This report evaluates the Gas Distribution Rehabilitation and Energy Efficiency Project, financed by a loan worth US$106.5 million from the World Bank, which aimed to increase the efficiency of energy use in slected regions of Russia, to improve the efficiency and safety of gas distribution, and support policy reforms in the gas subsector.
The project had three components:
- gas distribution network improvements;
- energy efficiency investments; and
- technical assistance.
An initial program aimed at greenhouse gas reduction, and financed under the Global Environment Facility, is also linked to the project
The Project was rated as having an unsatisfactory outcome in terms of sustainability, modest institutional development impact, satisfactory performance by the Bank, and an unsatisfactory performance by the Borrower. An increase in the efficiency of energy use was largely achieved.
Some lessons learned include:
- Local leadership and expertise, and availability of counterpart funding, are essential for success;
- The Borrower should establish and maintain arrangements to ensure interagency coordination and single-point responsibility for project deliverables;
- When appraising regional sub-projects, pay special attention to assessing the creditworthiness of sub-borrowers.