Public Disclosure Copy The World Bank Implementation Status & Results Report Kafue-Muzuma-Victoria Falls Regional Transmission Line Reinforcement Project (P124351) Kafue-Muzuma-Victoria Falls Regional Transmission Line Reinforcement Project (P124351) AFRICA | Africa | Energy & Extractives Global Practice | IBRD/IDA | Specific Investment Loan | FY 2012 | Seq No: 7 | ARCHIVED on 07-Jun-2016 | ISR23879 | Implementing Agencies: ZESCO Key Dates Key Project Dates Bank Approval Date:15-May-2012 Effectiveness Date:06-Dec-2012 Planned Mid Term Review Date:10-Oct-2016 Actual Mid-Term Review Date:-- Original Closing Date:31-Dec-2015 Revised Closing Date:30-Jun-2017 Project Development Objectives Project Development Objective (from Project Appraisal Document) To improve the reliability of ZESCO's regional power trade transmission network infrastructure along the Kafue Town - Muzuma - Victoria Falls corridor. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Component 1: Upgrading of the existing 220kV transmission line:(Cost $24.00 M) Component 2: Reinforcement and Construction of Substations:(Cost $71.00 M) Component 3: Project Management, Environmental and Social Mitigation, and Training:(Cost $5.00 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  Moderate  Moderate 6/7/2016 Page 1 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Kafue-Muzuma-Victoria Falls Regional Transmission Line Reinforcement Project (P124351) Implementation Status and Key Decisions The Project was approved on May 15, 2012, and became effective on December 06, 2012. The project closing date has been extended from December 31, 2015 to June 30, 2017. The project’s aim is to improve the reliability of ZESCO's transmission backbone infrastructure along the Kafue - Muzuma - Victoria Falls corridor. The components of the project are: (i) upgrading of the existing 220kV transmission line; (ii) reinforcement and construction of transmission substations; and (iii) project management, environmental and social mitigation, and capacity building. Under the project the existing 220kV transmission network between Kafue Town and Livingstone will be upgraded to 330kV, and a new 500MVA 330/220 kV substation will be constructed at Livingstone. The project will enhance bulk power transfers between Zambia and its neighboring countries including the interconnection with Namibia. This project will also benefit ZESCO customers by the upgrade of substations at Kafue and Muzuma, and by the implementation of a new substation at Livingstone that shall provide a strengthened bulk supply point for the Southern Province.. Project implementation is behind schedule mainly due to contract effectiveness delays that occurred in relation to the contract for switchgear and associated equipment. This has consequently delayed delivery and installation of the power transformers that have been procured under a separate contract. The contract to renovate the transmission line has also lately faced difficulties, in relation to the quality of equipment supplied by the contractor not meeting the required specifications and overall delay in implementing the renovation contract. These have raised the risk of completing the project works within the contract completion date of December 2016. A mid-term review of the project is planned in October 2016. In order to allow DOE and the Bank to undertake an in-depth assessment of the project at the mid-term review, the following actions were requested to the ZESCO PIU. 1. The PIU with support from its owner’s engineer will finalize the project progress report for the quarter of April-June 2016 and July-September 2016; 2. The PIU and its owner’s engineer will assess the current progress of each contractor to take any corrective measures if necessary to ensure that the contracts are implemented at agreed standards; 3. The PIU and its owner’s engineer will hold meetings with each project contractor to get their current project implementation plan; 4. The PIU will review the results matrix and intermediate indicators of the project considering the impact of any scope related changes that may have taken place. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  Moderate  Moderate Macroeconomic  --  Moderate  Moderate Sector Strategies and Policies  --  Moderate  Moderate Technical Design of Project or Program  --  Low  Low Institutional Capacity for Implementation and Sustainability  --  High  High Fiduciary  --  Substantial  Substantial Environment and Social  --  Moderate  Moderate Stakeholders  --  Low  Low Other  --  --  -- Overall  --  Moderate  Moderate 6/7/2016 Page 2 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Kafue-Muzuma-Victoria Falls Regional Transmission Line Reinforcement Project (P124351) Results Project Development Objective Indicators PHINDPDOTBL  Average interruption frequency per year in the project area (Number, Core) Baseline Actual (Previous) Actual (Current) End Target Value 5.00 5.00 5.00 3.00 Date 30-Sep-2012 30-Sep-2015 28-May-2016 30-Jun-2017 PHINDPDOTBL  Customers served in the project area (Number, Core Supplement) Baseline Actual (Previous) Actual (Current) End Target Value 125000.00 130000.00 130000.00 200000.00 PHINDPDOTBL  Electricity Trade (Gigawatt-hour (GWh), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 264.00 264.00 264.00 528.00 Date 30-Sep-2012 30-Sep-2015 28-May-2016 30-Jun-2017 Overall Comments Intermediate Results Indicators 6/7/2016 Page 3 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Kafue-Muzuma-Victoria Falls Regional Transmission Line Reinforcement Project (P124351) PHINDIRITBL  Transmission lines constructed or rehabilitated under the project (Kilometers, Core) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 348.00 Date 30-Sep-2012 30-Sep-2015 28-May-2016 30-Jun-2017 PHINDIRITBL  Transmission lines rehabilitated under the project (Kilometers, Core Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 348.00 Date 30-Sep-2012 30-Sep-2015 28-May-2016 30-Jun-2017 PHINDIRITBL  Substations upgraded and functional (Kafue Town) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value NO NO NO YES Date 30-Sep-2012 30-Sep-2015 28-May-2016 30-Jun-2017 PHINDIRITBL  Transmission Line capacity Increase (Volts, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 220000.00 220000.00 220000.00 330000.00 Date 30-Sep-2012 30-Sep-2015 28-May-2016 30-Jun-2017 6/7/2016 Page 4 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Kafue-Muzuma-Victoria Falls Regional Transmission Line Reinforcement Project (P124351) PHINDIRITBL  Substations Constructed and functional (Livingstone) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value NO NO NO YES Date 30-Sep-2012 30-Sep-2015 28-May-2016 30-Jun-2017 PHINDIRITBL  Substation Upgraded and functional (Muzuma) (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value NO NO NO YES Date 30-Sep-2012 30-Sep-2015 28-May-2016 30-Jun-2017 Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P124351 IDA-50900 Effective XDR 37.10 37.10 0.00 19.93 17.17 54% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P124351 IDA-50900 Effective 15-May-2012 07-Sep-2012 06-Dec-2012 31-Dec-2015 30-Jun-2017 Cumulative Disbursements 6/7/2016 Page 5 of 6 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Kafue-Muzuma-Victoria Falls Regional Transmission Line Reinforcement Project (P124351) Restructuring History Level 2 Approved on 09-Oct-2015 Related Project(s) There are no related projects. 6/7/2016 Page 6 of 6 Public Disclosure Copy