Azerbaijan - Power Transmission Project

The Power Transmission Project for Azerbaijan received a satisfactory outcome rating with moderate risk to development outcome. The Bank received a satisfactory performance rating while the Borrower received a moderately satisfactory outcome rating. One restructuring took place during this project. The closing date was extended by one year. While significant progress had been made, with implementation of the Supervisory Control and Data Acquisition (SCADA) system, additional time was required for completion of the remaining tasks to enable to system to become fully operational. Four key lessons were taken from this project and they are as follows: (1) Government commitment to reform is essential and needs to be maintained to ensure sustainability of the Project outcomes. The GovernmentÂ’s stance on financial reforms was crucial to achieving PDOs. (2) The difficulty of introducing modern SCADA/ Energy Management System (EMS) must not be underestimated with respect to complexity, unexpected developments during installation and implementation time. (3) Commitment and strong Project ownership by an implementing agency is critical. During the life of the Project, Azerenerji went through a process of a dramatic transformation: from a Soviet-type state-owned utility to a corporatized public entity. (4) Close bank supervision and continuity of staff is essential for a successful project implementation. Introduction of SCADA/ EMS, in parallel with energy sector reforms, is a complex, multifaceted undertaking and requires more than normal Bank supervision.

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Last updated November 14, 2018
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