The World Bank Implementation Status & Results Report Electricity Sector Efficiency and Supply Reliability Program (P171296) Electricity Sector Efficiency and Supply Reliability Program (P171296) MIDDLE EAST AND NORTH AFRICA | Jordan | Energy & Extractives Global Practice | Requesting Unit: MNC02 | Responsible Unit: IMNE1 IBRD/IDA | Program-for-Results Financing | FY 2023 | Team Leader(s): Artur Kochnakyan, Mohamed Zakaria Kamh, Vincent Francois Jean Launay Seq No: 2 | ARCHIVED on 28-Apr-2024 | ISR58943 | Created by: Mohamed Zakaria Kamh on 23-Nov-2023 | Modified by: Mohamed Zakaria Kamh on 22-Apr-2024 Program Development Objectives PDO Table Program Development Objective (from Program Appraisal Document) The Program development objectives are to improve efficiency of the electricity sector, maintain the supply of transmission grid-connected renewable energy and the reliability of electricity service, and strengthen NEPCO’s governance. Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Implementation Status and Key Decisions The Program-for-Results (PforR) operation became effective on August 11, 2023. The Program is supporting several key activities from the Government Program for Electricity Sector Efficiency, Supply Reliability, and Financial Sustainability (2023-2030). The PforR operation, supported by the World Bank, is focused on critical measures to: (a) help the sector improve the efficiency through cost saving and additional revenue measures; (b) maintain reliable supply of electricity; (c) improve the National Electric Power Company’s (NEPCO’s) governance; and (d) strengthen the management of fiscal risks from new public-private partnership projects in the electricity sector. The ratings towards the achievement of the Program Development Objectives and Program Implementation are Satisfactory, given that all responsible agencies (NEPCO, Energy and Minerals Regulatory Commission , Ministry of Finance) achieved and verified/on track to validate the achievement of Disbursement Linked Result (DLR) targets for December 31, 2023 (except for DLR 7.1, which was postponed to June 30, 2024 at the government’s request). All the other DLRs whose targets were due by December 31, 2023 have been verified. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P171296 IBRD-95100 Effective USD 250.00 250.00 0.00 125.13 124.88 50% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P171296 IBRD-95100 Effective 31-Mar-2023 17-Apr-2023 11-Aug-2023 31-Aug-2026 31-Aug-2026 4/28/2024 Page 1 of 13 The World Bank Implementation Status & Results Report Electricity Sector Efficiency and Supply Reliability Program (P171296) DLI Disbursement Achievement Disbursed amount in Disbursement % for DLI ID DLI Type Description Coc DLI Amount Status Coc DLI Loan: IBRD95100-001 DLI 1.1-NEPCO achieves 1.1 Regular USD 21,000,000.00 Fully Achieved 21,000,000.00 100 % cost saving 30m J DLI 1.2-NEPCO achieves 1.2 Regular USD 19,000,000.00 Not Achieved 0.00 cost saving 65m J DLI 1.3-NEPCO achieves 1.3 Regular USD 18,000,000.00 Not Achieved 0.00 cost saving 85m J DLI 1.4-NEPCO achieves 1.4 Regular USD 18,000,000.00 Not Achieved 0.00 cost saving 55m J DLI 2.1-NEPCO received 2.1 Regular USD 7,000,000.00 Fully Achieved 7,000,000.00 100 % 1160GWh DLI 2.2-NEPCO received 2.2 Regular USD 7,000,000.00 Not Achieved 0.00 1370GWh DLI 2.3-NEPCO received 2.3 Regular USD 6,000,000.00 Not Achieved 0.00 1160GWh DLI 2.4-NEPCO received 2.4 Regular USD 5,000,000.00 Not Achieved 0.00 2530GWh DLI 2.5-NEPCO received 2.5 Regular USD 5,000,000.00 Not Achieved 0.00 1370GWh DLI 3.1-FY23 Domestic 3.1 Regular USD 11,000,000.00 Fully Achieved 11,000,000.00 100 % Network SAIFI 0.5 DLI 3.2-FY24 Domestic 3.2 Regular USD 10,000,000.00 Not Achieved 0.00 Network SAIFI 0.5 DLI 3.3-FY25 Domestic 3.3 Regular USD 9,000,000.00 Not Achieved 0.00 Network SAIFI 0.5 DLI 4.1-FY23 NEPCO 4.1 Regular USD 12,000,000.00 Fully Achieved 12,000,000.00 100 % DISCLOSES FY22 Financ DLI 4.2-By JUNE 30 2024 4.2 Regular USD 12,000,000.00 Not Achieved 0.00 GOJ maintain NEP DLI 4.3-By DEC 31 2024 4.3 Regular USD 11,000,000.00 Not Achieved 0.00 NEPCO CONTINUES DLI 4.4-By DEC 31 2025 4.4 Regular USD 11,000,000.00 Not Achieved 0.00 NEPCO CONTINUES DLI 4.5-By JUNE 30 2026 4.5 Regular USD 4,000,000.00 Not Achieved 0.00 EMRC reviews DLI 5.1-By DEC 31 2024 5.1 Regular USD 10,000,000.00 Not Achieved 0.00 AGG 10% DLI 5.2-By DEC 31 2025 5.2 Regular USD 10,000,000.00 Not Achieved 0.00 AGG 20% DLI 6.1-By DEC 31 2023 6.1 Regular USD 8,000,000.00 Fully Achieved 8,000,000.00 100 % MOF transfers Bud 4/28/2024 Page 2 of 13 The World Bank Implementation Status & Results Report Electricity Sector Efficiency and Supply Reliability Program (P171296) DLI 6.2-By DEC 31 2024 6.2 Regular USD 7,000,000.00 Not Achieved 0.00 MOF transfers Bud DLI 6.3-By DEC 31 2025 6.3 Regular USD 5,000,000.00 Not Achieved 0.00 MOF transfers Bud DLI 7.1-FY23 NEW 7.1 Regular TRANSMISSIONS USD 3,000,000.00 Not Achieved 0.00 CONNECTED DLI 7.2-JAN to JUNE 24 7.2 Regular USD 3,000,000.00 Not Achieved 0.00 NEW TRANSMISSIONS DLI 7.3-JULY DEC 24 7.3 Regular USD 3,000,000.00 Not Achieved 0.00 NEW TRANSMISSIONS DLI 7.4-FY25 NEW 7.4 Regular USD 3,000,000.00 Not Achieved 0.00 TRANSMISSIONS DLI 7.5-JAN JUN 26 NEW 7.5 Regular USD 3,000,000.00 Not Achieved 0.00 TRANSMISSIONS DLI 8.1-BY DEC 31 2023 8.1 Regular USD 3,000,000.00 Fully Achieved 3,000,000.00 100 % TCFC WITH SUPPORT DLI 8.2-BY DEC 31 2024 8.2 Regular USD 3,000,000.00 Not Achieved 0.00 TCFC WITH SUPPORT DLI 8.3-BY DEC 31 2025 8.3 Regular USD 2,375,000.00 Not Achieved 0.00 TCFC WITH SUPPORT Program Action Plan EMRC increases NEPCO’s bulk supply tariff to allow for additional revenues due to reduction of loss and O&M Action Description allowance for distribution companies Source DLI# Responsibility Timing Timing Value Status Technical EMRC Recurrent Yearly In Progress Completion Measurement EMRC Decision on revised bulk supply tariff for NEPCO Comments Action completed for 2023. The next ISR will report on progress for 2024. Action Description Develop Standard Operating Procedures consistent with GRM Design principles as per ESSA Section 6 Source DLI# Responsibility Timing Timing Value Status Environmental and Social Within 6 months of the NEPCO Other Delayed Systems Program effectiveness GRM Procedures effective. Thereafter report to the Bank on grievances as per procedure Completion Measurement The draft GRM SOPs is currently being finalized, with target date end of April 2024. This GRM SOP is developed by Comments NEPCO's consultant (WSP) and shall cover the entire grievance mechanism/ system including the complaints' forms. 4/28/2024 Page 3 of 13 The World Bank Implementation Status & Results Report Electricity Sector Efficiency and Supply Reliability Program (P171296) Identify roles, responsibilities and authorities for EHS management at central and regional levels of NEPCO, covering Action Description construction, contractor management, and operations. Prepare org chart clearly presenting such EHS roles and responsibilities. Source DLI# Responsibility Timing Timing Value Status Environmental and Social Within 6 months of the NEPCO Other Delayed Systems Program effectiveness Completion Measurement Organizational chart effective Ongoing, with potential delay till December 2024. The action will be met once the Environmental Health and Safety Comments Standard Operating Procedures (SOPs)are developed by NEPCO's consultant and approved by NEPCO management. Action Description EMRC approves the fixed charge for RE based self-generators Source DLI# Responsibility Timing Timing Value Status 1st quarter of 2023, Technical EMRC Other In Progress 2024 and 2025 EMRC Decision on new distribution tariff reflective of reduced loss and O&M expenditure allowance is approved with Completion Measurement loss and O&M allowance targets as per the Government Program Comments Completed for 2023. The next ISR will report on progress related to this action for 2024. EMRC issues the letter on monthly basis to Attarat Project Company requesting to transfer the mining royalty to Action Description NEPCO Source DLI# Responsibility Timing Timing Value Status Technical EMRC Recurrent Monthly In Progress Completion Measurement The letter is issued each month and evidence is provided to the Bank to confirm. Comments On track. The letter is issued each month and evidence is provided to the Bank to confirm. Action Description NEPCO’s annual audited financial statements are issued Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems NEPCO Recurrent Yearly In Progress Completion Measurement NEPCO audited financial statement NEPCO is currently working with its Auditor to review its financial statements. NEPCO publishes its audited financial Comments statements and letter to management on its website each year. Action Description New Internal controls framework will be adopted by NEPCO that is consistent with best practices Source DLI# Responsibility Timing Timing Value Status 4/28/2024 Page 4 of 13 The World Bank Implementation Status & Results Report Electricity Sector Efficiency and Supply Reliability Program (P171296) Fiduciary Systems NEPCO Due Date 28-Dec-2023 In Progress Completion Measurement Report on internal controls framework IA assessment of the Internal Controls framework for Finance, Administrative Affairs, and Stores was completed. Comments NEPCO is requested to develop and implement a time-bound plan for the recommendations to strengthen internal controls. New internal audit methodologies based on risk, new internal audit charter, new internal audit manual, and new Action Description guidance notes on internal audit documentation and testing will be developed and operationalized by NEPCO Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems NEPCO Due Date 31-Dec-2024 Completed Completion Measurement To be verified by IVA for DLI 4 on governance NEPCO has provided the mission with results of the assessment of the Internal Controls framework for three of its Comments departments, namely Finance, Administrative Affairs, and Stores, which the Internal Audit Department completed. Complaints records are to be uploaded and published through JONEPS platform, otherwise, agencies to keep a log Action Description of cases and their resolution and adopt publication on individual websites Source DLI# Responsibility Timing Timing Value Status Fiduciary Systems NEPCO Recurrent Yearly In Progress Completion Measurement Annual review of complaints records Completed for 2023. Two procurement “objections” (1st instance) were raised by bidders. One of the complaints was Comments resolved to the advantage of the bidder and the second to the advantage of NEPCO. A complaint log is maintained. Enhance, extend, and revise existing EHS management system to cover planning, construction and operation phase, Action Description and to be aligned with international standards, ISO 14001 and ISO 45001, national legislation and good international industry practice. Source DLI# Responsibility Timing Timing Value Status Environmental and Social NEPCO Due Date 30-Jun-2024 In Progress Systems Gap analysis of current ESMS to international standards, GIIP, and ISO 14001 and 45001; ESMS Manual prepared Completion Measurement and rolled out; revised template of incidents and accidents reporting to include near-miss, and root cause analysis. On track, with potential delay till December 2024.The Gap analysis has already been shared with the World Bank in Comments October 2023. However, ESMS and revised templates for incidents will be completed as part of the IMS. Strengthen ESHS capacity through: recruiting community liaison officers; increasing number of accredited HSE Action Description officers; developing a partnership with relevant biodiversity and community development organizations; and providing ESMS induction training. 4/28/2024 Page 5 of 13 The World Bank Implementation Status & Results Report Electricity Sector Efficiency and Supply Reliability Program (P171296) Source DLI# Responsibility Timing Timing Value Status Environmental and Social Within 12 months of NEPCO Other In Progress Systems program effectiveness Assign/recruit 2-4 qualified community liaison officers; sign biodiversity and community development MOU; increase no. of accredited HSE officers; develop ESMS induction program for all NEPCO staff; provide technical training on Completion Measurement ESMS for EHS dept. On track.The Head of the Public Safety Section has been assigned as the main CLO at the central level and 4 site Comments managers have been assigned as local CLOs within their locations (NEPCO to provide the letter of assigning the four CLOs to the Bank). Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Substantial Substantial Macroeconomic Substantial Substantial Substantial Sector Strategies and Policies Substantial Substantial Substantial Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and Substantial Substantial Substantial Sustainability Fiduciary Substantial Substantial Substantial Environment and Social Moderate Moderate Moderate Stakeholders Moderate Moderate Moderate Other -- -- -- Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes Electricity Sector Efficiency IN01372040 ►Total cost savings and additional revenues of NEPCO (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target This Indicator is In 2023.,NEPCO has measured annually. The achieved 43 M JOD as Value JOD 0 JOD 55 million team will report on it increased revenue from during the next ISR this measure 4/28/2024 Page 6 of 13 The World Bank Implementation Status & Results Report Electricity Sector Efficiency and Supply Reliability Program (P171296) Date 31-Jan-2023 19-Jun-2023 31-Dec-2023 30-Jun-2026 This indicator will measure the progress towards achievement of targets under cost saving and revenue Comments measures of the Program. Electricity Supply Adequacy and Reliability IN01372071 ►Share of renewable energy in the electricity supply mix (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target In 2023, NEPCO This indicator is received more than measured annually. The Value At least 26% 3000 GWh of At least 26% team will report on it Renewable energy from during the upcoming ISR the IPPs Date 31-Dec-2021 19-Jun-2023 31-Dec-2023 31-Dec-2025 This indicator will measure the progress towards maintaining the share of RE in the total electricity supply Comments mix. IN01372073 ►Number of electricity service interruptions per customer (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target This indicator is measured annually. The In 2023, SAIFI was Value 0.34 Not exceeding 0.5 team will report on it 0.2346 during upcoming ISR Date 31-Dec-2022 21-Jun-2023 31-Dec-2023 30-Jun-2026 This indicator measures the progress towards maintaining the reliability of the domestic electricity Comments transmission network exclusive of events leading to tripping on Jordan-Egypt transmission line. Electricity Sector Governance IN01372072 ►Improvement of NEPCO's corporate governance (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target By December 31, 2023, (a) NEPCO continues (a) NEPCO disclosed to implement the separated 2022 annual adopted 3-year financial accounts for financing plan for its each of its four (4) operations; (b) the business units; (b) the Government as Board of NEPCO shareholder maintains approved a 3-year the Board of NEPCO NEPCO has been partially financing plan for its with strengthened This indicator is implementing the operations and composition, role, and measured annually. The Value elements of newly- thereafter NEPCO responsibilities in team will report on it introduced corporate implements it; (c) the accordance with the during upcoming ISR governance structure GOJ as shareholder Charter of NEPCO; (c) maintained the Board of the Risk and Audit NEPCO with Committee maintains strengthened its composition and composition, role, and role and continues responsibilities in implementing its accordance with the responsibilities Charter of NEPCO; and consistent with the (d) the Board of NEPCO Board of NEPCO 4/28/2024 Page 7 of 13 The World Bank Implementation Status & Results Report Electricity Sector Efficiency and Supply Reliability Program (P171296) reviewed, approved and Resolution No. 87, monitored the dated October 4, 2020; implementation of (d) the Strategy and NEPCO's strategy, Risk Management budget, and risk profile Function continues to with defined financial be implemented in and non-financial KPIs. accordance with the Board of NEPCO Resolution No. 50, dated August 22, 2021; and (e) the Board of NEPCO continues reviewing, approving and monitoring implementation of NEPCO's strategy, budget, and risk profile with defined financial and non-financial KPIs. Date 31-Dec-2022 19-Jun-2023 31-Dec-2023 31-Dec-2024 Comments Adoption of corporate governance performance measures. Intermediate Results Indicators by Results Areas Electricity Sector Efficiency IN01372074 ►EMRC makes appropriate regulatory changes to implement adjustments to electricity loss and O&M expenditure allowances for distribution companies (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 31-Jan-2023 19-Jun-2023 14-Mar-2024 30-Apr-2023 This indicator measures the progress towards tariff adjustment to reflect revised level of electricity loss Comments allowance and O&M expenditures. IN01372077 ►EMRC issues the circular on network use charge for self-generators of renewable energy (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 31-Jan-2023 19-Jun-2023 14-Mar-2024 30-Jun-2023 This indicator measures the progress towards adoptions of new regulatory charge for renewable energy self Comments generators. IN01372080 ►Replacement of FSRU with FSU and construction of onshore regasification unit are completed (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 31-Jan-2023 19-Jun-2023 14-Mar-2024 31-May-2026 4/28/2024 Page 8 of 13 The World Bank Implementation Status & Results Report Electricity Sector Efficiency and Supply Reliability Program (P171296) Comments This indicator measures the progress towards LNG import infrastructure optimization. IN01372081 ►NEPCO receives Attarat Project's mining royalty payments (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target NEPCO received 15 M NEPCO received royalty NEPCO receives NEPCO does not receive JOD in royalty payments due from royalty payments due Value royalty payments due by payments from Attarat Attarat Project till April from Attarat Project Attarat Project Project till December 2023 each month 2023 Date 31-Jan-2023 19-Jun-2023 14-Mar-2024 30-Jun-2026 This indicator measures whether NEPCO receives from Attarat Project the royalty payments due each Comments month. Electricity Supply Adequacy and Reliability IN01372075 ►Maintaining adequate supply of transmission network connected renewables in the electricity supply mix (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target In 2023, as per the final accepted invoices from This Indicator is the IPPs, NEPCO At least 2,530 GWh per measured annually. The At least 2,530 GWh Value procured 3525.51 GWh year Team will report on it per year (since January 1, 2023) during next ISR of wind and solar power. Date 31-Jan-2023 19-Jun-2023 14-Mar-2024 31-Aug-2026 Comments This indicator measures progress towards the share of RE in the electricity supply mix. IN01372078 ►NEPCO implements at least 90 percent of its annual maintenance program (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value Yes Yes Yes Yes Date 31-Jan-2023 19-Jun-2023 14-Mar-2024 31-Dec-2025 This indicator measures progress made by NEPCO each year in implementing its annual maintenance Comments program. Electricity Sector Governance IN01372076 ►New investments in transmission-connected electricity generation and storage are economically justified, financially efficient, and climate responsive (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target This action is postponed New transmission- New transmission- to June 30, 2024 as per connected generation connected generation GoJ request to the and storage NEPCO will share a draft investments are not Bank, to accommodate investments are: (a) Value 2023 masterplan with always economically additional essential consistent with IVA by Sept 2023 justified and financially scenarios to be NEPCO's Generation efficient modeled, driven by the Master Plan, exclusive ongoing regional conflict of fully grant-financed 4/28/2024 Page 9 of 13 The World Bank Implementation Status & Results Report Electricity Sector Efficiency and Supply Reliability Program (P171296) that impacts Jordan projects, which takes economic growth. into account the target of at least 31% of renewable energy in the electricity supply mix by 2030, including transmission and distribution-connected generation; and (b) competitively procured consistent with the Public Procurement By-Law and PPP Legislation. Date 31-Jan-2023 19-Jun-2023 14-Mar-2024 31-Dec-2025 This indicator will measure towards reliance on principles of least economic cost planning when selecting Comments new generation and storage projects and use of competitive procurement processes for their construction. IN01372079 ►Improvement of NEPCO's corporate governance (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target By December 31, 2023, (a) the Government, (a) NEPCO disclosed as shareholder, separated 2022 annual maintains the Board of financial accounts for NEPCO with each of its four (4) strengthened business units; (b) the composition, role, and Board of NEPCO responsibilities in approved a 3-year accordance with the financing plan for its Charter of NEPCO; (b) operations and the Risk and Audit thereafter NEPCO Committee maintains implements it; (c) the NEPCO has been partially its composition and This Indicator is work in GOJ as shareholder implementing the role and continues progress. The Bank team maintained the Board of Value elements of newly- implementing its will report on it during the NEPCO with introduced corporate responsibilities next ISR strengthened governance structure consistent with the composition, role, and Board of NEPCO responsibilities in Resolution No. 87, accordance with the dated October 4, 2020; Charter of NEPCO; and and (c) the Strategy (d) the Board of NEPCO and Risk Management reviewed, approved and Function continues to monitored the be implemented in implementation of accordance with the NEPCO's strategy, Board of NEPCO budget, and risk profile Resolution No. 50, with defined financial dated August 22, 2021 and non-financial KPIs. Date 31-Jan-2023 19-Jun-2023 14-Mar-2024 30-Jun-2024 This indicator will measure the progress with implementation of elements of good corporate governance by Comments NEPCO. Disbursement Linked Indicators DLI_IND_TABLE ►DLI 1 Achievement of cost saving and additional revenue targets (Outcome, 76,000,000.00, 0%) 4/28/2024 Page 10 of 13 The World Bank Implementation Status & Results Report Electricity Sector Efficiency and Supply Reliability Program (P171296) Baseline Actual (Previous) Actual (Current) 2026 S1 DLR #1.4: From DLR is met. In 2023, January 1, 2026 to NEPCO realized 43 M June 30, 2026, This DLI is measured JOD as additional revenue NEPCO achieves a annually. The team will due to the implemented total cost savings Value JOD 0. report on it during cost saving and revenue and additional upcoming ISR enhancement measures. revenues in the This exceeds the set amount of JOD target of 30 M JOD. 55,000,000 equivalent in JOD. Date -- 19-Jun-2023 31-Dec-2023 -- Comments ►DLI 2 Maintaining adequate supply of renewables in the electricity supply mix (Output, 30,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) 2026 S1 DLR is achieved. In 2023, DLR #2.5: From as per final accepted NEPCO received 1,370 January 1, 2026 to invoices submitted by the GWh and 1,160 GWh of June 30, 2026, The team will report on IPPs, NEPCO received electricity from solar PV NEPCO received at Value this DLI in the upcoming total procured GWh (since and wind projects in first least 1,370 GWh of ISR January 1, 2023) of and second semesters of electricity from solar 3525.51 GWh, which 2022 respectively. and wind power exceeds the DLR’s target plants of 1160 GWh Date -- 19-Jun-2023 31-Dec-2023 -- Comments ►DLI 3 Maintaining reliability of electricity supply (Outcome, 30,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) 2026 S1 This DLI is measured This DLR is achieved. In Domestic network-wide annually. The team will 2023, EMRC indicated Value - SAIFI was 0.34 in 2022. report on it during that System SAIFI was upcoming ISR 0.2346 Date -- 19-Jun-2023 31-Dec-2023 -- Comments ►DLI 4 Improvement of NEPCO's corporate governance (Outcome, 50,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) 2026 S1 Value NEPCO has been partially This first reporting of this This DLI is achieved. By DLR #4.5: By June implementing the elements DLI is Dec 2023. The December 31, 2023, (a) 30, 2026, EMRC of newly-introduced Bank team will report NEPCO disclosed reviews the current corporate governance during upcoming ISR separated 2022 annual electricity market structure. financial accounts for each structure in of its four (4) business accordance with the 4/28/2024 Page 11 of 13 The World Bank Implementation Status & Results Report Electricity Sector Efficiency and Supply Reliability Program (P171296) units; (b) the Board of General Electricity NEPCO approved a 3- Law and issues a year financing plan for its recommendation to operations and thereafter the Government on NEPCO implements it; (c) the need for the GOJ as shareholder electricity sector maintained the Board of reforms, if any. NEPCO with strengthened composition, role, and responsibilities in accordance with the Charter of NEPCO; and (d) the Board of NEPCO reviewed, approved and monitored implementation of NEPCO's strategy, budget, and risk profile with defined financial and non-financial KPIs Date -- 19-Jun-2023 31-Dec-2023 -- Comments ►DLI 5 Reduction of MOF Advance and MOPIC Loans to NEPCO (Output, 20,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) 2026 S1 The outstanding balance of MOF advance to NEPCO This first reporting of this This first reporting of this and the outstanding DLI is Dec 2024. The DLI is Dec 2024. The Value - balance of MOPIC loans to Bank team will report Bank team will report NEPCO were not converted during upcoming ISR during upcoming ISR into NEPCO's equity. Date -- 19-Jun-2023 19-Jun-2023 -- Comments ►DLI 6 Improvement of payment discipline by the Government Budget Financed Entities (Output, 20,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) 2026 S1 The Government budget financed entities do not fully This first reporting of this settle their electricity bills DLI is Dec 2023. The Value This DLR is achieved. - within financing allocated Bank team will report as per General Budget during upcoming ISR Law. Date -- 19-Jun-2023 31-Dec-2023 -- Comments ►DLI 7 New investments in transmission-connected electricity generation and storage are economically justified, financially efficient, and climate responsive (Output, 15,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) 2026 S1 4/28/2024 Page 12 of 13 The World Bank Implementation Status & Results Report Electricity Sector Efficiency and Supply Reliability Program (P171296) DLR #7.5: From January 1, 2026 to June 30, 2026, new transmission- connected generation and storage investments continue to be: (a) consistent with NEPCO's Generation Master Plan exclusive of New transmission- fully grant-financed NEPCO's 2023 connected generation projects, which Masterplan will be ready This DLR is postponed to investments are not always takes into account Value by Sept 2023 and will June 2024 at the economically justified, the target of at least then be shared with teh Government's request financially efficient, and 31% of renewable IVA climate responsive. energy in the electricity supply mix, including transmission and distribution- connected generation; and (b) competitively procured in accordance with the Public Procurement By-Law and PPP Legislation. Date -- 19-Jun-2023 31-Dec-2023 -- Comments ►DLI 8 Improvement of electricity sector fiscal risk management (Output, 8,375,000.00, 0%) Baseline Actual (Previous) Actual (Current) 2026 S1 This DLR is achieved for TFCF does not carry out December 2023. There annual evaluation of This first reporting of this were not any new PPAs contingent liabilities and DLI is Dec 2023. The executed during 2023 that Value - direct fiscal costs of Bank team will report would require TCFC to electricity sector PPP during upcoming ISR review the associated pipeline. contingent liabilities and fiscal risks. Date -- 19-Jun-2023 31-Dec-2023 -- Comments 4/28/2024 Page 13 of 13