The World Bank Implementation Status & Results Report Nigeria Distribution Sector Recovery Program (P172891) Nigeria Distribution Sector Recovery Program (P172891) AFRICA WEST | Nigeria | Energy & Extractives Global Practice | Requesting Unit: AWCW2 | Responsible Unit: IAWE4 IBRD/IDA | Program-for-Results Financing | FY 2021 | Team Leader(s): Muhammad Abba Wakil, Yadviga Viktorivna Semikolenova Seq No: 1 | ARCHIVED on 27-Jun-2021 | ISR46512 | Created by: Marie-Claudine Fundi on 28-Apr-2021 | Modified by: Marie-Claudine Fundi on 15- Jun-2021 Program Development Objectives PDO Table Program Development Objective (from Program Appraisal Document) The Program Development Objective is to improve financial and technical performance of the electricity distribution companies. Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO -- Satisfactory Overall Implementation Progress (IP) -- Satisfactory Implementation Status and Key Decisions The Board of Executive Directors of the World Bank approved financing for Nigeria Distribution Sector Recovery Program on February 4, 2021. The financing agreement is yet to be signed and made effective. Progress is being made with government counterparts in order to meet effectiveness conditions as soon as possible. Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed Not P172891 IBRD-92060 USD 500.00 500.00 0.00 0.00 500.00 0% Effective Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date Not P172891 IBRD-92060 04-Feb-2021 -- -- 30-Jun-2026 30-Jun-2026 Effective Program Action Plan Undergo in-depth internal control review (as part of NERC’s open book review or otherwise) and establish a Action Description framework to address identified risks Source DLI# Responsibility Timing Timing Value Status 6/27/2021 Page 1 of 9 The World Bank Implementation Status & Results Report Nigeria Distribution Sector Recovery Program (P172891) Prior to execution of DISCOs through Fiduciary Systems Other Shareholder Loan In Progress BPE Agreements Completion Measurement Provide copy of the report as well as evidence of a framework to address risks Comments Action Description Undergo 2nd in-depth internal control review (as part of NERC’s open book review or otherwise) Source DLI# Responsibility Timing Timing Value Status 3 years after the first in- depth review and DISCOs through Fiduciary Systems Other thereafter once every 3 Not Yet Due BPE years until program closure Provide copy of the report along with evidence of continued existence of a framework to address risks as well as Completion Measurement evidence of corrective action taken on key issues from the previous in-depth review Comments Board approved procurement regulatory framework that supports procurement core principles of economy, Action Description competition, transparency and integrity and practice that is embedded on good budget management Source DLI# Responsibility Timing Timing Value Status Prior to execution of DISCOs through Fiduciary Systems Other Shareholder Loan In Progress BPE Agreements Evidence of existence of procurement policy that supports procurement practice to achieve procurement core Completion Measurement principles of economy, competition, transparency and integrity in budget execution. Comments Action Description Ensure existing governance and anti-corruption framework incorporate the Program Source DLI# Responsibility Timing Timing Value Status Prior to execution of DISCOs through Fiduciary Systems Other Shareholder Loan In Progress BPE Agreements DISCOs confirm to PMU that their fraud and corruption / complaints redress mechanism have incorporated the Completion Measurement DISREP program within the specified time period Comments 6/27/2021 Page 2 of 9 The World Bank Implementation Status & Results Report Nigeria Distribution Sector Recovery Program (P172891) Commitment by DISCOs to implement IAPs, including all necessary fiduciary actions and safeguard actions, as Action Description specified in the ESSA Source DLI# Responsibility Timing Timing Value Status Prior to execution of Environmental and Social DISCOs through Other Shareholder Loan In Progress Systems BPE Agreements Completion Measurement Inclusion of agreed IAPs in BPE-DISCO loan agreements Comments Develop a protocol/standard that will serve for benchmarking environmental and social system and performance of Action Description DISCOs Source DLI# Responsibility Timing Timing Value Status Prior to execution of Environmental and Social BPE Other Shareholder Loan In Progress Systems Agreements Completion Measurement Document containing environmental and social benchmarks for DISCOs Comments Engage suitable Environmental and Social Risk Management Specialists (Consultants) as part of the Program Action Description Implementation Team in a manner that will be satisfactory to the World Bank Source DLI# Responsibility Timing Timing Value Status Prior to program Environmental and Social implementation/prior BPE, All DISCOs Other In Progress Systems on-lending to specific DISCOs Completion Measurement Letters of appointment of Consultants/ Specialists Comments Action Description Approval of individual DISCO PIPs by NERC Source DLI# Responsibility Timing Timing Value Status Prior to individual Other NERC Other DISCO participation in Completed the operation Completion Measurement NERC gives notice of PIP approval Comments PIP Approval was published on the NERC website on May 1, 2021 6/27/2021 Page 3 of 9 The World Bank Implementation Status & Results Report Nigeria Distribution Sector Recovery Program (P172891) 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 Substantial -- Substantial Technical Design of Project or Program Moderate -- Moderate Institutional Capacity for Implementation and High -- High Sustainability Fiduciary Substantial -- Substantial Environment and Social Substantial -- Substantial Stakeholders Substantial -- Substantial Other -- -- -- Overall Substantial -- Substantial Results PDO Indicators by Objectives / Outcomes Improved DISCO performance IN00987562 ►Reduction in DISCOs’ metering gap (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 100.00 -- 100.00 50.00 Date 22-Oct-2020 -- 28-Apr-2021 30-Jun-2026 Comments Percentage of metered customers IN00987565 ►Semi-annual electricity billed (Gigawatt-hour (GWh), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 10,947.00 -- 10,947.00 15,716.00 Date 22-Oct-2020 -- 28-Apr-2021 30-Jun-2026 Comments Semi-annual electricity billed Enabling diversification of commercial options for DISCOs to supply their demand IN00987563 6/27/2021 Page 4 of 9 The World Bank Implementation Status & Results Report Nigeria Distribution Sector Recovery Program (P172891) ►Semi-annual collection of billed electricity (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 66.00 -- 66.00 88.00 Date 22-Oct-2020 -- 28-Apr-2021 30-Jun-2026 Comments Semi-annual collection of billed electricity Strengthened corporate governance and transparency IN00987564 ►Compliance with NERC Code of Corporate Governance by DISCOs (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 52.00 -- 52.00 95.00 Date 22-Oct-2020 -- 28-Apr-2021 30-Jun-2026 Comments Semi-annual verification of DISCOs compliance with Code of Corporate Governance Intermediate Results Indicators by Results Areas Improved DISCO performance IN00987588 ►New customers connected to the network (Number) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 2,592,000.00 Date 22-Oct-2020 -- 28-Apr-2021 30-Jun-2026 Comments Number of new customers connected to the network IN00987591 ►Number of customer meters installed at unmetered customers (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 5,129,295.00 Date 22-Oct-2020 -- 28-Apr-2021 30-Jun-2026 Comments Number of customer meters installed at unmetered customers IN00987592 ►Operation of MDMSs in DISCOs (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No -- No Yes Date 22-Oct-2020 -- 28-Apr-2021 30-Jun-2026 6/27/2021 Page 5 of 9 The World Bank Implementation Status & Results Report Nigeria Distribution Sector Recovery Program (P172891) Comments Operation of MDMSs in DISCOs IN00987593 ►Number of new metered connections by DISCOs (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 100.00 Date 22-Oct-2020 -- 28-Apr-2021 30-Jun-2026 Comments Number of new metered connections by DISCOs (Metered Connection Score) IN00987594 ►Number of DISCOs tracking new metered connections to customers in Tariff Band A and B (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 11.00 Date 22-Oct-2020 -- 28-Apr-2021 30-Jun-2026 Comments Number of DISCOs tracking new metered connections to customers in Tariff Band A and B IN00987595 ►Number of DISCOs that have identified and quantified the gender gap within their customer base (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 4.00 Date 22-Oct-2020 -- 28-Apr-2021 30-Jun-2026 Comments Number of DISCOs that have identified and quantified the gender gap within their customer base IN00987596 ►The Consumer Assistance Fund designed to support vulnerable women and girls and female-headed households within DISCOs’ customer bases (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No -- No Yes Date 22-Oct-2020 -- 28-Apr-2021 31-Dec-2024 Consumer Assistance Fund designed to support vulnerable women and girls and female-headed Comments households within DISCOs’ customer bases IN00987597 ►Development of NERC guidance on addressing the gender gap within DISCOs’ customer bases (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No -- No Yes Date 22-Oct-2020 -- 28-Apr-2021 30-Jun-2026 Comments guidance on addressing the gender gap within DISCOs’ customer bases IN00987598 ►Number of grids with improved stability, reliability and/or capacity to reduce technical losses (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target 6/27/2021 Page 6 of 9 The World Bank Implementation Status & Results Report Nigeria Distribution Sector Recovery Program (P172891) Value 0.00 -- 0.00 11.00 Date 22-Oct-2020 -- 28-Apr-2021 30-Jun-2026 Comments Number of grids with improved stability, reliability and/or capacity to reduce technical losses IN00987599 ►Kilometers of medium voltage (MV) distribution lines rehabilitated by DISCOs (Kilometers, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 20,774.00 Date 22-Oct-2020 -- 28-Apr-2021 30-Jun-2026 Comments Kilometers of medium voltage (MV) distribution lines rehabilitated by DISCOs IN00987600 ►Reduction in transformer technical losses in existing distribution networks (Kilovolt-Amphere(KVA), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- 0.00 9,501,000.00 Date 22-Oct-2020 -- 28-Apr-2021 30-Jun-2026 Comments Reduction in transformer technical losses in existing distribution networks IN00987601 ►Development of NERC Guidance of Investment in Climate Resilient Infrastructure (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No -- No Yes Date 22-Oct-2020 -- 28-Apr-2021 30-Jun-2026 Comments Development of NERC Guidance of Investment in Climate Resilient Infrastructure Enabling diversification of commercial options for DISCOs to supply their demand IN00987587 ►Implementation of Management Information Systems (MIS) by DISCOs (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 10.00 -- 10.00 77.00 Date 22-Oct-2020 -- 28-Apr-2021 30-Jun-2026 Implementation of Management Information Systems (MIS) by DISCOs in terms of complete MIS packages Comments installed IN00987590 ►Amount of electricity supply sourced directly from GENCOs or from embedded generation (Megawatt hour(MWh), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.12 -- 0.12 0.60 6/27/2021 Page 7 of 9 The World Bank Implementation Status & Results Report Nigeria Distribution Sector Recovery Program (P172891) Date 22-Oct-2020 -- 28-Apr-2021 30-Jun-2026 Comments Amount of electricity supply sourced directly from GENCOs or from embedded generation Strengthened corporate governance and transparency IN00987586 ►Audited financial statements of DISCOs are published annually (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No -- No Yes Date 22-Oct-2020 -- 28-Apr-2021 30-Jun-2026 Comments Audited financial statements of DISCOs are published annually IN00987589 ►Number of qualified FGN representative appointed to DISCO Boards (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 -- 1.00 2.00 Date 22-Oct-2020 -- 28-Apr-2021 30-Jun-2026 Comments Number of qualified FGN representative appointed to DISCO Boards Disbursement Linked Indicators DLI_IND_TABLE ►DLI 1 Number of new metered connections by DISCOs (Intermediate Outcome, 69,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) FY26 Value 0.00 -- 0.00 100.00 Date -- -- 04-May-2021 -- Comments ►DLI 2 Kilometers of medium voltage (MV) distribution lines rehabilitated by DISCOs (Output, 96,600,000.00, 0%) Baseline Actual (Previous) Actual (Current) FY26 Value 0.00 -- 0.00 20,774.00 Date -- -- 04-May-2021 -- Comments ►DLI 3 Reduction in transformer technical losses in existing distribution networks (Intermediate Outcome, 96,600,000.00, 0%) 6/27/2021 Page 8 of 9 The World Bank Implementation Status & Results Report Nigeria Distribution Sector Recovery Program (P172891) Baseline Actual (Previous) Actual (Current) FY26 Value 0.00 -- 0.00 9,501,000.00 Date -- -- 04-May-2021 -- Comments ►DLI 4 Compliance with NERC Code of Corporate Governance by DISCOs (Intermediate Outcome, 34,500,000.00, 0%) Baseline Actual (Previous) Actual (Current) FY26 Value 20.00 -- 20.00 95.00 Date -- -- 04-May-2021 -- Comments ►DLI 5 Implementation of Management Information Systems by DISCOs (Intermediate Outcome, 48,300,000.00, 0%) Baseline Actual (Previous) Actual (Current) FY26 Value 10.00 -- 10.00 77.00 Date -- -- 04-May-2021 -- Comments 6/27/2021 Page 9 of 9