The World Bank Report No: ISR10127 Implementation Status & Results Burundi Multisectoral Water and Electricity Infrastructure Project (P097974) Public Disclosure Copy Operation Name: Multisectoral Water and Electricity Infrastructure Project Project Stage: Implementation Seq.No: 11 Status: ARCHIVED Archive Date: 05-Jun-2013 (P097974) Country: Burundi Approval FY: 2008 Product Line: IBRD/IDA Region: AFRICA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 13-May-2008 Original Closing Date 30-Jun-2013 Planned Mid Term Review Date 16-Apr-2012 Last Archived ISR Date 01-Dec-2012 Effectiveness Date 23-Sep-2008 Revised Closing Date 30-Jun-2013 Actual Mid Term Review Date 14-Jun-2012 Project Development Objectives Multisectoral Water and Electricity Infrastructure Project (P097974) Project Development Objective (from Project Appraisal Document) The proposed project development objective (PDO) is to: (a) increase access to water supply services in peri-urban areas of Bujumbura; (b) increase the reliability and quality of electricity services; (c) increase the quality and reliability of water supply services, with primary focus on Bujumbura; and (d) strengthen REGIDESO financial sustainability. Has the Project Development Objective been changed since Board Approval of the Program? Yes No Burundi - Energy Efficiency Project (P117225) Global Environmental Objective (from Project Appraisal Document) The project’s global environmental objective is to selectively improve the energy efficiency of buildings in Bujumbura city and to strengthen the policy frameworks for energy efficiency. The project will result in GHG emission reductions from the energy saved through the use of energy efficient equipments. The GEF energy efficiency project will be operationally blended with electricity sector investments under the IDA financed Multisectoral Water and Electricity Infrastructure Project (MSWEIP). The MSWEIP was approvedby the World Bank Board of Directors on May 13, 2008, and is currently been implemented by the energy and water utility REGIDESO. Public Disclosure Copy The project development objective of the MSWEIP is to: (i) increase access to water supply services in peri-urban areas of Bujumbura; (ii) increase reliability and quality of electricity services; (iii) increase water supply quality and reliability in Bujumbura; and (iv) strengthen REGIDESO’s financial sustainability. The MSWEIP is helping REGIDESO to restore its financial and commercial viabilityand the quality and continuity of services in the face of the increasing demand from individual consumers and economic agents. The MSWEIP has been designed to provide a balance between immediate needs and medium- to long-term planning. It addresses to the urgent need to fill the current gaps between supply and demand in both electricity and water supply. At the same time, the project supports long term planning activities and studies, as well as the strengthening of the operational capacity of the main sector institutions in order to avoid or effectively reduce future gaps. Has the Global Environmental Objective been changed since Board Approval of the Program? Yes No Page 1 of 7 The World Bank Report No: ISR10127 Component(s) Component Name Component Cost Component 1: Electricity 29.50 Public Disclosure Copy Component 2: Water 14.10 Component 3: Institutional Strengthening of REGIDESO and MWEM 3.30 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory Overall Risk Rating Low Implementation Status Overview Based on January 2013 implementation support mission and the quarterly report of March 31, 2013, the team rates the project implementation performance as marginally satisfactory. This is due to accumulated delays in procuring and implementing major contracts and poor progress on revenue collection efficiency of REGIDESO (about 74% out of a target of 93%). Now, all these delays are being addressed and all the major investment and rehabilitation works have been completed and commissioned. In fact, about 96 percent (reference to SDR curve in disbursement portal) of the grant has been disbursed and about 100 percent is committed. The project is likely to achieve all its objectives with no significant shortcomings. The projections indicate that the total grant amount will be fully disbursed by June 30, 2013, the expected closing date. Most of the project target indicators for the water component have been achieved. On the electricity side, most of the project target indicators for electricity were also met with delay with the exception of the additional electricity production by existing 5.5 MW diesel plant which scored 2.8 GWh/year out of a target of 11. This is due to delay in procuring fuel for the plant and breakages of one of the four generators. Furthermore, on the capacity building component, the project has accumulated delays in implementing key recommendation of the external audit of performance contract signed between the government of Burundi and REGIDESO and the revenue collection for FY 12 by REGIDESO is still below target (74% out of a target of 93%). Currently, 14 of 18 key target indicators have been reached. These included (i) 128,940 additional people gained access to standposts or private water connections in selected peri- urban areas of Bujumbura out of a target of 121,440, (ii) strategic sector plans for water and electricity were prepared , (iii) electricity technical and non technical electricity losses per year reduced from 24% in 2008 to 18.8% in 2012 out of 19% target, (iv) non-revenue water at REGIDESO reduced from 45% in 2008 to 25% in 2012 out of a target of 22% (very ambitious target), (v) water production capacity (m3/day) increased from 66,000 to 96,000 cubic meters per day, (vi) full coverage of operations and maintenance costs (including depreciation) of REGIDESO through revenues (101% out of a target 100%, thanks to new tariff revision) and (vii) signing of 130 delegated standposts management contracts in Bujumbura between REGIDESO and private operators out of a target of 130. On institutional strengthening, on the basis of a comprehensive tariff study, the Government increased Public Disclosure Copy water tariffs in two phases to more cost reflective levels in 2011 and 2012. The first phase of tariff increase was undertaken since September 2011 and the second phase of the progressive tariff revisions took place on March 1, 2012. On the electricity sector, the medium term outlook of insufficient electricity supply to meet fast growing demand is still valid. Currently, electricity demand is increasing at between 10-12 percent per year However, there is daily load shedding of between 20-30MW. This situation is an impediment to the Burundi economic and growth, and limits investments. The project supported detailed feasibility of the two best evaluated hydropower sites (Jiji and Mulembwe). The estimated output is about 50 MW capacity (both combined) which will offer a credible low-cost alternative to bridge some of the expected medium-term supply deficit before larger hydro developments such as Rusizi III and Rusumo falls can be made operational. On October 26, 2012, the Bank has approved a country assistance strategy for Burundi for FY13-16 which foresees the Jiji-Mulembwe Hydropower project for about US$ 70 million. The current cost estimate for the development of Jiji-Mule project including the transmission line to Bujumbura stands at about US$200 million (to be confirmed with the ongoing sites investigation). The EIB (European Investment Bank) has confirmed its interest in co-financing the Jiji and Mulembwe hydropower project and its associated transmission lines. The detailed site investigation and tender documents, including for the transmission line, are being supported the Dutch cooperation through the Embassy of the Kingdom of Netherlands. Page 2 of 7 The World Bank Report No: ISR10127 Furthermore, the IDA Emergency Recovery Project ($15 million) includes components for (ii) the supply and installation of diesel engines representing additional 5 MW of thermal generating capacity to be operational by early July 2013. This will complement the effort being made by REGIDESO and GoB through the existing 10 MW (diesel generator plant) power purchase agreement signed between INTERPETROL and REGIDESO/GOB to start in May 2013; the rehabilitation and expansion of REGIDESO’s medium voltage Public Disclosure Copy transmission and distribution system; the rehabilitation of exiting hydropower plants; the installation of 15,0000 pre-payment meters, and fuel for the diesel plant for approximately one year of operation. Locations Country First Administrative Division Location Planned Actual Burundi Bujumbura Mairie Bujumbura Results Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Operating cost coverage ratio in utilities Percentage Value 101.00 100.00 targeted by the project Date 07-Apr-2008 15-Apr-2013 30-Jun-2013 Comments Baseline data N/A Number of people in urban areas provided with Number Value 19250.00 128940.00 134200.00 access to Improved Water Sources under the Date 07-Apr-2008 15-Apr-2013 30-Jun-2013 project Comments Water distribution network Currently130 public works is being extended standpipes out of a target of towards the northern 130 are operational and are periphery and will be managed by private operators completed by December 2012 with a management contract signed between REGIDESO and the operator. At this trend, the target will be achieved by June 30, 2013. Public Disclosure Copy Global Environmental Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Unplanned power interruptions (measured as Text Value 3,100 1000 800 minutes of unplanned MV interruptions per Date 07-Apr-2008 15-Apr-2013 30-Jun-2013 quarter) Comments The rehabilitation works of The number of unplanned electricity transmission and power interruptions has been distribution networks is going reduced by recent network on and will be completed by rehabilitation works, but still December 2012. above target. Page 3 of 7 The World Bank Report No: ISR10127 Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Improved community water points constructed Number Value 35.00 130.00 130.00 Public Disclosure Copy or rehabilitated under the project Date 07-Apr-2008 15-Apr-2013 30-Jun-2013 Comments Additional 58 public 45 existing public standpoints standpipes have been built by rehabilitated & 85 additional the project and 72 others installed were rehabilitated Number of water utilities that the project is Number Value 0.00 1.00 1.00 supporting Date 07-Apr-2008 15-Apr-2013 30-Jun-2013 Comments REGIDESO is national water and electricity utility operating in urban centers in Burundi. Piped household water connections benefiting Number Value 0.00 43000.00 10000.00 from rehabilitation works under the project Sub Type Supplemental Water pipes installed Kilometers Value 0.00 57.09 30.00 Date 07-Apr-2008 15-Apr-2013 30-Jun-2013 Comments The works have been completed and commissioned. Water production capacity (m3/day) Number Value 66000.00 96000.00 96000.00 Date 07-Apr-2008 15-Apr-2013 30-Jun-2013 Comments The works have been completed and commissioned. Non-revenue water at REGIDESO Percentage Value 46.00 25.00 20.00 Date 07-Apr-2008 15-Apr-2013 30-Jun-2013 Comments Measured as (Volume A non-revenue water program Public Disclosure Copy produced minus Volume has been successfully billed)/Volume produced implemented by the project (the target of 20% was optimistic to be achieved in five years). Average number of unconnected persons per Number Value 2946.00 904.00 877.00 water standpost in selected project areas Date 07-Apr-2008 15-Apr-2013 30-Jun-2013 Comments At this trend, the target will be achieved by June 30, 2013. Page 4 of 7 The World Bank Report No: ISR10127 Collection efficiency of REGIDESO Percentage Value 82.00 73.80 95.00 Date 07-Apr-2008 15-Apr-2013 30-Jun-2013 Comments Government and municipal Measured as billing Public Disclosure Copy entities have once again revenues / amount billed accumulated payment arrears. REGIDESO is addressing this issue through increasingthe number of prepaid meters towards this category of consumers. Strategic sector plans for electricity and water Yes/No Value No Yes Yes sectors prepared Date 07-Apr-2008 15-Apr-2013 30-Jun-2013 Comments Strategic sector plans for electricity and water sectors prepared by others Electricity generation per year from additional Gigawatt-hour Value 0.00 1.30 11.00 sources (GWh) Date 07-Apr-2008 15-Apr-2013 30-Jun-2013 Comments Electricity generation varies 1.3 Gwh produced by the greatly from year-to-year existing thermal plant of 5.5 depending on rainfall MW due delay in procuring (hydropower) - about 140-190 fuel. The GoB has signed a GWH/Year power purchase agreementwith INTERPETROL for additional thermal generation (10 MW diesel plant to start with early late April 2013). Electricity technical and non technical Percentage Value 24.40 18.82 18.00 electricity losses per year Date 31-Dec-2007 15-Apr-2013 30-Jun-2013 Comments Substations rehabilitated (HV and MV) Number Value 0.00 22.00 20.00 Public Disclosure Copy Date 07-Apr-2008 15-Apr-2013 30-Jun-2013 Comments The rehabilitation works of 22 substations have been electricity transmission and rehabilitated (HV and MV). distribution networks is going on and will be completed by December 2012. There the system might attain better performances Pre-paid electricity meters installed Number Value 5100.00 33562.00 40000.00 Page 5 of 7 The World Bank Report No: ISR10127 Date 07-Apr-2008 15-Apr-2013 30-Jun-2013 Comments There has been a delay in the Includes non IDA funded supply and installation of meters as well Public Disclosure Copy additional 30,000 prepaid meters for the customers to increase prepaid coverage from the current 50 % to 90% by June 30, 2013. This delay has been now addressed. CFLs distributed to REGIDESO customers Number Value 0.00 200000.00 200000.00 Date 07-Apr-2008 15-Apr-2013 30-Jun-2013 Comments CFLs replace same quantity of Incandescent light bulbs Data on Financial Performance (as of 03-May-2013) Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P097974 IDA-H3700 Effective 13-May-2008 25-Jun-2008 23-Sep-2008 30-Jun-2013 30-Jun-2013 P117225 TF-12460 Effective 28-Jun-2012 28-Jun-2012 26-Sep-2012 15-Dec-2015 15-Dec-2015 Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P097974 IDA-H3700 Effective USD 50.00 50.00 0.00 45.68 1.01 91.00 P117225 TF-12460 Effective USD 1.82 1.82 0.00 0.50 1.32 27.00 Disbursement Graph Public Disclosure Copy Page 6 of 7 The World Bank Report No: ISR10127 Public Disclosure Copy Key Decisions Regarding Implementation The two parties have agreed on the disclosure of the ISR. Restructuring History There has been no restructuring to date. Related Projects P117225-Burundi - Energy Efficiency Project Public Disclosure Copy Page 7 of 7