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World Bank Document Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: PAD907 INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT APPRAISAL DOCUMENT ON A PROPOSED CREDIT IN THE AMOUNT OF SDR 50.6 MILLION (US$75 MILLION EQUIVALENT) Public Disclosure Authorized AND A PROPOSED SWEDISH GRANT IN THE AMOUNT OF US$25 MILLION (SWK 200 MILLION EQUIVALENT) TO THE REPUBLIC OF ZAMBIA FOR A Public Disclosure Authorized KARIBA DAM REHABILITATION PROJECT November 24, 2014 Global Water Practice (GWADR) Regional Integration Department Africa Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Public Disclosure Authorized Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective September 30, 2014) Currency Unit = New Zambian Kwacha ZMW 6.26 = US$1 US$ 1.48 = SDR 1 FISCAL YEAR January 01 – December 31 ABBREVIATIONS AND ACRONYMS 3D 3-Dimensional IWRM Integrated Water Resources Management AAR Alkali Aggregate Reaction kWh Kilowatt Hours ADF African Development Fund LCS Least Cost Selection AfDB African Development Bank LEAP Long-range Energy Alternatives Planning ASO Assistant Supplies Officer masl Meters above sea level BP Bank Policy MDTF Multi-Donor Trust Fund CAPCO Central African Power Corporation MSIOA Multi-Sector Investment Opportunity Analysis CCC Co-financiers’ Coordination Committee MW Megawatt CIWA Cooperation in International Waters in Africa NAO National Authorizing Officer CPI Consumer Price Index NPV Net Present Value CQS Consultants’ Qualifications Selection O&M Operation and Maintenance CSQA Construction Supervision & Quality Assurance OP Operational Policy DAB Dispute Adjudication Board ORAF Operational Risk Assessment Framework DSCR Debt Service Coverage Ratio PDO Project Development Objective EDF European Development Fund PoE Panel of Experts EPP Emergency Preparedness Plan PPA Public Procurement Act ESIA Environmental & Social Impact Assessment PPRS Procurement Post Reviews ESMPs Environmental & Social Management Plans QCBS Quality and Cost-Based Selection EU European Union RFP Request for Proposals FEM Fine Element Model RIDMP Regional Infrastructure Development Master Plan FIRR Financial Internal Rate of Return RPF Resettlement Policy Framework FRR Financial Rate of Return SADC Southern African Development Community GDP Gross Domestic Product SAPP Southern African Power Pool GHG Greenhouse Gas SBD Standard Bidding Documents GoZ Government of the Republic of Zimbabwe SOP Standing Operations Procedures GRZ Government of the Republic of Zambia ToRs Terms of Reference GWh Gigawatt Hours TS&S Technical Services & Supervision ha Hectares TTL Task Team Leader HCB Hidroelectrica Cahora Bassa USD United States Dollars HES Hydro-Electric Scheme WEAP Water Evaluation and Planning IBRD International Bank for Reconstruction & Development ZAMCOM Zambezi Watercourse Commission IC Individual Consultants ZAMSTRAT Zambezi River Basin IWRM Strategy ICOLD International Commission on Large Dams ZAMWIS Zambezi Water Information System IDA International Development Association ZESCO Zambia Electricity Supply Corporation IPCC Intergovernmental Panel on Climate Change ZETDC Zimbabwe Electricity Transmission and Distribution Company IPRs Independent Procurement Reviews ZPC Zimbabwe Power Corporation IRR Internal Rate of Return ZRA Zambezi River Authority ITCZ Inter-Tropical Convergence Zone ZVDF Zambezi Valley Development Fund Regional Vice President: Makhtar Diop Regional Director: Colin Bruce Senior Global Practice Director: Junaid Ahmad Practice Manager: Jonathan Kamkwalala Task Team Leader: Marcus Wishart AFRICA Kariba Dam Rehabilitation Project TABLE OF CONTENTS Page I. STRATEGIC CONTEXT .................................................................................................1 A. Regional Context .......................................................................................................... 1 B. Sectoral and Institutional Context ................................................................................. 2 C. Situations of Urgent Need of Assistance ...................................................................... 3 D. Higher Level Objectives to which the Project Contributes .......................................... 3 II. PROJECT DEVELOPMENT OBJECTIVE(S)..............................................................4 A. PDO............................................................................................................................... 4 B. Project Beneficiaries ..................................................................................................... 4 C. PDO Level Results Indicators ....................................................................................... 5 III. PROJECT DESCRIPTION ..............................................................................................5 A. Project Components ...................................................................................................... 5 B. Project Financing .......................................................................................................... 7 C. Series of Project Objective and Phases ......................................................................... 9 D. Lessons Learned and Reflected in the Project Design ................................................ 10 IV. IMPLEMENTATION .....................................................................................................10 A. Institutional and Implementation Arrangements ........................................................ 10 B. Results Monitoring and Evaluation ............................................................................ 11 C. Sustainability............................................................................................................... 12 V. KEY RISKS AND MITIGATION MEASURES ..........................................................12 A. Risk Ratings Summary Table ..................................................................................... 12 B. Overall Risk Rating Explanation ................................................................................ 13 VI. APPRAISAL SUMMARY ..............................................................................................14 A. Financial and Economic Analysis ............................................................................... 14 B. Technical ..................................................................................................................... 17 C. Financial Management ................................................................................................ 20 D. Procurement ................................................................................................................ 20 E. Social (including Safeguards) ..................................................................................... 22 F. Environment (including Safeguards) .......................................................................... 23 G. Other Safeguards Policies Triggered .......................................................................... 24 H. Communications ......................................................................................................... 25 Annex 1: Results Framework and Monitoring .........................................................................26 Annex 2: Detailed Project Description .......................................................................................29 Annex 3: Implementation Arrangements ..................................................................................41 Annex 4: Environmental and Social Action Plan .....................................................................58 Annex 5: Financial and Economic Analysis ..............................................................................68 Annex 6: Operational Risk Assessment Framework (ORAF) .................................................79 Annex 7: Implementation Support Plan ....................................................................................83 Annex 8: Map ...............................................................................................................................85 PAD DATA SHEET Africa Kariba Dam Rehabilitation Project (P146515) PROJECT APPRAISAL DOCUMENT AFRICA Report No.: PAD907 Basic Information Project ID EA Category Team Leader P146515 A - Full Assessment Marcus J. Wishart Lending Instrument Fragile and/or Capacity Constraints [ ] Investment Project Financing Financial Intermediaries [ ] Series of Projects [ X ] Project Implementation Start Date Project Implementation End Date 09-Dec-2014 28-Feb-2025 Expected Effectiveness Date Expected Closing Date 27-Feb-2015 28-Aug-2025 Joint IFC No Practice Senior Global Practice Country Director Regional Vice President Manager/Manager Director Jonathan S. Kamkwalala Junaid Kamal Ahmad Colin Bruce Makhtar Diop Borrower: Republic of Zambia Responsible Agency: Zambezi River Authority Contact: Munyaradzi Munodawafa Title: Chief Executive Telephone No.: +260 211 228401/02 Email: [email protected] Project Financing Data(in USD Million) [ ] Loan [ ] IDA Grant [ ] Guarantee [ X ] Credit [ X ] Grant [ ] Other Total Project Cost: 294.20 Total Bank Financing: 75.00 Financing Gap: 0.00 Financing Source Amount BORROWER/RECIPIENT 19.20 International Development Association (IDA) 75.00 African Development Bank 75.00 European Development Fund 100.00
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