Document of The World Bank Report No: ICR00002676 IMPLEMENTATION COMPLETION AND RESULTS REPORT (IDA-39510, IDA-44920) ON A CREDIT IN THE AMOUNT OF SDR 31.1 MILLION (US$45 MILLION EQUIVALENT) AND AN ADDITIONAL FINANCING IN THE AMOUNT OF SDR 4.3 MILLION (US$7 MILLION EQUIVALENT) TO THE REPUBLIC OF BENIN FOR AN ENERGY SERVICE DELIVERY PROJECT IN SUPPORT OF THE FIRST PHASE OF THE ENERGY SERVICES DELIVERY PROGRAM September 30, 2013 Energy Practice 2 Sustainable Development Department Country DepartmentAFCF2 Africa Region CURRENCY EQUIVALENTS Exchange Rate Effective August, 13, 2013 Currency Unit= CFAF US$1.00 = 493CFAF US$ 1.00= SDR 0.66 FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS ABE Agence Béninoise pour l'Environnement (Benin Environmental Agency) AFIC Agence Forestière Inter-Communale (Inter-Communal Agency for Forest Resource Management) AfDB African Development Bank APL Adaptable Program Lending BOAD Banque Ouest Africaine de Développement CAA Caisse Autonome d’Amortissement CAS Country Assistance Strategy CPS Country partnership Strategy CDM Clean Development Mechanism CEB Communauté Electrique du Bénin (Benin-Togo Generation and Transmission Power Company) CENATEL Centre National de Télédétection et de Surveillance du Couvert Forestier (National Forest Remote Monitoring Center) CIE Compagnie Ivoirienne d’Electricité CNCD Commission Nationale des Combustibles Domestiques (National Forest Cover Remote and Monitoring Center COFORMO Communauté Forestière de la Région du Moyen Ouémé DGE Direction Générale de l'Energie (Directorate of Energy) DGFRN Direction de Gestion des Forêts et des Ressources Naturelles (Directorate of Forests and Natural Resources) ECOWAS Economic Community of West African States EIB European Investment Bank ESDP Energy Services Delivery Project ERR Economic Rate of Return FCFA Franc de la Communauté Financière d’Afrique (Local Currency) GEF Global Environment Facility GoB Government of Benin GWh Giga Watt Hour HV High Voltage IAME Increased Access to Modern Energy IDA International Development Association IP Implementation Progress ii kWh Kilo Watt hour LPG Liquified Petroleum Gas MDG Millennium Development Goal MERPMEDER Ministère de l’Energie, des Recherches Pétrolières et Minières, de l’Eau et du Développement des Energies Renouvelables) MW MegaWatt NDF Nordic Development Fund NEPA Nigerian Electric Power Authority NGO Non-Governmental Organization NPV Net Present Value PDO Project Development Objective PRSP Poverty Reduction Strategy Paper SBEE Société Béninoise d’Energie Eléctrique (Benin Distribution Power Utility) SDR Special Drawing Rights SIEF Système d’Information Ecologique et Forestière SIEP Système d’Information et d’Evaluation Permanente SIGFIP Système Intégré de Gestion des Finances Publiques (Finance and Accounting System for Public Finance) SME Small Medium Enterprise SSA Sub-Saharan Africa WAGP West African Gas Pipeline WAPP West African Power Pool Vice President: Makhtar Diop Country Director: Madani M. Tall Sector Manager: Meike van Ginneken Project Team Leader: Franklin Koffi S.W. Gbedey ICR Team Leader: Vonjy M. Rakotondramanana iii iv BENIN ENERGY SERVICE DELIVERY PROJECT CONTENTS Data Sheet A. Basic Information B. Key Dates C. Ratings Summary D. Sector and Theme Codes E. Bank Staff F. Results Framework Analysis G. Ratings of Project Performance in ISRs H. Restructuring (if any) I. Disbursement Profile 1. Project Context, Development Objectives and Design ............................................................... 1 2. Key Factors Affecting Implementation and Outcomes .............................................................. 8 3. Assessment of Outcomes .......................................................................................................... 14 4. Assessment of Risk to Development Outcome ......................................................................... 21 5. Assessment of Bank and Borrower Performance ..................................................................... 22 6. Lessons Learned........................................................................................................................ 25 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners........................... 26 Annex 1. Project Costs and Financing .......................................................................................... 27 Annex 2. Outputs by Component.................................................................................................. 28 Annex 3. Economic and Financial Analysis ................................................................................. 33 Annex 4. Bank Lending and Implementation Support/Supervision Processes............................. 37 Annex 5. Summary of Borrower's ICR and/or Comments on Draft ICR ..................................... 39 Annex 6. List of Supporting Documents ...................................................................................... 60 v Data Sheet A. Basic Information BJ-Energy Service Country: Benin Project Name: Delivery APL (FY05) Project ID: P079633 L/C/TF Number(s): IDA-39510,IDA-44920 ICR Date: 09/30/2013 ICR Type: Core ICR GOVERNMENT OF Lending Instrument: APL Borrower: BENIN Original Total XDR 31.10M Disbursed Amount: XDR 29.61M Commitment: Revised Amount: XDR 35.40M Environmental Category: B Implementing Agencies: Communauté Electrique du Bénin (CEB) Société Béninoise d’Energie Electrique (SBEE) Ministère de l'Energie, des Recherches Pétrolières et Minières et de l'Eau Cofinanciers and Other External Partners: Government of Benin West African Development Bank (WADB) Nordic Development Fund Société de Gestion Intérimaire B. Key Dates Revised / Actual Process Date Process Original Date Date(s) Concept Review: 10/08/2002 Effectiveness: 04/25/2005 04/25/2005 06/02/2008 Appraisal: 02/23/2004 Restructuring(s): 06/28/2010 12/30/2011 Approval: 07/06/2004 Mid-term Review: 07/01/2007 Closing: 12/31/2008 12/31/2012 C. Ratings Summary C.1 Performance Rating by ICR Outcomes: Moderately Unsatisfactory Risk to Development Outcome: Moderate Bank Performance: Moderately Satisfactory Borrower Performance: Moderately Satisfactory vi C.2 Detailed Ratings of Bank and Borrower Performance (by ICR) Bank Ratings Borrower Ratings Moderately Quality at Entry: Government: Moderately Satisfactory Unsatisfactory Implementing Quality of Supervision: Moderately Satisfactory Moderately Satisfactory Agency/Agencies: Overall Bank Overall Borrower Moderately Satisfactory Moderately Satisfactory Performance: Performance: C.3 Quality at Entry and Implementation Performance Indicators Implementation QAG Assessments (if Indicators Rating Performance any) Potential Problem Quality at Entry Project at any time Yes None (QEA): (Yes/No): Problem Project at any Quality of Supervision Yes None time (Yes/No): (QSA): DO rating before Satisfactory Closing/Inactive status: D. Sector and Theme Codes Original Actual Sector Code (as % of total Bank financing) Central government administration 24 24 Sub-national government administration 12 11 Transmission and Distribution of Electricity 64 64 Theme Code (as % of total Bank financing) Infrastructure services for private sector development 20 20 Land administration and management 20 20 Regulation and competition policy 20 20 Rural services and infrastructure 20 20 Urban services and housing for the poor 20 20 vii E. Bank Staff Positions At ICR At Approval Vice President: Makhtar Diop Callisto E. Madavo Country Director: Madani M. Tall Pedro Alba Sector Manager: Meike van Ginneken Yusupha B. Crookes Project Team Leader: Franklin Koffi S.W. Gbedey Said R. Mikhail ICR Team Leader: Vonjy M. Rakotondramanana ICR Primary Author: Vonjy M. Rakotondramanana F. Results Framework Analysis Project Development Objectives (from Project Appraisal Document) The development objectives are to: (a) accelerate, in a commercially viable manner, the use of electricity for economic growth and social services and thus improve the quality of life in un- served and underserved areas (peri-urban and rural); (b) improve governance and ensure the financial sustainability of the sector, through the involvement of the private sector in partnership with the public sector; (c) reduce deforestation and increase access and diversify choice to renewable and cleaner fuels to the household and SME sectors; and (d) promote regional cooperation while protecting the environment in a sustainable manner. Revised Project Development Objectives (as approved by original approving authority) The PDOs were not revised throughout the project implementation. (a) PDO Indicator(s) **NB. In the table below, the indicators which have been monitored throughout the life of the project have been disaggregated to better reflect the results for the purposes of the analysis. Although the data is the same, the presentation below differs from the manner in which the results have been captured in implementation status reports. Original Target Actual Value Values (from Formally Revised Achieved at Indicator Baseline Value approval Target Values Completion or documents) Target Years Reliable electricity supply available for northern Benin through the interconnected grid Indicator 1 : from the South. Limited power Reliable power Reliable electricity availability in northern supplied to northern supply available 89GWh supplied from Benin through diesel Benin through the Value for northern Benin the South to northern power plant at Parakou interconnected grid (quantitative or through the Benin through the and Djougou which is as measured in qualitative) interconnected newly interconnected often not able to operate GWh supplied from grid from the grid. due to lack of diesel. southern grid and South. 0GWh supplied from the through higher viii southern grid. stability of overall grid as southern transmission loop can be fully operated. Date achieved 07/31/2004 07/31/2004 06/30/2008 12/31/2012 Comments (incl. % This target has been achieved. achievement) The number of outages in Parakou and Djougou shall amount to an average of no more Indicator 2 : than two per month/two hours per outage. Reliable power supplied to northern Southern transmission Inability to manage Benin through the loop fully operated but southern transmission Reliable electricity interconnected grid the average of less loop leading to frequent supply available as measured in than two per Value outages and under supply for northern Benin GWh supplied from month/two hours per quantitative or of electricity as power through the southern grid and outage in Parakou and Qualitative) cannot be jointly interconnected through higher in Djougou has not imported from Ghana, grid from the stability of overall been achieved due to Côte d’Ivoire, and South. grid as southern CEB supply capacity Nigeria. transmission loop constraint. can be fully operated. Date achieved 07/31/2004 07/31/2004 06/30/2008 12/31/2012 Comments This outcome has not been achieved, although the more loosely defined corresponding (incl. % target has been reached. achievement) Off-grid strategy completed and approved by MMEH and SBEE concession agreement Indicator 3 : signed and implemented. Strategy for off- Off-grid strategy grid developed and developed and policy plan for endorsed. SBEE implementation technical and financial endorsed. SBEE performance has outsources key improved. Higher SBEE fully publicly Off-grid strategy areas and its power supply owned and low financial completed and financial and reliability established and technical Value approved by technical in Cotonou and Porto performance. No studies quantitative or MMEH and SBEE performance Novo as per voltage available to expand the Qualitative) concession improved. Higher fluctuations and power electricity system. No agreement signed reliability of power outage records. strategy or policy for off- and implemented. supply in Cotonou Economic Viability grid electrification and Porto Novo. Study for Adjarala Key feasibility hydro plant completed. studies completed The update of the to facilitate closing ESIA/RAP is ongoing. the generation/ The panel of experts transmission gap. has been recruited. Date achieved 07/31/2004 07/31/2004 06/30/2008 12/31/2012 ix This target was partially achieved. The off-grid electrification strategy was completed by the Government outside of the project and has been implemented. In addition, SBEE situation has improved. Most planned studies and Adjarala preparatory work were Comments completed. Nevertheless, SBEE’s financial performance has not improved as much as (incl. % initially planned, such that privatization was not pursued and the utility has failed to achievement) outsource significant areas of operation to the private sector. In addition, some studies were only partly completed under the project before being dropped or financed directly by the Government at project closing. Power provided to northern Benin through the Togolese power grid, as measured in GWh Indicator 4 : supplied The construction Power provided to In 2012, 89GWh was of the transmission northern Benin Value No power provided to supplied to the line in Bénin and through the quantitative or northern Benin through Northern Benin from in Togo will be Togolese power Qualitative) the Togolese power grid the Togolese power completed and grid, as measured in grid operational GWh supplied Date achieved 07/31/2004 07/31/2004 06/30/2008 12/31/2012 Comments (incl. % This target has been achieved. achievement) Indicator 5 : Establishment and effective functioning of the CNCD Value No institutional CNCD established CNCD established and quantitative or frameworks exists and effective. effective. Qualitative) Date achieved 07/31/2004 07/31/2004 12/31/2012 Comments (incl. % This target has been achieved. achievement) Indicator 6 : Establishment and effective functioning of the AFIC Inter-Communal Inter Communal Agency for natural Value Agency for natural No institutional resource quantitative or resource management frameworks exists management Qualitative) (AFIC) established established and and effective. effective Date achieved 07/31/2004 07/31/2004 12/31/2012 Comments This target has been partially achieved. AFIC has been established but was only (incl. % intermittently effective under the project. achievement) Indicator 7 : Natural resource management rights effectively devolved to rural communities Natural resource Value management rights Natural resource No institutional quantitative or effectively management rights frameworks exists Qualitative) devolved to rural effectively devolved. communities Date achieved 07/31/2004 07/31/2004 12/31/2012 Comments (incl. % This target has been achieved. achievement) x (b) Intermediate Outcome Indicator(s) Original Target Actual Value Formally Values (from Achieved at Indicator Baseline Value Revised Target approval Completion or Values documents) Target Years Indicator 1 : Power sector reform completed Regulatory agency There is a private SBEE has been established sector partner in outsources key by decree. No private sector SBEE business. A areas of Communication and engagement in SBEE. No regulatory operation. The Value PR activity on sector regulatory agency framework is regulatory (quantitative reform has been intervening. No established. agency is set or qualitative) completed. SBEE has communication activity or The Benin public is up. Public well opened the strategy in place. well informed about informed about manufacturing and the power sector GoB energy supply of utility poles reform restructuring. policy. to the private sector. Date achieved 07/31/2004 07/31/2004 06/30/2008 07/31/2012 Comments This intermediate outcome has been partially achieved. While some reforms have taken (incl. % place, significant outsourcing of operations has not yet been achieved and the originally achievement) anticipated private sector participation in SBEE is still under discussion. Indicator 2 : Engineering studies completed The following studies The following have completed: been completed: Onigbolo- Feasibility and Parakou safeguard studies for transmission Onigbolo-Parakou line (TL); and Sakete-Porto Sakete-Porto Novo; load Novo TL; Load No technical information or All studies are management and Value management feasibility studies available launched within the energy efficiency (quantitative and energy on key energy infrastructure first year of project study for government or Qualitative) efficiency for to be developed. implementation. buildings; economic government analysis of the buildings; Adjarala hydro preparatory generation project; studies for terms of reference for Adjarala; study Adjarala engineering for Maria Gléta consultant; study for as site for Maria Gléta site. regional power plant. Date achieved 07/31/2004 07/31/2004 06/30/2008 12/31/2012 This intermediate outcome has been partially achieved. The preparation of standard Comments bidding documents for IPPs initially envisaged under the project was started under the (incl. % project but dropped at closing, while the establishment of a panel of experts and hiring achievement) of an engineering consultant for Adjarala is still underway, now financed directly by CEB. xi Indicator 3 : Investment component (Transmission and distribution system expanded) 161kV transmission link in place and fully operational. Southern transmission ring can be 161kV transmission fully operated link constructed and leading to fully operational. higher Southern No 161kV transmission 161kV transmission reliability and transmission ring system in place. Southern system completed lower frequency fully operational with transmission ring cannot be by end 2006. The of outages. Value higher reliability and operated leading to frequent Benin Gas turbine Voltage (quantitative lower frequency of outages. Voltage ready to run on fluctuations or qualitative) outages. Operator fluctuations above +/- 7% WAGP. Voltage below +/-7% at logs showed voltage leading to frequent tripping fluctuations are 5 substations in fluctuations were of LV network within +/- 7% Cotonou and below +/-7% at 5 Porto Novo. substations in Additional Cotonou and Porto Financing Novo allows for the rehabilitation of 1 sub-station in addition to the 4 targeted under the original project. Date achieved 07/31/2004 07/31/2004 06/30/2008 12/31/2012 Comments (incl. % This intermediate outcome has been achieved. achievement) Environmental and social component: populations affected by the transmission line are Indicator 4 : compensated and environmental audit is carried out Affected populations are Compensation has satisfied. been completed and Affected population not Affected Environmental the affected compensated. No populations are audit report for populations are Value environment audit report for satisfied. SBEE is satisfied. (quantitative SBEE. No environmental environmental audit prepared. Environmental audits or Qualitative) audit report for Sèmè Oil report for SBEE is Environmental for SBEE and Sèmè field. prepared audit for Sèmè Oil field were Oil field is incomplete at project prepared close. xii Date achieved 07/31/2004 07/31/2004 06/30/2008 12/31/2012 Comments This intermediate outcome has been partially achieved. While affected populations were (incl. % satisfied with compensation, the environmental audit for SBEE was dropped at project achievement) closing that of the Sèmè Oil Field remains unfinished. Indicator 5 : Institutional strengthening and capacity building improved Minimum number of Staff at CEB and Ministry 160 trained staff in trained staff in of Energy is lacking key core technical, core technical, technical skills needed to Minimum number planning and Value planning and plan, maintain, and operate of trained staff. maintenance areas. (quantitative maintenance a power system. The Vacant positions are Ministry of energy or Qualitative) areas. Ministry Ministry of energy is filled up. has adequate staff in of energy lacking staff in core key areas of disposes of staff competency areas. competence in key areas of competence Date achieved 07/31/2004 07/31/2004 06/30/2008 12/31/2012 Comments (incl. % This intermediate outcome has been achieved. achievement) Biomass and inter-fuel substitution management : effective sound management of the Indicator 6 : domestic combustible sub-sector CNCD effective. CNCD effective by Effective sub- CNCD setup under June 2004.Effective sector reform. project and now sub-sector reform by SIEP is set up effective with support mid-term. SIEP is and fully from Bank-financed set-up and operates operational. IAME project. Sub- by year 2. AFIC is AFIC is sector reform was Value No institutional framework created and operates established and successful by virtue (quantitative is in place within 4 months. operates of the devolution of or Qualitative) DFRN capacity to effectively. forest management to regulate is effective DFRN capacity rural communities. by year 1.SIEP is to regulate SIEP tools have been set-up by end of private and developed. AFIC is year1 and operates public forest established and by year2 resources operates effectively. management is effective. Date achieved 07/31/2004 07/31/2004 06/30/2008 12/31/2012 This intermediate outcome has been partially achieved. While CNCD was setup under Comments the project, the body was only able to stay effective with financing from the IAME (incl. % project. Furthermore, capacity development for DFRN commenced under the project achievement) but not completed. Biomass and inter-fuel substitution management : improved biomass energy production Indicator 7 : and supply and effective sustainable community based natural resources management in the Moyen Ouémé region xiii AFIC effective; effective AFIC effective by transfer of June 2004.Effective unclassified transfer of forests unclassified forests management to AFIC established; management to local local No community based effective transfer of government in the government in management of forests in unclassified forests Moyen Ouémé by the Moyen place. Non-classified forest management to local Value June 2004. Ouémé; not managed sustainably, government in the (quantitative 300,000ha of forests 300,000ha of and 0% of household Moyen Ouémé; A or Qualitative) under community forests under demand for fuel wood management plan for based by end of community produced in a sustainable 295,295 ha of forest implementation. based manner was developed under 30% of current sustainable the project. household demand management; for fuel wood 30% of current produced household sustainably. demand for fuel wood produced sustainably. Date achieved 07/31/2004 07/31/2004 06/30/2008 12/31/2012 This intermediate outcome has been partially achieved. AFIC was established but not Comments always effective under the project. The management plan for the transfer of 295,295 ha (incl. % of forest land to community based sustainable management was agreed under the achievement) project and implemented. The production of sustainably produced woodfuel has not yet begun. Biomass and inter-fuel substitution management : Private sector /NGO based energy Indicator 8 : end-use efficiency (stoves) and inter fuel substitution options are effectively introduced Private partner in distribution The procurement of of substitution Private partner in 4,800 LPG stoves domestic distribution of was launched and energy and substitution 30,000 improved equipment; domestic energy and cookstoves have been 4,800 LPG Private sector not equipment;4,800 purchased. However, stoves, 18,000 significantly involved in LPG stoves, 18,000 the stoves were not kerosene stoves, distribution of substitution kerosene stoves, and distributed to Value and 30,000 equipment for fuel wood; 30,000 improved households before (quantitative improved fuel no private sector fuel wood stoves project closing. The or Qualitative) wood stoves engagement in production produced and study for the produced and of cashew nut shells and marketed by end of promotion of the use marketed; charcoal briquettes project; Feasibility of biofuel was Feasibility studies successfully completed. Private studies completed; Private sector has invested in successfully sector investments LPG and fuel wood completed; by 2006 stoves. Private sector investments in production and xiv marketing of charcoal briquettes (caju shells) and ethanol (caju apples) Date achieved 07/31/2004 07/31/2004 06/30/2008 12/31/2012 Comments This intermediate outcome has been partially achieved. The procurement of 4,800 gas (incl. % stoves remains to be completed, and the distribution of 30,000 improved cookstoves achievement) procured under the project has yet to occur. G. Ratings of Project Performance in ISRs Date ISR Actual Disbursements No. DO IP Archived (US$ millions) 1 06/13/2005 Satisfactory Moderately Unsatisfactory 1.46 2 12/21/2005 Satisfactory Moderately Unsatisfactory 1.57 3 06/30/2006 Satisfactory Moderately Satisfactory 3.56 4 12/28/2006 Satisfactory Moderately Satisfactory 4.72 5 06/28/2007 Moderately Satisfactory Moderately Unsatisfactory 5.81 6 12/14/2007 Moderately Satisfactory Moderately Satisfactory 7.83 7 06/24/2008 Satisfactory Satisfactory 11.67 8 12/22/2008 Moderately Satisfactory Moderately Satisfactory 22.24 9 06/01/2009 Satisfactory Satisfactory 27.34 10 12/23/2009 Satisfactory Moderately Satisfactory 31.62 11 06/22/2010 Satisfactory Moderately Satisfactory 35.34 12 03/27/2011 Satisfactory Moderately Satisfactory 37.56 13 01/08/2012 Satisfactory Satisfactory 40.23 14 06/12/2012 Satisfactory Satisfactory 41.86 H. Restructuring (if any) ISR Ratings at Amount Board Restructuring Restructuring Disbursed at Reason for Restructuring & Key Approved PDO Date(s) Restructuring Changes Made Change DO IP in US$ millions Provide Additional Financing credit of SDR 4.3 million (US$ 7 million equivalent), revise the 06/02/2008 N MS MS 11.67 results framework, and extend the closing date from December 31, 2008 to June 30, 2010 Extend the closing date from June, 06/28/2010 N S MS 35.34 30 2010 to December 31, 2011 Extend the closing date from 12/30/2011 N S MS 40.23 December 31, 2011 to December 31, 2012 xv I. Disbursement Profile xvi 1. Project Context, Development Objectives and Design 1.1 Context at Appraisal 1. The 2002 census estimated Benin’s population to be 6.6 million with a per capita income of US$ 380. Agriculture contributed over one third of Gross Domestic Product (GDP) and employed two-thirds of the active population. Although lower than expected, real GDP growth was substantial in 2001 and 2002 (5.0 percent and 5.8 percent, respectively). With the increasing population and GDP, the Government of Benin (GoB) recognized that stimulating private sector development would be essential to sustain economic growth. However, limited competitiveness due to inadequate infrastructure, increased transaction costs, and an insufficient supply of skilled workers hampered private sector development. 2. The GoB acknowledged that energy services would play a crucial role in strengthening economic competitiveness and improving the economic and social indicators. At the time of project preparation, the Benin energy sector faced the following key challenges:  Low electricity access rate: Although slightly above the Sub-Saharan Africa (SSA) average, the electricity access rate in Benin was low at only 24 percent nationwide and much lower in rural as compared with urban areas.  Limited generation capacity and dependence on imports: The electricity generation capacity in Benin was low and the supply system weak. Benin largely depended on imports from a single transmission line from Ghana which had limited available capacity. To address this issue, the GoB planned to reinforce the transmission line between Togo and Benin, and initiate several generation projects in cooperation with neighboring countries such as the Adjarala Hydropower plant, the West African Gas Pipeline and the construction of the NEPA/CEB transmission line between Nigeria and Benin.  Poor performance and financial management of CEB (responsible for generation and transmission) and SBEE (responsible for distribution): CEB’s financial situation deteriorated mainly due to the non-payment of electricity bills by both Benin’s and Togo’s state owned companies and foreign exchange losses associated with foreign debt. CEB was unable to make timely payments to its electricity suppliers. The situation worsened during rainfall shortage, which strongly influenced the hydropower generation supply in Benin from the Nangbeto Hydroelectric plant and the importation from the Volta River Authority (VRA) in Ghana. SBEE’s poor technical and financial performance was due to: (i) high operating cost and poor quality of services, particularly in the northern part of the country which used diesel generation; (ii) inefficiency of the networks due to high level of system losses; (iii) inappropriate tariff regime and accumulated government arrears; and (iv) inadequate accounting system.  High dependence on traditional biomass fuels: Traditional biomass energy constituted 90% of total national energy consumption and more than 95% of aggregate household energy consumption. Households depended on fuel wood (charcoal) for cooking and 1 deforestation trends were observed, particularly in the Moyen Ouémé region of Benin. The country did not have a sustainable system for the management of natural resources, such as ensuring a sustainable supply of wood fuels.  Poor sector governance and weak institutions: The sector’s critical institutions, including the Ministry of Mines, Energy and Hydraulics (MMEH), lacked capacity to implement a reform and investment program. The legal framework was not sufficiently robust to promote private sector participation in the energy sector. 3. Against this backdrop, the GoB adopted strategies to address energy sector challenges. In its Letter of Sector Policy (2001-2002), the GoB outlined the following approaches: (i) diversifying generation sources, e.g. interconnect Benin and Nigeria; (ii) increasing electricity service coverage in the north of Benin by extending the transmission line from the southern system already connected to Ghana, Côte d'Ivoire, and Nigeria; and (iii) extending the distribution network to supply peri-urban and rural areas as well as all villages and towns in the proximity of the transmission system. In addition, the GoB approved the following measures: (a) the separation of the water activities from the electricity activities of SBEE in order to develop each sector independently; (b) the establishment of an energy sector regulatory agency to oversee and ensure equity among all stakeholders; (c) the opening of the electricity sector for private sector participation, preferably through a long term concession with a qualified investor; and (d) the creation of a rural electrification agency to promote and supervise rural electrification activities. 4. Given the high dependence on biomass, the GoB planned to take the following steps to better oversee the use of the country’s bio-energy: (i) establish a National Household Energy Commission (CNCD) to coordinate the development of the household biomass energy sectors; (ii) establish a permanent sectorial information and monitoring system (SIEP); (iii) transfer the management responsibilities over the existing protected forests to the rural communities; (iv) establish an Inter-communal Agency for the Management of Natural Resources (AIC-GRN); (v) introduce energy demand management and inter-fuel substitution options for the household and small and medium enterprise (SME) sectors; and, (vi) identify and evaluate the existing bio- energy potential in the country. Rationale for Bank assistance: 5. At the time of appraisal, the GoB adopted a Poverty Reduction Strategy Paper (PRSP) based on strategic objectives that included private sector led-growth, improved access to quality basic services, and improved governance. To achieve these objectives, the GoB planned to accelerate private sector involvement in the energy sector and to implement rural electrification strategy. The planned reforms aimed at (i) increasing sector efficiency; (ii) enhancing the sector’s regulatory framework and institutions; and (iii) fostering private sector participation particularly in electricity generation as well as distribution. It was acknowledged that a strong power sector in Benin would strengthen the development of the West Africa Power Market and thereby promote the Millennium Development Goal (MDG) of strengthening the global partnership for development, given Benin's geographical location between Nigeria and the rest of West Africa. 2 6. The 2003 Country Assistance Strategy (CAS) for Benin supported the implementation of the PRSP and envisaged an eight year Adaptable Program Loan, the Energy Service Delivery Program (ESDP). The Energy Services Delivery Project (APL1) would support: investments needed to increase electricity service coverage in the North of Benin by extending the Southern transmission system, which is interconnected with Ghana, Côte d'Ivoire, and Nigeria; power sector reform through technical assistance and capacity building to improve sector governance and encourage private sector participation; and a combination of investments and technical assistance to rationalize the use of biomass energy and promote effective inter-fuel substitution. 1.2 Original Project Development Objectives (PDO) and Key Indicators (as approved) 7. The original development objectives of the Energy Services Delivery Project (APL1) were to: (a) accelerate the use of electricity for economic growth and social services in a commercially viable way to improve the quality of life in un-served and underserved areas (peri-urban and rural); (b) improve governance and ensure the financial sustainability of the sector through the involvement of the private sector in partnership with the public sector; (c) reduce deforestation, and diversify as well increase access to renewable and cleaner fuels for the household and SME sectors; and (d) promote regional cooperation while protecting the environment in a sustainable manner. 8. The key outcome indicators of the first phase of the program (APL1) were:  Reliable electricity supply is available for northern Benin through the interconnected grid from the south;  In the first year of service of the transmission line (2007), the number of power outages in Parakou and Djougou shall amount to an average of no more than two per month with an average duration of no more than two hours per outage;  By midterm review, the study to prepare for the off-grid electrification will be completed, as well as the bidding process for the selection of a private sector operator for SBEE will be launched. By the end of the Project, the off-grid electrification strategy shall be completed and approved by MMEH, and the SBEE concession agreement shall be signed and the private sector operator shall be operating the electricity distribution system;  By midterm review, the construction of the transmission line in Togo will be completed and by January 2007, the construction of the transmission line in Benin will be completed and operational;  Establishment and effective functioning of CNCD and coordination of domestic energy sub-sector by June 2004;  Establishment and effective functioning of Inter-Communal Agency for Natural Resource Management by December 2004;  Effective devolution of natural resource management rights to rural communities. 1.3 Revised PDO (as approved by original approving authority) and Key Indicators, and reasons/justification 9. The PDOs were not revised during the project. However, during the processing of the Additional Financing, units of measure were introduced for some and other results indicators 3 were refined to improve PDO measurement capacity and to reflect the expected results of the Additional Financing. 10. The results indicators were revised as follows:  Reliable power supplied to northern Benin through the interconnected grid as measured in GWh from the southern grid and through higher stability of overall grid;  Strategy for off-grid electrification and policy plan for implementation endorsed;  SBEE outsources key areas and financial and technical performance of the power utility improved as a result.  Higher reliability of power supply through SBEE in Cotonou and Porto Novo;  Key feasibility/safeguard studies prepared and project planning completed to facilitate closing the generation/transmission gap;  Power provided to northern Benin through the Togolese power grid, as measured in GWh supplied;  CNCD established and functioning effectively;  AFIC established and functioning effectively;  Natural resource management rights effectively devolved. 1.4 Main Beneficiaries 11. The beneficiaries of the project were:  Urban and rural households and businesses;  Isolated rural households and businesses not yet connected to the grid along the right-of- way of the transmission lines;  The population at large with the improved economic conditions in Benin;  Individuals providing and receiving services at rural health facilities in 93 towns and communities provided with electricity under the project;  Individuals providing and receiving services at rural schools in 93 towns and communities provided with electricity under the project;  Rural communities in the Moyen Ouémé region, with an emphasis on women; and  Urban and peri-urban fuel wood consuming households due to receive improved cook stoves under the project. 12. The direct benefits of the project include: a) the access by Northern Benin to the interconnected transmission grid which will provide a considerably more reliable supply at a reduced cost, compared with the operation of diesel plants, with limited capacity, in a number of households and businesses of towns to be connected to the grid; and b) the reinforcement of Benin-Togo cooperation in the power sector, as the power to Northern Benin will be supplied through the Togo grid which would support the development of the West Africa Power Market (WAPM). 13. The indirect benefits include: a) improved social development through the growth of industrial and commercial activity, through the extension of the existing distribution systems in urban and rural areas to increase electricity access; b) significant new employment and income generation opportunities for the participating rural communities, through the proposed community-based sustainable fuel wood supply management systems, together with the rural 4 development support activities and the inter-fuel substitution activities of the project; and c) positive impact on gender development, given that women contribute significantly to fuel wood production process in the country, through the implementation of the proposed community- based sustainable fuel wood supply management systems; and d) the empowerment of local communities by transferring to them responsibility for wood fuel resources management, thereby helping them to increase their income and ensuring the environmental sustainability of the forest resources; e) the enhancement of the relationship between local communities and the central government and among themselves by the establishment of community based natural resource management systems. 1.5 Original Components 14. The project, which was co-financed by the West African Development Bank (BOAD) and Nordic Development Fund (NDF), comprised the following six components: 15. Component 1: Power Sector Reform (US$ 5.40 million, of which IDA US$ 5 million): This component was to support the improvement of the governance and financial sustainability of the sector through the involvement of the private sector. This component consisted of three parts: (i) encouraging private sector participation in the electricity activities of SBEE, the distribution power company; (ii) setting-up a regulatory authority for the power sector and a training program for its staff; and (iii) dissemination to the public, through the media, of the power sector reform agenda for education and information. 16. Component 2: Engineering Studies (US$ 2.80 million, of which IDA US$ 2.55 million): This component was to support the strengthening of the technical performance of the electricity system and to assist the GoB in determining future investments for the development of the sector. This component comprised five engineering studies as follows: (i) a study to define the strategy for off-grid electrification; (ii) a feasibility study for the Sakété-Parakou 161 kV transmission line; (iii) a load management and energy efficiency study of the administration buildings; (iv) detailed engineering studies including preparation of bidding documents for the rehabilitation, reinforcement and expansion of the distribution system; and (v) an environmental assessment, an engineering study and the preparation of bidding documents for the construction of the 161 kV transmission line between Sakété and Porto-Novo. 17. Component 3: Investment Component (US$ 71.70 million, of which IDA US$ 26 million): The activities under this component were designed to expand the transmission and distribution system. The component was financed jointly with CEB, BOAD and NDF, with the Bank financing construction supervision. This component comprised two sub-components: (i) a transmission sub-component (North Togo-North Benin interconnection); and (ii) a distribution sub-component. The project co-financiers participated mainly in financing the transmission subcomponent. (i) North Togo- North Benin Transmission Line This sub-component consisted of extending the southern 161 kV grid to the North of Benin in order to provide the North with reliable and lower cost electricity. At the time of appraisal, the North was supplied through isolated small diesel generating units. The 5 transmission line consisted of about 436 km of 161 kV connecting Atakpamé in Togo with Parakou in Benin, and passing by Kara in Togo and Djougou in Benin; and the two lateral transmission lines in Benin connecting Djougou to Natitingou, 76 km, and Parakou to Bembereke, 106 km. (ii) Distribution The distribution sub-component included: (i) supply and erection of the equipment needed for energy efficiency improvement in the administrative buildings; and (ii) supply of goods and execution of urgent works needed to maintain the distribution system functioning until a private sector partner took its place. 18. Component 4: Environmental and Social Component (US$ 3.50 million, of which IDA US$ 1.75 million): This component was designed to address all the environmental impacts that were identified in the Environmental Assessment (EA) for the project. This component comprised: (i) the Environmental Assessment for the relocation of the existing 20Mw gas turbine from Cotonou to a new site outside Cotonou; (ii) the compensation scheme for the high voltage transmission line; and (iii) an environmental audit of SBEE. 19. Component 5: Institutional Strengthening and Capacity Building (US$ 6.10 million, of which IDA US$ 4 million): This component aimed at strengthening the electricity institutions under the Ministry of Mines Energy and Hydraulics (MMEH), and helping the establishment/operationalization of their role and function in the sector. This component consisted of: capacity building activities at the Ministry of Energy, the Directorate of Energy and the CEB; the purchase of vehicles and office equipment for the PCU and the implementation of an Information Technology (IT) strategy for DGE and SBEE; and the purchase measuring equipment for CEB substations. 20. Component 6: Biomass Energy and Inter-fuel Substitution (US$ 6.20 million, of which IDA US$ 5.70 million): This component aimed to rationalize the biomass energy sector and to promote effective inter-fuel substitution options for the household and SME sectors, including endogenous renewable fuels. The component entailed four complementary and cross- supporting sub-components: (i) Institutional Development; (ii) Community-based Sustainable Wood Fuel Supply; (iii) Biomass Energy Efficiency and Inter-fuel Substitution; and (iv) Rural Community Development Support. 1.6 Revised Components 21. Project components did not change. However, the Additional Financing processed in June 2008 supported additional activities under components two, three, four, and five of the original project as detailed below. 22. Component 2: Engineering Studies (US$ 1 million): Under this Component, the following additional studies were financed: a feasibility study for Maria Gléta (400MW thermal power plant) as a site for WAPP Regional Power Plant and preparatory studies for Adjarala Hydro-electric Plant. 6 23. Component 3: Transmission and Distribution System Expansion (US$4.5 million): Under this component the following works and additional equipment were financed: SBEE’s rehabilitation of switchgear and protection equipment at the substation of Akpakpa power plant; SBEE’s construction of a distribution line in Cotonou; CEB’s installation of protection equipment at substations to allow for operation of the southern transmission ring in Benin; CEB’s provision of cable potheads to link up the Djougou and Parakou substations with the Medium Voltage (MV) lines and related communication equipment; and extension of the supervision contracts to accommodate additional tasks above. 24. Component 4: Environmental and Social Component (US$ 0.50 million): financed the Environmental Audit of Sèmè Oil Field. 25. Component 5: Institutional Strengthening and Capacity Building (US$ 0.50 million): financed technical assistance on financial management and training for SBEE. Table: Original IDA Allocation and Additional Financing Category Initial IDA Initial IDA Additional Allocation Allocation Financing (SDR million) (US$ million) [1] (US$ million) [1] (1) Goods and Works for supply 13.4 19.39 4.00 and erection contracts (2) Goods and Vehicles 2.35 3.40 - (3) Consultants’ services 9.35 13.53 2.30 (4) Training 2.15 3.10 0.20 (5) Operating costs 0.60 0.87 - (6) Refunding of project 0.55 0.80 - preparation advance (7) Unallocated 2.70 3.91 0.50 Total project costs (including 31.10 45.00 7.00 unallocated) [1] Figures based on the Table 1 of the Additional Financing project paper 1.7 Other significant changes 26. The ESDP project, in the amount of SDR 33.10 million (US$45 million equivalent) was approved on July 06, 2004. The Credit became effective on April 25, 2005. The project benefited from an additional IDA credit in the amount of SDR 4.30 million (US$7 million equivalent) which was approved on June 26, 2008 and became effective on May 4, 2009. The closing date of the original project was extended during the processing of the Additional Financing from December, 31 2008 to June, 30 2010. The project was extended for an additional 30 months cumulatively (see paragraph 2.2 for more details) as a result of two additional restructurings in June 2010 and December 2011 respectively, resulting in December 31, 2012 being the final closing date of the project. The Additional Financing and project restructurings did not change the project development objectives or the original components of the project. However, during 7 the processing of the Additional Financing, new activities were added under the existing components of the original project as described in section 1.6. 2. Key Factors Affecting Implementation and Outcomes 2.1 Project Preparation, Design and Quality at Entry: 27. Project preparation: Project preparation benefited from a number of studies and broad consultations with power sector stakeholders to take stock of the main sector issues and the government strategies as well as policies. The preparation of the project was undertaken by the Bank team jointly with: (i) the Directorate of Energy (Direction Générale de l'Energie, DGE) within the Ministry of Energy, the policy making body of the energy sector; (ii) the distribution utility, SBEE, and the generation and transmission company, CEB; (iii) the Ministry of Environment; and (iv) local communities in the Moyen Ouémé region, particularly on the biomass aspect. 28. A project preparation facility advance was used to finance preparatory work and background analysis on legal frameworks, distribution networks, and environmental impact assessment. The GoB showed strong commitment during project preparation and effectively coordinated with commercial financial institutions and development partners to secure the financing of priority investments of the sector and reform agenda. A reflection of the Government’s commitment to power sector reform was that it took upon itself the financing of the institutional studies that led to the decision taken by the Council of Ministers, in 2001, to approve the privatization of SBEE. At the time of preparation, several donors indicated their interest in financing the power sector expansion to meet economic demand in rural and peri- urban areas in Benin, especially in the northern part of Benin. 29. The project was prepared over 24 months between FY03 and FY04. At that time, the West African Gas Pipeline was expected to be operational in 2006, bringing online sufficient additional thermal generation capacity to stabilize Benin’s power supply while lowering costs. This in turn was expected to lead to an improvement in the utilities’ financial condition and appeal to private sector investors at a time when private sector participation was a common theme across the region. Many utilities in neighboring countries had been/were in the process of being privatized with apparent gains in management efficiency. 30. Project design: The Project Development Objectives and activities responded to the needs of the country and supported the Government’s strategy, outlined in its Letter of Sector Policy of 2001-2002, to address existing sector issues. Additionally, the PAD delineated the lessons learned that were reflected in the program design. The project included six components supporting a variety of interventions, including investments, capacity-building, technical assistance, and policy formulation to bring about sector reform. There was also a multiplicity of actors involved, particularly on the government side. In hindsight, the project design was complicated, which led to delays and complications during project implementation. Specifically, 8 the project attempted to tackle an ambitious agenda of complex issues without fully defining them, while the outcome indicators remained mostly qualitative. 31. Assessment of risks: The overall risk rating of the project was moderate at the time of appraisal. Of the risk factors assessed, the following risks materialized:  Government's commitment to implement the necessary measures could weaken: Although the Government had issued the Letter of Sector Policy and established the legal and regulatory framework necessary for private sector participation in the sector, it neglected to take other steps necessary to carry out the privatization process, such as hiring a transaction advisor and initiating the bidding process. There was a lack of private sector interest in participating in distribution utilities. Further where privatization of distribution utilities had been tried, for e.g. in Guinea, Togo, Senegal, and Mali, concessionaires were not investing as promised and governments were reluctant to raise tariffs as required by the concessionaires. These factors discouraged the GoB from actively pursuing the privatization agenda further.  Inability to implement the project within budget and in accordance with schedule: This risk was assessed low during the preparation of the project due to the fact that some of the involved agencies had experience implementing similar projects either with IDA or other donor-financed projects. The CEB’s implementation of the Nangbeto Hydroelectric Project (Cr. 1507-BEN and Cr. 1508-TG) was rated highly satisfactory as the project was commissioned below cost and on schedule. However, the hiring of consulting engineers was still identified as a mitigation measure. The ESDP was implemented within the budget (about 88.38% of the project proceeds was disbursed) but it was not completed in accordance with schedule, despite a cumulative 4 year extension from the original closing date. The inability to implement the project in accordance with the schedule was mainly due to the design of the biomass component (component 6), where the length of time needed to complete key activities was underestimated, for example the establishment of the forestry agencies (AFIC and COFORMO) took more than four years.  Heavy reliance on electricity imports from neighboring countries: This risk was rated as substantial at the time of the preparation of the Additional Financing and the preparation of the projects for the development of the Adjarala Hydropower Plant as well as the Regional Power Plant at Maria Gléta were identified as mitigation measures. Since 2012, reliance on electricity imports from neighboring countries has significantly increased. The ESDP has financed feasibility studies for both plants which, once operational, should reduce Benin’s high dependency on imports.  Weak financial management capacity at SBEE: This risk was rated substantial at the time of the preparation of the Additional Financing. The recruitment of a high level financial expert to assist SBEE to improve its financial management was identified as a mitigation measure. At the end of the project, the billing and accounting systems were not integrated, the control environment was still weak, and timely recording of transactions was lacking. 9 32. The PAD identifies the following “controversial aspects”, as distinct from “critical risks” which for the purpose of this exercise, are analyzed as additional risk factors and which both materialized: (i) unsuccessful participation of the private sector in SBEE, and (ii) problem of availability of power import from neighboring countries. The participation of the private sector in SBEE was not completed during the implementation of the project and the availability of power for importation by CEB from neighboring countries was reduced, given the capacity constraints faced by its suppliers. Both of these had implications on the economic return of the project which has been revised downward. However, despite this the project remains profitable from an economic point of view. 2.2 Implementation 33. Project implementation had a slow start. Due to the late fulfillment by the Government of Benin of the effectiveness conditions, the project became effective approximately 10 months after Board approval. While the large quantity of conditions (ten) was a factor, the delay was primarily attributable to the ratification of the subsidiary agreement at the parliament level. After effectiveness, disbursement was initially slow, reaching only 26% four years after Board approval. 34. Project implementation encountered challenges at a number of levels due to factors that were often outside of the project’s control and sometimes hard to predict. Unanticipated delays in the construction of the West-Africa Gas Pipeline led to waning enthusiasm for distribution utilities in the sub-region. At the time of project preparation, the WAGP was under construction, the price of gas stood at US$10 cent per mmbtu, and most of the associated and non-associated gas in Nigeria was being flared. The completion of the construction of the pipeline was scheduled in 2006 with the expectation that Benin would close its power generation/demand gap using gas-powered generation using gas from Nigeria. This low costs power generation capacity would reduce costs and improve utility financial performance – making it more attractive for private sector participation. The completion of the WAGP was delayed. In addition, the incentives for Nigerian gas producers to export gas decreased as the demand for gas in Nigeria increased. As a result, foundation volumes of gas have yet to become available. In 2012, the gas pipeline was damaged in an attack in Cote d’Ivoire and gas supply was suspended for a year. 35. Shortcomings in the gas supply were not the only reason for generation costs staying high. The volatility in the price of oil as well as the unreliability of power imports from neighboring countries also pushed generation cost upwards. As a consequence, and despite some improvements in SBEE’s technical performance, the utility’s financial performance did not improve as hoped. While private sector interest in the distribution utility concession decreased tariffs lagged cost increases and as the global financial crisis reduced foreign direct investment. Most of the distribution concession contracts across the sub-region were also terminated at this time because of an inability to attract private sector investment as governments refused to increase tariffs to meet cost recovery. In Benin, the Government’s focus shifted to solving the generation deficit in a worsening power crisis. 36. Implementation of the biomass component was slow to start, as the Ministry in charge of forest management and many of the local authorities concerned were not involved in the project preparation process which was led by MMEH. In addition, the legal and institutional frameworks 10 supporting the devolution of responsibility for various biomass activities and resource management were too weak to enable coordination between MMEH and stakeholders concerned. As a result, establishing the biomass and resource management agencies took more than four years. 37. However, not all the delays are due to external factors that were not under the control of the government of Benin. Frequent changes in public administration resulted in change of interlocutors at the ministry levels. Limited quantity and quality of handovers between administrations, along with lack of ownership of the project by new officials, slowed the implementation of the project. The procedure for approval of counterpart funding was very cumbersome and had to be repeated for each and every contract approved, leading to significant delays in project implementation. After the restructuring of the project, this procedure was addressed whereby SBEE and CEB provided funding instead of the government. 38. The processing of contracts with Government co-financing by the Ministry of Finance was slow and the national integrated system for the management of public contracts was used intermittently. This situation created important delays in terms of providing approval to procurement documents including bidding documents, bid evaluation reports, and contracts. 39. The mid-term review of the project was conducted in October 2007 to assess the overall status of project implementation. The review revealed that while the project development objectives remained relevant and achievable, the overall implementation of the project - particularly the biomass component - was significantly delayed. The level of disbursement at the mid-term review was only about 15.3%. But there were reasons to expect that disbursement would pick up, as about 60% of the financing was committed. The mid-term review recommended actions to allow for the improvement of progress including (i) the acceleration of the hiring of technical staff to work on the biomass component, (ii) the restructuring of the project which included: extension of the closing date, reallocation of funding, revision of the results framework and disbursement forecast. 40. In early 2008, it was decided that the APL structure as originally designed was no longer applicable to the changed context. The project was the first phase of an eight year Adaptable Program Loan (APL) divided in two phases; the second phase was to be triggered if the reforms planned in the first phase, particularly measures to improve power sector performance, were adequately implemented. However, in the context of serious power supply shortages in Benin since early 2007, a focus on further network extensions without regard to the source of the required power supply, as foreseen under APL-2, was not feasible. Secondly, analysis conducted under APL-1 indicated that there was no private sector interest in SBEE, and therefore privatization, which was considered an important sector reform, could not proceed. 41. In June 2008, an additional financing of USD 7 million equivalent was approved to scale- up project activities. Activities were added under components two, three, four, and five, the closing date was extended by 18 months, and the results framework was revised. The decision was formalized not to pursue the second phase of the APL. The project development objectives remained the same. 11 42. Despite the restructuring in 2008, delays continued. The project implementation was steady though slow and two additional restructurings occurred in June 2010 and December 2011 to extend the closing date for an additional cumulative 30 months in order to complete critical project activities. 2.3 Monitoring and Evaluation (M&E) Design, Implementation and Utilization 43. The original M&E framework was overly complex, reflecting the high number components and actors involved in the project’s implementation. The resulting outcomes were not well defined and the indicators were largely qualitative, making it hard to track and measure results. In addition, some of the indicators were not matched by effective collection methods or available baseline to monitor progress. At the time of approval of the Additional Financing, the original outcome indicators in some of the project components were revised to better capture the expected results. Target values and units of measurement were still not introduced in all cases. Appropriate indicators to measure the impact of the project on economic growth in accelerating the use of electricity were still absent. 44. The project used quarterly reports based on the results framework included in the PAD and Financing Agreement to monitor progress. In addition, a comprehensive assessment of project’s achievements was carried out at the mid-term review. The M&E specialist within the Project Coordination Unit gathered data and calculated figures for indicators. 2.4 Safeguard and Fiduciary Compliance Environmental and social safeguards 45. The safeguard category of the project was B (partial assessment). The project triggered the Bank policy on environmental assessment (OP/BP4.01) and involuntary resettlement (OP/BP 4.12). No major environmental risks were identified during the preparation of the project. The project included an Environmental and Social Component which financed activities aimed at addressing all the environmental impacts that were identified in the Environmental Assessment (EA). This component included financing for an environmental audit for the relocation of the existing Gas Turbine in a substation at Cotonou to a new site where gas from the West Africa Gas Pipeline would be delivered in Benin. However, the gas pipeline was ultimately not relocated rendering the audit unnecessary. 46. An Environment and Social Management Framework (ESMF) and a Resettlement Policy Framework (RPF) were prepared and disclosed on February 3, 2004 before project appraisal. The preparation of the Additional Financing did not change the safeguard category of the project, nor did it trigger additional safeguard policies. The ESMF and RPF were updated, reviewed and approved by the Bank. Both updated ESMF and RPF were re-disclosed in-country and in the Info Shop on May 20, 2008. 47. The project financed the compensation provided to persons affected by the implementation of some of project’s components, particularly the building of access roads and right-of-way for the North Togo – North Benin transmission lines. A comprehensive 12 Resettlement Action Plan (RAP) was developed and implemented, and the compensation issues were successfully addressed. Procurement and Financial Management 48. An assessment of the procurement capacity and systems of CEB and SBEE was undertaken in accordance with IDA procedures during project preparation. Both CEB and SBEE had already implemented IDA-funded projects in the past and had carried out procurement using World Bank guidelines and procedures. The Ministry of Energy handled consultancy contracts under the project and was responsible for all the procurement activities of the Biomass Energy and Inter-fuel Substitution component (goods and services, civil works and equipment).The Ministry of Energy had adequate number of qualified staff to handle its limited procurement responsibility, which was further supported by a qualified consulting firm in major procurement matters. 49. Procurement performance was rated Satisfactory or Moderately Satisfactory in ISRs during project implementation. Thirty three contracts (works, goods, and consultancy services) were procured using competitive bidding procedures during project implementation. Substantial progress was made with respect to pre- and post-procurement procedures, record keeping, and quality of bidding documentation and evaluation reports. All the activities of the project were implemented following the Bank’s procurement guidelines for goods, works, and consultancy services. 50. Financial Management (FM) performance was also rated Satisfactory or Moderately Satisfactory in ISRs and the related FM risk was rated Moderate during the implementation of the project. The client had adequate staffing throughout the implementation of the project. In addition, proper bookkeeping and supporting documents for the justification of all expenditures were maintained and most of the audits were submitted on time and reviewed. The interim un-audited financial reports were submitted in a timely manner and the quality of those reports improved over the years of implementation. FM requirements were met in budget planning and expenditure tracking, accounting, reporting, auditing, and disbursement. Moreover, recommendations of supervision missions and of audit reports were mostly taken into account. 2.5 Post-completion Operation/Next Phase 51. Post-completion operation and maintenance of investments financed by this project, including transmission and distribution lines and substations, are under the responsibility of the two utilities – CEB and SBEE. While both these institutions have qualified staff to carry out the maintenance and operation of newly installed infrastructures, securing adequate financial resources remains an issue that requires attention. On the distribution side, SBEE has improved its financial situation following the two tariff increases that were implemented between 2010 and 2011 which allowed the utility to secure budget in order to undertake the maintenance of distribution lines and substations. However, SBEE could still do more to: (i) improve its commercial performance, particularly improving billings and collection rates to reduce the non- technical losses, and (ii) increase its collection rate. The financial viability of SBEE could be 13 maintained through the application of the tariff indexation mechanism. In addition, SBEE could certain aspects of its operations to the private sector, including the billing and collection to increase its performance. On the transmission side, and despite continuing poor performance, CEB should be able to secure the budget necessary for the maintenance and operation of transmission lines and substations. 52. To sustain the achieved outcomes under the biomass component of the project, the newly established AFIC and COFORMO would need to be permanently functioning to supervise the maintenance and operation of installations which were handed over to local communities and to ensure the management of natural resources in the long run. Capacity strengthening activities for COFORMO and AFIC was initially funded by the ESDP and thereafter by the ongoing IAME project. The agencies are changing their status to permit them to function autonomously in the future. In addition, to support the maintenance and operation of infrastructure related to the production of honey, local communities have considered the allocation of part of their revenue. 53. Next phase/follow up operation: Initially, phase two (APL2) of the program (APL) was supposed to be prepared in order to continue and sustain the results achieved in the phase one (APL1). By 2008, it was clear that the triggers for the preparation of the phase two of the APL were not going to be met because of change of sector context and environment, in particular the lack of interest from the private sector to participate in the privatization of SBEE. In its stead, the Government and the Bank agreed in 2008 to prepare a free standing follow-on investment operation. The Increased Access to Modern Energy Project (P110075) was approved in 2009. The IAME project provides supports to the two utilities CEB and SBEE and to the two institutions AFIC and COFORMO. 3. Assessment of Outcomes 3.1 Relevance of Objectives, Design and Implementation 54. Overall, the project development objectives, design and implementation remain relevant to the current sector priorities of the country and support high level priorities, including MDGs. The development objectives of the project remain highly relevant, while specific aspects of the design and implementation turned out to be no longer fully relevant. 55. The development objectives of the project, though broadly defined, are in line with the current Country Partnership Strategy and remain highly relevant to the development priorities of Benin. The 2011-2015 poverty reduction strategy is based on five strategic pillars which are: (i) acceleration of growth; (ii) development of infrastructure; (iii) human capital building; (iv) promotion of good governance; and (v) and balanced and sustainable regional development. The Government of Benin recognizes infrastructure’s contribution to growth and the improvement of living conditions by: linking economic agents to markets, reducing factor costs, improving the competitiveness of the economy, and also offering essential services to the public which determine the quality of life. The Government has identified energy as a priority area in the infrastructure sector. Further, the achievements under this project contribute to the realization of the objectives of the Benin Country Partnership Strategy (CPS) FY13-17 on the increased access 14 to and quality of electricity services under the pillar: “Increasing Sustainable Growth, Competitiveness and Employment”. 56. The installation and commissioning of the transmission lines financed under the project in the northern part of Benin has facilitated the electrification of more than one hundred and twenty villages in rural areas. In this way, the project supported the Government’s effort toward the achievement of MDGs on the reduction of child mortality and improvement of maternal health, through the increased coverage of electricity to rural health facilities; and the achievement of universal primary education through the provision of electricity to rural schools which would enable evening classes to take place and improve the living conditions of teachers, thus reducing turnover. Moreover, the use of grid electricity from interconnected transmission lines to substitute for electricity produced by small- and medium-sized diesel power plants helped to support environmental sustainability. 57. As it concerns the project’s design, the transmission and distribution system expansion support component that financed the rehabilitation and expansion of electricity infrastructures (generation, transmission, and distribution) is still highly relevant to the sector context in Benin. It also remains relevant to include a power sector reform component given the financial challenging situation of the utility as a result of a high investment gap, commensurately high system losses, and chronic non-technical losses. At the outset, however, the project was very focused on private sector participation. This approach – which was common at the time of project appraisal - is no longer relevant in a changing sector landscape. Also, the project failed to appropriately assess the risks of construction delays of the WAGP. While relevant to the country’s priorities, the biomass also diluted the focus of the project and would have been better suited in a multi-sectoral community development operation. The Monitoring and Evaluation of the project design is not up to the current more stringent standards. 58. Bank assistance was responsive to the Government’s changing needs, particularly on the need to develop additional generation capacity as the import of gas was not as reliable as expected. The feasibility study of the Adjarala hydropower plant was included in the project’s activities under the component “Engineering Studies” during the preparation of the additional financing and the study were completed under the project. As a result, the Adjarala hydropower generation is under preparation and is expected to be financed by the Bank and other donors. In addition, the feasibility study for the development of the regional power plant Maria Gléta (400MW gas power plant) was completed under the project. This study aimed at closing an important gap in the understanding of power sector planning in Benin. 3.2 Achievement of Project Development Objectives Rating: Moderately Unsatisfactory 59. The achievement of the PDOs is overall rated as Moderately Unsatisfactory given that the not all PDO indicators were achieved, despite the fact that many of their targets were. Persistent disconnect between PDOs and targets in the results framework has complicated the ICR analysis. See Annex 2 for a description of outputs by project component. 15 60. The achievement of the first project development objective, namely to “accelerate, in a commercially viable manner, the use of electricity for economic growth and social services and thus improve the quality of life in un-served and underserved areas (peri-urban and rural)” is rated as Moderately Unsatisfactory. Both of the targets set out in the results framework were achieved, but the project was not able to sustainably achieve one of its initial indicators, namely the reduction of power outages to an average of less than two outages per month and two hours per outage. Nevertheless, the energy supplied in the North reached 89 GWh by the end of 2012 and has increased since project closing. The power supply is more stable and reliable. The southern loop became fully operational, while the upgrade of distribution transformers in urban and peri-urban areas in Cotonou and Porto Novo increased supply capacity across the distribution system (50 MW additional transformer capacity added). The availability of electricity supply in the northern part of Benin has significantly increased from 5-6h/24h to an average of more than 18h/24h. The utility was consequently able to terminate costly power rental agreements. Furthermore, the Transmission and Distribution System Expansion component was highly successful and engineering studies were completed. 61. Increased electricity supply has augmented the energy consumption in target communities and villages in the northern part of the country. This has contributed to the quality of life in these peri-urban and rural areas. The substations of Djougou and Parakou installed under the ESDP powered the electrification of twelve villages and ten communes in rural areas that was completed in 2009 under other projects. Similarly, the electrification of an additional one hundred and five villages under the Energy Facility of the European Union is ongoing and will be completed in 2013 and these villages will also be supplied by the transmission lines built under the ESDP. The completion of the distribution works in Cotonou and Porto Novo, including the installation of substations and underground cables and lines, has also increased the capacity of the networks and reduced the frequency of unplanned interruptions. Since both Cotonou and Porto Novo are industrial and commercial zones, these improvements have led to enhanced productivity of industrial and commercial customers. 62. The achievement of the second objective which is “to improve governance and ensure the financial sustainability of the sector, through the involvement of the private sector in partnership with the public sector” is considered as Moderately Unsatisfactory. The Electricity Regulatory Authority was established and the recruitment of its staff is ongoing by the Government. The functioning of the entity is an important step for strengthening the governance of the sector and promoting public private partnership. Although the Government established the legal and regulatory framework necessary for private sector participation in the sector, given the lack of interest from private sector and the unsuccessful attempts at privatization of power utilities of countries in the region including Guinea, Togo, Senegal, and Mali, the Government did not actively pursue the privatization agenda further. Despite the fact that the introduction of private sector participation in SBEE was not successful, the Government was able to implement two tariff increases between 2010 and 2011 which has improved the financial situation of SBEE. Prior to 2011, SBEE encountered financial losses but the utility has since turned a profit by rehabilitating distribution infrastructure and implementing tariff adjustments to cover costs. The current Government has again shown a willingness to pursue privatization of SBEE and has recently sent terms of reference to the Bank on the establishment of a “Société de Patrimoine” that would allow SBEE to have autonomous management and access to financial markets. The 16 Government is also considering collaborating with the private sector on certain aspects of SBEE’s operations including the billing and collection, and electrification of undeserved peri- urban areas. 63. The achievement of the third PDO, to “reduce deforestation and increase access and diversify choice to renewable and cleaner fuels to the household and SME sectors”, is rated Moderately Satisfactory. The three indicators of this PDO were achieved or partially achieved despite the slow start up of the implementation of the biomass component: the CNCD was established, the AFIC was set in place and functioning, and forest management of 295,295 ha was effectively devolved to rural communities. Nevertheless, some of the planned activities in support of this PDO remain unfinished. The procurement of 4,800 gas stoves was begun under the ESDP but not completed, while 30,000 cookstoves have been purchased but these have yet to be distributed. 64. On the reduction of deforestation, the project started with the establishment of legal framework and the setting in place of key institutions, the COFORMO and the AFIC, to ensure the sustainable management of forest in the region of Moyen Ouémé. COFORMO developed an action plan for 2008-2012 and approved it in 2009. The AFIC was established in 2010 and the institution became well-functioning in August 2011. Under the project, the government approved a development plan for the sustainable management and production of woodfuel on 295,295 ha of forest which was devolved to communities. 65. The strategy for the promotion of gas and biofuel in Benin was adopted. In addition, the recruitment of an NGO was completed in 2011 to undertake a social intermediation. The establishment of legal framework related to the promotion of biofuel was prepared but was not adopted during the implementation of the ESDP project. 66. The strategy for the promotion of gas and biofuel in Benin was adopted. In addition, the recruitment of an NGO was completed in 2011 to undertake social intermediation. Moreover, due to delays in finalizing the contract, the purchasing of gas stoves was launched but not completed, while cookstoves were purchased but not distributed by project closing. The establishment of legal framework related to the promotion of biofuel was prepared but was not adopted during the implementation of the ESDP project. 67. Regarding rural community development support, the project supported 120 apiarists in 12 villages who have established 840 hives. Twelve facilities for the processing of honey were constructed and twelve water drilling systems were constructed and commissioned in January 2011 in Dassa, Save, and Tchaourou districts. 68. The achievement of the project development objective of promoting regional cooperation while protecting the environment in a sustainable manner is rated Moderately Satisfactory. The project achieved most but not all of its targets in support of this PDO. The project clearly promoted regional integration although this is an ongoing process. The completion of the North Togo – North Benin transmission line has enhanced cooperation between Togo and Benin. This interconnection has also facilitated power exchange with Ghana, as it connects further to the BOAD financed transmission line from Nangbeto hydropower plant to northern Togo. Benin’s 17 power imports from Ghana have therefore increased and the interconnectivity will continue to enhance regional power trade. The commissioning of the Togo-Benin transmission line has enabled the Government to shut down all thermal plants that previously supplied the North of the country, which has reduced generation costs and limited negative environmental impacts. The ESDP also improved regional cooperation through the feasibility study for the Adjarala hydropower site. This has enabled Togo and Benin to jointly prepare for the development of a site that will facilitate renewable energy development and augment the constrained capacity of electricity suppliers throughout the region. The unreliability of the gas and power imports are a testimony that regional integration in the energy sector remains a challenge, despite the important contributions of the project. 69. To ensure that the environmental impact of the planned development for the sector was mitigated and adequate protections implemented going forward, the environmental was designed to provide compensation to residents displaced to accommodate the right of way from the high voltage transmission lines, as well as to carry out a number of environmental studies and audits. While the component financed a resettlement action plan (RAP) and successfully compensated the affected population, it has only disbursed approximately 25% at project close as environmental audits for SBEE and the Sèmè Oil Field were not implemented. The environmental assessment for the relocation of a 20MW gas turbine outside of Cotonou was also not implemented as the gas turbine was no longer being relocated. 3.3 Efficiency 70. Efficiency is rated Substantial due to the efficiency gain of the transmission line North Togo - North Benin as compared to the alternative of expensive isolated thermal power plants. The cost of decentralized thermal power generation would have been increased because of steadily climbing oil prices, particularly since mid-2009. 71. Beyond the savings made by avoiding the costs related to isolated thermal generation, the project helped to improve SBEE’s efficiency at three levels: (i) the transmission lines financed under the project resulted in the decreased thermal generation for Atacora and Borgou plants from 65.1 GWh in 2008 to 6.6 GWh in 2012, resulting in an average savings of US$ 10 million per year in diesel fuel and lubricating oil costs; (ii) the grid upgrades financed under the project have allowed SBEE to save US$ 1 million per year in power rental costs; (iii) energy efficiency improvement measures included the installation of capacitor banks in 14 buildings for power factor improvement, and installation of energy efficient equipment in 80 buildings. However, the impact of improvements resulting from the project’s activities was mitigated by factors outside of the project’s control. Specifically, unforeseen delays in the completion of the WAPG led to a continued reliance on thermal generation in the South, compounded by increasing oil prices previously noted. Therefore, while the project successfully met many of its output targets and led to efficiency gains on specific segments of the utility, it did not fully achieve the desired outcome overall as SBEE’s overall financial condition has not improved to the extent initially planned to enable privatization. 72. Economic analysis for the North Togo - North Benin Transmission Line (161kV). An economic analysis was carried out comparing the economic benefits of the North Togo/North 18 Benin Transmission line, to the alternative solution based on isolated diesel power plants. The economic return of the project is 19% while net present value dropped US$ 16 million. This is considerably below the projected rate of economic return of 35% and the NPV of US$ 65 million in the project appraisal document. This decrease in economic returns is explained in large part by the halving of the actual energy supplied by the project to Benin’s northern region in comparison with was projected at appraisal stage. Despite this lower demand, the project is still considered to be beneficial from an economic standpoint. The details of the economic and financial analysis can be found in Annex 3. 73. Financial analysis of CEB and SBEE. At appraisal, CEB had very little margin for maneuvering in an environment of rising costs. Losses in 2001 were 11.1 billion FCFA. In April 2002, CEB was allowed to raise tariffs; as a result the situation improved. CEB’s financial projections for the period 2004-2010 were based on decreasing power generation cost driven by the supply of cheaper gas from Nigeria through a gas pipeline as of 2005 and the operation of hydropower plant at Adjarala as of 2008. However, the construction of the Adjarala plant has been delayed and is now expected to be commissioned by 2017/2018. Furthermore, the gas supply from Nigeria only began in 2011 and is more expensive than expected (US$ 9/mmbtu). The contractual gas volumes are not usually met and the supply has been erratic. In 2012, the gas pipeline was damaged in a terrorist attach and services were suspended for a year. For all of these reasons, the expected drop in generation cost did not materialize, at least not at the magnitude projected. Hence, CEB remains in a difficult financial situation. While it had a positive net result in 2009 and 2010 (US$ 4.4 million and US$ 3.8 million), the situation deteriorated in 2011 (deficit of US$ 6.2 million) and CEB now forecasts a large deficit for 2012 (US$ 49 million) and 2013 (US$ 34 million). 74. On the other hand, SBEE’s financial situation has improved following the 10 FCFA/kWh April 2010 tariff increase. SBEE losses have decreased relative to the period from 2007 to 2009. After a 1.4 FCFA billion loss in 2010, SBEE has a profit of 2.6 FCFA billion for 2011 and forecasts 3.3 FCFA billion for 2012. The average tariff is now slightly higher than the average operating cost. The reduction in SBEE’s own expensive thermal generation also explains the improving financial situation. In 2011, SBEE imported 99% of the energy supplied from CEB against 91% in 2010. This higher demand is the result of new connections in previously isolated areas and the end of contracts with Aggreko and MR International in August 2010. 75. Compliance of CEB and SBEE with financial covenants. Overall, CEB and SBEE complied with the project’s financial covenants. CEB gradually reduced its accounts receivable from electricity sales to an average amount equivalent to two months of electricity sale by January 1, 2006. The Government also ensured that its arrears due to SBEE for electricity consumption as well as all cross debts between SBEE, CEB and CAA as of December 31, 2003, were fully settled by September 30, 2004 through cash payments or through offsetting the arrears against SBEE’s and CEB’s indebtedness to CAA. 3.4 Justification of Overall Outcome Rating Rating: Moderately Unsatisfactory 76. The overall outcome is rated Moderately Unsatisfactory for following reasons: (i) the project development objective were relevant, though the design was not always so; (ii) the 19 overall rating of the achievement of development objectives is moderately unsatisfactory; and (iii) there were substantial efficiency gains derived from investments made under the project components, but not to the extent expected during project preparation. 3.5 Overarching Themes, Other Outcomes and Impacts (a) Poverty Impacts, Gender Aspects, and Social Development 77. In view of the relationship between electricity and economic development as recognized in the PDO, the project contributed to poverty reduction through the increase in the supply of electricity. In addition, increased availability of the supply and improved reliability of electricity, positively influenced productivity and income generation. Moreover, the completion of the transmission lines and substations has triggered the boom of rural electrification in the northern part of the country. Thus, the improvement of distribution networks in Cotonou and Porto Novo in terms of capacity and reliability would increase the productivity of industrial and commercial customers in those areas. Moreover, the biomass component of the project supported income generating activities including the production of honey which reduced deforestation and alleviated poverty in rural communities. The project supported 120 apiarists in 12 villages who have established 840 hives. Twelve facilities for the processing of honey were constructed in Dassa, Save, and Tchaourou districts and twelve water drilling systems were constructed and commissioned in January 2011 in the same areas. 78. The project also contributed to social development through the construction of five substations and establishment of COFORMO, a collective decision-making platform. Increased energy availability through the substations financed under ESDP enabled other projects to finance grid extensions for the electrification of rural villages, including health facilities and schools, thereby directly improving quality of life in those areas. The creation of COFORMO enabled the promotion of collective decision-making at the community level for the management of forest lands. This participatory approach fostered the empowerment and self-confidence of beneficiary communities in managing their own development while providing them with an opportunity to have their views heard at regional and national levels. (b) Institutional Change/Strengthening 79. The project supported activities to strengthen the institutional capacity of various actors involved in the sector, including the General Directorate of Energy within the Ministry; the utilities, CEB and SBEE; and the Directorate of Forests and Natural Resources in the areas of corporate planning, renewable energy, administration and regulation, environmental management and control. The project also supported the establishment of: (i) the Electricity Regulatory Authority, that is expected to contribute to the promotion of public private partnership; (ii) the COFORMO and the AFIC, for decentralizing the sustainable management of natural resources; (iii) the CNCD, for the promotion of gas and biofuel for increasing the access to cleaner fuels for households and SME sectors; and (iv) an environmental unit within CEB. 80. In the biomass sub-sector, the SIEF and SIEP management tools were developed under the project to help municipalities and community associations improve the management of 20 natural resources particularly to monitor the implementation of the management plan related to the 300,000 hectares under sustainable woodfuel management in order to reduce deforestation. 81. The task of implementing the project itself enhanced the project management and fiduciary as well as safeguards operational capacity of the institutions involved. This will likely positively impact the preparation and implementation of future projects. Lastly, public institutions were among the beneficiaries of energy efficiency training programs, and awareness campaigns that are expected to yield long-term behavioral change toward the rational use of energy. (c) Other Unintended Outcomes and Impacts (positive or negative) 82. Not applicable 3.6 Summary of Findings of Beneficiary Survey and/or Stakeholder Workshops 83. Not applicable 4. Assessment of Risk to Development Outcome Rating: Moderate 84. In light of the identified risks and available mitigation measures, the sustainability of the ESDP’s development outcomes depends primarily on three factors: (i) inability to maintain the electricity infrastructures properly due to insufficient budget resulting from a poor financial situation and/or lack of ownership; (ii) inability to sustain the functioning of the newly created institutions including the CNCD, COFORMO, and AFIC; and (iii) reduction of imported generation. The risk to the development outcome is rated Moderate. Adequate measures to mitigate the identified risks have been put in place, as explained below. However uncertainty remains as to whether SBEE and CEB will be able to continuously maintain the transmission lines and substations, the COFORMO and AFIC would be functioning autonomously, and the generation from suppliers would not be decreased significantly, in the near future. 85. On distribution, SBEE has improved its financial situation following the two tariff increases that were implemented between 2010 and 2011 which would allow the utility to secure budget to undertake the maintenance of distribution lines and substations. However, SBEE would need to: (i) improve its commercial performance particularly the billing system to reduce the non-technical losses, and (ii) implement measures to increase the collection rate. On the other hand, the utility CEB has shown during past years its ability to operate and maintain transmission lines and substations. Despite its projected growing deficit, CEB should be able to allocate budget for the maintenance and operation of transmission lines and substations in the future. 86. The project did not address the risks to imported generation. Given the country’s reliance on importing increasingly expensive oil for domestic generation, any reduction in power imports would likely have significant negative impacts the financial performances of both CEB and SBEE. To mitigate this risk, CEB and SBEE are actively seeking foreign sources from which to 21 import electricity, though they remain highly dependent on Ghana. Both CEB and VRA, the Ghanaian utility, are exposed to erratic and unreliable gas supplies that are subject to frequent disruption or even temporary shut-downs due to pipeline ruptures in Benin and Togo, or sabotage in neighboring Nigeria. Though the pipeline’s daily capacity now stands at 470mmbtu, foundation volumes under the contract are a mere 133mmbtu (of which Benin’s share is only 5mmbtu) and only 70% of foundation volumes are being supplied. Although Benin is in negotiations with Nigeria to increase gas and energy imports, the country faces a worsening power crisis and is developing more expensive liquid fuel generation solutions to close the generation gap. 5. Assessment of Bank and Borrower Performance 5.1 Bank Performance (a) Bank Performance in Ensuring Quality at Entry Rating: Moderately Unsatisfactory 87. The performance of the Bank during the identification, preparation, and appraisal of the project is rated Moderately Unsatisfactory. The Bank facilitated a participatory process in the sector, bringing knowledge and tools that could be adapted to the Benin context. This included leveraging Bank safeguards policies in the dialogue to improve resettlement processes. In addition, the project was consistent with the development priorities of the country and was designed based on the lessons learned from other projects in Sub Saharan Africa. Moreover, the project design was informed by previous projects such as the Nangbeto Hydroelectric Project and the Power Rehabilitation and Extension Project. Regular stakeholder consultations ensured that there were agreements on project design, scope, and activities. 88. However, outcomes show that there were also significant shortcomings in the scope and design of the project. The project was overly ambitious on institutional development, and specifically private sector participation. The formulation of the PDO was overly broad and included higher level objectives that could not easily be attributed to project outputs, making assessment of the project’s impact difficult. In addition, the design of the M&E framework suffered a number of deficiencies. Indicators, target values and units of measurements could have been better defined. 89. In hindsight, risks were not properly identified. The project design did not sufficiently recognize the dependency of its success on other segments in the energy value chain, such as delays to the WAPG on generation costs. This undermined the PSP strategy. 90. The design of the biomass energy and inter-fuel substitution component and institutional strengthening and capacity building component also underestimated the time required to build institutions. The ministry in charge of forest management was insufficiently consulted during project preparation. This led to substantial delays in implementation and only partial achievement of those objectives. 22 (b) Quality of Supervision Rating: Moderately Satisfactory 91. The Bank performance during supervision is rated Moderately Satisfactory. After initial delays on project effectiveness and implementation, the Bank stepped up supervision which helped to speed implementation and the achievement of project outcomes. The move to a task team leader based in Cotonou further increased the implementation support and reactiveness of the Bank, including additional technical missions on an ad-hoc basis. Fiduciary and safeguards supervision missions were conducted to regularly review compliance and ensured that recommended actions were properly implemented. Field-based fiduciary and safeguards specialists also proactively contributed to mitigating risks, as reflected by the project’s good performance in financial management and administering the resettlement compensation mechanism. During the initial years of project implementation, the Bank team did not include a specialist to support the implementation of the biomass component which led to delays in responses to client requests and contributed to slow implementation progress. 92. Throughout the project, the Bank team remained flexible. As the operating environment evolved, the team collaborated closely with the Government and Project Coordination Unit to revise work plans, add or drop activities in line with emerging needs and priorities, and focus on problematic segments such as the protracted delays in the implementation of Component 6, where additional resources eventually led to an acceleration in implementation of key activities and the achievement of most targets. This flexibility was also reflected in the design of the Additional Financing, including added activities supporting the preparation of the Adjarala hydropower site in response to power crisis, and two other extensions to the project. 93. While the M&E framework was modified during the restructuring/additional financing of June 2008, the changes made were not sufficient to properly monitor the progress towards achievement of the PDOs. (c) Justification of Rating for Overall Bank Performance Rating: Moderately Satisfactory 94. The overall Bank performance is rated as Moderately Satisfactory. The Bank team worked closely and continuously with the client throughout preparation and implementation, ensuring that the project responded to changing client needs. Three task team leaders led the project from identification to evaluation. Confronted with unexpected delays in the WAPG and lack of interest in SBEE from the private sector, the Bank worked with the Government to adjust the focus of the project mid-implementation from one that aimed at utility privatization to one that aimed at closing a growing power generation gap. This was accommodated under the same broad PDO.As the WAGP’s gas supply did not become as dependable as foreseen, integration of other activities (such as the Adjarala preparatory studies) has helped to speed the Government’s progress in developing alternative generation options to sustainable address the power crisis. 23 5.2 Borrower Performance (a) Government Performance Rating: Moderately Satisfactory 95. The government performance is assessed based on the performance of central government including: the Ministry of Energy and Petroleum; the Ministry responsible for Forestry and of Environment, and the Ministry of Finance as borrower on behalf of the Government of Benin. The Government effectively coordinated with stakeholders involved in the sector on the design and implementation of the project. Additionally, the Government of Benin displayed strong committed to the development objectives of the project including the introduction of private sector participation in SBEE before and during the project preparation. However, project effectiveness was delayed because of the GoB’s slowness in fulfilling effectiveness conditions, for example ratification of the subsidiary agreement by the Parliament took 10 months. The government procedures for approving counterpart funding were cumbersome, causing delays during the implementation of the project. However, this challenge was handled adequately after the restructuring of the project, in which SBEE and CEB were able to provide funding in lieu of the Government. Government approval of documents faced delays. Although the Government took the necessary steps to implement the legal and regulatory framework for private sector participation in the sector to improve governance and the financial viability of the sector, ultimately it did not actively pursue the privatization agenda due to lack of interest and the difficulties experienced by neighboring countries attempting to make the same reform. (b) Implementing Agency or Agencies Performance Rating: Moderately Satisfactory 96. The implementing agencies which were involved in the implementation of the project included the Project Coordination Unit within the General Directorate of Energy; the distribution utility, SBEE and the generation and transmission company, CEB. The overall performance of the coordinating and implementing agencies is rated Moderately Satisfactory. Despite problems encountered at the beginning of the project and challenges faced during implementation such as the lack of flow of information between the Project Coordination Unit and other key players of the ESDP which caused delays, the implementation of the project was successfully managed throughout the lifetime of the project. In addition, the project was fully compliant with fiduciary and safeguards policies throughout implementation. Progress reports, audits, and financial reports were submitted to the Bank in a timely manner. (c) Justification of Rating for Overall Borrower Performance Rating: Moderately Satisfactory 97. In light of the performance of the Government and of implementing agencies, the overall performance of the Borrower is rated as Moderately Satisfactory. After a slow start, the pace of 24 implementation improved as the Government and the implementation agencies found solutions to identified bottlenecks. The Borrower also showed flexibility in reacting to changing circumstances. 6. Lessons Learned 98. Despite many competing needs in the energy sector, projects should remain selective in their objectives and simple in their design. The combination of power sector reforms, transmission/distribution investments, and biomass energy activities reflected an overly ambitious and diffuse approach that could have benefited from further reflection on sector priorities and risks. This led to implementation delays and to divided attentions both in the Implementation Agencies and the Bank. Especially the relatively small biomass component resulted in high transaction costs. 99. Expectations for Private Sector Participation need to be realistic and necessary pre- conditions should be clearly identified and achievable. Private participation in SBEE was unsuccessful due to the fact that there was no interest from private sector to undertake the management of the utility SBEE mainly due to the following reasons: poor technical and financial performances of the utility; insufficient customer base; and inadequate legal framework. Similar gaps between expected and realized PSP emerged across the region during the 1990s and early 2000s as multilaterals and Governments overestimated sector readiness levels and private sector risk appetites. Privatization could eventually be successful though the following conditions would need to be satisfied: improved legal framework, particularly as it concerns concessionary terms; full-fledged and effective regulatory entity in place; suitable size and financial and technical condition of the utility to attract target investors; sound investment plan in place for the rehabilitation and/or expansion of networks and for the development of medium/long term energy infrastructures; adequate tariffs to enable cost recovery; and a transparent bidding process. It is important to note that the privatization of a state owned electricity utility, such as SBEE, should therefore be based on its specific condition rather than on a structural liberalization or privatization program. 100. Project objectives and targets should account for endogenous and exogenous risks potentially impacting outcomes and recognize inherent interdependency in the value chain. The project achieved many of its targets, including the completion of the North Togo – North Benin transmission line and stabilization of the southern distribution loop. Nevertheless, delays in the completion of the WAGP and pervasive supply constraints from neighboring countries (Ghana, and Nigeria) impacted the volumes of power being transmitted through these connections. The project could – and future project should – sufficiently take into account the interdependency inherent in the value chain to assess risks to project outcomes that may not be under the control of the project. Where necessary, the project could then put in place a contingency plan to respond to exogenous shocks in a timely and adequate manner. 101. Institutional development is a transaction-intensive and time-consuming process and such activities should be advanced as much as possible during project preparation while being given sufficient priority in project design and implementation. During the implementation of the ESDP project, it was acknowledged that the setting in place of the AFIC and the COFORMO 25 took more time than anticipated and significantly delayed the implementation of the biomass component. The project could not have achieved these targets within the initial timeframe envisaged. In addition, the establishment of the Electricity Regulatory Agency under the reform component of the project was completed within the project timeframe but the agency was not effective at project closing due to the fact that key staff remains yet to be appointed. The lengthy process to complete the appointment of key members of the Project Coordination Unit also underscores the challenges in setting up national institutions. 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners (a) Borrower/implementing agencies 102. The Bank received the Borrower’s Final Draft Completion Report (in French). The Borrower undertook an evaluation of: the project design and its relevance, the outputs of the project per component, and the Bank’s and the Borrower’s performance. In addition, the Borrower highlighted measures for the sustainability of the achieved outcomes and lessons learned relative to the biomass component. The report did not provide ratings. See Annex 7 for the summary of the report. 103. Consultations with stakeholders were conducted during the ICR preparation mission, and the Implementing Agencies noted that the Bank was slow in providing No Objections to procurement documents during the first years of implementation. However, they confirmed that delays were reduced since the appointment of a field-based Task Team Leader. (b) Co-financiers There were no issues raised by Co-financiers. (c) Other partners and stakeholders Not applicable 26 Annex 1. Project Costs and Financing (a) Project Cost by Component (in US$ Million equivalent) Actual/Latest Appraisal Estimate Percentage of Components Estimate (US$ millions) Appraisal (US$ millions) Power sector reform 5.00 5.50 110.00% Studies 2.60 1.44 55.38% Investment 66.40 66.70 100.45% Environmental and social 3.20 0.08 2.50% Institutional strengthening and 5.64 5.66 capacity building 100.35% Biomass energy and inter-fuel 5.75 5.41 substitution 94.09% Total Baseline Cost 88.59 84.79 95.71% Physical Contingencies 3.55 Price Contingencies 3.56 Total Project Costs 95.70 Total Financing Required 95.70 (b) Financing Appraisal Actual/Latest Type of Percentage of Source of Funds Estimate Estimate Co-financing Appraisal (US$ millions) (US$ millions) Borrowing Agency 0.50 Borrower 1.80 International Development Association (IDA) – Original 45.00 42.6 credit 94.67% International Development Association (IDA) – Additional 7.00 3.22 Financing 46.00% Nordic Development Fund (NDF) 12.00 18.79 156.58% Société de Gestion Intermédiaire 28.00 Sub-borrower(s) 0.40 West African Development Bank 8.00 8.44 105.50% 27 Annex 2. Outputs by Component Component 1: Power Sector Reform Sub-component Outputs Private sector participation in SBEE Private participation in SBEE was not achieved due to the fact that no private sector was interested in the management of SBEE. The feasibility study for the establishment of a “Société de Patrimoine” is ongoing. Regulatory capacity set up and training The Regulatory Agency was set up. Training was not completed within the project timeframe due to delays in hiring of key staff, which resulted from an unsuccessful hiring process through a recruitment firm. Media communications and PR activities This activity was completed. Component 2: Engineering Studies Sub-component Outputs Strategy for off-grid electrification This study was not completed under the ESDP project but was completed by the GoB outside the project. Feasibility study for Onigbolo-Parakou This study was completed. It was included in the transmission line feasibility study for the construction of the 161kV Onigbolo-Parakou and Sakété-Porto Novo transmission line. Load management & energy efficiency in This study was completed. Energy efficiency administrative buildings improvement measures for administrative buildings successfully enabled the sensitization of consumers on the efficient use of energy, upgrading of the RESUCIEL software for the monitoring of energy consumption, installation of capacitor banks in 14 buildings for power factor improvement, and enhancement of the wirings and installation of equipment for the efficient use of energy in 80 buildings. Studies for distribution expansion, This study was started under the ESDP and was reinforcement and rehabilitation completed after project closing in March 2013. EA, engineering & preparation of bidding Two studies were completed. The first study was documents for Sakété - Porto Novo the feasibility and preparation of bidding transmission line document for the construction of the 161kV Onigbolo-Parakou and Sakété-Porto Novo transmission line. The second study concerned the environmental assessment related to the construction of the 161kV Onigbolo-Parakou and 28 Sakété-Porto Novo transmission line. Update the CEB tariff study The update was completed. Preparation of standard bidding document This study was started under the ESDP but was for IPPs not completed. Additional Financing Outputs Economic analysis of the Adjarala hydro This study was completed in October 2012. generation project Panel of experts in the context of The setting in place of the panel of experts preparation of the Adjarala hydro commenced but was not completed under the generation project ESDP project. Hiring of an Engineering Consultant for the Terms of Reference were elaborated under the preparation of the Adjarala hydro ESDP project. This activity is now financed by generation project CEB. Component 3: Transmission and Distribution System Expansion Sub-component Outputs North Togo-North Benin Transmission The three activities were completed as follows: Line: The two transmission substations at Parakou and Lot 1b Substation in Djougou-Parakou at Djougou were constructed and commissioned (Benin); in April 2011. 163km of 161kV lines between Lot 3 161 kV line from the Togo-Benin Natitingou and Djougou and 106km of 161kV border to Djougou Parakou; lines between Bembèrèkè and Parakou were Lot 4 63 kV lines to Natitingou and constructed and commissioned. Bembèrèkè. Energy Efficiency in administrative This sub-component was fully implemented. The buildings following activities were completed: sensitization of consumers on the efficient use of energy in administrative buildings; upgrading of the RESUCIEL software for the monitoring of energy consumption in administrative buildings; installation of capacitor banks in 14 administrative buildings to improve the power factor; enhancement of the wirings and installation of equipment for the efficient use of energy in 80 administrative buildings; purchase of materials and equipment for the undertaking of energy audit. Urgent distribution work This sub-component was completed. The 5MVA distribution substation at Sèmè and the extension of the Akpakpa, Gbégamey, and Ouando existing substations were completed in December 2011. In addition, the installation of 15kV underground cables and the construction of distribution stations were commissioned in October 2010. 29 Additional Financing Outputs SBEE Rehabilitation of switchgear and This activity was completed in September 2012. protection equipment at the substation of Akpakpa power plant SBEE Construction of a distribution line in The installations of distribution cables and of a Cotonou distribution station in Cotonou were completed in September 2012. CEB Installation of protection equipment at Bidding documents were prepared but the substations to allow for operation of the installation of protection equipment at CEB southern transmission ring in Benin substations was not completed under the project. CEB Provision of cable potheads to link up This activity was completed. the Djougou and Parakou substations with the Medium Voltage (MV) lines and related communication equipment Extension of the supervision contracts to The implementation of this activity progressed accommodate additional tasks above but was not completed under the ESDP project. Component 4: Environmental and Social Component Sub-component Outputs Environmental Assessment for relocation This activity was dropped because the GoB of Gas turbine of 20MW to a site outside of decided to not relocate the Gas turbine. Cotonou. Compensation scheme for the HV lines The compensation scheme was established. The environmental management plan and the resettlement of populations were fully implemented. Environmental audit for SBEE The audit was not completed. Environmental study of the Adjarala hydro The study was not completed. The procurement generation project process started under the ESDP project. Additional Financing Outputs Environment Audit of Sèmè Oil Field The audit was not completed. Component 5: Institutional Strengthening and Capacity Building Sub-component Outputs Capacity building at the Ministry, and DGE This sub-component was completed. The institutional diagnostic of the Ministry of Energy, the training of its key staff and of staff from the Project Coordination Unit were undertaken. Capacity building at CEB The implementation of this activity was done. Training of CEB staff on planning, financial management, and environment was conducted. 30 Vehicles and office equipment The purchase of vehicles and office equipment was completed. Measuring equipment at CEB substations Measuring equipment including energy meters were installed at CEB substations. CEB human resource management audit The audit was not completed. SBEE human resource management audit The audit progressed under the ESDP project. Additional Financing Outputs Technical Assistance on Financial Technical assistance was started under the project Management for SBEE but not completed. Training for SBEE A hundred staff from SBEE received training. Component 6: Biomass Energy and Inter-fuel Substitution (US$6.20 million, IDA: US$5.70million) Sub-component Outputs Establishment of the National Household The achieved outputs of this sub-component are Energy Commission (CNCD); as follows: The National Household energy Establishment of the Permanent Sectorial Commission (CNCD) was established and is Information and Monitoring System functioning; the Ecological and Forestry (SIEP); Establishment of the Ecological Information System (SIEF) was set up and is and Forestry Information System (SIEF); functioning; the CoForMo(Communauté Rural Community Capacity Development Forestière du Moyen Ouèmè) and the AFIC in Moyen Ouèmè region; and Capacity (Agence Forestiere Inter-Communale) were building at General Directorate of Forest established and are functioning. Capacity and Natural Resources building for the General Directorate of Forests and Natural Resources commenced under the ESDP project and was partially completed. Support to Community-based forest A forest management covering 295,295 ha was management and strengthening of Forestry developed under the project. The procurement Service process of a technical assistance for the promotion of improved carbonization systems to maximize wood to charcoal conversion efficiency has started under the project but was not completed. The transfer of unclassified forests management to local government in the Moyen Ouémé is effective and 295,295 ha of forests are under community based sustainable management; The production of sustainable woodfuel has not yet started. Biomass Energy Efficiency and Inter-fuel The procurement process for the purchase of substitution 4,800 gas stoves was launched but not completed. The purchase of 30,000 improved cook stoves was completed under the project. In addition, the study for the promotion of the use of biofuel was completed. 31 The promotion of private sector based LPG and kerosene inter-fuel substitution programs, and identification and evaluation of the potential to produce and market other renewable biomass fuels started under the project but was not completed. Rural community development support The project promoted 120 apiarists in 12 villages who have established 840 hives. 12 facilities for the processing of honey were constructed in Dassa, Save, and Tchaourou districts. In addition, 12 water drilling systems were constructed and commissioned in January 2011in the same areas. 32 Annex 3. Economic and Financial Analysis Economic Analysis 1. During appraisal, the task team carried out an economic assessment of the interconnection North Togo / North Benin by means of a comparative analysis in which the transmission line solution is measured against an alternative solution based on isolated diesel power plants. The net economic benefits thus expressed the benefits gained of choosing the interconnection over the alternative. Economic rate of return was then estimated at 35% while net present value reached US$ 65 million. 2. The updated assessment of this ICR replicates the same methodology while using actual values instead of expected values for the period 2004-2012. The main data modified are: supply in Northern Benin1; breakdown of capital expenditure for the transmission line over the period 2005-2011; bulk energy charge; diesel charge and exchange rate. Original PAD Updated Bulk Energy Charge 37.5 FCFA /kWh 50 FCFA /kWh Diesel Charge 13 US cents /kWh 20 US cents /kWh Cost of power failure 1US$/kWh 1 US$ /kWh Exchange rate 550 FCFA/US$ 493 FCFA/US$ Discount Rate 10% 10% Supply shortage % under 1.5% 1.5% Interconnection Scenario Supply shortage % under 4.5% 4.5% Isolated Plants Scenario 3. Investments for isolated diesel plants in the Isolated Plants Scenario were cut by half. The underlying rationale to this assumption is that actual energy supplied to CEB northern region is almost half what was projected at appraisal stage; hence the need for investments in isolated diesel plants would have been also cut in half (while transmission investment is unchanged). This has significant implications on the economic return of the project which was revised downwards from 35% down to 19%. Net Present Value dropped from US$ 65 million down to US$ 16 million. However, the project remains profitable from an economic point of view despite serving a lower demand. 4. Economic cost of supply in interconnection scenario is 24 US$ cents per kWh versus 28 US$ cents per kWh in isolated plants scenario. Again, had the demand been higher, the spread between the two costs would have been larger than 4 US$ cents per kWh 1 Demand is expected to grow at 8% per annum as of 2013. 33 Energy Supply to the north Energy Demand - GWh NPV 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 CEB Northern Region 384.8 0.0 0.0 0.0 20.7 44.2 52.1 53.2 60.0 63.0 68.0 73.4 79.3 85.7 92.5 99.9 107.9 116.5 Supply Shortage - GWh interconnection 5.8 0.0 0.0 0.0 0.3 0.7 0.8 0.8 0.9 0.9 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 isolated power stations 17.3 0.0 0.0 0.0 0.9 2.0 2.3 2.4 2.7 2.8 3.1 3.3 3.6 3.9 4.2 4.5 4.9 5.2 interconnection line costs in MUSD NPV 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 total investment transmission lines $45.47 0 7.9 14.4 18.6 20.3 1.5 1.1 3 0 0 0 0 0 0 0 0 0 total energy charge from the grid $35.48 0.0 0.0 0.0 2.1 4.5 5.3 5.4 6.1 6.4 6.9 7.4 8.0 8.7 9.4 10.1 10.9 11.8 total O&M $7.06 0.0 0.0 0.0 0.2 0.6 1.0 1.5 1.6 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 economic cost of energy supplied 23 US cents per kWh Economic costs of TL power failure $5.25 0.0 0.0 0.0 0.3 0.7 0.8 0.8 0.9 0.9 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 economic cost of energy supplied inc. shortage 24 US cents per kWh isolated power stations in northern towns 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 total investment power plants $23.86 0 0.5 20 2.5 0 3.5 0 0 3 0 2.5 0 3.5 0 1 2.5 4 total O&M $69.96 0.0 0.0 0.0 4.1 8.8 10.4 10.6 12.0 12.6 13.6 14.7 15.9 17.1 18.5 20.0 21.6 23.3 economic cost of energy supplied 24 US cents per kWh Economic costs of TL power failure $15.74 0.0 0.0 0.0 0.9 2.0 2.3 2.4 2.7 2.8 3.1 3.3 3.6 3.9 4.2 4.5 4.9 5.2 economic cost of energy supplied inc. shortage 28 US cents per kWh Cost Difference excl. shortage $5.82 $0.00 ($7.40) $5.60 ($14.26) ($16.50) $6.11 $2.62 $1.35 $7.54 $5.03 $8.07 $6.15 $10.27 $7.45 $9.18 $11.47 $13.82 ERR excl. cost of shortage 14% Cost Difference incl. shortage $16.31 $0.00 ($7.40) $5.60 ($13.64) ($15.18) $7.67 $4.21 $3.15 $9.43 $7.07 $10.27 $8.53 $12.84 $10.23 $12.18 $14.70 $17.31 ERR including incl. cost of shortage 19% 34 Financial Situation of CEB 5. The appraisal team had found that CEB had very little margin for maneuvering in an environment of rising costs and continuous deterioration of CEB’s financial position. Losses in 2011 had reached 11.1 billion FCFA. In April 2002, CEB was allowed to raise tariffs and this improved the situation. As a result, the rate of return on average net fixed assets increased from a negative 11% in 2001 up to a positive 9% in 2002. 6. CEB’s financial projections by the team for the period 2004-2010 were based on the drop in power generation cost driven by the supply of cheaper gas from Nigeria through a gas pipeline as of 2005 and the operation of hydropower plant at Adjarala as of 2008. Nevertheless, Adjarala plant has been delayed and now expected to be commissioned by 2017/2018. Furthermore, the gas supply from Nigeria began in 2011 and is more expensive than expected. (9 US$ /mmbtu). The contractual gas volumes are not usually met and the supply has been erratic (one year suspension from 2012 to 2013). For all of these reasons, the expected drop in generation cost did not materialize; at least not at the magnitude projected. 7. However, CEB was still able to navigate through this environment posting positive results up until 2010 (except for 2005 where net income was -2.2 billion FCFA). Tariff has gradually increased during this period from 50 FCFA /kWh in 2004 up to 56 FCFA in 2010. 8. CEB is today in a difficult financial situation. While it had a positive net result in 2009 and 2010 (respectively 4.4 and 3.8 US$ million), the situation deteriorated in 2011 (deficit of 6.2 US$ million) and CEB now forecasts a large deficit for 2012 (49 US$ million) and 2013 (34 US$ million). 9. The reason for this degradation is that CEB’s average cost is increasing while the average tariff is stable (see graph below). The main reason for this evolution is the lack of gas supply from the WAPCo pipeline since a loss of pressure incident in August and temporary shutdown. As a consequence CEB has to buy expensive HFO based power from Contour Global, an IPP which was originally developed to run on natural gas. Demand growth also has an impact albeit smaller in the short term. As demand grows, CEB has to increasingly resort to energies with high marginal cost. 35 Figure 1: CEB’s Average Tariff, Average Cost (FCFA), and Net Result (FCFA billion) 80.0 67 FCFA billion for net result and subsidies 63 FCFA/kWh for average cost/revenues 58 56 60.0 54 51 51 54 56 51 50 52 40.0 40 41 20.0 1.5 3.0 2.2 1.9 - 2007 2008 2009 2010 2011 2012 2013 (20.0) Net result (3.1) (17.0) Average tariff (24.6) (40.0) Average operating cost Source: CEB financial statements and forecasts 10. While the key problem lies with the increase in average cost of generation, the efficiency of the CEB and its 488 staff should be increased, CEB’s productivity increased in 2012 (from 3.8 to 4.4 GWh sold/staff) but it is way below other similar companies such as Ghana’s GRIDCo (14.0 GWh sold/staff) and French’s RTE (59.9 GWh sold/staff). 11. As a result of the financial difficulties, CEB and the governments of Togo and Benin agreed on an increase from the current CEB tariff from 56 FCFA/kWh to 58 FCFA/kWh (less than what CEB asked for). CEB also asked for an annual automatic adjustment (upwards or downwards) instead of the 5 year average cost methodology that cannot take into account unexpected changes (the governments have not agreed on this yet). 36 Annex 4. Bank Lending and Implementation Support/Supervision Processes (a) Task Team members Responsibility/ Names Title Unit Specialty Lending Supervision/ICR Sylvain Adokpo Migan Sr Water & Sanitation Spec. TWIAF Hugues Agossou Sr Auditor IADVP Itchi Gnon Ayindo Senior Procurement Specialist AFTPW Mohamed Arbi Ben-Achour Consultant AFTN2 Manuel Berlengiero Energy Specialist AFTG2 Jean-Charles De Daruvar Senior Counsel LEGAM Rahmoune Essalhi Procurement Assistant AFTG1 Stephan Claude Frederic Sector Leader AFTSN Garnier Franklin Koffi S.W. Gbedey Energy Specialist AFTG2 Daria Goldstein Senior Counsel LEGLE Thanh Lu Ha Senior Program Assistant AFTG2 Alain Hinkati Sr Financial Management Specia AFTMW Helena Mamle Kofi Consultant AFTG1 Astrid Manroth Senior Energy Specialist ECSEG Said R. Mikhail Consultant AFTG1 Fanny Kathinka Missfeldt- Senior Energy Economist MNSSD Ringius Pepita Hortense C. Olympio Program Assistant AFMBJ F. Alain Onibon Agric. Economist AFTA1 Alain Ouedraogo Energy Specialist SEGES Robert A. Robelus Consultant AFTN2 Cheikh A. T. Sagna Senior Social Development Spec AFTCS Awa Seck Senior Economist AFTG2 Abdoul-Wahab Seyni Senior Social Development Spec AFTCS Katherine Deaton Steel Energy Specialist AFTG2 Tjaarda P. Storm Van Consultant AFTG1 Leeuwen Sylvie Charlotte Ida do Rego Program Assistant AFMBJ 37 (b) Staff Time and Cost Staff Time and Cost (Bank Budget Only) Stage of Project Cycle US$ Thousands (including No. of staff weeks travel and consultant costs) Lending FY03 150.68 FY04 181.78 FY05 36.11 FY06 0.00 FY07 0.00 FY08 0.00 Total: 368.57 Supervision/ICR FY03 0.00 FY04 0.00 FY05 147.64 FY06 101.17 FY07 112.20 FY08 181.36 Total: 542.37 38 Annex 5. Summary of Borrower's ICR and/or Comments on Draft ICR (Full text in French) Dans le souci de mettre en place un meilleur environnement pour les activités économiques, culturelles et sociales; le Gouvernement a engagé une série de réformes notamment la fourniture de services énergétiques de qualité et le développement des réseaux de distribution. C’est dans cette logique que le Projet de Fourniture de Services d'Energie (PFSE, projet d'envergure nationale a été initié suite à plusieurs constats. Il s’agit entre autres de la mauvaise qualité des services énergétiques, de l'utilisation à grande échelle de la bioénergie traditionnelle, de l'abandon de l’ancien projet d'interconnexion du réseau électrique du Nord-Benin et du Nord-Togo pour faute de financement, de la nécessité de réaliser des travaux urgents sur les réseaux électriques de Cotonou, Porto-Novo et Abomey Calavi pour améliorer la qualité et la disponibilité de l'énergie électrique, du besoin de formation des cadres du secteur de l'énergie dans certains domaines. Pour apporter des solutions à ces différents problèmes et proposer aux entreprises et aux ménages des services énergétiques de bonne qualité et à un coût réduit et de favoriser la production et l'utilisation de biocombustibles modernes, le Gouvernement du Bénin a négocié avec les partenaires au développement le financement du projet pour un coût initial de52, 635 milliards de francs CFA sur une durée de quatre ans. En 2008, le projet a bénéficié d’un crédit additionnel d’un montant de 3,5 milliards de francs CFA (soit 4 300 000 DTS), portant ainsi le coût total du projet à56, 135 milliards de francs CFA. L'objectif principal du projet est d'élargir l’accès des zones urbaines, périurbaines et rurales à l'énergie moderne et ce faisant d'améliorer la qualité de vie des communautés concernées. Description et démarrage du projet Historique La politique économique adoptée par le Bénin vise à terme le rétablissement des équilibres macro-économiques et une meilleure efficacité dans tous les secteurs de l’économie nationale. Avec l’avènement du renouveau démocratique, le Bénin est passé d’une économie planifiée à une économie libérale dont la croissance économique a été en 2002 environ de 6,4%. Mieux avec le développement du commerce international et la mondialisation de l’économie, le Bénin se doit tenir compte des règles et normes établies par une économie internationale de plus en plus concurrentielle. Dans une stratégie de développement durable où la lutte contre la pauvreté sera une priorité, le secteur de l’énergie occupera une place de choix pour le développement socio- économique de la Nation. L’économie béninoise est extrêmement sensible aux problèmes énergétiques au regard de la facture énergétique contraignante, de la faiblesse de la compétitivité des entreprises de production liée entre autres à des problèmes de disponibilité de l’énergie électrique de qualité et au coût relativement élevé de l’électricité, de l’importance de la consommation de la biomasse énergie (67% de la consommation totale d’énergie en 2002) par rapport aux autres formes d’énergie et de la faible efficacité énergétique entraînant un impact considérable sur l’environnement (déforestation, pollution de l’air, etc.). 39 C’est face à ces contraintes, que le Projet de Fourniture de Services d'Energie, est initié en vue d’apporter des solutions urgentes devant impulser l’économie Nationale, offrir de meilleures conditions de vie au sein des ménages et préserver l’environnement. Objectifs du projet L'objectif principal du projet est d'élargir l’accès des zones urbaines, périurbaines et rurales à l'énergie moderne et ce faisant de contribuer à l’amélioration de la qualité de vie des communautés concernées. A cet effet, quatre objectifs de développement ont été définis pour le projet à savoir : 1. Accélérer de manière commercialement soutenable, l'utilisation de l'électricité pour la croissance économique et les services sociaux afin d'améliorer la qualité de vie dans les zones non desservies ou mal desservies (périurbaines et rurales) ; 2. Renforcer la capacité du Bénin à étendre ses services énergétiques ; 3. Promouvoir la cooperation régionale ; 4. Améliorer la gouvernance du sous-secteur de la biomasse-énergie et renforcer les capacités des institutions intervenant dans la gestion du sous-secteur. Composantes du projet Le projet comprend six composantes à savoir, (i) la Réforme du secteur de l’énergie, (ii) les Etudes d’ingénierie, (iii) les Investissements, (iv) les Aspects environnementaux, (v) le Renforcement institutionnel et développement des capacités et (vi) la Biomasse-énergie et énergies de substitution. Objectifs par composante  La composante « Réforme du secteur de l’énergie » vise à assurer l’assistance conseil à la SBEE pour la création d’un partenariat public-privé pour la distribution de l’électricité, et l’aide à l’établissement d’un système réglementaire et d’un Organe de régulation du secteur de l’électricité.  La composante « Etudes d’ingénierie »vise la réalisation des études d’ingénierie dans le but de renforcer la distribution électrique au Bénin dans les zones rurales et urbaines.  La composante « Investissements » est la plus importante du projet. Elle comprenddeux sous-composantes à savoir : (i)Sous-composante Transport: Interconnexion Nord-Togo et Nord-Bénin dont le but est de permettre aux villes du nord du Bénin d’être connectées au réseau de la CEB et de bénéficier d’une électricité dont le coût de revient est inférieur à celui des groupes diesels isolés actuels ; (ii)Sous-composante Distribution pour d’une part la fourniture et la pose d’équipements nécessaires pour améliorer l’efficacité énergétique des bâtiments administratifs et d’autre part pour la réalisation des travaux de renforcement et d’extension des réseaux électriques de Cotonou, Porto-Novo et Sèmè pour le bon fonctionnement du système de distribution.  La composante« Aspects environnementaux » vise à prendre en compte les aspects environnementaux et sociaux du projet. 40  La composante « Renforcement institutionnel et développement des capacités » vise à renforcer les capacités des structures intervenant dans le secteur de l’énergie, sous tutelle du Ministère en charge de l’énergie et les aider à établir et à opérationnaliser leurs rôles et fonctions dans le secteur.  La composante « Biomasse-énergie et énergies de substitution » vise la rationalisation du sous-secteur de la biomasse énergie et la promotion des énergies alternatives efficaces de substitution au bois-énergie pour le secteur des ménages et les PME, y compris des combustibles endogènes renouvelables. Le PFSE a bénéficié, en 2008, d’un Fonds Additionnel d’une valeur de sept (07) millions de dollars soit environ trois milliards cinq cent millions (3 500 000) de francs CFA. Ce Fonds est destiné à financer les activités étendues du projet qui ont augmenté proportionnellement le programme du projet en vue d’améliorer l'impact de développement du projet de façon rentable. Organisation et réalisation du projet au sein du Ministère de tutelle, des autres ministères et des agences partenaires dans l’exécution du projet Les organes de mise en œuvre Le PFSE est placé sous l’autorité du Ministère de l’Energie, des Recherches Pétrolières et Minières, de l’Eau et du Développement des Energies Renouvelables (MERPMEDER) et sous la responsabilité de la Direction Générale de l’Energie (DGE). La Coordination Générale du projet est assurée par une Unité de Coordination du Projet (UCP) logée à la DGE. Plusieurs structures sont impliquées dans la mise en œuvre des différentes composantes du projet. Il s’agitde :  la Direction Générale de l'Energie (DGE) ;  la Communauté Electrique du Bénin (CEB) ;  la Société Béninoise d'Energie Electrique (SBEE);  la Direction Générale des Forêts et des Ressources Naturelles (DGFRN);  le Centre National de Télédétection et de surveillance du couvert végétal (CENATEL);  la Communauté Forestière du Moyen-Ouémé regroupant les Communes de Dassa-Zoumé, de Savè, de Ouèssè, de Glazoué et de Tchaourou. Le système de suivi-évaluation Pour la mise en œuvre du projet, il est prévu selon le manuel de procédure, un cadre logique par composante et un système d’information qui sous-tend les rapports trimestriels, semestriels et annuels. Système de gestion des risques Il est à noter que dans le cadre du présent projet, plusieurs outils ont été élaborés notamment le manuel d’exécution du PFSE. Seulement, parmi ces outils, il n’est apparu à aucun niveau l’outil relatif au tableau des risques. 41 Conception, exécution, réalisation et impact du projet Evaluation de la conception et de la pertinence du projet L’évaluation de la pertinence vise deux priorités. Il s’agit de porter un jugement sur la mesure dans laquelle les objectifs du PFSE : (i) s’inscrivent dans le cadre de la politique globale et de la stratégie de développement du secteur de l’énergie au Bénin (cohérence externe) ; (ii) correspondent aux besoins et aux priorités des bénéficiaires (cohérence interne). L’évaluation de la pertinence s’intéresse également à la quantité et à la qualité des resso urces (humaines et financières) allouées au programme pour la réalisation de ses activités ainsi qu’à la pertinence des stratégies et des procédures de mise en œuvre (cohérence interne). Le projet, de par son organisation à travers la conception des six composantes, est bien pensé. En effet, de l’analyse des informations recueillies auprès des acteurs du projet, il ressort que la Banque Mondiale (BM), avant le démarrage, a procédé à une pré-évaluation des agences d’exécution, notamment en ce qui concerne leur capacité technique, leur capacité en matière de gestion financière et en matière de passation des marchés. Sur cette base le projet a, par exemple, dévolu la responsabilité de la passation des marchés à chaque agence d’exécution à savoir la SBEE et la CEB. Au niveau de l’UCP, l’équipe complète n’était pas en place au démarrage, c’est au cours de la mise en œuvre que la nécessité de mettre en place telle ou telle équipe s’est fait sentir. Par ailleurs, certaines composantes du projet ont fait l’objet de critique de par leurs insuffisances au plan structurel et ayant freiné la mise en œuvre. Il s’agit du caractère complexe de la composante Biomasse qui a été souligné avec pour corollaire plusieurs difficultés de mise en œuvre de certaines activités de cette composante. Il est également noté que dans la structuration du projet, le positionnement de la cellule « Efficacité Energétique » n’a pas facilité l’exécution des activités parce que noyé dans les composantes, ingénierie et investissement. Elle ne dispose pas d’une autonomie fonctionnelle lui permettant de mettre en œuvre convenablement son plan de travail. La Composante « Aspects environnementaux », bien que prévue, il manquait un responsable chargé d’exécuter le travail de façon formelle car le cadre de gestion environnementale et sociale du projet a été tardivement mis en place. Dans l’ensemble, la conception du projet est satisfaisante dans la mesure où elle a permis :  la fourniture d’énergie électrique fiable (à plein temps) provenant du réseau interconnecté du Nord du Togo pour les localités du Nord-Bénin, suite à la réalisation des travaux d’interconnexion électrique du Nord-Bénin et du Nord-Togo;  la promotion de l’efficacité énergétique au niveau de l’administration publique ;  le renforcement des réseaux de distribution de la SBEE dans les villes de Cotonou, Sèmè et Porto-Novo ;  la promotion des conditions favorables à la substitution énergétique dans le sens d'une meilleure efficacité énergétique ; 42  le développement des capacités techniques de gestion durable des ressources forestières du domaine protégé de l’espace CoForMO pour la production du bois-énergie basée sur des plans d’aménagements ;  le renforcement des capacités des acteurs du secteur énergie. Principaux résultats obtenus par composante du projet Au 31 décembre 2012, le PFSE a atteint un niveau d’exécution physique des activités satisfaisant. Par composante, les détails sur le niveau d’exécution montrent ce qui suit : Composante« Réforme du secteur de l’énergie » Les résultats obtenus au niveau de cette composante sont structurés en trois points :  Mise en œuvre d’un plan de redressement technique, financier commercial et organisationnel de la SBEE sur décision du Gouvernement. Ce qui a permis (i) la diminution de la production thermique (arrêt des locations de groupes, diminution de combustibles utilisés) à la faveur du développement des interconnexions ; (ii) le relèvement des tarifs (en 2009 et en 2010) qui ont mis fin à la vente à perte du produit ; (iii) l’actualisation de la formule d’indexation tarifaire en vue de son application et (iv) la prise en charge par l’ABERME des investissements relatifs à l’électrification des zones rurales (qui ne sont pas rentables).  Elaboration et mise en œuvre par le Cabinet TROPIC COMMUNICATION des plans de communication sur les composantes du projet PFSE. Composante « Etudes d’ingénierie » Au niveau de cette composante, les résultats obtenus se résument comme suit :  Réalisation des études pour l’efficacité énergétique et la gestion de la puissance appelée dans les bâtiments administratifs : il s’agit des audits énergétiques réalisées sur 44 sites administratifs, d’une étude relative à l’élaboration de la stratégie d’économie d’énergie dans le secteur public, d’une étude relative au code d’efficacité énergétique dans les bâtiments : Normes relatives aux bâtiments administratifs, ainsi qu’une étude relative à l’évaluation des projets pilotes d’économie d’énergie réalisés sur 5 sites administratifs ;  Réalisation de l’étude de faisabilité pour les lignes d’interconnexion 161 kV Onigbolo- Parakou et Sakété-Porto/Novo ;  Réalisation de l’évaluation environnementale relative à la construction des lignes d’interconnexion 161 kV Onigbolo-Parakou et Sakété-Porto/Novo ; Composante « Investissements » .Les résultats obtenus se présentent comme suit par sous- composante : Sous-composante Transport, avec la réalisation de l’interconnexion du réseau de transport de l’énergie électrique du Nord-Togo à celui du Nord-Bénin par la construction des six grands ouvrages ci-après : (i) 254 km de ligne 161 kV entre la frontière du Togo jusqu’à Parakou en passant par Djougou (ii) deux (02) postes de transformation HT/MT (Djougou et à Parakou), (ii) deux (02) lignes parallèles de 20 kV reliant le nouveau poste de Parakou à la centrale thermique et au poste de 20 kV existant, (iv) 76 km de ligne 33 kV raccordant Natitingou à Djougou, (v) 43 106 km de ligne 33 kV raccordant Bembèrèkè à Parakou, (vi) deux (02) postes de transformateurs HT/MT à Natitingou et Bembèrèkè. Sous-composante Distribution : les résultats suivants au niveau du volet Efficacité Energétique sont obtenus : o Des matériels et supports de sensibilisation à l’utilisation rationnelle de l’énergie (dépliants, affiches, étrennes, panneaux, autocollants, spots, films audio-visuels) ont été conçus, réalisés et diffusés dans les structures administratives (ministères et institutions de l’Etat) ainsi qu'au niveau des différentes chaînes de télévision et de radio (ils ont également servi à l’organisation des campagnes de sensibilisation à l’utilisation rationnelle de l’énergie) ; o Quatorze (14) armoires de batteries de condensateurs à compensation automatique, de capacité totale 770 KVAr, ont été acquises et posées au niveau de 14 abonnés de la moyenne Tension de l’administration publique pour corriger les mauvais facteurs de puissance précédemment diagnostiqués au niveau des installations électriques intérieures. Ainsi par la suppression des pénalités antérieurement facturées, une économie financière annuelle de 36 millions de F CFA au moins a été réalisée pour un investissement de 46 millions F CFA environ ; o Des dispositifs de limitation de la durée de fonctionnement des équipements électriques en absence des usagers dénommés « économiseurs d’énergie » sont acquis et posés à titre expérimental dans quatre-vingt (80) bureaux administratifs : 20 à 40% d’économies d’énergie sur les consommations d’électricité de ces bureaux sont attendues ; o Des travaux d’implantation de projets pilotes en efficacité énergétique ont été réalisés sur cinq sites administratifs. D’après l’évaluation justifiée faite par la firme canadienne Econoler, une économie annuelle d’énergie de plus de 382 MWh, soit un gain financier de plus de 41 millions de F CFA par an est réalisé sur les dépenses liées aux consommations d’électricité de l’administration publique suite aux mesures mises en œuvre et qui peuvent se généraliser sur les autres bâtiments administratifs ; o Au niveau du volet Renforcement du réseau de distribution, les résultats ont porté sur la réalisation de travaux d’amélioration de réseau de distribution d’électricité dans les villes de Cotonou, Porto-Novo et Sèmè avec notamment : (i) la construction dans la Zone Franche Industrielle de Sèmè d’un poste de transformation 63/15 KV de capacité 5MVA, (ii) l’extension de plusieurs sous-stations existantes (Akpakpa et Gbégamey à Cotonou, Ouando à Porto-Novo), (iii) le renforcement de la liaison 63 KV entre les postes de Vèdoko et de Gbégamey par la pose de 4,6 km de câbles souterrains, (iv) le renforcement de réseau de distribution à Cotonou et Porto-Novo par la construction de 18,4 km de ligne MT et de postes de transformation. Composante « Aspects environnementaux ». Au niveau de cette composante, deux (2) principaux résultats sont à retenir : (i) le dédommagement des populations touchées le long de la zone d’emprise de la ligne d’interconnexion Nord-Togo Nord-Bénin, (ii) la réalisation du schéma de compensation pour la ligne d’interconnexion électrique Onigbolo-Parakou et Sakété- Porto/Novo. Composante« Renforcement institutionnel et développement des capacités ».A ce niveau six (6) principaux résultats : (i)réalisation de l’étude relative au diagnostic institutionnel du Ministère en charge de l’Energie, (ii) formation des membres de l’Unité de Coordination du P FSE et de 44 certains cadres du secteur de l’énergie et de l’Administration centrale du Ministère, (iii) formation des cadres de la CEB dans les domaines de planification, de la gestion financière et environnementale, (iv) acquisition des équipements de mesure pour les sous-stations de la CEB en vue d’améliorer la facturation et le développement d’une structure tarifaire plus efficace, (v) réalisation en cours de l’audit de gestion des ressources humaines de la CEB, (vi) démarrage de la réalisation par le consultant GECA Prospective de l’audit de gestion des ressources humaines de la SBEE. Les activités qui n’ont pu être achevées ont été transférées au projet DAEM. Composante « Biomasse-énergie et énergies de substitution ». Les résultats obtenus se présentent comme suit par sous-composante : Sous-composante Développement des capacités institutionnelles du sous-secteur de la biomasse-énergie avec : (i) la création et la mise en place de la Commission Nationale des Combustibles Domestiques (CNCD) qui a démarré ses activités le mardi 07 juillet 2009, (ii) la conception et la mise en place à la Direction Générale de l’Energie (DGE) du Système d’Information pour l’Evaluation Permanente des combustibles domestiques (SIEP), (iii) la mise en place à la DGE d’un Système d’Information Géographique (SIG), (iv) la conception et la mise en place au CENATEL du Système d’Information Ecologique et Forestier (SIEF), (v) la construction de quatre postes forestiers dans le cadre de l’appui du projet à l’administration forestière pour une surveillance plus efficace des activités de production du bois-énergie dans la région du Moyen-Ouémé, (vi) l’appui technique et financier à cinq (05) communes des départements des Collines et du Borgou (Dassa, Glazoué, Ouèssè, Savè et Tchaourou) pour la création d’une Association dénommée la Communauté Forestière du Moyen Ouémé (CoForMO) en vue de mettre en place des systèmes de gestion planifiée et écologiquement soutenable des ressources forestières exploitables pour la production du bois-énergie (bois de feu et charbon de bois). Le processus de mutation de la CoForMO en un Etablissement Public de Coopération Intercommunale (EPCI) est en cours. La CoForMO est dotée d’une structure technique dénommée Agence Forestière Inter-Communale (AFIC). Avec l’appui du projet, le personnel de cette agence a été mis en place le 27 janvier 2011 et a intégré en août 2011 les locaux de ladite agence construite sur financement du projet, (vii) la conception d’un cadre d’assistance de l’Etat aux communes de la CoForMO par l’élaboration d’un Contrat-plan entre l’Etat et la CoForMO. Toutefois, suite aux dispositions prévues par la loi N°2009-17 du 13 août 2009, portant modalité de l’intercommunalité en République du Bénin, qui prévoie que l’association entre communes en République du Bénin ne peut se faire que dans le cadre d’un Etablissement Public de Coopération Inter-commune EPCI, le PFSE a appuyé la CoForMO à entreprendre le processus de sa mutation en un EPCI. Sous-composante Appui à la gestion communautaire du domaine protégé du Moyen Ouémé. Cette sous-composante a permis de réaliser en décembre 2012 les études socio-économiques et d’élaborer cinq plans d’aménagement sur 300.000 ha de massifs forestiers du domaine protégé de la zone du Moyen-Ouémé, de lancer le processus de sélection de consultant devant former les paysans aux techniques améliorées de carbonisation et de bûcheronnage. Cette formation a été reprogrammée dans le projet DAEM. Sous-composante Appui au développement des communautés rurales. Ici, trois points essentiels sont à retenir : (i) les activités de promotion apicole et fruitière ont déjà permis de promouvoir 120 apiculteurs, dans 12 villages, qui ont implanté 600 ruches et 240 ruchettes, et ont planté 120 ha d’anacarde, (ii) la construction de douze mielleries dans les communes de Dassa, Savè et Tchaourou dans le cadre de l’appui du projet aux communautés rurales présentes dans 45 l’espace CoForMO, (iii) la construction par l’entreprise FORAG de 12 forages d'eau dans quatre villages de chacune des communes de Dassa, Savè et Tchaourou. Deux forages se sont révélés négatifs. Ces deux ouvrages négatifs seront repris dans le cadre des travaux de construction de forages planifiés sur le projet DAEM. Le fonds additionnel au crédit initial du PFSE, a permis d’obtenir les résultats suivants : (i) la réalisation de l’étude d’analyse économique dans le cadre de la préparation de la centrale hydro - électrique d’Adjarala, (ii) le recrutement du Panel d’experts sur l’énergie hydraulique dans le cadre de la préparation de la centrale hydro-électrique d’Adjarala, (iii) la réhabilitation des organes de coupures et de protection de la sous station de la centrale d'Akpakpa, (iv) la construction d'un câble d’énergie dans la ville de Cotonou et d’un poste d’étoilement, (v) renforcement des capacités du personnel de la SBEE. Au regard de toutes ces activités développées, comment est organisée la coordination et la gestion du projet. Coordination et gestion du projet  Les responsabilités de la Coordination Générale du projet et des représentants sectoriels concernés L’Unité de Coordination du Projet (UCP) est chargée de l’exécution et du suivi des activités quotidiennes du projet y compris la passation des marchés, les décaissements, la gestion administrative, comptable et financière du projet. L’UCP comprend : un Coordonnateur Général du Projet, un Directeur Administratif et Financier, un Spécialiste en Passation des Marchés, un Responsable Suivi-Evaluation, un Responsable chargé des aspects environnementaux et sociaux, un Coordonnateur de la composante Biomasse, un Responsable du volet Efficacité Energétique, un Coordonnateur du volet mis en œuvre par la CEB et un Coordonnateur du volet mis en œuvre par la SBEE. Les agences d’exécution des différentes composantes du projet, sont représentées par la Direction Générale de l'Energie qui s’occupe de la mise en œuvre de la composante Biomasse et du volet Efficacité Energétique, la Communauté Electrique du Bénin et la Société Béninoise de l'Energie Electrique. Les équipes de coordination des agences d’exécution (SBEE, CEB) sont composées d’un coordonnateur, assisté d’un spécialiste en gestion financière, d’un spécialiste en passation des marchés et d’un spécialiste aux aspects environnementaux et sociaux. Il y a également la Direction Générale des Forêts et des Ressources Naturelles qui apporte son appui au projet dans le cadre de la mise en œuvre des activités de la composante Biomasse-énergie et énergie de substitution, le Centre National de Télédétection chargé d’animer le Système d’Information Ecologique et Forestier et les Communes de Dassa-Zoumé, de Savè, de Ouèssè, de Glazoué et de Tchaourou qui interviennent au niveau du projet dans la sous-composante appui à la gestion communautaire du domaine protégé du Moyen Ouémé de la composante Biomasse-énergie et énergies de substitution.  Relation entre le comité de suivi et les décideurs politiques Les relations de l’Unité de Coordination du Projet avec le Ministère en charge du Développement et le Ministère de l’Economie et des Finances à travers leurs structures techniques sont souvent bonnes. Toutefois, la mise en œuvre du projet a souffert des retards dans le traitement des dossiers soumis aux structures du Ministère de l’Economie et des Finances (DNCMP, DGB, CF). 46  Relations entre le comité de suivi et les responsables sectoriels des composantes Bien que l’exhaustivité de l’équipe de l’Unité de Coordination du Projet n’a été effective que trois (3) ans après le démarrage du projet, elle est parvenue à fonctionner de manière satisfaisante selon les acteurs avec les équipes de gestion au niveau des agences d’exécution des composantes. Les relations entre les différentes composantes et l’unité de gestion du projet ont été des relations fonctionnelles en ce sens que chaque structure technique du projet dispose de compétences avérées pour la mise en œuvre des actions prévues dans un but commun à savoir les objectifs du projet. Tandis que la partie administrative, financière et suivi-évaluation est gérée par l’unité de gestion.  Principalesleçons à tirer Nécessité d’accorder des facilités dans le processus de passation de marchés en vue d’accélérer l’exécution des activités programmées dans le cadre des financements extérieurs de la Banque Mondiale. Eviter une contrepartie béninoise dans la définition des coûts des contrats de marchés signés avec des prestataires car la définition d’une contrepartie béninoise à imputer au coût du marché rallonge la durée du processus d’attribution du marché. Analyse critique de l’action de la Banque mondiale, du Gouvernement et de l’assistance technique Appréciation de l’action de la Banque Mondiale au cours de l’exécution du projet L’action de la Banque est appréciée à travers les principales décisions ayant contribué à l’exécution du projet, celles ayant freiné son évolution et la stratégie de suivi mise en place pour veiller au bon déroulement du projet.  Principales décisions ayant favorisé l’exécution du projet Prorogation de la durée d’exécution du projet. Cette autorisation a permis au projet d’avoir un meilleur niveau de décaissement avant sa clôture.  Principales décisions ayant freiné l’exécution du projet Autorisation en mai 2010 du chargé du projet à la Banque relative à la reprise du processus de constitution de la liste restreinte des consultants pour la réalisation de l’étude pour le renforcement du réseau de distribution de la SBEE suite à la demande de la Direction Générale de la société. Cette décision a retardé la réalisation de l’activité pour laquelle le processus de sélection était déjà très avancé. Au total, la réalisation de cette étude dans le cadre du projet PFSE a accusé plus de 15 mois de retard. La conséquence de cette situation dans le cadre du projet DAEM est le grand retard accusé dans le démarrage du processus de passation de marché pour le recrutement des entreprises qui auront à réaliser les travaux de renforcement des réseaux. Cette situation est en partie à la base des difficultés de décaissements au niveau du volet A du projet DAEM. 47 La leçon à tirer de cette situation est que certaines interventions des Autorités hiérarchiques, à divers niveaux, dans la gestion quotidienne des projets peuvent créer des préjudices aux projets.  Suivi du projet par la Banque Mondiale : o Organisation des missions de supervision du projet par l’équipe de la Banque Mondiale deux fois par an; o Organisation des vidéo/audio conférences entre l’UCP, les équipes de gestion des composantes et l’équipe de supervision du projet au niveau de la Banque ; o Echanges réguliers entre le Coordonnateur général du projet et le Chargé du projet à la Banque.  Principalesleçons à tirer: o En cours d’exécution d’un projet d’envergure nationale, les décisions positives ou négatives doivent tenir compte des documents de base du projet et de l’avis d’un certain nombre d’acteurs clés (Coordonnateurs des composantes, Responsables de structures bénéficiaires, structure de financement); o la mise en place d’un espace de concertation périodique de tous les acteurs du projet pour d’éventuels réajustements techniques en vue d’une bonne exécution des activités ; o le plan de suivi et de celui de gestion des risques apparaissent comme des éléments essentiels au démarrage d’un projet pour une gestion efficace et efficiente ; Appréciation de l’action du Gouvernement au cours de l’exécution du projet L’appréciation de l’action du gouvernement est évaluée à travers trois données : les principales décisions ayant contribué à l’exécution du projet, celles ayant freiné sont évolution et la stratégie de suivi mis en place pour veiller au bon déroulement du projet.  Principales décisions ayant favorisé l’exécution du projet : o Désignation en 2012 des points focaux des structures du Ministère de l’Economie et des Finances (DNCMP, DGB, SI, CF, DGTCP) pour le compte du MERPMEDER pour un meilleur suivi des dossiers du ministère au niveau de ces structures.  Principales décisions ayant freiné l’exécution du projet : o L’ouverture et la fermeture intermittentes du Système Intégré de Gestion des Finances Publiques (SIGFiP) surtout pour les ressources du Budget National ; o Le chargement en 2009 à hauteur de 40% au plus des crédits de la contrepartie à cause des difficultés de trésorerie qu’a connu le pays au cours de cette année ; o L’abattement en 2010 des crédits de la contrepartie du projet à cause des difficultés de trésorerie qu’a connu le pays au cours de cette année ; o La mutation des cadres à la tête des structures impliquées perturbe la gestion. Le fait que la coordination du volet exécuté par la SBEE n’a pas eu une coordination 48 stable, a été une difficulté dans la gestion du projet et dans la passation des marchés. o La nomination en décembre 2006 du Coordonnateur du projet au Poste de Conseiller Technique à l’Energie du Ministre en charge de l’Energie et la tentation de le remplacer par le Directeur Général de l’Energie d’alors a constitué une nouvelle contrainte dans la gestion du projet.  Suivi du projet au niveau des Ministère de l’Energie, des Recherches Pétrolières et Minières, de l’Eau et du Développement des Energies Renouvelables et du Ministère du Développement, de l’Analyse Economique et de la Prospective D’une manière générale pour le suivi de la mise en œuvre des activités des projets, il y a : o L’organisation au niveau du MERPMEDER des revues trimestrielles des PTA de tous les projets du ministère ; o L’organisation de la revue annuelle conjointe Gouvernement–Banque Mondiale du portefeuille de la Banque ; o L’organisation chaque deux mois et depuis le 12 décembre 2011 sous la présidence du Ministre en charge du Développement et en présence du Représentant Résident de la Banque Mondiale de la revue des projets financés par la Banque Mondiale au Bénin. o Principales leçons à tirer : deux principales leçons à tirer (i) l’implication effective et la mobilisation générale de tous les acteurs du projet ont été déterminantes pour l’atteinte des objectifs fixés, (ii) la présence régulière sur le terrain du bailleur de fonds permet de réaliser un suivi régulier des activités et à identifier avec la coordination du projet, les responsables des volets CEB et SBEE les problèmes qui se posent et les solutions pour les surmonter. Evaluation de l’efficacité et de la qualité des relations entre la Banque mondiale et le Gouvernement durant l’exécution du projet Les relations entre la Banque mondiale et le Gouvernement durant la durée du projet sont globalement bonnes. Les actions de la Banque mondiale au cours de l’exécution du projet concernent : a) Le décaissement des ressources IDA, b) l’émission des avis de non objection, c) la réalisation des missions de supervision et d’appui de la Banque Mondiale La Banque a régulièrement effectué les décaissements de fonds selon les procédures et émis les avis dans les délais relativement requis. Il faut souligner néanmoins que jusqu’en 2010 le projet a souffert des retards significatifs dans l’émission des avis de non objection. Sur le plan des missions de supervision, deux missions s’effectuaient par an et le suivi et la mise en œuvre des recommandations qui en découlent ont été régulièrement assurés par la Banque Mondiale et la partie béninoise. Les performances du Gouvernement concernent essentiellement : a) la coordination du projet à travers la mise en place et le fonctionnement de l’UCP, b) la mise en place des fonds de contrepartie et c) les procédures de passation des marchés. 49 Pour la coordination, l’UCP mise en place par le Gouvernement a su coordonner l’exécution du projet, suivre les activités quotidiennes du projet y compris la passation des marchés, les décaissements, la gestion comptable et financière du projet. Toutefois, le bon fonctionnement est entaché par deux difficultés majeures : il y a d’une part la mobilisation des fonds de contrepartie sur des projets de financement extérieur. Au démarrage du projet, il y avait déjà une difficulté majeure concernant l’accord du crédit où il était prévu que le Bénin mette en place une avance initiale de 150 000 000 qui devait servir de contrepartie pour le financement du projet qui était la conditionnalité de mise en vigueur du projet n’était pas inscrit au PIP. Les deux principaux bénéficiaires du projet (la SBEE et la CEB) ont été sollicités pour mettre en place respectivement cinquante (50) millions et cent (100) millions chacun pour satisfaire à la conditionnalité de mise en vigueur. D’autre part, il y a les problèmes d’ordre systémiques de passation des marchés. Ces problèmes concernent les délais relativement longs pour le traitement des dossiers par les structures du MEF plus particulièrement la DNCMP, le délai relativement long pour l’approbation des contrats par le MEF et surtout les grèves des agents du MEF pendant huit mois environs au cours de l’année 2010. Evaluation des performances des différentes institutions, bureaux d’études et leurs effets L’évaluation des performances des structures impliquées dans la mise en œuvre du projet concernera essentiellement la DGE (à travers l’équipe Biomasse et l’équipe Efficacité Energétique), la SBEE, la CEB, la DGFRN, le CENATEL, l’AFIC et certains bureaux d’études ayant offert des prestations de service dans le cadre de ce projet. Performance de l’équipe Biomasse-énergie et combustibles de substitution Cette équipe est chargée de la mise en œuvre de la composante Biomasse. Malgré son caractère complexe et le retard observé dans la mise en place de l’équipe (2008), le développement des activités prévues dans cette composante a été relativement satisfaisant car trois des quatre composantes prévues ont été entièrement mises en œuvre, la quatrième partiellement. En termes d’effet, au niveau du CENATEL l’installation du SIEF, le Système d’Information Ecologique et Forestier permet de mesurer la dynamique de la végétation notamment sur le couvert végétal concerné par le projet. Il y a également la CoForMO, l’association des communes du Moyen-Ouémé pour la gestion durable des ressources forestières qui est doté d’un organe technique appelé AFIC, intervient de façon opérationnelle sur le terrain. Par ailleurs, des activités génératrices de revenu sont introduites au niveau des communes bénéficiaires du projet à travers la formation, l’encadrement des apiculteurs dans douze villages. Ces apiculteurs ont bénéficié d’équipements appropriés pour la production et la commercialisation de miel. Un impact économique est insufflé dans ces villages. Il faut cependant faire observer qu’en raison de certaines contraintes, quelques activités n’ont pas pu être achevées par l’équipe Biomasse-Energie dans le délai d’exécution du projet. Il s’agitprincipalementde:  la prise de certains documents de base pour la CoForMO (Contrat Etat-CoForMO, Convention de partenariat entre la DGFRN et la CoForMO) dont le processus n’a pas pu être conduit à terme ; 50  la promotion de 4000 équipements de cuisson à gaz et de 20 000 foyers améliorés dans les communes de Cotonou, Porto-Novo, Abomey-Calavi et Parakou. Performance de l’équipe Efficacité Energétique et effets induits Bien que noyé dans les composantes, ingénierie et investissement et le retard dans la mise en place de l’équipe de gestion, les objectifs qui étaient poursuivis par ce volet ont été largement atteints à la fin du projet, même si cela a été possible après le prolongement du projet. Ainsi, les résultats obtenus notamment la suppression des mauvais facteurs de puissance et les autres mesures d’économie d’énergie au niveau des administrations ayant bénéficié des actions du projet, permettent aujourd’hui d’envisager la nécessité de développer ces genres d’activités à grande échelle sur l’ensemble des administrations publiques en République du Bénin. Les actions de communication menées par l’équipe ont amené l’Etat (principal bénéficiaire de ce volet) à prendre conscience de la nécessité de gérer efficacement l’énergie en officialisant les comités de gestion de l’énergie mis en place dans tous les Ministères par le projet. Performance de l’équipe de gestion du volet CEB et des effets induits Cette équipe a géré les plus gros investissements du projet. Les principales activités ont été réalisées avec succès, notamment l’interconnexion du Nord du Bénin au réseau Nord du Togo. Le projet des dix communes à travers lequel beaucoup de localités ont été connectées grâce à cette interconnexion Nord Togo- Nord Bénin, aussi, le nombre des abonnés au niveau de la SBEE, a augmenté. Ces différentes connexions électriques (construction de réseaux interconnectés) ont permis d’arrêter l’exploitation des Centrales du Nord. Jusqu’en 2012, la CEB a fourni à la SBEE sur le Nord environ 230 mégawatts. L’interconnexion a également permis de gagner non seulement une fiabilité du réseau et de son renforcement au nord, mais aussi le coût de production d’électricité a été considérablement réduit. Il y a par ailleurs le renforcement des capacités au niveau des ressources humaines de la CEB, grâce à un important appui financier du projet pour la formation des agents. Performance de l’équipe de gestion du volet SBEE et des effets induits Le projet PFSE s’est aussi occupé dans le cadre de ses interventions du réseau de distribution d’électricité. Ses actions ont permis d’abord de rendre relativement fiable le réseau et aussi la qualité des services à la population. En ce qui concerne les activités prévues au niveau des travaux sur le réseau de distribution de la SBEE, elles ont été réalisées, à la satisfaction de la société. Une seule activité, celle relative à l’audit des ressources humaines n’a pu être menée à bout, mais sera poursuivie dans le cadre du projet DAEM. En termes d’effet, le projet PFSE pour la SBEE a été d’un très grand apport car avant le projet toutes les sous stations étaient sollicitées à leurs puissances maximales, les transformateurs étaient surchargés, ce qui entraînait des cas fréquents de délestage, non pas parce que la SBEE manquait de disponibilité d’énergie mais parce qu’il manquait des équipements appropriés pour écouler l’énergie vers les populations. A la fin des travaux, le premier gros effet obtenu fut l’arrêt de la location des groupes AGREKKO et MRI par la rupture du contrat qui liait la SBEE à ces deux structures. Cela a permis d’annuler non seulement les frais de location, mais aussi les coûts d’investissement pour l’approvisionnement en carburant pour les groupes. Cela a également 51 permis d’amoindrir les cas de coupure et de supprimer la baisse de tension à Akpakpa ver s les abonnés. Un autre effet positif c’est l’installation d’une sous-station (poste de transformation) dans la zone franche industrielle car avant le projet ; il n’y avait pas d’électricité dans la zone franche industrielle. Ce projet a permis une meilleure souplesse d’exploitation et une meilleure évacuation de l’énergie. A côté de ses bons résultats, l’exécution du projet au niveau de la SBEE a toutefois enregistré une contre-performance majeure. Il s’agit de la non réalisation dans le délai programmé de l’étude relative à la réhabilitation et au renforcement du réseau de distribution d’électricité ; une situation découlant du grand retard connu au niveau du processus de sélection du consultant. Performance du CENATEL et des effets induits Le CENATEL n’a pas été une Agence d’exécution dans le projet, mais il est désigné comme la structure qui devait suivre la conception et la mise en place du Système d’Information Ecologique et Forestier (SIEF). Cet outil qui était l’élément de base qui conditionne la réalisation des activités touchant à la gestion durable des ressources forestières par les communes membres de la CoForMO a pu être mise en place en 2009 malgré les difficultés technique (conditions climatiques pour la prise des photos aériennes) et administrative (procédures administratives). Cela a permis de développer les autres activités prévues (élaboration des plans d’aménagement pour la gestion communautaire des ressources forestières etc.). Performance de la DGFRN et des effets induits La DGFRN a accompagné au plan technique tout le processus de création de la CoForMO pour ce qui concerne l’élaboration de l’ensemble des documents techniques devant favoriser son installation et son bon fonctionnement. Par ailleurs, la DGFRN a apporté son appui technique à l’AFIC notamment en ce qui concerne le suivi des études socio-économiques et l’élaboration des Plans d’Aménagement Participatifs Forestiers. Performance de l’AFIC L’AFIC bien que installée seulement en 2011, a largement contribué à la mise en œuvre des actions de terrain notamment : (i) l’appui au développement des activités génératrices de revenus et (ii) le suivi et l’appropriation du processus d’élaboration des plans d’aménagement. A ce jour, cinq (5) plans d’aménagement sur 300 000 ha ont été élaborés bien que tous les accompagnements prévus ne soient pas réalisés. Par ailleurs, on peut noter l’appui du projet aux communautés rurales pour le développement des activités de l’apiculture et de plantations d’anacarde qui accompagnent l’apiculture. Performance des prestataires du projet Plusieurs prestataires ont été impliqués dans la mise en œuvre des activités du PFSE. Quelques- uns parmi eux ont été rencontrés pour apprécier les actions menées dans le cadre de leur contrat. Il ressort des échanges que les différents marchés gagnés ont été tous exécutés avec succès. Cependant, il est apparu qu’entre la date de soumission et le démarrage des travaux sur le terrain on observe des périodes mortes qui ont duré jusqu’à deux années dans certains cas. Cette 52 situation n’est pas toujours de nature à garantir des résultats optimaux surtout qu’aucun avenant n’est intervenu et le coût des équipements ne sont pas toujours stables. Niveau d’implication et de satisfaction des bénéficiaires Deux catégories de bénéficiaires sont identifiées dans le projet PFSE : il s’agit des bénéficiaires acteurs (CEB, SBEE, DGE, DGRNP, CENATEL) et les bénéficiaires non acteurs. En ce qui concerne la première catégorie d’acteurs rencontrés, ils étaient tous impliqués dans l’exécution du projet et maîtrisent parfaitement leur domaine d’intervention. Au regard des actions menées et des résultats obtenus, la plupart des acteurs ont exprimé leur satisfaction tout en espérant une amélioration de certaines actions avec la réalisation du DAEM. La deuxième catégorie des bénéficiaires n’est pas directement impliquée dans la mise en œuvre, mais ont apprécié favorablement les actions prévues et menées à leur profit. Compte tenu des acquis du projet, ils apprécient unanimement l’initiative du Gouvernement à travers le PFSE et ont expri mé leur sentiment de satisfaction. Perspectives futures pour la pérennisation des acquis Elles se présentent comme suit :  Sous-composante Développement des capacités institutionnelles du sous-secteur de la biomasse. Il s’agit ici de Poursuite des actions de renforcement de capacités institutionnelles du sous-secteur de la biomasse qui passe par : o Le fonctionnement de l’Agence Forestière Intercommunale (AFIC) ; o Le fonctionnement de la CNCD ; o L’actualisation des données et le suivi du Système d’Information et d’Evaluation Permanente des combustibles domestiques (SIEP) ; o La poursuite du processus de mutation de la CoForMO en un Etablissement Public de Coopération Intercommunale (EPCI).  Sous-Composante Appui à la gestion communautaire du domaine protégé du Moyen Ouémé o Existence et l’exploitation judicieuse des résultats de l’étude d’impact environnemental et social ; o Existence de tous les organes prévus dans la gestion des domaines protégés par la communauté ; o Mettre en place un système qui favorise le fonctionnement de ces organes et de leur pérennisation ; o Définir le mécanisme par lequel le fonctionnement et l’investissement de ces organes seront une réalité ; o Mettre en œuvre le mécanisme qui permet la recherche et la mobilisation des ressources financières humaines et matérielles pour la capitalisation des acquis du projet et la pérennisation des organes de gestion et d’exécution ;  Sous-Composante Efficacité de la biomasse et substitution énergétique 53 o Régularisation du secteur par une loi sur la base des résultats de l’étude de faisabilité sur la production, la commercialisation et l’utilisation des biocarburants, ainsi que l’élaboration du plan de développement des filières de biocarburants ; o Structuration des circuits de production, de commercialisation de foyers améliorés et la labellisation/normalisation des foyers améliorés commercialisés au Bénin.  Sous-composante Appui au développement des communautés rurales o Poursuite et extension des actions de promotion des activités génératrices de revenus alternatives à l’exploitation des ressources forestières ; o Renforcement des capacités des acteurs mobilisés pour la protection des ressources forestières ;  Actions de pérennisation des acquis SBEE. Elle devra : o investir dans la reconfiguration de son réseau moyenne tension pour respecter les zones d’influence des postes ainsi renforcés ; o instaurer au niveau de chaque poste un manuel de suivi des interventions ; o investir dans la réhabilitation de son réseau de distribution assez vieillissant pour évacuer l’énergie vers le consommateur final ; o mettre un accent sur la maintenance et la formation des agents à l’exploitation des postes.  Actions de pérennisation des acquis CEB. Elle devra : o poursuivre le développement du réseau de transport d’énergie électrique pour la construction des lignes : (i) d’Onigbolo-Parakou en 161 kV, (ii) de Sakété-Porto-Novo en 161 kV, (iii) de Natitingou-Tanguiéta-Porga en 161 kV, (iv) de Kandi-Benbèrèkè- Malanville en 161 kV et de (v) Natitingou-Péhunco-Kérou-Banikoara-Kandi en 161 kV. o mettre en place des équipements de protection et de mesure dans les sous stations pour permettre le fonctionnement en bouclage du réseau sud de la CEB. o Actions de pérennisation des acquis de la Cellule d’efficacité énergétique. La Cellule d’efficacité énergétique devra : promouvoir l’efficacité énergétique dans les autres secteurs d’activité (ménages et industries) ; o promouvoir l’audit énergétique obligatoire dans les édifices gros consommateurs d’énergie électrique ; o poursuivre l’assainissement du parc de compteurs d’électricité de l’administration publique et le redressement de la facturation par la pose des bactéries de condensateurs au niveau des abonnés ayant un mauvais facteur de puissance ; o adopter et vulgariser des normes relatives au code d’efficacité énergétique dans les bâtiments. Conclusion L’évaluation du PFSE a permis d’aborder et d’examiner un certain nombre d’axes importants entre autres : la durée réelle du projet par rapport à la durée prévue ; l’implication de beaucoup 54 d’acteurs dans la gestion du projet ; l’atteinte des objectifs fixés ; le ratio résultats obtenus et activités prévues ; la satisfaction des bénéficiaires et la capitalisation des acquis du projet compte tenu des dispositifs mis en place ou en cours. L’essentiel de ce qu’il faut retenir après la visite des chantiers et les échanges avec les acteurs clés (gestionnaires et bénéficiaires) du projet, se résume comme suit : (i) le Projet de Fourniture de Services d’Energie (PFSE) prévu pour durer cinq ans a connu une prorogation de ses activités pour trois années supplémentaires. Il s’agit d’une prorogation du délai d’exécution avec ajout de nouvelles activités et un fonds additionnel. Finalement cette prorogation n’a pas n’a pas permis d’aller jusqu’au bout du planning des activités. Les activités qui n’ont pas pu être réalisées ont été reporté sur le projet DAEM ; (ii) le niveau d’implication de la plupart des acteurs a permis une gestion appréciable du projet avec des produits ayant induit des effets positifs auprès des bénéficiaires ; (iii) au terme de l’exécution du projet l’objectif principal qui est l’accès à l’énergie à moindre coût et de qualité n’est pas perceptible par les bénéficiaires non acteurs alors qu’il parait être atteint par les acteurs bénéficiaires compte tenu des effets induits dans les réseaux de transport et de distribution ; (iv) il ressort de la revue documentaire que le projet a atteint un niveau d’exécution physique satisfaisant (90%) ; (v) dans l’ensemble, les bénéficiaires ont noté une amélioration appréciable comparativement à leur situation antérieure tout en notant que la satisfaction ne pourra être total qu’avec l’avènement d’une solution liée à la maîtrise et à la disponibilité de la ressource énergétique ; (vi) au regard de la motivation des acteurs et des intérêts suscités par les produits obtenus au cours de l’exécution de ce projet, tous les acteurs ont exprimé l’engagement non seulement de mettre en place des mécanismes et systèmes permettant de sécuriser les acquis, mais aussi de veiller à la réalisation de nouvelles activités afin de renforcer celles déjà réalisées. 55 Annexes Tableau des Indicateurs de performance des résultats du projet Le point de ces indicateurs se présente comme suit : Indicateurs Objectifs et valeurs Libellé des indicateurs Accélérer de manière commercialement soutenable, l'utilisation de l'électricité pour la Objectif de croissance économique et les services Développement du sociaux afin d'améliorer la qualité de vie Projet dans les zones non desservies ou mal desservies (périurbaines et rurales) Disponibilité limitée de l'énergie dans le Nord-Bénin à cause de la production de l'électricité à partir des générateurs (groupes Indicateur 1 Valeur de référence thermiques) fonctionnant au diesel et qui subissent souvent des pannes fréquentes. La fiabilité du service est faible à cause de l'état des générateurs. Les travaux d'interconnexion Nord-Togo Valeur réalisée Nord-Bénin sont achevés et les ouvrages sont mis en service. Fourniture d'énergie électrique fiable pour le Valeur cible Nord-Bénin provenant du réseau interconnecté passant par le Nord du Togo. Objectif de Renforcer la capacité du Bénin à étendre ses Développement du services énergétiques Projet La SBEE, une société entièrement publique avec une faible performance technique et financière. Pas d'études pour l'extension du Valeur de référence réseau de distribution de l'électricité. Et l’absence de politique ou de stratégie pour l'extension des zones de desserte. Un plan de redressement technique financier Indicateur 2 commercial et organisationnel de la SBEE est mis en œuvre depuis quelques temps sur décision du Gouvernement. Dans le domaine de l'électrification rurale, Valeur réalisée les modalités d’octroi de concessions pour l’électrification rurale au Bénin sont définies, et l'ABERME a bénéficié de l'assistance d'un consultant pour l'élaboration du manuel du Fonds d'Electrification Rurale (FER). Un partenaire privé pour la distribution de Valeur cible l'électricité est choisi dans le cadre de la mise 57 Indicateurs Objectifs et valeurs Libellé des indicateurs en concession de la SBEE. La stratégie pour l'électrification décentraliséeest développée et soutenue. Objectif de Développement du Promou voir la cooperation régionale Projet Pas d'énergie fournie au Nord-Bénin à partir Valeur de référence du réseau interconnecté de la CEB passant par le Nord du Togo Indicateur 3 Les travaux d'interconnexion Nord-Togo Valeur réalisée Nord-Bénin sont achevés et les ouvrages sont mis en service. L'énergie électrique importée est fournie au Valeur cible Nord-Bénin à travers le réseau électrique togolais Améliorer la gouvernance du sous-secteur de Objectif de la biomasse-énergie et renforcer les capacités Développement du des institutions intervenant dans la gestion du Projet sous-secteur Inexistence de cadre institutionnel adéquat à Valeur de référence la bonne gestion du sous-secteur de la biomasse-énergie La CNCD est créée et a démarré ses activités. La Communauté Forestière du Moyen-Ouémé (CoForMO) est créée. Son organe technique l'AFIC est mis en place le 27 janvier 2011 (mise en place du personnel). Des infrastructures de surveillance et de Indicateur 4 gestion des ressources forestières sont mises Valeur réalisée en place (postes de contrôle forestier). Le Contrat Plan Etat-CoForMO est adopté par le Conseil National de l’Aménagement du Territoire (CNAT). Les dispositions finales sont en cours pour la transformation de la CoForMO en Etablissement Public de Coopération Intercommunale (EPCI). Création et fonctionnement effectif de la CNCD ; Création et fonctionnement effectif de l'AFIC et Transfert de compétences aux Valeur cible communes de la CoForMO pour la gestion communautaire des ressources forestières de leur espace. 58 Sigles et abréviations ABERME : Agence Béninoise d’Electrification Rurale et de Maîtrise d’Energie AFIC : Agence Forestière Intercommunale BN : Budget National CEB : Communauté Electrique du Bénin CENATEL : Centre National de Télédétection et de surveillance du couvert végétal CF : Contrôle Financier CNAT : Conseil National de l’Aménagement du Territoire CNCD : Commission Nationale des Combustibles Domestiques CoForMO : Communauté Forestière du Moyen-Ouémé DAEM : Développement de l’Accès à l’Energie Moderne DAT : Délégation à l’Aménagement du Territoire DGB : Direction Générale du Budget DGE : Direction Générale de l’Energie DGFRN : Direction Générale des Forêts et des Ressources Naturelles DGTCP : Direction Générale du Trésor et de la Comptabilité Publique DNCMP : Direction Nationale du Contrôle des Marchés Publics EPCI : Etablissement Public de Coopération Inter-commune FER : Fonds d'Electrification Rurale IGM : Inspection Générale du Ministère MERPMEDER : Ministère de l’Energie, des Recherches Pétrolières et Minières, de l’Eau et du Développement des Energies Renouvelables OMD : Objectifs du Millénaire pour le Développement PAPF : Plans d’Aménagements Participatifs Forestiers PFSE : Projet de Fourniture de Services d’Energie PIP : Programme d’Investissement Public PME : Petites et Moyennes Entreprises PTA : Plan de Travail Annuel SBEE : Société Béninoise d’Energie Electrique SIEF : Système d’Information Ecologique et Forestier SIEP : Système d’Information pour l’Evaluation Permanente des combustibles domestiques SIG : Système d’Information Géographique SIGFiP : Système Intégré de Gestion des Finances Publiques UCP : Unité de Coordination du Projet 59 Annex 6. List of Supporting Documents  Project Appraisal Document of the original project  Project Paper of the Additional Financing  Mid-term Review  Project Legal Agreements  WB Implementation Status Reports  Aide Memoires  WB Memos  Progress Reports submitted by Borrower  Annual reports of SBEE submitted by Borrower  Annual reports of CEB submitted by Borrower  Final Completion Report submitted by the Borrower 60 IBRD 29502 1° 2° 3° 4° M A L I This map was produced by the NIGER Map Design Unit of The World Bank. NIGER N ig The boundaries, colors, denominations er Niamey and any other information shown on BURKINA FASO this map do not imply, on the part of The World Bank Group, any judgment Ouagadougou BURKINA on the legal status of any territory, or 12 ° any endorsement or acceptance of BENIN FA S O such boundaries. NIGERIA TOGO D'IVOIRE Abuja CÔTE GHANA Porto Novo Lomé Accra Pe nd ja ri u ro Gulf of Guinea ék N M ig er Cinkassé 11 ° Bawku 11 ° Dapaong N I G E R I A ti O Mango Natitingou Bembéréké Ko um on go u Kandé 10 ° 10 ° GHANA Niamtougou Pagouda K a ra Pya Djougou Kara O ué Kabou mé Parakou Bassar Bafilo M o Sokodé Tchamba 9° 9° no BENIN Mo O kp a ra ELECTRIC POWER SYSTEMS Sotouboua EXISTING FUTURE TRANSMISSION LINES: Blitta 161 kV (PLANNED) Savé 161 kV (PROJECTED) Elavagnon 63 & 66 kV ou Savalou Og 8° 33 kV 8° An Dassazouné 20 kV ié HYDRO POWER PLANTS Atakpamé é THERMAL POWER PLANTS ém Amlamé Ou Kétou Zou Nangbeto NATIONAL CAPITALS INTERNATIONAL BOUNDARIES Vo l t a Abomay Bohicon Onigbolo Lake Pobé 7° Ko 7° 0 20 40 60 80 100 Kpalimé Notse uf f o Adjarala KILOMETERS Sakété Avetonou Lokossa Avakpa Tsévié Tabligbo PORTO NOVO Mo Kévé no Momehagou Akosombo Cotonou Anfoin Vo Aného Bight of Benin lt a LOMÉ 1° 2° 3° 4° MAY 1998