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539530Pad0corrigendum0i Document of The World Bank Group FOR OFFICIAL USE ONLY Report No: 53953-CM Public Disclosure Authorized PROJECT APPRAISAL DOCUMENT ON A PROPOSED IDA GUARANTEE IN THE AMOUNT OF UP TO CFA 40 BILLION (US$82 MILLION EQUIVALENT) AND ON A Public Disclosure Authorized PROPOSED IFC A LOAN IN THE AMOUNT OF UP TO EUR 64 MILLION (US$86 MILLION EQUIVALENT) TO THE KRIBI POWER DEVELOPMENT COMPANY FOR THE KRIBI GAS POWER PROJECT Public Disclosure Authorized IN THE REPUBLIC OF CAMEROON October 17, 2011 Africa Energy Group, World Bank Infrastructure and Natural Resources Department, IFC This document has a restricted distribution and may be used by recipients only in the performance of their Public Disclosure Authorized official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective September 30, 2011) Currency Unit = Central African Franc (CFA) CFA 486 = US$1 SDR 1 = US$1.56 EUR 1 = US$1.35 FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS AER Agence d'Electrification Rurale (Rural ESMP Environmental and Social Management Electrification Agency) Plan AES Private Electricity Concessionaire FMO Nederlandse Financierings-Maatschappij SONEL voor Ontwikkelingslanden N.V. AFD Agence Française de Développement (Netherlands Development Finance (French Development Agency) Company) AfDB African Development Bank GCA Government Commitment Agreement Alucam Compagnie Camerounaise de l'Aluminum GDP Gross Domestic Product (Aluminum Company of Cameroon) GOC Government of Cameroon AMR Annual Monitoring Report GSA Gas Sales Agreement ARSEL Agence de Régulation du Secteur de GWh Gigawatt-hour l'Electricité (Electricity Regulatory HFO Heavy fuel oil Agency) HIPC Heaviliy Indebted Poor Countries BCF Billion standard cubic feet HV High voltage bcm Billion cubic meters IBRD International Bank for Reconstruction and BDEAC Banque de Développement des Etats de Development l'Afrique Centrale (Development Bank of IDA International Development Association Central African States) IFC International Finance Corporation BTU British thermal units IMF International Monetary Fund CAS Country Assistance Strategy IPP Independent power producer CCPP Chad-Cameroon Pipeline Project IUCN International Union for Conservation of CFA Central African Franc Nature CIPP Community and Indigenous Peoples Plan kJ Kilojoules CO2 Carbon dioxide km Kilometer COTCO Cameroon Oil Transport Company KPDC Kribi Power Development Company CPF Central Gas Processing Facility kV Kilovolt DFIs Development Finance Institutions kWh Kilowatt-hour DPDC Dibamba Power Development Company LFO Light fuel oil DSA Debt sustainability analysis LNG Liquefied natural gas EDC Electricity Development Corporation LPG Liquefied petroleum gas EHS Environmental, health, and safety LPHP Lom Pangar Hydropower Project EIA Environmental Impact Assessment LV Low voltage EIB European Investment Bank MDGs Millennium Development Goals EITI Extractive Industries Transparency MDRI Multilateral Debt Relief Initiative Initiative MINEE Ministere de I'Energie et de I'Eau EPC Engineering, Procurement, and (Ministry of Energy and Water) Construction MJ Megajoules ERR Economic rate of return MMBtu Million British thermal units ESDP Energy Sector Development Project MMscf Million standard cubic feet ESIA Environmental and Social Impact MOF Ministry of Finance Assessment Mscf Thousand standard cubic feet MV Medium voltage MW Megawatt PROPARCO Société de Promotion et de Participation NGO Non-governmental organization pour la Coopération économique NOx Nitrogen oxides (Promotion and Investment Company for PANERP Plan d‘action national Energie pour le Economic Cooperation) réduction de la pauvreté (National Energy PS Performance Standard Plan for Poverty Reduction) RAP Resettlement Action Plan PDO Project development objective REA Regional Environmental Assessment PDSE Electricity Sector Development Plan REF Rural Energy Fund PEFA Public expenditure financial accountability RPF Resettlement Policy Framework Perenco Group Perenco S.A. (oil and gas company) SDR Special Drawing Rights PFM Public financial management SIG Southern Interconnected Grid PPA Power Purchase Agreement SMEs Small and medium scale enterprises PPIAF Public Private Infrastructure Advisory SNH Société Nationale des Hydrocarbures Facility (National Hydrocarbons Company) PPP Public-private partnership SOCATRAL Société Camerounaise de Transformation PRECESSE Projet de Renforcement des Capacités de l‘Aluminum (Aluminum Fabrication Environnementales et Sociales du Secteur Company of Cameroon) Energie (Environmental and Social SONARA Société Nationale de Raffinage (National Capacity Building Project for the Energy Refinery Company) Sector) SOx Sulfur oxides Project Kribi Gas Power Project TA Technical assistance TJ Terajoules TSO Transmission system operator World Bank (IDA) Vice President: Obiageli Ezekwesili Country Director: Gregor Binkert Sector Director: Jamal Saghir Sector Manager: Lucio Monari Task Team Leader: Astrid Manroth International Finance Corporation Vice President: Thierry Tanoh Industry Director: Bernard E. Sheahan Regional Director: Yolande B. Duhem Regional Industry Manager: Bertrand de la Borde Global Industry Manager: Morgan Landy Relationship Manager: Alain Ebobisse Country Manager: Henri E. Rabarijohn Investment Officers: Alice Laidlaw, Ijeoma Ikoku, Olivier Nour Noel, Bernadette Tabeko 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. CAMEROON Cameroon - Kribi Gas Power Project CONTENTS Page I. STRATEGIC CONTEXT AND RATIONALE ................................................................. 1 A. Country and sector issues.................................................................................................... 1 B. Rationale for World Bank Group involvement ................................................................. 16 C. Higher level objectives to which the Project contributes .................................................. 18 II. PROJECT DESCRIPTION ............................................................................................... 18 A. Bank Group instruments—IDA Guarantee and IFC Senior Loan .................................... 19 B. Project development objective and key indicators............................................................ 27 C. Project components ........................................................................................................... 27 D. Lessons learned and reflected in the project design .......................................................... 28 E. Alternatives considered and reasons for rejection ............................................................ 29 III. IMPLEMENTATION .................................................................................................... 30 A. Partnership arrangements .................................................................................................. 30 B. Institutional and implementation arrangements ................................................................ 30 C. Monitoring and evaluation of outcomes/results ................................................................ 32 D. Sustainability..................................................................................................................... 32 E. Guarantee conditions and covenants ................................................................................. 38 IV. APPRAISAL SUMMARY ............................................................................................. 39 A. Economic and financial analyses ...................................................................................... 39 B. Technical ........................................................................................................................... 40 C. Fiduciary ........................................................................................................................... 41 D. Social................................................................................................................................. 41 E. Environment ...................................................................................................................... 42 F. Safeguard policies ............................................................................................................. 45 G. Policy Exceptions and Readiness...................................................................................... 46 Annex 1: Country and Sector Background .............................................................................. 48 Annex 2: Major Related Projects Financed by the Bank and/or other Agencies ................. 65 Annex 3: Results Framework and Monitoring ........................................................................ 68 Annex 4: Detailed Project Description ...................................................................................... 71 Annex 5: Project Costs and Financing Plan ............................................................................. 75 Annex 6: Implementation Arrangements ................................................................................. 76 Annex 7: Financial Management and Disbursement Arrangements ..................................... 84 Annex 8: Procurement Arrangements .....................................................................................
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