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Document of The World Bank FOR OFFICIAL USE ONLY Public Disclosure Authorized Report No: 32276-AFR PROJECT APPRAISAL DOCUMENT ON A PROPOSED CEDIT Public Disclosure Authorized IN THE AMOUNT OF SDR 25.6 MILLION (US$40 MILLION EQUIVALENT) TO THE REPUBLIC OF GHANA IN SUPPORT OF THE FIRST PHASE OF THE US$ 100 MILLION COASTAL TRANSMISSION BACKBONE PROJECT OF THE WEST AFRICA POWER POOL (APL) PROGRAM Public Disclosure Authorized June 1,2005 Energy Unit Infrastructure Group Africa regional Office 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 May 13,2005) Currency Unit = Ghanaian Cedis Cedis 9015 = US$1 US$1.51209 = SDRl FISCAL YEAR January 1 - December 31 ABBREVIATIONS AND ACRONYMS ACC Area Coordination Centers AFD Agence Franqaise de Dkveloppement/(French Development Agency) AfDB African Development Bank APL Adaptable Program Lending bbl Barrel (of oil) BOAD Banque Ouest Africaine de Dkveloppement / Bank for West Africa Btu British Thermal Units CAS Country Assistance Strategy CEB CommunautC d’ElectricitC du BCnin/(Togo/Benin Bi-national Electricity Company) CFAA Country Financial Accountability Assessment CIE Compagnie Ivoirienne d’Electricitk/(Ivorian Electricity Operation Company) COM Committee of Ministers EA Environmental Assessment EEO ECOWAS Energy Observatory EBID ECOWAS Bank of Investment and Development ECOWAS Economic Community ofWest African States ECSEE Energy Community of South East Europe EEP ECOWAS Energy Protocol EIB European Investment Bank EIRR Economic Internal Rate ofReturn FMR Financial Monitoring Reports FMS Financial Management System GWh Giga Watt hours ICB International Competitive Bidding IDA International Development Association IF1 International Financial Institution ITWG Institutional and Technical Working Groups KFAED Kuwaiti Fund for Arab Economic Development KWh Kilo Watt hours LCO Light Crude Oil MBtE Monitoring and Evaluation MDA Ministries, Departments and Agencies MIS Management Information System mm million MW Mega Watt NEPA Nigerian Electric Power Authority NEPAD New Partnership for African Development FOR OFFICIAL USE ONLY NPV Net Present Value OMVG Organisation pour la Mise en Valeur du Fleuve Gambie/(The Gambia River Basin Development Authority) oms Organisation pour la Mise en Valeur du Fleuve SCnCgall(The Senegal River Basin Development Authority) OPGW Composite Ground Wire with Optical Fiber PIC Project Implementation Committee PIM Project Implementation Manual PPIAF Public Private Infrastructure Advisory Facility PURC Public Utilities Regulatory Commission RAP Resettlement Action Plan RIAS Regional Integration Assistance Strategy RRDP Regional Regulatory Development Project RVP Regional Vice President SA Spccial Accosnt ._ SAPP South African Power Pool SBD Standard Bidding Documents sc Steering Committee SCADA Supervisory Control and Data Acquisition SICC Secretariat and Information Coordination Center SIL Sector Investment Loan SOE Statement of Expenditure SOPE Sociktk d’Operation Ivoirienne d’Electicitk/(Ivorian State-Owned Assets Management Company TIC0 Takoradi Intemational Company TSO Transmission System Operator TWh Tera Watt-hours USAID United States Agency for International Development VRA Volta River Authority WAGP West Africa Gas Pipeline WAPP West Ahca Power Pool Vice President: Gobind Nankani RegionaVCountry Directors: Mark Tomlinsoflats Karlsson Sector Manager: Yusupha Crookes Task Team Leader: Amarquaye mar Program Assistant: Rita Ahiboh ~~ This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not be otherwise disclosed without World Bank authorization. AFRICA West Africa Power Pool (APL) Program CONTENTS Page A . STRATEGIC CONTEXT AND RATIONALE ................................................................. 4 1. Country and sector issues.................................................................................................... 4 2 . Rationale for Bank involvement ......................................................................................... 6 3 . Higher level objectives to which the program contributes ................................................. 7 B. PROGRAM AND PROJECT DESCRIPTION ................................................................. 7 1. Lending Instrument ............................................................................................................. 7 2 . WAPP APL Program objective and phases ........................................................................ 7 3 . WAPP APL 1 project development objective and key indicators ...................................... 9 4 . Project components (WAPP APL 1) ................................................................................. 10 5 . Lessons leamed and reflected in the project design .......................................................... 12 6 . Alternatives considered and reasons for rejection ............................................................ 13 C . IMPLEMENTATION ........................................................................................................ 13 1. Partnership arrangements.................................................................................................. 13 2. Institutional and implementation arrangements ................................................................ 14 3 . WAPP APL 1 (First Tranche) executing agency .............................................................. 15 4 . Monitoring and evaluation ofoutcomesh-esults ................................................................ 15 ... 5 . Sustainability..................................................................................................................... 15 6. Critical risks and possible controversial aspects ............................................................... 16 7 . Loadcredit conditions and covenants ............................................................................... 17 D. APPRAISAL SUMMARY ................................................................................................. 18 1. Economic and financial analyzes ...................................................................................... 18 2 . Technical ....................... ........A.......................................................................................... 20 3 . Fiduciary ........................................................................................................................... 20 4 . Social................................................................................................................................. 20 5 . Eiivironment...................................................................................................................... 20 6. Safeguard policies ............................................................................................................. 21 7 . Policy Exceptions and Readiness ...................................................................................... 21 Annex 1: Country and Sector or Program Background......................................................... 22 Annex 2: Major Related Projects Financed by the Bank and/or other Agencies ................. 35 Annex 3: Results Framework and Monitoring ........................................................................ 36 Annex 4: Detailed Project Description...................................................................................... 40 Annex 5: Project Costs ............................................................................................................... 43 Annex 6: Implementation Arrangements ................................................................................. 44 Annex 7: Financial Management and Disbursement Arrangements ..................................... 46 Annex 8: Procurement Arrangements...................................................................................... 52 Annex 9: Economic and Financial Analysis ............................................................................. 56 Annex 10: Safeguard Policy Issues ............................................................................................ 72 .. Annex 11: Project Preparation and Supervision ..................................................................... 81 Annex 12: Documents in the Project File ................................................................................. 83 Annex 13: Statement of Loans and Credits .............................................................................. 85 Annex 14: Country at a Glance ................................................................................................. 87 MAP(S) IBRD # 33825133827 WESTERN AFRICA GHANA COMPONENT - FIRST PHASE OF THE USD 100 MILLION COASTAL TRANSMISSION BACKBONE PROJECT OF THE WEST AFRICA POWER POOL (APL) PROGRAM PROJECT APPRAISAL DOCUMENT AFRICA AFTEG Date: June 1,2005 Team Leader: Amarquaye Atmar Country Director: Mark TomlinsonMats Karlsson Sectors: Power (100%) Sector ManagerDirector: Yusupha Crookes Themes: Regional integration (P) Project ID: PO75994 Environmental screening category: Partial Assessment Lending Instrument: Adaptable Program Loan Safeguard screening category: Limited impact [ ] Loan [XI Credit [ ] Grant [ ] Guarantee [ ] Other: