The World Bank Report No: ISR12504 Implementation Status & Results Lao People's Democratic Republic Nam Theun 2 Social and Environment Project (P049290) Public Disclosure Copy Operation Name: Nam Theun 2 Social and Environment Project (P049290) Project Stage: Implementation Seq.No: 6 Status: ARCHIVED Archive Date: 29-Jun-2014 Country: Lao People's Democratic Republic Approval FY: 2005 Product Line: IBRD/IDA Region: EAST ASIA AND PACIFIC Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 31-Mar-2005 Original Closing Date 31-Dec-2017 Planned Mid Term Review Date 14-Feb-2011 Last Archived ISR Date 21-Jun-2010 Effectiveness Date 10-Jun-2005 Revised Closing Date 31-Dec-2017 Actual Mid Term Review Date 25-Feb-2011 Project Development Objectives Project Development Objective (from Project Appraisal Document) To generate revenues, through environmentally and socially sustainable development of NT2's hydropower potential, which will be used to finance priority poverty reduction and environmental management programs. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Hydropower Facility 13.09 Management of Environmental and Social Impacts 3.09 Monitoring and Evaluation Arrangements 1.15 N/A 0.00 Overall Ratings Public Disclosure Copy Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Satisfactory Moderately Unsatisfactory Overall Risk Rating High Implementation Status Overview The overall technical and financial performance of the hydropower project has to date surpassed expectations. Electricity and revenue generation have consistently exceeded targets since commercial operations of NT2 started in 2010. Impressive progress has also been made with respect to social infrastructure and service delivery programs for resettled households. Physical resettlement and construction of new Page 1 of 10 The World Bank Report No: ISR12504 household and community infrastructure have been successfully completed, and resettler households on the Nakai plateau continue to build livelihoods and adapt to their new environment. A socio-economic survey undertaken in 2013 indicates that 97% of resettler households are above the national poverty line, and 86% stated that they are better off than before resettlement. Further work is required to enhance prospects for the sustainability of livelihoods as well as the institutional capacity for development and service delivery in villages and local government. The development of a social safety net to take care of a small number of vulnerable households who are unlikely to be unable to support themselves Public Disclosure Copy after the closing of the Resettlement Implementation Period remains a priority. The ongoing resettlement support program is focusing on these issues. There have been successes in environmental protection, notably in terms of water quality, sedimentation risk management, wildlife rescue in the Plateau area, and the preservation of the overall forest area in the watershed. However, there is significant pressure on the biodiversity of fauna from poaching as well as illegal logging of high value timber. The Watershed Management and Protection Authority (WMPA) established under NT2 is not yet performing well enough to deliver expected conservation and local development outcomes. A reform and restructuring process is under Government consideration. Under the NT2-Revenue Management Arrangements (RMA), progress reports on projects funded by NT2 revenues and accompanying financial reports should be submitted to the International Financial Intermediaries (IFIs) six months after the end of each Lao financial year. Audits are to be conducted annually. Although the World Bank has received reports on the allocation and expenditure of NT2 revenues by sector and by some projects including for activities such as teacher training, provision of school text books, rural health services, and electrification of rural villages, the IFIs have not yet received a formal report on the use of revenues, and the State Audit Organization (SAO) has not yet audited the use of these NT2 revenues. This is not compliant with the relevant provisions of the Financing Agreements between the Government (GoL) and the IFIs. The IFIs will continue to work with the respective GoL agencies to secure compliance with the NT2 RMA requirements. Responsibility for the implementation of the Downstream Program has been transferred to the Government as of January 1, 2013. The Nam Theun 2 Power Company (NTPC) conducted a survey of the socio-economic situation in project-affected downstream villages in the first quarter of 2014. The findings will inform ongoing dialogue with the Government on the future priorities of the Downstream Livelihood Program. Locations No Location data has been entered Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Allocation and Utlization of NT2 Revenues for Percentage Value 0.00 54.00 100.00 Poverty Reduction and Environmental Date 31-May-2005 30-May-2014 31-Dec-2017 Management Purposes Comments Based on preliminary figures Public Disclosure Copy developed by WB. To be submitted by MoF and verified by SAO audit. Household Income Targets of Resettled Percentage Value 97.00 100.00 Households on Nakai Plateau Date 31-May-2005 30-May-2014 30-Jun-2013 Comments Based on NTPC Living The chairman of the Standards Measurement Resettlement Committee Survey. formally confirmed in February 2014 that the HIT has been met. A safety net Page 2 of 10 The World Bank Report No: ISR12504 will be necessary to provide long-term support for vulnerable households that cannot meet the target. Public Disclosure Copy Watershed Environmental Protection Text Value Unknown Available data indicates Conservation and significant decline in management of the NT2 populations of threatened watershed results in no species and degradation of further degradation of habitats habitat through logging of or declines in populations of highvalue timber. threatened species. Date 31-May-2005 20-May-2014 31-Dec-2017 Comments Reports of the social and environmental Panel of Experts, reports of the Independent Monitoring Agency of the WMPA, external sources Generation Capacity of Hydropower Megawatt Value 0.00 1070.00 1070.00 constructed or rehabilitated under the project Date 31-Mar-2005 31-Dec-2013 31-Dec-2017 Comments Generation Capacity of Hydropower Megawatt Value 0.00 1070.00 1070.00 constructed under the project Sub Type Date 31-May-2005 30-May-2014 31-Dec-2017 Breakdown Comments Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Key Wildlife Threats such as hunting and Yes/No Value No No Yes further habitat loss have greatly reduced Date Comments Annual average export to Electricite de Laos is Gigawatt-hour Value 0.00 363.00 200.00 Public Disclosure Copy not less than 600 GWh (GWh) Date 31-Dec-2013 31-Dec-2017 Comments Avg. for three full years of A typographic error in the operation to date original PAD matrix suggested that this number was 600. The (indicator/ target) number should be 200 as explained in paragraph 17 on page A120 of the PAD. [“Lao PDR will be committed to buy up to 200 GWh of NT2 Page 3 of 10 The World Bank Report No: ISR12504 energy, but may buy up to 300 GWh per year.”] Annual average export to Electricity Generating Gigawatt-hour Value 0.00 5756.00 5000.00 Authority of Thailand is not less than 5,000 (GWh) Public Disclosure Copy Date 31-May-2005 31-Dec-2013 31-Dec-2017 GWh Comments Avg. for three full years of operation to date The Watershed Management Protection Yes/No Value No No Yes Agency is able to execute all designated Date 31-May-2005 13-Jun-2014 31-Dec-2017 managerial functions in a technically sound, Comments Institutional performance transparent and professional manner. assessments have recently been completed with the support of the World Bank, and GoL is considering options for reform. Effectiveness of Lenders' Technical Advisor Text Value 0 Moderately Unsatisfactory Satisfactory Date 30-May-2005 13-Jun-2014 31-Dec-2017 Comments Recent LTA reports and inputs have been somewhat superficial and have not provided an adequate basis for identifying and mitigatingsocial and environmental risks (e.g., inputs on spillway expansion) and comments on NTPC Annual Workplan. Water quality in Nam Theun reservoir and Xe Text Value 0 Acceptable Acceptable Bang Fai is within acceptable levels Date 31-May-2005 13-Jun-2014 31-Dec-2017 Comments NTPC monitors and will continue to monitor water quality throughout the Public Disclosure Copy concession period. In general, water quality in the reservoir is significantly better than anticipated during the design phase of the project; it meets or exceeds relevant standards set out in commonly accepted international guidelines Page 4 of 10 The World Bank Report No: ISR12504 Project affected households in the downstream Amount(USD) Value 0.00 Xe bang fai and Nam Theun areas have Date 31-May-2005 13-Jun-2014 31-Dec-2017 restored their livelihoods to pre-project levels Comments An NTPC livelihoods survey Public Disclosure Copy conducted in 2011 indicated that households had not yet restored their livelihoods. A new survey was conducted in early 2014, the findings of which remain to be finalized. Preliminary analysis indicates that per capita consumption increased in all downstream zones between the baseline survey of 2009 and the 2014 survey. Submission of annual audits of NT2 Revenue Yes/No Value No No Yes Account and of eligible programs Date 31-May-2005 20-May-2014 31-Dec-2017 Comments No audits have been conducted by Government to date. Financial Statements of NT2 Revenue Account Yes/No Value No No Yes Submitted to World Bank Annually. Date 31-May-2005 20-May-2014 31-Dec-2017 Comments MoF has recently submitted financial statements for the period 2010 - 2013 to the SAO, but not yet to the World Bank. Basic public and social services are provided Text Value Public and social services The resettled population The resettled population and improved in all resettlement villages on the were scarce and low quality. benefit from improved and benefit from improved, stable Nakai Plateau affordable basic services. The and affordable basic services. priority is now to ensure that access and qualityremain Public Disclosure Copy stable as these assets are fully handed over to GoL. Date 31-May-2005 13-Jun-2014 31-Dec-2017 Comments Only schools in large villages Each village has a primary were functioning properly. school and kindergarten; in There were 5 health centers 2013 over 90% of all primary and 1 malaria control station; aged children were in school. health centerswere There are now 2 additional incompletely staffed and Integrated Community Health poorly stocked with essential Centers and an ambulance; Page 5 of 10 The World Bank Report No: ISR12504 drugs. 43% of under-5s trained village health attending initial health checks volunteers and traditional birth in 2005-2008 werestunted. attendants in every village; Villagers collected water monthly MCH clinics. Public Disclosure Copy directly from rivers or Comprehensive health checks streams, and drinking water were carried out in 2013 and was seldom boiled; there revealed impressive progress were few toilets. on a number of indicators, such as a reduction in stunting among under 5s to 34.2% in 2013. There are 333 boreholes with hand pumps and electric pumps installed; every resettler house has its own toilet, along with most community buildings, and toilet use is almost universal. Effectiveness of Monitoring by Independent Text Value 0 Effective Dam Safety Review Panel Expert Panels and International Panel of Social and Environmental Experts demonstrate ability to ensure dam safety and accomplishment of E&S objectives and CA commitments to income targets of resettlers, watershed preservation, etc. Date 31-May-2005 13-Jun-2014 31-Dec-2017 Comments The independent expert panels continue to provide a range of information that helps implementers and IFIs identify and resolve issues Public Disclosure Copy related to implementation. Regular visits and reports, supplemented by additional exchanges, provide effective and timely inputs Private Capital Mobilized Amount(USD) Value 0.00 1150.00 1150.00 Date 31-May-2005 13-Jun-2014 31-Dec-2017 Comments This number represents the amount of private lending and Page 6 of 10 The World Bank Report No: ISR12504 investment mobilized by the IDA PRG guarantee ($42 mln). Source: Note (June 2005), Public Disclosure Copy produced by WB’s Project Finance and Guarantees Group, entitled: “IDA Guarantee Paves Renewed Interest in Private Hydropower – the Nam Theun 2 Project.” Improved community water points constructed Number Value 0.00 877.00 or rehabilitated under the project Date 31-May-2005 13-Jun-2014 31-Dec-2017 Comments 333 in the resettlement area, All resettler households have 544 in the Downstream area. access to drinking water NTPC data OLD Version of Indicator: People in project Number Value 0.00 areas with access to Improved Water Sources Date Comments Vulnerable/marginalized people in proj. area Percentage Value 0.00 4827.00 aware of project inv. & benefits (%) Date 31-May-2005 13-Jun-2014 31-Dec-2017 Comments Calculated as the number of No Target specified. minority ethnic group individuals in Nakai, based on QSEM survey of NTPC. All ethnic minority individuals in the Nakai area are aware, to some degree, or project investments and benefits. We lack data on how many individuals in the DS area have been fully informed. Public Disclosure Copy Vulnerable/marginalized people aware of Number Value 0.00 2402.00 project inv. & benefits - male Sub Type Supplemental Vulnerable/marginalized people aware of Number Value 0.00 2425.00 project inv. & benefits - female Sub Type Supplemental People in the project area - male (number) Number Value 0.00 77138.00 Page 7 of 10 The World Bank Report No: ISR12504 Sub Type Supplemental People in the project area – female (number) Number Value 0.00 81219.00 Public Disclosure Copy Sub Type Supplemental Participants in consultation activities during Number Value 0.00 project implementation (number) Date 31-May-2005 13-Jun-2014 31-Dec-2017 Comments Number to be confirmed in consultation with GoL and NTPC. Participants in consultation activities during Number Value 0.00 project implementation - female Sub Type Date Breakdown Comments Number to be confirmed in consultation with GoL and NTPC. Roads rehabilitated, Rural Kilometers Value 0.00 120.00 120.00 Date 31-May-2005 19-May-2014 31-May-2017 Comments Roads constructed, Rural Kilometers Value 0.00 150.00 150.00 Date 31-May-2005 19-May-2014 31-Dec-2017 Comments Target popln with use or ownership rights Number Value 0.00 6300.00 6300.00 recorded as a result of the project Date 13-Jun-2014 31-Dec-2017 Comments Resettled household were given secure ownership rights to their houses and residential plots and secure use rights for their 0.66haagricultural plots. Public Disclosure Copy Titles were issued in the name of both the household head and their husband/wife. Community land titling, an innovative process in Lao PDR, should ensure that use rights for community land are also protected Page 8 of 10 The World Bank Report No: ISR12504 Areas brought under enhanced biodiversity Hectare(Ha) Value 0.00 400000.00 protection (ha) Date 19-May-2014 19-May-2014 Comments Public Disclosure Copy Direct project beneficiaries Number Value 0.00 158357.00 Date Comments Figure based on total No target was specified population of downstream during Project design. villages supported under the Project and Nakai plateau resettlers. Population of the watershed is currently unknown. Source: NTPC Female beneficiaries Percentage Value 0.00 81219.00 Sub Type Supplemental Transmission lines constructed or rehabilitated Kilometers Value 0.00 208.00 208.00 under the project Date 31-May-2005 19-May-2014 31-Dec-2017 Comments Transmission lines constructed under the Kilometers Value 0.00 208.00 208.00 project Sub Type Date 20-May-2014 31-Dec-2017 Breakdown Comments Data on Financial Performance (as of 12-Nov-2009) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P049290 IDA-H1550 Effective 31-Mar-2005 26-Apr-2005 10-Jun-2005 31-Dec-2017 31-Dec-2017 Disbursements (in Millions) Public Disclosure Copy Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P049290 IDA-H1550 Effective XDR 13.10 13.10 0.00 13.10 0.00 100.00 Disbursement Graph Page 9 of 10 The World Bank Report No: ISR12504 Public Disclosure Copy Key Decisions Regarding Implementation (a) submission of overdue financial and audit reports are needed from GOL; (b) a reform plan for WMPA is needed from GOL; and (c) a decision is needed from GOL on priorities for the Downstream Livelihood program. Restructuring History There has been no restructuring to date. Related Projects There are no related projects. Public Disclosure Copy Page 10 of 10