The World Bank Report No: ISR9390 Implementation Status & Results Botswana Botswana - Morupule B Generation and Transmission Project (P112516) Public Disclosure Copy Operation Name: Botswana - Morupule B Generation and Transmission Project Project Stage: Implementation Seq.No: 7 Status: ARCHIVED Archive Date: 25-Mar-2013 (P112516) Country: Botswana Approval FY: 2010 Product Line: IBRD/IDA Region: AFRICA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Botswana Power Corporation, Ministry of Minerals, Energy and Water Resources Key Dates Board Approval Date 29-Oct-2009 Original Closing Date 30-Jun-2014 Planned Mid Term Review Date Last Archived ISR Date 18-Jul-2012 Effectiveness Date 09-Aug-2010 Revised Closing Date 30-Jun-2014 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) The PDOs are to support Botswana in: (i) developing reliable and affordable supply of electricity for energy security; (ii) promoting alternative energy resources for low- carbon growth; and (iii) building its institutional capacity in the energy sector. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Morupule B Power Station, Transmission and Water Supply 1539.60 Alternative Energy Development 6.80 Capacity Building 13.90 Overall Ratings Public Disclosure Copy Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Moderately Unsatisfactory Overall Implementation Progress (IP) Satisfactory Unsatisfactory Overall Risk Rating Implementation Status Overview The central component of the project is construction of the 600-MW Morupule B Power Plant (4x150MW) and the associated electricity transmission and water supply infrastructure. Construction of three (out of four) 150-MW units at the power plant has been completedand the units have gone through various commissioning tests and trial operations in 2012 and 2013, which have resulted in discoveries of some technical problems that are being corrected. Construction of Unit 4 is in progress, but the work on its boiler has been interrupted due to the suspension of work at height after the third fatal accident at the site that happened in September 2012. The associated electricity transmission and water supply infrastructure Page 1 of 4 The World Bank Report No: ISR9390 are in advanced stages of completion: the power plant is supplied with water and the construction of the transmission system has progressed to the stage where the entire output of the plant could be evacuated into the national transmission grid. Implementation of the remaining project components -- Alternative Energy Development; and Institution and Capacity Building -- is progressing satisfactorily. It is expected that the power plant will be completed by end of 2013, about a year behind the original schedule. The risks to the project fully achieving its stated objectives are real, as indicated by a number of accidents at the site; technical setbacks with the completed power generation units; the absence of arrangements Public Disclosure Copy for operation and maintenance; and further delays in the already significantly extended completion schedule. Subsequent to the September 2012 accident and the technical operating problems with Units 1, 2, and 3 in the second half of 2012, the Government of Botswana (GoB) and the Botswana Power Corporation (BPC) developed an Action Plan which is meant to strengthen project implementation in its various aspects: safety, security, and health measures at the site; project management; management of technical risks; operations and maintenance of the plant after construction; and implementation of environmental and social safeguards. Implementation of the Action Plan is under way. A progress has been made in improving safety and security of the site and of the work at height. BPC has engaged NOSA (from South Africa), a health, safety and environmental (HSE) firm, to help manage these aspects of the project. There has been a visible improvement in these areas during the last several months, but more needs to be done. BPC has engaged a scaffolding company to erect a new, safer scaffolding around the boiler for Unit 4 before resumption of work at height can be allowed. A number of environmental infractions need to be corrected. BPC is in the process of hiring additional Technical and Legal Advisers to strengthen project management and control technical risks to the project, which are particularly important. Locations Country First Administrative Division Location Planned Actual Botswana Not Entered Palapye Botswana Not Entered Kweneng District Botswana Not Entered Kgatleng District Botswana Not Entered Central District Botswana Central Morupule ✔ Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Generation Capacity of Conventional Megawatt Value 0.00 450.00 600.00 Generation constructed under the project Public Disclosure Copy Date 01-Jan-2010 28-Feb-2013 30-Jun-2014 Comments Existing capacity Units 1, 2, and 3 completed, New capacity 600 MW although a number of "punch list" items remain to be done. Units 1 and 2 temporary out of operation for correcting some technical problems. No units, however, have been taken over by BPC. Low carbon energy alternative Yes/No Value No No Yes Page 2 of 4 The World Bank Report No: ISR9390 Date 08-Dec-2009 28-Feb-2013 30-Jun-2014 Comments To be developed In progress At least one option Regulatory Agency Yes/No Value No No Yes Public Disclosure Copy Date 08-Dec-2009 28-Feb-2013 30-Jun-2014 Comments No regulatory agency Cabinet and Parliamentary Functioning regulatory agency approval process underway Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Testing of new generation units Number Value 0.00 3.00 4.00 Date 08-Dec-2009 28-Feb-2013 30-Jun-2014 Comments Units 1, 2, and 3 completed, All units completed although a number of "punch list" items remain to be done. Units 1 and 2 temporary out of operation for correcting some technical problems. No units, however, have been taken over by BPC. Alternative energy project option Number Value 0.00 0.00 1.00 Date 08-Dec-2009 28-Feb-2013 30-Jun-2014 Comments Feasibility Study for CSP At least one option selected underway GOB Decision on a regulatory agency Yes/No Value No No Yes Date 08-Dec-2009 28-Feb-2013 30-Jun-2014 Comments Cabinet documents prepared and preparations underway for seeking Cabinet and Parliamentary approval. Public Disclosure Copy Data on Financial Performance (as of 05-Mar-2013) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P112516 IBRD-78010 Effective 29-Oct-2009 20-May-2010 09-Aug-2010 30-Jun-2014 30-Jun-2014 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P112516 IBRD-78010 Effective USD 136.40 136.40 0.00 68.88 67.52 50.00 Page 3 of 4 The World Bank Report No: ISR9390 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation BPC is to strengthen project management team and implement the agreed Action Plan. BPC also needs to finalize arrangements for operating and maintaining Morupule B power plant after its completion, including interim arrangements for operating and maintaining the individual units as they are taken over by BPC during project implementation. Restructuring History Country Director Approval on 08-Mar-2013 Related Projects P116784-Morupule B Generation and Transmission Project Public Disclosure Copy Page 4 of 4