Public Disclosure Copy The World Bank Implementation Status & Results Report KE Electricity Modernization Project (P120014) KE Electricity Modernization Project (P120014) AFRICA | Kenya | Energy & Extractives Global Practice | IBRD/IDA | Investment Project Financing | FY 2015 | Seq No: 2 | ARCHIVED on 12-Jan-2016 | ISR21732 | Implementing Agencies: Rural Electrification Authority, Kenya Power and Lighting Company (KPLC), Ministry of Energy and Petroleum Key Dates Key Project Dates Bank Approval Date:31-Mar-2015 Effectiveness Date:17-Sep-2015 Planned Mid Term Review Date:01-May-2018 Actual Mid-Term Review Date:-- Original Closing Date:30-Jun-2020 Revised Closing Date:30-Jun-2020 Project Development Objectives Project Development Objective (from Project Appraisal Document) The proposed project development objectives (PDOs) are: (a) to increase access to electricity; (b) to improve reliability of electricity service; and (c) to strengthen KPLC’s financial situation. The Project combines an investment program and an IDA Guarantee. The investment program has four components: Component A: Improvement in service delivery and reliability Component B: Revenue Protection Program Component C: Electrification Program Component D: Technical Assistance and Capacity Building Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Component A: Improvement in Service Delivery and Reliability.:(Cost $50.00 M) Component B: Revenue Protection Program (RPP):(Cost $40.00 M) Component C: Electrification Program:(Cost $164.50 M) Component D: Technical Assistance and Capacity Building.:(Cost $7.50 M) IDA Guarantee:(Cost $200.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Satisfactory  Satisfactory 1/12/2016 Page 1 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report KE Electricity Modernization Project (P120014) Overall Implementation Progress (IP)  Satisfactory  Satisfactory Overall Risk Rating  Substantial  Substantial Implementation Status and Key Decisions The project became effective on September 17, 2015 and the SREP Grant Agreement was signed on November 30, 2015. First disbursement under the project is expected in January 2016. Under the project components A and B, Improvement in Service Delivery and Reliability and Revenue Protection Program, an important step in the implementation progress has been made in the hiring of a senior procurement specialist to support the KPLC project team in the preparation of major procurement packages for key activities under the project. Under component C, Electrification Program, REA in the process of hiring consultant for prefeasibility for mini grids. Under component D, Technical Assistance and Capacity Building, hiring of consultants for the National Electrification Strategy (NES) is ongoing. To complement the NES, geospatial planning for grid and off-grid rollout is also being prepared. 1/12/2016 Page 2 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report KE Electricity Modernization Project (P120014) 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  Moderate  Moderate  Moderate Technical Design of Project or Program  Moderate  Moderate  Moderate Institutional Capacity for Implementation and Sustainability  Substantial  Substantial  Substantial Fiduciary  Moderate  Moderate  Moderate Environment and Social  Moderate  Moderate  Moderate Stakeholders  Moderate  Moderate  Moderate Other  --  --  -- Overall  Substantial  Substantial  Substantial 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 -- 0.00 618750.00 Date 01-Apr-2015 -- 08-Dec-2015 31-Dec-2019 PHINDPDOTBL  People provided with access to electricity by hhold connections-Grid (Number, Core Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 618750.00 Date 01-Apr-2015 05-Aug-2015 08-Dec-2015 31-Dec-2019 1/12/2016 Page 3 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report KE Electricity Modernization Project (P120014) PHINDPDOTBL  People provided with access to electricity under the project by household connections – Off- grid/mini-grid only (renewable sources) (Cumulative) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 13500.00 Date 01-Apr-2015 -- 08-Dec-2015 31-Dec-2019 PHINDPDOTBL  Total number of new non-residential connections (Cumulative) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 1250.00 Date 01-Apr-2015 -- 08-Dec-2015 31-Dec-2019 PHINDPDOTBL  Average outage duration for customers served (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 12.00 -- 12.00 6.00 Date 01-Apr-2015 -- 08-Dec-2015 31-Dec-2019 PHINDPDOTBL  KPLC Commercial losses (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 6.70 6.70 6.70 3.70 Date 01-Apr-2015 05-Aug-2015 08-Dec-2015 31-Dec-2019 PHINDPDOTBL  KPLC's Current Ratio (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1 -- 1 >1 1/12/2016 Page 4 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report KE Electricity Modernization Project (P120014) Date 01-Apr-2015 01-Sep-2015 08-Dec-2015 31-Dec-2019 PHINDPDOTBL  KPLC’s Return on Assets to Equity (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 11.90 11.90 11.90 10.00 Date 01-Apr-2015 05-Aug-2015 08-Dec-2015 31-Dec-2019 Overall Comments Intermediate Results Indicators PHINDIRITBL  Automatic load break switches installed in the Nairobi distribution network in the project areas. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 1000.00 Date 01-Apr-2015 -- 08-Dec-2015 31-Dec-2015 PHINDIRITBL  Substations added to the SCADA/EMS (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 86.00 86.00 86.00 146.00 Date 01-Apr-2015 05-Aug-2015 08-Dec-2015 31-Dec-2019 1/12/2016 Page 5 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report KE Electricity Modernization Project (P120014) PHINDIRITBL  Establishment of a modern meter control center with satellites. (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N -- N Y Date 01-Apr-2015 -- 08-Dec-2015 31-Dec-2019 PHINDIRITBL  Installation of AMI meters (Cumulative) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 4300.00 4300.00 4300.00 44300.00 Date 01-Apr-2015 05-Aug-2015 08-Dec-2015 31-Dec-2019 PHINDIRITBL  Distribution lines constructed or rehabilitated under the project (Kilometers, Core) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 3500.00 Date 01-Apr-2015 05-Aug-2015 08-Dec-2015 31-Dec-2019 PHINDIRITBL  Distribution lines constructed under the project (Kilometers, Core Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 3500.00 Date 01-Apr-2015 -- 08-Dec-2015 31-Dec-2019 1/12/2016 Page 6 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report KE Electricity Modernization Project (P120014) PHINDIRITBL  Distribution transformers installed (Cumulative) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 1000.00 Date 01-Apr-2015 -- 08-Dec-2015 31-Dec-2019 PHINDIRITBL  Mini grids constructed with public-private participation (Cumulative) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 6.00 Date 01-Apr-2015 05-Aug-2015 08-Dec-2015 31-Dec-2019 PHINDIRITBL  Annual electricity output from mini-grids constructed with public-private participation. (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 2780.00 Date 01-Apr-2015 -- 08-Dec-2015 31-Dec-2019 PHINDIRITBL  National Electrification Strategy adopted. (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N N Y Date 01-Apr-2015 05-Aug-2015 08-Dec-2015 31-Dec-2019 1/12/2016 Page 7 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report KE Electricity Modernization Project (P120014) PHINDIRITBL  Implementation by ERC of a regime on service quality. (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N -- N Y Date 01-Apr-2015 -- 08-Dec-2015 31-Dec-2019 PHINDIRITBL  Private Capital Mobilized (Amount(USD), Core) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 450.00 Date 01-Apr-2015 05-Aug-2015 08-Dec-2015 31-Dec-2019 PHINDIRITBL  Reduction in interest rate of commercial loans (percentage) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value >7.5% -- >7.5% <6% Date 01-Apr-2015 -- 08-Dec-2015 31-Dec-2019 PHINDIRITBL  Debt to EBITDA (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 3.80 -- 3.80 3.50 Date 01-Apr-2015 -- 08-Dec-2015 31-Dec-2019 1/12/2016 Page 8 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report KE Electricity Modernization Project (P120014) PHINDIRITBL  EBITDA to interest (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 5.21 5.21 5.21 5.00 Date 01-Apr-2015 05-Aug-2015 08-Dec-2015 31-Dec-2019 PHINDIRITBL  Cash from operation to debt (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 26.00 -- 26.00 20.00 Date 01-Apr-2015 -- 08-Dec-2015 31-Dec-2019 PHINDIRITBL  Free operational cash flow to debt (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value -10.00 10.00 10.00 6.00 Date 01-Apr-2015 05-Aug-2015 08-Dec-2015 31-Dec-2019 Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P120014 IDA-55870 Effective USD 250.00 250.00 0.00 0.00 241.69 0% Not P120014 IDA-G2330 USD 200.00 200.00 0.00 0.00 200.00 0% Effective Key Dates (by loan) 1/12/2016 Page 9 of 10 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report KE Electricity Modernization Project (P120014) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P120014 IDA-55870 Effective 31-Mar-2015 29-Jun-2015 17-Sep-2015 30-Jun-2020 30-Jun-2020 Not P120014 IDA-G2330 31-Mar-2015 -- -- 31-Dec-2019 31-Dec-2019 Effective Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) P145104-KE Electricity Modernization Project 1/12/2016 Page 10 of 10 Public Disclosure Copy