EAST ASIA AND PACIFIC Solomon Islands Energy & Extractives Global Practice IBRD/IDA Investment Project Financing FY 2009 Seq No: 14 ARCHIVED on 16-May-2018 ISR32246 Implementing Agencies: Ministry of Finance and Treasury, Solomon Islands Electricity Authority Key Dates Key Project Dates Bank Approval Date:08-Jul-2008 Planned Mid Term Review Date:-- Original Closing Date:30-Dec-2012 Project Development Objectives Effectiveness Date:25-Jun-2009 Actual Mid-Term Review Date:-- Revised Closing Date:31-Mar-2019 Project Development Objective (from Project Appraisal Document) The objective of the project is to improve operational efficiency, system reliability and financial sustainability of SIEAthrough:improved financial and operational management, reduction of losses, and increased revenue collection. Has the Project Development Objective been changed since Board Approval of the Project Objective? Yes Board Approved Revised Project Development Objective (If project is formally restructured)phrpdodel The objective of the project is to improve operational efficiency, system reliability and financial sustainability of SIEA. Components Name Strengthening Management:(Cost $4.00 M) Financial Operations:(Cost $0.70 M) Technical Operations:(Cost $8.00 M) Contingency Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Moderately Satisfactory Overall Implementation Progress (IP) Moderately Satisfactory Moderately Satisfactory 5/16/2018 Page 1 of 7
Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions The original financing of SDR2.50 million (IDA Grant H4150) has fully disbursed and closed on June 30, 2017. The additional financing (IDA Grant- H9130 and IDA Credit-53790) is due to close on March 31, 2019. An amount of SDR2.3million has recently been cancelled from the IDA credit due to cost savings in the project. While there have been some implementation delays, progress against the Project Development Objective indicators remains generally strong, with Solomon Islands Electricity Authority (SIEA), now operating as Solomon Power (SP), continuing to achieve strong financial, reliability, and commercial performance and being on track to meet or exceed the PDO indicator targets. Activities under the Additional Financing, including implementation of the large capital work contracts financed under the project is generally on track to be completed by the project closing date. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Substantial Substantial Macroeconomic -- Moderate Moderate Sector Strategies and Policies -- Low Low Technical Design of Project or Program -- Moderate Moderate Institutional Capacity for Implementation and Sustainability -- Substantial Substantial Fiduciary -- Substantial Substantial Environment and Social -- Moderate Moderate Stakeholders -- Moderate Moderate Other -- -- -- Overall -- Substantial Substantial Results Project Development Objective Indicators Quarterly financial management reports, and rolling projections for SIEA performance within 14 days after end of each quarter (Text, Custom) Value N Y Y Y 5/16/2018 Page 2 of 7
Number of days between due date of customer bill, and if not paid, notice of arrears (Days, Custom) Value 365.00 15.00 15.00 15.00 System Average Interruption Duration Index (SAIDI) (Minutes, Custom) Value 51,840.00 1,870.90 1,870.90 2,000.00 System Average Interruption Frequency Index (SAIFI) (Minutes, Custom) Value 816.00 21.20 21.20 85.00 System losses (Percentage, Custom) 5/16/2018 Page 3 of 7
Value 27.00 18.00 18.00 18.00 Average number of debtor days to collect billed revenue (Days, Custom) Value 360.00 40.52 40.52 35.00 Collection ratio (Percentage, Custom) Value 72.00 65.00 65.00 70.00 Date 31-Dec-2007 14-Mar-2018 14-Mar-2018 31-Mar-2019 Revenue per Kwh generated (Text, Custom) Value SB$ 1.39/KWh SB$ 4.5/KWh SB$ 4.5/KWh SB$ 4.5/KWh Date 30-Jun-2008 21-Mar-2018 21-Mar-2018 01-Apr-2019 Overall Comments Intermediate Results Indicators 5/16/2018 Page 4 of 7
Commissioning of one 12MVA transformer at Lungga Power Station (Text, Custom) Date 13-Feb-2014 15-Jan-2018 15-Jan-2018 31-Mar-2019 Commissioning of 5MVA 33kV/11kV transformer and a second 33 kv switchboard at Ranadi (Text, Custom) Date 13-Feb-2014 02-May-2017 15-Jan-2018 31-Mar-2019 Kola'a Ridge 33/11kV substation commissioned with one 7.5MVA transformer (Text, Custom) Date 13-Feb-2014 15-Jan-2018 15-Jan-2018 31-Mar-2019 Feeder 12 load relocated from Lungga 11kV generation bus to East Honiara Substation (Text, Custom) Date 13-Feb-2014 15-Jan-2018 15-Jan-2018 31-Mar-2019 5/16/2018 Page 5 of 7
Net Profit before tax (Text, Custom) Value Loss SB$ 44M Profit SB$98M Profit SB$98M Profit SB$98M Date 30-Jun-2008 21-Mar-2018 21-Mar-2018 01-Apr-2019 Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P100311 IDA-53790 Effective USD 11.00 7.70 3.30 3.55 3.46 51% P100311 IDA-H4150 Closed USD 4.00 4.00 0.00 3.83 0.00 100% P100311 IDA-H9130 Effective USD 2.00 2.00 0.00 0.55 1.42 28% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P100311 IDA-53790 Effective 21-Mar-2014 01-Apr-2014 23-Jun-2014 30-Jun-2017 31-Mar-2019 P100311 IDA-H4150 Closed 08-Jul-2008 28-Jul-2008 25-Jun-2009 30-Dec-2012 30-Jun-2017 P100311 IDA-H9130 Effective 21-Mar-2014 01-Apr-2014 23-Jun-2014 30-Jun-2017 31-Mar-2019 Cumulative Disbursements 5/16/2018 Page 6 of 7
Restructuring History Level Approved on 22-Mar-2012,Level 2 Approved on 01-May-2017,Level 2 Approved on 10-Apr-2018 Related Project(s) P146816-Solomon Islands Sustainable Energy, Additional Financing 5/16/2018 Page 7 of 7