Public Disclosure Copy The World Bank Implementation Status & Results Report RY-Power Sector (P086865) RY-Power Sector (P086865) MIDDLE EAST AND NORTH AFRICA | Yemen, Republic of | Energy and Mining Global Practice | IBRD/IDA | Specific Investment Loan | FY 2006 | Seq No: 17 | ARCHIVED on 19-Jun-2015 | ISR19536 | Implementing Agencies: Ministry of Electricity and Energy Key Dates Key Project Dates Board Approval date:23-May-2006 Effectiveness Date:12-Feb-2007 Planned Mid Term Review Date:19-Sep-2009 Actual Mid-Term Review Date:08-May-2010 Original Closing Date:31-Dec-2011 Revised Closing Date:30-Jun-2015 Project Development Objectives RY-Power Sector (P086865) Project Development Objective (from Project Appraisal Document) The project development objectives are to: (a) relieve critical supply constraints; (b) improve the overall technical efficiency and quality of electricity supply; and (c) support the GOY's initiatives in reforming the sector, strengthen corporate governance, andimprove organizational effectiveness of PEC through capacity building and training. Has the Project Development Objective been changed since Board Approval of the Project Objective? Yes Board Approved Revised Project Development Objective (If project is formally restructured) Increase electricity supply and delivery in an efficient manner. Components Name Power System Strengthening and Efficiency Improvement:(Cost $55.20 M) Capacity Building and Sector Reform:(Cost $3.50 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Moderately Unsatisfactory  Unsatisfactory Overall Implementation Progress (IP)  Moderately Unsatisfactory  Unsatisfactory Overall Risk Rating  --  High 6/19/2015 Public Disclosure Copy Page 1 of 7 Public Disclosure Copy The World Bank Implementation Status & Results Report RY-Power Sector (P086865) Implementation Status and Key Decisions Implementation of the IDA and Trust Fund financed projects have been greatly affected by the situation prevailing in Yemen since January 19, 2015. As a precautionary measure, the Bank suspended all missions to Yemen as of January 23, 2015, closed the Sana’a office as of February 18th. The power struggle between Houthi forces and those loyal to President Hadi further escalated in March 2015 amid deepening political tensions and an uptick in sectarian violence. Following the Houthi advance towards crucial installations in Taiz and Aden, a coalition of ten countries, led by Saudi Arabia, launched a military campaign on March, 26, 2015, with airstrikes aimed at stopping the Houthis from taking more territory. In response to further deterioration of the security environment, on March 26, 2015, management initiated the next level of security plans and arrangements for remaining Sana’a-based staff, including staff relocation within Yemen or evacuation to Cairo. The current political/security situation in Yemen has greatly affected the implementation of the projects, and our portfolio more generally. On February 10, the Bank initiated an assessment under OP7.30 on Bank’s “Dealings with de facto Governments”, which concluded that the security situation had deteriorated to the degree that the Bank was unable to exercise effective management over its projects. Specifically, the Bank’s ability to communicate and coordinate with government counterparts has declined significantly; government counterparts cannot perform their obligations as agreed under the relevant legal agreements; project implementation areas are not accessible; the security environment is inadequate for Bank presence and supervision, making fiduciary monitoring and oversight extremely difficult. In light of this assessment, and pursuant to the legal agreements of IDA credits and grants, and trust fund grants, read together with the relevant provisions of the applicable General Conditions, and Standard Conditions, the Bank has suspended disbursements under the Yemen portfolio, including all IDA Credits and Grants and Grants administered under the Trust Funds as of March 11, 2015. The situation also impacted adversely implementation progress of this project. Specifically, all contractors are internaitonal firms and they have evacuated their staff since the early this year due to the country situation, despite most of them are nto subject to Bank's suspension as their contracts are covered by Special Commitments issued by the Bank prior to the suspension. No implementation has been made since the last ISR. 6/19/2015 Public Disclosure Copy Page 2 of 7 Public Disclosure Copy The World Bank Implementation Status & Results Report RY-Power Sector (P086865) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  --  High Macroeconomic  --  --  High Sector Strategies and Policies  --  --  High Technical Design of Project or Program  --  --  Moderate Institutional Capacity for Implementation and Sustainability  --  --  High Fiduciary  --  --  High Environment and Social  --  --  High Stakeholders  --  --  High Other  --  --  -- Overall  --  --  High 6/19/2015 Public Disclosure Copy Page 3 of 7 Public Disclosure Copy The World Bank Implementation Status & Results Report RY-Power Sector (P086865) Results Project Development Objective Indicators PHINDPDOTBL  Transmission lines constructed or rehabilitated under the project (Kilometers, Core) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 108.00 Date 01-Jan-2010 30-Nov-2014 31-May-2015 31-Dec-2014 PHINDPDOTBL  Transmission lines constructed under the project (Kilometers, Core Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 108.00 Date 01-Jan-2010 30-Nov-2014 31-May-2015 31-Dec-2014 PHINDPDOTBL  Fuel consumption per electricity unit reduced (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 380.00 380.00 380.00 300.00 Date 01-Jan-2011 30-Nov-2014 31-May-2015 31-Dec-2014 PHINDPDOTBL  Electricity generated annually increased (Gigawatt-hour (GWh), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 1800.00 Date 01-Jan-2011 30-Nov-2014 31-May-2015 31-Dec-2014 PHINDPDOTBL  Total amount of electricity transmitted (Megawatt hour(MWh), Custom) 6/19/2015 Baseline ActualCopy Public Disclosure (Previous) Actual (Current) Page 4 of 7 End Target Public Disclosure Copy The World Bank Implementation Status & Results Report RY-Power Sector (P086865) Value 0.00 0.00 0.00 1500.00 Date 01-Jan-2011 30-Nov-2014 31-May-2015 31-Dec-2015 PHINDPDOTBL  Distribution losses in the project area reduced (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 19.00 19.00 19.00 16.00 Date 01-Jan-2011 30-Nov-2014 31-May-2015 31-Dec-2015 Overall Comments Global Environmental Objective Indicators Overall Comments Intermediate Results Indicators PHINDIRITBL  Generation 270 tons/hour boiler at Hiswa completed and operational (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 270 boiler Date 01-Jan-2011 30-Nov-2014 31-May-2015 31-Dec-2014 PHINDIRITBL  Distribution: Reinforcement of distribution network in 18 governorates completed (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Fully completed Partially completed in Value Most completed Most completed (Delayed due to some governorates political crisis) Date 01-Jan-2011 30-Nov-2014 31-May-2015 31-Dec-2014 6/19/2015 Public Disclosure Copy Page 5 of 7 Public Disclosure Copy The World Bank Implementation Status & Results Report RY-Power Sector (P086865) PHINDIRITBL  Transmission: A total of 108 km 132 kV transmission lines constructed and operational. 2 new 132 kV substations build and 2 existing 132 kV substations rehabilitated (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target All facilities Value 0.00 Construction ongoing Construction ongoing completed and operational Date 01-Jan-2011 30-Nov-2014 31-May-2015 31-Dec-2014 PHINDIRITBL  Loss reduction/Energy audit study complete (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value Completed completed completed Completed Date 01-Jan-2011 30-Nov-2014 31-May-2015 14-Feb-2011 PHINDIRITBL  Financial Management, Audit Control and Inventory Management Study (Text, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target First phse completed First phse completed Value Study and second phase and second phase Active canceled canceled Date 01-Jan-2011 30-Nov-2014 31-May-2015 29-Mar-2014 Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P086865 IDA-41720 Effective USD 50.00 44.57 5.43 20.34 25.17 46% P110603 TF-96567 Closed USD 50.00 0.00 1.58 0.00 0.00 46% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date 6/19/2015 Public Disclosure Copy Page 6 of 7 Public Disclosure Copy The World Bank Implementation Status & Results Report RY-Power Sector (P086865) P086865 IDA-41720 Effective 23-May-2006 11-Jul-2006 12-Feb-2007 31-Dec-2011 30-Jun-2015 P110603 TF-96567 Closed 22-Jun-2010 22-Jun-2010 22-Jun-2010 31-Jul-2014 31-Jul-2014 Cumulative Disbursements Restructuring History Level Approved on 10-Jan-2011 ,Level 2 Approved on 02-Apr-2014 ,Level 2 Approved on 22-Dec-2014 Related Project(s) P110603-RY-LOSS REDUCTION PROJECT (Clean Development Mechanism-CDM) 6/19/2015 Public Disclosure Copy Page 7 of 7