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Renewable Energy Technologies Not Prioritised Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: 138090‐KI IMPLEMENTATION COMPLETION AND RESULTS REPORT TF0A5646 ON A SMALL GRANT Public Disclosure Authorized IN THE AMOUNT OF USD0.3 MILLION TO THE Republic of Kiribati FOR Scaling‐Up Renewable Energy Program Investment Plan 22 June 2019 Public Disclosure Authorized Energy & Extractives Global Practice East Asia And Pacific Region Public Disclosure Authorized Regional Vice President: Victoria Kwakwa Country Director: Michel Kerf Senior Global Practice Director: Riccardo Puliti Practice Manager: Jie Tang Task Team Leader(s): Kamleshwar Prasad Khelawan ICR Main Contributor: Abhishek Shastri ABBREVIATIONS AND ACRONYMS ADB Asian Development Bank AUD Australian Dollar EU European Union GDP Gross Domestic Product GoK Government of Kiribati GRS Grievance Redress Service KDP Kiribati Development Plan KIER Kiribati Integrated Energy Road Map KNEP Kiribati National Energy Policy KCCS Kiribati Copra Cooperative Society KCMCL Kiribati Copra Mill Company Ltd KJIP Kiribati Joint Implementation Plan for Climate Change and Disaster Risk Management 2014‐2020 KNEP Kiribati National Energy Policy 2009 KOIL Kiribati Oil Company KSEC Kiribati Solar Energy Company LEC Levelized Economic Cost MELAD Ministry of Environment, Lands and Agricultural Development MFED Ministry of Finance and Economic Development MLPID Ministry of Line and Phoenix Island Development MPWU Ministry of Public Works and Utilities MWh Megawatt hours MW Megawatt NZMFAT New Zealand Ministry of Foreign Affairs and Trade NDC Nationally Determined Contributions PDO Project Development Objective PUB Public Utilities Board PV Photovoltaic RPF Regional Partnership Framework RERF Revenue Equalization Reserve Fund SCF Strategic Climate Fund SE4ALL Sustainable Energy for All SIDS Small Islands Developing States SREP Scaling Up Renewable Energy Program SOE State Owned Enterprise UN United Nations WBG World Bank Group TABLE OF CONTENTS DATA SHEET ............................................................................................................................ 1 I. PROJECT CONTEXT AND DEVELOPMENT OBJECTIVES ........................................................ 3 II. OUTCOME ........................................................................................................................ 5 III. KEY FACTORS THAT AFFECTED IMPLEMENTATION AND OUTCOME .................................. 7 IV. BANK PERFORMANCE, COMPLIANCE ISSUES, AND RISK TO DEVELOPMENT OUTCOME .... 8 V. LESSONS LEARNED AND RECOMMENDATIONS ................................................................. 8 ANNEX 1. RESULTS FRAMEWORK AND KEY OUTPUTS ............................................................ 10 ANNEX 2. PROJECT COST BY COMPONENT............................................................................. 12 ANNEX 3. RECIPIENT, CO‐FINANCIER AND OTHER PARTNER/STAKEHOLDER COMMENTS ...... 13 ANNEX 4. SCALING‐UP RENEWABLE ENERGY IN LOW INCOME COUNTRIES INVESTMENT PLAN FOR THE REPUBLIC OF KIRIBATI ............................................................................................. 14 The World Bank Scaling-Up Renewable Energy Program Investment Plan (P164894) DATA SHEET BASIC INFORMATION Product Information Project ID Project Name P164894 Scaling‐Up Renewable Energy Program Investment Plan Country Financing Instrument Kiribati Investment Project Financing Original EA Category Revised EA Category Partial Assessment (B) Partial Assessment (B) Organizations Borrower Implementing Agency Ministry of Public Works and Utilities, Ministry of The World Bank Finance and Economic Development Project Development Objective (PDO) Original PDO The Project Development Objective (PDO) is to assist the Recipient in the preparation of an investment plan for consideration and endorsement under the Scaling‐Up Renewable Energy in Low Income Countries Program (SREP) of the Strategic Climate Fund (SCF). FINANCING FINANCE_TBL Original Amount (US$) Revised Amount (US$) Actual Disbursed (US$) Donor Financing Total 0.3 0 0.22 Page 1 of 14 The World Bank Scaling-Up Renewable Energy Program Investment Plan (P164894) KEY DATES Approval Effectiveness Original Closing Actual Closing 26‐Sep‐2017 26‐Sep‐2017 30 June 2018 31‐Dec‐2018 RESTRUCTURING AND/OR ADDITIONAL FINANCING Date(s) Amount Disbursed (US$M) Key Revisions 06‐Jun‐2018 0.00 Change in Loan Closing Date(s) KEY RATINGS Outcome Bank Performance M&E Quality Highly Satisfactory Satisfactory Satisfactory RATINGS OF PROJECT PERFORMANCE IN ISRs Actual No. Date ISR Archived DO Rating IP Rating Disbursements (US$M) 01 04‐May‐2018 Satisfactory Satisfactory 0.22 ADM STAFF Role At Approval At ICR Regional Vice President: Victoria Kwakwa Victoria Kwakwa Country Director: Michel Kerf Michel Kerf Senior Global Practice Director: Riccardo Puliti Riccardo Puliti Practice Manager: Jie Tang Jie Tang Task Team Leader(s): Kamleshwar Prasad Khelawan Kamleshwar Prasad Khelawan ICR Contributing Author: Abhishek Shastri Page 2 of 14 The World Bank Scaling-Up Renewable Energy Program Investment Plan (P164894) I. PROJECT CONTEXT AND DEVELOPMENT OBJECTIVES Context 1. In June 2014, the Scaling‐up Renewable Energy Program in Low‐Income Countries (SREP) Sub‐Committee approved the selection of 14 new SREP pilot countries, including Kiribati, for participation in SREP. The SREP was established, as a funding window under the Climate Investment Funds (CIF) in 2009, to pilot and demonstrate the economic, social and environmental viability of low carbon development pathways in the energy sector by creating new economic opportunities and increasing energy access using renewable energy. 2. Kiribati was subsequently invited to prepare an SREP Investment Plan (IP) to present the Government’s priorities for the scale‐up of renewable energy and identify investments for funding considerations with an allocation of US$300,000 of grant funds for preparation of the IP. 3. In June 2017, the Government of Kiribati (GoK) requested the World Bank lead the preparation of the SREP IP in close collaboration with the Asian Development Bank (ADB), and that the World Bank execute the grant on its behalf. The World Bank Regional Vice‐President approved the execution of the grant on an exceptional basis. The rationale for Bank execution was justified by the limited prior experience of the government implementing agency and insufficient government capacity at the time to implement the grant in a timely manner. It was assessed that the World Bank execution would not undermine country ownership, as the development of the IP complemented reforms being undertaken as part of the Kiribati National Energy Policy 2009 and Integrated Energy Road Map (KIER) 2016‐2025, which was being finalized by government and that the IP would be implemented in close consultation with the government and stakeholders. The Government demonstrated a strong ownership of the SREP process and established a SREP National Task Force to ensure that it was closely involved and supported the IP process. 4. A joint World Bank and ADB mission visited Kiribati in August 2017 with the objective of launching the preparation activities for the development of the IP, which included the identification of the program activities and necessary resources and the coordination with development partners and other key stakeholders. 5. The Republic of Kiribati is a Small Island Developing State (SIDS) which faces a range of economic and environmental challenges. Kiribati is one of the world’s least developed countries and is one of the smallest, most remote and most geographically dispersed countries in the world, which creates significant economic growth and service delivery challenges. Recent domestic economic performance has been volatile, but stronger than the historical average; overall, real GDP growth averaged 3.9 percent over 2013‐17, compared with 0.8 percent in the preceding five‐year period. The Government of Kiribati has also sought to improve the governance of its SOE’s through privatization; public private partnerships; contracting out services; the production of annual statements of intent by all SOEs and the production of timely half yearly and annual reports by all SOEs. These changes have contributed to improved SOE profitability. Kiribati is one of the most vulnerable countries to climate change. The majority of land in Kiribati lies little more than one meter above sea level and is therefore at the forefront of climate Page 3 of 14 The World Bank Scaling-Up Renewable Energy Program Investment Plan (P164894) change impacts, with evidence that it is already being impacted by rising sea levels, increased storm strength and frequency and unpredictable precipitation. 6. The Government of Kiribati had undertaken greater long‐term planning of its energy sector in the lead up to the preparation of the SREP IP. The Kiribati Development Plan (KDP) 2008‐2011 set the scene for the need to develop an explicit energy policy to advance of the energy sector, which led to the development of the Kiribati National Energy Policy (KNEP) in 2009. The KNEP was focused on improving coordination of energy‐related decision making and strengthening the policy and regulatory framework within which public and private energy sector participants could make more informed planning and investment decisions. In 2011, Kiribati joined other Pacific Island countries in collectively agreeing on the value of developing credible, comprehensive energy roadmaps to overcome the regulatory, technical and financial
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