Public Disclosure Copy The World Bank Implementation Status & Results Report Rural Electrification Phase II Project of the Rural Electrification (APL) Program (P110978) Rural Electrification Phase II Project of the Rural Electrification (APL) Program (P110978) EAST ASIA AND PACIFIC | Lao People's Democratic Republic | Energy and Mining Global Practice | IBRD/IDA | Adaptable Program Loan | FY 2010 | Seq No: 7 | ARCHIVED on 15-Jun-2015 | ISR19064 | Implementing Agencies: Electricite du Laos, Ministry of Energy and Mines Key Dates Key Project Dates Board Approval date:12-Jan-2010 Effectiveness Date:09-Aug-2010 Planned Mid Term Review Date:25-Mar-2013 Actual Mid-Term Review Date:22-May-2013 Original Closing Date:-- Revised Closing Date:30-Jun-2015 Project Development Objectives Rural Electrification Phase II Project of the Rural Electrification (APL) Program (P110978) Project Development Objective (from Project Appraisal Document) a) To increase access to electricity of rural households in villages of Project provinces; and b) To further improve the financial performance of EdL. Has the Project Development Objective been changed since Board Approval of the Project Objective? No GEF Project: Lao Rural Electrification Phase II Project (P117177) Global Environmental Objective (from Project Appraisal Document) The GEO are (i) increase efficiency of energy supply by EDL and consumption by consumers; and (ii) adopt substantial renewable energy in the government’s rural electrification program. Has the Global Environmental Objective been changed since Board Approval of the Project Objective? No Components Name EdL Component: A.1. Grid Extension; A.2. Loss Reduction; A.3. IT System & Financial Mgmt; A.4. Safeguards Capacity Building; and A. 5. Demand Side Mmgt & Energy Efficiency.:(Cost $16.89 M) MEM Component: B.1. Off-Grid Investment Program; B.2. Institutional Strengthening; B.3. Alternative RE Delivery Models; B.4. RE Mast er Plan & Database; B.5. Organizational Strengthen of MEM:(Cost $4.92 M) 6/15/2015 Public Disclosure Copy Page 1 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report Rural Electrification Phase II Project of the Rural Electrification (APL) Program (P110978) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Moderately Satisfactory  Moderately Satisfactory Progress towards achievement of GEO  Moderately Satisfactory  Moderately Unsatisfactory Overall Implementation Progress (IP)  Moderately Satisfactory  Moderately Satisfactory Overall Risk Rating  Moderate  Moderate Implementation Status and Key Decisions Progress toward achievement of Project Development Objectives: After 5 years of implementation, the project has electrified about 42,300 out of 37,700 (112%) of targeted rural households as of May 2015, with new connections, both on-grid and off-grid, continuingly being added at an accelerated rate. The implementing agencies expect to further exceed the target by the closing date of June 2015, which was approved as part of the December 2013 restructuring. . Electricite du Laos (EDL has been undergoing corporate restructuring that commenced in late 2010, including the separation of the generation business from EDL and the creation of EDL Generation Company to take over the power generation business. The overall financial situation of EDL Group was satisfactory according to the latest 2013 financial results. However, the power grid business was loss-making and subsidized by the generation business. The second financial action plan for financial sustainability provides a framework to ensure overall financial and power grid business sustainability in the long term. Progress towards the achievement of the Global Environment Objectives: For EDL’s energy efficiency supply side, activities to help reduce distribution losses below 13% are continuing, such as meter replacement, billing system fine-tuning. On the demand side, an energy efficiency awareness campaign was fully carried out. The implementation of energy efficiency pilot projects for public buildings is now completed. As for increasing renewable energy in the rural electrification program, the village hydro and biogas power pilot projects are under construction and are y on track to be completed by project closing. All together, the number of rural electrifications projects supported by the Rural Electrification Fund under this project will meet the end project target of three projects, and contribute toward meeting the 300,000 tons of CO2 reduction target. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  Moderate  Moderate Macroeconomic  --  Moderate  Moderate Sector Strategies and Policies  --  Substantial  Substantial Technical Design of Project or Program  --  Moderate  Moderate Institutional Capacity for Implementation and Sustainability  --  Substantial  Substantial Fiduciary  --  Substantial  Substantial Environment and Social  --  Moderate  Moderate Stakeholders  --  Moderate  Moderate Other  --  --  -- 6/15/2015 Public Disclosure Copy Page 2 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report Rural Electrification Phase II Project of the Rural Electrification (APL) Program (P110978) Overall  --  Moderate  Moderate Results Project Development Objective Indicators PHINDPDOTBL  People provided with access to electricity by household connections (Number, Core) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 134292.00 190350.00 150800.00 Date 30-Sep-2009 30-Jun-2014 01-May-2015 30-Jun-2015 Comments The number of total people provided with access to electricity is the total of 42,300 Households times an average of 4.5 people per Household PHINDPDOTBL  People provided with access to electricity by hhold connections-Grid (Number, Core Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 83560.00 133200.00 110800.00 Date 30-Sep-2009 30-Jun-2014 01-May-2015 30-Jun-2015 PHINDPDOTBL  Ppl provided wth elec. by hhold conn.–Offgrid/minigrid–Only renewable sources (Number, Core Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 50732.00 57150.00 40000.00 Date 30-Sep-2009 30-Jun-2014 01-May-2015 30-Jun-2015 PHINDPDOTBL  EdL financial perfromance - Debt service coverage ratio (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.30 1.40 1.40 1.10 6/15/2015 Public Disclosure Copy Page 3 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report Rural Electrification Phase II Project of the Rural Electrification (APL) Program (P110978) Date 31-Dec-2009 30-Jun-2014 30-Jun-2014 30-Jun-2015 PHINDPDOTBL  Number of households electrified (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 33573.00 42300.00 37700.00 Date 31-Dec-2009 30-Jun-2014 01-May-2015 30-Jun-2015 Comments Total number of households electrified as of May 2015: On-Grid = 29,600 Households Off-Grid = 12,700 Households PHINDPDOTBL  Account receivables from Government agencies (Months, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 20.00 14.00 14.00 3.00 Date 31-Dec-2009 30-Jun-2014 01-May-2015 30-Jun-2015 Overall Comments Global Environmental Objective Indicators PHINDGEOTBL  Electricity losses per year in the project area (Percentage, Core) Baseline Actual (Previous) Actual (Current) End Target Value 13.00 12.10 13.50 12.00 Date 30-Sep-2009 31-Dec-2013 31-Dec-2014 30-Jun-2015 Comments 6/15/2015 Public Disclosure Copy Page 4 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report Rural Electrification Phase II Project of the Rural Electrification (APL) Program (P110978) The distribution system losses dropped to 12% in 2013 and climbed back up to 13.5% in 2014. In 2014 EDL removed a number of large customers from the distribution network and served directly by the medium voltage network (over 22 kV). Partly as a result of this shift in large customers, the 2014 loss level was higher than 2013 and stayed above the 12% end target. As EDL is implementing the power distribution system rehabilitation project in four load centers--including Vientian capital, Savannakhet, Takek, and Pakse--the distribution losses are likely to meet the end target in the coming years. PHINDGEOTBL  People provided with access to electricity by hold connections-Other RE: Off-grid (Number, Core) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 50732.00 57150.00 40000.00 Date 30-Sep-2009 30-Jun-2014 01-May-2015 30-Jun-2015 PHINDGEOTBL  (f) CO2 emission reduction (Metric ton, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 300000.00 Date 31-Dec-2009 31-Oct-2014 01-May-2015 30-Jun-2015 Comments (i) Energy efficiency awareness campaign was fully carried out. The implementation of energy efficiency pilot projects for public buildings is now completed; (ii) EDL distribution losses reduced to 12% in 2013, but increased again to 13.5% in 2014; (iii) One 0.26 MW biogas power pilot project and 0.05 MW village hydro pilot project are under final stage of construction and are on track to completion by project closing. These three activities contribute toward meeting the end target, and will be confirmed during ICR preparation. PHINDGEOTBL  Newly installed renewable energy generation capacity (Megawatt, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 0.30 Date 31-Dec-2009 31-Oct-2014 01-May-2015 30-Jun-2015 Comments One 0.26 MW biogas power pilot project and the 0.05 MW Huaphan village hydro power pilot, approved as part of the December 2013 6/15/2015 Public Disclosure Copy Page 5 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report Rural Electrification Phase II Project of the Rural Electrification (APL) Program (P110978) Project restructuring, are now under construction and are on-track to completion prior the project closing. PHINDGEOTBL  EdL's distribution system losses (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 13.00 12.10 13.50 12.00 Date 31-Dec-2009 31-Dec-2013 31-Dec-2014 30-Jun-2015 Comments The distribution system losses dropped to 12% in 2013 and climbed back up to 13.5% in 2014. In 2014 EDL removed a number of large customers from the distribution network and served directly by the medium voltage network (over 22 kV). Partly as a result of this shift in large customers, the 2014 loss level was higher than 2013 and stayed above the 12% end target. As EDL is implementing the power distribution system rehabilitation project in four load centers--including Vientian capital, Savannakhet, Takek, and Pakse--the distribution losses are likely to meet the end target in the coming years. PHINDGEOTBL  Measurable increase in awareness and adoption of EE technologies and practices by customers (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 50.00 100.00 100.00 100.00 Date 31-Dec-2009 31-Oct-2014 01-May-2015 30-Jun-2015 PHINDGEOTBL  Generation Capacity of Hydropower constructed or rehabilitated under the project (Megawatt, Core) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 0.30 Date 31-Dec-2009 31-Oct-2014 01-May-2015 30-Jun-2015 Comments 6/15/2015 Public Disclosure Copy Page 6 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report Rural Electrification Phase II Project of the Rural Electrification (APL) Program (P110978) As part of the December 2013 Project restructuring, one 0.26 MW biogas power pilot project and 0.05 MW village hydro power pilot project are now under construction and are on-track for completion prior to the project closing. The 0.3 MW end target will be met through these projects. PHINDGEOTBL  Generation Capacity of Hydropower constructed under the project (Megawatt, Core Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 0.30 Date 31-Dec-2009 31-Oct-2014 01-May-2015 30-Jun-2015 Overall Comments Intermediate Results Indicators PHINDIRITBL  Distribution lines constructed or rehabilitated under the project (Kilometers, Core) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1600.00 2175.00 1209.00 Date 31-Dec-2009 30-Jun-2014 01-May-2015 30-Jun-2015 Comments For 22KV line: 1309.22 Km For 0.4KV line: 866.57 Km Total of 2175 Km of distribution lines constructed/rehabilitated exceeding the end target of 1209 Km. 6/15/2015 Public Disclosure Copy Page 7 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report Rural Electrification Phase II Project of the Rural Electrification (APL) Program (P110978) PHINDIRITBL  Distribution lines constructed under the project (Kilometers, Core Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1600.00 2175.00 1209.00 Date 31-Dec-2009 30-Jun-2014 12-May-2015 30-Jun-2015 PHINDIRITBL  EdL distribution system losses (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 13.00 12.10 13.50 12.00 Date 31-Dec-2009 30-Jun-2014 31-Dec-2014 30-Jun-2015 PHINDIRITBL  Number of households newly electrified through off-grid renewable energy technologies (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 12683.00 12700.00 10000.00 Date 31-Dec-2009 30-Jun-2014 01-May-2015 30-Jun-2015 PHINDIRITBL  Measurable increase in awareness and adoption of EE technologies (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 10.00 100.00 100.00 80.00 Date 31-Dec-2009 30-Jun-2014 01-May-2015 30-Jun-2015 6/15/2015 Public Disclosure Copy Page 8 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report Rural Electrification Phase II Project of the Rural Electrification (APL) Program (P110978) PHINDIRITBL  Number of households newly electrified through grid extension (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 20890.00 29600.00 27700.00 Date 31-Dec-2009 30-Jun-2014 01-May-2015 30-Jun-2015 PHINDIRITBL  Number of rural electrification projects with financial support of Rural Electrification Fund (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3.00 3.00 3.00 Date 31-Dec-2009 31-Oct-2014 01-May-2015 30-Jun-2015 Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P110978 IDA-H5380 Effective USD 20.00 20.00 0.00 17.18 1.91 86% P117177 TF-98662 Effective USD 20.00 1.82 0.00 1.05 0.77 58% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P110978 IDA-H5380 Effective 13-Jan-2010 08-Feb-2010 09-Aug-2010 30-Jun-2014 30-Jun-2015 P117177 TF-98662 Effective 05-May-2011 05-May-2011 17-Aug-2011 30-Jun-2014 30-Jun-2015 Cumulative Disbursements 6/15/2015 Public Disclosure Copy Page 9 of 10 Public Disclosure Copy The World Bank Implementation Status & Results Report Rural Electrification Phase II Project of the Rural Electrification (APL) Program (P110978) Restructuring History Level Approved on 27-Nov-2013 Related Project(s) P117177-GEF Project: Lao Rural Electrification Phase II Project 6/15/2015 Public Disclosure Copy Page 10 of 10