The World Bank Cote d'Ivoire - Electricity Transmission and Access Project (P157055) REPORT NO.: RES57795 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF THE COTE D'IVOIRE - ELECTRICITY TRANSMISSION AND ACCESS PROJECT APPROVED ON MARCH 30, 2017 TO THE REPUBLIC OF COTE D'IVOIRE Energy and Extractives Global Practice Western and Central Africa Region Regional Vice President: Ousmane Diagana Country Director: Marie-Chantal Uwanyiligira Regional Director: Franz R. Drees-Gross Practice Manager: Kwawu Mensan Gaba Task Team Leaders: Arnaud Braud, Tu Chi Nguyen The World Bank Cote d'Ivoire - Electricity Transmission and Access Project (P157055) ABBREVIATIONS AND ACRONYMS CIV Cote d’Ivoire E&S Environmental and Social ETAP Electricity Transmission and Access Project GoCI Government of Côte d’Ivoire IDA International Development Association MW Megawatt PDO Project Development Objective PIU Project Implementation Unit WAEMU West African Economic and Monetary Union WBG World Bank Group The World Bank Cote d'Ivoire - Electricity Transmission and Access Project (P157055) BASIC DATA Product Information Project ID Financing Instrument P157055 Investment Project Financing Original EA Category Current EA Category Partial Assessment (B) Partial Assessment (B) Approval Date Current Closing Date 30-Mar-2017 30-Sep-2023 Organizations Borrower Responsible Agency Republic of Cote d'Ivoire Project Development Objective (PDO) Original PDO The project development objectives are to contribute to the improvement of the efficiency and reliability of electricity supply and increased access to electricity in Cote d'Ivoire. OPS_TABLE_PDO_CURRENTPDO Summary Status of Financing (US$, Millions) Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-59990 30-Mar-2017 21-Apr-2017 14-Jul-2017 30-Sep-2023 285.38 280.08 18.96 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No The World Bank Cote d'Ivoire - Electricity Transmission and Access Project (P157055) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. Country and Sector Context 1. Cote d’Ivoire (CIV) plays a central role in the West African Economic and Monetary Union (WAEMU). In 2022, in the context of the global crisis, the Ivorian economy recorded real GDP growth estimated at 6.7 percent down from 7 percent in 2021. 2. To sustain its position as an economy hub in West Africa, CIV has one of the most developed energy sectors in the region. The current installed capacity is 2,548 Mega Watts (MW) with about 66 percent from gas and 34 percent from hydro. Electricity tariff has been increased1 in July 2023 to cope with the current financial situation. 3. Reaching universal access to electricity is a priority for GoCI. Currently, the grid covers around 83 percent of the localities. Significant investments in the electricity sector have been made to provide the population and businesses with universal access to reliable and affordable electricity services. B. Project status 4. The financing for the Electricity Transmission and Access Project (ETAP; P157055), a US$325 million IDA Credit, was approved on March 30, 2017, with an initial closing date of December 31, 2022. The Project Development Objective (PDO) is to contribute to the improvement of the efficiency and reliability of electricity supply and increased access to electricity in Cote d'Ivoire. 5. On May 17, 2023, The World Bank approved a new extension, setting the new closing date as of September 30, 2023, and cancelling US$40 million, in response to the Government's request. The project is currently rated Satisfactory for progress toward the PDO and Moderately Satisfactory for Implementation Progress. Procurement and financial management are rated Satisfactory while Environmental and Social (E&S) is rated Moderately Satisfactory. There are no overdue audits. 6. The overall progress rate of the project is 90 percent as of September 7, 2023. Work on the transmission component is scheduled to be fully completed before the closing date of the project with exception of the Bia Sud site, where works had to stop for 18 months because of an unplanned and thorough depollution, and final works due to slow contractors or lack of consignation awarded (Grid Solution and TKPE). As per PIU planning, completion dates should not go beyond March 2024. Impact on PDO is minimized since the two other substations have been completely upgraded under the project. Distribution components stands at 98 percent and will be completed by the closing date. Regarding the rural electrification component, due to a late start and technical and financial difficulties with certain contractors, works will not be fully completed by the closing date, especially in Gbokle and San Pedro regions. CI-Energies will support the companies in undertaking as many activities as possible before project closure, and will finalize and finance the works after closure, as agreed with the World Bank. 7. As of September 7, 2023, the total amount disbursed is US$265.97 million out of US$285.38 million equivalent. So far, the undisbursed amount is US$19.41 million equivalent. 1 Ten percent for subscribers with an amperage of 15 or more and 15 percent for medium- and high-voltage consumers. The World Bank Cote d'Ivoire - Electricity Transmission and Access Project (P157055) C. Rationale for Restructuring 8. As discussed with CI-Energies, the additional expected disbursements mainly include (i) the payment of final invoices for the distribution component, (ii) the remaining activities relating to the conversion to 225 kV of the Yopougon 1 and Treichville-Vridi substations, and (iii) remaining invoices for rural electrification. The payment is should not exceed US$5 million. There will, therefore, be an undisbursed balance at closing of approximately US$14 million equivalent. 9. On September 21, 2023, the World Bank received a letter from the Ministry of Economy and Finance to request a cancellation of US$13.73 million (or EUR 12.78 million) for the benefit of other projects in Cote d'Ivoire. II. DESCRIPTION OF PROPOSED CHANGES 10. The restructuring includes (i) cancellation of financing, (ii) change to component cost, (iii) reallocation between disbursement categories and (iv) changes to disbursement estimate. 11. The amount of EUR 12,780,000.00 (US$13.73 million equivalent) will be cancelled under Credit IDA-59990. 12. Following cancellation, the components cost, amounts under the respective categories and disbursement estimate will be revised. The World Bank Cote d'Ivoire - Electricity Transmission and Access Project (P157055) III. SUMMARY OF CHANGES Changed Not Changed Components and Cost ✔ Cancellations Proposed ✔ Reallocation between Disbursement Categories ✔ Disbursement Estimates ✔ Implementing Agency ✔ DDO Status ✔ Project's Development Objectives ✔ Results Framework ✔ Loan Closing Date(s) ✔ Disbursements Arrangements ✔ Overall Risk Rating ✔ Safeguard Policies Triggered ✔ EA category ✔ Legal Covenants ✔ Institutional Arrangements ✔ Financial Management ✔ Procurement ✔ Implementation Schedule ✔ Other Change(s) ✔ Economic and Financial Analysis ✔ Technical Analysis ✔ Social Analysis ✔ Environmental Analysis ✔ IV. DETAILED CHANGE(S) The World Bank Cote d'Ivoire - Electricity Transmission and Access Project (P157055) OPS_DETAILEDCHANGES_COMPONENTS_TABLE COMPONENTS Current Current Proposed Proposed Cost Action Component Name Component Name Cost (US$M) (US$M) Reinforcement of Transmission Reinforcement of Transmission 95.05 Revised 92.04 Systems Systems Rehabilitation, Reinforcement, Rehabilitation, Reinforcement, and Extension of Distribution and Extension of Distribution 73.14 Revised 65.42 Systems in Abidjan and 10 Systems in Abidjan and 10 Regional Capital cities Regional Capital cities Rural Electrification and Rural Electrification and Support 84.16 Revised Support to Electricity for All 81.16 to Electricity for All Program Program Strengthening Institutional Strengthening Institutional Capacity of the Electricity Capacity of the Electricity Sector 14.28 No Change 14.28 Sector and Project and Project Management Management TOTAL 266.63 252.90 OPS_DETAILEDCHANGES_CANCELLATIONS_TABLE CANCELLATIONS Value Reason Current Cancellation New Ln/Cr/Tf Status Currency Date of for Amount Amount Amount Cancellation Cancellation UNDISBURSE IDA-59990- Disburs 266,032,007.0 253,252,007.0 EUR 12,780,000.00 21-Sep-2023 D BALANCE 001 ing 0 0 AT CLOSING OPS_DETAILEDCHANGES_REALLOCATION _TABLE REALLOCATION BETWEEN DISBURSEMENT CATEGORIES Financing % Current Allocation Actuals + Committed Proposed Allocation (Type Total) Current Proposed IDA-59990-001 | Currency: EUR Current Expenditure Category: GD,WK,NCS,CS,OC,TNG for Components 1, 2, 3.1, iLap Category Sequence No: 1 4 222,360,257.00 204,305,478.82 209,580,257.00 100.00 100.00 The World Bank Cote d'Ivoire - Electricity Transmission and Access Project (P157055) iLap Category Sequence No: 2 Current Expenditure Category: GD,WK,NCS,CS,OC,TNG for Component 3.2 42,916,000.00 42,329,806.19 42,916,000.00 100.00 100.00 iLap Category Sequence No: FEF Current Expenditure Category: FRONT END FEE 755,750.00 755,750.00 755,750.00 Total 266,032,007.00 247,391,035.01 253,252,007.00 OPS_DETAILEDCHANGES_DISBURSEMENT_TABLE DISBURSEMENT ESTIMATES Change in Disbursement Estimates Yes Year Current Proposed 2017 0.00 9,227,345.99 2018 13,345,592.62 11,052,665.20 2019 55,590,144.24 63,818,564.09 2020 64,928,765.50 78,902,404.95 2021 67,629,312.20 43,479,082.40 2022 31,900,000.00 26,263,937.03 2023 55,600,000.00 41,880,000.00 .