The World Bank Implementation Status & Results Report Eskom Investment Support Project (P116410) Eskom Investment Support Project (P116410) AFRICA | South Africa | Energy & Extractives Global Practice | IBRD/IDA | Investment Project Financing | FY 2010 | Seq No: 17 | ARCHIVED on 11-Nov-2019 | ISR38880 | Implementing Agencies: ESKOM Holdings SOC Limited, Department of Public Enterprises, ESKOM Key Dates Key Project Dates Bank Approval Date: 08-Apr-2010 Effectiveness Date: 31-May-2010 Planned Mid Term Review Date: 16-Jun-2014 Actual Mid-Term Review Date: 30-Jun-2014 Original Closing Date: 31-Oct-2015 Revised Closing Date: 31-Dec-2020 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective (PDO) of the Eskom Investment Support Project for South Africa is to enhance its power supply andenergy security in an efficient and sustainable manner so as to support both economic growth objectives and South Africa's longterm carbon mitigation strategy. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Medupi Power Plant:(Cost $2380.85 M) Renewable energy (Sere Wind Farm and Battery Storage Program):(Cost $267.83 M) Support for low carbon energy efficiency comps., comprising the Majuba Railway for coal transportation & TA prog. for energy efficie ncy:(Cost $415.77 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO ►Moderately Satisfactory ►Moderately Satisfactory Overall Implementation Progress (IP) ►Moderately Unsatisfactory ►Moderately Unsatisfactory Overall Risk Rating ►High ►High Implementation Status and Key Decisions 11/11/2019 Page 1 of 11 The World Bank Implementation Status & Results Report Eskom Investment Support Project (P116410) Since the last mission the project continues to achieve good progress towards construction completion, despite the Medupi latent defects challenges. All six units of Medupi are now synchronized to the grid, with Unit 1 (last unit that was under construction) being synchronized in August 2019 (ahead of the planned date of November 2019). Unit 3 achieved commercial operation (CO) on July 5, 2019. Units 2 and 1 remain to reach commercial operation (CO), which is expected by December 2019 and May 2020 respectively. Common challenges with Units 2 and 1 are leakages on the dust handling plant and difficulties with ash extraction from the Pulse Jet Fabric Filters (PJFF) ash hoppers. The resolution of latent defects remains the main risk to the project development outcomes. Although there is significant progress from Eskom’s side in dealing with the latent defects, the lack of agreement between Eskom and the contractor remains a sticking issue in firming up a credible plan for the resolution of these defects. The transmission lines are 90% complete. To date, seven sections from Medupi Phase 2 Transmission Lines are yet to be finalized, and four of them will not be completed by WB’s project closing date (December 31, 2019). The most important implementation issues are on Masa-Ngwedi sections C&D at 765kV (contractual completion date was February 2019). Majuba Rail should have been completed by now, but it faces several contractual issues and it is unlikely that it can be completed by the current closing date. At Eskom's request, the WB is considering extension of the loan closing date until June 2021 to ensure completion of all components of the project. The requested extension is currently under WB management consideration. Progress on the Battery Storage program has been impacted by a delay in PFMA approval. It was expected that approval would be granted by mid-October 2019 and the procurement process would commence soon thereafter. 11/11/2019 Page 2 of 11 The World Bank Implementation Status & Results Report Eskom Investment Support Project (P116410) 11/11/2019 Page 3 of 11 The World Bank Implementation Status & Results Report Eskom Investment Support Project (P116410) 11/11/2019 Page 4 of 11 The World Bank Implementation Status & Results Report Eskom Investment Support Project (P116410) 11/11/2019 Page 5 of 11 The World Bank Implementation Status & Results Report Eskom Investment Support Project (P116410) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- ►Moderate ►Substantial Macroeconomic -- ►Substantial ►Substantial Sector Strategies and Policies -- ►Substantial ►Substantial Technical Design of Project or Program -- ►High ►High Institutional Capacity for Implementation and Sustainability -- ►High ►High Fiduciary -- ►Substantial ►Substantial Environment and Social -- ►Substantial ►Substantial Stakeholders -- ►High ►High Other -- -- -- Overall -- ►High ►High Results PDO Indicators by Objectives / Outcomes Enhance power supply and energy security IN00753622 ►Generation capacity installed and commissioned (Medupi) (Megawatt, Custom) 11/11/2019 Page 6 of 11 The World Bank Implementation Status & Results Report Eskom Investment Support Project (P116410) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3,200.00 3,200.00 4,800.00 Date 31-Mar-2009 19-Feb-2019 30-Aug-2019 31-Dec-2019 IN00753623 ►Generation capacity installed and commissioned from renewable energy (Sere Wind Farm) (Megawatt, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 100.00 100.00 100.00 Date 31-Mar-2009 19-Feb-2019 30-Aug-2019 31-Dec-2019 Support longterm carbon mitigation strategy IN00753621 ►Direct CO2 emissions avoided under the project (Metric ton, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 271,000.00 347,330.00 238,000.00 Date 31-Mar-2009 19-Feb-2019 30-Aug-2019 31-Dec-2019 Intermediate Results Indicators by Components Medupi Power Plant IN00753624 ►Direct project beneficiaries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2,300,000.00 3,600,000.00 5,500,000.00 Date 31-Mar-2009 19-Feb-2019 30-Aug-2019 31-Dec-2019 IN00753627 ►Female beneficiaries (Percentage, Custom Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 50.00 50.00 50.00 50.00 IN00753628 ►Quarterly Medupi Environmental Monitoring Committee meetings held and minutes distributed. (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 31-Mar-2009 29-Mar-2019 26-Aug-2019 31-Dec-2019 IN00753631 11/11/2019 Page 7 of 11 The World Bank Implementation Status & Results Report Eskom Investment Support Project (P116410) ►Medupi construction progress rate towards completion (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 90.00 98.00 100.00 Date 31-Mar-2009 19-Feb-2019 30-Aug-2019 31-Dec-2019 IN00753633 ►Number of units synchronized (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 4.00 6.00 6.00 Date 31-Mar-2009 19-Feb-2019 30-Aug-2019 31-Dec-2019 IN00753635 ►Transmission lines completed (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 635.00 919.00 1,020.00 Date 31-Mar-2009 19-Feb-2019 30-Aug-2019 31-Dec-2019 IN00753637 ►Transmission lines progress rate towards completion (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 91.00 90.00 100.00 Date 31-Mar-2009 19-Feb-2019 30-Aug-2019 31-Dec-2019 IN00753638 ►Number of units handed over to commercial operations (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3.00 4.00 6.00 Date 31-Mar-2009 19-Feb-2019 30-Aug-2019 31-Dec-2019 Renewable energy (Sere Wind Farm and Battery Storage) IN00753625 ►Number of wind turbines erected (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 46.00 46.00 46.00 Date 31-Mar-2009 19-Feb-2019 30-Aug-2019 31-Dec-2019 IN00753630 ►Progress rate towards completion (Sere Wind Farm) (Percentage, Custom) 11/11/2019 Page 8 of 11 The World Bank Implementation Status & Results Report Eskom Investment Support Project (P116410) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 100.00 100.00 100.00 Date 31-Mar-2009 19-Feb-2019 30-Aug-2019 31-Dec-2019 Support for low carbon energy efficiency comps., comprising the Majuba Railway for coal transportation & TA prog. for energy efficie ncy IN00753626 ►Progress rate towards completion for Majuba rail project (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 90.00 97.50 100.00 Date 31-Mar-2009 19-Feb-2019 30-Aug-2019 31-Dec-2019 IN00753629 ►Number of studies for power plant efficiency improvements completed (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 7.00 7.00 7.00 Date 31-Mar-2009 19-Feb-2019 30-Aug-2019 31-Dec-2019 IN00753632 ►Project generation capacity savings (Megawatt, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2,303.00 2,303.00 3,171.00 Date 31-Mar-2009 27-Nov-2018 27-Nov-2018 31-Dec-2019 IN00753634 ►Majuba coal transportation cost (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 93.00 110.00 110.00 20.00 Date 31-Mar-2009 19-Feb-2019 30-Aug-2019 31-Dec-2018 IN00753636 ►Energy Storage Capacity Installed and Commissioned (Megawatt, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 1.00 1.00 200.00 Date 27-Nov-2018 19-Feb-2019 30-Aug-2019 31-Dec-2020 Data on Financial Performance 11/11/2019 Page 9 of 11 The World Bank Implementation Status & Results Report Eskom Investment Support Project (P116410) Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P116410 IBRD-78620 Effective USD 3,750.00 3,750.00 0.00 3,082.98 667.02 82% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P116410 IBRD-78620 Effective 08-Apr-2010 16-Apr-2010 31-May-2010 31-Oct-2015 31-Dec-2020 Cumulative Disbursements Restructuring History Level 2 Approved on 11-Dec-2014 ,Level 2 Approved on 07-Jul-2015 ,Level 2 Approved on 07-Dec-2018 Related Project(s) 11/11/2019 Page 10 of 11 The World Bank Implementation Status & Results Report Eskom Investment Support Project (P116410) There are no related projects. 11/11/2019 Page 11 of 11