The World Bank AFCC2/RI Second Energy Small &Medium Enterprises(ESME) Support Project (P154495) REPORT NO.: RES28168 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF AFCC2/RI SECOND ENERGY SMALL &MEDIUM ENTERPRISES(ESME) SUPPORT PROJECT APPROVED ON MAY 31, 2016 TO ENERGY4IMPACT ENERGY & EXTRACTIVES AFRICA Regional Vice President: Makhtar Diop Country Director: Ahmadou Moustapha Ndiaye Senior Global Practice Director: Riccardo Puliti Practice Manager/Manager: Wendy E. Hughes Task Team Leader: Richard H. Hosier The World Bank AFCC2/RI Second Energy Small &Medium Enterprises(ESME) Support Project (P154495) ABBREVIATIONS AND ACRONYMS EBD Energy Business for Development ECB Enterprises Constructrices de Biodigesteurs (enterprises that build biodigestors) ESME Energy Small and Medium Enterprises GVEP Global Village Energy Partnership ICS Improved Cookstoves IFR Interim Financial Report IICS Improved Institutional Cookstoves IR Intermediate Results KE Kenya kW Kilowatt M&E Monitoring and Evaluation MSME Micro and Small and Medium Enterprises MW Megawatt PNB Programme National de Biogaz (National Biogas Program – Senegal) PREMS Projets Energétiques Multi-Sectoriels (Multi- sectoral Energy Projects – Senegal) REA Rural Energy Agency (Tanzania) SE4ALL Sustainable Energy for All SSA Sub Saharan Africa TA Technical Assistance TOR Terms of Reference TZ Tanzania UGX Ugandan Shilling, equivalent to $0.00028 The World Bank AFCC2/RI Second Energy Small &Medium Enterprises(ESME) Support Project (P154495) Note to Task Teams: The following sections are system generated and can only be edited online in the Portal. BASIC DATA Product Information Project ID Financing Instrument P154495 Investment Project Financing Original EA Category Current EA Category Not Required (C) Not Required (C) Approval Date Current Closing Date 31-May-2016 28-Aug-2017 Organizations Borrower Responsible Agency Energy4Impact Energy4Impact Project Development Objective (PDO) Original PDO The project objective is to strengthen the capacity of small and medium enterprises to provide access to energy in selected countries in Sub-Saharan Africa. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing Net TF Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed TF-A2550 26-May-2016 31-May-2016 31-May-2016 28-Aug-2017 3.23 2.47 .76 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank AFCC2/RI Second Energy Small &Medium Enterprises(ESME) Support Project (P154495) Note to Task Teams: End of system generated content, document is editable from here. I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING The Project Development Objective (PDO) of EBD is to strengthen the capacity of micro, small and medium enterprises to provide access to energy in selected countries in Sub-Saharan Africa. Implementation Progress to date has been satisfactory as shown in the recent ISR. The project is on track to achieve or exceed all PDO and IR indicators. Because progress to date has been satisfactory and more funding is available from the Parent Trust Fund, the Energy4Impact team has requested an extension for one year (from December 31, 2017 to December 31, 2018) funded with Additional Financing from the existing Parent Trust Fund. The donor has consented to this remaining funding being made available to E4I and that both the Parent and Child Trust Funds be extended. The amount of the additional financing being added to the project activity equals US$ 1,000,000. The proposed extension and additional financing is considered a Level 2 restructuring. With the extended time for implementation, the expected outputs are estimated to double. At the PDO level: (i) sales by female headed micro, small and medium energy enterprises reached by the project will increase from 10 percent to 20 percent; (ii) number of indirect project beneficiaries that have improved access to energy as a result of this project will increase from 500,000 to 1,230,000 beneficiaries. The World Bank AFCC2/RI Second Energy Small &Medium Enterprises(ESME) Support Project (P154495) II. DESCRIPTION OF PROPOSED CHANGES A. Component 1: Advisory services and capacity building support for MSME enterprises This activity will expand the activities currently under implementation. The number of biogas units sold in Senegal should increase by 500 beyond the 1050 set as the target in the original project paper for a total of 1550 biogas units sold during the 3-year project. For the number of institutional cookstoves sold to schools in Uganda, the target will be revised upward from the original target of 240 institutional stoves sold to 350 institutional stoves sold to schools for an increasing of 110. B. Component 2: Productive use support activities for SMEs in newly electrified villages Component 2 will continue to support activities in Senegal, Tanzania and Kenya. The number of PREMS projects delivered in Senegal will increase from 5 projects to 10 projects over the final project year. The number of village enterprises supported in villages will increase from 100 in the original project design to 274 for the revised project. This last indicator has already exceeded its original target by 84 enterprises (current value is 184 versus target of 100). Finally, sales by the micro, small and medium energy enterprises will increase from 15 percent to 30 percent; Note to Task Teams: The following sections are system generated and can only be edited online in the Portal. I. SUMMARY OF CHANGES Changed Not Changed Change in Results Framework ✔ The World Bank AFCC2/RI Second Energy Small &Medium Enterprises(ESME) Support Project (P154495) Change in Components and Cost ✔ Change in Loan Closing Date(s) ✔ Additional Financing Proposed ✔ Change in Disbursement Estimates ✔ Change in Implementation Schedule ✔ Change in Implementing Agency ✔ Change in Project's Development Objectives ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Change in Disbursements Arrangements ✔ Change in Overall Risk Rating ✔ Change in Safeguard Policies Triggered ✔ Change of EA category ✔ Change in Legal Covenants ✔ Change in Institutional Arrangements ✔ Change in Financial Management ✔ Change in Procurement ✔ Other Change(s) ✔ IV. DETAILED CHANGE(S) OPS_DETAILEDCHANGES_RESULTS_TABLE RESULTS FRAMEWORK Project Development Objective Indicators PDO_IND_TABLE Increased sales by the micro, small and medium energy enterprises reached by the project Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 15.00 30.00 Revised Date 01-Sep-2015 19-Jul-2016 31-Aug-2018 Indirect project beneficiaries that have improved access to energy (number) as a result of this project. The World Bank AFCC2/RI Second Energy Small &Medium Enterprises(ESME) Support Project (P154495) Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 500000.00 1230000.00 Revised Date 01-Sep-2015 19-Jul-2016 31-Aug-2018 Intermediate Indicators IO_IND_TABLE Number of schools with improved cookstoves Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 240.00 350.00 Revised Date 01-Sep-2015 19-Jul-2016 31-Aug-2018 Number of biogas units sold Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 1050.00 1550.00 Revised Date 01-Sep-2015 19-Jul-2016 31-Aug-2018 Number of PREMS Projects successfully delivered Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 5.00 10.00 Revised Date 01-Sep-2015 19-Jul-2016 31-Aug-2018 Number of enterprises supported villages newly connected by minigrids Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 100.00 274.00 Revised The World Bank AFCC2/RI Second Energy Small &Medium Enterprises(ESME) Support Project (P154495) Date 01-Sep-2015 19-Jul-2016 31-Aug-2018 Increased sales by female headed micro, small and medium energy enterprises reached by the project. Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 10.00 20.00 Revised Date 01-Sep-2015 19-Jul-2016 28-Aug-2017 OPS_DETAILEDCHANGES_COMPONENTS_TABLE COMPONENTS Current Current Proposed Proposed Cost Action Component Name Component Name Cost (US$M) (US$M) Advisory services and capacity Advisory services and capacity building support for energy building support for energy 2000308.00 Revised 2619627.00 sector micro, small and medium sector micro, small and enterprises (MSME?s) medium enterprises (MSME?s) Developing productive use Developing productive use activities for newly electrified 834438.00 Revised activities for newly electrified 1019312.00 villages villages Project management 395155.00 Revised Project management 590963.00 3,229,901.0 TOTAL 4,229,902.00 0 OPS_DETAILEDCHANGES_LOANCLOSING_TABLE LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline TF Status Closing Closing(s) Closing for Withdrawal Applications TF-A2550 Effective 28-Aug-2017 31-Aug-2018 31-Dec-2018 OPS_DETAILEDCHANGES_ADDITIONAL_FINANCING_TABLE ADDITIONAL FINANCING Source Currency Amount USD Equivalent Energy SME Support to SSA(ESME) USD 1,000,000.00 1,000,000.00 The World Bank AFCC2/RI Second Energy Small &Medium Enterprises(ESME) Support Project (P154495) Existing Net Commitment USD Amount 3,230,000.00 Total 4,230,000.00 OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Change in Disbursement Estimates Yes Year Current Proposed 2016 0.00 0.00 2017 6,107,348.40 3,529,902.00 2018 5,979,902.00 700,000.00 2019 0.00 0.00 2020 0.00 0.00 Note to Task Teams: End of system generated content, document is editable from here.