Public Disclosure Copy The World Bank Implementation Status & Results Report Kali Gandaki A Hydropower Plant Rehabilitation Project (KGAHPRP) (P132289) Kali Gandaki A Hydropower Plant Rehabilitation Project (KGAHPRP) (P132289) SOUTH ASIA | Nepal | Energy and Mining Global Practice | IBRD/IDA | Specific Investment Loan | FY 2013 | Seq No: 3 | ARCHIVED on 06-Feb-2015 | ISR16936 | Implementing Agencies: Nepal Electricity Authority Key Dates Key Project Dates Board Approval date:15-May-2013 Effectiveness Date:31-Dec-2013 Planned Mid Term Review Date:-- Actual Mid-Term Review Date:31-Aug-2015 Original Closing Date:30-Jun-2017 Revised Closing Date:30-Jun-2017 Project Development Objectives Project Development Objective (from Project Appraisal Document) The objective of the proposed project is to improve the reliability of power supply of Kali Gandaki A Hydropower Plant through rehabilitation and safety measures and to and improve the response capacity of Nepal in case of an emergency. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Component A: Civil Works:(Cost $9.35 M) Component B: Electro-Mechanical Works:(Cost $16.72 M) Component C: Technical Assistance & Capacity Building:(Cost $5.04 M) Component D: Contingent Emergency Response Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Moderately Satisfactory  Moderately Unsatisfactory Overall Implementation Progress (IP)  Moderately Satisfactory  Moderately Unsatisfactory Overall Risk Rating  --  Moderate 2/6/2015 Page 1 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Kali Gandaki A Hydropower Plant Rehabilitation Project (KGAHPRP) (P132289) Implementation Status and Key Decisions The project was approved by the Board on May 15, 2013. The project became effective on December 31, 2013. The Implementation Progress rating is, “Moderately Unsatisfactory”. Overall performance with relation to environmental and social safeguards. NEA has not started to implement the action plan related to safeguards, primarily due to the delay in implementation. The internal administrative issues between the two Departments have reached to an agreement and now the Environmental and Social Studies Department (ESSD) of NEA has been entrusted with the responsibility of establishing an Environmental and Social Management Unit (ESMU). The ESSD will now initiate the procurement of consulting services for implementing the ESMP which may take 2-3 months as informed by the Manager of ESSD. The mission recommended the KGAHPRP to expedite the procurement process. In spite, of continuous reminders the project has not been able to make any progress in the three main legacy issues which should have been proactively taken up and completed the project itself. The issue regarding the demolition of the IGL camp is still pending and the project informed that the estimation for demolition work is completed and will be contracted out in near future with other packages. There is no progress related to the disposal of e-wastes at Thulobagar. The Bank recommended the Project to involve and use the services of ESSD in addressing and monitoring the legacy issues. The only action completed from the last mission in Sep 2014c is the dissemination of key safeguard Documents (EA/SAP/EMP/VCDP etc.). Considering the incompletion of agreed actions listed out in the last mission, the rating for the environmental safeguard has been downgraded to moderately unsatisfactory.Because of delay in implementation of actions related to safeguard, the rating has been downgraded to “Moderately Unsatisfactory”. Monitoring and Evaluation. NEA has not submitted Q3 Q4 reports to the Bank so far. The rating has been downgraded to “Mildly Satisfactory”. Procurement, Financial Management and Disbursement Procurement. There has been little progress on contract awards and execution of contracts awarded since the last mission on September 21-15, 2014. Two major contracts (DC-1 and DC-2) awarded to TOSHIBA through direct contracting has been suspended with the NEA notice of “not to proceed” to TOSHIBA for its outstanding warranty obligations under contracts of previous Kali Gandaki Project. NEA has started dialogue to resolve the issues with TOSHIBA. NEA should resolve this issue soon so that the project is not hindered further by this outstanding issue. Out of 8 lots proposed in ICB-5, contract award for four lots could not be materialized. After further study, NEA determined that lot 7 was not necessary at this time, and ICB for re- bidding for three lots (Lot 2, 6 & 8) for this contract package has been published. Similarly, award of contract for ICB-4 could not materialize. Notice for rebidding for this contract package has been published December 13, 2014. The Project has missed all the planned deadlines for procurement actions shown in the original procurement plan of April 20, 2013. NEA should now submit a revised and updated procurement plan using online SEPA system. Selection of consultants for consulting services for dam Safety, Civil, Electro-Mechanical Works and capacity Building is also critical for the smooth execution of the project. Negotiations and finalization of negotiated draft contract was finalized on December 11, 2014. It is noted that award of large size contracts are in place or in process. Considering the overall implementation of the procurement plan, the procurement performance rating has been retained as “Moderately Satisfactory”. Financial Management. The mission noted that with the assigning of an Accountant for the project since September 2014, the financial management system for the project is being set up. In addition, it was agreed to also assign a Finance Officer for the project (as agreed during appraisal) by December 31, 2014 to ensure effective financial management. As the payments have started to be made from the Designated Account (DA), the project was advised to maintain the required ledgers for DA, IDA Credit and Statement of Expenditure payments by December 31, 2014. The internal audit has not been conducted for the project yet. The external audit for FY 2013/14 has also not been conducted yet for the project. The project was advised to ensure that the external audit is conducted as soon as possible for submitting the audit report on time by January 15, 2015. The mission also advised to ensure that internal audit is conducted every trimester for the project as per NEA policy. The details of other recommendations made for enhancing controls are provided in Annex E on FM. The approved budget for FY 2013/14 has not yet been received by the project, which needs to be obtained as soon as possible. Based on the assessment, the overall FM performance rating of the project has been continued as “Moderately Satisfactory”. Disbursement. Due to delay in project implementation, the expenditure rates for the project are low. Out of the total budget of NPR 627 million for FY 2013/14, only around 0.22% expenditures had been incurred. For FY 2014/15, only around 6.41% expenditures have been incurred till the first trimester-end out of the total budget of NPR 290.25 million. The expenditure rates are expected to improve in subsequent trimesters, particularly upon resolution of the issue with TOSHIBA. Apart from the initial deposit of USD 1 million (about 3.67% of the approved amount), no other disbursement has been made. As some payments have already been made from DA, the project was advised to request for DA replenishments in a timely manner. Based on above assessment, the integrated fiduciary performance rating for the project is “Moderately Satisfactory”. Risks Systematic Operations Risk-rating Tool 2/6/2015 Page 2 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Kali Gandaki A Hydropower Plant Rehabilitation Project (KGAHPRP) (P132289) Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  --  Low Macroeconomic  --  --  Moderate Sector Strategies and Policies  --  --  Moderate Technical Design of Project or Program  --  --  Low Institutional Capacity for Implementation and Sustainability  --  --  Moderate Fiduciary  --  --  Substantial Environment and Social  --  --  Moderate Stakeholders  --  --  Low Other  --  --  -- Overall  --  --  Moderate Results Project Development Objective Indicators PHINDPDOTBL  Hours of Non-scheduled outage reduced or Number of generation hours lost reduced (Hours, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 312.00 312.00 312.00 270.00 Date 15-May-2013 22-Apr-2014 22-Apr-2014 30-Jun-2017 PHINDPDOTBL  Dam Safety Plan approved and operationalized (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value None 0 0 Operationalized Date 15-May-2013 22-Apr-2014 22-Apr-2014 30-Jun-2017 PHINDPDOTBL  Generation Capacity of Hydropower constructed or rehabilitated under the project (Megawatt, Core) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 144.00 2/6/2015 Page 3 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Kali Gandaki A Hydropower Plant Rehabilitation Project (KGAHPRP) (P132289) Date 15-May-2013 22-Apr-2014 22-Apr-2014 30-Jun-2017 PHINDPDOTBL  Generation Capacity of Hydropower rehabilitated under the project (Megawatt, Core Breakdown) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 144.00 Date 15-May-2013 22-Apr-2014 22-Apr-2014 30-Jun-2017 Overall Comments Intermediate Results Indicators PHINDIRITBL  Headworks Modified (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value None None None Works Done Date 15-May-2013 22-Apr-2014 22-Apr-2014 30-Jun-2017 PHINDIRITBL  Improved uniformity of the velocity distribution in the desander basin (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 3.70 3.70 3.70 1.80 Date 15-May-2013 22-Apr-2014 22-Apr-2014 30-Jun-2017 2/6/2015 Page 4 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Kali Gandaki A Hydropower Plant Rehabilitation Project (KGAHPRP) (P132289) PHINDIRITBL  Dam Instrumentation (including Real-Time Sediment Monitoring) installed and operationalized (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 2.00 Date 15-May-2013 -- -- 30-Jun-2017 PHINDIRITBL  Maintenance works undertaken: slope stabilization, rock scour rehabilitation below dam and tail race improvements (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value None None None Completed Date 14-May-2013 22-Apr-2014 22-Apr-2014 30-Jun-2015 PHINDIRITBL  Operation Manual designed and implemented (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value None None None Operationalized Date 14-May-2013 -- -- 30-Jun-2015 PHINDIRITBL  Number of NEA empolyees trained for hydropower operations and management (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 60.00 Date 14-May-2013 22-Apr-2014 22-Apr-2014 30-Jun-2016 2/6/2015 Page 5 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Kali Gandaki A Hydropower Plant Rehabilitation Project (KGAHPRP) (P132289) PHINDIRITBL  Main Inlet Valves modified and repaired (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 3.00 Date 15-May-2013 -- -- 30-Jun-2017 PHINDIRITBL  Trash rack raking machine supplied and fitted (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 1.00 1.00 2.00 Date 15-May-2013 22-Apr-2014 22-Apr-2014 30-Jun-2017 PHINDIRITBL  Maximum water level difference between intake and desander during the monsoon decreased (Meter(m), Custom) Baseline Actual (Previous) Actual (Current) End Target Value 3.00 3.00 3.00 1.00 Date 15-May-2013 22-Apr-2014 22-Apr-2014 30-Jun-2017 PHINDIRITBL  Syren system extended and operational (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 3.00 Date 15-May-2013 22-Apr-2014 22-Apr-2014 30-Jun-2017 2/6/2015 Page 6 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Kali Gandaki A Hydropower Plant Rehabilitation Project (KGAHPRP) (P132289) PHINDIRITBL  Boats and fishnet handed over to Bote communities (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 2.00 Date 14-May-2013 22-Apr-2014 22-Apr-2014 30-Jun-2015 PHINDIRITBL  Fish Hatchery scaled-up with additional ponds and water filtration unit (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 4.00 Date 15-May-2013 22-Apr-2014 22-Apr-2014 30-Jun-2017 Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P132289 IDA-52460 Effective XDR 18.20 18.20 0.00 0.65 17.55 4% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P132289 IDA-52460 Effective 15-May-2013 11-Sep-2013 31-Dec-2013 30-Jun-2017 30-Jun-2017 Cumulative Disbursements 2/6/2015 Page 7 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Kali Gandaki A Hydropower Plant Rehabilitation Project (KGAHPRP) (P132289) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 2/6/2015 Page 8 of 8 Public Disclosure Copy