Implementation Status & Results Lebanon LB-EMERGENCY POWER SECTOR REFORM CAPACITY REINFORCEMENT (P104774)

Transcription

1 Public Disclosure Authorized Public Disclosure Authorized The World Bank Implementation Status & Results Lebanon LB-EMERGENCY POWER SECTOR REFORM CAPACITY REINFORCEMENT (P104774) Operation Name: LB-EMERGENCY POWER SECTOR REFORM CAPACITY Project Stage: Implementation Seq.No: 10 Status: ARCHIVED Archive Date: REINFORCEMENT (P104774) Country: Lebanon Approval FY: 2007 Product Line: Special Financing Region: MIDDLE EAST AND NORTH AFRICA Lending Instrument: Emergency Recovery Loan Implementing Agency(ies): Key Dates Board Approval Date 19-Mar-2007 Original Closing Date 30-Jun-2009 Planned Mid Term Review Date Last Archived ISR Date 13-Jun-2011 Effectiveness Date 02-Aug-2007 Revised Closing Date 31-Dec-2012 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) The objective of the project is to accelerate the implementation of reforms and restructuring of EdL by enhancing the capacity of MOEW, EdL and the multiministry higher level committee. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) losure Authorized Public Disclosure Authorized Component Name Component Cost Capacity building to the MOEW 1.70 EdL restructuring advisory services 3.30 Capacity building to EdL 1.70 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Unsatisfactory Moderately Unsatisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Satisfactory Overall Risk Rating Implementation Status Overview Ministry of Energy and Water has improved the performance of this project, and is now on track to complete project activities by the Project Closing Date. Sustained improvement in the performance of this project will require close monitoring of Consultants' work in developing a roadmap for Corporatization of EdL, and in supporting a final investment decision for LNG supply. MoEW will also need to continue engagement with other stakeholders, particularly in the development of a roadmap for corporatization of EdL given the political sensitivity around this issue. Page 1 of 7

2 Locations No Location data has been entered Results Project Development Objective Indicators Implementation of cost reduction projects started. EdL is restructured and is better managed and comprises a more skilled staff base resulting in efficiency and productivity gains. Text Value No cost reduction project in place as of yet. Gas supplies to Lebanon from Egypt currently interrupted. The Bank has urged GoL to explore renewed supply of Egyptian gas, or alternate sources of gas supply. Text Value EdL not restructured and no changes in staffing and management. Hire of Consultant to develop a roadmap for corpoatization of EdL will shortly be completed. Reduced cost of power generation due to utilization of natural gas at Beddawi power plant Roadmap for corpoatization of EdL adopted Roadmap for EdL Restructuring/ Corporatization finalized and agreed across Government Final decision to proceed with development of an alternate fuel supply (LNG) in the context of a broad fuel supply strategy. Text Value EdL Corporatization Roadmap does not exist Hire of a Consultant to develop a roadmap for Corporatization of EdL will shortly be completed. This is a new indicator introduced through the restructuring in Dec 2010 Text Value Conceptual analysis of LNG supply to Lebanon complete Date 14-Apr Dec-2011 This is a new indicator introduced through the restructuring in Dec 2010 A consultant has been hired to assist MoEW in reaching a final investment decision on LNG supply Roadmap for Corporatization of EdL and agreed within Government. Page 2 of 7

3 Progress in Implementation of the Government's Policy Paper for the Electricity Sector Text Value Policy Paper and agreed in Cabinet, June 2010 The government has made good progress on implementation of its policy paper - finalizing studies and preparing bid documentation for new generation and transmission infrastructure, and issues requests for bids for distribution services. Implementation well underway in support of outcomes outlined in the MoEW Poilcy Paper This is a new indicator introduced through the restructuring in Dec 2010 Intermediate Results Indicators Improve billing as well as technical performance of the distribution network. Text Value High degree of financial and technical losses (37%) planned outsourcing of distribution management to the private sector will facilitate the achievement of this indicator. MoEW is currently working to outsource this function. Billing increased (reduction in illegal consumption reduced from 18% to8% by 2012) and technical losses reduced from 15% to 10% in Efficiency improvement plan for each power plant & implementation initiated EdL Procurement functions recognized; Identify priority actions to improve reliability and reduce T&D losses. Finalize outsanding audits of EdL to have more accurate financial information on the sector. Text Value Improvements at EdL as a result of technical and financial capacity injection. Some improvements planned and ready for implementation Improvements are evident. Some improvements planned and ready for implementation Text Value Audits for period outstanding. Audits are now complete up to Fuel strategy formulated and approved Text Value fuel strategy being finalized in conjunction with study of LNG Decon Fuel Strategy completed, and LNG study currently underway Audits completed for all years to date. final investment decision on LNG study, and fuel strategy complete Page 3 of 7

4 National energy strategy integrating the power sector least cost plan, tariff study, and fuel sourcing strategy Proposed IPPs evaluated and if viable bid documentation Government decision to proceed with LNG development in the context of a broad fuel supply strategy Text Value national energy strategy being developing - incorporating generation, transmission and fuel planning Some progress on Implementation of Policy Paper, and additional capital development planning underway complete. MoEW Policy Paper implementaion well underway Text Value IPPs not yet identified IPPs referred to in Policy IPPs identified Paper some progress made in identifying role for IPP generation in MoEW Policy Paper Text Value LNG consultant being recruited to help decision on site location and technology, and PPP structure for LNG LNG Consultant recruited and working. Final Investment Decision on LNG Individual Consultants hired to support implementation of the Policy Paper for the Electricity Sector Progress in implementation of key investments under the Government's Policy Paper for the Electricity Sector Text Value Consultant ToRs Hire of Consultants through the Bank managed trust fund on hold due to funding constraints. However, MoEW has hired a range of technical consultants through its own budget. Indiviual Consultants hired and supporting implementation of MoEW Policy Paper Text Value design and feasibility studies underway, no financial commitments yet made MoEW has finalized technical studies and drafted EPC bid documentation for generation and transmission infrastructure. The Bank team has provided review of this documentation. Implementation of key investments in generation and transmission infrastructure well under way. Page 4 of 7

5 EdL Corporatization - detailed ord chart, governance scheme, job descriptions etc EdL Corporatization - asset register, capitalization structure Text Value ToR for Consultant to support Hire of a consulting firm to support development of a roadmap for corporatization of EdL is almost completed Text Value ToR for Consultant to support Hire of a consulting firm to support development of a roadmap for corporatization of EdL is almost completed Implementation of roadmap for Corporatization of EdL well underway. Implementation of roadmap for Corporatization of EdL well underway. EdL Corporatization - Roadmap finalized Text Value ToR for Consultant to support Hire of a consulting firm to support development of a roadmap for corporatization of EdL is almost completed Date 14-Apr Dec Dec-2013 Corporatization roadmap for EdL finalized. EdL corporatization - Cabinet approval of roadmap and resources allocated for implementation Text Value ToR for Consultant to support Corporatization consultant close to being hired Roadmap for corporatization of EdL adopted by Cabinet. EdL Strengthening - Procurement functions reorganized EdL Strengthening - priority actions to reduce T&D losses identified Text Value MoEW Policy Paper. MoEW Policy Paper - implementation commenced Text Value transmission projects identified, distribution being contracted to private service providers Transmission bid packages prepared. Distribution service provision being contracted. Roadmap for corporatization of EdL, with outline of restrucuring plans under implementation Priority actions outlined in Policy Paper under implementation. Page 5 of 7

6 EdL strengthening - finalization of ongoing projects: saida and baalbeck substations, national dispatch, 220kV network EdL strengthening - asset register finalized, inventory control finalized Text Value Policy Paper for electricity sector completed. Bid documentation for transmission packages will shortly be issued. Text Value Policy Paper for electricity sector completed EdL corporatization consultant soon to be hired. Transmission Strenghtening projects well underway EdL corporatization roadmap approved and under implementation EdL strengthening - detailed EdL financial statements, plans and forecasting being produced Text Value Policy Paper for electricity sector completed EdL corporatization consultant soon to be hired. EdL corporatization roadmap approved and under implementation. Data on Financial Performance (as of 28-Jul-2011) Financial Agreement(s) Key Dates Project Loan No. Status Approval Date Signing Date Effectiveness Date Closing Date P TF Effective 07-May May Aug Dec-2012 Disbursements (in Millions) Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P TF Effective USD Disbursement Graph Page 6 of 7

7 Key Decisions Regarding Implementation The Government has made good progress in hiring consultants to undertake the LNG concept study, and to support corporatization of EdL. The project is now on track for completion by the Project Closing Date Restructuring History Level two Approved on 22-Dec-2009, Level two Approved on 30-Dec-2010 Related Projects There are no related projects. Page 7 of 7