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: 3 | ARCHIVED on 09-Feb-2018 | ISR30912 | 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  Moderately Satisfactory  Moderately Satisfactory Overall Implementation Progress (IP)  Satisfactory  Satisfactory Overall Risk Rating  Substantial  Substantial Implementation Status and Key Decisions The US$500 million IBRD Loan in support of a power distribution development program for results for Indonesia's power utility, PT Perusahaan Listrik Negara (PLN), was approved by the Board on April 22, 2016 and the Loan became effectiveness on November 18, 2016. The first disbursement under the loan was made on January 9, 2017, for US$ 107.65 million (i.e. 21.5% of loan amount). The next disbursement request from PLN is expected in April 2018, following the completion of the full-year 2017 Independent Verification Report. 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 2/9/2018 Public Disclosure Copy Page 1 of 9 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  Number of new Residential (Household) customers connected (Number (Thousand)) Baseline Actual (Previous) Actual (Current) Value 11180.00 -- 11908.87 Date 01-Jan-2015 -- 30-Jun-2017 Comments Baseline is total number of residential connections in Sumatera in 2014. Actual (Current) is the total number of residential connections across Sumatra at 30 June 2017, 11,908,873; as verified by the IVA. Given that the verified total number of residential connections across Sumatra at 31 Dec 2016 was 11,561,385, the increase in household customer connections in the first six months of 2017 was 347,478. The End Target is the cumulative number of new residential connections over the period FY2016 to FY2020. PHDLIPDOTBL   Additional Length of MV distribution lines (Kilometers) Baseline Actual (Previous) Actual (Current) Value 92716.00 -- 106432.00 Date 01-Jan-2015 -- 30-Jun-2017 Comments IVA recommends that the Baseline figure for 2014 be updated to 91762 km from 92716 km, in order to exclude MV assets that are owned, operated and maintained by the local government owned company PT Muba Electric Power (MEP) in the Musi Banyuasin Regency. This will be assessed and decided on at time of the project's Mid-Term Review. The IVA has verified that the MV distribution line length for Sumatra at 31 December 2017 was 103668 km, and that an additional 2575 km was 2/9/2018 Public Disclosure Copy Page 2 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report Power Distribution Development Program-for-Results (P154805) added in the period 1 January 2017 to 30 June 2017. PHDLIPDOTBL   Number of MV feeder technical interruptions per 100 kilometers (Number) Baseline Actual (Previous) Actual (Current) Value 21.22 -- 8.40 Date 01-Jan-2015 -- 30-Jun-2017 Comments Verification on DLI 3 result shows that PLN achievement for the first 6 months in 2017(8.4) is still less than 50% below the maximum targeted number of medium voltage Feeder interruptions/100 km (21.08). Assuming the rate of interruptions is maintained until end of 2017, PLN is expected not to exceed the maximum number for DLI 3. The IVA has recommended the baseline of permanent interruption/100 km MV lines in 2014 needs to be revised because the 2014 baseline data includes non-PLN assets in Wilayah S2JB. This will be assessed and decided on at time of the project's Mid-Term Review. PHDLIPDOTBL   Additional distribution transformer units (Number) Baseline Actual (Previous) Actual (Current) Value 80130.00 -- 99140.00 Date 01-Jan-2015 -- 30-Jun-2017 Comments IVA report confirms that: (a) 3369 additional distribution transformer units were installed in the first 6 months of 2017 (1 Jan 2017- 30 June 2017); (b) as of 30 June 2017, there was a total of 99,140 distribution transformer units installed in Sumatra. PHDLIPDOTBL   Growth in residential energy sales (Gigawatt-hour (GWh)) Baseline Actual (Previous) Actual (Current) Value 15850.00 -- 9007.22 Date 01-Jan-2015 -- 30-Jun-2017 Comments IVA verified Residential energy sales in Sumatra at 30 June 2017 were 9007.22 GWh, compared to 8842.70 GWh at 30 June 2017, giving a year-on-year increase in residential sales of 164.52 GWh. This shows that PLN’s achievement for DLI 5 from 1 January to 30 June 30 2017 (6 months) only reached about 17% from the year 2017 target. Assuming the average sales growth remains the same until the end of 2017, PLN might achieve only 32% from the targeted growth in residential sales for 2017. The 2014 Baseline figure of 15850 GWh in 2014 needs to be reassessed as part of the Mid Term Review, as does the End Target figure. 2/9/2018 Public Disclosure Copy Page 3 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report Power Distribution Development Program-for-Results (P154805) PHDLIPDOTBL   FY 2016 Annual Work Plan approved (Yes/No) Baseline Actual (Previous) Actual (Current) Value N -- Y Date 01-Jan-2015 -- 30-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 -- 30-Jun-2017 PHDLIPDOTBL   Integrate budgeting with ERP in all Program Wilayahs (Yes/No) Baseline Actual (Previous) Actual (Current) Value N -- N Date 01-Jan-2015 -- 30-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 -- 30-Jun-2017 Comments DLI#9 is not actionable in its present form and needs to be revised. During the Oct-Nov 2017 mission, it was agreed that PLN would prepare the new Planning Guidelines, with enhancements in four key areas, with the schedule for preparing the new guidelines to be sent to the Bank by the next Supervision Mission. During the next mission, PLN and the Bank can discuss further how DLI#9 (worth US$25 million) could be revised. 2/9/2018 Public Disclosure Copy Page 4 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report Power Distribution Development Program-for-Results (P154805) PHDLIPDOTBL  Integrate ERP with budgeting in all Program Wilayas and distribution units (Yes/No) Baseline Actual (Previous) Actual (Current) Value N -- N Date 01-Jan-2015 -- 30-Jun-2017 Comments The contract for the integration work was awarded to a consulting firm in June 2017. PLN advised that the full integration is expected by December 2017. PLN shall report the DLI achievement for 2017 and the Bank will disburse based on satisfactory Program Verification report prepared by the IVA. Results Results Area Intermediate Results Area Improved Access to electricity Improved quality of service 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 12,529.00 11,908.87 13,177.00 Date 01-Jan-2015 01-Jun-2017 30-Jun-2017 31-Dec-2019 PHINDPDOTBL  Ppl provided wth elec. by hhold conn.–Offgrid/minigrid–Only renewable sources (Number, Custom Breakdown) 2/9/2018 Public Disclosure Copy Page 5 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report Power Distribution Development Program-for-Results (P154805) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 0.00 Date 01-Jan-2015 01-Jun-2017 30-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 11.21 13.10 10.00 Date 01-Jan-2015 01-Jun-2017 29-Sep-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 1,607.00 1,614.39 463.00 Date 01-Jan-2015 01-Jun-2017 29-Sep-2017 31-Dec-2019 PHINDPDOTBL  System average interruptions frequency index (interruptions per customer per year) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 8.63 13.31 14.39 8.11 Date 01-Jan-2015 01-Jun-2017 29-Sep-2017 31-Dec-2019 Overall Comments Intermediate Results Indicators 2/9/2018 Public Disclosure Copy Page 6 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report Power Distribution Development Program-for-Results (P154805) PHINDIRITBL  Distribution lines constructed or rehabilitated under the project (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 92,716.00 95,545.00 106,432.00 104,510.00 Date 01-Jan-2015 01-Jun-2017 30-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 95,545.00 106,432.00 104,510.00 Date 01-Jan-2015 01-Jun-2017 30-Jun-2017 31-Dec-2019 PHINDIRITBL  Annual work plans approved (on time) (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N Y Y Y Date 01-Jan-2015 01-Jun-2017 30-Jun-2017 31-Dec-2019 PHINDIRITBL  Number of MV feeder technical interruptions per 100 km (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 21.22 18.91 8.40 21.02 Date 01-Jan-2015 01-Jun-2017 30-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 01-Jun-2017 01-Jun-2017 31-Dec-2019 PHINDIRITBL  Number of distribution transformer units added (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target 2/9/2018 Public Disclosure Copy Page 7 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report Power Distribution Development Program-for-Results (P154805) Value 80,130.00 86,461.00 99,140.00 97,904.00 Date 01-Jan-2015 01-Jun-2017 30-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-Jun-2017 30-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 17,902.00 9,007.22 21,471.00 Date 31-Dec-2014 01-Jun-2017 30-Jun-2017 31-Dec-2019 Comments IVA verified Residential energy sales in Sumatra at 30 June 2017 were 9007.22 GWh, compared to 8842.70 GWh at 30 June 2017, giving a year-on-year increase in residential sales of 164.52 GWh. This shows that PLN’s achievement for DLI 5 from 1 January to 30 June 30 2017 (6 months) only reached about 17% from the year 2017 target. Assuming the average sales growth remains the same until the end of 2017, PLN might achieve only 32% from the targeted growth in residential sales for 2017. The 2014 Baseline figure of 15850 GWh in 2014 needs to be reassessed as part of the Mid Term Review, as does the End Target figure. PHINDIRITBL  PLN collaborated with development partners in the hiring of an independent verification agent (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N Y Y Y Date 01-Jan-2015 01-Jun-2017 30-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 2/9/2018 Public Disclosure Copy Page 8 of 9 Public Disclosure Copy The World Bank Implementation Status & Results Report Power Distribution Development Program-for-Results (P154805) Date 01-Jan-2015 01-Jun-2017 30-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 Y N Y Date 01-Jan-2015 01-Jun-2017 30-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-Jun-2017 30-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 Y Y Y Date 01-Jan-2015 01-Jun-2017 30-Jun-2017 31-Dec-2019 Overall Comments 2/9/2018 Public Disclosure Copy Page 9 of 9