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World Bank Document The World Bank Report No: ISR4369 Implementation Status & Results Kenya Energy Sector Recovery Project (P083131) Operation Name: Energy Sector Recovery Project (P083131) Project Stage: Implementation Seq.No: 15 Status: ARCHIVED Archive Date: Country: Kenya Approval FY: 2005 Public Disclosure Authorized Product Line:IBRD/IDA Region: AFRICA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Ministry of Energy, Kenya Power and Lighting Co. Ltd., KenGen Key Dates Board Approval Date 13-Jul-2004 Original Closing Date 31-Mar-2010 Planned Mid Term Review Date 30-Nov-2011 Last Archived ISR Date 29-Mar-2011 Public Disclosure Copy Effectiveness Date 04-Nov-2004 Revised Closing Date 30-Sep-2013 Actual Mid Term Review Date Project Development Objectives Energy Sector Recovery Project (P083131) Project Development Objective (from Project Appraisal Document) (a) enhance the policy, institutional and regulatory environment for sector development, including private sector participation;and(b) increase access to electricity in urban and peri-urban areas while improving the efficiency, reliability and quality ofservice to customers. Has the Project Development Objective been changed since Board Approval of the Program? Public Disclosure Authorized ● Yes No Component(s) Component Name Component Cost INSTITUTIONAL AND CAPACITY BUILDING 7.50 STUDIES AND ENGINEERING SERVICES 18.70 GENERATION, OLKARIA II PLANT EXTENSION 119.10 DISTRIBUTION UPGRADING 229.60 Overall Ratings Previous Rating Current Rating Public Disclosure Authorized Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Implementation Status Overview Public Disclosure Copy The Generation component is completed. The 3rd geothermal generating unit of 35 megawatts at Olkaria II is operational since May 2010. In the Distribution component, about US$ 40 million of World Bank financing has been disbursed in goods and works contracts. These investments have contributed to a doubling of the number of KPLC customers from 735 Page 1 of 6 Public Disclosure Authorized The World Bank Report No: ISR4369 thousand in 2005 to 1.46 million in 2010 and to a reduction in KPLC system losses over the same period from 18.1 per cent to 16.2 per cent. In the project's capacity building component, KPLC and KenGen staff have benefited from a range of training programs. In the Technical Assistance component a number of important studies that support sector reform and development have been completed. They include a tariff study, development of regulatory instruments to implement the 2006 Energy Act, a geothermal resource optimization study for Olkaria, a business plan study for the Geothermal Development Corporation and a number of feasibility studies for network expansion such as one for the 220kV Nairobi ring as well as an LPG handling and storage study. Several other studies are ongoing such as for a Liquefied Natural Gas (LNG) terminal, wind resource mapping and an electricity network system study aimed at optimizing the design, function and operation of the system. The major activities of the institutional strengthening of KPLC have been completed with good results. Locations Country First Administrative Division Location Planned Actual Kenya Nairobi Area Westlands Public Disclosure Copy Kenya Coast Province Watamu Kenya Coast Province Voi Kenya Coast Province Tana River District Kenya Rift Valley Province Sondu Kenya Nairobi Area Ruaraka Kenya Rift Valley Province Olkaria Kenya Rift Valley Province Njoro Nyoka Sub-Location Kenya Not Entered Ngong Road Kenya Rift Valley Province Nakuru Kenya Rift Valley Province Naivasha Kenya Nairobi Area Nairobi South Kenya Nairobi Area Nairobi Kenya Coast Province Mombasa District Kenya Coast Province Mombasa Kenya Rift Valley Province Molo Kenya Coast Province Miwani Kenya Eastern Marsabit Public Disclosure Copy Kenya Coast Province Malindi Page 2 of 6 The World Bank Report No: ISR4369 Country First Administrative Division Location Planned Actual Kenya Central Province Makuyu Kenya Rift Valley Province Makutano Kenya Coast Province Likoni Kenya Rift Valley Province Lessos Sub-Location Kenya Rift Valley Province Lanet Kenya Coast Province Kwale District Public Disclosure Copy Kenya Nyanza Province Kisii Kenya Not Entered Mount Kenya Kenya Not Entered Republic of Kenya Kenya Nairobi Area Kariobangi Kenya Nairobi Area Karen Kenya Coast Province Kanamai Kenya Central Province Kamburu Sub-Location Kenya Eastern Embu Kenya Eastern Embori Farm Kenya Rift Valley Province Eldama Ravine Kenya Nairobi Area Dandora Kenya Central Province Chinga Location Kenya Rift Valley Province Cherangany Hills Kenya Western Province Butere Kenya Nyanza Province Bondo Kenya Coast Province Bamburi Kenya Eastern Athi River Public Disclosure Copy Results Page 3 of 6 The World Bank Report No: ISR4369 Project Development Objective Indicators Indicator Name Core Unit of Measure Baseline Current End Target Energy Law to support implementation of the Text Value Electricity law inadequate to Energy Act is largely Energy Act implemented. National Energy Policy is passed and support envisaged regulatory implemented implemented changes. Date 31-Dec-2004 08-Sep-2011 30-Sep-2013 Comments A number of items of secondary legislation that were pending have been drafted and will be gazetted in September 2011 for 40 days Public Disclosure Copy of public review before submission to the Attorney General Number of Independent Power Producers Text Value 2 5 8 (IPPs). Date 31-Dec-2004 08-Sep-2011 30-Sep-2013 Comments Target is on track. Percentage of disputes & complaints resolved Text Value N/A Target is on track 95 annually by ERC. Date 31-Dec-2004 08-Sep-2011 30-Sep-2013 Comments Value for FY10 is pending Households connected to electricity under the Text Value 0 350,000 (estimate) 450,000 project (cumulative number) Date 31-Dec-2004 08-Sep-2011 30-Sep-2013 Comments Target is on track Number of combined monthly distribution line Text Value 4.7 3 2 interruptions per 100km for 66kV and 333kV lines Date 13-Dec-2004 08-Sep-2011 30-Sep-2013 Comments Target is on track Number of people in urban areas provided with Number Value 0.00 1750000.00 2250000.00 access to electricity under the project by household connections Date 31-Dec-2004 08-Sep-2011 30-Sep-2013 Comments Estimate. Target is on track Assumes average household size of 5 (5*450,000 =2,250,000 Intermediate Results Indicators Public Disclosure Copy Page 4 of 6 The World Bank Report No: ISR4369 Indicator Name Core Unit of Measure Baseline Current End Target Sector regulatory agency is established, fully Text Value No sector-wide energy ERC is fully operational ERC fully operational. staffed, and operational. regulatory agency. Date 31-Dec-2004 08-Sep-2011 30-Sep-2013 Comments Target is met. National energy policy for efficient development Text Value No national energy policy. National energy policy in National energy policy in and operation of the sector is adopted and place place. implemented by the GOK. Date 31-Dec-2013 08-Sep-2011 30-Sep-2013 Comments Target is met. Annual transmission and distribution losses (% Text Value 18.7 16.0 in FY10 and 16.2 in 15.0 Public Disclosure Copy of energy purchased by KPLC). FY11 Date 31-Dec-2004 08-Sep-2011 30-Sep-2013 Comments There was an increase in losses to 16.2% in FY11 due in part to increased transfers of power between regions. The regulated target was 15.4%. The Regulator is reviewing the explanations provided by KPLC and the Bank will be provided a report. Generating capacity added under the project Text Value 0 35 35 (MW). Date 31-Dec-2004 08-Sep-2011 30-Sep-2013 Comments Target met. Olkaria II Unit 3 (35MW) became fully operational in May 2010. Kilometers of distribution lines constructed or Text Value 0 1,200 (estimate) 1,775 rehabilitated under the project (66kV, 33 kV, 11kV) (cumulative). Date 31-Dec-2004 08-Sep-2011 30-Sep-2013 Comments Value to be provided by KPLC is pending. Number of substations constructed or Text Value 0 30 (estimate) 45 rehabilitated under the project (cumulative). Date 31-Dec-2004 08-Sep-2011 30-Sep-2013 Comments Value to be provided by KPLC is pending. Public Disclosure Copy Data on Financial Performance (as of 15-Sep-2011) Financial Agreement(s) Key Dates Page 5 of 6 The World Bank Report No: ISR4369 Project Loan No. Status Approval Date Signing Date Effectiveness Date Closing Date P083131 IDA-39580 Effective 13-Jul-2004 04-Aug-2004 04-Nov-2004 30-Sep-2013 P083131 IDA-45720 Effective 02-Apr-2009 08-May-2009 03-Jul-2009 30-Sep-2013 P103458 TF-57573 Effective 14-Nov-2006 14-Nov-2006 11-Jun-2010 31-Dec-2018 Disbursements (in Millions) Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P083131 IDA-39580 Effective USD 80.00 80.00 0.00 75.49 9.91 94.00 P083131 IDA-45720 Effective USD 80.00 80.00 0.00 14.52 70.28 18.00 P103458 TF-57573 Effective USD 8.70 8.70 0.00 0.25 5.88 3.00 Public Disclosure Copy Disbursement Graph Key Decisions Regarding Implementation No decisions for disclosure Restructuring History CD Approved on 26-Nov-2008, Board Approved on 02-Apr-2009 Public Disclosure Copy Related Projects P103458-Kenya KenGen Carbon Finance umbrella, P110173-Kenya - Energy Sector Recovery Project Additional Financing Page 6 of 6.
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