Document of The World Bank Report No: 74824-YE RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF RY-RURAL ENERGY ACCESS PROJECT GRANT NO. H4900-RY BOARD APPROVAL DATE: MAY 19, 2009 TO THE REPUBLIC OF YEMEN APRIL 23, 2013 This document has a restricted distribution and may be used by the recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS (Exchange Rate Effective April 1, 2013) Currency Unit = YR (Yemeni Rial) 215.15YR = US$1 US$1 = SDR 0.67 FISCAL YEAR July 1 - June 30 ABBREVIATIONS AND ACRONYMS AfD Agence Franqaise de D6veloppement DED German Development Service EIRR Economic Internal Rate of Return ESMP Environment and Social Management Plan GARE General Authority for Rural Electrification GEF Global Environment Facility GoY Government of Yemen IDA International Development Association IsDB Islamic Development Bank LPG Liquefied Petroleum Gas PDO Project Development Objectives PEC Public Electricity Corporation PMU Project Management Unit REAP Rural Energy Access Project RESP Rural Electricity Service Provider RHH Rural Households SHS Solar Home Systems ZBIL Bilateral Agencies Regional Vice President: Inger Andersen Country Director: Hartwig Schafer Sector Director: Junaid Kamal Ahmad Sector Manager: Charles Joseph Cormier Task Team Leader: Jianping Zhao REPUBLIC OFYEMEN RURAL ENERGY ACCESS PROJECT CONTENTS DATASHEET Page A. SUMMARY ............................................................................................................... 1 B. PROJECT STATUS ................................................................................................. 1 C. PROPOSED CHANGES ....................................................................................... 2 D. APPRAISAL SUMMARY .................................................................................... 8 Annex 1: Results Framework and Monitoring ........................................................... 9 Annex 2: Revised Procurement Plan......................................................................... 11 Annex 3: Disbursement Forecast ................................................................................ 17 Annex 4: Implementation Plan .................................................................................. 18 Restructuring Status: Draft Restructuring Type: Level one Last modified on date : 04/23/2013 1. Basic Information Project ID & Name P092211: RY-Rural Energy Access Project Country Yemen, Republic of Task Team Leader Jianping Zhao Sector Manager/Director Charles Joseph Cormier Country Director Hartwig Schafer Original Board Approval Date 05/19/2009 Original Closing Date: 06/30/2015 Current Closing Date 06/30/2015 Proposed Closing Date [if applicable] 06/30/2017 EA Category B-Partial Assessment Revised EA Category B-Partial Assessment-Partial Assessment EA Completion Date 03/30/2009 Revised EA Completion Date 2. Revised Financing Plan (US$m) Source Original Revised AFDB 47.10 47.10 BORR 11.10 17.80 DED 3.50 0.00 IDAT 25.00 25.00 IDB 25.40 25.40 ZBIL 5.00 0.00 Total 117.10 115.30 3. Borrower Organization Department Location Republic of Yemen Yemen, Republic of 4. Implementing Agency Organization Department Location Ministry of Energy and Electricity Yemen, Republic of 1 5. Disbursement Estimates (US$m) Actual amount disbursed as of 04/23/2013 0.40 Fiscal Year Annual Cumulative 2013 0.23 0.63 2014 7.10 7.73 2015 10.44 18.17 2016 5.41 23.58 2017 1.42 25.00 Total 25.00 6. Policy Exceptions and Safeguard Policies Does the restructured project require any exceptions to Bank policies? N Does the restructured project trigger any new safeguard policies? If yes, please select from N the checklist below and update ISDS accordingly before submitting the package. 7a. Project Development Objectives/Outcomes Original/Current Project Development Objectives/Outcomes The development objectives of the Project are to: (i) improve electricity access of rural populations in the selected Project Area in a financially sustainable manner; and (ii) demonstrate the feasibility of increasing the access to electricity for rural households in off-grid areas through the implementation of solar home systems. 7b. Revised Project Development Objectives/Outcomes [if applicable] The development objective of the Project is to improve electricity access of rural populations in the selected Project Areas. 11  RURAL ENERGY ACCESS PROJECT RESTRUCTURINGPAPER A. SUMMARY 1. The current design of the Rural Energy Access Project (REAP) aims to establish community owned Rural Electricity Service Providers (RESPs) that are expected to charge a higher tariff than the nation-wide uniform tariff for residential consumers in each project areas in order to ensure they are financially sustainable. With the deteriorating socio-economic environment in Yemen since the uprising, this design is no longer feasible or acceptable to the local communities. Moreover, politically due to a deeply ingrained and influential tribal system, the set-up of the first RESP in Ibb faced significant challenges as a result of fears over higher tariff charges. The proposed restructuring includes: (i) amending the project development objective to reflect changes in project design; (ii) eliminating the on-lending arrangement to prevent indebting the RESPs; (iii) modifying or eliminating sub-components as needed to reflect the security situation in the country; (iv) extending the Closing Date to give sufficient time for full implementation; (v) revising the legal covenants in the Financing Agreement to ensure they are in line with the revised project design; and (vi) amending the results framework to reflect revised targets. B. PROJECT STATUS 2. An IDA Grant of SDR16.8 million (US$25 million equivalent) was approved on May 19, 2009 and declared effective on September 30, 2010. Effectiveness delays were mainly due to one condition of effectiveness which stipulated that an RESP in Ibb had to be established and staffed prior to effectiveness and which proved difficult to accomplish for the reasons cited above. The current project Closing Date is June 30, 2015. As of April 5, 2013, the project has only disbursed just over US$380,000 as an advance to the Designated Account made on March 3, 2011. 3. Project implementation has suffered setbacks. The procurement of the two consulting services (Engineering, Design and Construction Supervision, and Institutional Support for Grid Component) was launched in May 2010 and the contract award was approved by the Bank in December 2010. However, with the advent of the political crisis, the Project Management Unit (PMU) was unable to award the contracts at the time. The PMU has undertaken technical surveys for most of the project areas and the bid documents for the supply and erection packages of the first four project areas were provided to the Bank, Agence Frangaise de D6veloppement, (AfD), and the Islamic Development Bank (IsDB) for review in February 2011, at which point disbursements were suspended due to the unrest. The Bank lifted the disbursement suspension in January 2012 and IsDB followed thereafter. As of March 2013, AfD has still not lifted its suspension of activities in Yemen due to reasons not related to this project. 1 4. To date, no construction work has commenced due to the late start of procurement activities and the Bank's disbursement suspension. However, three key consulting service contracts have been signed and the consultants mobilized to assist with project implementation. The bids for two IDA financed procurement packages, estimated at about US$12 million, were issued and opened. The bid evaluation for the two packages are completed with contracts ready to be awarded and signed. 5. A formal decree was issued to establish the RESP in Ibb and staff it, thus meeting the effectiveness condition. However, the Ibb RESP is not yet fully operational. The RESP needs the support of the consultant for capacity building before it could be fully operational. The local community in Ibb refused to own and operate the RESP as local leaders knew that the tariff charged by the RESP would be much higher than the national uniform tariff currently charged by the state-owned Public Electricity Corporation (PEC). The ownership of the RESP in Ibb is still with the government, although it has an independent management structure. Hence, this restructuring is proposing to maintain the option of having community/consumer owned RESPs in areas where it is possible but otherwise the distribution assets would remain public-owned with an independent management structure. The details of the institutional set-up will be reflected in the Operations Manual to be revised within one month of the finalization of this restructuring. C. PROPOSED CHANGES * Project Development Objectives 6. The original PDOs are to: (i) improve electricity access of rural populations in the selected Project Area in a financially sustainable manner; and (ii) demonstrate the feasibility of increasing the access to electricity for rural households in off-grid areas through the implementation ofsolar home systems. 7. The project was designed such that the Republic of Yemen would on-lend to the General Authority for Rural Electrification (GARE) at an interest rate of one percent, repayable over 30 years, with a grace period of 10 years. In addition, GARE would on- lend to the RESPs at an interest rate of 3 percent, repayable over a 30-year period with a grace period of seven years. The consumer tariff was to be set at a higher level to ensure debt repayability and operating cost recovery by the RESPs. However the design envisaged a combination of subsidy measures, including low cost capital, cash support during operation, low bulk purchase tariff, etc. to keep the end-user tariff affordable to rural consumers. It was envisaged that PEC would sell electricity to the RESPs at a bulk tariff of about 2 RY/kWh, only a fraction of the cost of supply by PEC. With the proposed design changes under the Level I restructuring, the bulk tariff rate by PEC would substantially increase, but will remain below PEC's current cost of supply. The capital cost of the project would also be provided as a grant. The consumer tariff level, by covering operating costs, would ensure the financial sustainability of the RESPs, but would still be below the full cost of power generation, transmission and distribution. Thus, it is very difficult to demonstrate that electricity is provided in a financially 2 sustainable manner without government subsidy. Therefore, it is proposed that the PDOs be amended to read as follows: "improve electricity access of rural populations in the selected Project Areas" * Results/indicators 8. The current Project outcome and intermediate indicators will be amended to reflect the delays in project implementation as well as refined to capture changes to the components. The main objective for amending the project monitoring indicators is to ensure that they are clearly linked to the PDOs, aligned with actual implementation of the project activities and are measurable. The proposed changes are provided in Annex 1. * Components 9. While the components will remain the same, the proposed restructuring envisages minef-modifications to Component 1 and elimination of sub-components under Components 3. 10. Under Component 1: On-Grid Rural Electrification, two project areas (Abyan-1 and Lahj-2) are not expected to have a workable environment in the foreseeable future due to the security situation. The earmarked funds will be reallocated to Al-Hodeidah-3 (Al-Zahr) which is currently partially funded by IsDB. The number of project areas will be reduced from twelve to ten and the total households to benefit from the project will be reduced from 174,000 to about 107,000 (IDA about 24,000).1 Hence, it is proposed to amend Part A of the Schedule 1 to the Financing Agreement as follows: "Part A: On-Grid Rural Electrification Supply and installation of medium voltage transmission lines (at 33-kV and 11-kV), sub-stations, transformers, distribution materials including meters, and related civil works for on-grid rural electrification in the Project Areas to establish about 107,000 (IDA about 24,000) new connections through the carrying out of works and provision of goods and consultants' services." 11. Under Component 3: Institutional Support and Technical Assistance, it is proposed that the studies on Rural Energy and Liquefied Petroleum Gas (LPG) Supply Strategy are dropped, particularly since a number of studies have already been undertaken on rural and renewable energy under the GEF-funded Rural Electrification and Renewable Energy Development Project and also because LPG supply mainly lies with the Ministry of Oil and Natural Resources. Hence, it is proposed to remove paragraphs C.6 and C.7 in Part C (Institutional Support and Technical Assistance) of Schedule 1 of the Financing Agreement. 1 However, an additional 50,000 households could be connected with a small incremental cost (based on the results of the actual survey and technical study undertaken to determine the actual number of households to be connected with the available budget). 3 * Institutional arrangements 12. Schedule 2, Section I, Part A (Para. 4) in the Financing Agreement contains a clause indicating, "By no later than September 30, 2012, the Recipient shall cause the Project Implementing Entity to appoint an independent consultant to prepare an Environmental and Social Management Plan (ESMP) implementation review report". With the delays in project implementation, this restructuring proposes to change this text to read "By no later than September 30, 2014, the Recipient shall cause the Project Implementing Entity to appoint an independent consultant to prepare an ESMP implementation review report". 13. In addition, Schedule 2, Section I, Part B (Para. 1) of the Financing Agreement outlines the on-lending terms between the Republic of Yemen (Recipient) and GARE (Implementing Entity) at an interest rate of 1 percent, repayable at 30-years with a grace period of 10 years. Similarly, Section 1, Part A (Para. 3) under the Schedule of the Subsidiary agreements outlines the on-lending terms between GARE and the RESPs at an interest rate of 3 percent, repayable over a 30-year period with a grace period of seven years. The final burden of debt repayment is on the RESPs, and taking into account the low national tariff rate, it could be substantial. If the RESPs have to charge tariff rates which reflect the full cost of electricity supply in Yemen, the tariff rates would be significantly higher than those of PEC and would not be affordable to the consumers in rural areas. Even the previous design envisaged a combination of subsidy measures, including low cost capital, cash support during operation, low bulk purchase tariff, etc. to keep the end-user tariff affordable to rural consumers. The originally proposed financing structure is not feasible in Yemen's current economic context as well as in the context of the financial burden on PEC, which is already struggling. In view of the existing social and political environment, it is highly unlikely that rural households would be willing to pay much more than the current tariff rate. It would be sufficient that the end-user tariff could fully recover the bulk purchase cost and the operating expenditures of the RESPs. This restructuring therefore proposes that the on-lending agreement between GoY and GARE be terminated and be turned into a grant agreement. Grant agreements will be entered between GARE and RESPs and the financing of project activities will be undertaken on a grant basis. Without the burden of debt repayment, bulk purchase tariff from PEC could be increased from the originally envisaged 2 RY/kWh to about 5 RY/kWh, while the RESPs could still charge consumers the uniform national tariff with revenues fully covering operating expenditures. * Financing 14. The total project cost is reduced slightly from US$117.1 to US$115.3. The IDA financing envelope remains unchanged. With the proposed small adjustments to Components 1 and 3, and the more accurate costs for the two consulting contracts, the costs for the various components are adjusted slightly. Revised project costs are outlined in the table below. 4 Project Costs (US$ m) Funding Source Components/Activities Current Proposed IDA IsDB AfD GOY Component 1: On-grid Electrification Ibb-1 2.0 3.8 3.3 0.5 Taiz-4 9.7 8.3 7.6 0.7 Al-Hodeidah-3 (Al-Zahr) 0.0 4.5 3.9 0.6 Abyan-1 3.0 Lahi-2 1.7 Hajjah- 1 9.5 12.1 10.5 1.6 Amran- 1 6.9 7.6 6.6 1.0 Dhamar-1 10.0 10.4 9.0 1.4 Al-Mahweet-1 6.8 6.8 5.9 0.9 Sana'a- 1 9.0 5.6 4.9 0.7 Al-Hodeidah-3 11.8 11.1 9.6 1.5 Ad-Dhale-1 7.3 7.2 6.3 0.9 Al-Baida-2 3.5 5.5 4.8 0.7 CFL program 1.0 1.0 0.9 0.1 Component 2: Off-grid Electrification SHS Program 9.0 9.0 3.9 4.1 1.0 Component 3: Institutional Support and Technical Assistance PMU Operating Expenses 1.7 1.7 1.7 Incremental Operating Cost for 0.3 0.3 0.1 0.2 GARE Incremental Cost for RESPs 2.4 2.4 0.2 2.2 Capacity Building and Training 1.8 1.8 0.8 1.0 Consulting Services* 10.3 7.1 2.8 2.1 2.2 Contingencies Physical (5%) 4.7 4.0 1.2 1.3 1.5 0.55 Price (5%) 4.7 4.0 1.2 1.3 1.5 0.55 Total Cost and Financing 117.1 115.3 25.0 25.4 47.1 17.8 Required I I I * The revised cost for consulting service was lower as the studies on LPG and renewable energy are dropped. 5 * Status of co-financing 15. Anticipated funding for the project from the USAID and Government of Germany did not come through from the outset. Currently, the project is co-financed by AfD and IsDB as each agency is responsible for financing the construction of the distribution facilities in several designated areas and a predefined portion of the consulting contracts. The implementation of activities financed by IsDB has been progressing well. AID has not yet lifted suspension of its activities in Yemen. In the extreme case of a prolonged delay in lifting disbursement suspension or even cancelling of AfD's financing for the project, the components financed by AID would be dropped. Such an event will not affect the project components financed by IDA and IsDB, but would reduce the overall project impact as the total number of households connected to the grid would be decrease to about 52,000 and the total number of households served by SHS would be reduced from about 21,000 to 9,000. * Disbursement arrangements. 16. The disbursement arrangements will remain the same but this restructuring proposes that the disbursement condition under Schedule IV (B), "(b) under Category (1), unless the respective RESP for the service territories for which the on-grid installations are intended have been established in a manner satisfactory to the Association and the respective Sub-loan Agreements have been executed" be converted into a covenant. This will allow disbursements for construction to proceed in parallel with setting up the RESPs as the establishment of the RESPs with appropriate staffing and training is likely to take time. Hence, it is proposed that a covenant be added in the financing agreement to monitor the actual establishment of the RESPs. * Procurement 17. Although no changes will be made to the procurement arrangements agreed to during appraisal and which will remain in effect, the Procurement Plan has been updated to reflect the changes in components, contract amounts and revised implementation schedule. The revised Procurement Plan is provided in Annex 2. * Closing date 18. Since the project has already experienced extensive delays, first as a result of effectiveness delays and then as a result of the Bank's disbursement suspension, the implementation schedule of the project has been revised. The project closing date needs to be extended to allow for the completion of project activities. It is therefore recommended that the closing date be extended to June 30, 2017. The Audit Report for the year ending December 31, 2011 was submitted on December 16, 2012, which had been overdue since July 1, 2012. The audit report did not indicate any qualified opinion on the project financial statements. This will be the first extension of the project. 6 * Implementation schedule and disbursement forecast 19. As indicated above, due to the extensive delays experienced in both effectiveness and implementation, there is a significant lag in implementation progress. With the proposed extension of closing date, the implementation schedule for all project activities will be amended, with a revised disbursement forecast for the project provided in Annex 3 and a revised implementation plan provided in Annex 4. * Others changes * Model of RESPs 20. The project was originally designed such that the institutional framework for the grid-based rural electrification program would follow a community cooperative model implemented successfully in a number of other countries. RESPs owned and operated by local communities would be established in each project area. Heweve-Although this concept hadant-beea4u4ywas discussed and consulted with the local communities in the project areas,_t-The establishment of the Ibb RESP proved extremely difficult to implement, largely due to strong opposition from local community leaders due to concerns over higher tariff rates charged than those of PEC. Therefore it is proposed that the model of the RESP in each project area be kept flexible, i.e. in areas where it is possible, community-owned RESPs will be established but in areas where it proves to be difficult, the distribution entities would remain publicly-owned as part of the PEC-. The definition of RESP in the project's Operations Manual will be amended to reflect this. * Consumer Tariff 21. The project was designed such that consumer tariff levels in the project areas would take into consideration the affordability of the rural consumers as well as the financial sustainability of the RESP. Therefore it was envisaged that the average revenue rate would initially be YR9/kWh (the residential consumers in rural areas are currently paying 9 YR/kWh for consumption of 0-100 kWh/month and 19 YR/kWh for consumption above 100 kWh/month) and would gradually increase to YRI 3/kWh within the first six years. This rate is not much different from the uniform residential consumer tariff level applicable to all consumers connected to PEC's grid nation-wide. But such a rate policy would not be in line with the national electricity tariff policy and is not acceptable to the consumers in the project areas. Therefore it is proposed that the uniform national tariff rate be applied to consumers in the project areas irrespective of which model is adopted by the specific area. The adjustment of tariff level for the residential consumers would be addressed at the national level through policy dialogue with the government. * Financial Covenants 22. As GARE is designed to be a regulator rather than a commercial operating entity, the on-lending agreement between GoY and GARE will be turned into a grant agreement, and it is proposed that its financial covenants: (i) debt service coverage ratio to be at 7 least 1.55; and (ii) operating revenues earned during any fiscal year should be sufficient to cover total operating expenses by the second year of operation, be eliminated. * Risks 23. The overall risk rating for implementation is substantial. Yemen is undergoing political transition at this time, hence the risks of successfully implementing and completing this project depends on the course of the security situation in the country. In the interim, the Bank has taken precautions in terms of restructuring the project's focus areas to those that have remained stable through this transition. Moreover, unless electricity supply is expanded in the coming years, the benefits of the project will not be fully realized. The Bank has discussed supply constraints with the Ministry of Energy and has been informed that a number of new generation plants are expected to be commissioned over the medium term. Finally, while the project has experienced extensive delays from the onset due to extenuating circumstances, the PMU is experienced in World Bank policies and procedures and the consulting contracts awarded will further strengthen the technical assistance activities aimed at providing experienced consultants as well as training and capacity building activities. D. APPRAISAL SUMMARY * Economic analysis 24. A cost benefit methodology is employed to calculate the economic returns on this project. It is generally known that the Economic Internal Rate of Rate (EIRR) of rural electrification projects tend to be lower than 15 percent. The EIRR in the original PAD was estimated at 11 percent. In the restructured design of the project, the number of consumers is lower at 110,000 - three-fourths of them are households and the remaining are commercial enterprises. Households consume 200 kWh a month divided between lighting and appliances. We assume their willingness to pay for lighting is estimated to be 70 YR/kWh and for appliances at 50 YR/kWh. Commercial enterprises consume 750 kWh a month. For them, the coping cost of 90 YR/kWh in the form of running a diesel generator in the absence of electricity is considered. 25. The EIRR is estimated to be 10 percent. The project is not viable at the current tariff levels but given the enormous suppressed demand in Yemen, the opportunity cost of electricity is much higher. This analysis is a lower bound and only considers the difference in spending between alternative sources currently used by unconnected households. The benefits are much higher if quality of lighting is considered, as well as development impact on rural livelihood is appropriately quantified. The electrification of rural communities and households typically provides significant other benefits, including improved health and education conditions, and increased business opportunities, including for reduced labor for women, which are not monetized and accounted for in the calculation of the EIRR. 8 Annex 1: Results Framework and Monitoring REPUBLIC OF YEMEN Project Development Objective (PDO): (i) improve electricity access of rural populations in the selected Project Area in a financially sustainable manner; and (ii) demonstrate the feasibility of increasing the access to electricity for rural households in off-grid areas through the implementation of solar home system. Revised Project Development Objective: Improve electricity access of rural populations in the selected Project Areas D=Dropped Cumulative Target Values** Responsibility 2 C=Continue Unit of Baseline Data Source/ PDO Level Results Indicators* o Frequency for Data , N= New Measure 2009 2012 2013 2014 2015 2016 2017 Methodology Collection R=Revised Indicator One: Electricity access Y D % of rural households Indicator Two: Percentage of RESP GARE, operating costs of established N R % N/A N/A N/A 100 100 100 100 Annually financial RESP RESPs recovered reports Indicator Three: People 280,000 518,000 749,000 provided with access to Semi- electricity under the project by Y N Number 0 0 0 0 (IDA (IDA (IDA annually GARE reports GARE household connections - Grid (7 36,400) 133,000) 168,000) members per household assumed) Indicator Four: People provided with access to electricity under 45,500 22,500 147,000 the project by household Y N Number 0 0 0 0 Semi- GARE reports GARE connections - Off-grid (SHS) (IDA (IDA (IDA annually (7 members per household 21,000) 35,000) 63,000) assumed) Indicator Five: Direct Project Number TBD TBD TBD TBD TBD TBD TBD Beneficiaries (number) Y N Semi- GARE of which female (%) % TBD TBD TBD TBD BD TBD TBD annually INTERMEDIATE RESULTS Revised Intermediate Result (Component One): Intermediate Result indicator N N % 0 0 0 30 70 100 100 Quarterly GARE reports GARE One: Procurement Progress Intermediate Result indicator N N % 0 0 0 5 35 80 100 Quarterly GARE reports GARE Two: Construction Progress 9 Intermediate Result indicator Three: Distribution lines Y N KM 0 TBD TBD TBD TBD TBD TBD Quarterly GARE reports GARE constructed under the project Intermediate Result indicator 1 1 1 4 7 10 Three: Number of RESPs N R Number 0 Quarterly GARE reports GARE established and operational (IDA 0) (IDA 0) (IDA 1) (IDA 2) (IDA 3) (IDA 3) Intermediate Result indicator Four: Number of additional RHH N D Number with electricity supply Revised Intermediate Result (Component Two): Intermediate Result indicator One :Number of new RHH N D Number connected through SHS Intermediate Result indicator N N % 0 0 0 50 75 100 100 Quarterly GARE reports GARE Two: Procurement Progress Intermediate Result indicator N N % 0 0 0 20 30 65 100 Quarterly GARE reports GARE Three: Construction Progress 0 Revised Intermediate Result (Component Three): Intermediate Result indicator One: Capacity Strengthening for GARE * Internal structure re- 0 0 20 30 40 100 100 100 organized and staff in place N R Quarterly CARE reports CARE * Stafftrained 0 0 10 30 50 100 100 100 * Cost accounting system, procurement system and Yes/No No No Yes Yes Yes Yes Yes construction quality control system in place Intermediate Result indicator Two: Capacity Building for RESPs * Qualified staff in place and N N Yes/No No No Yes Yes Yes Yes Yes Quarterly GARE reports GARE trained * Operational manual, Yes/No No Yes Yes Yes Yes Yes Yes financial system and service standards in place Intermediate Result indicator Itrete sultt Cntracd N N Yes/No No No Yes Yes Yes Yes Yes Quarterly GARE reports GARE Three: Consultants Contracted1 10 Annex 2: Revised Procurement Plan Preparation Contract Completio Package/ Goods/ Method of Bid Bid Bid Award Contract n of Funding Reference Description of Works/ of Document Invitation Opening Decision Signed Contract Source No. Goods/ Works NCS Selection (Date) (Date) (Date) (Date) (Date) (Date) Works Dec 25, Feb 28, Jun 23, Supply & Installation ICB Nov 15, 2009 209 21 Apr 19, 2010 Jan 14, 2012 Planned of 33kV,11kV, L.V, 2009 2010 2010 IDA REAP/Ibb-1 and Services Sep 19, Jan 01, connection ICB May 18, 2012 Jul 26, 2012 Nov 18, 2012 Jul 25, 2014 Revised Equipments 2012 2013 Actual Works Sep 14, Jan 07, ICB Jun 01, 2010 Jul 11, 2010 Nov 03, 2010 Jul 30, 2012 Planned Supply & Installation 2010 2011 IDA REAP/Taiz-4 of 33kV and Sep 19, Jan 01, Substation ICB May 18, 2012 Jul 26, 2012 Nov 18, 2012 Jul 25, 2014 Revised Equipments 2012 2013 Actual Works Sep 14, Jan 07, ICB Jun 01, 2010 Jul 11, 2010 Nov 03, 2010 Jul 30, 2012 Planned Supply & Installation 2010 2011 IDA REAP/Taiz-4 of 11kV, L.V, and Sep 19, Jan 01, Services connection ICB May 18, 2012 Jul 26, 2012 Nov 18, 2012 Jul 25, 2014 Revised Equipments (1) 2012 2013 Actual Works Sep 14, Jan 07, ICB Jun 01, 2011 Jul 11, 2011 Nov 03, 2011 Jul 30, 2013 Planned Supply & Installation 2011 2012 IDA REAP/Taiz-4 of 11kV, L.V, and Sep 19, Jan 01, Services connection ICB May 18, 2012 Jul 26, 2012 Nov 18, 2012 Jul 25, 2014 Revised Equipments (2) 2012 2013 Actual REAP/Al- Supply & Installation Works May 11, Jul 15, Nov 07, IDA Hodeidah- of 33kV and ICB Apr 01, 2012 Sep 03, 2012 May 31, 2014 Planned 3(Al-zahr) Substation 2012 2012 2012 11 EquipmentsFe.8 Ap14Ju27 ICB Jan.25, 2013 Feb.18, Apr14, Jun 13, 2013 Feb 17, 2015 Revised 2013 2013 2013 Actual Works My1, Jl5,Nov 07, ICB Apr 01, 2012 May11,Sep 03, 2012 May 31, 2014 Planned REAP/Al- Supply & Installation 2012 2012 2012 IDA Hodeidah- of 11kV, L.V, and Feb.18, Apr 14, Jul 27, 3(Al-zahr) Services connection ICB Jan. 25, 2013 Jun 13, 2013 Feb 17, 2015 Revised Equipments 2013 2013 2013 Actual Works ICB Oct 01, 2012 Nov 10, Jan 14, Mar 05, 2013 May 09, Nov 30, 2014 Planned Supply & Installation 2012 2013 2013 REAP/Hajjah- of 33kV and AFD 1 Substan Sep 29, Nov 23, Mar 07, 1 Substation ICB Feb 08, 2011 Jan 22, 2013 Sep 28, 2014 Revised Equipments 2012 2012 2013 Actual Works ICB Oct 01, 2012 Nov 10, Jan 14, Mar 05, 2013 May 09, Nov 30, 2014 Planned Supply & Installation 2012 2013 2013 AFD REAP/Hajjah- of 11kV, L.V, and Sep 29, Nov 23, Mar 07, 1 Services connection ICB Feb 08, 2011 Jan 22, 2013 Sep 28, 2014 Revised Equipments (1) 2012 2012 2013 Actual Works ICB Oct 01, 2012 Nov 10, Jan 14, Mar 05, 2013 May 09, Nov 30, 2014 Planned Supply & Installation 2012 2013 2013 AFD REAP/Hajjah- of 11kV, L.V, and Sep 29, Nov 23, Mar 07, 1 Services connection ICB Feb 08, 2011 Jan 22, 2013 Sep 28, 2014 Revised Equipments (2) 2012 2012 2013 Actual Works ICB Oct 01, 2012 Nov 10, Jan 14, Mar 05, 2013 May 09, Nov 30, 2014 Planned Supply & Installation 2012 2013 2013 AFD REAP/Hajjah- of 11kV, L.V, and Sep 29, Nov 23, Mar 07, 1 Services connection ICB Feb 08, 2011 Jan 22, 2013 Sep 28, 2014 Revised Equipments (3) 2012 2012 2013 Actual REAP/Al- Supply & Installation Works Sep14, Jan 07, AFD of 33kV and ICB Jun 01, 2010 Jul 11, 2010 Nov 03, 2010 Jul 30, 2012 Planned Mahweet-1 Substation _2010 2011 12 EqimnsJan 01, Feb 25, Jun 09, ICB Dec 08, 2013 Apr 26, 2014 Dec 31, 2015 Revised 2014 2014 2014 Actual Works Sep 14, Jan 07, ICB Jun 01, 2010 Jul 11, 2010 Nov 03, 2010 Jul 30, 2012 Planned Supply & Installation 2010 2011 AFD REAP/Al- of 11kV, L.V, and Jan01, Feb25, Jun09, Mahweet-1 Services connection ICB Dec 08, 2013 Apr 26, 2014 Dec 31, 2015 Revised Equipments (1) 2014 2014 2014 Actual Works Sep 14, Jan 07, ICB Jun 01, 2010 Jul 11, 2010 Nov 03, 2010 Jul 30, 2012 Planned Supply & Installation 2010 2011 AFD REAP/Sana'a- of 11kV, L.V, and Jan01, Feb25, Jun09, 1 Services connection ICB Dec 08, 2013 Apr 26, 2014 Dec 31, 2015 Revised Equipments (1) 2014 2014 2014 Actual Works Dec 11, Feb 14, Jun 09, ICB Nov 01, 2010 Apr 05, 2011 Dec 30, 2012 Planned Supply & Installation 2010 2011 2011 AFD REAP/Sana'a- of 11kV, L.V, and Jan01, Feb25, Jun09, 1 Services connection ICB Dec 08, 2013 Apr 26, 2014 Dec 31, 2015 Revised Equipments (2) 2014 2014 2014 Actual Works Dec 16, Jan 15, Mar 15, ICB Nov 01, 2010 Jan 30, 2011 Apr 15, 2011 Planned Supply & Installation 2010 2011 2011 AFD REAP/Dhama of 33kV and Jun 30, Aug 24, Dec 06, r-1 Substation ICB Jun 06, 2013 Oct 23, 2013 Jun 29, 2015 Revised Equipments 2013 2013 2013 Actual WorksDec 11, Feb 14, Jun 09, ICB Nov 01, 2010 Apr 05, 2011 Dec 30, 2012 Planned Supply & Installation 2010 2011 2011 AFD REAP/Dhama of 11kV, L.V, and Jun 30, Aug 24, Dec 06, r-1 Services connection ICB Jun 06, 2013 Oct 23, 2013 Jun 29, 2015 Revised Equipments (1) 2013 2013 2013 Actual REAP/Dhama Supply & Installation Works Dec 11, Feb 14, Jun 09, AFD of 11kV, L.V, and ICB Nov 01, 2010 Apr 05, 2011 Dec 30, 2012 Planned r- Services connection 2010 2011 2011 13 Equipments (2) Jun 30, Aug 24, Dec 06, ICB Jun 06, 2013 Oct 23, 2013 Jun 29, 2015 Revised 2013 2013 2013 Actual Works Dec 11, Feb 14, Jun 08, ICB Nov 01, 2011 Apr 04, 2012 Dec 30, 2013 Planned Supply & Installation 2011 2012 2012 AFD REAP/Amran- of 33kV andSep 29, Nov 23, Mar 07, 1 Substation ICB Feb 08, 2011 Jan 22, 2013 Sep 28, 2014 Revised Equipments 2012 2012 2013 Actual Works Dec 11, Feb 14, Jun 08, ICB Nov 01, 2011 Apr 04, 2012 Dec 30, 2013 Planned Supply & Installation 2011 2012 2012 AFD REAP/Amran- of 11kV, L.V, and 1 Services connection ICB Feb 08, 2011 Jan 22, 2013 Sep 28, 2014 Revised Equipments (1) 2012 2012 2013 Actual Works Dec 11, Feb 14, Jun 08, ICB Nov 01, 2011 Apr 04, 2012 Dec 30, 2013 Planned Supply & Installation 2011 2012 2012 AFD REAP/Amran- of 11kV, L.V, and Sep 29, Nov 23, Mar 07, 1 Services connection ICB Feb 08, 2011 Jan 22, 2013 Sep 28, 2014 Revised Equipments (2) 2012 2012 2013 Actual Works Sep 28, Jan 21, ICB Jun 15, 2010 Jul 25, 2010 Nov 17, 2010 Aug 13, 2012 Planned Supply & Installation 2010 2011 IDB REAP/Addala- of 11kV, L.V, and Sep 29, Nov 23, Mar 07, 1 Services connection ICB Feb 08, 2011 Jan 22, 2013 Sep 28, 2014 Revised Equipments (1) 2012 2012 2013 Actual Works Sep 28, Jan 21, ICB Jun 15, 2010 Jul 25, 2010 Nov 17, 2010 Aug 13, 2012 Planned Supply & Installation 2010 2011 IDB REAP/Addala- of 11kV, L.V, and Sep 29, Nov 23, Mar 07, 1 Services connection ICB Feb 08, 2011 Jan 22, 2013 Sep 28, 2014 Revised Equipments (2) 2012 2012 2013 Actual REAP/Al- Supply & Installation Works Jan 10, Mar 16, Jul 09, IDB of 11kV, L.V, and ICB Dec 01, 2010 May 05, 2011 Jan 29, 2013 Planned Baida-2 Services connection 2011 2011 2011 14 Equipments (1) Jun 30, Aug 24, Dec 06, ICB Jun 06, 2013 Oct 23, 2013 Jun 29, 2015 Revised 2013 2013 2013 Actual Works Sep 24, Nov 28, Mar 22, ICB Aug 15,2011 Jan 17, 2012 Oct 13, 2013 Planned Supply & Installation 2011 2011 2012 REAP/Al- of 33kV and Ar1, Jl0,Oct 21, IDB GEPA- o 3VadIB Mar 21, 2012 Apr 14, Jul 09, Sep 07, 2012 Ot2, May 14, 2014 Revised Hodeidah-3 Substation 2012 2012 2012 Equipments Mar 26, 2012 Apr 14, Actual 2012 Works Sep 24, Nov 28, Mar 22, ICB Aug 15,2011 Jan 17, 2012 Oct 13, 2013 Planned Supply & Installation 2011 2011 2012 IDB REAP/Al- of 11kV, L.V, and ICB Apr 14, Jul 09, Oct 21, Revised Hodeidah-3 Services connection 2012 2012 2012 Equipments (1) Mar 26, 2012 Apr 14, Actual 2012 Works Sep 24, Nov 28, Mar 22, ICB Aug 15,2011 Jan 17, 2012 Oct 13, 2013 Planned Supply & Installation 2011 2011 2012 REAP/Al- of 11kV, L.V, and Apr 14, Jul 09, Oct 21, Revised Hodeidah-3 Services connection 2012 2012 2012 Equipments (2) Mar 26, 2012 Apr 14, Actual 2012 Planned Goods IDA REAP/SHSG1 Supply and Delivery ICB Jan 15, 2013 F 08, M2 25, May 24, 2013 08, Feb 03, 2014 Revised of SHS Lotl Goods 2013 2013 2013 Actual Planned Goods AFD REAP/SHSG2 Sp Sln Lo2 Ds ICB Jan 15, 2013 F 08, M2 25, May 24, 2013 08, Feb 03, 2014 Revised oSHLo2Gds2013 2013 2013 Actual Planned GOY REAP/SHSW Installation of SHS Works 15 1 (Lot-1 &Lot-2) Jun 15, Jul 30, Nov 17, ICB May 22, 2013 Sep 28, 2013 Nov 12, 2014 Revised 2013 2013 2013 Actual Planned Goods AFD REAP/CFLG4 Supply and Delivery ICB Nov 12, 2012 Dec 06, Jan 20, Mar21, 2013 May 05, Dec 31, 2013 Revised ofCFL 2012 2013 2013 Actual 16 Annex 3: Disbursement Forecast Q1 Q2 Q3 Q4 Total 2013 0 0 0 627,501 627,501 2014 1,030,506 1,087,484 4,436,530 549,482 7,104,002 2015 4,246,080 1,884,155 1,884,155 427,498 10,441,888 2016 2,213,749 2,213,749 427,498 557,613 5,412,609 2017 427,000 430,000 427,000 130,000 1,414,000 Grand 25,000,000 Total 17 Annex 4: Implementation Plan 2012 2013 2014 2015 2016 2017 01 Q2 03 Q4 Q1 Q2 Q3 Q4 01 Q2 Q3 Q4 Q1 Q2 Q3 Q4 01 Q2 Q3 Q4 Q1 Q2 PART A -Construction of facilities Local Technical Study AJ-Hodeidah-3 Done lbb-1 Done Taiz-1 Done Ad-Dhale-1 Done Amran-1 Done Hajjah-1 Done A-Baida-2 DC Dhamar-1 Done Sana'a-1 DC Mahweet-1 DC AJ-Hodeidah-3(A-Zahr) Done Appointment of design and supervission consultants Short list preparation and approval Done RFP issued Done Proposal prep and submission Done proposal review and selection C-Appt Supply and Installation Contracts Preparation of bid document AJ-Hodeidah-3, Taiz-1 and lbb-1 Done Hajjah-1,Amran-1 and Addale-1 Done Dhamar-1 and Amran-1 Done A-Baida-2 Bid- Sana'a-1,Mahweet-l and A-Hodeidah-3(A-Zahr) Bid- Bidding period AJ-Hodeidah-3 BER Taiz-1 and lbb-1 BER Hajjah-1,Amran-1 and Addale-1 BER Dhamar-1 and A-Baida-2 BER Sana'a-1,Mahweet-l and A-Hodeidah-3(A-Zahr) BER Evaluation and contract award AJ-Hodeidah-3 C-sgd Taiz-1 and lbb-1 C-sgd Hajjah-1,Amran-1 and Addale-1 C-sgd Dhamar-1 and A-Baida-2 C-sgd Sana'a-1,Mahweet-l and AJ-Hodeidah-3(A-Zahr) C-sgd Construction work AJ-Hodeidah-3 Taiz-1 and lbb-1 Hajjah-1,Amran-1 and Addale-1 Dhamar-1 and A-Baida-2 Sana'a-1,Mahweet-l and A-Hodeidah-3(A-Zahr) Supply Contracts(CFL) Preparation of bid document Bid- Bidding period BER Evaluation and contract award C-sgd Completion work 18 2012 2013 2014 2015 2016 2017 Q1 Q2 Q3 Q4 QI Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 QI Q2 Q3 Q4 Q1 Q2 PART B - FORMATION OF RESPs AND INSTITUTIONAL DEVELOPMENT Appointment of institutional development consultants Short list preparation and approval Done RFPissued Done Proposal prep and submission Done proposal review and selection C-Appt Establishmnet of RESPs and institutional development Preparation of utility procedures rules and other documentation For each Town provide a program as below: Preparatory work in town AJ-Hodeidah-3, Taiz-4 and lbb-1 To be determined based on recommendations of the institutional development consultants Hajjah-1,Amran-1 and Addale-1 Dhamar-1 and AJ-Baida-2 Sana'a-1,Mahweet-l and AJ-Hodeidah-3(AJ-Zahr) Establishment of RESP AJ-Hodeidah-3, Taiz-4 and lbb-1 Hajjah-1,Amran-1 and Addale-1 To be determined based on recommendations of the institutional development consultants Dhamar-1 and AJ-Baida-2 Sana'a-1,Mahweet-l and AJ-Hodeidah-3(AJ-Zahr) Appointment of personnel and Traning A-Hodeidah-3, Taiz-4 and lbb-1 Hajjah-1,Amran-1 and Addale-1 To be determined based on recommendations of the institutional development consultants Dhamar-1 and AJ-Baida-2 Sana'a-1,Mahweet-l and AJ-Hodeidah-3(AJ-Zahr) Take over of network and commencement of operations A-Hodeidah-3, Taiz-4 and lbb-1 Hajjah-1,Amran-1 and Addale-1 To be determined based on recommendations of the institutional development consultants Dhamar-1 and AJ-Baida-2 Sana'a-1,Mahweet-l and AJ-Hodeidah-3(AJ-Zahr) 19 OVERALL IMPLEMENTATION PROGRAM FOR REAP 2012 2013 2014 2015 2016 2017 Q1I Q2 Q3 Q4 Q1I Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Off- Grid Supply Contracts Appointment of design and supervission consultants Short list preparation and approval proposal review and selection C-Appt Preparation of bid document (Procurement program TBD after recommendations from off-grid consultant. Initial set of SHS will be procured). SHS Lot1 Bid- SHS Lot2 Bid-1 Bidding period SHS Lot1 BER SHS Lot2 BER Evaluation and contract award SHS Lot1 C-sgd SHS Lot2 C-sgd Completion(supply materiales) SHS Lot1 SHS Lot2 Instalation of SHS Contract Preparation of bid document Bid- Bidding period BER Evaluation and contract award C-sgd Construction work LEGEND DC: Design work completed and BOQ prepared SL:Consultant short list approved C-Appt:Consultant appointed and mobilization DR:Design review completed by consultant and BOQ confirmes for issue of bid document Bid -1:Bid document issued 20