The World Bank Report No: ISR14372 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: 9 Status: ARCHIVED Archive Date: 30-May-2014 (P112516) Country: Botswana Approval FY: 2010 Product Line: IBRD/IDA Region: AFRICA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Botswana Power Corporation Key Dates Board Approval Date 29-Oct-2009 Original Closing Date 30-Jun-2014 Planned Mid Term Review Date 15-Nov-2011 Last Archived ISR Date 02-Nov-2013 Effectiveness Date 09-Aug-2010 Revised Closing Date 30-Jun-2014 Actual Mid Term Review Date 11-May-2012 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 Unsatisfactory Unsatisfactory Overall Implementation Progress (IP) Unsatisfactory Unsatisfactory Overall Risk Rating Implementation Status Overview Botswana Power Corporation (BPC) has taken over three out of the four units at the Morupule B power plant (units #1, 3, and 4) and expects to take over the forth unit (unit #2) -- and with it the entire power plant -- by end of June 2014. There are a number of important technical problems that are adversely affecting the performance of the units and remain to be fixed after the takeover, during the defect liability period, whose root causes are being investigated. Since the units have been connected to the network in 2012 and 2013 and until March 31, 2014, the plant has generated about 3,130 GWh of electricity (gross generation). Page 1 of 4 The World Bank Report No: ISR14372 The electricity lines and substations connecting the plant to the transmission network, as well as the water supply infrastructure, are operational. Procurement and installation of an Automatic Generation Control System (AGC) has been delayed as the plan has shifted to expanding this component into installing a full-fledged Supervisory Control and Data Acquisition (SCADA) system, which is being designed. Procurement and installation of air quality monitoring system has also been delayed. Public Disclosure Copy A number of the activities under the Alternative Energy Development and the Institutional Capacity Building components of the project have been completed or are under implementation, with some exceptions, including the study on low carbon development strategies for Botswana, which has not commenced. A proposal to establish a Botswana Energy and Water Regulatory Agency (BEWRA) is still under consideration by the Cabinet for submission to parliament for approval. BPC contracted STEAG in December 2013, to operate and maintain Morupule B power plant, starting January 1, 2014 under a short-term contract. IBRD loan, which financed electricity transmission and water supply infrastructure for Morupule B power plant and a number of studies and activities under Alternative Energy Development and Institutional Capacity Building components, is scheduled to close on June 30, 2014. 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 Low carbon energy alternative Yes/No Value No Yes Yes Date 08-Dec-2009 16-Apr-2014 30-Jun-2014 Public Disclosure Copy Comments To be developed A CSP project identified At least one option Regulatory Agency Yes/No Value No No Yes Date 08-Dec-2009 16-Apr-2014 30-Jun-2014 Comments No regulatory agency A proposal under Functioning regulatory agency consideration by the Cabinet for submittal to Parliament Generation Capacity of Conventional Megawatt Value 0.00 450.00 600.00 Generation constructed under the project Date 08-Dec-2009 16-Apr-2014 30-Jun-2014 Page 2 of 4 The World Bank Report No: ISR14372 Comments CSI Retrofit per SEGES Operating Capacity (gross) Generation Capacity added August 2013; this is also a taken over by BPC under the project (gross) key indicator under the project's design Public Disclosure Copy 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 16-Apr-2014 30-Jun-2014 Comments Units 1, 3, and 4 tested and All units completed commissioned Alternative energy project option Number Value 0.00 1.00 1.00 Date 08-Dec-2009 16-Apr-2014 30-Jun-2014 Comments A CSP project identified At least one option selected GOB Decision on a regulatory agency Yes/No Value No No Yes Date 08-Dec-2009 16-Apr-2014 30-Jun-2014 Comments Documents prepared for seeking Cabinet's submission to parliamentary for approval of the Bill. Data on Financial Performance (as of 25-Apr-2014) 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 P112516 TF-13099 Effective 17-Jan-2013 17-Jan-2013 17-Jan-2013 31-Aug-2014 31-Aug-2014 Disbursements (in Millions) Public Disclosure Copy 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 P112516 TF-13099 Effective USD 1.20 1.20 0.00 0.25 0.95 21.00 Disbursement Graph Page 3 of 4 The World Bank Report No: ISR14372 Public Disclosure Copy Key Decisions Regarding Implementation BPC has contracted a firm to carry out root cause analysis of the major technical problems. BPC is to negotiate a longer-term Operations and Maintenance contract. Restructuring History Level 2 CD Decision on 08-Mar-2013 Related Projects P116784-Morupule B Generation and Transmission Project Public Disclosure Copy Page 4 of 4