Public Disclosure Copy The World Bank Implementation Status & Results Report Rural Electrification Phase II Project of the Rural Electrification (APL) Program (P110978) Rural Electrification Phase II Project of the Rural Electrification (APL) Program (P110978) EAST ASIA AND PACIFIC | Lao People's Democratic Republic | Energy and Mining Global Practice | IBRD/IDA | Adaptable Program Loan | FY 2010 | Seq No: 6 | ARCHIVED on 05-Dec-2014 | ISR17091 | Implementing Agencies: Electricite du Laos, Ministry of Energy and Mines Key Dates Key Project Dates Board Approval date:12-Jan-2010 Effectiveness Date:09-Aug-2010 Planned Mid Term Review Date:25-Mar-2013 Actual Mid-Term Review Date:22-May-2013 Original Closing Date:-- Revised Closing Date:30-Jun-2015 Project Development Objectives Rural Electrification Phase II Project of the Rural Electrification (APL) Program (P110978) Project Development Objective (from Project Appraisal Document) a) To increase access to electricity of rural households in villages of Project provinces; and b) To further improve the financial performance of EdL. Has the Project Development Objective been changed since Board Approval of the Project Objective? No GEF Project: Lao Rural Electrification Phase II Project (P117177) Global Environmental Objective (from Project Appraisal Document) The GEO are (i) increase efficiency of energy supply by EDL and consumption by consumers; and (ii) adopt substantial renewable energy in the government’s rural electrification program. Has the Global Environmental Objective been changed since Board Approval of the Project Objective? No Components Name EdL Component: A.1. Grid Extension; A.2. Loss Reduction; A.3. IT System & Financial Mgmt; A.4. Safeguards Capacity Building; and A. 5. Demand Side Mmgt & Energy Efficiency.:(Cost $16.89 M) MEM Component: B.1. Off-Grid Investment Program; B.2. Institutional Strengthening; B.3. Alternative RE Delivery Models; B.4. RE Mast er Plan & Database; B.5. Organizational Strengthen of MEM:(Cost $4.92 M) 12/5/2014 Public Disclosure Copy Page 1 of 11 Public Disclosure Copy The World Bank Implementation Status & Results Report Rural Electrification Phase II Project of the Rural Electrification (APL) Program (P110978) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Moderately Satisfactory  Moderately Satisfactory Progress towards achievement of GEO  Moderately Satisfactory  Moderately Satisfactory Overall Implementation Progress (IP)  Moderately Unsatisfactory  Moderately Satisfactory Overall Risk Rating  --  Moderate Implementation Status and Key Decisions Progress toward achievement of Project Development Objectives: After 4.5 years of implementation, the project had connected about 33,570 out of 37,700 (89%) of targeted rural households by June 2014 with new connections, both on-grid and off-grid, being added at an accelerated rate. The implementing agencies expect close to the end-of-project connections target to be met by the new project closing date of June 2015, approved as part of the December 2013 restructuring because the required power lines to enable new on-grid connections are now built. Regarding the financial performance of Electricite du Laos (EDL), the company has been undergoing corporate restructuring that commenced in late 2010, including the separation of the generation business from EDL and the creation of EDL Generation Company to take over the power generation business. The financial situation of EDL is evolving, impacting its financial indicators. The latest FY2013 results indicate a net profit for the EDL Group of 5% of revenue and a debt service coverage ratio exceeding 1.1. However, the transmission and distribution business continues to incur financial losses of 1.5% of revenue. Progress toward achievement of Global Environment Objectives: On the EDL energy efficiency supply side, activities to help reduce distribution losses below 13% are on-going including some activities under this project (meter replacement, billing system fine-tuning). On the demand side, an energy efficiency awareness campaign was fully carried out. The implementation of energy efficiency pilot projects is now under way for public buildings. As for increasing renewable energy in the rural electrification program, the village hydro and biogas power pilot projects are under construction. All together, the number of rural electrifications projects supported by the Rural Electrification Fund under this project will meet the end project target of three projects, and contribute toward meeting the 300,000 tons of CO2 reduction target. Action Items: First, EDL should expedite connections for the remaining 6,810 households (as of June 2014), now that the required power line to enable these new household connections is built. Second, the Ministry of Energy and Mines (MEM) should closely supervise the construction of the village hydro and biogas pilot projects in the coming months. Third, Lao PDR and EDL officials should propose financial actions to address power sector and EDL financial sustainability by January 2015. The next supervision mission is planned for May 2015. 12/5/2014 Public Disclosure Copy Page 2 of 11 Public Disclosure Copy The World Bank Implementation Status & Results Report Rural Electrification Phase II Project of the Rural Electrification (APL) Program (P110978) 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  --  --  Substantial Technical Design of Project or Program  --  --  Moderate Institutional Capacity for Implementation and Sustainability  --  --  Substantial Fiduciary  --  --  Substantial Environment and Social  --  --  Moderate 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 78644.00 134292.00 150800.00 Date 30-Sep-2009 31-Dec-2013 30-Jun-2014 30-Jun-2015 Comments 12/5/2014 Public Disclosure Copy Page 3 of 11 Public Disclosure Copy The World Bank Implementation Status & Results Report Rural Electrification Phase II Project of the Rural Electrification (APL) Program (P110978) PHINDPDOTBL  People provided with access to electricity by hhold connections-Grid (Number, Core Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 45728.00 83560.00 110800.00 Date 30-Sep-2009 31-Dec-2013 30-Jun-2014 30-Jun-2015 Comments 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 32916.00 50732.00 40000.00 Date 30-Sep-2009 31-Dec-2013 30-Jun-2014 30-Jun-2015 Comments PHINDPDOTBL  EdL financial perfromance - Debt service coverage ratio (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.30 1.40 1.40 1.10 Date 31-Dec-2009 31-Mar-2014 30-Jun-2014 30-Jun-2015 Comments Latest value based on FY2013 consolidated basis for EDL Group, computed from earnings before interest, taxes, depreciation and amortization (EBITDA) PHINDPDOTBL  Number of households electrified (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 19661.00 33573.00 37700.00 Date 31-Dec-2009 31-Dec-2013 30-Jun-2014 30-Jun-2015 Comments 12/5/2014 Public Disclosure Copy Page 4 of 11 Public Disclosure Copy The World Bank Implementation Status & Results Report Rural Electrification Phase II Project of the Rural Electrification (APL) Program (P110978) PHINDPDOTBL  Account receivables from Government agencies (Months, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 20.00 14.00 14.00 3.00 Date 31-Dec-2009 31-Mar-2014 30-Jun-2014 30-Jun-2015 Comments Latest value is based on FY2013 consolidated data for EDL Group. Overall Comments Global Environmental Objective Indicators PHINDGEOTBL  Electricity losses per year in the project area (Percentage, Core) Baseline Actual (Previous) Actual (Current) End Target Value 13.00 14.30 12.10 12.00 Date 30-Sep-2009 31-Mar-2014 31-Dec-2013 30-Jun-2015 Comments The latest value is calculated by EDL for distribution losses only for 2013. Partial data for 2014 suggests that the distribution losses have increased to 13.7% because a number of large customers were taken off the distribution network and served directly by the transmission network. 12/5/2014 Public Disclosure Copy Page 5 of 11 Public Disclosure Copy The World Bank Implementation Status & Results Report Rural Electrification Phase II Project of the Rural Electrification (APL) Program (P110978) PHINDGEOTBL  Total net injected generation (Megawatt hour(MWh), Core Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 0.00 Date 30-Sep-2009 31-Mar-2014 31-Dec-2013 30-Jun-2015 Comments PHINDGEOTBL  People provided with access to electricity by hold connections-Other RE: Off-grid (Number, Core) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 32916.00 50732.00 40000.00 Date 30-Sep-2009 31-Dec-2013 30-Jun-2014 30-Jun-2015 Comments PHINDGEOTBL  (f) CO2 emission reduction (Metric ton, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 300000.00 Date 31-Dec-2009 31-Mar-2014 31-Oct-2014 30-Jun-2015 Comments PHINDGEOTBL  Newly installed renewable energy generation capacity (Megawatt, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 0.30 Date 31-Dec-2009 31-Mar-2014 31-Oct-2014 30-Jun-2015 12/5/2014 Public Disclosure Copy Page 6 of 11 Public Disclosure Copy The World Bank Implementation Status & Results Report Rural Electrification Phase II Project of the Rural Electrification (APL) Program (P110978) Comments 260 kW of biogas pilot project and 50 kW of village hydro pilot project are under construction and scheduled for completion prior to the project closing date. PHINDGEOTBL  EdL's distribution system losses (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 13.00 14.30 12.10 12.00 Date 31-Dec-2009 31-Mar-2014 31-Dec-2013 30-Jun-2015 Comments The latest distribution loss rate of 12.1% is for 2013. PHINDGEOTBL  Measurable increase in awareness and adoption of EE technologies and practices by customers (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 50.00 100.00 100.00 100.00 Date 31-Dec-2009 31-Mar-2014 31-Oct-2014 30-Jun-2015 Comments PHINDGEOTBL  Generation Capacity of Hydropower constructed or rehabilitated under the project (Megawatt, Core) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 0.30 Date 31-Dec-2009 31-Mar-2014 31-Oct-2014 30-Jun-2015 Comments 12/5/2014 Public Disclosure Copy Page 7 of 11 Public Disclosure Copy The World Bank Implementation Status & Results Report Rural Electrification Phase II Project of the Rural Electrification (APL) Program (P110978) PHINDGEOTBL  Generation Capacity of Hydropower constructed under the project (Megawatt, Core Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 0.30 Date 31-Dec-2009 31-Mar-2014 31-Oct-2014 30-Jun-2015 Comments Overall Comments Intermediate Results Indicators PHINDIRITBL  Distribution lines constructed or rehabilitated under the project (Kilometers, Core) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 795.00 1600.00 1209.00 Date 31-Dec-2009 31-Dec-2013 30-Jun-2014 30-Jun-2015 Comments PHINDIRITBL  Distribution lines constructed under the project (Kilometers, Core Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 795.00 1600.00 1209.00 Date 31-Dec-2009 31-Dec-2013 30-Jun-2014 30-Jun-2015 Comments 12/5/2014 Public Disclosure Copy Page 8 of 11 Public Disclosure Copy The World Bank Implementation Status & Results Report Rural Electrification Phase II Project of the Rural Electrification (APL) Program (P110978) PHINDIRITBL  EdL distribution system losses (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 13.00 14.30 12.10 12.00 Date 31-Dec-2009 31-Mar-2014 30-Jun-2014 30-Jun-2015 Comments The latest 12.1% distribution loss value is for 2013. PHINDIRITBL  Number of households newly electrified through off-grid renewable energy technologies (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 8229.00 12683.00 10000.00 Date 31-Dec-2009 31-Dec-2013 30-Jun-2014 30-Jun-2015 Comments PHINDIRITBL  Measurable increase in awareness and adoption of EE technologies (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 10.00 100.00 100.00 80.00 Date 31-Dec-2009 31-Dec-2013 30-Jun-2014 30-Jun-2015 Comments PHINDIRITBL  Number of households newly electrified through grid extension (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 11432.00 20890.00 27700.00 Date 31-Dec-2009 31-Dec-2013 30-Jun-2014 30-Jun-2015 Comments 12/5/2014 Public Disclosure Copy Page 9 of 11 Public Disclosure Copy The World Bank Implementation Status & Results Report Rural Electrification Phase II Project of the Rural Electrification (APL) Program (P110978) PHINDIRITBL  Number of rural electrification projects with financial support of Rural Electrification Fund (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 3.00 3.00 Date 31-Dec-2009 31-Dec-2013 31-Oct-2014 30-Jun-2015 Comments The latest value includes the solar home system project, the biogas pilot project, and the village hydro pilot project. Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P110978 IDA-H5380 Effective USD 20.00 20.00 0.00 16.87 2.32 84% P117177 TF-98662 Effective USD 20.00 1.82 0.00 0.84 0.98 46% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P110978 IDA-H5380 Effective 13-Jan-2010 08-Feb-2010 09-Aug-2010 30-Jun-2014 30-Jun-2015 P117177 TF-98662 Effective 05-May-2011 05-May-2011 17-Aug-2011 30-Jun-2014 30-Jun-2015 Cumulative Disbursements 12/5/2014 Public Disclosure Copy Page 10 of 11 Public Disclosure Copy The World Bank Implementation Status & Results Report Rural Electrification Phase II Project of the Rural Electrification (APL) Program (P110978) Restructuring History Level Approved on 27-Nov-2013 Related Project(s) P117177-GEF Project: Lao Rural Electrification Phase II Project 12/5/2014 Public Disclosure Copy Page 11 of 11