Public Disclosure Copy The World Bank Implementation Status & Results Report Power Distribution Development Program-for-Results (P154805) Power Distribution Development Program-for-Results (P154805) EAST ASIA AND PACIFIC | Indonesia | Energy & Extractives Global Practice | IBRD/IDA | Program-for-Results | FY 2016 | Seq No: 2 | ARCHIVED on 13-Jun-2017 | ISR27791 | Implementing Agencies: Program Development Objectives Program Development Objective (from Program-for-Results Appraisal Document) The Project's development objective is to increase access to electricity services and to improve the efficiency and reliability of their delivery in selected areas of Indonesia. Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Satisfactory  Moderately Satisfactory Overall Implementation Progress (IP)  Moderately Satisfactory  Satisfactory Overall Risk Rating  Substantial  Substantial Implementation Status and Key Decisions The US$500 million IBRD Loan in support of a power distribution development program for results for Indonesia's power utility, PT Perusahaan Listrik Negara (PLN), was approved by the Board on April 22, 2016 and the Loan became effectiveness on November 18, 2016. The first disbursement of US$107.65 million was made on January 9, 2017 and a review of the Independent Verification Agent's report by the Bank is in progress to confirm the achievement of further Program results which would enable the second disbursement by June 30, 2017. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P154805 IBRD-86100 Effective USD 500.00 500.00 0.00 107.65 392.35 22% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P154805 IBRD-86100 Effective 22-Apr-2016 20-May-2016 18-Nov-2016 30-Apr-2020 -- Risks 6/13/2017 Public Disclosure Copy Page 1 of 8 Public Disclosure Copy The World Bank Implementation Status & Results Report Power Distribution Development Program-for-Results (P154805) Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  Moderate  Moderate Macroeconomic  --  Moderate  Moderate Sector Strategies and Policies  --  Moderate  Moderate Technical Design of Project or Program  --  Moderate  Moderate Institutional Capacity for Implementation and Sustainability  --  Moderate  Moderate Fiduciary  --  Substantial  Substantial Environment and Social  --  Moderate  Moderate Stakeholders  --  Moderate  Moderate Other  --  --  -- Overall  --  Substantial  Substantial Disbursement Linked Indicators (DLI) PHDLIPDOTBL  Additional number of customers (Number (Thousand)) Baseline Actual (Previous) Actual (Current) Value 11180.00 -- 12529.00 Date 01-Jan-2015 -- 01-Jun-2017 PHDLIPDOTBL   Additional Length of MV distribution lines (Kilometers) Baseline Actual (Previous) Actual (Current) Value 92716.00 -- 95945.00 Date 01-Jan-2015 -- 01-Jun-2017 Comments Actuals to be carefully reviewed based on the IVA report PHDLIPDOTBL   Number of MV feeder technical interruptions per 100 kilometers (Number) Baseline Actual (Previous) Actual (Current) 6/13/2017 Public Disclosure Copy Page 2 of 8 Public Disclosure Copy The World Bank Implementation Status & Results Report Power Distribution Development Program-for-Results (P154805) Value 21.22 -- 18.91 Date 01-Jan-2015 -- 01-Jun-2017 PHDLIPDOTBL   Additional distribution transformer units (Number) Baseline Actual (Previous) Actual (Current) Value 80130.00 -- 86461.00 Date 01-Jan-2015 -- 01-Jun-2017 Comments Actuals to be carefully reviewed based on the IVA report PHDLIPDOTBL   Growth in residential energy sales (Gigawatt-hour (GWh)) Baseline Actual (Previous) Actual (Current) Value 15850.00 -- 17902.00 Date 01-Jan-2015 -- 01-Jun-2017 PHDLIPDOTBL   FY 2016 Annual Work Plan approved (Yes/No) Baseline Actual (Previous) Actual (Current) Value N -- Y Date 01-Jan-2015 -- 01-Jun-2017 PHDLIPDOTBL   PLN has collaborated with development partners in the recruitment of an independent verification agent (Yes/No) Baseline Actual (Previous) Actual (Current) Value N -- Y Date 01-Jan-2015 -- 01-Jun-2017 6/13/2017 Public Disclosure Copy Page 3 of 8 Public Disclosure Copy The World Bank Implementation Status & Results Report Power Distribution Development Program-for-Results (P154805) PHDLIPDOTBL   Integrate budgeting with ERP in all Program Wilayahs (Yes/No) Baseline Actual (Previous) Actual (Current) Value N -- N Date 01-Jan-2015 -- 01-Jun-2017 Comments PLN is in the process of linking the budgeting system with ERP in all Wilayahs in Indonesia. Piloting has been completed at several PLN regional offices including S2JB office of Sumatra Region. Next step: The target is to have the full linkage at all PLN Wilayah by the end of September 2017. PHDLIPDOTBL   Issue revised planning guidelines acceptable to the Bank (Yes/No) Baseline Actual (Previous) Actual (Current) Value N -- N Date 01-Jan-2015 -- 01-Jun-2017 Comments The original action cannot be achieved and PLN will inform the Bank of its “in-principle” decision on whether to work with the Bank on a revision of the DLI or to have the allocated loan amount canceled. PHDLIPDOTBL   Integrate planning software with GIS facilities (Yes/No) Baseline Actual (Previous) Actual (Current) Value N -- N Date 01-Jan-2015 -- 01-Jun-2017 Comments No progress on this action pending internal agreement in PLN on the software to be acquired. PLN Sumatra Directorate and Corporate IT to discuss and reach agreement and to provide the Bank with updated action plan Results Results Area Intermediate Results Area Improved Access to electricity Improved quality of service 6/13/2017 Public Disclosure Copy Page 4 of 8 Public Disclosure Copy The World Bank Implementation Status & Results Report Power Distribution Development Program-for-Results (P154805) Increased efficiency Improved power consumption by residential customers Institutional strengthening and capacity building Project Development Objective Indicators PHINDPDOTBL  People provided with new or improved electricity service (Number, Corporate) Baseline Actual (Previous) Actual (Current) End Target Value 11,180.00 11,180.00 12,529.00 13,177.00 Date 01-Jan-2015 01-Jan-2015 01-Jun-2017 31-Dec-2019 PHINDPDOTBL  Ppl provided wth elec. by hhold conn.–Offgrid/minigrid–Only renewable sources (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 0.00 Date 01-Jan-2015 01-Jan-2015 01-Jun-2017 31-Dec-2019 PHINDPDOTBL  Electricity losses per year in the project area (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 11.92 11.92 11.21 10.00 Date 01-Jan-2015 01-Jan-2015 01-Jun-2017 31-Dec-2019 PHINDPDOTBL  System average interruption duration index (SAIDI) in minutes per customer year (Minutes, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 493.00 493.00 1,607.00 463.00 Date 01-Jan-2015 01-Jan-2015 01-Jun-2017 31-Dec-2019 6/13/2017 Public Disclosure Copy Page 5 of 8 Public Disclosure Copy The World Bank Implementation Status & Results Report Power Distribution Development Program-for-Results (P154805) PHINDPDOTBL  System average interruptions frequency index (interruptions per customer per year) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 8.63 8.63 13.31 8.11 Date 01-Jan-2015 01-Jan-2015 01-Jun-2017 31-Dec-2019 Overall Comments Both SAIDI and SAIFI indicators are below baseline and target levels. It seems that as the measurement of these indicators is being improved the real levels of performance is turning out to be worse than the assessed baselines. The indicators will be expected to improve when: (i) all the Distribution Control Centers are uprated to Supervisory and Control Data Acquisition (SCADA) functionality; and (ii) when the GIS data base used to compute SAIDI/SAIFI is completed in all Wilayahs by December 2018. Intermediate Results Indicators PHINDIRITBL  Distribution lines constructed or rehabilitated under the project (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 92,716.00 92,716.00 95,545.00 104,510.00 Date 01-Jan-2015 01-Jan-2015 01-Jun-2017 31-Dec-2019 PHINDIRITBL  Distribution lines constructed under the project (Kilometers, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 92,716.00 92,716.00 95,545.00 104,510.00 Date 01-Jan-2015 01-Jan-2015 01-Jun-2017 31-Dec-2019 PHINDIRITBL  Annual work plans approved (on time) (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N Y Y Date 01-Jan-2015 01-Jan-2015 01-Jun-2017 31-Dec-2019 6/13/2017 Public Disclosure Copy Page 6 of 8 Public Disclosure Copy The World Bank Implementation Status & Results Report Power Distribution Development Program-for-Results (P154805) PHINDIRITBL  Number of MV feeder technical interruptions per 100 km (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 21.22 21.22 18.91 21.02 Date 01-Jan-2015 01-Jan-2015 01-Jun-2017 31-Dec-2019 PHINDIRITBL  Percentage of planned capital expenditures realized (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 82.00 82.00 82.00 85.00 Date 31-Dec-2014 31-Dec-2014 01-Jun-2017 31-Dec-2019 PHINDIRITBL  Number of distribution transformer units added (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 80,130.00 80,130.00 86,461.00 97,904.00 Date 01-Jan-2015 01-Jan-2015 01-Jun-2017 31-Dec-2019 PHINDIRITBL  Increase in distribution transformer capacity (MVA) (Kilovolt-Amphere(KVA), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 7,981,000.00 7,981,000.00 7,981,000.00 9,717,000.00 Date 01-Jan-2015 01-Jan-2015 01-Jun-2017 31-Dec-2019 PHINDIRITBL  Increased volume in power sales to residential customers (GWh) (Gigawatt-hour (GWh), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 15,850.00 15,850.00 17,902.00 21,471.00 Date 31-Dec-2014 31-Dec-2014 01-Jun-2017 31-Dec-2019 PHINDIRITBL  PLN collaborated with development partners in the hiring of an independent verification agent (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target 6/13/2017 Public Disclosure Copy Page 7 of 8 Public Disclosure Copy The World Bank Implementation Status & Results Report Power Distribution Development Program-for-Results (P154805) Value N Y Y Y Date 01-Jan-2015 16-Sep-2016 01-Jun-2017 31-Dec-2019 PHINDIRITBL  Integrate budgeting with ERP in participating Wilayahs (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N N Y Date 01-Jan-2015 01-Jan-2015 01-Jun-2017 31-Dec-2019 PHINDIRITBL  Issue revised distribution planning guidelines acceptable to the Bank (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N Y Y Date 01-Jan-2015 01-Jan-2015 01-Jun-2017 31-Dec-2019 PHINDIRITBL  Integrate distribution planning software with GIS facilities (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N N Y Date 01-Jan-2015 01-Jan-2015 01-Jun-2017 31-Dec-2019 PHINDIRITBL  Conduct procurement audits for at least 15% of contracts issued by each procuring unit and share results with the Bank (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N Y Y Date 01-Jan-2015 01-Jan-2015 01-Jun-2017 31-Dec-2019 Overall Comments 6/13/2017 Public Disclosure Copy Page 8 of 8