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World Bank Document Documentof TheWorld Bank FOR OFFICIALUSE ONLY Public Disclosure Authorized ReportNo. 9492 PROJECT COMPLETIONREPORT COTE D'IVOIRE Public Disclosure Authorized FIRST POWER PROJECT (LOAN 1896-IVC) A2RIL 12, 1491 Public Disclosure Authorized Industry and Energy OperationsDivision Public Disclosure Authorized Country Department I Africa Regional Office This documenthas a restricteddistribution and may be used by recipientsonly in theperformance of their official duties. Its contents may not otherwise be disclosedwithout World Bank authorization. LIST OF ABBREVIATIONS CIDA Canadian InternationalDevelopment Agency EDC Export DevelopmentCorporation EECI Energie Electrique de la Cote d'Ivoire ESAL Energy Sector Adjustment Loan KfW Kreditanstalt fur Wiederaufbau TH WORLDiANxg FOROFFICIAL USE ONLY wWsW,fon.0 C. 20433 VS A o01tuQaf DirLetowg-OGMT. Opetwatls balsagla April 12, 1991 MEMORANDUMTO THE EXECUTIVE DIRECTORS AND THE PRESIDENT SUBJECT: Project Completion Report on Cote d'Ivoire First Power Prolect (Loan 1826-IV9) Attached, for information, is a copy of a report entitled "Projecc Completion Report on Cote d'Ivoire - First Power Project (Loan 1896-IVC)" prepared by the Africa Regional Office. No audit of this project has been made by the Operations Evaluation Department at this time. Attachment ThdsccuftotX= 2 numUddmbunuO nndMAy be Umd by ugwggs in *eps tee Of ten dbiMduutcfSamm oau maynot heitrrube dwsXne wTol WOWe bakm*sJroma. FOR OFFICIALUSE ONLY COTE D'IVOIRE FIRST POWER PROJECT (Loan 1896-IVC) PROJECT COMPLETIONREPORT Table of Contents Page No. Preface................................................ i Evaluation Summary....................................... ii PART I: PROJECT REVlEW FROM THE BANK'S PERSPECTIVE 1. Project Identity. .............................1 2. Background. ...................................1 3. Project Objectivesand Description . .. 2 4. Project Lesign and Organization ... 3 5. Project Implementation . 4 6. Project Results................................ 7 7. Project Sustainability . 8 8. Bank Performance. .............................9 9. Borrower Performance ... 10 10. Project Relationship . 11 11. Coneulting Services . 12 12. Project Documentationand Data ... 13 PART III STATISTICAL INFORMATION 1. Related Bank Loans . .15 2. Project Timetable . 16 3. Loan Disbursements . 17 4. Project Implementation . 18 5. Project Costs and Financing . 19 6. Project Results . 21 7. Status of Covenants . 23 8. Missions . 24 ANNEXES Annex 1 Project Descriptionas Appraised. 25 Annex 2 Changes in Size of Project Components . 27 Annex 3 The Man Spider Network . 29 Annex 4 Economic Aspects for the area of the Man Spider Network . 34 Annex 5 EECI Financial Statements . 36 This document has a restricteddistribution and may be used by recipientsonly in the performance of their officialduties. Its contents may not otherwisebe disclosedwithout World Bank authorization. - i - COTE D'IVOIRE FIRST POWER PROJECT (LOAN 1896-IVC) PROJECT COMPLETION REPORT PREFACE This is the Project Completion Report (PCR) for the First Power Project in Cote d'Ivoire, for which Loan 1896-IVC in the amount of US$33 million was approved on July 22, 1980. The loan was closed on December 31, 1988, three years behind schedvle. It was fully disbursed, the last disbursementbeing made on March 24, 1988. The PCR was prepared by the Industry and Energy Operation Division of the Occidental and Central Africa Department, Africa Regional Office (Preface,Evaluation Summary, Parts I and III). A letter requecting the Borrower to prepare Part II and a copy of Part I were sent to the Borrower for comments on March 22, and March 23, 1991, respectively. The Borrower sent neither Part II nor comments on Part I. Preparationof this PCR was started during the Bank's final supervisionmission of the project in January 1990, and is based, inter alia, on the Staff Appraisal Report; the Loan, and Guarantee Agreements; supervision reports; consultants'reports; correspondencebetween Bank and Borrower; and internal Bank memoranda. X Li - COTE D'IVOIRE FIRST POWER PROJECT (LOAN 1896-IVC) PROJECT COMPLETIONREPORT EVALUATION SUMMARY 1. Objectives. The objectives of the project were twofold; to extend electricity supply to the Man region of western Cote d'Ivoire, and to strengthen the Borrower as an institution. The first objective translated into a program of village electrification,originally intended to benefit 172 villages. The second included a training program to prepare senior staff of the utility to replace expatriate technicians,a maintenance shop to service heavy equipment in the country, and a set of financial and engineeringstudies. 2. !mplementationexperience. The implementationschedule slipped by two years as compared with the plans, due to unforeseeable circumstances. These included the delay by another agency in choosing the consultantwho would also manage the Bank's project, a change in design, and the financial vicissitudesof the Borrower due to the 1982-1984 drought. Once starte4, the project proceeded smoothly. The relative size of the project components changed considerablywhen it turned out that fewer villages than expected were ready for electrification. Other componentswere then increasedto make full use "f the loan resources. 3. Results. The quantitativeresults w' e affected by the recession that afflicted the country during the 19808. 104 villages received electricity service for the first time, and in 16 more the main grid replaced local diesel generators as a source. The number of new users did not grow at the pace hoped for, among other reasons because of the high price of electricity compared with the dispcsableincome in the villages, see section 6. Project Results. The shutdown of the local diesel stations brought cost savings to the utility, and better quality of service to the users. The training program enabled the utility to expand its Ivorian technical staff. The new maintenance facilitiesfulfilled all expectations. The studies, especially the new ones for the institutional and financial reorganization,filled a need that had become urgent as a consequence of the problems of the 19809. When the recommendationsare fully implementedthey should produce a lasting improvement. 4. Sustainability. The demand for electricityhad grown at only a moderate rate in the Man area in the five years prior to implementationof the project. The load in the newly connectedvillages has, as expected, increased rapidly during the first three years of service, but should re-ert to the normal rate for the region when most of the users that can afford it have been served. The contributionto distributioncosts by the new cust.omersshould suffice to cover the running costs of the new - iii - extensions. It is however unlikely that any substantialportion of the investmentcosts can be amortized over the useful life of the facilities unless there is an unexpectedimprovement in the disposable income of the users. 5. Findings and lessons learned. The electrificationproject confirmed that consumers'ability to pay and cost of installationare fundamental factors for the success of the project, and should rank ahead of preoccupationwith modern design or durabilitybased on experiencein temperate climates. Further, that the staff training should emphasize design and operation of distributionfacilities in the country, rather than overseas. The institutionalstrengthening of the utility should look beyond the overall corporate level, and include improvementsat the divisoxn and department level. Middle managers should be helped to become proficient in project accounting,and cost control of the subprojects for which they are, or should be, directly responsible. This would result in more autonomy and efficiency,provided the personnel remains in post long enough to acquire the necessary experience. Corporate reorganizationsand shifts of personnel should not be encouragedunless continuity of functions can be ensured. Finally, when a substantialreallocation of funds occurs within a loan, the task of supervisionwould be simplified if all changes were recorded and explaired in a single document, particularlywhen the supervising staff has to be rotated during the life of the loan. COTE D'IVOIRE FIRST POWER PROJECT LOAN 1896-IVC PRf ECT COMPLETIONREPORT PART I: PROJECT REVIEW FROM THE BANK'S PERSPECTIVE 1. Proiect Identity Project Name : First Power Project Loan No 1896IVC RVP Unit Africa Region Country Cote d'Ivoire Sector Energy Subsector X Power 2. Background 2.01 Policy Context: The project was conceived at the end of the 1970s, a time when the Cote d'Ivoire was at the peak of its prosperity, following a number of years of favorableearnings from agricultural exports. The governmentembarked on an ambitious program to improve the standards of living in the countryside. The road network was extended and improved, a well drilling program provided drinking water, and a rural electrificationprogram was undertaken. Health and education facilities received correspondingattention. This policy continues to be implemented to this day, albeit with a reduced scope. Ten years of depressed markets for the country's major exports, coffee and cocoa, have substantially reduced the government'scapacity to finance programs with more social than financial benefits. Neverthelessit remains an important goal to make life in the villages more Lttractiveand to slow down the influx of people to Abidjan. The capital and the southeasternpart of the country were the first to be served by an extensive electricity system.
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