The World Bank Report No: ISR9929 Implementation Status & Results Zambia Zm: Increased Access to Electricity (P077452) Public Disclosure Copy Operation Name: Zm: Increased Access to Electricity (P077452) Project Stage: Implementation Seq.No: 8 Status: ARCHIVED Archive Date: 12-Apr-2013 Country: Zambia Approval FY: 2008 Product Line: IBRD/IDA Region: AFRICA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 20-May-2008 Original Closing Date 31-Dec-2013 Planned Mid Term Review Date 30-Apr-2012 Last Archived ISR Date 30-Jun-2012 Effectiveness Date 19-Feb-2009 Revised Closing Date 31-Dec-2013 Actual Mid Term Review Date 20-Apr-2012 Project Development Objectives Zm: Increased Access to Electricity (P077452) Project Development Objective (from Project Appraisal Document) The objective of this project is to increase access to electricity services and improve efficiency and quality of the electricity distribution system in targeted areas. Has the Project Development Objective been changed since Board Approval of the Program? Yes No Zm: Increased Access to Electricity & ICT Services - GEF (P076320) Global Environmental Objective (from Project Appraisal Document) The project global environmental objective, in line with GEF Operational Program No. 6, is to remove barriers to renewable energy technologies to help mitigate greenhouse gas emissions. Has the Global Environmental Objective been changed since Board Approval of the Program? Yes No Component(s) Public Disclosure Copy Component Name Component Cost ZESCO Efficiency Improvement 22.00 Access Expansion 33.00 Technical Assistance 5.50 Additional Financing: Upgrading of Kanyama and Livingstone Substations 12.00 Additional Financing: Connecting Households to Electricity 0.00 Overall Ratings Page 1 of 5 The World Bank Report No: ISR9929 Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Progress towards achievement of GEO Moderately Satisfactory Moderately Satisfactory Public Disclosure Copy Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status Overview Implementation has continued to improve steadily. ZESCO has made substantial progress in signing of major procurement contracts and the few remaining ones are expected to be signed in March-April, 2013. The Rural Electrification Authority (REA) has progressed with the implementation of three Sustainable Solar Market Packages (SSMPs), and 53 rural schools and 11 health centers along with 199 staff housing have been electrified by solar PV systems. However, the mini-hydro component has moved very little, and the Bank team has agreed with the Government, ZESCO and REA to restructure the project to improve performance. The restructuring will also include re-allocation of about US$5.2 million from the Lusaka and Livingstone substation upgrade allocations (which were successfully contracted out at a lower cost than originally expected) to the grid reinforcement sub- component, and an 18 month extension of the project closing date to ensure that all on-going activities under existing and pending contracts can be completed successfully. ZESCO and REA staff received Procurement, financial management, and project management training to improve their performance. Locations Country First Administrative Division Location Planned Actual Zambia Northern Province Northern Province Zambia Lusaka Province Lusaka Province Zambia Lusaka Province Lusaka Zambia Eastern Province Eastern Province Zambia Copperbelt Copperbelt Province Zambia Central Province Central Province Results Public Disclosure Copy Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Increased access rate. Text Value 20% 23% 24% Date 01-May-2008 28-Feb-2013 31-Dec-2013 Comments Based on ZESCO data. Global Environmental Objective Indicators Page 2 of 5 The World Bank Report No: ISR9929 Indicator Name Core Unit of Measure Baseline Current End Target Installed capacity of renewable energy systems Text Value 1.3 0. 5.3 (MW). Date 01-May-2008 28-Feb-2013 31-Dec-2013 Public Disclosure Copy Comments No additional capacity added by the project yet. Reduced tonnes of CO2 emmissions. Text Value 0 0. 20,000 Date 01-May-2008 28-Feb-2013 31-Dec-2013 Comments No reduction under the project yet. Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Number of connections through intensification. Text Value 0. 4,200 31,000 Date 01-May-2008 28-Feb-2013 31-Dec-2013 Comments 4,200 new customers are connected directly under the project. Number of connections through grid extension. Text Value 0. TBD 18,000 Date 01-May-2008 28-Feb-2013 31-Dec-2013 Comments Update pending (ZESCO) Number of connections through new mini- Text Value 0. 0. 6000 hydro. Date 01-May-2008 30-Apr-2012 31-Dec-2013 Comments no mini hydros completed yet. Number of connections through solar home Text Value 0. 199 10,000 systems. Date 01-May-2008 28-Feb-2013 31-Dec-2013 Comments Update pending (REA). The original target is highly unrealistic since the systems Public Disclosure Copy are very expensive for rural customers. Number of institutional solar PV systems. Text Value 200 264 450 Date 01-May-2008 28-Feb-2013 31-Dec-2013 Comments Further update pending (REA) Number of CFLs installed by the project. Text Value 0. 800,000 1,000,000 Date 01-May-2008 28-Feb-2013 31-Dec-2013 Page 3 of 5 The World Bank Report No: ISR9929 Comments Distribution in progress. Update pending (ZESCO) New customers connected under the Number Value 0.00 4200.00 50000.00 Public Disclosure Copy Connection Fee Subsidy program Date 30-Sep-2010 28-Feb-2013 31-Dec-2013 Comments Work in progress in project target areas Kanyama and Livingstone Substations Yes/No Value No No Yes Completed Date 30-Sep-2010 28-Feb-2013 Comments Contracts signed, work in progress Data on Financial Performance (as of 27-Feb-2013) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P077452 IDA-44460 Effective 20-May-2008 21-Oct-2008 19-Feb-2009 31-Dec-2013 31-Dec-2013 P077452 IDA-47920 Effective 22-Sep-2010 13-Dec-2010 28-Mar-2011 31-Dec-2013 31-Dec-2013 P077452 TF-92315 Effective 21-Oct-2008 21-Oct-2008 19-Feb-2009 31-Dec-2013 31-Dec-2013 P077452 TF-97260 Effective 13-Dec-2010 13-Dec-2010 06-Jun-2011 30-Jun-2013 30-Jun-2013 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P077452 IDA-44460 Effective USD 33.00 33.00 0.00 6.87 24.12 21.00 P077452 IDA-47920 Effective USD 20.00 20.00 0.00 2.17 18.45 11.00 P077452 TF-92315 Effective USD 4.50 4.50 0.00 1.06 3.44 24.00 P077452 TF-97260 Effective USD 13.54 12.48 0.00 2.02 10.43 16.00 Disbursement Graph Public Disclosure Copy Page 4 of 5 The World Bank Report No: ISR9929 Public Disclosure Copy Key Decisions Regarding Implementation Implementation has been steadily improving and is expected to gain further momentum during CY13. The Government of Zambia has request an 18 month extension of the project closing date from December 31, 2013 to June 30, 2015. Restructuring History There has been no restructuring to date. Related Projects P076320-Zm: Increased Access to Electricity & ICT Services - GEF, P121325-Additional Financing for Zambia Increased Access to Electricity Services Project Public Disclosure Copy Page 5 of 5