improved travel efficiency on the reconstructed A380 highway section. Outputs: Km 228-Km 315 road section in A380 highway reconstructed Capacity for road asset management improved. Implementation Arrangements: The Republican Road Fund under the Ministry of Finance is the executing agency (EA) while the program management unit (PMU) set up within the EA is the implementing agency. Implementation Status: The loan became effective only on 24 November 2016. Procurement of works and recruitment of consultants are ongoing.



N/A N/A N/A






0.00 0.00 0.00 0.00


Tranche 3 (Loan 3355) is a loan of USD 150.00 million from OCR, which was approved on 09 December 2015 and declared effective on 24 November 2016. Tranche 3 is rated as On Track. Progress: The recruitment of project management and construction supervision consultant is ongoing. The consulting services recruitment notice was posted on 26 May 2016. The request for proposal was sent to six shortlisted firms on 14 November 2016. The deadline for submission of proposals has been extended from 12 January 2017 to 26 January 2017. The procurement of works is underway. ADB approved the revised draft bidding documents and invitation for bids (IFB) on 3 November 2016. The IFB is expected to be published during the first quarter of 2017. Scope Change: There were no scope changes for this tranche in 2016. Undertaking and Covenants: Of the 21 covenants, 14 are being complied with and 7 are not yet due.



FACILITY UPDATEProject Title Second Road Network Development Investment


Country/Regional


Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

4 Oct 2012 30 Jun 2021

Division CWTC


Source OCR


Source N/A

Facility Summary

ADB approved the Second Road Network Development Investment Program for an aggregate amount not exceeding $500.00 million from ADB’s OCR on 4 October 2012. Impact: Greater economic growth in Azerbaijan and expanded trade with neighboring countries Outcome: An efficient, adequate, safe, and sustainable southern motorway corridor from Baku in Azerbaijan Outputs: About 63 km of newly constructed motorway between Masalli and Shorsulu. Improved program management and implementation capacities of ARS Improved transport sector governance. Significant Developments of the Facility: There were no significant developments of the facility including major changes to the roadmap, investment program, and policy and legal framework.


2


500.00





On Track

200

TRANCHE 1 UPDATE

Tranche Title Second Road Network Development Investment Program - Tranche 1



2921

Project Officer Wu, Zheng Department CWRD

Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

25 Oct 2012 31 Dec 2016 31 Jan 2018Division CWTC


250.00 Source OCR


N/A Source N/A


N/A


($ million)

N/A


Tranche Summary

ADB approved the Second Road Network Development Investment Program - Tranche 1, not exceeding the aggregate amount of $250.00 million on 25 October 2012 including TA amounts (if any). Impact: Generate economic growth in Azerbaijan and expanded trade with neighboring countries. Outcome: An adequate, efficient, safe, and sustainable road network in Azerbaijan, connecting the country domestically and internationally Outputs: About 30 km section of the newly constructed motorway between Masalli and Jalilabad. Project implementation support to ARS for construction supervision and program management. Implementation Arrangements: The Ministry of Transport (MOT) was the executing agency and Azeravtoyol OJSC (AAY) under MOT was the implementing agency. In accordance with the Order No. 826 of the President of Azerbaijan dated 9 March 2016, AAY now reports directly to the Cabinet of Ministers of Azerbaijan Republic and is subsequently renamed as Azeravtoyol OJSC. Implementation Status: All contracts have been awarded. Project implementation is ongoing. ADB approved on 20 June 2016 the government's request to extend the loan closing date by 13 months, from 31 December 2016 to 31 January 2018, to complete the civil works. Due to changes in legislation in Azerbaijan which resulted in increased prices for fuel (diesel) and bitumen, adjustment to contract price was endorsed by ADB in August 2016 at the request of Azeravtoyol. The civil works contract has undergone one contract variation with the revised contract completion date of 30 June 2017.



N/A N/A N/A






131.15 98.09 121.30 100.00


Tranche 1 (Loan 2921) is a loan of USD 250.00 million from OCR, which was approved on 25 October 2012 and declared effective on 30 July 2013. Tranche 1 is rated as On Track. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 1 have reached $131.15 million (98.1%) and $121.30 million (100.0%), respectively. Civil works for the Alat-Astara Motorway Masalli to Jalilabad Intersection (km 142.89 to km 110.7) is about 75.74% completed as of 30 November 2016. Contract awards (denominated in AZN) was adversely affected due to AZN devaluation. The currency exchange (AZN to USD) dropped twice in 2015 (February and December), from AZN1 = $1.277 on 1 January 2015 to AZN1 = $0.64 on 31 December 2015 and continued the trend in 2016 (AZN1 = $0.54 on 31 December 2016). As a result, contract awards and disbursements (in USD equivalent) dropped and resulted in large amount of loan savings, this downgrades related performance rating. Utilization of the loan savings is being contemplated by the government and ADB is closely following up. Scope Change: There were no scope changes for this tranche in 2016. Undertaking and Covenants: Some covenants are partially complied with; the rest are being complied with and regularly monitored.


TRANCHE 2 UPDATE

Tranche Title Second Road Network Development Investment Program - Tranche 2



3144

Project Officer Wu, Zheng Department CWRD

Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

29 Jul 2014 31 Dec 2020Division CWTC


250.00 Source OCR


N/A Source N/A


N/A


($ million)

N/A


Tranche Summary

ADB approved the Second Road Network Development Investment Program - Tranche 2, not exceeding the aggregate amount of $250.00 million on 29 July 2014 including TA amounts (if any). Impact: sustainable economic growth in Azerbaijan and expanded trade with neighboring countries. Outcome: an adequate, efficient, safe, and sustainable motorway corridor between Shorsulu and Jalilabad in Azerbaijan. Outputs: About 30 km of a newly constructed motorway between Jalilabad and Shorsulu, and open to traffic; Improved program management and implementation capacities of AzerRoadService; and Improved transport sector governance. Implementation Arrangements: The Ministry of Transport (MOT) was the executing agency and Azeravtoyol OJSC (AAY) under MOT was the implementing agency. In accordance with the Order No. 826 of the President of Azerbaijan dated 9 March 2016, AAY now reports directly to the Cabinet of Ministers of Azerbaijan Republic and is subsequently renamed as Azeravtoyol OJSC. Implementation Status: Construction works for the Jalilabad-Shorsulu Intersection are ongoing. Recruitment of consultants for the three studies (road safety, road and pavement standard, and performance-based maintenance contracts), as well as sector capacity development and transport sector governance have not started.



N/A N/A N/A






100.67 95.73 55.47 100.00


Tranche 2 (Loan 3144) is a loan/grant of USD 250.00 million from OCR, which was approved on 29 July 2014 and declared effective on 16 June 2015. Tranche 2 is rated as On Track. Progress: As of 31 December 2016, contract awards and disbursements under Tranche 2 have reached $100.67 million (95.7%) and $55.47 million (100.0%), respectively. Civil works for the Alat-Astara Motorway Jalilabad to ShorsuluIntersection (km 110+700 to km 80+600) is about 27.54% completed as of 30 November 2016. Contract awards (denominated in AZN) was adversely affected due to AZN devaluation. The currency exchange (AZN to USD) dropped twice in 2015 (February and December), from AZN1 = $1.277 on 1 January 2015 to AZN1 = $0.64 on 31 December 2015 and continued the trend in 2016 (AZN1 = $0.54 on 31 December 2016). As a result, contract awards and disbursements (in USD equivalent) dropped and resulted in large amount of loan savings, this downgrades related performance rating. Utilization of the loan savings is being contemplated by the government and ADB is closely following up. Scope Change: There were no scope changes for this tranche in 2016. Undertaking and Covenants: Some covenants are partially complied with; the rest are being complied with and regularly monitored.



FACILITY UPDATEProject Title Second Power Distribution Enhancement Investment


Country/Regional


Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

20 Nov 2015 N/A

Division CWEN


Source COLOCR


Source N/A

Facility Summary

ADB approved the Second Power Distribution Enhancement Investment Program for an aggregate amount not exceeding $990.00 million from ADB’s ADF, OCR on 20 November 2015. Impact: Financial viability of the power distribution sector improved (program-defined). Outcome: Electricity revenues increased in the targeted regions. Outputs: Smart meters and communication equipment installed and functional New billing system and CIS implemented and operational Meter data management system implemented and operational Operations manual updated and monitoring procedure improved. Significant Developments of the Facility: Not Yet Effective


3


400.00





N/A

205

TRANCHE 1 UPDATE

Tranche Title Second Power Distribution Enhancement Investment Program - Tranche 1



3328, 3329

Project Officer Tareen, Adnan Department CWRD

Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

25 Nov 2015 30 Jun 2024Division CWEN




N/A Source N/A


N/A


($ million)

N/A


Tranche Summary

ADB approved the Second Power Distribution Enhancement Investment Program - Tranche 1, not exceeding the aggregate amount of $400.00 million on 25 November 2015 including TA amounts (if any). Impact: Financial viability of the power distribution system improved (project-defined). Outcome: Electricity revenues increased in the targeted regions of IESCO and LESCO. Outputs: Smart Meters and communication equipment installed and functional. Data management system implemented and operational. Operation manuals updated and monitoring procedure improved. New billing and CIS systems implemented and operational. Implementation Arrangements: Not Applicable Implementation Status: Not Yet Effective


N/A N/A N/A







0.00 0.00 0.00 0.00




FACILITY UPDATEProject Title Energy Supply Improvement Investment Program

(Formerly Multitranche Financing Facility II: Energy Development 2014-2023)


Country/Regional


Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

4 Dec 2015 30 Jun 2025

Division CWEN


Source ADF


Source RCPFAITF

Facility Summary

ADB approved the Energy Supply Improvement Investment Program (Formerly Multitranche Financing Facility II: Energy Development 2014-2023) for an aggregate amount not exceeding $750.00 million from ADB’s ADF on 4 December 2015. Impact: improved access to sustainable energy supplies across Afghanistan, aligned with the targets of the National Energy Supply Program of the Government of Afghanistan. Outcome: increased supply of imported and indigenous power. Outputs: New 500 kV and 220 kV power transmission lines, power distribution networks, and high-voltage, direct-current, back-to-back convertor commissioned renewable energy projects constructed domestic gas production and imported volume of natural gas from TAPI gas pipeline increased project preparation and management capacity of energy ministries and agencies improved DABS business plan, and tariff model and framework developed. Significant Developments of the Facility: The MFF recently has been approved. There is no significant developments of the facility including changes to the road map. investment program and policy legal framework.


1


388.23



208



On Track

209

TRANCHE 1 UPDATE

Tranche Title Energy Supply Improvement Investment Program -Tranche 1



0464, 0465


Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

8 Dec 2015 31 Dec 2020Division CWEN


200.00 Source ADF


N/A Source N/A


N/A


($ million)

N/A



Tranche Summary

ADB approved the Energy Supply Improvement Investment Program -Tranche 1, not exceeding the aggregate amount of $200.00 million on 8 December 2015 including TA amounts (if any). Impact: increase in electrification rate and energy security across Afghanistan (project-defined). Outcome: increased supply of imported power from Turkmenistan. Outputs: 306 kilometers (approximately) of 500 kV Transmission Line from Sheberghan to Dashte Alwan operational 66 kilometers (approximately) of 220 kV Transmission Line from Sheberghan to Andkhoy completed Future projects designed and prepared for financing by ADB and other development partners Business plan and tariff model and framework developed for DABS. Implementation Arrangements: Da Afghanistan Breshna Sherkat (Afghan Power Utility) is the Implementing Agency while Ministry of Finance is the Executing Agency. Implementation Status: The Tranche compromise of following sub-projcts which are still in procurement stage: (i) The Sheberghan to Dashte Alwan 306 kilometers (approximately) of 500 kV Transmission Line in procurement stage. expected contract award is Q4 2017. (ii) The 220 kV Transmission Line from Sheberghan to Andkhoy 66 kilometers (approximately) is also in procurement stage. The deadline for submission of bids is 04 January 2017 and expected contract award is Q4 2017. (iii) Program Management Consulting Services in recruitment stage. contract award is expected in Q4 2017. (iv) Preparation of Future projects and Analytical Studies is also in recruitment stage. contract award is expected and; (v) The contract for External Audit will be awarded in 2018.


N/A N/A N/A







0.00 0.00 0.00 0.00


Tranche (Loan/Grant 0464) is a loan/grant of USD 200.00 million from ADF, which was approved on 08 DECEMBER 2015 and declared effective on 07 APRIL 2016. Tranche is rated as On Track. Progress: The Sheberghan to Dashte Alwan 306 kilometers (approximately) of 500 kV Transmission Line in procurement stage. expected contract award is Q4 2017. The 220 kV Transmission Line from Sheberghan to Andkhoy 66 kilometers (approximately) is also in procurement stage. The deadline for submission of bids is 04 January 2017 and expected contract award is Q4 2017. The EoI for The consultancy of Future projects, Business plan and tariff model and framework developed for DABS and implementation supervision consultant are in recruitment progress. expected contract award is Q4 2017. Scope Change: There were no scope changes for this tranche 20 2016. Undertaking and Covenants: All undertakings and covenants are being complied with.


TRANCHE 2 UPDATE

Tranche TitleEnergy Supply Improvement Investment Program Tranche 2 (Formerly Multitranche Financing Facility II: Energy Development 2014-2023)



0521, 0522, 0523


Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

5 Dec 2016 30 Jun 2023Division CWEN


188.23 Source ADF


N/A Source N/A


N/A


($ million)

N/A


Tranche Summary

ADB approved the Energy Supply Improvement Investment Program Tranche 2 (Formerly Multitranche Financing Facility II: Energy Development 2014-2023), not exceeding the aggregate amount of $188.23 million on 5 December 2016 including TA amounts (if any). Impact: Improved access to sustainable energy supplies across Afghanistan, aligned with the targets of the National Energy Supply Program of the Government of Afghanistan (program-defined) Outcome: Increased supply of imported and indigenous power Outputs: New 500 megawatts high voltage direct current back to back voltage source convertor station commissioned at Dashte Alwan New 180 kilometers of 220-kV transmission line commissioned from Doshi to Bamyan New 220/20-kV substation commissioned in Bamyan with a distribution network 3,000 kilometers including 20,000 new connections. Implementation Arrangements: Not Applicable Implementation Status: Not Yet Effective



N/A N/A N/A






0.00 0.00 0.00 0.00




FACILITY UPDATEProject Title Second Power Transmission Enhancement Investment


Country/Regional


Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

23 Aug 2016 N/A

Division CWEN


Source COLOCR


Source N/A

Facility Summary

ADB approved the Second Power Transmission Enhancement Investment Program for an aggregate amount not exceeding $810.00 million from ADB’s ADF, OCR on 23 August 2016. Impact: Energy market transparency and efficiency improved Transmission infrastructure and management improved. Outcome: Coverage reliability and quality of the power transmission service in Pakistan improved. Outputs: Rehabilitation, augmentation and expansion of the high voltage transmission network. NTDC and CPPA-G operations and management strengthened Significant Developments of the Facility: Not Yet Effective


3


125.00





N/A

215

TRANCHE 1 UPDATE

Tranche Title Second Power Transmission Enhancement Investment Program - Tranche 1



3419, 3420


Key DatesApproval

DateOriginal

Closing DateRevised

Closing Date

31 Aug 2016 31 Dec 2026Division CWEN




N/A Source N/A


N/A


($ million)

N/A


Tranche Summary

ADB approved the Second Power Transmission Enhancement Investment Program - Tranche 1, not exceeding the aggregate amount of $125.00 million on 31 August 2016 including TA amounts (if any). Impact: (i) Transmission infrastructure and management improved, and (ii) Energy market transparency and efficiency improved. Outcome: Coverage reliability and coverage of the power transmission service in Pakistan improved. Outputs: Rehabilitation, augmentation, and expansion of the high voltage transmission network Operations and management of NTDC strengthened Implementation Arrangements: Not Applicable Implementation Status: Not Yet Effective


N/A N/A N/A







0.00 0.00 0.00 0.00



MFF ANNUAL PROGRESS REPORT DEFINITIONS

Ref. No. Term MeaningFACILITY UPDATE

1. Project Title - Indicates the MFF name following this naming convention: MFF – {Facility Name}

2. Project No. - Indicates the facility’s 8-digit project number3. Country/Regional - Indicates the name of the country covered by the facility.4. Department - Indicates the name of the department processing the MFF.5. Approved Date - Indicates the date of ADB approval of the facility.6 Original Closing Date - Indicates the facility’s original closing date.7. Revised Closing Date - Indicates the facility’s revised closing date.8. Division - Indicates the name of the division processing the MFF.9. MFF Amount ($ million) - Indicates the approved MFF amount.10. Source - Indicates the funding source/s of the MFF approved amount,

whether it is OCR/ADF.11. Cofinancing Amount ($

million)- Indicates the DVA cofinancing amount. If not applicable, “N/A” is

displayed.12. Source - Indicates the source of the cofinancing amount. If not applicable,

“N/A” is displayed.13. Facility Summary

Impact and Outcome - States the facility’s impact and outcome as indicated in the DMF report.

Outputs - States the facility’s outputs as indicated in the DMF report.Significant Development of the facility

- Describes any significant development of the facility including major changes to the roadmap, investment program, and policy and legal framework.

14. Expected Total No. of Tranches

- Indicates the number of envisioned or pipelined tranches as presented in the RRP, if any.

15. Approved Tranches to Date

- Indicates the number of approved tranches to date.

16. Approved Tranche Amount to Date

- Indicates the current year’s cumulative tranche amount to date.

17. Facility Change in ScopeCategory - Indicates whether the category for the facility’s proposed change is

major or minor.Date Approved - Indicates the date when the request for change in scope for the

facility is approved.Proposed Change - Summarizes the content of the change in scope request; revisions

to outcome, outputs and/or inputs; and new targets and/or indicators.

18. Completed Tranches to Date

- Indicates the URL of the completed tranches’ Project Completion Report (PCR).

19. Facility Completion Report

- Indicates the URL of the Facility Completion Report (FCR). Note that a facility is completed when all its tranches are closed.

20. Overall MFF Performance Rating (On Track, Potential Problem, At Risk)

- Indicates the rating of the MFF. The facility will be rated on the basis of 3 separate parameters:

(i) MFF delays, (ii) Tranche performance, and (iii) Compliance with undertakings.

Poor performance (red rating) on account of the 3 indicators will place the facility ‘at risk’ and may lead to its suspension and

218


Ref. No. Term MeaningFACILITY UPDATE

possible cancellation; poor performance (red rating) on account of 2 parameters will indicate potential problems and would require RDs to draw an action plan to rectify the facility‘s performance.

MFF Delays - Contributors to MFF Delays are:(i) Substantial delays in tranche processing, and/or (ii) Substantial delays in tranche implementation.

Timeliness in Tranche processing will be evaluated against the tranche sequencing program forecasted in the RRP. Tranches processed …

(i) within one year of the forecasted period will be given an ‘on track‘ (green) rating;(ii) between 1 and 2 years of the forecasted date will be given a ‘Potential problem‘ (yellow) rating, and (iii) beyond 2 years of the forecasted date will be given an ‘at risk‘ (red) rating.

For MFFs where a time-bound tranche sequencing program was not forecasted in the RRP, only, MFF delays will be determined on the following grounds:

(i) if less than 2 years have passed since approval of the previous tranche (up to the stage where the entire MFF has been turned into tranches), a green rating is granted,(ii) if more than 2 years but less than 3 years have elapsed, a yellow rating is given; and(iii) if more than 3 years have elapsed, a red rating applies.

Compliance with MFF undertaking

- The assessment should include compliance with Safeguards and PCP requirements, as well as any timely Reform implementation targets.

(i) Non-compliance with more than 3 undertaking will place the facility in ‘red‘ (unsatisfactory).(ii) Non-compliance with any ‘safeguards‘, ‘PCP‘ and/or ‘reform implementation‘ undertakings will place the MFF in ‘red‘ (unsatisfactory).(iii) Non-compliance with 2 undertakings (other than those outlined in the preceding sentence), will place the facility as ‘partly satisfactory‘. (iv) Compliance with all undertakings with a maximum of one exception (other than those outlined before), will signify a ‘satisfactory‘ criteria.

Tranche Performance - (i) Poor performance (‘at risk‘) on 33% or more of the MFF tranches (by number) would place the MFF ‘at risk‘ (red).(ii) ‘Potential problem‘ rating on 33% or more of the MFF tranches (by number) would categorize the MFF as ‘potential problem‘ (yellow), unless a red rating is triggered.(iii) Other ratings will result ‘on track‘ (green)

219


Ref. No. Term MeaningTRANCHE UPDATE

1. Tranche Title - Indicates the tranche name following this naming convention: MFF – {tranche name} (Tranche {tranche no.})

2. Project No. - Indicates the tranche’s 8-digit project number.3. Country/Regional - Indicates the name of the country covered by the tranche.4. Loan/Grant No. - Indicates the tranche’s 4-digit loan number. If loan numbers are

available 5. Project Officer - Indicates the name of the mission leader or project implementation

officer.6 Department - Indicates the name of the department processing the tranche.7. Tranche Approved Date - Indicates the tranche’s date of ADB approval.8. Original Closing Date - Indicates the tranche’s original loan closing date.9. Revised Closing Date - Indicates the tranche’s revised loan closing date.10. Division - Indicates the name of the division processing the tranche.11. Tranche Amount

including cofinancing ($ million)

- Indicates the tranche’s total approved and cofinancing amount.

12. Source - Indicates the funding source of the tranche amount, whether it is OCR/ADF.

13. Cofinancing amount ($ million)

- Indicates the tranche’s cofinancing amount.

14. Source - Indicates the funding source of the cofinancing amount.15. Estimated Cost Overrun

Amount- Indicates the cost overrun amount incurred by the tranche at the

time of preparation of the MFF Annual Progress Report. If not applicable, “N/A” is indicated.

16. Estimated Amount Used for detailed engineering design (DED)

- Indicates the amount used for DED. If not applicable, “N/A” is indicated.

17. Project Data Sheet (PDS)

- Indicates the URL for the tranche’s PDS.

18. Tranche SummaryImpact and Outcome - States the tranche’s impact and outcome as indicated in the DMF

report.Outputs - States the tranche’s outputs as indicated in the DMF reportImplementation Arrangements

- Briefly highlights the tranche’s implementation arrangements.

Implementation Status - Briefly highlights the tranche’s implementation progress.19. Tranche Change in

ScopeCategory - Indicates whether the category for the proposed change is major or

minor.Date Approved - Indicates the date when request for change in scope was approved.Proposed Change - Summarizes the content of the change in scope request; revisions

to outcome, outputs and/or inputs; and new targets and/or indicators.

20. Tranche Performance - Indicates the performance rating of the tranche as indicated in the 2011 MFF Staff instructions and PAI 5.08. It is rated in the following categories: (i) financial, (ii) contract awards, (iii) disbursements, (iv) safeguards, and (v) technical.

21. Contract Awards & Disbursements

- Indicates the tranche’s cumulative amount and rate of the contract awards and disbursement in the year of the preparation of the MFF

220


Ref. No. Term MeaningTRANCHE UPDATE

(Cumulative) annual report.22. Significant

Developments During the Year

Physical Progress - Briefly describes the physical progress of the tranche.Nonphysical Progress - Briefly describes the nonphysical progress of the tranche.Scope Change - Briefly describes the tranche’s request for change in scope, if any.Undertaking with Covenants

- Briefly describes the number of undertakings and covenants that the tranche has complied with.

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MFF Progress Report 34339013 For the meaning of each item, please refer to the MFF Annual Report...

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Transcript of MFF Progress Report 34339013 For the meaning of each item, please refer to the MFF Annual Report...