World Bank Document
Total Page:16
File Type:pdf, Size:1020Kb
FOR OFFICIAL USE ONLY Report No: PAD3158 Public Disclosure Authorized INTERNATIONAL DEVELOPMENT ASSOCIATION PROJECT APPRAISAL DOCUMENT ON A PROPOSED CREDIT IN THE AMOUNT OF EURO 18.4 MILLION (US$20.0 MILLION EQUIVALENT) Public Disclosure Authorized AND A PROPOSED GRANT IN THE AMOUNT OF SDR 14.7 MILLION (US$20.0 MILLION EQUIVALENT) TO THE THE UNION OF COMOROS Public Disclosure Authorized FOR THE COMOROS SOLAR ENERGY INTEGRATION PLATFORM June 1, 2020 Energy and Extractives Global Practice Africa Region Public Disclosure Authorized This document is being made publicly available prior to Board consideration. This does not imply a presumed outcome. This document may be updated following Board consideration and the updated document will be made publicly available in accordance with the Bank’s policy on Access to Information. CURRENCY EQUIVALENTS (Exchange Rate Effective April 30, 2020) Currency Unit = Comorian franc (KMF) KMF 450 = US$1 US$1= SDR 0.73185012 US$1= EURO 0.91945568 FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS AfDB African Development Bank CAPEX Capital Expenditure CERC Contingent Emergency Response Component CMS Commercial Management System CPF Country Partnership Framework DA Designated Account DGEME Energy, Mines, and Water Directorate (Direction Générale de l'Energie, des Mines et de l'Eau) DHS Demographic and Health Survey DSOCU Delegated Sector Oversight and Contracting Unit ECOP Environmental Codes of Practice EDA Electricity Utility for Anjouan (Electricité d'Anjouan) EIRR Economic Internal Rate of Return EPC Engineering, Procurement, and Construction ESIA Environmental and Social Impact Assessment ESMAP Energy Sector Management and Assistance Program ESMP Environmental and Social Management Plan ESRP Electricity Sector Recovery Project EU European Union FADES Arab Fund for Economic and Social Development (Fonds Arabe pour le Développement Economique et Social) FM Financial Management GBV Gender-based Violence GDP Gross Domestic Product GHG Greenhouse Gas GoC Government of Comoros GRM Grievance Redress Mechanism GRS Grievance Redress Service HFO Heavy-fuel Oil IFR Interim Financial Report IPF Investment Project Financing IPP Independent Power Producer kWh Kilowatt Hour M&E Monitoring and Evaluation MAMWE Water and Electricity Management of the Comoros (Gestion de l´Eau et l´Electricité aux Comores) MPEEIH Ministry of Production, Environment, Energy, Industry and Handicrafts MV Medium Voltage MW Megawatt MWp Megawatt Peak O&M Operations and Maintenance PCE Comoros Emerging Plan (Plan Comores Emergent) PDO Project Development Objectives PEFA Public Expenditure and Financial Accountability PFM Public Financial Management PIM Project Implementation Manual PIU Project Implementation Unit PPA Project Preparation Advance PPSD Project Procurement Strategy for Development PV Photovoltaic RAP Resettlement Action Plan SCD Systematic Country Diagnostic SCA2D Comoros Strategy for Growth and Poverty Reduction SDG Sustainable Development Goal SEA Sexual Exploitation Abuse SHEE Systematic Household Energy Efficiency SIDS Small Island Developing States SONEDE Société Nationale d'Exploitation et de Distribution d'Eau (National Water Exploitation and Distribution Company) SONELEC Société Nationale de l'Electricité des Comores (National Comorian Electricity Company) STEP Systematic Tracking of Exchanges in Procurement ToR Terms of Reference Regional Vice President: Hafez Ghanem Country Director: Mark R. Lundell Global and Regional Practice Director: Riccardo Puliti Practice Manager: Sudeshna Ghosh Banerjee Task Team Leaders: Jan Friedrich Kappen, David Loew TABLE OF CONTENTS DATASHEET............................................................................................................................. 2 I. STRATEGIC CONTEXT........................................................................................................ 7 A. Country Context.............................................................................................................. 7 B. Sectoral and Institutional Context ...................................................................................... 8 C. Relevance to Higher Level Objectives ................................................................................14 II. PROJECT DESCRIPTION ....................................................................................................15 A. Project Development Objective ........................................................................................15 B. Project Components .......................................................................................................15 C. Project Beneficiaries .......................................................................................................21 D. Results Chain.................................................................................................................22 E. Rationale for World Bank Involvement and Role of Partners .................................................22 F. Lessons Learned and Reflected in the Project Design ...........................................................23 III. IMPLEMENTATION ARRANGEMENTS ..............................................................................24 A. Institutional and Implementation Arrangements.................................................................24 B. Results Monitoring and Evaluation Arrangements ...............................................................26 C. Sustainability .................................................................................................................26 IV. PROJECT APPRAISAL SUMMARY .....................................................................................26 A. Technical, Economic and Financial Analysis ........................................................................26 B. Fiduciary .......................................................................................................................29 C. Safeguards ....................................................................................................................31 V. KEY RISKS........................................................................................................................36 VI. RESULTS FRAMEWORK AND MONITORING .......................................................................39 ANNEX 1: Implementation Arrangements and Support Plan ..................................................44 ANNEX 2: Gender Gap Analysis and Action Plan .....................................................................50 ANNEX 3: Map of the Union of the Comoros ..........................................................................54 Page 1 of 54 DATASHEET BASIC INFORMATION BASIC_INFO_TABLE Country(ies) Project Name Comoros Comoros Solar Energy Integration Platform Project ID Financing Instrument Environmental Assessment Category Investment Project P162783 B-Partial Assessment Financing Financing & Implementation Modalities [ ] Multiphase Programmatic Approach (MPA) [✓] Contingent Emergency Response Component (CERC) [ ] Series of Projects (SOP) [✓] Fragile State(s) [ ] Performance-Based Conditions (PBCs) [✓] Small State(s) [ ] Financial Intermediaries (FI) [ ] Fragile within a non-fragile Country [ ] Project-Based Guarantee [ ] Conflict [ ] Deferred Drawdown [ ] Responding to Natural or Man-made Disaster [ ] Alternate Procurement Arrangements (APA) Expected Approval Date Expected Closing Date 22-Jun-2020 30-Jun-2025 Bank/IFC Collaboration No Proposed Development Objective(s) Improve the commercial performance of the electric utility and its capacity to dispatch variable renewable energy. Components Component Name Cost (US$, millions) Component 1: Investments in Power Storage, Pilot PV and System Upgrades 28.60 Page 2 of 54 The World Bank Comoros Solar Energy Integration Platform (P162783) Component 2: SONELEC Commercial and Financial Recovery 6.00 Component 3: Technical Assistance, Project Implementation, and Capacity Building 8.00 Activities Component 4: Contingent Emergency Response Component 0.00 Organizations Borrower: Government of the Union of Comoros Implementing Agency: Ministry of Production, Environment, Energy, Industry and Handicrafts PROJECT FINANCING DATA (US$, Millions) SUMMARY-NewFin1 Total Project Cost 42.60 Total Financing 42.60 of which IBRD/IDA 40.00 Financing Gap 0.00 DETAILS -NewFinEnh1 World Bank Group Financing International Development Association (IDA) 40.00 IDA Credit 20.00 IDA Grant 20.00 Non-World Bank Group Financing Trust Funds 2.60 Support for Small Island Developing States (SIDS) DOCK Suppo 2.60 IDA Resources (in US$, Millions) Credit Amount Grant Amount Guarantee Amount Total Amount Comoros 20.00 20.00 0.00 40.00 National PBA 20.00 20.00 0.00 40.00 Page 3 of 54 The World Bank Comoros Solar Energy Integration Platform (P162783) Total 20.00 20.00 0.00 40.00 Expected Disbursements (in US$, Millions) WB Fiscal Year 2020 2021 2022 2023 2024 2025 Annual 0.05 2.19 3.55 6.40 14.03 13.78 Cumulative 0.05 2.24 5.79 12.19 26.22 40.00 INSTITUTIONAL DATA Practice Area (Lead) Contributing Practice Areas Energy & Extractives Climate Change and Disaster Screening This operation has been screened for short and long-term climate change and disaster risks SYSTEMATIC OPERATIONS RISK-RATING TOOL (SORT) Risk Category Rating 1. Political and Governance ⚫ Substantial 2. Macroeconomic ⚫ Substantial 3. Sector Strategies and Policies ⚫ Moderate 4. Technical Design of Project or Program ⚫ Substantial 5. Institutional Capacity