The World Bank Implementation Status & Results Report Distribution Grid Modernization and Loss Reduction Project (P147277) Distribution Grid Modernization and Loss Reduction Project (P147277) LATIN AMERICA AND CARIBBEAN | Dominican Republic | Energy & Extractives Global Practice | IBRD/IDA | Investment Project Financing | FY 2016 | Seq No: 8 | ARCHIVED on 23-Dec-2019 | ISR39047 | Implementing Agencies: DOMINICAN REPUBLIC, CDEEE, SIE Key Dates Key Project Dates Bank Approval Date: 15-Dec-2015 Effectiveness Date: 27-Jan-2017 Planned Mid Term Review Date: 23-Oct-2019 Actual Mid-Term Review Date: 07-Oct-2019 Original Closing Date: 31-Dec-2020 Revised Closing Date: 31-Dec-2020 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective is to improve the financial viability of the electricity distribution companies (EDEs) by reducing energy losses and increasing revenue collections in the circuits rehabilitated under the project and consequently increase the supply of electricity. . Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Rehabilitation of Selected Distribution Circuits and Upgrading of Metering Systems - Implementation of Environmental Management System:(Cost $103.63 M) Citizen Engagement and Community Participation:(Cost $4.56 M) Commercial Management and Project Management, Monitoring and Evaluation of the Distribution Grid Modernization and Electrical Losses Reduction Program:(Cost $11.20 M) Complementary Tariff Study:(Cost $0.35 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Moderate Moderate Implementation Status and Key Decisions The project is under full implementation and the development objectives are likely to be met. Rehabilitation works on circuits (18) under Component 1 for all EDEs have started. One (1) 24 hour service circuit has been completed in the North of the country by EDE Norte. The remaining 17 circuits are expected to be completed before December 31, 2020. 12/23/2019 Page 1 of 6 The World Bank Implementation Status & Results Report Distribution Grid Modernization and Loss Reduction Project (P147277) Contracts for the construction of three (3) 'Puntos Verdes' for storage of waste generated by works from the project are likely to be signed by the end of this year/early next year. It should be noted that 15 Social Compacts (out of 18) have been signed between the EDEs and the communities to reflect agreements reached on the number of hours of electricity that the EDEs will deliver per day and the legalization of illegal users and payment of the electricity bills by the clients. The remaining three (3) are likely to be signed in the first quarter of 2020. The Complementary Tariff Study under Component 4 has been completed and revisions to the study have been made to include the impact of the Punta Catalina power plant on tariffs. Plans are to present the revised study to the President. In addition, a workshop to disseminate the results and recommendations of the study is also being planned. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Moderate Moderate Moderate Macroeconomic Low Low Low Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program Low Low Low Institutional Capacity for Implementation and Sustainability Substantial Substantial Substantial Fiduciary Moderate Moderate Moderate Environment and Social Moderate Low Low Stakeholders Moderate Moderate Moderate Other Moderate Moderate Moderate Overall Moderate Moderate Moderate Results PDO Indicators by Objectives / Outcomes To improve the financial viability of the electricity distribution companies (EDEs) IN00758706 ►Increase of Cost Recovery Index (CRI) at the rehabilitated circuits of each EDE. (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 59.00 59.00 60.50 83.60 Date 01-Jun-2016 20-May-2019 20-Dec-2019 31-Dec-2020 Rehabilitation Works under Component 1 for 18 circuits is under implementation and progressing Comments: well. One circuit has already been completed in Ede Norte. 12/23/2019 Page 2 of 6 The World Bank Implementation Status & Results Report Distribution Grid Modernization and Loss Reduction Project (P147277) To increase the supply of electricity in the rehabilitated circuits. IN00758707 ►Increase of the Average Service Availability Index (ASAI) in the rehabilitated circuits. (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 71.30 71.30 72.00 95.90 Date 20-May-2019 20-May-2019 20-Dec-2019 31-Dec-2020 Rehabilitation Works under Component 1 for 18 circuits is under implementation and progressing Comments: well. One circuit has already been completed in Ede Norte. Intermediate Results Indicators by Components Rehabilitation of Selected Distribution Circuits and Upgrading of Metering Systems - Implementation of Environmental Management System IN00758708 ►Increase of the Energy Recovery Index (ERI) at the rehabilitated circuits of each EDE. (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 58.70 58.70 58.10 83.10 Date 01-Jun-2016 20-May-2019 20-Dec-2019 31-Dec-2020 Rehabilitation Works under Component 1 for 18 circuits is under implementation and progressing Comments: well. One circuit has already been completed in Ede Norte. IN00758712 ►Number of kms of rehabilitated distribution networks. (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 38.50 348.00 1,003.00 Date 01-Jun-2016 20-May-2019 20-Dec-2019 31-Dec-2020 Rehabilitation Works under Component 1 for 18 circuits is under implementation and progressing Comments: well. One circuit has already been completed in Ede Norte. IN00758714 ►Number of ‘remotely metered’ clients at the EDEs (thousands). (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 16.95 138.10 Date 01-Jun-2016 20-May-2019 20-Dec-2019 31-Dec-2020 IN00758715 ►Development of an integrated environmental management system among the 3 EDEs and CDEEE (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 1.00 12/23/2019 Page 3 of 6 The World Bank Implementation Status & Results Report Distribution Grid Modernization and Loss Reduction Project (P147277) Date 01-Jun-2016 20-May-2019 20-Dec-2019 31-Dec-2020 Agreement has been reached on an Environmental Policy as a first step to the Environmental Comments: Management System to be developed under the Bank Project. Development is still work in progress. Citizen Engagement and Community Participation IN00758709 ►Number of ‘Social Compacts’ signed with the communities. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 15.00 18.00 Date 01-Jun-2016 20-May-2019 20-Dec-2019 31-Dec-2020 Rehabilitation Works under Component 1 for 18 circuits is under implementation and progressing well, therefore Social Compacts are being signed. The remaining three (3) Social Compacts are likely to be Comments: signed by the first quarter of 2020. Commercial Management and Project Management, Monitoring and Evaluation of the Distribution Grid Modernization and Electrical Losses Reduction Program IN00758710 ►Number of illegal users converted to legitimate paying clients (thousands). (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 6.13 73.55 Date 01-Jun-2016 20-May-2019 20-Dec-2019 31-Dec-2020 Rehabilitation Works under Component 1 for 18 circuits is under implementation and progressing Comments: well. One circuit has already been completed in Ede Norte. IN00758713 ►Installation of IT Data Center. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 1.00 Date 01-Jun-2016 20-May-2019 20-Dec-2019 31-Dec-2020 The IT Data Center has not been installed yet. The process for acquisition of equipment for the Data Center will be initiated in January 2020 due to delays in construction of the building where the equipment Comments: will be installed. Complementary Tariff Study IN00758711 ►Complementary Tariff Study (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 1.00 1.00 Date 01-Jun-2016 20-May-2019 20-Dec-2019 31-Dec-2020 12/23/2019 Page 4 of 6 The World Bank Implementation Status & Results Report Distribution Grid Modernization and Loss Reduction Project (P147277) The study has been completed. SIE has revised the original study to include the impact of the Punta Catalina power plant on the rates. The next steps are that (i) a working session be held with a World Bank expert and the SIE first to impart knowledge on international best practices and determine ways in Comments: which such practices can be aligned to the tariff reform in the Dominican Republic; and, (ii) a date will be agreed upon for a workshop to disseminate the results and recommendations of the study to the Government and stakeholders in the energy sector. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P147277 IBRD-85630 Effective USD 120.00 120.00 0.00 54.98 65.02 46% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P147277 IBRD-85630 Effective 15-Dec-2015 29-Dec-2015 27-Jan-2017 31-Dec-2020 31-Dec-2020 Cumulative Disbursements 12/23/2019 Page 5 of 6 The World Bank Implementation Status & Results Report Distribution Grid Modernization and Loss Reduction Project (P147277) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 12/23/2019 Page 6 of 6