The World Bank Cote d’Ivoire National Electricity Digitalization and Access in lagging regions operation (P176776) Program Information Documents (PID) Appraisal Stage | Date Prepared/Updated: 10-Oct-2022 | Report No: PIDA255969 Sep 28, 2022 Page 1 of 11 The World Bank Cote d’Ivoire National Electricity Digitalization and Access in lagging regions operation (P176776) BASIC INFORMATION OPS_TABLE_BASIC_DATA A. Basic Program Data Country Project ID Program Name Parent Project ID (if any) Cote d'Ivoire P176776 Cote d’Ivoire National Electricity Digitalization and Access in lagging regions operation Region Estimated Appraisal Date Estimated Board Date Practice Area (Lead) WESTERN AND CENTRAL AFRICA 17-Oct-2022 05-Jan-2023 Energy & Extractives Financing Instrument Borrower(s) Implementing Agency Program-for-Results Financing the Republic of Côte CI-Energies d'Ivoire Proposed Program Development Objective(s) The PDOs are to (i) increase access to electricity and (ii) improve quality of electricity service in northern and western Cote d’Ivoire, and (iii) to enhance institutional capacity to support electrification programs in the country. COST & FINANCING SUMMARY (USD Millions) Government program Cost 340.00 Total Operation Cost 250.00 Total Program Cost 240.00 IPF Component 10.00 Total Financing 250.00 Financing Gap 0.00 FINANCING (USD Millions) Total World Bank Group Financing 250.00 World Bank Lending 250.00 Sep 28, 2022 Page 2 of 11 The World Bank Cote d’Ivoire National Electricity Digitalization and Access in lagging regions operation (P176776) Decision The review did authorize the team to appraise and negotiate B. Introduction and Context Country Context 1. Côte d’Ivoire is francophone West Africa’s economic hub and one of the strongest economies in sub- Saharan Africa. A lower middle-income country, with a GDP per capita of US$2,520 in 20211, Côte d’Ivoire has been one of the fastest-growing economies in SSA for almost a decade - with real GDP growth averaging 8.2 percent over 2012–19 (5.7 percent in per capita terms). Economic priorities include accelerating the structural shift towards higher value-added activities and attracting private investment. Energy and digital infrastructure are critical to support private sector growth, maintain quality jobs, and improve productivity and competitiveness. 2. Strong growth has reduced poverty nationally, but some regions in the north2 and west3 are lagging, with lower access to social and infrastructure services contributing to fragility in these regions. Poverty fell from 46.3 percent in 2015 to 39.4 percent in 2020, but mostly in urban areas, while rural poverty rose by 2.4 percent. The northern and western regions are home to 7.1 million people (a quarter of the population), more than two thirds of whom live in rural areas, compared with about half nationwide.4 Also, while barriers for gender equality exist on a national level (the country has a Gender Inequalities index (GII)5 value of 0.538, positioning the country 162 out of 189 in the 2019 index and below the Sub- Saharan average of 0.5476 greatest in these regions.7), gender gaps are highest in the northern and western regions. Cote d’Ivoire’s inclusive growth prospects face additional challenges due to climate change. Cote d’Ivoire has a high vulnerability score and low readiness score the Notre Dame Global Adaptation ranking.8 An increase in the frequency and severity of extreme weather events would take a heavy toll on human lives and welfare 1 International Monetary Fund (IMF) Country Data, Cote d’Ivoire 2 In the context of NEDA, the northern part of Cote d'Ivoire is considered as the following 12 regions: Bafing, Worodougou, Béré, Hambol, Gontougo, Kabadougou, Folon, Bagoue, Poro, Tchologo, Gbeke, and Bounkani. There are 33 regions in the country. 3 In the context of NEDA, western Cote d'Ivoire is considered as 6 regions: Tonkpi, Guemon, Cavally, Nawa, San Pedro, and Goh. 4 https://donnees.banquemondiale.org/indicator/SP.RUR.TOTL.ZS?locations=CI 5 UNDP, 2020. Human Development Report, Cote d’Ivoire. http://hdr.undp.org/sites/default/files/Country-Profiles/CIV.pdf 6 The GII reflects gender-based inequalities in three dimensions – reproductive health, empowerment, and economic activity 7 2022 Organization for Economic Cooperation and Development – OECD 8 Notre Dame Global Adaptation Initiative country index, https://gain.nd.edu/our-work/country-index/ Sep 28, 2022 Page 3 of 11 The World Bank Cote d’Ivoire National Electricity Digitalization and Access in lagging regions operation (P176776) Sectoral and Institutional Context 3. Côte d’Ivoire has one of the most developed power sectors in West Africa and is a major exporter of electricity to the sub-region. Current installed capacity is 2,269 Mega Watts (MW), with a peak demand of 1,645 MW.9 Over the 2021-2030 period, the Government of Cote d’Ivoire (GoCI) expects electricity demand to grow at 8 percent per year, generation to increase from 11,425 GigaWatt hours (GWh) to 24,745 GWh, and losses to decrease from about 18.8 to 11.5 percent. A key player in the West African Power Pool (WAPP), Côte d’Ivoire has been providing affordable energy to its neighbors. However, recent supply shortages have caused energy security issues requiring Cote d’Ivoire to curtail electricity exports. 4. Current plans show renewable energy (RE) generation falling short of targeted levels. The country’s power generation mix is dominated by gas (77 percent) with the rest coming from hydropower (23 percent). A marginal increase in the renewables’ share is expected by 2030 (24 percent renewables, including 20 percent large hydro, 3 percent solar, 1 percent biomass. This is well below the country’s 45 percent target for RE10. 5. Cote d’Ivoire is on track to achieve nationwide grid coverage by the end of 202511, but progress on electricity access has been unequal. Grid coverage is extensive compared with countries in the region, reaching around 80 percent of localities that are home to 95 percent of the population.12 Yet the access rate remains much lower at about 69 percent in 2019 (up from 49 percent in 2000) and with important rural-urban disparities (respectively 42 and 94 percent in 2019). In most localities expanding access is therefore a relatively low hanging fruit, provided that financial barriers such as high upfront connection charges are lowered. 6. CI-Energies estimates total investment needs for the power sector from 2021 to 2030 at US$7.2 billion13, including US$5.1 billion for generation, US$1.0 billion for transmission, US$1.1 billion for distribution and US$133 million for digitalization for remote monitoring and telecontrol of the power grid. Of the total, US$3 billion does not yet have an identified financing source. Energy-digital synergy 7. Digitalization has begun to transform the energy sector in Cote d'Ivoire. Digitalization helps better manage volatilities within power transmission and distribution using communication infrastructure to monitor and control the electric grid in real time and prepares for the integration of renewable sources of energy into the system. At the customer level, the digital connectivity underlying the “Internet of Things� (IoT) has the potential to improve the efficiency of the electric network through the use of sensors, smart meters, etc. To capture such opportunities, CI-Energies has prepared a 2015-2030 Automation and 9 CI-Energies, Rapport d’Activités 2021, pg 31 10 As part of the National Development Commitment (NDC) under the Paris Agreement, GoCI has a target of 42 percent RE (later revised to 45 percent) and 28 percent reduction in carbon emissions by 2030. https://www4.unfccc.int/sites/ndcstaging/PublishedDocuments/C%C3%B4te%20d'Ivoire%20First/INDC_CI_22092015.pdf 11 https://www.gouv.ci/_actualite-article.php?recordID=13000 12 Using the ESMAP/SE4all tracker data. GoCI uses several indicators to measure energy access 13 https://www.cinergies.ci/test/chiffres-cles/ Sep 28, 2022 Page 4 of 11 The World Bank Cote d’Ivoire National Electricity Digitalization and Access in lagging regions operation (P176776) Telecontrol Master Plan. It identifies and prepares investments for the renewal and development of the automation and telecontrol equipment at power plants, dispatch, and control centers.14 PforR Program Scope 8. NEDA is an Operation that blends a PforR (US$240 million) and an IPF (US$10 million) component to support government programs that are critical to achieving the GoCI’s electrification targets, while modernizing the grid to improve service quality. The IPF component will finance technical assistance (TA) activities to enhance the capacity of the implementing agencies and address key sector issues. 9. The GoCI has established several key programs to meet its national electrification, decarbonization and digitalization objectives, while upgrading its grid: (a) The National Rural Electrification Program (Programme National d’Electrification Rurale - PRONER) aims to electrify all localities by 2025. (b) The Electricity for All Program (Programme Electricité Pour Tous – PEPT) aims to increase grid access by financing upfront connection charges with payment plans, prioritizing poor households living under the grid in rural localities. PEPT is included in the PforR Program with an estimated funding of US$58 million. (c) The National Program for Grid Extension (Programme National d’Extension de Réseaux – PRONEX) supports grid extension and densification. PRONEX is included in the PforR Program, with an estimated funding of US$95 million. (d) The Master Plan for Grid Automation and Telecommunication 2015-2030 (Plan Directeur Automatisme et Téléconduite - PDAT) supports the digitalization of the electricity system. PDAT is included in the PforR Program, with an estimated funding of US$43 million. The NEDA PforR component will support the roll out of these flagship Government programs (PEPT, PRONEX, PDAT) for on-grid access expansion and service reliability improvements in lagging regions where electrification needs are highest. The scope of the program and its boundaries with respect to ongoing national programs are presented in Table 1. Table 1: PforR alignment with government programs Program supported by Reasons for non- Program Characteristic Government program the PforR alignment 14The target architecture for 2030 is characterized by the separation of the telecontrol of high and medium voltage facilities, the creation of two dispatching centers, which can alternately play the role of national transport dispatching center and fallback dispatching center, and the creation of two equipped control centres, which share the supervision of the Abidjan and inland high voltage substations. Sep 28, 2022 Page 5 of 11 The World Bank Cote d’Ivoire National Electricity Digitalization and Access in lagging regions operation (P176776) Remove financial Remove financial barriers to Objective barriers to electricity electricity connections connections No official closing date for Duration 2014-No official end date 2023-2028 PEPT PEPT Geographic Northern and western Lagging regions with All the country coverage regions15 substantial needs Connections in the PforR’s Household connections (1.7 Household connections Results areas geographic area and million)16 (251,925) funding limits Around US$400 million (national) GoCI US$25 million, PEPT required, from: GoCI, Financing and Overall customer contributions development partners, geographical Financing US$25 million,17 and WB customers, and possible private constraints US$58 million sector financing Extend, densify, and Extend, densify, and rehabilitate Objective rehabilitate the the distribution grid distribution grid Financing plan goes until Duration 2020-2032 2023-2028 2032, beyond project duration PRONEX Geographic Northern and western Lagging regions with All the country coverage regions substantial needs Kilometers of climate Kilometers of new MV lines resilient LV lines Construction in the (approx. 1,400km) and LV lines Results areas (1,643km) and MV PforR’s geographic area (approx. 16,000km); Household (713km, of which 137km and funding limits connections (1.7 million) new) Around US$950 million (national) Overall required, of which development GoCI US$50 million; WB Financing constraints Financing partners US$263 million (partly US$124 million18 disbursed) 15 In the context of this project, the northern part of Cote d'Ivoire is considered as including 12 regions (Bafing, Worodougou, Béré, Hambol, Gontougo, Kabadougou, Folon, Bagoue, Poro, Tchologo, Gbeke, and Bounkani) and western Cote d'Ivoire 6 regions (Tonkpi, Guemon, Cavally, Nawa, San Pedro, and Goh). There are 33 regions in the country. 16 Based on 2021 national census, Recensement Général de la Population et de l'Habitat de 2021 17 PEPT connection payments deposited to the PEPT fund are included as GoCI contribution. 18 Including PRONEX distribution works and substation rehabilitation. Sep 28, 2022 Page 6 of 11 The World Bank Cote d’Ivoire National Electricity Digitalization and Access in lagging regions operation (P176776) Improve service Improve service reliability reliability through digital Objective through digital infrastructure for infrastructure for grid grid management management Duration 2015-2030 2023-2028 PforR limited in duration PDAT Geographic Northern and western Lagging regions with All the country coverage regions substantial needs Improve grid Improve grid performance performance through through lower: (i) unserved Results areas lower: (i) unserved energy, (ii) average duration of energy, (ii) average outages duration of outages Overall Financing and Around US$200 million required WB US$43 million Financing geographical constraints IPF scope 10. The Investment Project Financing (IPF) will finance technical assistance (TA) for sector capacity building and program implementation. This component focuses on capacity building and implementation support on technical activities, including for energy and digital, fiduciary, gender, and environmental and social activities. C. Proposed Program Development Objective(s) Program Development Objective(s) The PDOs are to (i) increase access to electricity and (ii) improve quality of electricity service in northern and western Cote d’Ivoire, and (iii) to enhance institutional capacity to support electrification programs in the country. 11. The PDO indicators are: (a) People provided with new or improved electricity service (number), of which female (percent); (b) Kilometers of climate-resilient distribution lines (kms); (c) Reduction in System Average Interruption Duration Index (SAIDI) (hours); (d) Cybersecurity capacity enhanced (yes/no); (e) Increased proportion of female staff in technical or managerial positions at CI-Energies (yes/no). Sep 28, 2022 Page 7 of 11 The World Bank Cote d’Ivoire National Electricity Digitalization and Access in lagging regions operation (P176776) D. Environmental and Social Effects 12. A draft Environmental and Social Systems Assessment (ESSA), disclosed on July 26, 202219, indicates that the GoCI has generally well-established legislation relating to E&S management and suggests some areas for improvement. Based on the evaluation, the environmental and social risk rating is currently moderate. The national system for environmental management is managed by the Agence Nationale de l’Environnement (ANDE), which oversees the conduct of impact studies and manages the enforcement of environmental regulations. While there is generally good capacity to manage these functions, there are areas for improvement to ensure they can be fully compliant with PforR core principles and planning elements. In particular, measures regarding and E&S management system of monitoring of construction activities and resettlement action plans (RAPs) for sub-projects will be put in place for NEDA. Program designs and screening processes have excluded actions/activities that would have significant adverse impacts that are sensitive, diverse or unprecedented on the environment and/or affected people. 13. The Program investments will cover rural, urban, and peri-urban contexts. Urban and peri-urban construction activities will likely take place along existing right of ways (ROW) or land in the public domain. The Program contemplates the extension and densification of power grids and diverse investments in power infrastructure. The rehabilitation or construction of electrical substations or digital infrastructure may require permanent resettlement, and therefore the compensation of all land and assets impacted by the infrastructure. All non-land assets, including crops, trees and built infrastructure, under the ROW will be compensated. Livelihood restoration measures will be put in place to support communities re-establish crops suitable for cultivation under transmission lines after construction. 14. Land acquisition and resettlement impacts are not expected to be major and technical studies will include an E&S assessment and RAPs as necessary. Project design will include routing analysis to ensure any substantial resettlement impacts are avoided. The most important resettlement-related impacts are temporary and/or permanent physical and economic displacement in urban and peri-urban areas, where the ROW can be taken over by households or businesses with frequently no legal occupation or tenure rights. The ESSA has recommended that a resettlement policy framework be developed as part of the projects technical manual so that all national and WB policies for resettlement including compensation and eligibility principles, are aligned for NEDA. 15. The development and reinforcement of technical capacities is needed to adequately manage the implementation, monitoring and evaluation of E&S risks and impacts. Technical assistance, including the development of templates, tools and training will be implemented as part of the IPF. The ESSA also includes specific recommendations to improve E&S capacity for NEDA, and particularly for CI-Energies. This includes developing an institution-wide E&S management system (including grievance redress mechanism). 16. IPF: The IPF activities follow the World Bank Environmental and Social Framework (ESF). Overall, they should have limited negative E&S impact as they primarily cover technical assistance and studies. Positive environmental and social benefits could result from capacity strengthening. Technical assistance is planned for implementing agencies, regulatory authorities and decentralized government to increase their E&S skills and awareness. Required documents have been approved including the Environmental and Social Review Summary (ESRS), and the 19 https://documents1.worldbank.org/curated/en/099810007262234986/pdf/P17677609cb7fc000a78d0a495781af1a9.pdf Sep 28, 2022 Page 8 of 11 The World Bank Cote d’Ivoire National Electricity Digitalization and Access in lagging regions operation (P176776) Environmental and Social Commitment Plan (ESCP). 17. Citizen Engagement: The ESSA preparation involved stakeholder consultations and disclosure of the ESSA report following the guidelines of the World Bank’s Access to Information Policy. Consultations led by the World Bank and CI-Energies included meetings with local authorities (such as regional and city councils, customary authorities, and local representations of various ministries) and populations especially in Korhogo and Man in March and April 2022. Disclosure of the ESSA report occurred on July 26, 2022. 18. Grievance Redress. Communities and individuals who believe that they are adversely affected as a result of a Bank supported PforR operation, as defined by the applicable policy and procedures, may submit complaints to the existing program grievance mechanism or the Bank’s Grievance Redress Service (GRS). The GRS ensures that complaints received are promptly reviewed in order to address pertinent concerns. Project affected communities and individuals may submit their complaint to the Bank’s independent Accountability Mechanism (AM). The AM houses the Inspection Panel, which determines whether harm occurred, or could occur, as a result of Bank non-compliance with its policies and procedures, and the Dispute Resolution Service, which provides communities and borrowers with the opportunity to address complaints through dispute resolution. Complaints may be submitted at any time after concerns have been brought directly to the Bank's attention, and Bank Management has been given an opportunity to respond. For information on how to submit complaints to the Bank’s Grievance Redress Service (GRS), please visit http://www.worldbank.org/GRS. For information on how to submit complaints to the Bank’s Accountability Mechanism, please visit https://accountability.worldbank.org. . . ESF_LEGAL_T BL Legal Operational Policies Triggered? Projects on International Waterways OP 7.50 No Projects in Disputed Areas OP 7.60 No Summary of Assessment of Environmental and Social Risks and Impacts (With IPF Component for PforR) . E. Financing NEDA financing 19. Financing for the Program is expected to come from the government, electricity users through their connection charges, and IDA. Sep 28, 2022 Page 9 of 11 The World Bank Cote d’Ivoire National Electricity Digitalization and Access in lagging regions operation (P176776) Table 1: Overall financing Amount Percent of Source (USD Million) Total Counterpart Funding – PforR 10020 29 Government [75] Connection fees [25] International Development Association (IDA) – 250 71 PforR + IPF IDA Credit – PforR 240 IDA Credit – IPF 10 Total Financing 350 . CONTACT POINT World Bank Name : Arnaud Braud Designation : Senior Energy Specialist Role : Team Leader(ADM Responsible) Telephone No : 5220+31028 / Email : abraud@worldbank.org Name : Thomas Flochel Designation : Senior Energy Economist Role : Team Leader Telephone No : 5220+35250 / Email : tflochel@worldbank.org Name : Xavier Stephane Decoster Designation : Senior Digital Development Specialist Role : Team Leader Telephone No : 5780+3178 / Email : xdecoster@worldbank.org Borrower/Client/Recipient Borrower : the Republic of Côte d'Ivoire 20 Estimate based on GoCI’s technical studies and connection fees Sep 28, 2022 Page 10 of 11 The World Bank Cote d’Ivoire National Electricity Digitalization and Access in lagging regions operation (P176776) Contact : Sabati Cissé Title : Director of Energy Telephone No : 22520206145 Email : sabati.cisse@egouv.ci Implementing Agencies Implementing CI-Energies Agency : Contact : Sidibé Noumory Title : Managing Director Telephone No : 22520206201 Email : snoumory@cinergies.ci FOR MORE INFORMATION CONTACT The World Bank 1818 H Street, NW Washington, D.C. 20433 Telephone: (202) 473-1000 Web: http://www.worldbank.org/projects Sep 28, 2022 Page 11 of 11