ACTIVITY COMPLETION SUMMARY (ACS) Libya - Supporting Electricity Sector Reform (ID: P154606) Libya (MIDDLE EAST AND NORTH AFRICA)

Transcription

1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized ACTIVITY COMPLETION SUMMARY (ACS) Libya - Supporting Electricity Sector Reform (ID: P154606) Libya (MIDDLE EAST AND NORTH AFRICA) Public Disclosure Authorized May 22, 2018 Page 1 of 17

2 BASIC INFORMATION Activity Information Project ID P Short Name LY: Supporting Electricity Sector Reform Project Status Product Line Advisory Services & Analytics Full Name Libya - Supporting Electricity Sector Reform Completion Fiscal Year Closed 2018 Processing Is this a Reimbursable Advisory Service (RAS)? No What kind of task description is needed? Concept Note with a Review (Track 2, including Programmatic) Is this a Programmatic activity? No Is this a joint Bank-IFC activity? No Accountability Region MIDDLE EAST AND NORTH AFRICA Requesting Unit MNC01(392) Country, Regional or World Libya Team Leader Mikul Bhatia, Samira El Khamlichi Responsible Unit GEE05(9263) Practice Area (Lead) Contributing Practice Areas Energy & Extractives May 22, 2018 Page 2 of 17

3 BRIEF ACTIVITY DESCRIPTION The proposed project will focus on priority steps in the reform process and target the following areas: (i) designing regulatory and institutional reforms for the power sector, (ii) developing a roadmap for establishing a regulatory authority, (iii) identifying options for restructuring the power company (GECOL), with a particular focus on the distribution sector where the billing recovery rate is only 20 percent (iv) develop and pilot a framework for the development of a renewable energy project, and (v) build the capacity of stakeholders in Libya?s electricity sector. (detailed context is presented in attached concept note) DEVELOPMENT OBJECTIVE The Development objective of this Technical Assistance Project is to support the Government of Libya in the development of a national framework to reform the electricity sector and its institutions with a view of enhancing the technical and financial viability of the sector. In order to achieve this objective, the project will assist in (i) developing an integrated national framework for electricity reforms which will include: the design of regulatory and institutional reforms for the power sector, the development of a roadmap for establishing a regulatory authority, and identifying options for restructuring the power company (GECOL), with a particular focus on the distribution sector where the billing recovery rate is only 20 percent (ii) developing and pilot a framework for the introduction of renewable energy including investments from the private sector, and (iii) building the capacity of stakeholders in Libya?s electricity sector, including with regard to subsidy reforms. DELIVERABLES Group By: Pillar DELIVERABLESWITHOUTSUBTASK Name Lead Type Completion Date Processing Type Modification Since last Milestone Status May 22, 2018 Page 3 of 17

4 Task-A: Rapid Performance Assessment and Strategy for Structural Reform of Electricity Sector Task-A Reports: (i) Rapid Performance Assessment, (ii) Options for GECOL Restructuring, (iii) Structural Reforms and Electricity Act, (iv) Roadmap for LEMRA, (v) Task-A Final Report Mikul Bhatia Advisory 28-Feb-2018(P) DR Required New Completed Task-B: Fuel (Natural Gas) Availability, Cost Reduction and LNG Import Options Study Task B: Fuel (Natural Gas) Availability, Cost Reduction and LNG Import Options Study Anas Benbarka Analytical 28-Feb-2018(P) DR Required New Completed Task-D: Strategic Plan for Renewable Energy Development Task D: Strategic Plan for Renewable Energy Development in Libya Samira El Khamlichi Advisory 28-Feb-2018(P) DR Required New Completed Task-C: Institutional Development and Performance Improvement of GECOL Study Task C: Institutional Development and Performance Improvement of GECOL Mikul Bhatia Advisory 28-Feb-2018(P) DR Required New Completed May 22, 2018 Page 4 of 17

5 Comments No comments have been entered DELIVERABLE DOCUMENTS Document Title Document Type Document Date Classification Deliverable: Task B: Fuel (Natural Gas) Availability, Cost Reduction and LNG Import Options Study 01 Task B Fuel Availability Report - Final Version R1 (clean) 02 Task B Libya LNG Import Options Report R4 (clean) Deliverable: Task C: Institutional Development and Performance Improvement of GECOL 01 Task C Strategy for Institutional Development of GECOL Report 02 Task C Process Mapping and Identification Gaps of Staff Skills and Performance 03 Task C Manpower and Organisational Rationailazion Review 04 Task C ERP System Review 05 Task C Tariff Structure Review and Reform Pathway Report 06 Task C Tariff Design Toolkit 07 Task C Customer Service Financial Performance 08 Task C Improving GECOL Technical Performance 09 Task C Generation Capacity Review 10 Task C Final Report Deliverable: Task D: Strategic Plan for Renewable Energy Development in Libya 02 Libya LCEP Final Report Report 02/14/2018 Official use only 01 Libya SPREL Final Report Report 02/14/2018 Official use only 03 Libya LCEP Technologies Report Final Report 02/14/2018 Official use only 04 Libya Grid Code for RE Final Report 02/14/2018 Official use only May 22, 2018 Page 5 of 17

6 05 RE Pilot Project Feasibility Study incl Annexes Report 02/14/2018 Official use only 06 Libya PSP in RE Report Final Report 02/14/2018 Official use only Deliverable: Task-A Reports: (i) Rapid Performance Assessment, (ii) Options for GECOL Restructuring, (iii) Structural Reforms and Electricity Act, (iv) Roadmap for LEMRA, (v) Task-A Final Report 01 Task A Rapid Assessment of the Sector Performance 02 Task A Options Study for GECOL Restructuring Report 03 Task A Electricity Act and Sector Restructuring Report 04 Task A Detailed Roadmap for Establishing LEMRA Report 05 Task A Final Report AGE AND BUDGET Activity Age in Months (See Annex A for details) AgeSection At Concept Package Sign-off (Track 2) Actual Budget (See Annex B for details) Source of Fund At Concept Package Sign-off (Track 2) Actual Expenditure Bank Budget 950,000 29,726 Bank Trust Fund 2,000,000 1,976,416 Grand Total Direct Cost 2,950,000 2,006,143 Comments No comments have been entered RESULTS May 22, 2018 Page 6 of 17

7 Do you want to track result indicators for this activity? Yes Outcome Indicators Intermediate Outcome Indicators Bank country strategy informed Unit of Measure: Text Bank country strategy informed Baseline Actual (Previous) Actual (Current) End Target Status Value N/A N/A No Change Date 04-Feb Mar-2018 Bank sector strategy informed Unit of Measure: Text Bank sector strategy informed Baseline Actual (Previous) Actual (Current) End Target Status Value N/A N/A No Change Date 04-Feb Mar-2018 Disseminated best practices Unit of Measure: Text Disseminated best practices Baseline Actual (Previous) Actual (Current) End Target Status Value N/A N/A No Change Date 04-Feb Mar-2018 May 22, 2018 Page 7 of 17

8 Design capacity strengthened Unit of Measure: Text Design capacity strengthened Baseline Actual (Previous) Actual (Current) End Target Status Value N/A N/A No Change Date 04-Feb Mar-2018 Facilitated exchange of best practice w/ clients Unit of Measure: Text Facilitated exchange of best practice w/ clients Baseline Actual (Previous) Actual (Current) End Target Status Value N/A N/A No Change Date 04-Feb Mar-2018 Government policy/strategy informed Unit of Measure: Text Government policy/strategy informed Baseline Actual (Previous) Actual (Current) End Target Status Value N/A N/A No Change Date 04-Feb Mar-2018 Implementation capacity strengthened Unit of Measure: Text Implementation capacity strengthened Baseline Actual (Previous) Actual (Current) End Target Status Value N/A N/A No Change Date 04-Feb Mar-2018 May 22, 2018 Page 8 of 17

9 Output Indicators No indicators have been added Overall Comments No comments have been entered ASSESSMENT Development Effectiveness Rating Satisfactory(5) Outcomes The technical assistance project was completed successfully in December 2017 despite the challenges and delays experienced at the launch of the project due to the aggravated security situation. A major development in this TA was to make the officials of Ministry of Planning MoP, General Electricity Company of Libya (GECOL), Renewable Energy Authority of Libya (REAOL) and National Oil Company (NOC) come together to develop a deeper understanding of energy sector challenges ((inadequate generation, low tariffs, high commercial losses, and heavy subsidy burden), and to collectively identify policy, institutional and technical aspects to enhance the overall technical and financial performance of the sector in line with international practices. More than 20 rigorous outputs were prepared and delivered which include: sector performance assessments, options analysis, strategic plans, implementation roadmaps, operational tools, standard documents, and summary reports. These formed a solid basis for building jointly with government officials and development partners a programmatic implementation pathway to address electricity supply issues in the short term and the overall performance improvements of the sector in the medium-long term. The TA has also delivered concrete plans for improving fuel supply for electricity generation and for developing renewable energy in Libya. The TA project was instrumental in enabling the government to embark on a structural reform and performance improvement program for the electricity sector. In fact, the government has recently established a task force for electricity reform which is made up of representatives from Ministry of Finance, MoP, Water Authority, NOC, REAOL, GECOL, Audit Bureau, Higher education Department. In addition, The TA helped inform the World Bank engagement in Libya, by underscoring the urgent need to address the electricity supply issues in the short term and the overall performance improvements of the sector in the medium-long term. The Libya CEN proposes Restoring Basic Services Delivery as one of the two May 22, 2018 Page 9 of 17

10 pillars and identifies electricity as one of the two basic services for emergency restoration in the upcoming years. Next steps: At the request of the government, a number of activities are planned to follow up on the outcomes of this TA. The WB team secured funds from ESMAP and MDTF to undertake a detailed analysis of the identified short-term action to addressing the power supply, i) improving power plant maintenance improvement; ii) improving supply of natural gas for electricity generation through supporting the development of an LNG-import project in Libya. In parallel, the team has started the preparation of an investment project WB Libya Emergency Electricity Supply Improvement Project. Lessons Learned Client s ownership. Throughout the course of the work, stakeholder engagement was key in advancing the project delivery. In fact, six missions were organized to Tunis where clients were represented by officials from GECOL, RECOL and NOC. These missions provided the stakeholders with the opportunity to discuss and interact with the experts and WB team. The Bank team built a strong collaboration and trust with government stakeholders in the process of developing the analytical basis and identifying reform measures to improve the sector performance. Consequently, by the end of the activity, there was strong buy-in from the Client on the recommendations put forward by the Bank. As mentioned above, some of these are already being launched. Technical quality. The tools developed and analyses were comprehensive and of high quality. Importantly, the client was appreciative of the high-quality trainings that were organized in conjunction with the missions, and in which the Bank team and consultants shared global knowledge and best practices. This enabled the Bank team together with the client to develop tailored solutions to the specific context of Libya energy sector. Government capacity. Particularly in FCV countries, any intervention needs to be grounded in a deeper understanding of the institutional and technical capacity to implement and the political economy of the sector. Therefore, It is important to match the scope of the TA to the client s capacity. The wide scope of this TA lead to a large amount of results which could be overwhelming for the client to absorb. In this case the scope could have been more focused with a phased sequencing of the tasks, on the other side, a wide scope provided a comprehensive picture of energy sector, and the client together with the Bank team can prioritize from the results. ANNEX A. DETAILED SCHEDULE Name Original Revised at the last milestone Latest Planned Actual May 22, 2018 Page 10 of 17

11 ANNEX B. DETAILED BUDGET Budget Plan vs Actual (USD) Cumulative Budget Current FY (2018) Source of Fund Activity Plan Actual Expenditure to Date Actual vs Plan (%) Activity Plan WPA Plan Expenditure (YTD) WPA Burn Rate (%) Bank Budget 950,000 29, Bank Trust Fund 2,000,000 1,976, ,310,921 0 Budget Plan (USD) Costing Do you want to plan the budget by FY? Yes Do you want to plan your budget by Subtasks? Source of Fund Cumulative Budget Grand Total Grand Total Direct Cost 2,950,000 Bank Budget 950,000 Bank Trust Fund 2,000,000 ANNEX C. DELIVERABLES DETAILS Task-A: Rapid Performance Assessment and Strategy for Structural Reform of Electricity Sector May 22, 2018 Page 11 of 17

12 Deliverable Name Task-A Reports: (i) Rapid Performance Assessment, (ii) Options for GECOL Restructuring, (iii) Structural Reforms and Electricity Act, (iv) Roadmap for LEMRA, (v) Task-A Final Report Status Completed Planned Completion Date Decision Review Required? Yes Deliverable Creation Date 04-Feb-2018 Actual Delivery Date 28-Feb-2018 Lead Type of deliverable Mikul Bhatia Advisory Provide a brief description of the deliverable The deliverables under Task-A: Rapid Assessment of Sector Performance and Structural Reform of Electricity Sector comprised of five reports, including: (i) Rapid Assessment of the Sector Performance, (ii) Options Study for GECOL Restructuring, (iii) Electricity Act and Sector Restructuring, (iv) Detailed Roadmap for Establishing LEMRA, and (v) Summary Final Report of Task A. Report on Rapid Assessment of Sector Performance examines the demand and supply of electricity, the performance of each of the power plants, commercial performance of the sector, subsidy prevalent in the sector, and structural aspects among others. The report on Options Study for GECOL Restructuring examines whether it is feasible to unbundle the various functions of GECOL and privatize over the short to medium term. The report on sector restructuring examines approaches for introducing competition and market structure with private sector participation. It also examines some of the new players needed in the sector and suggests inputs to a new electricity act to address the key reform steps. The report on LEMRA details out the steps needed for developing a Libya Electricity Market Regulatory Authority. Finally, the summary report captures all the key messages from the Task-A activities. Provide a brief summary of outputs before recommending decision review of the deliverable (if needed) or changing its status to Completed. If applicable, include links to external documents and websites. A virtual QER of the draft final Task-A deliverables was conducted between November 1 and December 15, Written comments were provided by the following peer reviewers: Pedro Antmann Lead Energy Specialist (GEE08) and Francesca Recanatini Senior Public Sector Specialist (GGO17). A response matrix and May 22, 2018 Page 12 of 17

13 minutes of QER review were prepared. The comments received were addressed in the final outputs. The final outputs, minutes of QER review and response matrix are attached. Task-B: Fuel (Natural Gas) Availability, Cost Reduction and LNG Import Options Study Deliverable Name Task B: Fuel (Natural Gas) Availability, Cost Reduction and LNG Import Options Study Status Completed Planned Completion Date Decision Review Required? Yes Deliverable Creation Date 04-Feb-2018 Actual Delivery Date 28-Feb-2018 Lead Anas Benbarka Type of deliverable Analytical Provide a brief description of the deliverable The deliverables under Task-B: Fuel (Natural Gas) Availability, Cost Reduction and LNG Import Options comprised of two reports, including: (i) Fuel Availability and Opportunities for Cost Reduction Report, and (ii) LNG Import Options Report, which together aimed at suggesting means to help address the shortages of natural gas for power generation, and consequently to reduce load shedding and maximize power plant generation capacity. The reports were basked by a series of analytical outputs which examined the technoeconomic feasibility of various options using a least cost model. The first report establishes the need for augmenting natural gas supply over the short term through reduction of exports to Italy, while in the medium term by establishing an LNG terminal (an FSRU - Floating Storage and Regasification Unit, and ground facilities) in the vicinity of Al Khoms area. The second report captures observations from field visits and analysis of basic technical options for design of an LNG terminal. Provide a brief summary of outputs before recommending decision review of the deliverable (if needed) or changing its status to Completed. If applicable, include links to external documents and websites. A virtual QER of the draft final Task-B deliverables was conducted between November 1 and December 15, Written comments were provided by the following peer reviewers: Alexander Johannes Huurdeman Senior Gas Specialist (GEEX1), Massimo Aldo Alfredo De Mauro Regional Coordinator (GEEX2), Bassem Abou Nehme Investment Officer (IFC-CNGOG), and Thyl Kint Principal Industrial Specialist (IFC-CNGOG). A response matrix and minutes of QER review were prepared. The comments received were addressed in the final outputs. The final outputs, minutes of QER review and response matrix are attached. May 22, 2018 Page 13 of 17

14 Task-C: Institutional Development and Performance Improvement of GECOL Study Deliverable Name Task C: Institutional Development and Performance Improvement of GECOL Status Completed Planned Completion Date Decision Review Required? Yes Deliverable Creation Date 04-Feb-2018 Actual Delivery Date 28-Feb-2018 Lead Mikul Bhatia Type of deliverable Advisory Provide a brief description of the deliverable The deliverables under Task-C: Institutional Development and Performance Improvement of GECOL comprised of eight reports (and two excel files), including: (i) Strategy for Institutional Development of GECOL, (ii) Process Mapping and Identification Gaps of Staff Skills and Performance, (iii) Manpower and Organizational Rationalization Review, (iv) ERP System Review, (v) Tariff Structure Review and Reform Pathway and Tariff Design Toolkit, (vi) Improving Sector Financial Performance, (vii) Improving GECOL Technical Performance, and (viii) Task C: Final Report. Together, these deliverables aimed at preparing a strategy for institutional development and performance improvement of GECOL. The reports on strategy for institutional development provides an overall roadmap for performance improvement of GECOL, where as other reports provide specific detailed strategies for process streamlining, manpower rationalization, ERP systems, tariff rationalization, commercial performance improvement and technical performance improvement respectively. Provide a brief summary of outputs before recommending decision review of the deliverable (if needed) or changing its status to Completed. If applicable, include links to external documents and websites. A virtual QER of the draft final Task-C deliverables was conducted between November 1 and December 15, Written comments were provided by the following peer reviewers: Pedro Antmann Lead Energy Specialist (GEE08) and Francesca Recanatini Senior Public Sector Specialist (GGO17). A response matrix and minutes of QER review were prepared. The comments received were addressed in the final outputs. The final outputs, minutes of QER review and response matrix are attached. Task-D: Strategic Plan for Renewable Energy Development May 22, 2018 Page 14 of 17

15 Deliverable Name Task D: Strategic Plan for Renewable Energy Development in Libya Status Completed Planned Completion Date Decision Review Required? Yes Deliverable Creation Date 04-Feb-2018 Actual Delivery Date 28-Feb-2018 Lead Samira El Khamlichi Type of deliverable Advisory Provide a brief description of the deliverable The deliverables under Task-D: Strategic Plan for Renewable Energy Development in Libya comprised of five reports, including: (i) SPREL Roadmap, Market Analysis and Risk Assessment, (ii) Least Cost Expansion Plan (LCEP), (iii) Grid Code for Renewable Sources, (iv) Feasibility Study for a PV Plant at Jadu Site, and (v) Private Sector Participation. Together, these deliverables aimed at developing a strategic plan for renewable energy development in Libya. The least cost expansion plan examines the generation mix going forward - with a focus on opportunity for renewable energy development in Libya. The SPREL examines the way ahead for development of renewable energy - including policy, regulatory and structural aspects of the sector. The private sector participation report looks at the opportunity to conduct the first private sector led renewable energy pilots, where as the feasibility study examines the site at Jadu for such a project. Provide a brief summary of outputs before recommending decision review of the deliverable (if needed) or changing its status to Completed. If applicable, include links to external documents and websites. A virtual QER of the draft final Task-D deliverables was conducted between November 1 and December 15, Written comments were provided by the following peer reviewers: Efstratios Tavoulareas Principal Operations Officer (CASEE), Zubair Sadeque Senior Energy Specialist (GEE08), MENA CSP Knowledge and Innovation Program Consortium, Fernando de Sisternes Energy Specialist (GEEES), and Eva Therese Fernlund Jr Professional Officer (GEE05). The comments received were addressed in the final outputs. The final outputs, minutes of QER review and response matrix are attached. ANNEX D. CLIENTS Clients or Audience May 22, 2018 Page 15 of 17

16 Does this activity have a client? Yes Organizations & Contacts General Electric Company of Libya (GECoL) Parastatal/Independent Government Institute, Activity Core Team Member Libya Contacts Abdul Hakim Fathallah Layas Executive Director Hakimlayas@gmail.com Survey Participation: Yes Renewable Energy Authority of Libya (REAoL) Parastatal/Independent Government Institute, Activity Core Team Member Libya Contacts Dr. Hameed El Sherwaly hamid.sherwali@reaol.ly Survey Participation: Yes Ministry of Electricity and Renewable Energy Central Ministry, Activity Leadership/Oversight Libya Contacts Abdulrazak Ben-Noba May 22, 2018 Page 16 of 17

17 Head of the International Cooperation Office Survey Participation: Yes May 22, 2018 Page 17 of 17