The World Bank Implementation Status & Results Report Nepal: Private Sector-Led Mini-Grid Energy Access Project (P149239) Nepal: Private Sector-Led Mini-Grid Energy Access Project (P149239) SOUTH ASIA | Nepal | Energy & Extractives Global Practice | Recipient Executed Activities | Investment Project Financing | FY 2019 | Seq No: 4 | ARCHIVED on 18-Nov-2020 | ISR43947 | Implementing Agencies: Alternative Energy Promotion Centre (AEPC), Government of Nepal, Ministry of Finance Key Dates Key Project Dates Bank Approval Date: 30-Jan-2019 Effectiveness Date: 30-Sep-2019 Planned Mid Term Review Date: 15-Mar-2021 Actual Mid-Term Review Date: Original Closing Date: 30-Apr-2023 Revised Closing Date: 30-Apr-2023 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective (PDO) is to increase electricity generation capacity from renewable energy mini-grids in selected areas by mobilizing ESCOs. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Component 1: Credit Facility to support Renewable Mini-grid Subprojects:(Cost $5.61 M) Component 2: Technical Assistance to the Mini-grid Sector, ESCOs and Partner Banks and Project Management Support:(Cost $2.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Moderately Satisfactory Overall Risk Rating Substantial Substantial Implementation Status and Key Decisions The Project Management Team (PMT) at Alternative Energy Promotion Center (AEPC) is now staffed and functional. In addition, the Subsidiary Grant Agreement and the Subsidiary Loan Agreement between the Ministry of Finance and AEPC to on-lend the fund by GoN to AEPC has also been signed. Furthermore, the Project Operation Manual (POM) has been finalized and endorsed by the World Bank. Currently, total of 50 applications for mini-grid development have been received out of which 35 applications are for solar mini-grids and 15 are for mini-hydro. Of these, two mini-hydro subprojects (Monju Khola-910 kW and Amadablam- 900 kW) in Solukhumbu district have completed the detailed feasibility studies and are undergoing Environmental and Social Impact Assessment (ESIA) preparation. Similarly, three solar mini-grids (Ghurmi Solar Mini-Grid 221 kW, Shubakalika Solar Mini-Grid 150 kW, and Tatopani Solar Mini-Grid (997 kW) are undergoing detailed feasibility and ESIA studies. COVID-19 has impacted the site analysis of these projects, but overall, the studies are expected to be finalized within next few months. In order to expedite the project through Public Private Partnership (PPP) modality the following actions need to be taken: 11/18/2020 Page 1 of 6 The World Bank Implementation Status & Results Report Nepal: Private Sector-Led Mini-Grid Energy Access Project (P149239) - Re-evaluation of business models including the inclusion of non-private entities and interest rate modalities to incentivize the mini-grid development - finalize frameworks for PPA and net metering tariffs for solar rooftops and assess subsidy policy/directive for relevant elements of the project. - revisit the subsidy model/mechanism for the relevant models of the mini-grid projects Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Substantial Substantial Substantial Macroeconomic Moderate Substantial Substantial Sector Strategies and Policies Substantial Substantial Substantial Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and High High High Sustainability Fiduciary Substantial Substantial Substantial Environment and Social Moderate Moderate Moderate Stakeholders Substantial Substantial Substantial Other -- Substantial Substantial Overall Substantial Substantial Substantial Results PDO Indicators by Objectives / Outcomes To increase electricity generation capacity from RE mini-grids in selected areas by mobilizing ESCOs IN00907674 ►Generation capacity of energy constructed or rehabilitated (Megawatt, Corporate) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 3.80 Date 01-Mar-2019 30-Apr-2019 30-Sep-2020 30-Apr-2023 IN00907675 ►People provided with new or improved electricity service (Number, Corporate) Baseline Actual (Previous) Actual (Current) End Target 11/18/2020 Page 2 of 6 The World Bank Implementation Status & Results Report Nepal: Private Sector-Led Mini-Grid Energy Access Project (P149239) Value 0.00 0.00 0.00 126,000.00 Date 01-Feb-2019 30-Apr-2019 30-Sep-2020 30-Apr-2023 IN00907676 ►Capital mobilized by private companies (Amount(USD), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 3,363,000.00 Date 01-Feb-2019 30-Apr-2019 30-Sep-2020 30-Apr-2023 Intermediate Results Indicators by Components Component 1: Credit Facility to Support Renewable Energy Mini-grid Subprojects IN00907677 ►Number of new mini-grid subprojects supported by the project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 15.00 Date 01-Feb-2019 30-Apr-2019 30-Sep-2020 30-Apr-2023 IN00907679 ►Number of rehabilitated mini-grid subproject supported by the project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 4.00 Date 01-Feb-2019 30-Apr-2019 30-Sep-2020 30-Apr-2023 IN00907681 ►Number of mini-grid interconnection subproject supported by the project (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 9.00 Date 01-Feb-2019 30-Apr-2019 30-Sep-2020 30-Apr-2023 IN00907683 ►Net greenhouse gas emissions (Tones/year, Corporate) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 29,486.86 Date 01-Feb-2019 30-Apr-2019 30-Sep-2020 30-Apr-2023 IN00907685 11/18/2020 Page 3 of 6 The World Bank Implementation Status & Results Report Nepal: Private Sector-Led Mini-Grid Energy Access Project (P149239) ►Number of businesses provided with new or improved electricity service (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 82.00 Date 01-Feb-2019 30-Apr-2019 30-Sep-2020 30-Apr-2023 IN00907686 ►Number of Women businesses provided with new or improved electricity service (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 27.00 Date 01-Feb-2019 30-Apr-2019 30-Sep-2020 30-Apr-2023 IN00907687 ►Number of households provided with new or improved electricity service (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 27,000.00 Date 01-Feb-2019 30-Apr-2019 30-Sep-2020 30-Apr-2023 IN00907688 ►Annual electricity output from renewable energy (Gigawatt-hour (GWh)) (Gigawatt-hour (GWh), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 27.50 Date 01-Feb-2019 30-Apr-2019 30-Sep-2020 30-Apr-2023 Component 2: Technical Assistance to Mini-grid Sector, ESCOs, and PBs and Project Management Support IN00907678 ►People trained in project preparation and implementaiton (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 150.00 Date 01-Feb-2019 30-Apr-2019 30-Sep-2020 30-Apr-2023 IN00907680 ►Number of women trained to engage in mini-grid sector (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 50.00 Date 01-Feb-2019 30-Apr-2019 30-Sep-2020 30-Apr-2023 IN00907682 11/18/2020 Page 4 of 6 The World Bank Implementation Status & Results Report Nepal: Private Sector-Led Mini-Grid Energy Access Project (P149239) ►Consultations with citizens and consumer feedback surveys with publicly disclosed reports summarizing findings (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 01-Feb-2019 30-Apr-2019 30-Sep-2020 30-Apr-2023 IN00907684 ►Specialist services procured for project implementaiton (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 01-Feb-2019 30-Apr-2019 30-Sep-2020 30-Apr-2023 Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P149239 TF-A8336 Effective USD 2.00 2.00 0.00 0.00 2.00 0%% P149239 TF-A8382 Effective USD 5.61 5.61 0.00 0.89 4.72 16% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P149239 TF-A8336 Effective 30-Jan-2019 22-Apr-2019 30-Sep-2019 30-Apr-2023 30-Apr-2023 P149239 TF-A8382 Effective 30-Jan-2019 22-Apr-2019 30-Sep-2019 30-Apr-2023 30-Apr-2023 Cumulative Disbursements 11/18/2020 Page 5 of 6 The World Bank Implementation Status & Results Report Nepal: Private Sector-Led Mini-Grid Energy Access Project (P149239) PBC Disbursement Achievement Disbursed amount in Disbursement % PBC ID PBC Type Description Coc PBC Amount Status Coc for PBC Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 11/18/2020 Page 6 of 6