Cote D'ivoire Project Appraisal R
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AFRICAN DEVELOPMENT BANK PROJECT TO IMPROVE ACCESS TO ELECTRICITY IN RURAL AREAS COUNTRY : COTE D’IVOIRE closure Authorized Public Dis PROJECT APPRAISAL REPORT d e ure Authoriz Public Disclos RDGW October 2018 Translated Document TABLE OF CONTENTS I. STRATEGIC ORIENTATION AND RATIONALE ...................................................................... 1 1.1. Project Linkages with Country Strategy and Objectives ............................................................. 1 1.2. Rationale for Bank Intervention .................................................................................................. 1 1.3. Aid Coordination ......................................................................................................................... 2 II. PROJECT DESCRIPTION ............................................................................................................ 3 2.1. Project Description and Components ......................................................................................... 3 2.2. Technical Solution Adopted and Alternatives Considered .......................................................... 4 2.3. Project Type ................................................................................................................................ 5 2.4. Project Cost and Financing Arrangements ................................................................................. 5 2.5. Project Area and Beneficiaries ................................................................................................... 7 2.6. Participatory Approach to Project Identification, Design and Implementation ......................... 7 2.7. Bank Group Experience and Lessons Reflected in Project Design ............................................. 8 2.8. Key Performance Indicators........................................................................................................ 9 III. PROJECT FEASIBILITY ......................................................................................................... 10 3.1. Economic and Financial Performance ...................................................................................... 10 3.2. Environmental and Social Impact ............................................................................................. 10 3.3. Impact of Energy Reslience on Fragility Factors ..................................................................... 12 IV. PROJECT IMPLEMENTATION ............................................................................................. 12 4.1. Implementation Arrangements .................................................................................................. 12 4.2. Procurement Arrangements....................................................................................................... 14 4.3. Financial Management and Disbursement Arrangements ........................................................ 14 4.4. Monitoring ................................................................................................................................. 15 4.5. Governance ............................................................................................................................... 16 4.6. Sustainability ............................................................................................................................. 16 4.7. Risk Management ...................................................................................................................... 17 V. LEGAL FRAMEWORK ............................................................................................................... 17 5.1. Legal Instrument ........................................................................................................................ 17 5.2. Conditions for Bank Intervention .............................................................................................. 18 5.3. Compliance with Bank Policies ................................................................................................. 19 VI. RECOMMENDATION ............................................................................................................. 19 Annex I : Comparative Socio-economic Indicators of Côte d’Ivoire ....................................................... I Annex II : Table of Bank Portfolio in Côte d’Ivoire (June 2018) ........................................................... II Annex III : Major Ongoing Projects in Côte d’Ivoire Financed by the Bank and other Partners ........ IV Annex IV : Map of Côte d’Ivoire ............................................................................................................V Annex V : Rationale for Côte d’Ivoire’s Counterpart Contribution to Project Financing .................... VI CURRENCY EQUIVALENTS July 2018 UA 1 = XOF 791.43 UA 1 = EUR 1.21 UA 1 = USD 1.41 FISCAL YEAR 1 January to 31 December WEIGHTS AND MEASURES 1 kilometre (km) = 1 000 m 1 km² = 1 000 000 m² 1 hectare (ha) = 10 000 m² 1 tonne = 1 000 kg 1 kilojoule (kJ) = 1 000 Joule (J) 1 kilovolt (kV) = 1 000 Volt (V) 1 kilovolt-ampere (kVA) = 1 000 Volt – Ampere (VA) 1 kilowatt (kW) = 1 000 Watt 1 Megawatt (MW) = 1 000 000 W = 1 000 kW 1 Gigawatt (GW) = 1 000 000 kW = 1 000 MW 1 kilowatt hour (kWh) = 1 000 Watt hour = 3 600 000 Joules (J) 1 Megawatt hour (MWh) = 1 000 000 Wh = 1 000 kWh 1 Gigawatt hour (GWh) = 1 000 000 kWh = 1 000 MWh 1 tonne of oil equivalent (Toe) = 41 868 Joules = 11 630 kWh 1 million tonnes of oil equivalent (MToe) = 1 000 000 Toe i ACRONYMS AND ABBREVIATIONS ADF African Development Fund AFD French Development Agency AfDB African Development Bank BD Bidding Document BOAD West African Development Bank CSP Country Strategy Paper EBID ECOWAS Bank for Investment and Development EIB European Investment Bank ENPV Economic Net Present Value ERR Economic Rate of Return ESIA Environmental and Social Impact Assessment ESMP Environmental and Social Management Plan EU European Union FD Final Design FRR Financial Rate of Return GDP Gross Domestic Product IEC Information, Education and Communication IsDB Islamic Development Bank LV Low Voltage MV Medium Voltage MW Megawatt NGO Non-Governmental Organisation NPV Net Present Value PEPT Electricity for All Programme PND National Development Plan RMC Regional Member Country SME Small- and Medium-sized Enterprise SMI Small- and Medium-sized Industry TOE Tonne of Oil Equivalent UA Unit of Account USD United States Dollar WAEMU West African Economic and Monetary Union WB World Bank ii PROJECT INFORMATION SHEET BORROWER : COTE D’IVOIRE EXECUTING AGENCY : COTE D’IVOIRE ENERGIES Financing Plan Source Amounts (in EUR million) Instrument AfDB 42.31 Loan GOVERNMENT 6.51 Counterpart Contribution TOTAL 48.82 Key AfDB Financial Information Loan Currency EURO (EUR) Loan Type Fully flexible loan Maturity Up to 25 years, including an 8-year grace period Grace Period 8 years Weighted Average Maturity** 16.75 years Reimbursements 34 half-yearly payments at the end of the grace period Interest Rate Base rate + Financing cost margin + Lending spread + Maturity premium Base Rate Floating (EURIBOR EUR-6 months, set 2 days before the start of the applicable interest period), with a free-floating base rate option Financing Cost Margin The Bank’s financing cost margin revised twice yearly, on 1 January for the half-year ending 31 December, and 1 July for the half-year ending 30 June. This margin is applied at the EURIBOR rate set on 1 February and 1 August Lending Spread 80 basis points (0.8%) Maturity Premium 20 basis points (0.2%) Front-end Fee 0.25% of the loan amount payable latest 60 days following the date of effectiveness of the loan agreements Commitment Fee 0.25% per year of the undisbursed amount. It shall become effective 60 days following date of signature of the loan agreement and shall be payable on the due dates, including the grace period Base Rate Conversion Option* Besides the free fixing option, the Borrower may revert to the floating rate or reset the rate on all or part of the disbursed amount of its loan. Transaction fees apply Rate Cap or Collar Option* : The Borrower may cap or collar the base rate for all or part of the disbursed amount of its loan. Transaction fees apply Loan Currency Conversion Option* The Borrower may change the currency of all or part of its loan, whether disbursed or not, into another loan currency of the Bank. Transaction fees apply FRR (baseline scenario) 12.62 % NPV (baseline scenario) XOF 17.96 billion ERR (baseline scenario) 22.01% ENPV (baseline scenario) XOF 37.20 billion *Conversion options and transaction fees are governed by the Bank’s Conversion Guidelines available at: http://www.afdb.org/fr/documents/document/guidelines-for-conversion-of-loan-terms-july-2014-87643/. Timeframe – Main Milestones (projected) Concept Note approval May 2018 Project approval October 2018 ADB loan effectiveness December 2018 Closing date 31 December 2021 Last reimbursement December 2043 iii PROJECT SUMMARY 1. Project Overview: The Project to Improve Access to Electricity in Rural Areas (PAEMIR) is an investment operation to extend medium-voltage electricity networks and connections in rural areas. The project covers three districts in northern Côte d'Ivoire (Savanes, Woroba and Zanzan), and concerns 426 localities with an estimated population of 259,486. The project’s objective is to increase the electricity access rate in Côte d'Ivoire, and more specifically in the above-mentioned districts where access is lower than