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: 10 | ARCHIVED on 13-Dec-2019 | ISR39735 | Implementing Agencies: Rural Electrification Authority, Kenya Power and Lighting Company (KPLC), Ministry of Energy and Petroleum, The National Treasury Key Dates Key Project Dates Bank Approval Date: 31-Mar-2015 Effectiveness Date: 17-Sep-2015 Planned Mid Term Review Date: 16-Jan-2019 Actual Mid-Term Review Date: 06-May-2019 Original Closing Date: 30-Jun-2020 Revised Closing Date: 30-Jun-2020 pdoTable 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. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table 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 Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions The Project has four components: (i) Component A: Improvement in Service Delivery and Reliability (ii) Component B: Revenue Protection Program; (iii) Component C1: Peri-urban Electrification, and Component C2: Off grid electrification; and (iv) Component D: Technical Assistance and Capacity Building. The project also includes an IDA guarantee in support of refinancing short-term commercial debt obligations of KPLC with longer tenor and lower-cost debt with the objective of strengthening KPLC financial position. Project implementation is progressing well and some component activities are substantially completed. However, some of the remaining activities will require the closing date extension to allow time for completion and realization of the project development objectives. 12/13/2019 Page 1 of 7 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 Substantial Substantial Sector Strategies and Policies Moderate Substantial Substantial Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and Sustainability Substantial Moderate Moderate Fiduciary Moderate Moderate Moderate Environment and Social Moderate Substantial Substantial Stakeholders Moderate Moderate Moderate Other -- -- -- Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes Increase electricity access, improve service reliability and strengthen KPLC's financial position IN00778658 ►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 0.00 13,500.00 Date 30-Jun-2014 31-Mar-2019 30-Sep-2019 30-Jun-2020 IN00778659 ►People provided with access to electricity by household connections (Number, Corporate) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 55,255.00 71,221.00 618,750.00 Date 30-Jun-2014 31-Mar-2019 30-Sep-2019 30-Jun-2020 IN00778660 People provided with access to electricity by household connections-Grid (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target 12/13/2019 Page 2 of 7 The World Bank Implementation Status & Results Report KE Electricity Modernization Project (P120014) Value 0.00 55,255.00 71,221.00 618,750.00 Date 30-Jun-2014 31-Mar-2019 30-Sep-2019 30-Jun-2020 IN00778666 ►Total number of new non-residential connections (Cumulative) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 1,250.00 Date 30-Jun-2014 31-Mar-2019 30-Sep-2019 30-Jun-2020 IN00778667 ►KPLC Commercial losses (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 6.70 7.90 9.08 3.70 Date 30-Jun-2014 30-Mar-2019 30-Jun-2019 30-Jun-2020 IN00778668 ►Average outage duration for customers served (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 12.00 7.96 8.00 6.00 Date 30-Jun-2014 31-Mar-2019 30-Jun-2019 30-Jun-2020 The actual (previous) was based on an estimate. Since the project activities are not completed to impact Comments: on system reliability, the baseline number has been maintained. IN00778669 ►KPLC's Current Ratio (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value ≥1 0.51 0.51 ≥1 Date 30-Jun-2014 30-Jun-2018 30-Jun-2018 30-Jun-2020 IN00778670 ►KPLC’s Return on Assets to Equity (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 11.90 19.00 19.00 10.00 Date 30-Jun-2014 30-Jun-2018 30-Jun-2018 30-Jun-2020 Intermediate Results Indicators by Components Component C: Electrification Program IN00778673 ►Distribution lines constructed or rehabilitated under the project (Kilometers, Custom) 12/13/2019 Page 3 of 7 The World Bank Implementation Status & Results Report KE Electricity Modernization Project (P120014) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 50.00 2,940.00 3,500.00 Date 01-Apr-2015 31-Mar-2019 30-Sep-2019 30-Jun-2020 IN00778680 Distribution lines constructed under the project (Kilometers, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 50.00 2,940.00 3,500.00 Date 30-Jun-2014 31-Mar-2019 30-Sep-2019 30-Jun-2020 IN00778681 ►Distribution transformers installed (Cumulative) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 14.00 1,000.00 Date 30-Jun-2014 31-Mar-2019 30-Sep-2019 31-Dec-2019 IN00778683 ►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 30-Jun-2014 31-Mar-2019 30-Sep-2019 30-Jun-2020 IN00778685 ►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 0.00 2,780.00 Date 30-Jun-2014 31-Mar-2019 30-Sep-2019 30-Jun-2020 Component B: Revenue Protection Program (RPP) IN00778672 ►Establishment of a modern meter control center with satellites. (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 01-Apr-2015 31-Mar-2019 30-Jun-2019 31-Dec-2019 IN00778677 ►Installation of AMI meters (Cumulative) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 4,300.00 0.00 0.00 44,300.00 12/13/2019 Page 4 of 7 The World Bank Implementation Status & Results Report KE Electricity Modernization Project (P120014) Date 01-Apr-2015 31-Mar-2019 30-Jun-2019 30-Jun-2020 Component D: Technical Assistance and Capacity Building. IN00778674 ►National Electrification Strategy adopted. (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 30-Jun-2014 06-Dec-2018 30-Sep-2019 30-Jun-2020 IN00778678 ►Implementation by ERC of a regime on service quality. (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 30-Jun-2014 31-Mar-2019 30-Sep-2019 30-Jun-2020 IDA Guarantee IN00778675 ►Debt to EBITDA (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 3.80 4.33 4.33 3.50 Date 30-Jun-2014 30-Jun-2018 30-Jun-2018 30-Jun-2020 IN00778679 ►EBITDA to interest (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 5.21 3.34 3.34 5.00 Date 30-Jun-2014 30-Jun-2018 30-Jun-2018 30-Jun-2020 IN00778682 ►Cash from operation to debt (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 26.00 25.00 25.00 20.00 Date 30-Jul-2014 30-Jun-2018 30-Jun-2018 31-Dec-2019 IN00778684 ►Free operational cash flow to debt (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value -10.00 2.35 2.35 6.00 12/13/2019 Page 5 of 7 The World Bank Implementation Status & Results Report KE Electricity Modernization Project (P120014) Date 30-Jun-2014 30-Jun-2018 30-Jun-2018 30-Jun-2020 IN00778686 ►Reduction in interest rate of commercial loans (percentage) (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 7.50 6.91 6.91 6.00 Date 30-Jun-2014 30-Jun-2018 30-Jun-2018 30-Jun-2020 IN00778687 ►Private Capital Mobilized (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 500,000,000.00 500,000,000.00 450,000,000.00 Date 01-Apr-2015 30-Jun-2016 30-Jun-2016 30-Jun-2020 Component A: Improvement in Service Delivery and Reliability. IN00778671 ►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 0.00 1,000.00 Date 30-Jun-2014 31-Mar-2019 30-Jun-2019 30-Jun-2020 IN00778676 ►Substations added to the SCADA/EMS (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 86.00 0.00 150.00 146.00 Date 30-Jun-2014 31-Mar-2019 30-Jun-2019 30-Jun-2020 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 0.00 119.94 119.35 50% P120014 TF-A0579 Effective USD 7.50 7.50 0.00 0.00 7.50 0% Key Dates (by loan) 12/13/2019 Page 6 of 7 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 P120014 TF-A0579 Effective 31-Mar-2015 23-Nov-2015 31-Aug-2016 30-Jun-2020 30-Jun-2020 Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) P145104-KE Electricity Modernization Project 12/13/2019 Page 7 of 7