The World Bank Report No: ISR15318 Implementation Status & Results Solomon Islands Solomon Islands Sustainable Energy (P100311) Public Disclosure Copy Operation Name: Solomon Islands Sustainable Energy (P100311) Project Stage: Implementation Seq.No: 7 Status: ARCHIVED Archive Date: 07-Jul-2014 Country: Solomon Islands Approval FY: 2009 Product Line: IBRD/IDA Region: EAST ASIA AND PACIFIC Lending Instrument: Specific Investment Loan Implementing Agency(ies): Solomon Islands Electricity Authority Key Dates Board Approval Date 08-Jul-2008 Original Closing Date 30-Dec-2012 Planned Mid Term Review Date Last Archived ISR Date 01-Oct-2013 Effectiveness Date 25-Jun-2009 Revised Closing Date 30-Jun-2017 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) The objective of the project is to improve operational efficiency, system reliability and financial sustainability of SIEA through: improved financial and operational management, reduction of losses, and increased revenue collection. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Strengthening Management 1.59 Financial Operations 0.57 Technical Operations 2.15 Contingency 0.00 Overall Ratings Public Disclosure Copy Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status Overview The project closing date was extended to June 30, 2017 as part of the World Bank Board's March 21, 2014 approval of $13 million in additional financing. Along with the Additional Financing, a Level 1 restructuring of SISEP was approved to modify the Project Development Objective, safeguards category (due to triggering environmental safeguard OP4.01), results indicators, and closing date to reflect the proposed additional activities to be supported by the Additional Financing (AF). The revised Development Objective is: to improve Page 1 of 6 The World Bank Report No: ISR15318 operational efficiency, system reliability and financial sustainability of the Solomon Islands Electricity Authority (SIEA). The AF is to scale up SISEP by supporting distribution network upgrades in the capital city, Honiara, and to provide technical assistance to complement the proposed physical investments. Locations Public Disclosure Copy Country First Administrative Division Location Planned Actual Solomon Islands Not Entered Solomon Islands Solomon Islands Not Entered Panatina Solomon Islands Guadalcanal Province Honiara Solomon Islands Guadalcanal Province Guadalcanal Province Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target SIEA will operate profitably Text Value Loss SB$44 million Audited net profit SB$46.3 Profit SB$45million million for year ending 31 Dec 2013. Date 31-Dec-2007 31-Dec-2013 30-Jun-2014 Comments SIEA maintained profitable operations in 2013. That represents an 8.1% annual return on the SIEA's Equity (SB$571.2 million). Quarterly financial management reports, and Text Value None 4 4 rolling projections for SIEA performance within Date 31-Dec-2007 31-Mar-2014 30-Jun-2014 14 days after end of each quarter. Comments These figures are prepared monthly and submitted to each Board meeting. Public Disclosure Copy Number of days between due date of tariff, and Text Value 1 year 20 15 days if not paid , notice of arrear Date 31-Dec-2007 31-Mar-2014 30-Jun-2014 Comments SIEA's current practiceis to issue reminders with follow up calls 8 days after the invoice is issued. Generator efficiency improved Text Value Lungga 06 (L06) 00% Lungga Lungga 06 (L06) 80% Lungga Lungga 06 (L06) 85% Lungga 08 (L08) 55% Lungga 10 08 (L08) 75% Lungga 10 08 (L08) 85% Lungga 10 (L10) 40% (L10) 90% (L10) 85% Date 31-Dec-2007 31-Mar-2014 30-Jun-2014 Page 2 of 6 The World Bank Report No: ISR15318 Comments Three of the four generators were below their 2013 targets. Revenue per kWh generated Text Value SB$1.39/kWh SB$5.43/KWh SB$3.00/kWh Public Disclosure Copy Date 31-Dec-2007 31-Dec-2013 30-Jun-2014 Comments The average for 2013 was $5.43 per KWh. The average for Jan & Feb 2014 is $5.92. This indicator is to be dropped under the new results framework arising from the Additional Financing. System Average Interruption Duration Index Text Value 51,840 minutes 5,832 minutes 25,920 minutes (SAIDI) Date 31-Dec-2007 31-Dec-2013 30-Jun-2014 Comments The annual total length of Improvements in available The indicator was amended to time that a customer is generation and reserve more accurately represent without power Honiara capacity in 2013 contributed SAIDI by its base unit of covering all planned and to reductions in SAIDI measurement. The end target unplanned outages. compared to 2012. The of 25,920 minutes represents commissioning of 2x1.5MW of the total length of time that a generation at Honiara PS customer is without power in during 2013 contributed to Honiara, covering unplanned this, as did improved water and planned outages. softening and new radiators forgenerators at the main Lungga power station. System Average Interruption Frequency Index Text Value 816 96 360 (SAIFI) Date 31-Dec-2007 31-Dec-2013 30-Jun-2014 Comments The total number of times in a Reductions in the annual The indicator was amended to calender year that a customer frequency of power more accurately represent can expect to experience an interruptions were largely SAIFI by the base unit of interruption in power supply reflective of increased reserve measurement across a 12 capacity and the fact that the month period. Public Disclosure Copy 2x1.5MW generators at Honiara PS can help meet load in the Honiara CBD. System losses Text Value 21% 16% 12% Date 31-Dec-2007 31-Dec-2013 30-Jun-2014 Comments System losses were 16% for 2013. The average for the Jan & Feb 2014 is 14.2%. Number of prepaid meters installed Text Value 487 11,113 9000 Page 3 of 6 The World Bank Report No: ISR15318 Date 31-Dec-2007 31-Mar-2014 31-Dec-2011 Comments 11,113 prepaid meters were installed, as at 31st March Public Disclosure Copy 2014, in commercial and residential premises. Average number of debtor days to collect billed Text Value 360 days 48.2 days 30 days revenue Date 31-Dec-2007 31-Mar-2014 30-Jun-2014 Comments The average was 56.60 for 2013. For the first quarter 2014, they are 48.2. Collection ratio Text Value 72% 106% 90% Date 31-Dec-2007 31-Mar-2014 30-Jun-2014 Comments The collection ratio for the first quarter 2014 is 106% reflecting recent activity to collect bad debts. Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Financial - Net profit before tax Text Value Loss SB$44 million Audited profit SB$46.3 million Profit SB$45 million for year ending 31 Dec Date 31-Dec-2007 31-Dec-2013 30-Jun-2014 Comments SIEA maintained profitable operations in 2013. That represents an 8.1% annual return on the SIEA's Equity (SB$571.2 million). Financial - Revenue collected (cash) per kWh Text Value SB$1.39/kWh SB$5.43/KWh SB$3.00/kWh generated Date 31-Dec-2007 31-Dec-2013 30-Jun-2014 Comments The average for 2013 was Public Disclosure Copy $5.43 per KWh. The average for Jan & Feb 2014 is $5.92. This indicator is to be dropped under the new results framework arising from the Additional Financing. Improved System Performance on Text Value 51,840 minutes 5832 minutes 25,920 minutes Gualdalcanal - SAIDI Date 31-Dec-2007 31-Dec-2013 31-Dec-2011 Page 4 of 6 The World Bank Report No: ISR15318 Comments The annual total length of Improvements in available The indicator was amended to time that a customer is generation and reserve more accurately represent without power Honiara capacity in 2013 contributed SAIDI by its base unit of covering all planned and to reductions in SAIDI measurement. The end target Public Disclosure Copy unplanned outages. compared to 2012. The of 25,920 minutes represents commissioning of 2x1.5MW of the total length of time that a generation at Honiara PS customer is without power in during 2013 contributed to Honiara, covering unplanned this, as did improved water and planned outages. softening and new radiators forgenerators at the main Lungga power station. Improved System Performance on Text Value 816 96 360 Gualdalcanal - SAIFI Date 31-Dec-2007 31-Dec-2013 31-Dec-2011 Comments The total number of times in a Reductions in the annual The indicator was amended to calender year that a customer frequency of power more accurately represent can expect to experience an interruptions were largely SAIFI by the base unit of interruption in power supply reflective of increased reserve measurement across a 12 capacity and the fact that the month period. 2x1.5MW generators at Honiara PS can help meet load in the Honiara CBD. Data on Financial Performance (as of 01-May-2014) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P100311 IDA-53790 Not Effective 21-Mar-2014 01-Apr-2014 30-Jun-2017 30-Jun-2017 P100311 IDA-H4150 Effective 08-Jul-2008 28-Jul-2008 25-Jun-2009 30-Dec-2012 30-Jun-2017 P100311 IDA-H9130 Not Effective 21-Mar-2014 01-Apr-2014 30-Jun-2017 30-Jun-2017 Disbursements (in Millions) Public Disclosure Copy Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P100311 IDA-53790 Not Effective XDR 7.20 7.20 0.00 0.00 7.20 0.00 P100311 IDA-H4150 Effective XDR 2.50 2.50 0.00 2.49 0.01 100.00 P100311 IDA-H9130 Not Effective XDR 1.40 1.40 0.00 0.00 1.40 0.00 Disbursement Graph Page 5 of 6 The World Bank Report No: ISR15318 Public Disclosure Copy Key Decisions Regarding Implementation Additional Financing of $13 million was approved by the World Bank Board on March 21, 2014. The Additional Financing comprises US$11 million in IDA credit and $2 million in IDA grant; with the vast bulk of that going towards capital expenditures in generation and transmission/distribution network rehabilitation and reinforcement. As part of the Additional Financing, the project closing date was extended to June 30, 2017 and the project's safeguards classification raised from category C to B. The condition of effectiveness for this new financing is the signing of the Supplementary Loan Agreement by June 30, 2014. Restructuring History Level two Approved on 22-Mar-2012 Related Projects P122937-SB Development of Community Based Renewable Energy, P146816-Solomon Islands Sustainable Energy, Additional Financing Public Disclosure Copy Page 6 of 6