The World Bank Implementation Status & Results Report Tunisia Energy Sector Improvement Project (P168273) Tunisia Energy Sector Improvement Project (P168273) MIDDLE EAST AND NORTH AFRICA | Tunisia | Energy & Extractives Global Practice | IBRD/IDA | Investment Project Financing | FY 2019 | Seq No: 3 | ARCHIVED on 27-Oct-2020 | ISR43334 | Implementing Agencies: STEG, STEG Key Dates Key Project Dates Bank Approval Date: 24-Jun-2019 Effectiveness Date: 12-Jun-2020 Planned Mid Term Review Date: 30-Jun-2022 Actual Mid-Term Review Date: Original Closing Date: 30-Jun-2024 Revised Closing Date: 30-Jun-2024 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective (PDO) is to: (i) strengthen Tunisia’s electricity transmission system; and (ii) improve STEG’s commercial performance. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Strengthening the electricity transmission network:(Cost $115.50 M) Commercial performance improvement:(Cost $35.50 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Moderate Moderate Implementation Status and Key Decisions The Project is making progress on both PDO objectives. On Component 1, despite some initial delays due to Covid-19 pandemic, the preparation is in advanced stage. On Component 2, of the five Performance-Based Conditions (PBCs), two have achieved their 2020 targets, one is expected to be achieved by the end of 2020, and one is expected to be partially achieved by Q1, 2021. They include:  PBC 1 HV/MV customers provided with a smart meter: STEG has purchased 3,000 meters for MV customers who need immediate new meters or meter replacement. These 3,000 meters represent 15 percent of the 2020 PBC target and are expected to be installed by Q1, 2021;  PBC 2 Incorporation of large LV customers into Revenue Protection Program: 100 percent of LV customers consuming more than 1750 kWh/month will be integrated into the Revenue Protection Program, which is the target for 2021, 2022, and 2023; 10/27/2020 Page 1 of 7 The World Bank Implementation Status & Results Report Tunisia Energy Sector Improvement Project (P168273)  PBC 3 Improving bill collection rate among private clients: The bill collection rate has deteriorated due to Covid-19, which led to customers' lower ability to pay. The rate of 2020 therefore will be lower than the 99 percent achieved in 2019, but is likely to reach the 2020 target of 94 percent;  PBC 4 Reading LV meters through hand-held devices is behind schedule and therefore will not achieve its 2020 target. Nevertheless, the hand-held devices are expected to be purchased within the first semester of 2021, and the 2019-2021 targets will be achieved by then.  PBC 5 Communication/Outreach campaigns: Multiple communication campaigns, consisting of TV/radio shows, journal articles, and pamphlets, were completed during 2020 to explain customers’ rights and responsibilities related to bill payment, exceeding the target for 2020 of 3 communication campaigns. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Moderate Moderate Macroeconomic Substantial Moderate Moderate Sector Strategies and Policies Substantial Moderate Moderate Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and Moderate Moderate Moderate Sustainability Fiduciary Moderate Moderate Moderate Environment and Social Substantial Moderate Moderate Stakeholders Moderate Moderate Moderate Other -- -- -- Overall Substantial Moderate Moderate Results PDO Indicators by Objectives / Outcomes Strengthened Tunisia’s electricity transmission system IN00888823 ►Increased transmission capacity along the South-North corridor (Megawatt, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 721.00 721.00 721.00 3,090.00 Date 31-Dec-2018 31-Mar-2020 30-Oct-2020 30-Jun-2024 10/27/2020 Page 2 of 7 The World Bank Implementation Status & Results Report Tunisia Energy Sector Improvement Project (P168273) Improved commercial performance of STEG IN00888822 ►Increase in cash recovery index (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 83.00 86.00 86.00 92.00 Date 31-Dec-2018 31-Mar-2020 30-Oct-2020 30-Jun-2024 The cash recovery index is defined as the billing efficiency (ratio of energy billed over energy consumed) Comments: multiplied by the collection efficiency (ratio of consumer bills paid over total consumer bills). Intermediate Results Indicators by Components 1. Strengthening the electricity transmission network IN00888825 ►Transmission lines constructed under the projects (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 284.00 Date 31-Dec-2018 31-Mar-2020 30-Oct-2020 30-Jun-2024 Comments: Transmission lines constructed include 400 kV (192 km) and 225 kV (192 km) IN00888877 ►Substations constructed and/or reinforced (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 3.00 Date 31-Dec-2018 31-Mar-2020 30-Oct-2020 28-Jun-2024 2. Improving STEG's commercial performance IN00888824 ►High and medium voltage customers provided with a smart meter (Percentage, Custom, PBC) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 100.00 Date 31-Dec-2018 31-Mar-2020 30-Oct-2020 31-Dec-2023 IN00888876 ►Large low voltage customers incorporated into the revenue protection program (Percentage, Custom, PBC) Baseline Actual (Previous) Actual (Current) End Target 10/27/2020 Page 3 of 7 The World Bank Implementation Status & Results Report Tunisia Energy Sector Improvement Project (P168273) Value 0.00 49.00 100.00 100.00 Date 31-Dec-2018 31-Mar-2020 30-Oct-2020 31-Dec-2023 Percent of large low voltage customers (consuming more than 1750 kWh per month) classified as "large customers" and are included in the revenue protection program, which means they are treated similar to Comments: medium and high voltage customers, get their meters read and receive their bills monthly, and are managed by a unit devoted to large customers. IN00888878 ►Bill collection of private customers (Percentage, Custom, PBC) Baseline Actual (Previous) Actual (Current) End Target Value 92.00 99.00 94.00 99.00 Date 31-Dec-2018 31-Dec-2019 31-Dec-2020 31-Dec-2023 The bill collection rate has deteriorated from 99% in 2019 and is expected to reach 94% in 2020 due to Covid-19, which led to lower ability to pay among customers. This was already anticipated during the Comments: project restructuring in June 2020, which adjusted the PBC target for 2020 accordingly. This PBC is therefore expected to achieve the 2020 target. IN00888879 ►Low voltage meters read remotely or with handheld devices (Percentage, Custom, PBC) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 100.00 Date 31-Dec-2018 31-Mar-2020 30-Oct-2020 31-Dec-2023 The percent of low voltage meters get read remotely (smart meters) or with handheld meter reading Comments: devices IN00888880 ►Communication/outreach campaigns on customer rights and responsibilities (Number, Custom, PBC) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3.00 4.00 7.00 Date 31-Dec-2018 31-Dec-2019 30-Oct-2020 31-Dec-2023 In accompanying its effort to streamline the billing, collection, and customer processes, STEG will carry out multiple outreach initiatives, targeting regions of high non-technical and collection losses. The Comments: campaign will raise awareness about STEG’s efforts to improve its customer service while motivating the customers to abide by the collective responsibility of billing by meter and on time bill payment. IN00888881 ►Ratio of female to male customers using electronic payment (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.65 0.65 0.65 0.85 Date 31-Dec-2018 31-Mar-2020 30-Oct-2020 31-Dec-2023 The number of female customers over the number of male customers using electronic payment (STEG Comments: website, mobile payment, etc.) IN00888882 10/27/2020 Page 4 of 7 The World Bank Implementation Status & Results Report Tunisia Energy Sector Improvement Project (P168273) ►Share of customers aware of STEG's performance improvement effort (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 14.10 14.10 14.10 30.00 Date 31-Dec-2018 31-Mar-2020 30-Oct-2020 31-Dec-2023 Comments: Percentage of customers knowing about STEG's effort to improve its performance IN00888883 Share of female customers aware of STEG's performance improvement effort (Percentage, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 12.50 12.50 12.50 30.00 Date 31-Dec-2018 31-Mar-2020 30-Oct-2020 31-Dec-2023 IN00888884 ►The results of the consumer feedback sessions and the customer satisfaction survey, and STEG responses, are published (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 31-Dec-2018 31-Mar-2020 30-Oct-2020 31-Dec-2023 A citizen engagement mechanism will be implemented by soliciting and incorporating customer feedback into STEG's implementation of project activities through a series of public consultation across different Comments: customer types in representative regions and one customer satisfaction survey within the first half of the project (by 2021). The results of these sessions and the survey will be published on STEG's website, including STEG's responses to the feedback, on an annual basis. Performance-Based Conditions IN00888885 ►PBC 1 High and medium voltage customers provided with a smart meter (Percentage, Output, 2.00, 0.00%) Baseline Actual (Previous) Actual (Current) 2023 Value 0.00 0.00 0.00 -- Date -- 31-Mar-2020 30-Oct-2020 -- IN00888886 ►PBC 2 Large low voltage customers incorporated into the revenue protection program (Percentage, Output, 12.00, 0.00%) Baseline Actual (Previous) Actual (Current) 2023 10/27/2020 Page 5 of 7 The World Bank Implementation Status & Results Report Tunisia Energy Sector Improvement Project (P168273) Value 0.00 0.00 100.00 -- Date -- 31-Mar-2020 30-Oct-2020 -- IN00888887 ►PBC 3 Bill collection of private customers (Percentage, Intermediate Outcome, 14.00, 0.00%) Baseline Actual (Previous) Actual (Current) 2023 Value 92.00 99.00 94.00 -- Date -- 31-Dec-2019 31-Dec-2020 -- IN00888888 ►PBC 4 Low voltage meters read remotely or with handheld devices (Percentage, Output, 2.00, 0.00%) Baseline Actual (Previous) Actual (Current) 2023 Value 0.00 0.00 0.00 -- Date -- 31-Mar-2020 30-Oct-2020 -- IN00888889 ►PBC 5 Communication/outreach campaigns on customer rights and responsibilities (Number, Output, 5.50, 0.00%) Baseline Actual (Previous) Actual (Current) 2023 Value 0.00 3.00 4.00 -- Date -- 31-Dec-2019 30-Oct-2020 -- Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P168273 IBRD-89890 Effective USD 151.00 151.00 0.00 25.38 125.62 17% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date 10/27/2020 Page 6 of 7 The World Bank Implementation Status & Results Report Tunisia Energy Sector Improvement Project (P168273) P168273 IBRD-89890 Effective 24-Jun-2019 30-Jan-2020 12-Jun-2020 30-Jun-2024 30-Jun-2024 Cumulative Disbursements PBC Disbursement Achievement Disbursed amount in Disbursement % PBC ID PBC Type Description Coc PBC Amount Status Coc for PBC Restructuring History Level 2 Approved on 10-Jun-2020 Related Project(s) There are no related projects. 10/27/2020 Page 7 of 7