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: 9 | ARCHIVED on 28-Jun-2019 | ISR37758 | 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 - electrification; improvement in service delivery and reliability; revenue protection program; and technical assistance/capacity building. Improvements in service delivery and reliability. Implementation of some activities (laboratory for live line equipment testing, trucks mounted aerial platforms and tools and accessories for live line maintenance and related training) are quite advanced and are expected to be completed by February 2020. The remaining activities - advanced distribution management system and extension of SCADA were delayed because of budgetary challenges and are expected to be completed by December 2020. 6/28/2019 Page 1 of 7 The World Bank Implementation Status & Results Report KE Electricity Modernization Project (P120014) Component B: Revenue Protection Program. The litigation which had prevented the signing of the contract for the Advanced Metering Infrastructure (AMI) aimed at reducing commercial losses of KPLC has been satisfactorily resolved and the contract has now been signed. Component C1: Last Mile Grid Electrification. Although commencement of electrification construction works was delayed by the inadequate budgetary allocation challenge until early 2019, significant progress has now been made and works are expected to be completed by October 2020. The project is likely to achieve over 250,000 connections against the target of 120,000. With significant cost savings due to economies of scale from bulk procurement of materials, the higher connection numbers can be achieved within the current allocation of US$150m for the component. Component C2: Off-grid Electrification: After initial delays in completing site-specific feasibility studies and preparing the bidding documents, the bidding for the mini-grid installation and operation (total 8 sites) is now at final stage of award. Installation of the mini-grids are expected to be completed by late 2020. Component D: Technical Assistance and Capacity Building: Most of the studies under phase 1 have been completed (national electrification strategy, cost of service study, draft regulations for enhancing service quality). A number of activities under phase 2 are expected to be launched soon (national technical specifications and standardization, service standards for KPLC, power market design study, dispatch guidelines etc). 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 -- Moderate -- Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes Increase electricity access, improve service reliability and strengthen KPLC's financial position IN00720114 ►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 17-Dec-2018 31-Mar-2019 30-Jun-2020 IN00720115 6/28/2019 Page 2 of 7 The World Bank Implementation Status & Results Report KE Electricity Modernization Project (P120014) ►People provided with access to electricity by household connections (Number, Corporate) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 55,255.00 618,750.00 Date 30-Jun-2014 17-Dec-2018 31-Mar-2019 30-Jun-2020 IN00720156 People provided with access to electricity by household connections-Grid (Number, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 55,255.00 618,750.00 Date 30-Jun-2014 17-Dec-2018 31-Mar-2019 30-Jun-2020 IN00720157 ►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 17-Dec-2018 31-Mar-2019 30-Jun-2020 IN00720158 ►KPLC Commercial losses (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 6.70 6.70 7.90 3.70 Date 30-Jun-2014 17-Dec-2018 30-Mar-2019 30-Jun-2020 IN00720159 ►Average outage duration for customers served (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 12.00 12.00 7.96 6.00 Date 30-Jun-2014 17-Dec-2018 31-Mar-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. IN00720160 ►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 IN00720161 ►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 6/28/2019 Page 3 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 Intermediate Results Indicators by Components IDA Guarantee IN00720166 ►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 IN00720170 ►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 IN00720173 ►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 IN00720175 ►Free operational cash flow to debt (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value -10.00 2.35 2.35 6.00 Date 30-Jun-2014 30-Jun-2018 30-Jun-2018 30-Jun-2020 IN00720177 ►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 IN00720178 ►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 6/28/2019 Page 4 of 7 The World Bank Implementation Status & Results Report KE Electricity Modernization Project (P120014) Date 01-Apr-2015 30-Jun-2016 30-Jun-2016 30-Jun-2020 Component D: Technical Assistance and Capacity Building. IN00720165 ►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 06-Dec-2018 30-Jun-2020 IN00720169 ►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 17-Dec-2018 31-Mar-2019 30-Jun-2020 Component C: Electrification Program IN00720164 ►Distribution lines constructed or rehabilitated under the project (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 50.00 3,500.00 Date 01-Apr-2015 17-Dec-2018 31-Mar-2019 30-Jun-2020 IN00720171 Distribution lines constructed under the project (Kilometers, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 50.00 3,500.00 Date 30-Jun-2014 17-Dec-2018 31-Mar-2019 30-Jun-2020 IN00720172 ►Distribution transformers installed (Cumulative) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 1,000.00 Date 30-Jun-2014 17-Dec-2018 31-Mar-2019 31-Dec-2019 IN00720174 ►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 17-Dec-2018 31-Mar-2019 30-Jun-2020 IN00720176 6/28/2019 Page 5 of 7 The World Bank Implementation Status & Results Report KE Electricity Modernization Project (P120014) ►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 17-Dec-2018 31-Mar-2019 30-Jun-2020 Component B: Revenue Protection Program (RPP) IN00720163 ►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 17-Dec-2018 31-Mar-2019 31-Dec-2019 IN00720168 ►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 Date 01-Apr-2015 17-Dec-2018 31-Mar-2019 30-Jun-2020 Component A: Improvement in Service Delivery and Reliability. IN00720162 ►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 17-Dec-2018 31-Mar-2019 30-Jun-2020 IN00720167 ►Substations added to the SCADA/EMS (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 86.00 86.00 0.00 146.00 Date 30-Jun-2014 17-Dec-2018 31-Mar-2019 30-Jun-2020 Data on Financial Performance Disbursements (by loan) 6/28/2019 Page 6 of 7 The World Bank Implementation Status & Results Report KE Electricity Modernization Project (P120014) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P120014 IDA-55870 Effective USD 250.00 250.00 0.00 95.32 144.90 40% P120014 TF-A0579 Effective USD 7.50 7.50 0.00 0.00 7.50 0% Key Dates (by loan) 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 6/28/2019 Page 7 of 7