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World Bank Document Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No.: PAD1450 AFGHANISTAN RECONSTRUCTION TRUST FUND PROJECT APPRAISAL DOCUMENT ON A PROPOSED GRANT IN THE AMOUNT OF US$83 MILLION Public Disclosure Authorized TO THE ISLAMIC REPUBLIC OF AFGHANISTAN FOR A NAGHLU HYDROPOWER REHABILITATION PROJECT - PHASE I NOVEMBER 22, 2015 Public Disclosure Authorized Energy & Extractives Global Practice South Asia Region Public Disclosure Authorized 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 Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective as of July 01, 2015) Currency Unit = Afghani (AFN) AFN 1,000 = US$16.72 US$1.00 = AFN 60.15 FISCAL YEAR December 21 – December 20 ABBREVIATIONS AND ACRONYMS ADB Asian Development Bank AFMIS Afghanistan Financial Management Information System ANDS Afghanistan National Development Strategy ARTF Afghanistan Reconstruction Trust Fund CDC Community Development Council CEO Chief Executive Officer CFO Chief Financial Officer COO Chief Operating Officer DA Designated Account DABS Da Afghanistan Breshna Sherkat EPRP Emergency Power Rehabilitation Project ERR Economic Rate of Return ESAP Environmental and Social Advisory Panel ESMF Environmental and Social Management Framework ESMP Environmental and Social Management Plan ESIA Environmental and Social Impact Assessment FGD Focus Group Discussion FM Financial Management GDP Gross Domestic Product GHG Greenhouse Gas GoA Government of Afghanistan GoP Government of Pakistan GPN General Procurement Notice GRC Grievance Redress Committee GRM Grievance Redress Mechanism GRS Grievance Redress Service ICB International Competitive Bidding IFR Interim Financial Report MEW Ministry of Energy and Water MoF Ministry of Finance M&E Monitoring and Evaluation NCB National Competitive Bidding NEPS North East Power System NESP National Energy Supply Program NGO Nongovernmental Organization NHPP Naghlu Hydropower Plant NHRP Naghlu Hydropower Rehabilitation Project NPV Net Present Value NSP National Solidarity Program O&M Operations and Maintenance PDO Project Development Objective PFMRP Public Financial Management Reform Project PMO Project Management Office PSC Project Steering Committee PTAP Project Technical Advisory Panel REoI Request for Expression of Interest RFP Request for Proposal RPF Resettlement Policy Framework SA Supervisory Agent SAO Supreme Audit Office SBD Standard Bidding Document SCD Systematic Country Diagnostic SDU Special Disbursement Unit SORT Systematic Operations Risk-Rating Tool TA Technical Assistance ToR Terms of Reference USAID United States Agency for International Development UXOS Unexploded Ordnance Regional Vice President: Annette Dixon Country Director: Robert J. Saum Senior Global Practice Director: Anita Marangoly George Practice Manager: Julia Bucknall Task Team Leader(s): Abedalrazq Khalil/Fanny Missfeldt-Ringius AFGHANISTAN Naghlu Hydropower Rehabilitation Project – Phase I (P132944) Table of Contents PAD DATA SHEET ....................................................................................................................... i I. STRATEGIC CONTEXT .................................................................................................1 A. Country Context ............................................................................................................ 1 B. Sectoral and Institutional Context ................................................................................. 2 C. Higher Level Objectives to which the Project Contributes .......................................... 6 II. PROJECT DEVELOPMENT OBJECTIVES ................................................................8 A. PDO............................................................................................................................... 8 Project Beneficiaries ........................................................................................................... 8 PDO Level Results Indicators ............................................................................................. 8 III. PROJECT DESCRIPTION ..............................................................................................8 A. Project Components ...................................................................................................... 8 B. Project Financing ........................................................................................................ 11 Project Cost and Financing ............................................................................................... 11 C. Lessons Learned and Reflected in the Project Design ................................................ 12 IV. IMPLEMENTATION .....................................................................................................14 A. Institutional and Implementation Arrangements ........................................................ 14 B. Results Monitoring and Evaluation ............................................................................ 15 C. Sustainability............................................................................................................... 15 V. KEY RISKS ......................................................................................................................15 A. Overall Risk Rating and Explanation of Key Risks.................................................... 16 VI. APPRAISAL SUMMARY ..............................................................................................17 A. Economic and Financial Analysis ............................................................................... 17 B. Technical ..................................................................................................................... 19 C. Financial Management ................................................................................................ 20 D. Procurement ................................................................................................................ 21 E. Environment (including Safeguards) .......................................................................... 22 F. Social (including Safeguards) ..................................................................................... 24 G. Consultation, Communications and Community Relations ........................................ 25 H. World Bank Grievance Redress Mechanisms ............................................................. 26 Annex 1: Results Framework and Monitoring .........................................................................27 Annex 2: Detailed Project Description .......................................................................................30 Annex 3: Implementation Arrangements ..................................................................................36 Annex 4: Implementation Support Plan ....................................................................................62 Annex 5: Economic and Financial Analysis ..............................................................................64 PAD DATA SHEET AFGHANISTAN Naghlu Hydropower Rehabilitation Project- Phase I (P132944) PROJECT APPRAISAL DOCUMENT SOUTH ASIA GEE06 Report No.: PAD1450 Basic Information Project ID EA Category Team Leader(s) P132944 A - Full Assessment Abedalrazq F. Khalil Lending Instrument Fragile and/or Capacity Constraints [ X ] Investment Project Financing - Fragile States - Post-Conflict Financial Intermediaries [ ] Series of Projects [ ] Project Implementation Start Date Project Implementation End Date 01-Dec-2015 30-Sep-2022 Expected Effectiveness Date Expected Closing Date 31-Dec-2015 30-Sep-2022 Joint IFC No Practice Senior Global Practice Country Director Regional Vice President Manager/Manager Director Julia Bucknall Anita Marangoly George Robert J. Saum Annette Dixon Approval Authority Approval Authority RVP Decision Please Explain The proposed grant will be formally approved by the country director for Afghanistan, on behalf of the World Bank and as the chair of the Management Committee (MC) of the Afghanistan Reconstruction Trust Fund (ARTF). Borrower: Islamic Republic of Afghanistan Responsible Agency: Da Afghanistan Breshna Sherkat (DABS) i Contact: Eng. Shekeeb Nessar Title: Chief Operations Officer Telephone No.: 0093-700294722 Email: [email protected] Safeguards Deferral (from Decision Review Decision Note) Will the review of Safeguards be deferred? [ ] Yes [ X ] No Project Financing Data (in US$, millions) [ ] Loan [ ] IDA Grant [ ] Guarantee [ ] Credit [ X ] Grant [ ] Other Total Project Cost: 83.00 Total Bank Financing: 0.00 Financing Gap: 0.00 Financing Source Amount Borrower 0.00 Afghanistan Reconstruction Trust Fund 83.00 Total 83.00 Expected Disbursements (in US$, millions) Fiscal Year 2016 2017 2018 2019 2020 2021 2022 Annual 0.50 2.50 5.00 12.00 15.00 23.00 25.00 Cumulative 0.50 3.00 8.00 20.00 35.00 58.00 83.00 Institutional Data Practice Area (Lead) Energy & Extractives Cross Cutting Topics [ X ] Climate Change [ X ] Fragile, Conflict & Violence [ ] Gender [ X ] Jobs [ ] Public Private Partnership Sectors / Climate Change Sector (Maximum 5 and total % must equal 100) Major Sector Sector % Adaptation Mitigation Co-benefits % Co-benefits % Energy and mining Hydropower 70 0 100 Water, sanitation and flood protection General water, sanitation 30 100 0 and flood protection sector Total 100 ii [ ] I
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