The World Bank Implementation Status & Results Report PNG Energy Sector Development Project (P101578) PNG Energy Sector Development Project (P101578) EAST ASIA AND PACIFIC | Papua New Guinea | Energy & Extractives Global Practice | IBRD/IDA | Investment Project Financing | FY 2013 | Seq No: 12 | ARCHIVED on 28-Jun-2019 | ISR36564 | Implementing Agencies: Department of Petroleum and Energy, PNG Power Limited (PPL), Independent State of Papua New Guinea Key Dates Key Project Dates Bank Approval Date: 21-Feb-2013 Effectiveness Date: 27-Nov-2013 Planned Mid Term Review Date: 30-Nov-2015 Actual Mid-Term Review Date: 30-Nov-2015 Original Closing Date: 31-Jan-2018 Revised Closing Date: 31-Jul-2019 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) Project Development objective: The project development objectives (PDO) are to (i) strengthen policy development andstrategic framework for renewable energy and rural electrification; and (ii) to attract investors for sustainable development ofnew hydropower generation to supply to the Port Moresby electricity grid. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Institutional and Policy Development for Renewable Energy and Rural Electrification:(Cost $1.50 M) Technical Assistance for Preparation and Planning for Port Moresby Hydropower Supply:(Cost $7.10 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Unsatisfactory Moderately Unsatisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Unsatisfactory Overall Risk Rating High High Implementation Status and Key Decisions Project performance ratings have been at Moderately Unsatisfactory for both implementation progress (IP) and progress towards the development objective (DO) due to the delays experienced to date within both the Department of Communication, Information Technology and Energy (formerly Department of Petroleum and Energy (DPE)) and PNG Power Limited (PPL) components. Despite implementation delays there has been some progress, notably, the technical assistance provided for the development of the Naoro Brown Hydropower project (NBHP), approved by Cabinet in April 2018, has been progressing, with some activities including the ESIA expected to be delivered by the closing date. Having said this, PPL initially decided to put the NB on hold but has now decided to outsource the NB project to help with the tender to attract private sector investment initially expected to be launched by the end of 2019. 6/28/2019 Page 1 of 5 The World Bank Implementation Status & Results Report PNG Energy Sector Development Project (P101578) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Substantial Substantial Macroeconomic -- Substantial Substantial Sector Strategies and Policies -- Low Low Technical Design of Project or Program -- Substantial Substantial Institutional Capacity for Implementation and Sustainability -- High High Fiduciary -- Substantial Substantial Environment and Social -- High High Stakeholders -- High High Other -- Low Low Overall -- High High Results PDO Indicators by Objectives / Outcomes Strengthen policy development and strategic framework for renewable energy and rural electrification IN00688417 ►National Energy Policy and rural electrification strategy finalised by the Department of Petroleum and Energy following participatory process (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No Yes Yes Date 05-Dec-2013 30-Nov-2018 02-May-2019 31-Jul-2019 Geospatial Modelling and Investment prospectus was completed in August 2016 with comments from the main sectors have been incorporated in the final report of the National Electrification Roll out Plan (NEROP). A cabinet submission has prepared under the Department of Petroleum and Energy now Comments: Ministry of Communications, Information Technology and Energy pending cabinet approval since December 2018. The National Energy Policy was submitted and approved by cabinet on April 11, 2018. IN00702427 ►GEF indicator: Identification of at least renewable energy based mini-grid concessions in accordance with the Rural electrification Strategy (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No -- Yes Yes 6/28/2019 Page 2 of 5 The World Bank Implementation Status & Results Report PNG Energy Sector Development Project (P101578) Date 05-Dec-2013 -- 02-May-2019 31-Jul-2019 The Geospatial modelling and investment prospectus high level work was largely funded under GEF. This Comments: included planning grid and off grid work. To attract investors for sustainable development of new hydropower generation to supply Port Moresby IN00688418 ►Financing structure for the Naoro brown Hydropower project is approved by government (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 05-Aug-2013 30-Nov-2018 02-May-2019 31-Jul-2019 Preparation of a specific financing structure for the project and government support needed to attract investment has been completed and recommended for government/cabinet approval by PPL. The cabinet Comments: submission was approved by cabinet on April 10, 2018 and which established the setup of a steering committee. Intermediate Results Indicators by Components Component one: Institutional and Policy Development for Renewable Energy and Rural Electrification IN00702370 ►Elements of Rural electrification strategy prepared (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No -- Yes Yes Date 05-Dec-2013 -- 02-May-2019 31-Jul-2019 IN00702467 ►Strategic Environmental and Social Assessment (SESA) completed (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No -- Yes Yes Date 05-Dec-2013 -- 02-May-2019 31-Jul-2019 IN00702468 ►Improved GoPNG institutional capacity in the energy sector to support future investment in rural and renewable energy (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No -- Yes Yes Date 05-Dec-2013 -- 02-May-2019 31-Jul-2019 There is very weak capacity in the Energy wing of the Ministry, short term consultants are engaged to Comments: support the weak capacity. 6/28/2019 Page 3 of 5 The World Bank Implementation Status & Results Report PNG Energy Sector Development Project (P101578) Component Two: Technical Assistance for Preparation and Planning for Port Moresby Hydropower Supply IN00702428 ►NB consultation process progresses in a way that results in decisions that respond to the interests and concerns of both women and men in the NB project area, and advances the objectives of the NB pro (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No -- Yes Yes Date 05-Dec-2013 -- 02-May-2019 31-Jul-2019 IN00702469 ►Improved institutional capacity at PPL related to preparation and planning for hydropower development. (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No -- Yes Yes Date 05-Dec-2013 -- 02-May-2019 31-Jul-2019 Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P101578 IDA-52010 Effective USD 7.30 7.30 0.00 5.03 1.72 75% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P101578 IDA-52010 Effective 21-Feb-2013 29-May-2013 27-Nov-2013 31-Jan-2018 31-Jul-2019 Cumulative Disbursements 6/28/2019 Page 4 of 5 The World Bank Implementation Status & Results Report PNG Energy Sector Development Project (P101578) Restructuring History Level 2 Approved on 29-Jun-2016 ,Level 2 Approved on 12-Jul-2017 Related Project(s) P122974-GM- PG Energy Sector Development Project 6/28/2019 Page 5 of 5