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 Financing | FY 2016 | Team Leader(s): Richard H. Hosier, Kabir Malik Seq No: 5 | ARCHIVED on 26-Jun-2019 | ISR36516 | Created by: Kabir Malik on 02-Apr-2019 | Modified by: Kabir Malik on 21-Jun-2019 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 Implementation progress continues to be moderately satisfactory, with some delays due to the challenging sector and policy context. Progress on other aspects is gradually gaining momentum, with more significant progress expected in the coming months. Monitoring and regular reporting of project works and related safeguard issues remains weak and needs to be strengthened. 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 72.47 123.58 37% P153781 TF-A2502 Effective USD 9.00 9.00 0.00 2.25 6.75 25% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P153781 IDA-58940 Effective 21-Jun-2016 15-Aug-2016 17-Mar-2017 31-Jul-2022 31-Jul-2022 P153781 TF-A2502 Effective 21-Jun-2016 15-Aug-2016 17-Mar-2017 31-Jul-2022 31-Jul-2022 6/26/2019 Page 1 of 11 The World Bank Implementation Status & Results Report TZ-Rural Electrification Expansion Program (P153781) Program Action Plan Preparation of a Rural Electrification Master Plan (REMP) to strengthen the planning and coordination capacity of the Action Description sector institutions is underway. Source DLI# Responsibility Timing Timing Value Status Technical REA Due Date 31-Aug-2019 Delayed Completion Masterplan Completed and adopted Measurement REMP is almost complete. the final stage is waiting from guidance on MoE and REA on the relevant policy scenario Comments to include in the model. Action Description Apply standard technical specifications and bid evaluation criteria Source DLI# Responsibility Timing Timing Value Status REA, TANESCO Recurrent Continuous In Progress Completion Measurement Comments Action Description Deployment of REA and or TANESCO staff to the regional level Source DLI# Responsibility Timing Timing Value Status Other REA, TANESCO Recurrent Continuous In Progress Completion Staff deployed to field Measurement Comments TANESCO regional and district staff are closely involved in supervision of works 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 Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems REA Due Date 31-Aug-2017 In Progress Completion REA has recruited staff for project and contract management. Measurement REA has now recruited an environmental and social specialist, an environmental specialist and a gender specialist. Comments REA has also recruited additional 29 staff to manage each of the contracts under REA-3, Phase 1. But, procurement of PMC is delayed. 6/26/2019 Page 2 of 11 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 Source DLI# Responsibility Timing Timing Value Status Technical REA Recurrent Continuous Delayed Completion Completion of training sessions Measurement Comments Training has not been undertaken. REA has used hired consultants for the preparation of tender documents Action Description Establish records keeping management system Source DLI# Responsibility Timing Timing Value Status REA Recurrent Continuous In Progress Completion Measurement Comments Action Description Establish system for timely disbursement of funds to the REA to meet its contractual obligations Source DLI# Responsibility Timing Timing Value Status MoF Due Date 17-Mar-2018 Delayed Completion Measurement 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 Source DLI# Responsibility Timing Timing Value Status Environmental and Social REA Due Date 30-Jun-2019 In Progress Systems Completion (a) a strategic ESIA for development of renewable energy; (b) an ESIA consultant qualification system at the REA; (c) Measurement training for ESIA consultants, implemented by REA and NEMC; (d) dedicated staff for processing at NEMC Comments A roster of consultants have been prepared by REA. Trainings organized by NEMC have been undertaken. 6/26/2019 Page 3 of 11 The World Bank Implementation Status & Results Report TZ-Rural Electrification Expansion Program (P153781) 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 Source DLI# Responsibility Timing Timing Value Status Environmental and Social REA/TANESCO/NE Due Date 17-Mar-2018 In Progress Systems MC Completion Staff recruited Measurement Comments Staff added to REA's E&S unit. 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 Source DLI# Responsibility Timing Timing Value Status Environmental and Social REA Due Date 31-Aug-2019 In Progress Systems Completion Formulation and adoption of SEP Measurement Comments SEP has been formulated. Training on implementation will be administered in August through contractors workshop. Action Description Prepare a detailed REA procedural manual Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems REA Due Date 17-Mar-2018 Completed Completion Procedural Manual Completed. Measurement Comments Procedural manual has been completed and approved. Action Description Monitoring and annual reporting by the REA on social and environmental performance Source DLI# Responsibility Timing Timing Value Status Technical REA Due Date 01-Apr-2019 Delayed Completion Receipts of periodic Annual reports Measurement Comments There has been no E&S report been received from REA. This has been supplemented through field visits. Action Description Project Management Consultant will be hired by REA 6/26/2019 Page 4 of 11 The World Bank Implementation Status & Results Report TZ-Rural Electrification Expansion Program (P153781) Source DLI# Responsibility Timing Timing Value Status Technical REA Due Date 30-Aug-2019 Revised Date Completion PMC hired Measurement Comments This has been delayed and the Bank has asked for the Government’s response in writing. 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 Source DLI# Responsibility Timing Timing Value Status TANESCO/MOFP Due Date 19-Jun-2017 Completed Completion Measurement Comments 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 Moderate Moderate Stakeholders Moderate Moderate Moderate Other Substantial Substantial Substantial Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes 6/26/2019 Page 5 of 11 The World Bank Implementation Status & Results Report TZ-Rural Electrification Expansion Program (P153781) Increase access to electricity in rural areas; and scale up the supply of renewable energy IN00699074 ►PDO Indicator 1: People provided with access to electricity under the program by household connections (Number, Custom) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 229,800.00 2,500,000.00 Date 30-Jan-2017 -- 26-Apr-2019 30-Jun-2022 Data on the number of people with electricity connections is estimated by multiplying the actual number of household connections with an estimate of the average household size (estimate of 5 people per household). The number of household connections that were verified by the IVA is 45,960. Cumulative Comments numbers in the previous ISR were provisional numbers as provided by the TRAG , which has been adjusted as per the verification results of the IVA. IN00686989 ►PDO Indicator 2: Non-residential connections implemented under the Program (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3,664.00 4,159.00 30,000.00 Date 09-Mar-2018 07-Dec-2018 26-Apr-2019 30-Jun-2022 These numbers have also been adjusted to the results of the verification by the IVA. They include connections to educational facilities, healthcare facilities, water pumps, administration buildings, churches, Comments businesses, and mosques. IN00686990 ►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 07-Dec-2018 26-Apr-2019 30-Jun-2022 Comments IN00686996 ►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 07-Dec-2018 26-Apr-2019 30-Jun-2022 Comments IN00686997 ►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 No No No Yes Date 30-Jan-2017 07-Dec-2018 26-Apr-2019 30-Jun-2022 6/26/2019 Page 6 of 11 The World Bank Implementation Status & Results Report TZ-Rural Electrification Expansion Program (P153781) Comments Intermediate Results Indicators by Results Areas Expanding Rural Access to Electricity IN00686998 ►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 59,836.00 45,960.00 500,000.00 Date 30-Jan-2017 07-Dec-2018 26-Apr-2019 31-Jul-2022 Current numbers reflect the adjustments made after verification by IVA Comments IN00687003 ►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 Date 30-Jan-2017 07-Dec-2018 26-Apr-2019 31-Jul-2022 Comments IN00687006 ►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 17.40 30.00 24.00 Date 30-Jan-2017 07-Dec-2018 26-Apr-2019 31-Jul-2022 Comments IN00687008 ►IR Indicator 2.1: Educational facilities connected under the program (5%) (Number (Thousand), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1,023.00 1,158.00 25,000.00 Date 30-Dec-2016 07-Dec-2018 26-Apr-2019 31-Jul-2022 Comments IN00687010 ►IR Indicator 2.2: Health care facilities connected under the program (5%) (Number (Thousand), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 283.00 350.00 25,000.00 6/26/2019 Page 7 of 11 The World Bank Implementation Status & Results Report TZ-Rural Electrification Expansion Program (P153781) Date 30-Dec-2016 07-Dec-2018 26-Apr-2019 31-Jul-2022 Comments IN00687012 ►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 1,919.00 150,000.00 Date 30-Dec-2016 07-Dec-2018 26-Apr-2019 31-Jul-2022 Comments Increasing Supply of Renewable Electricity in Rural Areas IN00686999 ►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 07-Dec-2018 26-Apr-2019 31-Jul-2022 Comments IN00687001 ►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 Value 24.00 24.00 0.00 24.00 Date 30-Dec-2016 07-Dec-2018 24-Apr-2019 31-Jul-2022 Comments IN00687004 ►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 07-Dec-2018 26-Apr-2019 31-Jul-2022 Comments IN00687005 ►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 07-Dec-2018 26-Apr-2019 31-Jul-2022 6/26/2019 Page 8 of 11 The World Bank Implementation Status & Results Report TZ-Rural Electrification Expansion Program (P153781) Comments IN00687007 ►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 07-Dec-2018 26-Apr-2019 31-Jul-2022 Comments IN00687009 ►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 07-Dec-2018 26-Apr-2019 31-Jul-2022 Comments IN00687011 ►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 07-Dec-2018 26-Apr-2019 31-Jul-2022 Comments IN00687013 ►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 Date 30-Dec-2016 07-Dec-2018 26-Apr-2019 31-Jul-2022 Comments IN00687014 ►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 07-Dec-2018 26-Apr-2019 31-Jul-2022 Comments Strengthening Capacity of the Sector to Deliver the NREP IN00687000 6/26/2019 Page 9 of 11 The World Bank Implementation Status & Results Report TZ-Rural Electrification Expansion Program (P153781) ►IR Indicator 5.1: Annual capacity building and project preparation activities completed (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No Yes Yes Date 30-Dec-2016 07-Dec-2018 30-Apr-2019 31-Jul-2022 Capacity strengthening is ongoing with notable activities including the workshop held on the renewable energy and SPP credit lines with participants from all relevant stakeholders. Subsequent workshop has Comments been scheduled to further strengthen the capacity of REA , and other stakeholders to deliver on the project PDO. IN00687002 ►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 No No No Yes Date 30-Dec-2016 07-Dec-2018 30-Apr-2019 31-Jul-2022 Comments Disbursement Linked Indicators DLI_IND_TABLE ►DLI 1 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 45,960.00 500,000.00 Date 14-Mar-2017 07-Dec-2018 30-Apr-2019 -- The revision of this number downwards is as a result of the verification exercise by the due diligence team procured by the Bank. The report by the team made a case for the ineligibility of 13,876 connections for Comments consideration for payment. This recommendation was reviewed and accepted by the team, and reflected in the recommendations for payment. ►DLI 2 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 Value 0.00 0.00 0.00 17.00 Date 14-Mar-2017 07-Dec-2018 07-Dec-2018 -- Comments ►DLI 3 DLI 3: Cumulative value of eligible renewable energy sub-loans reaching financial close (Output, 10,000,000.00, 0%) 6/26/2019 Page 10 of 11 The World Bank Implementation Status & Results Report TZ-Rural Electrification Expansion Program (P153781) Baseline Actual (Previous) Actual (Current) July 31, 2022 Value 0.00 0.00 0.00 12,500,000.00 Date 14-Mar-2017 07-Dec-2018 07-Dec-2018 -- Comments ►DLI 4 DLI 4: Annual capacity building and project preparation activities completed (Output, 15,000,000.00, 2%) Baseline Actual (Previous) Actual (Current) July 31, 2022 No Planning and Preparation Department Cap Bldg Plan prepared Cap Bldg Plan prepared strengthened for year 1 and under for year 1 and under Value -- revision for year 2 revision for year 2 No training and no transaction advisors hired Date 14-Mar-2017 07-Dec-2018 30-Apr-2019 -- The Capacity building Plan has been completed and the amount tied to it included in the disbursement There is also indication that the feasibility studies for all regions have also been completed and REA has been Comments required to submit formal evidence of completion to be considered for payment in the next disbursement before the end of the fiscal year ►DLI 5 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 MoE has not fully Value for subsidy policy MoE has not fully defined. -- defined. completed Date 14-Mar-2017 07-Dec-2018 07-Dec-2018 -- The Bank is assisting the MoE in drafting a ToR for procuring a consultant for DLI 5.1. Given the deadline for Comments this DLR has passed , it was agreed that an extension would be required to complete this. 6/26/2019 Page 11 of 11