The World Bank Report No: ISR15368 Implementation Status & Results Iraq IQ - Emergency Electricity Reconstruction Project (EERP) (P087734) Public Disclosure Copy Operation Name: IQ - Emergency Electricity Reconstruction Project (EERP) Project Stage: Implementation Seq.No: 16 Status: ARCHIVED Archive Date: 24-Sep-2014 (P087734) Country: Iraq Approval FY: 2007 Product Line: IBRD/IDA Region: MIDDLE EAST AND NORTH AFRICA Lending Instrument: Emergency Recovery Loan Implementing Agency(ies): MINISTRY OF ELECTRICITY Key Dates Board Approval Date 29-Mar-2007 Original Closing Date 30-Jun-2011 Planned Mid Term Review Date 30-Aug-2013 Last Archived ISR Date 03-Mar-2014 Effectiveness Date 17-Dec-2007 Revised Closing Date 30-Sep-2014 Actual Mid Term Review Date 05-Dec-2014 Project Development Objectives Project Development Objective (from Project Appraisal Document) The objectives of the project are to: (i) alleviate the current power supply shortfall by restoring the base load generation capacity of the Hartha Power Station Units 2 and 3 to 400 MW; and (ii) lay the groundwork for improved power system planning and fuel supply by providing the tools and other support necessary to enhance in-house capability to prepare, implement and operate current and future projects. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Rehabilitation of Hartha Power Station Units 2 and 3 124.00 Support Services 6.00 Overall Ratings Public Disclosure Copy Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Unsatisfactory Overall Risk Rating NA Implementation Status Overview This ISR is being prepared to record recent decisions with respect to restructuring and extension of the Project. Ministry of Finance requested that the closing date of June 30, 2014 be extended by 12 months, to June 30, 2015, to allow completion of the Project and full achievement of PDOs. The Bank team undertook a progress review meeting at the Hartha power station on May 15, 2014 in order to assess current progress and the likelihood of the Project being Page 1 of 8 The World Bank Report No: ISR15368 completed by the new Project Closing Date requested by the Government of Iraq. This followed a formal supervision mission for the Project in December 2013, and further progress review meetings with Ministry of Electricity in Baghdad in March 2014. The current status of the Project is as follows: - Overall progress is estimated at 62% complete (based on calculation of physical progress and disbursements by the Owner's Engineer. Physical progress alone is estimated at 69% Public Disclosure Copy complete). - Disbursements have accelerated over the past several months, and now stand at $58.14 M ($62.75 M including ITF component), or 47%. - Supply of goods and equipment (which comprises almost 80% of the Hartha rehabilitation contract) is now well advanced, at 73%. This is an improvement from 50% complete in March 2014. - The Project Contractor has committed to completion of the Project by June 30, 2015, and is increasing staffing on site to 3 shifts on all critical path works. The Contractor is also planning an additional 183 staff on site by the end of July 2014. Progress is improving and the Project remains generally on track to achieve its PDOs, which remain highly relevant, however it will not do this by the current Project Closing Date. Given the recent agreement reached between the Government and Contractor regarding Adjustments to the Contract Price (ACPs) for additional goods and works that could pave the way for possible completion of the Project by June 30, 2015, the Bank approved an extension of the Project Closing Date to September 30, 2014. Further extension of the Project Closing Date to June 30, 2015 will be considered based on assessment of prospective implementation progress. Locations Country First Administrative Division Location Planned Actual Iraq Not Entered Al Harithah Iraq Not Entered Madinat ar Rashid Iraq Not Entered Al Hartha Power Station Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Capacity Development - Project Planning Percentage Value 0.00 100.00 100.00 Software being utilized Date 06-Mar-2007 27-Jun-2014 30-Sep-2014 Comments Training has been provided, Public Disclosure Copy including through 5 individual consultants working in MoE offices over a period of 18 months. Project planning software and improved technical and contractual documentation has been accepted and is now being used by MoE Page 2 of 8 The World Bank Report No: ISR15368 Capacity Building - Standard Environmental Percentage Value 0.00 95.00 100.00 and Social Management Approach adopted Date 06-Mar-2007 27-Jun-2014 30-Sep-2014 and under implementation for EERP Project, Comments Training has been delivered and disseminated to other Projects within MoE Public Disclosure Copy management and the environmental management plan is being satisfactorily implemented. The Hartha EMP has been shared with other Project's and interest in more widespread development of sound environmental and social practice has been reported. This indicator is 95% to allow for the need to continue implementation of the EMP, and will be rated as 100% once the project is closed with satisfactory safeguards status. Capacity Building - Training in Project Percentage Value 0.00 85.00 100.00 Management and Contract Management Date 06-Mar-2007 27-Jun-2014 30-Sep-2014 delivered and Project and Contract Comments - Contracted Project and Management practice on the Hartha project improved. Contract Management has been completed. - World Bank workshop on Project and Contract Management has been completed. - On-the-job training in project and contract management is ongoing. - The Bank has witnessed significant improvement in the Public Disclosure Copy PMT over the past two years - in understanding its contractual responsibilities and executing these, and in holding the Contractor accountable for its responsibilities on the Hartha Project. Restore original capacity of Unit 2 and 3. Text Value 0 MW 400 MW Date 06-Mar-2007 27-Jun-2014 30-Sep-2014 Page 3 of 8 The World Bank Report No: ISR15368 Comments Physical progress continues, and there is the increasing likelihood that the Project will be commissioned, but not by Public Disclosure Copy the Project Closing Date. Shortfall in electricity supply alleviated - Percentage Value 6000.00 4000.00 4000.00 demand/supply gap reduced and Hartha power Date 07-Mar-2007 27-Jun-2014 30-Sep-2014 station contributing Comments In 2007 peak demand was Currently Iraq has a peak 11.6 GW, whereas available demand of 14GW, and supply was 5.6 GW available supply of 10GW (installed), resulting in a (installed), and has met its supply shortfall of 6000MW. target of a reduction in the demand supply gap even though demand has increased significantly. The Hartha power station has not yet contributed to this reduction,but once it is commissioned will meet 10% of the current demand-supply gap. Capacity Building - Improvement of Yes/No Value No Yes Yes Environmental and Social Safeguards Date 06-Mar-2007 27-Jun-2014 30-Sep-2014 Management during ongoing operations. Comments Operations management has been strengthened through the adoption of an EMP for operations. This has been disseminated to other project sites to improve operations management across various projects. Capacity Development - Improved technical Yes/No Value No Yes Yes Public Disclosure Copy and contractual documentation adopted and Date 06-Mar-2007 27-Jun-2014 30-Sep-2014 being used as standard for generation and Comments 5 individual consultants transmission projects worked with project teams in Baghdad over a period of 18 months to develop and adopt improved standardizeddocumentation for procurement of large investment projects. Standard technical Page 4 of 8 The World Bank Report No: ISR15368 specifications, procurement and contract documentation are now being used for large generation and transmission Public Disclosure Copy projects. Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Supply of Goods and Equipment completion Percentage Value 0.00 75.00 100.00 rate Date 01-Oct-2010 27-Jun-2014 30-Sep-2014 Comments Refurbishment Works completion rate Percentage Value 0.00 58.00 100.00 Date 01-Oct-2010 27-Jun-2014 30-Sep-2014 Comments Procurement and Installation of DCS Percentage Value 0.00 10.00 100.00 Date 01-Oct-2010 27-Jun-2014 30-Sep-2014 Comments DCS Procured and being shipped (80% of disbursements reached) Erection, testing and commissioning of Percentage Value 0.00 75.00 100.00 mechanical works for two units completion rate Date 01-Oct-2010 27-Jun-2014 30-Sep-2014 Comments Civil Works completion rate Percentage Value 0.00 17.00 100.00 Date 01-Oct-2010 27-Jun-2014 30-Sep-2014 Comments Additional TPE resources are being mobilized to move to 3 shifts and accelerate these works. Electrical System Installation completion rate Percentage Value 0.00 11.00 100.00 Public Disclosure Copy Date 01-Oct-2010 27-Jun-2014 30-Sep-2014 Comments Additional TPE resources are being mobilized to move to 3 shifts and accelerate these works. Fuel Oil Tanks Erection Percentage Value 0.00 86.00 100.00 Date 01-Oct-2010 27-Jun-2014 30-Sep-2014 Comments Close to completion Page 5 of 8 The World Bank Report No: ISR15368 Consulting contracts to provide support in Percentage Value 0.00 100.00 100.00 project planning, documentation, Date 01-Aug-2011 27-Jun-2014 30-Sep-2014 implementation and operations Comments Consulting support is now Public Disclosure Copy complete. Existing contracts were closed on 30 Jun 2013 in line with the closure of the ITF component ofthe Project. Remaining consulting support (EMP implementation (Dome) and Supervision (ELC)) is being undertaken under the IDA component of the Project. Supervision Consultant Hired, and supervision Percentage Value 0.00 80.00 100.00 activities being undertaken Date 01-Jan-2010 12-Feb-2014 30-Sep-2014 Comments ELC has signed a new contract for supervision services under the IDA component of the Project (given that its previous contract hadexpired and was funded under the ITF component of the Project). ELC continues to perform well. Unit 3 Boiler Erection Percentage Value 0.00 13.00 100.00 Date 01-Oct-2010 12-Feb-2014 30-Sep-2014 Comments Additional TPE staff are on site this month and works are being accelerated through shift work. Unit 2 Boiler Erection Percentage Value 0.00 66.00 100.00 Public Disclosure Copy Date 01-Oct-2010 27-Jun-2014 30-Sep-2014 Comments Progress continues on Unit 2 boiler erection. Now 66% complete. Qualified contractor appointed and works Text Value Qualified contractor appointed 100 commenced for rehabilitation works underway Date 06-Mar-2007 01-Oct-2010 30-Sep-2014 Comments Contractor appointed and works mobilized in Oct 2010. Page 6 of 8 The World Bank Report No: ISR15368 Data on Financial Performance (as of 20-Aug-2014) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date Public Disclosure Copy P087734 IDA-42890 Effective 29-Mar-2007 16-Apr-2007 17-Dec-2007 30-Jun-2011 30-Sep-2014 P087734 TF-57818 Closed 04-Apr-2007 04-Apr-2007 04-Apr-2007 30-Sep-2010 30-Jun-2013 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P087734 IDA-42890 Effective USD 124.00 124.00 0.00 58.61 67.44 47.00 P087734 TF-57818 Closed USD 6.00 4.60 1.40 4.60 0.00 100.00 Disbursement Graph Public Disclosure Copy Key Decisions Regarding Implementation Progress is improving and the Project Development Objectives remain highly relevant. Although the Government of Iraq has requested an extension of the Project Closing Date to June 30, 2015, the project was extending to September 30, 2014 and any further extension will be considered taking account progress on the ground and likelihood of achieving the Project Development Objectives. Restructuring History Level two Approved on 24-Aug-2010, Level two Approved on 28-Jun-2012, Level 2 CD Decision on 22-Feb-2014, Level 2 RVP Decision on 27-Jun-2014 Related Projects Page 7 of 8 The World Bank Report No: ISR15368 There are no related projects. Public Disclosure Copy Public Disclosure Copy Page 8 of 8