The World Bank Report No: ISR11224

Implementation Status & Results Investment Support Project (P116410)

Operation Name: Eskom Investment Support Project (P116410) Project Stage: Implementation Seq.No: 6 Status: ARCHIVED Archive Date: 25-Oct-2013 Country: South Africa Approval FY: 2010

Public Disclosure Authorized Product Line:IBRD/IDA Region: AFRICA Lending Instrument: Specific Investment Loan Implementing Agency(ies): Key Dates Board Approval Date 08-Apr-2010 Original Closing Date 31-Oct-2015 Planned Mid Term Review Date 30-Jun-2014 Last Archived ISR Date 12-Apr-2013 Public Disclosure Copy Effectiveness Date 31-May-2010 Revised Closing Date 31-Oct-2015 Actual Mid Term Review Date

Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective (PDO) of the Eskom Investment Support Project for South Africa is to enhance its power supply and energy security in an efficient and sustainable manner so as to support both economic growth objectives and South Africa's long term carbon mitigation strategy. Has the Project Development Objective been changed since Board Approval of the Project?

Yes No Public Disclosure Authorized Component(s)

Component Name Component Cost Medupi Power Plant 3039.86 Renewable energy (Sere and Concentrating Solar Power Plants). 260.00 Support for low carbon energy efficiency comps., comprising the Majuba Railway for 440.76 transportation & TA prog. for energy e ffici ency

Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Moderately Satisfactory Unsatisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Unsatisfactory Public Disclosure Authorized Overall Risk Rating High High

Implementation Status Overview Summary:

Public Disclosure Copy 1. Project implementation is behind schedule. The commissioning of Medupi and the Concentrating Solar Plant (CSP) are expected in 2017 and mid-2019 respectively. 2. Medupi's first generating unit, Unit 6, is expected to begin production in the second half of 2014, instead of the previous end-2013 date, and the subsequent five units in six-month intervals thereafter.

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3. Construction of the continues as planned with commercial operation expected in early 2015. 4. The implementation of the Majuba Rail component is getting back on track with construction groundbreaking having taken place in early April 2013. 5. Environmental and social safeguard issues are being effectively addressed by South African authorities through the country's legal and regulatory system. One remaining concern is for the timing of the planned retrofit for Flue Gas Desulfurization (FGD) at Medupi. Because of the significant slippage in the commissioning schedule of the Medupi units, the schedule for sequential installation of FGD on the units as agreed with the Bank will also slip. This means installation of FGD on the final units will occur beyond the 2020 time frame set by South African legislation on air emissions. Given the delay in the commissioning of the project and consequently in the installation of the FGD equipment, Eskom has begun the process of seeking postponement of the minimum emission standards for its coal power plants, including Medupi, which are to become effective in 2015 and 2020. As a first step, Eskom issued a Background Information Document for public disclosure on June 5, 2013, so that Interested & Affected Parties may identify themselves and share their views and concerns with Eskom and the regulatory authority.

Locations Country First Administrative Division Location Planned Actual Public Disclosure Copy South Africa Not Entered Volksrust

South Africa Not Entered Upington

South Africa Northern Cape Upington ✔

South Africa Not Entered Tutuka

South Africa Not Entered Majuba

South Africa Not Entered Kendal

South Africa Not Entered

South Africa Not Entered Ermelo

South Africa Mpumalanga Ermelo ✔

South Africa Not Entered Ellisras

South Africa Limpopo Ellisras ✔

South Africa Saldanha ✔

South Africa Not Entered Koekenaap

Not Entered Not Entered Koekenaap ✔

Results

Project Development Objective Indicators Public Disclosure Copy

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Indicator Name Core Unit of Measure Baseline Current End Target Increased reliable power generation Percentage Value 110.60 119.80 125.00 Date 31-Mar-2009 30-Jun-2013 31-Oct-2015 Comments Baseline corrected to ensure FY 2013 data (April 1, 2012- consistency with reporting March 31, 2013). Installed format capacity (MW) as a percentage of peak demand. Increased renewable energy supply Gigawatt-hour Value 11.00 11.00 520.00 (GWh) Date 31-Mar-2009 30-Jun-2013 31-Oct-2015 Comments Public Disclosure Copy Reduction in carbon intensity Text Value 0.968 0.98 0.950 Date 31-Mar-2009 30-Jun-2013 31-Oct-2015 Comments

Intermediate Results Indicators Indicator Name Core Unit of Measure Baseline Current End Target Capacity of conventional generation Megawatt Value 40000.00 41696.00 44800.00 Date 31-Mar-2009 30-Jun-2013 31-Dec-2015 Comments Eskom's installed operational capacity. Generation Capacity of Renewable Energy Megawatt Value 0.00 0.00 200.00 (other than hydropower) constructed Date 31-Mar-2009 30-Jun-2013 31-Dec-2015 Comments Generation Capacity of Renewable Energy Megawatt Value 0.00 0.00 100.00 constructed – Wind Sub Type Date 31-Mar-2009 30-Jun-2013 31-Dec-2015 Breakdown Comments Generation Capacity of Renewable Energy Megawatt Value 0.00 0.00 100.00 constructed-Solar Sub Type Date 31-Mar-2009 30-Jun-2013 31-Dec-2015 Breakdown Comments Direct Greenhouse Gases avoided Text Value 0 0 0.618 MT, $97 Date 31-Mar-2009 30-Jun-2013 31-Oct-2015 Comments Majuba coal transportation cost Text Value 93 N/A 20 Public Disclosure Copy

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Date 31-Mar-2009 30-Jun-2013 31-Oct-2015 Comments Reduction in carbon emissions from coal Metric ton Value 0.00 0.00 40000.00 transportation Date 31-Mar-2009 30-Jun-2013 31-Oct-2015 Comments Guidance for power plant efficiency Text Value No designs available N/A Specifications and bid improvements documents for the first three power stations completed Date 31-Mar-2009 30-Jun-2013 31-Oct-2015 Comments Public Disclosure Copy

Data on Financial Performance (as of 04-Oct-2013)

Financial Agreement(s) Key Dates Project Ln/Cr/Tf Status Approval Date Signing Date Effectiveness Date Original Closing Date Revised Closing Date P116410 IBRD-78620 Effective 08-Apr-2010 16-Apr-2010 31-May-2010 31-Oct-2015 31-Oct-2015

Disbursements (in Millions) Project Ln/Cr/Tf Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P116410 IBRD-78620 Effective USD 3,750.00 3,750.00 0.00 1,342.23 2,407.77 36.00

Disbursement Graph Public Disclosure Copy

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Key Decisions Regarding Implementation Eskom and concerned contractors to take measures to minimize project delays.

Restructuring History There has been no restructuring to date.

Related Projects There are no related projects. Public Disclosure Copy

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