The World Bank Report No: ISR8137 Implementation Status & Results Lao People's Democratic Republic Rural Electrification Phase II Project of the Rural Electrification (APL) Program (P110978) Public Disclosure Copy Operation Name: Rural Electrification Phase II Project of the Rural Project Stage: Implementation Seq.No: 3 Status: ARCHIVED Archive Date: 10-Dec-2012 Electrification (APL) Program (P110978) Country: Lao People's Democratic Republic Approval FY: 2010 Product Line: IBRD/IDA Region: EAST ASIA AND PACIFIC Lending Instrument: Adaptable Program Loan Implementing Agency(ies): Ministry of Finance, Electricite du Laos, Ministry of Energy and Mines Key Dates Board Approval Date 12-Jan-2010 Original Closing Date Planned Mid Term Review Date 25-Mar-2013 Last Archived ISR Date 28-Sep-2011 Effectiveness Date 09-Aug-2010 Revised Closing Date 30-Jun-2014 Actual Mid Term Review Date Project Development Objectives Rural Electrification Phase II Project of the Rural Electrification (APL) Program (P110978) Project Development Objective (from Project Appraisal Document) The development objectives of the Phase II Project are to: (i) increase access to electricity of rural households in villages oftargeted provinces; and (ii) further improve the finanical perfromance of Electricite du Laos. Has the Project Development Objective been changed since Board Approval of the Program? Yes 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 Program? Yes No Public Disclosure Copy Component(s) Component Name Component Cost EdL Component: A.1. Grid Extension; A.2. Loss Reduction; A.3. IT System & Financial Mgmt; A.4. 31.88 Safeguards Capacity Building; and A. 5. Demand Side Mmgt & Energy Efficiency. MEM Component: B.1. Off-Grid Investment Program; B.2. Institutional Strengthening; B.3. Alternative 4.91 RE Delivery Models; B.4. RE Mast er Plan & Database; B.5. Organizational Strengthing of MEM Overall Ratings Previous Rating Current Rating Page 1 of 8 The World Bank Report No: ISR8137 Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Moderately Satisfactory Progress towards achievement of GEO Satisfactory Moderately Satisfactory Public Disclosure Copy Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Implementation Status Overview The project has achieved about one-third of its household access to electricity targets largely through the power-to-the poor program and installation of solar home systems. The construction of new lines and additional on-grid connections is expected to pick up pace now that some of the earlier implementation delays have been resolved. Despite a recent increase in electricity tariffs in March 2012, the financial sustainability of the utility will require close monitoring and a financial sustainability action plan is under development. Locations Country First Administrative Division Location Planned Actual Laos Khoueng Savannakhet Khoueng Savannakhet Laos Khoueng Salavan Khoueng Salavan Laos Khoueng Khammouan Khoueng Khammouan Laos Khoueng Champasak Khoueng Champasak Laos Khoueng Attapu Khoueng Attapu Laos Khoueng Xekong Khoueng Xekong Laos Khoueng Bolikhamxai Khoueng Bolikhamxai Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Public Disclosure Copy People provided with access to electricity by Number Value 0.00 12566.00 37700.00 household connections Date 30-Sep-2009 30-Sep-2012 31-Dec-2013 Comments Household are connected through P2P Program (6,766) HHs and SHS (5,800 HHs) People provided with access to electricity by Number Value 0.00 6766.00 27700.00 hhold connections-Grid Sub Type Date 30-Sep-2009 30-Sep-2012 31-Dec-2013 Breakdown Comments about 25% of target is achieved thru P2P only Page 2 of 8 The World Bank Report No: ISR8137 Ppl provided wth elec. by hhold conn.–Offgrid/ Number Value 0.00 5800.00 10000.00 minigrid–Only renewable sources Sub Type Date 30-Sep-2009 30-Sep-2012 31-Dec-2013 Breakdown Comments HHs connected through SHS Public Disclosure Copy only. 50% of target is achieved. Source of data: IREP/MEM EdL financial performance - rate of return on Percentage Value 1.00 -0.12 4.00 revalued assets Date 31-Dec-2009 30-Sep-2012 31-Dec-2013 Comments Target is not yet achieved. Deterioration of EDL financial performance from previous year caused by demerger of EDL-gen from EDL and reassessment of 2011 EDL financial data EdL financial perfromance - Debt service Number Value 1.30 0.80 1.30 coverage ratio Date 31-Dec-2009 30-Sep-2012 31-Dec-2013 Comments Team reassessment based Target Value: more than 1.3 on 2011 EDL financial data time Number of households electrified Number Value 0.00 12566.00 37700.00 Date 31-Dec-2009 30-Sep-2012 31-Dec-2013 Comments Target is not yet achieved. Some 6,766 Households are connected under P2P program and 5,800 with SHS EdL financial performance - self-financing ratio Percentage Value 15.00 5.00 15.00 Date 31-Dec-2009 30-Sep-2012 31-Dec-2013 Comments Target is not yet achieved. Target Value: more than 15% Deterioration of EDL financial performance from previous Public Disclosure Copy year caused by demerger of EDL-gen from EDL and reassessment of 2011 EDL financial data Account receivables from Government Months Value 20.00 10.00 3.00 agencies Date 31-Dec-2009 30-Sep-2012 31-Dec-2013 Comments Accumulated gov’t arrears were 87420 divided by 8779 = 9.96 months. Data first half of 2012 Page 3 of 8 The World Bank Report No: ISR8137 Global Environmental Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Electricity losses per year in the project area Percentage Value 13.00 10.45 12.00 Public Disclosure Copy Date 30-Sep-2009 30-Sep-2012 31-Dec-2013 Comments Technical and non-technical Technical and non-technical losses were not losses are not disaggregated. disaggregated. Target is achieved. Total net injected generation Megawatt hour Value 0.00 0.00 0.00 (MWh) Sub Type Supplemental Electricity losses per year in the project area- Percentage Value 13.00 10.45 12.00 Technical Sub Type Supplemental Electricity losses per year in the project area- Percentage Value 0.00 0.00 0.00 Non-Technical Sub Type Supplemental People provided with access to electricity by Number Value 0.00 5800.00 10000.00 hold connections-Other RE: Off-grid Date 30-Sep-2009 30-Sep-2012 31-Dec-2013 Comments Source of supply - SHS CO2 emission reduction Metric ton Value 0.00 0.00 300000.00 Date 31-Dec-2009 30-Sep-2012 31-Dec-2013 Comments No new renewable energy to be calculated based on project was developed as of cumulative electricity to date. Village hydropower generated from newly project are in rebidding installed renewable energy process. Biomass projectsare generation capacity and also upcoming reduction of EdL's distribution system losses. Public Disclosure Copy Newly installed renewable energy generation Megawatt Value 0.00 0.00 0.30 capacity Date 31-Dec-2009 30-Sep-2012 31-Dec-2013 Comments Target is not yet achieved. Village hydropower project are in rebidding process. Biomass projects also upcoming. EdL's distribution system losses Percentage Value 13.00 10.45 12.00 Page 4 of 8 The World Bank Report No: ISR8137 Date 31-Dec-2009 30-Sep-2012 31-Dec-2013 Comments Target is being achieved. EDL’s data 2011 Public Disclosure Copy Measurable increase in awareness and Percentage Value 50.00 50.00 100.00 adoption of EE technologies and practices by Date 31-Dec-2009 30-Sep-2012 31-Dec-2013 customers Comments (a) awareness of EE: 50 No update since last mission. (a) 100% central government government agencies; (b) Phase II Pre-Implementation agencies; 100 large adoption of EE technologies survey results are awaited. It consumers in Vientiane; (b) and practices: no customers ‘s expected by the end of 50 government agencies, 4 2012 hospitals, 4 large commercialconsumers Generation Capacity of Hydropower Megawatt Value 0.00 0.00 0.30 constructed or rehabilitated under the project Date 31-Dec-2009 30-Sep-2012 31-Dec-2013 Comments Promising Hydropower project is being re-bid Generation Capacity of Hydropower Megawatt Value 0.00 0.00 0.30 constructed under the project Sub Type Date 31-Dec-2009 30-Sep-2012 31-Dec-2013 Breakdown Comments Promising Hydropower project is being re-bid Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Distribution lines constructed or rehabilitated Kilometers Value 0.00 0.00 1209.00 under the project Date 31-Dec-2009 30-Sep-2012 31-Dec-2013 Comments Distribution lines have not yet been installed due to delays of materials delivery Distribution lines constructed under the project Kilometers Value 0.00 0.00 1209.00 Sub Type Date 31-Dec-2009 30-Sep-2012 31-Dec-2013 Public Disclosure Copy Breakdown Comments Distribution lines have not been installed due to delays of materials delivery Community electricity connections constructed Number Value 0.00 239.00 1080.00 under the project Date 31-Dec-2009 30-Sep-2012 31-Dec-2013 Comments Although distribution lines have not been installed due to delays of materials delivery, Page 5 of 8 The World Bank Report No: ISR8137 the community is connected under P2P program. Data source – EDL Community electricity connections constructed Number Value 0.00 239.00 1080.00 Public Disclosure Copy –Grid Sub Type Date 31-Dec-2009 30-Sep-2012 31-Dec-2013 Breakdown Comments Although distribution lines have not been installed due to delays of materials delivery, the community is connected under P2P program. Data source – EDL EdL distribution system losses Percentage Value 13.00 10.45 11.00 Date 31-Dec-2009 30-Sep-2012 31-Dec-2013 Comments EDL data 2011 Length of MV and LV lines installed Kilometers Value 0.00 0.00 1209.00 Date 31-Dec-2009 30-Sep-2012 31-Dec-2013 Comments Procurement of materials completed. Materials will be delivered, following the release of IFC Loans. Physical progress is expected in the upcoming dry season (November 2012 – May 2013) Number of households newly electrified Number Value 0.00 5800.00 10000.00 through off-grid renewable energy technologies Date 31-Dec-2009 30-Sep-2012 31-Dec-2013 Comments 15,000 SHS purchase completed. Two third of total SHS were delivered, half of which installed Measurable increase in awareness and Percentage Value 10.00 50.00 80.00 adoption of EE technologies Public Disclosure Copy Date 31-Dec-2009 30-Sep-2012 31-Dec-2013 Comments 10 GOL agencies under REP Contracts for awareness (a) 100% central government I campaign and surveys were agencies; 100 large just concluded before the consumers in Vientiane; (b) mission date. The activities to 50 government agencies, 4 be carried out in Q4 hospitals, 4 large ofCY2012 commercialconsumers Number of village/community electrified Number Value 0.00 239.00 1080.00 Page 6 of 8 The World Bank Report No: ISR8137 Sub Type Supplemental Number of households newly electrified Number Value 0.00 6766.00 27700.00 Public Disclosure Copy through grid extension Date 31-Dec-2009 30-Sep-2012 31-Dec-2013 Comments Progress under Power to Poor program only. Number of rural electrification projects with Number Value 0.00 0.00 3.00 financial support of Rural Electrification Fund Date 31-Dec-2009 30-Sep-2012 31-Dec-2013 Comments Village hydropower project is in process of rebidding, while biogas projects are being worked out on business models. Transmission lines constructed or rehabilitated Kilometers Value 0.00 0.00 0.00 under the project Date 31-Dec-2009 30-Sep-2012 31-Dec-2013 Comments The project doesn't finance Transmission Lines. Transmission lines constructed under the Kilometers Value 0.00 0.00 0.00 project Sub Type Date 31-Dec-2009 30-Sep-2012 31-Dec-2013 Breakdown Comments The project doesn't finance Transmission Lines. Data on Financial Performance (as of 31-Oct-2012) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P110978 IDA-H5380 Effective 13-Jan-2010 08-Feb-2010 09-Aug-2010 30-Jun-2014 30-Jun-2014 P117177 TF-98662 Effective 05-May-2011 05-May-2011 17-Aug-2011 30-Jun-2014 30-Jun-2014 Public Disclosure Copy Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P110978 IDA-H5380 Effective USD 20.00 20.00 0.00 11.03 8.30 55.00 P117177 TF-98662 Effective USD 1.82 1.82 0.00 0.05 1.77 3.00 Disbursement Graph Page 7 of 8 The World Bank Report No: ISR8137 Public Disclosure Copy Key Decisions Regarding Implementation The mid-term review is scheduled for March 2013. Restructuring History There has been no restructuring to date. Related Projects P117177-GEF Project: Lao Rural Electrification Phase II Project Public Disclosure Copy Page 8 of 8