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 | Requesting Unit: EACIF | Responsible Unit: IEAE1 IBRD/IDA | Program-for-Results Financing | FY 2016 | Team Leader(s): Stephan Claude Frederic Garnier Seq No: 7 | ARCHIVED on 25-Nov-2019 | ISR39431 | Created by: Stephan Claude Frederic Garnier on 15-Nov-2019 | Modified by: Stephan Claude Frederic Garnier on 25-Nov- 2019 Program Development Objectives Program Development Objective (from Program Appraisal Document) The Project's development objective is to increase access to electricity services and to improve the efficiency and reliability oftheir delivery in selected areas of Indonesia. Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO ►Satisfactory ►Satisfactory Overall Implementation Progress (IP) ►Satisfactory ►Satisfactory Implementation Status and Key Decisions Implementation Status of the Project remains Satisfactory, with overall physical installations already exceeding targets. Minor restructuring to maintain the pace of investment (as requested by PLN) has been approved by the Bank. Project is well on-track to close with a Satisfactory Status. 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 0.00 462.37 37.63 92% 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 30-Apr-2020 11/25/2019 Page 1 of 15 The World Bank Implementation Status & Results Report Power Distribution Development Program-for-Results (P154805) DLI Disbursement Achievement Disbursed amount in Disbursement % for DLI ID DLI Type Description Coc DLI Amount Status Coc DLI Loan: IBRD86100-001 # of new residential cstmers(hh) 1 Regular USD 155,556,000.00 Fully Achieved 155,556,000.00 1% connctd addl length of MV dist lines 2 Regular USD 75,000,000.00 Fully Achieved 75,000,000.00 1% cnstrctd CK # of MV feeder tech Partially 3 Regular USD 60,000,000.00 52,107,000.00 1.2 % interruptions/10 CK Achieved addl dstribution trnsfrmr units 4 Regular USD 85,556,000.00 Fully Achieved 85,556,000.00 1% installd vol incrsd energy sales to resid Partially 5 Regular USD 55,556,000.00 46,649,828.00 1.2 % custGWh Achieved AWP FY2016 apprvd by PLN 6 Regular USD 15,000,000.00 Fully Achieved 15,000,000.00 1% Board Comm PLN collab w/ dev partners in 7 Regular USD 1,000,000.00 Fully Achieved 1,000,000.00 1% recruiting Integration of budgeting w/ 8 Regular USD 19,000,000.00 Fully Achieved 19,000,000.00 1% ERP in PW&DU Submission of revsd planning Partially 9 Regular USD 25,000,000.00 12,500,000.00 2% guidelines Achieved Integration of planning 10 Regular USD 8,332,000.00 Not Achieved 0.00 software w/ GIS Program Action Plan Action Description Provision of planning software with GIS capability and corporate license Source DLI# Responsibility Timing Timing Value Status Technical Client Due Date 31-Dec-2016 Completed Completion Measurement New planning software with GIS capability used in at least one Wilayah Following the acquisition of the corporate license for the distribution planning software package (PSS Sincal), PLN has already Comments completed the training of about half of the planners and expect the other half to be trained by the end of December. Action Description Application of planning software for distribution investment Source DLI# Responsibility Timing Timing Value Status 11/25/2019 Page 2 of 15 The World Bank Implementation Status & Results Report Power Distribution Development Program-for-Results (P154805) Technical Client Due Date 29-Dec-2017 In Progress Completion Measurement Application of planning software in at least one Wilayah First applications of planning software for distribution investment was expected by the end of 2018 - but the mission and IVA have not Comments been able to verify if this has been done.. Action Description Improving application of GIS data base in at least 5 feeders Source DLI# Responsibility Timing Timing Value Status Technical Client Due Date 31-Dec-2018 In Progress Completion Measurement Application of planning software in at least one Wilayah Comments The mission and IVA have not been able to verify if this action has been completed. Action Description Increasing number of skilled and certified systems planners Source DLI# Responsibility Timing Timing Value Status Technical Client Due Date 31-Dec-2019 In Progress Completion Measurement PLN staffed certified increased at 95% at the end of 2019 Comments 80% of staff certified as of September 2018 Review options for loss computations by using alternative methodologies e.g. load flow based calculations and simplified spreadsheet Action Description methods Source DLI# Responsibility Timing Timing Value Status Technical Client Due Date 30-Jun-2019 In Progress Completion Measurement New methodology applied for loss computations (using new planning software) Improvements and correct loss computations should be made once the new planning software (PSS SINCAL) is installed. The mission Comments agreed to start in a pilot Wilayah (Bangka Bilitung) Action Description Review and updating power distribution planning criteria Source DLI# Responsibility Timing Timing Value Status 11/25/2019 Page 3 of 15 The World Bank Implementation Status & Results Report Power Distribution Development Program-for-Results (P154805) Technical Client Due Date 29-Nov-2019 In Progress Completion Measurement New power distribution planning guidelines approved Focus Group Discussion took place on December 17, 2018 and TOR extensively discussed. (New planning guidelines approved and Comments operational in 2019). Due date revised. Action Description Identification study of (distribution control upgrades) upgrades needed Source DLI# Responsibility Timing Timing Value Status Technical Client Due Date 30-Dec-2016 Completed Completion Measurement Identification study completed Comments Action Description Engineering design of distribution control centers upgrades Source DLI# Responsibility Timing Timing Value Status Technical Client Due Date 29-Jun-2018 Completed Completion Measurement Engineering design of distribution control centers upgrades completed Comments Specification and bidding documents submitted to the Bank for review in June 2018. Action Description Implementation of distribution control centers upgrades Source DLI# Responsibility Timing Timing Value Status Technical Client Due Date 31-Dec-2019 In Progress Completion Measurement At least one DCC upgraded Comments On track Action Description Post procurement regulations on PLN's website Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems Client Due Date 30-Jun-2016 Completed 11/25/2019 Page 4 of 15 The World Bank Implementation Status & Results Report Power Distribution Development Program-for-Results (P154805) Completion Measurement Post procurement regulations on PLN's website Comments Action Description Implementation of upgraded e-procurement system and announcement of award details through e-procurement as per PLN regulations Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems Client Recurrent Continuous In Progress Completion Measurement Continuous Comments Restrict open book method for less than 3 suppliers in DPT (qualified suppliers in DPT) for Main distribution items (MDUs). No Action Description additional items beyond the existing 16 MDU items to be procured using open book method under this Program Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems Client Recurrent Continuous In Progress Completion Measurement Continuous Comments Concern remains over the continued trends in the Wilayahs over the high number and value of Direct Procurements. Action Description No direct procurement/direct appointment of SOEs and/or PLN's subsidiaries/joint ventures/affiliates under this Program Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems Client Recurrent Continuous In Progress Completion Measurement Continuous Comments Action applied Action Description No direct procurement or direct appointment of small or micro industries under this Program for contracts above IDR300 million Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems Client Recurrent Continuous In Progress Completion Measurement Continuous 11/25/2019 Page 5 of 15 The World Bank Implementation Status & Results Report Power Distribution Development Program-for-Results (P154805) Comments Fulfiled Action Description Conduct assessment of local manufacturing capacity for MDU items Source DLI# Responsibility Timing Timing Value Status Environmental and Social Client Due Date 30-Sep-2016 Completed Systems Completion Measurement Assessment completed Comments Improve accountability/credibility of SPKK reporting by integrating Division Head Sumatra's validation of KPIs as reported by the Action Description Wilayahs (prior to SPKK reporting) Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems Client Recurrent Continuous In Progress Completion Measurement Continuous Comments Partially fulfiled Action Description Procurement audits by SPI of 15 percent of contracts awarded by each procuring unit under the Program to be shared with the Bank Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems Client Recurrent Continuous In Progress Completion Measurement Continuous Comments Fulfiled No contract awards to firms and individuals on PLN's sanctions list and/or on the Bank's debarred/temporary suspension lists - upload Action Description PLN's black list onto website and electronic portal as per PLN regulation 166/2012 Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems Client Recurrent Continuous In Progress Completion Measurement Continuous Comments Fulfiled 11/25/2019 Page 6 of 15 The World Bank Implementation Status & Results Report Power Distribution Development Program-for-Results (P154805) Action Description Integrate budgeting with ERP for Wilayahs participating in the Program Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems Client Due Date 31-Dec-2018 Completed Completion Measurement Integration completed Comments Action Description Roadmap to strengthen existing whistleblower regulations and system, including guarantees to protect whistle blowers Source DLI# Responsibility Timing Timing Value Status Technical Client Due Date 30-Sep-2016 Completed Completion Measurement Roadmap completed Comments Action Description Develop procurement performance monitoring framework and report performance as per the framework Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems Client Due Date 30-Jun-2016 Completed Completion Measurement Framework completed and reporting done according to framework Comments Action Description Undertake environmental and social monitoring and training in environmental health and safety standards for PLN and its contractors Source DLI# Responsibility Timing Timing Value Status Environmental and Social Client Recurrent Continuous In Progress Systems Completion Measurement Continuous Comments Fulfiled 11/25/2019 Page 7 of 15 The World Bank Implementation Status & Results Report Power Distribution Development Program-for-Results (P154805) Risks 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 RiskComments Comments No change in the risk rating. Results PDO Indicators by Objectives / Outcomes Increase access to Electricity Services IN00769978 ►People provided with access to electricity by household connections (Number, Corporate) Baseline Actual (Previous) Actual (Current) End Target Value 11,180.00 14,182,559.00 14,540,000.00 14,410.00 Date 01-Jan-2015 31-Dec-2018 30-Jun-2019 31-Dec-2019 Project has already met the end target. Comments Electricity losses per year in the project area IN00769979 ►Electricity losses per year in the project area (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target 11/25/2019 Page 8 of 15 The World Bank Implementation Status & Results Report Power Distribution Development Program-for-Results (P154805) Value 11.92 13.08 12.65 10.00 Date 01-Jan-2015 31-Dec-2018 30-Jun-2019 31-Dec-2019 Level of losses has improved compared to the last recording in December 2018. However it is unlikely that the end target will Comments be met at closing. The team continues discussion with PLN on this topic. Improve reliability in the Project area IN00769980 ►System average interruption duration index (SAIDI) in minutes per customer year (Minutes, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1,989.00 1,568.00 1,184.00 1,650.00 Date 01-Jan-2018 31-Dec-2018 31-Aug-2019 31-Dec-2019 SAIDI and SAIFI values are as of August 31, 2019. Comments Values are for the first 9 months of the year. IN00770036 ►System average interruptions frequency index (interruptions per customer per year) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 17.81 13.89 12.77 15.50 Date 01-Jan-2018 31-Dec-2018 31-Aug-2019 31-Dec-2019 Value is recorded as of August 31, 2019 and only captures the number of interruptions per customer for the first 9 months of Comments the year. Intermediate Results Indicators by Results Areas Improved Access to electricity IN00770037 ►Annual work plans approved (on time) (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 01-Jan-2015 09-May-2019 15-Nov-2019 31-Dec-2019 Comments IN00770042 ►Percentage of planned capital expenditures realized (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target 11/25/2019 Page 9 of 15 The World Bank Implementation Status & Results Report Power Distribution Development Program-for-Results (P154805) Value 82.00 82.50 44.00 85.00 Date 31-Dec-2014 31-Dec-2018 30-Jun-2019 31-Dec-2019 Comments IN00770045 ►Distribution lines constructed or rehabilitated under the project (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 92,716.00 110,521.00 113,338.00 106,228.00 Date 01-Jan-2015 31-Dec-2018 30-Jun-2019 31-Dec-2019 Note that the numbers of kilometers of distribution lines constructed or rehabilitated under the project, are the difference of Comments kilometers to date minus the baseline number of kilometers. IN00770048 ►Distribution lines constructed under the project (Kilometers, Custom Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 92,716.00 110,521.00 113,338.00 106,228.00 Date 01-Jan-2015 31-Dec-2018 30-Jun-2019 31-Dec-2019 Improved quality of service IN00770038 ►Number of MV feeder technical interruptions per 100 km (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 21.22 15.45 7.84 16.00 Date 01-Jan-2015 31-Dec-2018 30-Jun-2019 31-Dec-2019 The current value captures only the first 6 months of the year. Comments Increased efficiency IN00770039 ►Number of distribution transformer units added (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 80,130.00 105,562.00 108,788.00 98,338.00 Date 01-Jan-2015 31-Dec-2018 30-Jun-2019 31-Dec-2019 Number of transformers added is the difference between the actual number of transformers in the grid to date minus the Comments baseline number of transformers. IN00770043 11/25/2019 Page 10 of 15 The World Bank Implementation Status & Results Report Power Distribution Development Program-for-Results (P154805) ►Increase in distribution transformer capacity (MVA) (Kilovolt-Amphere(KVA), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 7,981,000.00 9,899,200.00 10,201,722.00 9,880,000.00 Date 01-Jan-2015 31-Dec-2018 30-Jun-2019 31-Dec-2019 Comments Improved power consumption by residential customers IN00770040 ►Increased volume in power sales to residential customers (GWh) (Gigawatt-hour (GWh), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 15,850.00 18,023.00 18,585.00 18,453.00 Date 31-Dec-2014 31-Dec-2018 30-Jun-2019 31-Dec-2019 Increased volume in power sales to residential customers (GWh) is the difference between the actual value and the baseline Comments value. Institutional strengthening and capacity building IN00770041 ►PLN collaborated with development partners in the hiring of an independent verification agent (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 01-Jan-2015 08-Jan-2019 15-Nov-2019 31-Dec-2019 Comments IN00770044 ►Integrate budgeting with ERP in participating Wilayahs (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 01-Jan-2015 08-Jan-2019 15-Nov-2019 31-Dec-2019 Comments IN00770046 ►Issue revised distribution planning guidelines acceptable to the Bank (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 01-Jan-2015 08-Jan-2019 15-Nov-2019 31-Dec-2019 11/25/2019 Page 11 of 15 The World Bank Implementation Status & Results Report Power Distribution Development Program-for-Results (P154805) Draft version of the Distribution Guidelines have been prepared and are under review by PLN. Comments On track for approved guidelines by the end of the year 2019. IN00770047 ►Integrate distribution planning software with GIS facilities (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 01-Jan-2015 08-Jan-2019 15-Nov-2019 31-Dec-2019 Comments IN00770049 ►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 No Yes Yes Yes Date 01-Jan-2015 08-Jan-2019 15-Nov-2019 31-Dec-2019 Comments Disbursement Linked Indicators DLI_IND_TABLE ►DLI 1 Number of new Residential (Household) customers connected (Outcome, 155,556,000.00, 81%) Baseline Actual (Previous) Actual (Current) Project closing Value 11,180.00 14,182.56 14,510.56 12,857.00 Date 01-Jan-2015 31-Dec-2018 30-Jun-2019 -- Current value is verified by the IVA (report of September 2018 - results as of June 2018). The value at closing has to be revised for two reasons: (1) the value in the system has been miscalculated and does not reflect the PAD (Bank Disbursement Table) nor the Legal Agreement (Schedule 4 – Disbursement-Linked Results) – correct calculation described below; and (2) to reflect the addition of USD 10 million for this DLI following the proposed reallocation. 1. Calculation of end-target: Comments Baseline (number of customers): 11,180,000 Additional customers targeted for initial Bank Financing (USD145.56 million): 1,569,000 End-target before reallocation (original Project): 11,180,000+1,569,000=12,749,000 2. After reallocation of proceeds Additional customers from the additional USD10 million: 108,000 End-target after reallocation (revised Project): 12,749,000+108,000=12,857,000 ►DLI 2 Additional Length of MV distribution lines (Intermediate Outcome, 75,000,000.00, 73%) Baseline Actual (Previous) Actual (Current) Project closing 11/25/2019 Page 12 of 15 The World Bank Implementation Status & Results Report Power Distribution Development Program-for-Results (P154805) Value 92,716.00 110,521.00 113,338.00 106,228.00 Date 01-Jan-2015 31-Dec-2018 30-Jun-2019 -- Based on IVA report as of June 30, 2018 The value at closing has to be revised for two reasons: (1) the value in the system has been miscalculated and does not reflect the PAD (Bank Disbursement Table) nor the Legal Agreement (Schedule 4 – Disbursement-Linked Results); and (2) to reflect the addition of USD 20 million for this DLI following the proposed reallocation. 1. Calculation of end-target: Baseline (length of MV distribution lines): 92,716 Comments Additional length targeted for initial Bank Financing (USD55 million): 9,909 End-target before reallocation (original Project): 102,625 2. After reallocation of proceeds Additional length targeted from the additional USD 20 million: 3,603 End-target after reallocation (revised Project): 106,228 ►DLI 3 Number of MV feeder technical interruptions per 100 kilometers (Outcome, 60,000,000.00, 71%) Baseline Actual (Previous) Actual (Current) Project closing Value 21.22 15.42 7.84 16.00 Date 01-Jan-2015 31-Dec-2018 30-Jun-2019 -- Value for entire year 2018. Based on PLN data - still to be confirmed by IVA report Comments ►DLI 4 Additional distribution transformer units (Intermediate Outcome, 85,560,000.00, 77%) Baseline Actual (Previous) Actual (Current) Project closing Value 80,130.00 105,562.00 108,788.00 98,338.00 Date 01-Jan-2015 31-Dec-2018 30-Jun-2019 -- Target at closing has been revised to reflect the additional USD 20 million reallocated to this DLI Comments ►DLI 5 Growth in residential energy sales (Outcome, 55,550,000.00, 59%) Baseline Actual (Previous) Actual (Current) Project closing Value 15,850.00 18,023.00 18,614.00 18,433.00 Date 01-Jan-2015 31-Dec-2018 30-Jun-2019 -- DLI has been revised to take into account lower than originally anticipated growth in electricity demand. Comments the allocation for this DLI has been in parallel reduced by USD 50 million (reallocated to DLI 1, 2 and 4) 11/25/2019 Page 13 of 15 The World Bank Implementation Status & Results Report Power Distribution Development Program-for-Results (P154805) ►DLI 6 FY 2016 Annual Work Plan approved (Process, 15,000,000.00, 100%) Baseline Actual (Previous) Actual (Current) Project closing Value No Yes Yes Yes Date 01-Jan-2015 19-Oct-2017 19-Oct-2017 -- Comments ►DLI 7 PLN has collaborated with development partners in the recruitment of an independent verification agent (Process, 1,000,000.00, 100%) Baseline Actual (Previous) Actual (Current) Project closing Value No Yes Yes Yes Date 01-Jan-2015 08-Jan-2019 15-Nov-2019 -- Comments ►DLI 8 Integrate budgeting with ERP in all Program Wilayahs (Intermediate Outcome, 19,000,000.00, 100%) Baseline Actual (Previous) Actual (Current) Project closing Value No Yes Yes Yes Date 01-Jan-2015 08-Jan-2019 15-Nov-2019 -- Comments ►DLI 9 Issue revised planning guidelines acceptable to the Bank (Intermediate Outcome, 25,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) Project closing Value No No No Yes Date 01-Jan-2015 08-Jan-2019 15-Nov-2019 -- Comments ►DLI 10 Integrate of planning software with GIS facilities (Output, 8,330,000.00, 0%) Baseline Actual (Previous) Actual (Current) Project closing Value No No Yes Yes Date 01-Jan-2015 08-Jan-2019 15-Nov-2019 -- 11/25/2019 Page 14 of 15 The World Bank Implementation Status & Results Report Power Distribution Development Program-for-Results (P154805) Comments 11/25/2019 Page 15 of 15