The World Bank Report No: ISR2177 Implementation Status & Results Tanzania Public Disclosure Copy TZ-Songo Gas Dev & Power Gen (FY02) (P002797) Operation Name: TZ-Songo Gas Dev & Power Gen (FY02) (P002797) Project Stage: Implementation Seq.No: 18 Status: ARCHIVED Last Modified Date: 03-Mar-2011 Country: Tanzania Approval FY: 2002 Product Line: IBRD/IDA Region: AFRICA Lending Instrument: Specific Investment Loan Implementing Agency(ies): TANESCO, Ministry of Energy and Minerals Key Dates Board Approval Date 09-Oct-2001 Original Closing Date 31-Mar-2006 Planned Mid Term Review Date 30-Apr-2004 Last Archived ISR Date 22-Jun-2010 Effectiveness Date 27-Nov-2001 Revised Closing Date 31-Dec-2010 Actual Mid Term Review Date 03-Feb-2004 Project Development Objectives Project Development Objective (from Project Appraisal Document) The main development objective of the project is to develop Tanzania's natural gas reserves to produce least-cost power generation for domestic and industrial use in an environmentally sustainable and efficient manner. The project will promote private sector ownership and management of generation in the gas and power sectors. In addition, it will encourage increased access of the poor by developing financially sustainable rural energy schemes to presently unserved areas along the pipeline corridor. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost SONGAS 119.10 Social and Environmental and M&E 25.00 MEM CAPACITY BUILDING 7.00 Public Disclosure Copy Ubungo Expansion Project (UEP ) Capacity Charge Reduction 42.30 Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Implementation Status Overview This ISR assesses the situation of the Project as per December 16th, 2010, when a Level II Restructuring Paper was approved. This ISR is based on a "desk supervision" of the Project, since no official mission was carried out since the last ISR. However since the Task Team, including the Task Team Leader, is based in Dar es Salaam, this ISR benefited Page 1 of 11 The World Bank Report No: ISR2177 from several meetings with Project stakeholders to update the Project information, though no field visit had been carried out. Finally it has also to be noted that the Project closed on December 31, 2010 and a last Supervision of the Project will be combined with the ICR mission currently scheduled for March 2011. Public Disclosure Copy The update of the Outcome Indicators shows that by December 16, 2010 close to all indicator target values have been achieved or even exceeded. The Task Team is confident that the outstanding activities will be completed by Project closing and close to all target values will have been reached except for some indicators relating to the Wayleaves which may not be entirely achieved due to the important implementation delays of this sub-component. It has also to be noted that this ISR has taken into account certain Indicator "drops" as approved by the RP. Results Project Development Objective Indicators Indicator Baseline Current End Target Indicator Name Value Value Value Weighted average energy cost for power generated in Ubungo for US$0.13/kWh UEP Capacity charges have been - UEP capacity charges domestic and industrial use (US$/kWh) significantly reduced (current significantly reduced Date cost=US$0.064/kWh) - IPTL Plant converted to natural 27-Nov-2001 gas firing Date Type Unit of Measure Comment Date 16-Dec-2010 Custom Indicator Text 31-Dec-2010 Comment Achieved. Comment Original Targets Achieved and Original Targets Achieved and exceeded with a current average exceeded with a current average cost value of US$ 0.064/kWh cost value of US$ 0.064/kWh which is way below the originally which is way below the originally targeted US$ 0.092 /kWh. targeted US$ 0.092 /kWh. Indicator Baseline Current End Target Indicator Name Value Value Value Volume of domestic gas consumption for electricity & production NIL 75 Total 30 (Mmcf/d) (Electricity 65& Date Date Production 20) Public Disclosure Copy 27-Nov-2001 31-Dec-2010 Date Type Unit of Measure Comment Comment 16-Dec-2010 Custom Indicator Text Targets achieved since 2007 and Comment currently exceeded as actual Targets achieved since 2007 and processing volume is 80mcf/ currently exceeded as actual dTargets achieved since 2007 and processing volume is 80mcf/ currently exceeded as actual dTargets achieved since 2007 and processing volume is 85mcf/d currently exceeded as actual processing volume is 85mcf/d Page 2 of 11 The World Bank Report No: ISR2177 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value New Private Entities invest capital and own and operate project in the Limited contractual engagement New Private Entities have invested New Private Entities invested gas and power sectors with Private Sector in the Power capital and own and operate capital and own and operate and Gassectors project in the gas and power project in the gas and Date sectors. power sectors Type Unit of Measure Target achieved since 2007 Date 27-Nov-2001 Custom Indicator Text Date 31-Dec-2010 Comment 16-Dec-2010 Comment Comment Target achieved since 2007. Songas 2002, expanded in 2004. Songas and PanAfrican JV with TPDC have further expansion plans. Other private operators include IPTL and various Small Power Producers. Next power projects are expected to be on a PPP basis. Indicator Baseline Current End Target Indicator Name Value Value Value Percentage of electrification in unserved areas along the corridor of the NIL Resettlement infrastructure Resettlement infrastructure gas pipeline. component (RIDS) Completed; and component (RIDS) and Date Electrification scheme 99% Electrification scheme (WVES) 27-Nov-2001 completed completed Type Unit of Measure Comment Date Date Custom Indicator Text 16-Dec-2010 31-Dec-2010 Comment Comment Overall Achieved: Target of 100% Target for RIDS achieved and Public Disclosure Copy completion for Resettlement Target for Wayleaves will be Infrastructure Development achieved by Closing Date. Scheme achieved in 2008. Wayleaves infrastructure about 99% completed to date. Awaiting completion of 1 km of Transmission line stringing. Intermediate Results Indicators Page 3 of 11 The World Bank Report No: ISR2177 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Gas processing plant and ancillary infrastructure constructed 0 Gas plant and infrastructure Gas plant and infrastructure Date completed completed 27-Nov-2001 Date Date Type Unit of Measure Comment 16-Dec-2010 31-Dec-2010 Custom Indicator Text Comment Comment Target achieved since Nov 2007. Target achieved since 2007 Gas Plant and infrastructure completed and operational. Indicator Baseline Current End Target Indicator Name Value Value Value Pipeline from Songo Songo Island to Dar es Salaam constructed (km) 0 232 km landline and 25 km 207 km landline and 25 km Date undersea pipeline constructed undersea pipeline constructed 27-Nov-2001 Date Date Type Unit of Measure Comment 16-Dec-2010 31-Dec-2010 Custom Indicator Text Comment Comment Target achieved in 2005 Target achieved since 2005 Indicator Baseline Current End Target Indicator Name Value Value Value Volume of gas production for power generation (mmcf/day) in Songas 0 65 30 facility. Date Date Date 27-Nov-2001 16-Dec-2010 31-Dec-2010 Type Unit of Measure Comment Comment Comment Custom Indicator Text Target of 30mmcf/d achieved in Target achieved in 2006 Public Disclosure Copy 2006. Target currently exceeded. Indicator Baseline Current End Target Indicator Name Value Value Value No#s of gas turbines rehabilitated and converted to gas firing 0 4 4 Date Date Date 27-Nov-2001 16-Dec-2010 31-Dec-2010 Type Unit of Measure Comment Comment Comment Custom Indicator Text Target achieved in 2007. Target achieved in 2007. Page 4 of 11 The World Bank Report No: ISR2177 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Generation capacity, additional Bank (MW) 0 7.5 7.5 Date Date Date 27-Nov-2001 16-Dec-2010 31-Dec-2010 Type Unit of Measure Comment Comment Comment Custom Indicator Text Somanga Power station was Target achieved since Aug 2010. commissioned in August 2010. At Comissioning, all three units were running for a short period. However however a repair on alternator genset 2 has to be done next year, due to damage after commissioning. Target is overall achieved, although plant is currently not fully operational. Indicator Baseline Current End Target Indicator Name Value Value Value Electricity transmission lines, additional Bank (km) 0 315.6 254.37 Date Date Date 27-Nov-2001 16-Dec-2010 31-Dec-2010 Type Unit of Measure Comment Comment Comment Custom Indicator Text Target Achieved in 2009 and The various indicators in the RF of exceeded. The various indicators the PAD have been accumulated in the RF of the PAD have been to one number measured here. accumulated to one number This Target number can be broken measured here. This number can down as follows: be broken down as follows: -Gas based Total: 220km Public Disclosure Copy -Gas based Total: 280km -Grid extension Total: 29.37km -Grid extension Total: 30.6km - SS Island Total: 5km - SS Island Total: 5km Page 5 of 11 The World Bank Report No: ISR2177 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Households with electricity, additional Bank (number) 0 710 897 Date Date Date 27-Nov-2001 16-Dec-2010 31-Dec-2010 Type Unit of Measure Comment Comment Comment Custom Indicator Text By December 16, 2010, TANESCO This Indicator was further reviewed has connected 710 Households in the light of the recent which comprises: discussions on energy core - 113 HH on Songo Songo Island indicators. In the review it was - 300 HH on the Grid Extension clarified that this indicator as part; and currently worded refers to - 297 HH on the Wayleaves. Households. One household is Therefore Target is closed to being equivalent to one TANESCO achieved. Customer connection. However the current Results framework of the Project has several indicators, partially referring to Customers (i.e. = Households) but also to "Consumer" which are individuals within a Household. Thus within this ISR this indicator target value was harmonized in line with the Indicators wording referring to Households. Consequently the Target value was updated as follows: - RF refers to 2.759 new consumers, which represents 484 Households in TZ (on average a Public Disclosure Copy HH counts 5.7 persons). - RF also refers to additional 300 new customers (HH Connections) on Grid Extension part, and - 113 new Customers (HH Connections) on Songo Sogo Island. Thus the new and harmonizedHousehold target value should be 897 Households. Page 6 of 11 The World Bank Report No: ISR2177 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Water points built, Bank (number) 0 88 88 Date Date Date 27-Nov-2001 16-Dec-2010 31-Dec-2010 Type Unit of Measure Comment Comment Comment Custom Indicator Text Target achieved since Nov 2007. Target Achieved since 2007. Indicator Baseline Current End Target Indicator Name Value Value Value Water piping rehabilitated, Bank (km) 0 3 3 Date Date Date 27-Nov-2001 16-Dec-2010 31-Dec-2010 Type Unit of Measure Comment Comment Comment Custom Indicator Text Target achieved since Nov 2007 Target achieved since 2007 Indicator Baseline Current End Target Indicator Name Value Value Value Improved water supply, Bank (number of additional people) 0 4000 4000 Date Date Date 27-Nov-2001 16-Dec-2010 31-Dec-2010 Type Unit of Measure Comment Comment Comment Custom Indicator Text Target achieved since Nov 2007 Target achieved since 2007 Indicator Baseline Current End Target Indicator Name Value Value Value Roads constructed, Bank (km) 0 12.8 12.8 Public Disclosure Copy Date Date Date 27-Nov-2001 16-Dec-2010 31-Dec-2010 Type Unit of Measure Comment Comment Comment Custom Indicator Text Target achieved since Nov 2007. Target achieved since 2007 This relates to the roads on the RIDS. Page 7 of 11 The World Bank Report No: ISR2177 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Telecommunication lines, additional Bank (km) 0 1.2 1.2 Date Date Date 27-Nov-2001 16-Dec-2010 31-Dec-2010 Type Unit of Measure Comment Comment Comment Custom Indicator Text Target achieved since Nov 2007. Target achieved since 2007. This has been part of the RIDS. Indicator Baseline Current End Target Indicator Name Value Value Value Wellhead SS#6 closed and decommissioned Not done Wellhead # 6 Closed and Closing and Decommissioning of Date Decommissioned Wellhead # 6 completed 27-Nov-2001 Date Date Type Unit of Measure Comment 16-Dec-2010 31-Dec-2010 Custom Indicator Text Comment Comment Wellhead was closed and thereby Target achieved since 2008. target Achieved since April 2008. Indicator Baseline Current End Target Indicator Name Value Value Value Power System Master Plan Concept in 2004 Power System Master Plan Power System Master Plan Date completed completed 27-Nov-2001 Date Date Type Unit of Measure Comment 31-May-2010 31-Dec-2010 Custom Indicator Text Comment Comment PSMP Final report was delivered Target achieved since 2008 Public Disclosure Copy and approved by GoT in September 2008 Indicator Baseline Current End Target Indicator Name Value Value Value Technical Studies for improving operational efficiencies of TANESCO New activity 2007 Studies close to completion Studies completed Date Date Date 21-Dec-2007 16-Dec-2010 31-Dec-2010 Type Unit of Measure Comment Comment Comment Custom Indicator Text All draft final deliverables Most studies completed and all submitted to Bank for No Objection studies will be completed by and few No Objections outstanding closing date. Page 8 of 11 The World Bank Report No: ISR2177 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Financial and Tariff Advisory to TANESCO New activity 2007 Advisory support provided Advisory support provided Date Date Date 21-Dec-2007 16-Dec-2010 31-Dec-2010 Type Unit of Measure Comment Comment Comment Custom Indicator Text Tariff application submitted on May Target achieved in December 2010 28, 2010. Follow up work completed. Target Achieved. Indicator Baseline Current End Target Indicator Name Value Value Value Advisory support to TANESCO for preparation of public/private G, T & New activity 2007 Advisory support provided Advisory support provided D projects; Bidding documents for next Gas IPP Date Date Date 27-Nov-2001 16-Dec-2010 31-Dec-2010 Type Unit of Measure Comment Comment Comment Custom Indicator Text draft Final Report submitted to Target will be achieved by Closing Bank for No Objection. date. Indicator Baseline Current End Target Indicator Name Value Value Value Feasibility study for LPG extract New activity 2007 Feasibility study completed Feasibility study completed Date Date Date 21-Dec-2007 16-Dec-2010 31-Dec-2010 Type Unit of Measure Comment Comment Comment Custom Indicator Text Target Achieved Target achieved since 2009 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value TPDC PSA database developed New activity 2007 Database for PSAs functional Database for PSAs functional Date Date Date 21-Dec-2007 16-Dec-2010 31-Dec-2010 Type Unit of Measure Comment Comment Comment Custom Indicator Text Target Achieved Target achieved since 2009 Page 9 of 11 The World Bank Report No: ISR2177 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Amount of capacity charges to TANESCO for buying electricity from New activity 2007 US$ 15 million US$ 11million Songas Date Date Date 27-Nov-2001 16-Dec-2010 31-Dec-2010 Type Unit of Measure Comment Comment Comment Custom Indicator Text Target Achieved and exceeded. Reduction of capacity charges as reflection of amt and timing of payment to Songas per Provision 5.5(r) of the Songas PPA ($11m reduction in yr 1 expected based on $43 m payment made on 01/01/08) Data on Financial Performance (as of 08-Feb-2011) Financial Agreement(s) Key Dates Project Loan No. Status Approval Date Signing Date Effectiveness Date Closing Date P002797 IDA-35690 Closed 09-Oct-2001 11-Oct-2001 27-Nov-2001 31-Dec-2010 P002797 IDA-3569A Closed 09-Oct-2001 11-Oct-2001 27-Nov-2001 31-Oct-2007 P002797 TF-54487 Closed 10-Mar-2005 10-Mar-2005 10-Mar-2005 31-Dec-2007 Disbursements (in Millions) Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P002797 IDA-35690 Closed XDR 93.25 76.08 17.17 73.43 2.64 97.00 P002797 IDA-3569A Closed XDR 52.45 52.45 0.00 52.45 0.00 100.00 P002797 TF-54487 Closed XDR 5.41 5.16 0.25 5.16 0.00 100.00 Public Disclosure Copy Disbursement Graph Page 10 of 11 The World Bank Report No: ISR2177 Public Disclosure Copy Key Decisions Regarding Implementation The Task Team is currently preparing the ICR process and an ICR will have to be filed by June 30, 2011. Remaining Disbursement activities will be completed by April 30, 2011. Restructuring History RVP Approved on 26-Dec-2007, Level two Approved on 15-Dec-2010 Related Projects There are no related projects. Public Disclosure Copy Page 11 of 11