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: 10 | ARCHIVED on 13-Dec-2018 | ISR34984 | Implementing Agencies: Department of Petroleum and Energy, PNG Power Limited (PPL), Department of National Planning and Monitoring 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 remain Moderately Unsatisfactory for both implementation progress (IP) and progress towards the development objective (DO) due to the delays experienced to date within both the Ministry of Information Communication Technology and Energy formerly Department of Petroleum and Energy (DPE) and PNG Power Limited (PPL) components. However, there is progress towards the development objective through (i) an improved framework for electrification: the National Electrification Rollout Plan (NEROP) has been prepared and submitted to Cabinet by the sector Minister for approval and (ii) the technical assistance provided for the development of the Naoro Brown Hydropower project (NBHP), approved by Cabinet in April 2018, and for which it is expected a tender to attract private sector investment would be launched in 2019. 12/13/2018 Page 1 of 5 The World Bank Implementation Status & Results Report PNG Energy Sector Development Project (P101578) Despite implementation delays there is positive progress. Disbursements stand at 70 percent of project funds and commitments stand at 90 percent. The project continues to experience financial management and procurement delays, but some improvements have been noted in the areas over the last six months. 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 National Energy Policy and rural electrification strategy finalised by the DPE following participato IN00649844 ►Identified policies and strategy completed (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No -- No Yes Date 05-Dec-2013 -- 30-Nov-2018 31-Jul-2019 Significant gaps in renewable and rural electrification policy and strategy framework. Comments: Financing Structure for the Naoro Brown hydropower project is approved by government IN00649809 ►Financing for the Naoro Brown Hydropower project is at an advanced stage (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target 12/13/2018 Page 2 of 5 The World Bank Implementation Status & Results Report PNG Energy Sector Development Project (P101578) Value No -- No Yes Date 22-Aug-2013 -- 30-Nov-2018 28-Jun-2019 Financing at advanced stage Comments: Overall Comments PDO There has been delays in the project implementation due to weak capacity and ownership within implementing agencies. Intermediate Results Indicators by Components NBHPP consultation process progress results in decisions that responds to concerns of women and men IN00583670 ►Naoro Brown Hydropower Project (NBHP) consultation process progresses in a way that results in decisions that responds to the interests and concerns of women & men in the NBHP area (Comp. 2). (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 22-Jan-2013 14-May-2018 14-May-2018 31-Jul-2019 Adhoc consultations: lack of understanding of land ownership in potentially affected areas Comments: Elements of rural electrification strategy prepared IN00583673 ►Elements of Rural electrification strategy prepared (Component 1) (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 22-Jan-2013 25-Sep-2017 25-Sep-2017 31-Jul-2019 IN00583674 ►Strategic Environmental and Social Assessment (SESA) completed as part of NEROP (Component 1) (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 22-Jan-2013 25-Sep-2017 25-Sep-2017 31-Jul-2019 IN00583675 ►Improved GoPNG institutional capacity in the energy sector to support future investment in rural and renewable energy (Component 1) (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes 12/13/2018 Page 3 of 5 The World Bank Implementation Status & Results Report PNG Energy Sector Development Project (P101578) Date 22-Jan-2013 25-Sep-2017 25-Sep-2017 31-Jul-2019 IN00583676 ►Improved institutional capacity at PPL related to preparation and planning for hydropower development (Component 2) (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No No No Yes Date 22-Jan-2013 14-May-2018 14-May-2018 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 4.81 1.94 71% 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 12/13/2018 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 12/13/2018 Page 5 of 5