Public Disclosure Copy The World Bank Implementation Status & Results Report Electricity Expansion (P103037) Electricity Expansion (P103037) AFRICA | Kenya | Global Practice | IBRD/IDA | Specific Investment Loan | FY 2010 | Seq No: 8 | ARCHIVED on 29-Jun-2015 | ISR16520 | Implementing Agencies: KENYA POWER AND LIGHTING COMPANY, Rural Electrification Authority, KENGEN, Ministry of Energy and Petroleum Key Dates Key Project Dates Board Approval date:27-May-2010 Effectiveness Date:01-Oct-2010 Planned Mid Term Review Date:01-May-2013 Actual Mid-Term Review Date:01-May-2015 Original Closing Date:30-Sep-2016 Revised Closing Date:30-Sep-2016 Project Development Objectives Project Development Objective (from Project Appraisal Document) The project has two development objectives: (a) increase the capacity, efficiency, and quality of electricity supply; and (b) expand access to electricity in urban, peri-urban, and rural areas Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Geothermal Generation:(Cost $1035.00 M) Transmission:(Cost $72.50 M) Distribution:(Cost $272.00 M) Sector Institutional Development and Operational Support:(Cost $11.50 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Moderately Satisfactory  Moderately Satisfactory Overall Implementation Progress (IP)  Moderately Satisfactory  Moderately Satisfactory Overall Risk Rating  --  Moderate 6/29/2015 Page 1 of 17 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Electricity Expansion (P103037) Implementation Status and Key Decisions Implementation of the project is delayed and consequently there is a disbusement lag. However all the investment components will be commssioned by the original closing date. The geothermal generation capacity (280MW) - one of the largest geothermal projects constructed worldwide began producing electrciity in May 2014. All 4 70MW units have passed their performance tests. The electricity produced by the units has displaced power plants that use heavy fuel oil (HFO) and therby reduced the average cost of electricity produced in Kenya. This has had positive impact on the tariff paid electricity customers whose electricity bills reduced by about 4 Ksh per kWh unit compared to what the bills would have been in the absence of the electricity produced in Olkaria. The technical assistance components have been completed successfully. The tariff study financed by the project had a major impact on the tariff review carried out by the regulator (ERC) that saw the revised 3 year tariff implemented in December 2013. The three year tariff is a necessary condition (among others) to ensure the financial sustainability of KPLC (on which the financial stability of the entire sector including the private power producers depends). The main lag is in the implementation of the transmission and distribution projects works. Land acquisition for substations and wayleaves (permissions) to construct tranmission line towers has been very difficult requiring protracted negotiations and consultations with stakeholders including lawmakers (MPs and county governments). These works coincided with the implementation of the devolved system of government that gave rise to the need for wider consultations. Although delayed by about 13 months compared to the original contractual schedule these are now progressing well in 2015. The transmission projects are scheduled to be completed by December 2015 and the distribution projects works by September, 2015. Challenges which had delayed works previously have now been largely resolved. These were: (i) delays by KPLC in acquiring land for substations sites and wayleaves for transmission and distribution lines; (ii) introduction of new taxes on the project goods; (iii) delays in obtaining tax exemptions for imported project goods; (iv) problems with project management and supervision arrangements by contractors; and (v) slow works execution by the contractors and their subcontractors. Land for all substation sites had been acquired. KPLC and KETRACO have intensified supervision of the projects and KETRACO has assigned dedicated staff to address wayleaves acquisition. The Bank intensified its supervision of the project works. As part of this the Bank team designed a monitoring tool for KPLC and REA to track implementation more rigorously against targets. The REA implemented electrifciation works are scheduled to be completed by December 2015. They are contributing to the Governement target of connecting all secondary schools to electricity by 2016. Implmentation of the slum electrification component that is associated with the GPOBA Slum Electrification Project (P125388) has improved considerably since June 2014 when the project was restructured. At the time of project restructuring, the project had achieved just over 3 thousand connections in two years. The pace of connection has accelerated almost twentyfold from about 145 connections per month before project restructuring to over 2.8 thousand per month. KPLC is now making between 3 and 3.5 thousand connections per month in slums. 6/29/2015 Page 2 of 17 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Electricity Expansion (P103037) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  --  Moderate Macroeconomic  --  --  Moderate Sector Strategies and Policies  --  --  Moderate Technical Design of Project or Program  --  --  Moderate Institutional Capacity for Implementation and Sustainability  --  --  Moderate Fiduciary  --  --  Moderate Environment and Social  --  --  Substantial Stakeholders  --  --  Moderate Other  --  --  -- Overall  --  --  Moderate Results Project Development Objective Indicators PHINDPDOTBL  People provided with access to electricity by household connections (Number, Core) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 728337.00 4785360.00 1425000.00 Date 30-Jun-2010 30-Jun-2014 30-Jun-2014 30-Sep-2016 Comments Target Exceeded PHINDPDOTBL  People provided with access to electricity by hhold connections-Grid (Number, Core Breakdown) 6/29/2015 Page 3 of 17 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Electricity Expansion (P103037) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 728337.00 4785360.00 1425000.00 Date 30-Jun-2010 30-Jun-2014 30-Jun-2014 30-Sep-2016 PHINDPDOTBL  Ppl provided wth elec. by hhold conn.–Offgrid/minigrid–Only renewable sources (Number, Core Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 0.00 Date 30-Jun-2010 30-Jun-2014 30-Jun-2014 30-Sep-2016 PHINDPDOTBL  Ppl pvd wth elec. by hhold conn.–Offgrid/minigrid–Any source except only renewable (Number, Core Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 150000.00 Date 30-Jun-2010 30-Jun-2014 30-Jun-2014 30-Sep-2016 PHINDPDOTBL  Electricity losses per year in the project area (Percentage, Core) Baseline Actual (Previous) Actual (Current) End Target Value 17.00 18.99 18.00 14.50 Date 30-Jun-2010 30-Jun-2014 30-Jun-2014 30-Sep-2016 PHINDPDOTBL  Electricity losses per year in the project area- Non-Technical (Percentage, Core Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 0.00 6/29/2015 Page 4 of 17 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Electricity Expansion (P103037) PHINDPDOTBL  Electricity losses per year in the project area- Technical (Percentage, Core Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 0.00 PHINDPDOTBL  Total net injected generation (Megawatt hour(MWh), Core Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 30.00 30.00 2020.00 PHINDPDOTBL  1. Electricity generation from renewable generation capacity constructed under the project, net (Gigawatt-hour (GWh), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 30.00 -- 2020.00 Date 30-Jun-2010 30-Jun-2014 30-Jun-2014 30-Sep-2016 Comments Comments Olkaria IV (140MW) and Olkaria I (140MW) units were successfully commissioned on various dates between September 2014 and 1st January 2015. Production in 2014 was zero against the target of 1100 GWh. However the project should meet the target for production in FY2016 as the plants have so far passed their performance tests. PHINDPDOTBL  2. Electricity losses per year in the project area (CORE) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 16.30 18.99 -- 14.70 Date 30-Jun-2009 30-Jun-2014 30-Jun-2014 30-Sep-2016 Comments Target not achieved 6/29/2015 Page 5 of 17 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Electricity Expansion (P103037) 1. This indicator has been affected by illegal tapping, power theft and extended distribution lines in the LV network where losses are higher. This indicator will be improved through enhanced meter reading coverage & accuracy, installations inspections, reduction of technical losses through network refurbishment program & minimized planned and unplanned outage time. 2. This indicator has been affected by higher transmission losses from the long routing of power from the new KenGen Kipevu III Power Station. Some mitigation of transmission losses is expected from the new unit 2 Olkaria IV 70MW plant commissioned in July 2014, 70MW Olkaria 1 unit 4 and 13.6 MW Ngong II (Gamesa) commissioned in September 2014, 6.8 MW Ngong Phase II (Gamesa),80.32MW Gulf commissioned in October 2014 and 70MW Olkaria 1 unit V commissioned in November 2014. Transmission losses are expected to return to normal at about 3.5% after completion of the Nairobi -Mombasa 400kV Line. PHINDPDOTBL  3. Average interruptions frequency per year in the project area (CORE) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 70000.00 57000.00 40525.00 51000.00 Date 30-Jun-2010 30-Jun-2014 30-Jun-2014 30-Sep-2016 Comments The indicator values are misleading due to computation issues as the data provided by KPLC are for total incidents reported by customers without any attempt to normalize the data i.e. the values are not true averages (see below). Level 2 restructuring is proposed to recalculate the values. PHINDPDOTBL  4. People provided with access to electricity in the project area (CORE) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 728337.00 4785360.00 1425000.00 Date -- 30-Jun-2014 30-Jun-2014 30-Sep-2016 Comments Target exceeded. PHINDPDOTBL  Rural offgrid conventional (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 49.50 Date 30-Jun-2010 30-Jun-2014 30-Jun-2014 30-Sep-2016 6/29/2015 Page 6 of 17 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Electricity Expansion (P103037) PHINDPDOTBL  Rural offgrid renewable (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 0.00 Date 30-Jun-2010 30-Jun-2014 30-Jun-2014 30-Sep-2016 PHINDPDOTBL  5. Direct project beneficiaries (CORE) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 728337.00 4785360.00 1425000.00 Date 30-Jun-2010 30-Jun-2014 30-Jun-2014 30-Sep-2016 Comments Target exceeded PHINDPDOTBL  Average interruption frequency per year in the project area (Number, Core) Baseline Actual (Previous) Actual (Current) End Target Value 70000.00 57000.00 40525.00 51000.00 Date 05-Aug-2013 30-Jun-2014 30-Jun-2014 30-Sep-2016 PHINDPDOTBL  Customers served in the project area (Number, Core Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 728337.00 728337.00 285000.00 Overall Comments Intermediate Results Indicators 6/29/2015 Page 7 of 17 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Electricity Expansion (P103037) PHINDIRITBL  Community electricity connections constructed under the project (Number, Core) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 5946.00 5946.00 0.00 Date 05-Aug-2013 30-Jun-2014 30-Jun-2014 30-Sep-2016 PHINDIRITBL  Community electricity connections constructed –Grid (Number, Core Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 5946.00 5946.00 450.00 Date 05-Aug-2013 30-Jun-2014 30-Jun-2014 30-Sep-2016 PHINDIRITBL  Commy elec. connection constructd–Offgrid/minigrid–Any source except only renewable (Number, Core Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 0.00 Date 05-Aug-2013 30-Jun-2014 30-Jun-2014 30-Sep-2016 PHINDIRITBL  Community elec. connections constructed–Offgrid/minigrid–Only renewable sources (Number, Core Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 0.00 Date 05-Aug-2013 30-Jun-2014 30-Jun-2014 30-Sep-2016 6/29/2015 Page 8 of 17 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Electricity Expansion (P103037) PHINDIRITBL  Distribution lines constructed or rehabilitated under the project (Kilometers, Core) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 835.00 835.00 2280.00 Date 05-Aug-2013 30-Jun-2014 30-Jun-2014 30-Sep-2016 PHINDIRITBL  Distribution lines constructed under the project (Kilometers, Core Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 835.00 4452.00 2280.00 Date 05-Aug-2013 14-Mar-2014 14-Mar-2014 30-Sep-2016 PHINDIRITBL  Distribution lines rehabilitated under the project (Kilometers, Core Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 0.00 Date 05-Aug-2013 30-Jun-2014 30-Jun-2014 30-Sep-2016 PHINDIRITBL  Transmission lines constructed or rehabilitated under the project (Kilometers, Core) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 334.00 Date 05-Aug-2013 30-Jun-2014 30-Jun-2014 30-Sep-2016 6/29/2015 Page 9 of 17 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Electricity Expansion (P103037) PHINDIRITBL  Transmission lines rehabilitated under the project (Kilometers, Core Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 0.00 Date 05-Aug-2013 30-Jun-2014 30-Jun-2014 30-Sep-2016 PHINDIRITBL  Transmission lines constructed under the project (Kilometers, Core Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 334.00 Date 05-Aug-2013 30-Jun-2014 30-Jun-2014 30-Sep-2016 PHINDIRITBL  Generation Capacity of Renewable Energy (other than hydropower) constructed (Megawatt, Core) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 70.00 280.00 280.00 Date 05-Aug-2013 30-Jun-2014 30-Jun-2014 30-Sep-2016 PHINDIRITBL  Generation Capacity of Renewable Energy constructed – Wind (Megawatt, Core Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 0.00 Date -- 30-Jun-2014 30-Jun-2014 30-Sep-2016 6/29/2015 Page 10 of 17 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Electricity Expansion (P103037) PHINDIRITBL  Generation Capacity of Renewable Energy constructed - Other (Megawatt, Core Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 70.00 70.00 0.00 Date 05-Aug-2013 30-Jun-2014 30-Jun-2014 30-Sep-2016 PHINDIRITBL  Generation Capacity of Renewable Energy constructed-Geo-thermal (Megawatt, Core Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 70.00 280.00 280.00 Date 05-Aug-2013 30-Jun-2014 30-Jun-2014 30-Sep-2016 PHINDIRITBL  Generation Capacity of Renewable Energy constructed-Solar (Megawatt, Core Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 0.00 Date 05-Aug-2013 30-Jun-2014 30-Jun-2014 30-Sep-2016 PHINDIRITBL 6. Generation capacity of renewable energy (geothermal) constructed or rehabilitated under the project (CORE) (Megawatt, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 70.00 70.00 280.00 Date 30-Jun-2010 30-Jun-2014 30-Jun-2014 30-Sep-2016 6/29/2015 Page 11 of 17 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Electricity Expansion (P103037) PHINDIRITBL  7. Transmission lines constructed or rehabilitated under the project (CORE) (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 334.00 Date 30-Jun-2010 30-Jun-2014 30-Jun-2014 30-Sep-2016 PHINDIRITBL  8. Distribution lines constructed or rehabilitated under the project (CORE) (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 835.00 4452.00 2280.00 Date -- 30-Jun-2014 30-Jun-2014 30-Sep-2016 Comments Target exceeded. PHINDIRITBL  9. Substations constructed or rehabilitated by KPLC under the project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 26.00 Date -- 30-Jun-2014 30-Jun-2014 30-Sep-2016 Comments Commencement of works at all the sites delayed because of requirement to obtain approvals from authorities such as NEMA, KeNHA and various County Governments. However, approvals were granted for most of the sites, at which Civil work’s and equipment installation is ongoing PHINDIRITBL  11. Isolated grids constructed or rehabilitated by REA under the project (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 100.00 Date -- 30-Jun-2014 30-Jun-2014 30-Jun-2016 6/29/2015 Page 12 of 17 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Electricity Expansion (P103037) PHINDIRITBL  12. Community (public facilities) electricity connections provided under the project (CORE) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 5946.00 440.00 450.00 Date -- 30-Jun-2014 30-Jun-2014 30-Sep-2016 Comments Target achieved. PHINDIRITBL  Community Center (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 5946.00 5946.00 450.00 Date -- 30-Jun-2014 30-Jun-2014 30-Sep-2016 PHINDIRITBL  Hospital (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 862.00 862.00 0.00 Date -- 30-Jun-2014 30-Jun-2014 30-Sep-2016 PHINDIRITBL  Renewable energy source (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 70.00 70.00 0.00 Date -- 30-Jun-2014 30-Jun-2014 30-Sep-2016 6/29/2015 Page 13 of 17 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Electricity Expansion (P103037) PHINDIRITBL  School (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 5084.00 5084.00 0.00 Date -- 30-Jun-2014 30-Jun-2014 30-Sep-2015 PHINDIRITBL  Renewable energy source (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 70.00 70.00 -- Date -- 30-Jun-2014 30-Jun-2014 -- PHINDIRITBL  Trading Centers (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 862.00 862.00 0.00 Date -- 30-Jun-2014 30-Jun-2014 30-Sep-2016 PHINDIRITBL  Renewable energy source (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 70.00 70.00 0.00 Date -- 30-Jun-2014 30-Jun-2014 30-Sep-2016 6/29/2015 Page 14 of 17 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Electricity Expansion (P103037) PHINDIRITBL  13. Business electricity connections provided under the project (CORE) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 23000.00 6596.00 15000.00 Date -- 30-Jun-2014 30-Jun-2014 30-Sep-2016 Comments Target exceeded. PHINDIRITBL  Enterprises (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 23000.00 23000.00 0.00 Date -- 30-Jun-2014 30-Jun-2014 30-Sep-2016 PHINDIRITBL  Agribusiness (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 23000.00 23000.00 0.00 Date -- 30-Jun-2014 30-Jun-2014 30-Sep-2016 PHINDIRITBL  14. Roadmap for implementation of the wholesale electricity market is adopted by MoE (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N Y Y Date -- 30-Jun-2014 30-Jun-2014 30-Sep-2016 Comments Power Market Study completed in August, 2012 6/29/2015 Page 15 of 17 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Electricity Expansion (P103037) PHINDIRITBL  15. Rural Electrification Master Plan (REMP) annually updated (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N Y Y Date -- 30-Jun-2014 30-Jun-2014 30-Sep-2016 Comments Updated report on electrification status of public facilities produced PHINDIRITBL  16. Cost of service study completed one year before 2014 tariff review is launched (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N Y Y Y Date -- 30-Jun-2014 30-Jun-2014 30-Sep-2016 Overall Comments Completed in November 2012 Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P103037 IDA-47430 Effective XDR 217.40 217.40 0.00 170.20 47.20 78% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P103037 IDA-47430 Effective 27-May-2010 05-Jul-2010 01-Oct-2010 30-Sep-2016 30-Sep-2016 Cumulative Disbursements 6/29/2015 Page 16 of 17 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Electricity Expansion (P103037) Restructuring History Level 2 Approved on 22-May-2013 ,Level 2 Approved on 30-May-2014 Related Project(s) P153179-Additional Financing: Kenya Electricity Expansion Project 6/29/2015 Page 17 of 17 Public Disclosure Copy