The World Bank Implementation Status & Results Report TZ-Rural Electrification Expansion Program (P153781) TZ-Rural Electrification Expansion Program (P153781) AFRICA | Tanzania | Energy & Extractives Global Practice | Requesting Unit: AFCE1 | Responsible Unit: GEE01 IBRD/IDA | Program-for-Results | FY 2016 | Team Leader(s): Richard H. Hosier, Kabir Malik Seq No: 3 | ARCHIVED on 25-Jun-2018 | ISR29822 | Created by: Farah Mohammadzadeh on 03-Oct-2017 | Modified by: Kabir Malik on 20-Jun-2018 Program Development Objectives Program Development Objective (from Program Appraisal Document) The Project Development Objectives are (a) to increase access to electricity in rural areas; and (b) to scale up the supply of renewable energy in rural areas while strengthening sector institutional capacity. Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Implementation Status and Key Decisions REA continues to make progress in the implementation of the on-grid component and towards achievement of the PDO. REA has (i) successfully completed the withdrawal of the project advance amounting to 25 per cent of project funds; (ii) completed on-grid connections eligible under DLI 1 – which are yet to be verified (iii) signed 27 out of 29 contracts for electrification works under REA 3 Round 1 and detailed design studies are being finalized with construction works expected to start soon in some areas; (iv) are progressing on the pre-feasibility and bidding document preparation for REA-3 round 2; and (v) has completed an MoU with the Tanzania Investment bank – Development for managing the Small Power Producer Credit Line (SPP-CL) and the Renewable Energy Companies-Credit Line (REC-CL) under the project. However, limited progress has been made in implementing the Program Action Plan, including the preparation of the procedural manual which includes the documentation of the Grievance Redress Mechanism and other Safeguard procedures.The Program Action Plan is meant to strengthen REA’s capacity to efficiently and effectively implement the rural electrification program. REA is working with TANESCO to finalize the Procedural Manual and is also expected to complete the stakeholder engagement plan by July. Other items on the Action plan, include the hiring of the program management consultant (PMC) and the meeting of the Program Steering Committee. The procurement of the PMC is in process and is expected to be completed in July; the Program Steering Committee met in March 26, 2018. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P153781 IDA-58940 Effective USD 200.00 200.00 0.00 49.55 148.64 25% P153781 TF-A2502 Effective USD 9.00 9.00 0.00 2.25 6.75 25% Key Dates (by loan) 6/25/2018 Page 1 of 10 The World Bank Implementation Status & Results Report TZ-Rural Electrification Expansion Program (P153781) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date Program Action Plan Preparation of a Rural Electrification Master Plan to strengthen the planning and coordination capacity of the sector Action Description institutions is underway. Responsibility Recurrent Frequency Due Date DLI# Status No DLI 4: Annual capacity building and REA 30-Jun-2018 In Progress project preparation activities completed The Rural Electrification Master Plan is in preparation by REA and the consultant (Multiconsult) presented interim Comments results to REA, TANESCO, World Bank, and other stakeholders Action Description Apply standard technical specifications and bid evaluation criteria Responsibility Recurrent Frequency Due Date DLI# Status Yes DLI 4: Annual capacity building and REA, TANESCO CONTINUOUS In Progress project preparation activities completed Comments Action Description Deployment of REA and or TANESCO staff to the regional level Responsibility Recurrent Frequency Due Date DLI# Status REA Yes CONTINUOUS In Progress The mission was informed that TANESCO has agreed to dedicate engineers in 25 regional offices to supervise the Comments works under REA 3, Round 1. The respective district manager for TANESCO will also assist in regular supervision visits to project work site Staffing of the PMU, Directorate of Technical Services, and IAU ‐ recruit/appoint qualified and experienced staff to fill Action Description the gap in the two units or outsource the functions Responsibility Recurrent Frequency Due Date DLI# Status No DLI 4: Annual capacity building and REA 21-Jun-2017 Delayed project preparation activities completed To date, the World Bank was informed that REA has issued the advertisement for 29 engineers to be hired who will be Comments in charge of technical services. . 6/25/2018 Page 2 of 10 The World Bank Implementation Status & Results Report TZ-Rural Electrification Expansion Program (P153781) Procurement training ‐ trainings on preparation of bidding documents and request for proposal for large packages; Action Description evaluation of bids/proposals for large packages; and contract management Responsibility Recurrent Frequency Due Date DLI# Status No DLI 4: Annual capacity building and REA 17-Mar-2018 Delayed project preparation activities completed Comments Action Description Establish records keeping management system Responsibility Recurrent Frequency Due Date DLI# Status REA Yes CONTINUOUS In Progress Comments Action Description Establish system for timely disbursement of funds to the REA to meet its contractual obligations Responsibility Recurrent Frequency Due Date DLI# Status MoF No 17-Mar-2018 Delayed Comments Strengthen capacity for ESIA: (a) a strategic ESIA for development of renewable energy; (b) an ESIA consultant Action Description qualification system at the REA; (c) training for ESIA consultants, implemented by REA and NEMC; (d) dedicated staff for processing at NEMC Responsibility Recurrent Frequency Due Date DLI# Status REA No 30-Jun-2019 In Progress REA will update the consultant qualification system it already has in place; NEMC has signed the agreement for Comments training and is awaiting REA's counter-signature. (This was due by March 2018). strengthen capacity for monitoring, and enforcement: (a) adding staff and equipment to the REA’s E&S unit; (b) place Action Description env. staff in TANESCO’s zonal offices to support district office supervision of grid‐extension projects;(c) EMO training program Responsibility Recurrent Frequency Due Date DLI# Status REA/TANESCO/NEMC No 17-Mar-2018 Delayed Comments REA has been relying mainly on NEMC-administered training for District Environmental Management Officers. 6/25/2018 Page 3 of 10 The World Bank Implementation Status & Results Report TZ-Rural Electrification Expansion Program (P153781) However, REA is delayed in the hiring of a social safeguards specialist for in-house support. Strengthen the REA’s capacity for informing and consulting with all stakeholders, including district and local Action Description Governments through formulation and adoption of a Stakeholder Engagement Plan, and administer training in its application Responsibility Recurrent Frequency Due Date DLI# Status REA No 17-Nov-2017 Delayed Comments The World Bank was informed that the Plan is almost complete and will be shared shortly. Action Description Prepare a detailed REA procedural manual Responsibility Recurrent Frequency Due Date DLI# Status REA No 17-Mar-2018 Delayed A stakeholder consultation was scheduled on June 11th, but had to be postponed to June 25th due to lack of Comments attendance. REA is finalizing the procedural manual in collaboration with TANESCO but has yet to submit it to the World Bank. Action Description Monitoring and annual reporting by the REA on social and environmental performance Responsibility Recurrent Frequency Due Date DLI# Status REA No 30-Jul-2018 Revised Date Comments REA will submit the report by July 30, 2018, to cover the previous financial year. Action Description Project Management Consultant will be hired by REA Responsibility Recurrent Frequency Due Date DLI# Status REA No 31-Jul-2017 Delayed Under REA 3 Round1 they will use TANESCO field staff for supervision and monitoring along with the TRAG. The Comments PMC is expected to come on board and take over supervision for REA 3 Round2. RfP stage is on-going and the PMC is expected by July 2018. PS MoFP will set up a Project Steering Committee to monitor TANESCO payments to SPPs. TANESCO will report to Action Description the Project Steering Committee, chaired by PS MoFP, and to the Association on a quarterly basis Responsibility Recurrent Frequency Due Date DLI# Status TANESCO/MOFP No 19-Jun-2017 Completed Comments The Project Steering Committee has met for the first time on May 26, 2018. The minutes of the meeting will be shared. The SPP payments issue remains unsolved but the team continues to work closely with the government to resolve the 6/25/2018 Page 4 of 10 The World Bank Implementation Status & Results Report TZ-Rural Electrification Expansion Program (P153781) SPP arrears. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Substantial Substantial Macroeconomic Moderate Moderate Moderate Sector Strategies and Policies Substantial Substantial Substantial Technical Design of Project or Program Substantial Substantial Substantial Institutional Capacity for Implementation and Sustainability Substantial Substantial Substantial Fiduciary Substantial Substantial Substantial Environment and Social Low Low Moderate Stakeholders Moderate Moderate Moderate Other Substantial Substantial Substantial Overall Substantial Substantial Substantial RiskComments Comments The environmental and social risk has risen from Low to Moderate due to continuing delays in finalizing the safeguard related documents, procedures and capacity additions. Especially, the Procedures Manual and adding safeguards staff at REA.The WB team has been informed that all documents are near a state of completion and a public consultation workshop is now scheduled for June 25th. The WB expects to receive the draft documents for review soon and will follow-up closely during the next mission. Results PDO Indicators by Objectives / Outcomes Increase access to electricity in rural areas; and scale up the supply of renewable energy ►PDO Indicator 1: People provided with access to electricity under the Program by household connections (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 280,425.00 2,500,000.00 Date 30-Jan-2017 03-Aug-2017 01-Jun-2018 30-Jun-2022 ►PDO Indicator 2: Non-residential connections implemented under the Program (Number, Custom) 6/25/2018 Page 5 of 10 The World Bank Implementation Status & Results Report TZ-Rural Electrification Expansion Program (P153781) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 3,664.00 30,000.00 Date 09-Mar-2018 03-Aug-2017 01-Jun-2018 30-Jun-2022 ►PDO Indicator 3: Generation Capacity of Renewable Energy Constructed Under the Program (Megawatt, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 17.00 Date 30-Jan-2017 03-Aug-2017 01-Jun-2018 30-Jun-2022 ►PDO Indicator 4: People provided with access to electricity via off-grid supplies under the Program (SPP and renewables, including solar PV) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 310,000.00 Date 30-Jan-2017 03-Aug-2017 01-Jun-2018 30-Jun-2022 ►PDO Indicator 5: Capacity for delivery of energy access and renewable energy generation strengthened (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N N Y Date 30-Jan-2017 03-Aug-2017 01-Jun-2018 30-Jun-2022 Intermediate Results Indicators by Results Areas Expanding Rural Access to Electricity ►IR Indicator 1.1: Cumulative number of grid electricity connections, including those under mini-grids, made under the program (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 59,836.00 500,000.00 Date 30-Jan-2017 03-Aug-2017 01-Jun-2018 31-Jul-2022 ►IR Indicator 1.2: Transmission and distribution lines constructed or rehabilitated under the program (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 24,000.00 6/25/2018 Page 6 of 10 The World Bank Implementation Status & Results Report TZ-Rural Electrification Expansion Program (P153781) Date 30-Jan-2017 03-Aug-2017 01-Jun-2018 31-Jul-2022 ►IR Indicator 1.3: Households connected to the grid that are female-headed (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 24.00 24.00 17.40 24.00 Date 30-Jan-2017 03-Aug-2017 01-Jun-2018 31-Jul-2022 ►IR Indicator 2.1: Educational facilities connected under the program (5%) (Number (Thousand), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 1,023.00 25,000.00 Date 30-Dec-2016 03-Aug-2017 01-Jun-2018 31-Jul-2022 ►IR Indicator 2.2: Health care facilities connected under the program (5%) (Number (Thousand), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 283.00 25,000.00 Date 30-Dec-2016 03-Aug-2017 01-Jun-2018 31-Jul-2022 ►IR Indicator 2.3: Business, out of which number of female owned, connected under th program (30%) (Number (Thousand), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 150,000.00 Date 30-Dec-2016 03-Aug-2017 01-Jun-2018 31-Jul-2022 Increasing Supply of Renewable Electricity in Rural Areas ►IR Indicator 3.1: Cumulative number of proposed MWs covered by SPP Loans for Small Power Projects reaching financial close under the CL (Megawatt, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 17.00 Date 30-Dec-2016 03-Aug-2017 01-Jun-2018 31-Jul-2022 ►IR Indicator 4.1: Households provided with electricity via SPPs or renewable energy under the program that are female- headed (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target 6/25/2018 Page 7 of 10 The World Bank Implementation Status & Results Report TZ-Rural Electrification Expansion Program (P153781) Value 24.00 24.00 24.00 24.00 Date 30-Dec-2016 03-Aug-2017 01-Jun-2018 31-Jul-2022 ►IR Indicator 4.2: SPP projects reaching financial close using CL (cumulative) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 10.00 Date 30-Dec-2016 03-Aug-2017 01-Jun-2018 31-Jul-2022 ►IR Indicator 4.3: Loans to renewable energy companies reaching finacial close (culmulative) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 12.00 Date 30-Dec-2016 03-Aug-2017 01-Jun-2018 31-Jul-2022 ►IR Indicator 4.4: Cumulative value of eligible renewable energy sub-loans reaching finacial close (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 12,500,000.00 Date 30-Dec-2016 03-Aug-2017 01-Jun-2018 31-Jul-2022 ►IR indicator 4.5: SPPs successfully in operation selling energy to both TANESCO and rural customers (cumulative) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 2.00 2.00 2.00 9.00 Date 30-Dec-2016 03-Aug-2017 01-Jun-2018 31-Jul-2022 ►IR Indicator 4.6: Solar energy systems sold (Number (Thousand), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 10,000.00 Date 30-Dec-2016 03-Aug-2017 01-Jun-2018 31-Jul-2022 ►IR Indicator 4.7: Other renewable energy systems sold (Number (Thousand), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 10,000.00 6/25/2018 Page 8 of 10 The World Bank Implementation Status & Results Report TZ-Rural Electrification Expansion Program (P153781) Date 30-Dec-2016 03-Aug-2017 01-Jun-2018 31-Jul-2022 ►IR Indicator 4.8: Lanterns sold (Number (Thousand), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 15,000.00 Date 30-Dec-2016 03-Aug-2017 01-Jun-2018 31-Jul-2022 Strengthening Capacity of the Sector to Deliver the NREP ►IR Indicator 5.1: Annual capacity building and project preparation activities completed (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N N Y Date 30-Dec-2016 03-Aug-2017 01-Jun-2018 31-Jul-2022 ►IR Indictor 5.2: Implementation of the National Energy Policy of 2015 to enhance access to modern energy services completed (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N N Y Date 30-Dec-2016 03-Aug-2017 01-Jun-2018 31-Jul-2022 Disbursement Linked Indicators DLI_IND_TABLE ►DLI DLI 1: Cumulative number of grid electricity connections, including those under mini grids, made under the program (Outcome, 151,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) July 31, 2022 Value 0.00 -- 59,836.00 500000.00 Date 14-Mar-2017 -- 01-Jun-2018 -- Comments Estimate has not yet been verified by IVA. ►DLI DLI2: Cumulative number of proposed MWs covered by SPP Loans for Small Power Projects reaching financial close under the CL (Outcome, 32,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) July 31, 2022 6/25/2018 Page 9 of 10 The World Bank Implementation Status & Results Report TZ-Rural Electrification Expansion Program (P153781) Value 0.00 -- 0.00 17.00 Date 14-Mar-2017 -- 01-Jun-2018 -- Comments ►DLI DLI 3: Cumulative value of eligible renewable energy sub-loans reaching financial close (Output, 10,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) July 31, 2022 Value 0.00 -- 0.00 12500000.00 Date 14-Mar-2017 -- 01-Jun-2018 -- Comments ►DLI DLI 4: Annual capacity building and project preparation activities completed (Output, 15,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) July 31, 2022 No Planning and Preparation Department Draft Annual Capacity strengthened Building Plan submitted. Value -- Feasibility studies for -- No training and no some districts completed. transaction advisors hired Date 14-Mar-2017 -- 01-Jun-2018 -- Comments Results are yet to be formally endorsed by the REA's trust agent. ►DLI DLI 5: Implementation of the National Energy Policy of 2015 completed (Output, 1,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) July 31, 2022 No implementation strategy No implementation Value for subsidy policy -- strategy for subsidy policy -- completed completed Date 14-Mar-2017 -- 01-Jun-2018 -- Comments 6/25/2018 Page 10 of 10