The World Bank Report No: ISR14371 Implementation Status & Results Tanzania Tanzania - Backbone Transmission Investment Project (P111598) Public Disclosure Copy Operation Name: Tanzania - Backbone Transmission Investment Project Project Stage: Implementation Seq.No: 6 Status: ARCHIVED Archive Date: 06-Jul-2014 (P111598) Country: Tanzania Approval FY: 2011 Product Line: IBRD/IDA Region: AFRICA Lending Instrument: Specific Investment Loan Implementing Agency(ies): TANESCO Key Dates Board Approval Date 26-Aug-2010 Original Closing Date 31-Mar-2015 Planned Mid Term Review Date 30-Sep-2014 Last Archived ISR Date 27-Oct-2013 Effectiveness Date 30-Mar-2011 Revised Closing Date 31-Mar-2015 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective is to increase availability, reliability and quality of grid based power supply to northern regions of Tanzania. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost Component 1: Construction of the Transmission Line 64.00 Component 2: Technical Assistance to TANESCO 10.00 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Moderately Unsatisfactory Public Disclosure Copy Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Unsatisfactory Overall Risk Rating Implementation Status Overview The Backbone project is financed jointly by four institutions including the AfDB, JICA, EIB, Korean Economic Development Fund (EDF - under the Korean EximBank) and IDA. During the current reporting period (August 2013-May2014), the project progress is noticeable.The contracts for the three Lots related to the contraction of the 400 kV transmission line – Lot 1: Iringa-Dodoma (IDA); Lot 2: Dodoma-Singida (AfDB-JICA); and Lot 3: Singida -Shinyanga (EIB), were signed in late August 2013. The Tx lines construction contracts (all three Lots) became effective in October 2013. The contractors for all three Lots were mobilized and started construction activities, including a) the finalization of routes alignments; b) manufacturing of towers; and c) shipment of equipment. The construction of substations (financed by the Korea EDF) will start in about six months (November 2014) to allow for the finalization of the alignment of routes, connecting the substations, although the contract for the construction of substations was already signed in May 2013. Page 1 of 8 The World Bank Report No: ISR14371 On behalf of all financiers of the Backbone project, the WB team carried out the supervision on the entire transmission line route (Iringa-Dodoma-Singida-Shinyanga) in March 2014. The assessment of the project progress was positive. Public Disclosure Copy The IDA financed part of the Backbone project includes two Components. The progress on these components is as follows: Component 1: Construction of Transmission Line (Tx line between Iringa and Dodoma - Lot 1) During the reporting period, July 2013 - April 2014, the contractor submitted the final designs for towers and final rout alignments (already approved by TANESCO). In March-April 2014, the contractor was performing manufacturing acceptance tests in India. TANESCO has participated in the tests and signed acceptance certificates. The next milestones include the construction of tower foundations (July-August, 2014) and erection of towers (beginning in September). Component 2: Technical Assistance to TANESCO Under Component 2, the two main consultancy contracts were signed i) for the supervision consultancy of the Backbone construction, and ii) for the Singida Wind Farm Transaction Adviser. The Transaction Advisory Consultant for the Singida Wind Farm project has completed Phase 1 of the contract in January 2014. The Phase 1 final report was approved by TANESCO in February 2014. In March 2014, TANESCO signed Phase 2 of the Transaction Advisory Contract opening the stage for commercial negotiations on a Power Purchase Agreement with the developer, Aldwych International. The implementation of the Resettlement Action Plan has been completed (compared to the 50% completion rate reported in Dec. 2012). Because of the delay of procurement activities during 2011-2012, the extension of the project closing date will be required from March 30, 2014 to June 30, 2016. The Tx lines construction contracts (in all three Lots) require 30 months (from the contract effectiveness) to complete the construction activities. Locations Country First Administrative Division Location Planned Actual Tanzania Singida Region Ulyampiti Tanzania Singida Region Ulemo Tanzania Singida Region Tumuli Tanzania Singida Region Puma Tanzania Shinyanga Region Ngunga Tanzania Shinyanga Region Negezi Public Disclosure Copy Tanzania Iringa Region Nduli Tanzania Ruvuma Region Ndolela Tanzania Mbeya Region Nala Tanzania Singida Region Muhalala Tanzania Singida Region Mtipa Tanzania Dodoma Region Mtera Page 2 of 8 The World Bank Report No: ISR14371 Country First Administrative Division Location Planned Actual Tanzania Tabora Region Msisi Public Disclosure Copy Tanzania Dodoma Region Mpwapwa District Tanzania Dodoma Region Mlowa Tanzania Singida Region Mkwese Tanzania Singida Region Mkonze Tanzania Singida Region Mgori Tanzania Tabora Region Mbutu Tanzania Singida Region Maweni Tanzania Singida Region Manyoni District Tanzania Singida Region Manyoni Tanzania Rukwa Region Manga Tanzania Iringa Region Makungu Tanzania Dodoma Region Makatapora Tanzania Dodoma Region Kisima Tanzania Singida Region Kisaki Tanzania Shinyanga Region Kalitu Tanzania Iringa Region Izazi Tanzania Singida Region Issuna Public Disclosure Copy Tanzania Iringa Region Iringa Rural District Tanzania Singida Region Iramba District Tanzania Singida Region Ikungi Tanzania Tabora Region Igurubi Tanzania Tabora Region Igunga District Tanzania Singida Region Igugunu Tanzania Dodoma Region Ibihwa Page 3 of 8 The World Bank Report No: ISR14371 Tanzania Shinyanga Region Ibadakuli Tanzania Dodoma Region Dodoma Rural District Public Disclosure Copy Tanzania Dodoma Region Chipogolo Tanzania Dodoma Region Chikuyu Tanzania Dodoma Region Bahi Tanzania Ruvuma Region Barabarani Tanzania Dodoma Region Bahi District Tanzania Singida Region Unyambwa Tanzania Tabora Region Makomero Tanzania Shinyanga Region Kishapu District Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Maximum transmission capacity in the Megawatt Value 200.00 200.00 1200.00 Subsystem (MW) Date 16-Jul-2010 26-May-2014 31-Mar-2015 Comments This Baseline was recorded Since construction of the during negotiations in July transmission line has not yet 2010 started no improvements in this subsystem have been recorded Reduction in transmission losses in Subsystem Percentage Value 6.00 6.00 3.00 (in percent) Date 16-Jul-2010 27-May-2014 31-Jul-2016 Public Disclosure Copy Comments This Baseline was recorded Construction of the after negotiations in July 2010 transmission line has started. However, the line is not operational as yet. Therefore, no improvement improvements in this subsystem have been recorded Cumulative power outages that are linked to Days Value 7.00 7.00 3.00 malfunctions in the Subsystem Date 16-Jul-2010 27-May-2014 31-Mar-2015 Page 4 of 8 The World Bank Report No: ISR14371 Comments This Baseline was recorded Construction of the during negotiations in July transmission line has started. 2010 However, the line is not operational as yet. Therefore, Public Disclosure Copy no improvement improvements in this subsystem have been recorded Reduction in the number of power outages that Number Value 30.00 30.00 10.00 are linked to malfunctions in the Subsystem (in Date 16-Jul-2010 27-May-2014 31-Jul-2016 absolute numbers) Comments This Baseline was recorded Construction of the during negotiations in July transmission line has started. 2010 However, the line is not operational as yet. Therefore, no improvement improvements in this subsystem have been recorded Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Transmission lines constructed or rehabilitated Kilometers Value 0.00 0.00 447.00 under the project Date 16-Jul-2010 27-May-2014 31-Mar-2015 Comments CORE SECTOR RETROFIT Construction has started. It is -5-30-2014 expected that the erection of towers will start in September 2014. The lines will be constructed during the period of 8 months after the erection of towers. Transmission lines constructed under the Kilometers Value 0.00 0.00 447.00 project Public Disclosure Copy Sub Type Date 16-Jul-2010 27-May-2014 31-Mar-2015 Breakdown Comments CORE SECTOR RETROFIT Construction has started. It is 5-30-2014 expected that the erection of towers will start in September 2014. The lines will be constructed during the period of 8 months after the erection of towers. Transmission line from Iringa to Dodoma Kilometers Value 0.00 0.00 223.76 including FOCL constructed Date 16-Jul-2010 27-May-2014 31-Mar-2015 Page 5 of 8 The World Bank Report No: ISR14371 Comments This Baseline was recorded Construction has started. It is during negotiations in July expected that the erection of 2010 towers will start in September 2014. The lines will be Public Disclosure Copy constructed during the period of 8 months after the erection of towers. Transmission line from Dodoma to Singida Kilometers Value 0.00 0.00 217.00 including FOCL constructed Date 16-Jul-2010 27-May-2014 31-Mar-2015 Comments This Baseline was recorded Construction has started. It is during negotiations in July expected that the erection of 2010 towers will start in September 2014. The lines will be constructed during the period of 8 months after the erection of towers. Transmission line from Singida to Shinyanga Kilometers Value 0.00 0.00 226.00 including FOCL constructed Date 16-Jul-2010 27-May-2014 31-Mar-2015 Comments This Baseline was recorded Construction has started. It is during negotiations in July expected that the erection of 2010 towers will start in September 2014. The lines will be constructed during the period of 8 months after the erection of towers. Substations upgraded Number Value 0.00 0.00 4.00 Date 16-Jul-2010 27-May-2014 31-Mar-2015 Comments This Baseline was recorded Construction not yet started. during negotiations in July Mobilization of the Contractor 2010 started in April , 2014. Contracts were evaluated in parallel to the OHL evaluation. Public Disclosure Copy Timely and satisfactory implementation support Text Value None The implementation support Satisfactorily completion of provided during the construction of the contract has been signed and the transmission line transmission line is effective Date 16-Jul-2010 27-May-2014 31-Mar-2015 Comments This Baseline was recorded The implementation support during negotiations in July contract has been signed and 2010 is effective. The Consultant provides satisfactory support. Page 6 of 8 The World Bank Report No: ISR14371 Staff trained in environmental and social issues Number Value 0.00 0.00 10.00 (number) Date 16-Jul-2010 27-May-2014 31-Mar-2015 Comments This Baseline was recorded Training program at Public Disclosure Copy during negotiations in July preparation phase 2010 Technical feasibility study for hydropower Text Value None The formerly planned FS for Feasibility study completed project completed Rumakali hydropower project has no longer been requested by TANESCO under this project. Date 16-Jul-2010 20-Mar-2014 31-Mar-2015 Comments This Baseline was recorded The FS is no longer during negotiations in July requested by TANESCO 2010 Power generation projects developed Text Value None Two power stations Satisfactory progress in commissioned. development and financing of generation projects Date 16-Jul-2010 27-May-2014 31-Mar-2015 Comments This Baseline was recorded TANESCO commissioned of during negotiations in July a new 100MW gas fired 2010 power station in July 2012. TANESCO commissioned a new HFO fired 60 MW power station in May 2013. TANESCO prepares to commission a new 150 MW Kinyerezi I power plant in December 2014. Data on Financial Performance (as of 27-May-2014) Financial Agreement(s) Key Dates Public Disclosure Copy Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P111598 IDA-47980 Effective 26-Aug-2010 08-Oct-2010 30-Mar-2011 31-Mar-2015 31-Mar-2015 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P111598 IDA-47980 Effective XDR 101.50 101.50 0.00 15.94 85.56 16.00 Disbursement Graph Page 7 of 8 The World Bank Report No: ISR14371 Public Disclosure Copy Key Decisions Regarding Implementation The Backbone project is one of the priority projects for the Government of Tanzania's "Big Results Now" Initiative, the monitoring of which is being carried out by the Prime Minister's Delivery Bureau. The current key priority for the project is to commence the erection of towers to keep the project on schedule to complete the construction milestones on time, targeting the commissioning of the entire Backbone Tx line by June 2016. Restructuring History There has been no restructuring to date. Related Projects There are no related projects. Public Disclosure Copy Page 8 of 8