$ Report No: RES00077 RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF North Core/Dorsale Nord Regional Power Interconnector Project APPROVED ON 31-Oct-2018 TO Burkina Faso, Federal Republic of Nigeria, Republic of Benin, Republic of Niger Energy & Extractives Western And Central Africa Regional Vice President: Ousmane Diagana Regional Director: Franz R. Drees-Gross Country Director: Boutheina Guermazi Practice Manager: Kwawu Mensan Gaba Task Team Leader(s): Emmanuel Py, Regina N. Miller The World Bank North Core/Dorsale Nord Regional Power Interconnector Project (P162933) ABBREVIATIONS AND ACRONYMS AFD Agence Française du Développement AfDB African Development Bank BOAD Banque Ouest Africaine de Développement CEB Benin/Togo Generation and Transmission Power Utility (Communauté Electrique du Bénin) CLSG Ivory Coast, Sierra Leone, Liberia, and Guinea Power System Re-Development Project CMU Country Management Unit (of the World Bank) CTB Coastal Transmission Backbone CTTC Technical Committee of Commercial Transaction DA Designated Account DGE General Department of Energy (Direction Générale de l’Energie) E&S Environmental and Social ECOWAS Economic Community of West African States ESIA Environmental and Social Impact Assessment ESMP Environmental and Social Management Plan ECOWAS Economic Community of West African States EU European Union FA Financing Agreement FGN Federal Government of Nigeria FM Financial Management GoB Government of Benin H&S Health and Safety IDA International Development Association ITAP Integration and Technical Assistance Project (within the CLSG Project) KfW Kreditanstalt für Wiederaufbau km Kilometer kV Kilo Volt MoE Ministry of Energy M&E Monitoring and Evaluation MW MegaWatt NC North Core OE Owner’s Engineer PAP Project affected person PMU Project Management Unit PDO Project Development Objective PPA Power Purchase Agreement PPSD Procurement Plan Strategy Development PIM Project Implementation Manual PIU-NC Project Management Unit- North Core RAP Resettlement Action Plan RITA Regional Integration and Technical Assistance (Part of RESPITE P179267) The World Bank North Core/Dorsale Nord Regional Power Interconnector Project (P162933) SC Steering Committee (Energy Ministers of North Core countries> TA Technical Assistance TCN Transmission Company of Nigeria TSA Transmission Service Agreement WAPP West African Power Pool WB World Bank The World Bank North Core/Dorsale Nord Regional Power Interconnector Project (P162933) @#&OPS~Doctype~OPS^dynamics@restrhybridbasicdata#doctemplate BASIC DATA Product Information Operation ID Operation Name North Core/Dorsale Nord Regional Power P162933 Interconnector Project Product/Financing Instrument Geographical Identifier Investment Project Financing (IPF) Western and Central Africa Approval Date Current Closing Date 31-Oct-2018 15-Dec-2024 Original EA Category Partial Assessment (B) (PAD Approval Package-31 Oct 2018) Organizations Borrower Responsible Agency Burkina Faso, Federal Republic of Nigeria, Republic of Project Implementation Unit, WAPP Secretariat Benin, Republic of Niger @#&OPS~Doctype~OPS^dynamics@restrhybridoperationstatus#doctemplate OPERATION STATUS Project Development Objective (DO) Original Development Objective The Project Development Objectives are : (i) to increase the capacity to trade electricity between Nigeria, Niger, Benin and Burkina Faso, (ii) to reduce the cost of supply of electricity in Niger, Benin and Burkina Faso through increased regional energy trade, and (iii) to increase access to electricity in Burkina Faso. Disbursement Summary (in USD million) i The World Bank North Core/Dorsale Nord Regional Power Interconnector Project (P162933) Source of Funds Net Commitment Disbursed Undisbursed % Disbursed IBRD -- -- -- 0 IDA 465.52 205.22 237.72 44.08 Grants -- -- -- 0 Policy Waivers Does this restructuring trigger the need for any policy waiver(s)? No @#&OPS~Doctype~OPS^dynamics@restrhybridmpa#doctemplate @#&OPS~Doctype~OPS^dynamics@restrhybridmpa#doctemplate ii The World Bank North Core/Dorsale Nord Regional Power Interconnector Project (P162933) TABLE OF CONTENTS I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING ........................................................................................1 A. Introduction ...............................................................................................................................................................1 II. DESCRIPTION OF PROPOSED CHANGES ....................................................................................................................9 III. PROPOSED CHANGES ..............................................................................................................................................14 IV. DETAILED CHANGE(S) .............................................................................................................................................15 The World Bank North Core/Dorsale Nord Regional Power Interconnector Project (P162933) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. Introduction 1. This Restructuring Paper seeks management approval to introduce changes to the WAPP- North Core/Dorsale Nord Regional Power Interconnector Project (North Core Project, P162933) to advance and complete the construction of the interconnector, while also building the commercial readiness of the countries to benefit from the project in line with the project development objectives (PDOs). These changes would: (a) reallocate funds to cover the financial gap in Burkina Faso due to expired AFD’s financial agreements; (b) extend the financial agreements end date currently ending on December 15, 2024; (c) revise power purchase agreements (PPA) dated covenants for works in Burkina Faso and Niger for a signature two months prior to the new closing date of the Project; (d) add expenditures provision of Regional Project Implementation Unit (PIU) and Owner Engineer; (d) reallocate funds between disbursements categories to meet project emerging needs; and (e) revise the Results Framework to better reflect the project’s achievements. The proposed restructuring would not change any other aspects of the project, including the PDO and the implementation arrangements. Page 1 The World Bank North Core/Dorsale Nord Regional Power Interconnector Project (P162933) B. Project Description and Status Project Description 2. Original financing for the North Core Project was approved by the World Bank Board on October 31, 2018, and various sources of financing (IDA-63390, IDA-63400, IDA-63410, IDA-63420, IDA-D3910,IDA-D3920, IDA-D3930, IDA-D3940) became effective between March 27, 2019, and September 13, 2019. Project total cost of US$640.2 million has been financed by the World Bank (WB), the African Development Bank (AfDB), Agence Française de Développement (AFD), the European Union (EU) and the Federal Government of Nigeria (FGN). The WB provided financing of US$465.5 million equivalent to the four countries and WAPP, covering 73 percent of the total project cost. PDOs are: (i) to increase the capacity to trade electricity between Nigeria, Niger, Benin and Burkina Faso; (ii) to reduce the cost of supply of electricity in Niger, Benin and Burkina Faso through increased regional energy trade; and (iii) to increase access to electricity in Burkina Faso. 3. Originally, the North Core Project had four components that focused on construction of the North Core Regional Interconnector (component 1), rural electrification along the North Core Interconnector in Burkina Faso (component 2), the institutional framework and project oversight (component 3) and providing TA for institutional capacity building to the WAPP and to SONABEL (component 4). A fifth component was added through restructuring in 2020, with reallocation of funds within the existing financing to finance the completion of the Benin section of the Coastal Transmission Backbone (CTB) (component 5). See list of past restructurings below: Date Main Restructuring Objective 1 Aug 2020 Add a fifth category to allocate funds for the completion of the Benin section of the Coastal Transmission Backbone (CTB) 2 Oct 2021 Remove the prior disbursement conditions for works to avoid further delays in the signature of contracts for construction of the transmission line 3 Jun 2023 Change categories to cover additional PIU incremental costs and Nigeria PAP compensation costs under the project to accelerate implementation 4. Component 1: Power Interconnection between Nigeria, Niger, Benin and Burkina Faso (US$500.0 million, of which IDA US$370.3 million). This component finances the 330 kV transmission line between the four North Core countries; the construction or extension of five sub-stations; and the installation of SCADA and fiber optic cable (OPGW) along the line. Once the interconnector is built, it will be owned and operated by the respective national utilities. (a) Sub-component 1.A: Construction of Transmission Lines (US$322.0 million, of which IDA US$278.8 million). This activity will construct 875 km of 330 kV lines to connect the four countries (66 km of 330 kV lines in Nigeria, 425 km in Niger, 381 km in Burkina Faso, and 12 km in Benin) and 24 km of 225 kV transmission lines for the ring around Ouagadougou in Burkina Faso. The main 330 kV transmission line will be capable of handling up to 605 MW. OPGW will also be installed along the line for control and communications and later commercialization of excess capacity. (b) Sub-component 1.B: Construction and Extension of Substations (US$168.7 million, of which IDA US$87.2 million). This sub-component will finance the extension of 2 sub-stations (Gourou Banda, Niger & Malanville, Benin) and construction of 3 sub-stations of 330 kV (Zabori, Niger; Ouagadougou South East, Burkina Faso; et Ouagadougou East, Burkina Faso), as well as providing financing for required compensation equipment in these North Core sub-stations and two additional existing sub-stations. Page 2 The World Bank North Core/Dorsale Nord Regional Power Interconnector Project (P162933) (c) Sub-component 1.C: Expansion and/or Rehabilitation of Dispatching Centers (US$9.3 million, of which IDA US$4.2 million). It will upgrade the capabilities of the existing SCADA systems in Burkina Faso (AfDB and AFD financing) and Benin-Togo (IDA financing), to allow the supervision of the existing National Load Dispatch Centers in Burkina Faso, Benin, Nigeria, and the WAPP Control Center.1 The US$ 4.2 million is included in the Malanville substation EPC contract, lot 2SS. 5. Component 2: Rural Electrification in Burkina Faso linked to the North Core Regional Interconnector (US$69.5 million, of which IDA US$53.4 million). These activities will provide communities in Burkina Faso with access to power from the Interconnector. A similar component of rural electrification will be financed by AfDB and EU in Niger, while the electrification along the line in the other two countries will be done as part of their national electrification agenda. (a) Sub-Component 2.A: Works to Provide Access along the Interconnector in Burkina Faso (US$62.7 million, of which IDA US$46.6 million). This sub-component finances the reinforcement and extension of SONABEL’s (SONABEL being the Burkina Faso utility) network to provide access to nearby populations, about 575,000 people in four eastern provinces. (b) Sub-Component 2.B: TA for Rural Electrification (US$1.5 million IDA). This sub-component finances studies to define: (i) reinforcement needed of SONABEL’s network; (ii) the least cost technology for each location; (iii) detailed design of the construction works; and (iv) associated environmental and social studies. (c) Sub-Component 2.C: Implementation of the environmental and social management plans (ESMP) and resettlement action plans (RAP) for Rural Electrification (US$1.5 million IDA). This sub-component finances compensations to project affected persons (PAPs), and the cost of the mitigation measures under the ESMPs. 6. Component 3: Institutional Framework and Project Oversight (US$60.8 million, of which IDA US$40.1 million) supports activities related to component 1: (a) Sub-component 3.A: Implementation of the ESMPs and RAPs (US$16.2 million, of which IDA US$16.2 million). covers the payments to PAPs in Niger, Benin, Nigeria and Burkina Faso. It will also finance the cost of the mitigation measures under the ESMPs. (b) Sub-component 3.B: Project Management and Oversight (US$44.6 million equivalent, of which IDA US$23.9 million) finances the North Core Project Implementation Unit (NC-PIU) functioning. It also finances the Owner’s Engineer (OE) to assist the PIU with the project management and supervision of all technical and safeguard-related aspects of the project. 7. Component 4: Strengthening Institutional Capacity for Regional Electricity Trade (US$10.0 million equivalent, of which IDA US$6.7 million) has two parts. The first IDA-financed part aims to strengthen the capacity of the North Core and other WAPP member countries, and the WAPP itself, to advance efficient regional integration of national energy markets and participation in regional electricity trade. The second AfDB-financed part focuses on strengthening the institutional and operational capacity of the electricity sector in Burkina Faso. 8. Component 5: Momé Hagou (Togo) – Sakété (Bénin) Interconnection (US$9.6 million of which IDA US$7.5 million). This component aims to complete the 330 kV Mome Hagou – Sakété section of the Coastal Transmission Backbone (CTB) with associated telecommunication equipment. It includes two sub-components: (a) Sub-component 5.A: Works (IDA US$6.9 million, KfW US$1.6 million, BOAD US$0.5 million) This includes: (i) construction of about 117 km of HV 330kV transmission line; (ii) extension of the Sakété substation; and (iii) design, procurement and installation of the telecommunication system in the Sakété Substation. 1A new National Load Dispatch Center to be built under separate AFD financing in Niger will facilitate supervision of the substations in Niger once it enters into operation. Page 3 The World Bank North Core/Dorsale Nord Regional Power Interconnector Project (P162933) (b) Sub-component 5.B: Project Oversight (IDA US$0.6 million equivalent). This finances the OE to assist the NC- PIU and the CEB2 team with overall project management and supervision. 9. The project is implemented by two Project Implementation Units (PIU). The NC-PIU is hosted in the WAPP Secretariat and responsible for the implementation of the regional components of the project (components 1, 3, 4, 5). It is based in Abuja (Nigeria) with local offices in Benin, Burkina and Niger. The SONABEL PIU is located in Ouagadougou and is in charge of implementing the rural electrification component along the North Core interconnector in Burkina Faso (component 2). Project Status 10. After an initial delay due to low quality bidding documents, three OP 7.30 freezes (two in Burkina Faso, and one in Niger), COVID-19 and security challenges in the region, physical construction in all countries is in progress. Overall, physical work on the project is at 36 percent, disbursement stands at US$204 million equivalent (46 percent) as of September 17, 2024, and is expected to increase significantly since OP 7.30 is no longer in effect in Niger. 78 percent of funds have been committed, but the percentage is expected to increase with the restructuring due to the addition of AFD lots, reaching 90 percent. Overall, project implementation is advancing despite some challenges mentioned above, respecting the work schedule and quality of work, and achievement of development objectives and implementation progress are currently rated Moderately Satisfactory. There are no overdue audits or interim financial reports, and FM rating is Moderately Satisfactory. Safeguards compliance is rated Moderately Satisfactory. Regional Components 11. Component 1: Power Interconnection. For Benin, the 12km line and substation work are 42 percent completed, all PAPs are compensated, and works are planned to be completed early 2025. For Nigeria, 40 percent of works for the 66 km line is completed and are expected to be fully completed by early 2025, and all PAPs have been compensated. For Burkina, 25 percent works is completed, and 25 percent of PAPs are compensated. For Niger, construction restarted in May 2024, but overall works are estimated to be around 32 percent completed due to progress made prior to the start of OP 7.30 in July 2023. Due to the linearity of the 899 km line, PAP implementation is proceeding by segment to ensure works and compensation payments are well coordinated. 12. Component 3: Institutional Framework/Project Oversight: The NC-PIU is fully staffed and local offices to support the construction locally are established. E&S safeguard teamwork is well established, and local committees were established in all countries to support the RAP, ESIA and ESMP implementation. All works and the OE’s contracts include a plan by the contractors to ensure the security of their personnel, equipment, and the infrastructure, with the cost covered by the project. 13. Component 4: Strengthening Institutional Capacity for Regional Electricity Trade. Early activities include Preparatory Studies for the Median Core Project, led by the WAPP, under the West African Power Pool (WAPP) - Ivory Coast, Liberia, Sierra Leone, and Guinea (CLSG) Power Interconnection Project Grant (P113266). The Median Core Preparatory Study underwent some security challenges, and the contractual framework was reworked in Nigeria and Ivory Coast. The Median Core Preparatory study is expected to be completed by the end of 2024. 2 Benin/Togo Generation and Transmission Power Utility (Communauté Electrique du Benin). Page 4 The World Bank North Core/Dorsale Nord Regional Power Interconnector Project (P162933) 14. Component 5: Coastal Transmission Backbone-(CTB) in Benin. The line and substation were completed in July 2022 and electricity is now trading. Telecom installation work was completed in March 2024 and the line is consequently fully operational. The component is fully disbursed and trade between Nigeria, Benin, Togo, Ghana and Cote d’Ivoire has increased. Rural Electrification in Burkina Faso (Component 2) 15. In regard to the SONABEL PIU it is fully staffed and functional, all lot contracts were signed and are effective, and implementation of all RAPs for the rural electrification component as completed. Construction under this Rural Electrification component started for all lots and is estimated to be 40 percent completed and 39% disbursed. C. Rationale for Restructuring 16. During the May 2024 mission, all stakeholders reassessed the progress of the project since its inception and determined the required changes to ensure accelerated pace of project implementation accelerates to recoup delays (mostly due to COVID-19 and three OP 7.30 suspensions) and complete the construction. Among other measures, participating countries requested to reallocate funds across different disbursement categories to cover PIU incremental costs and the financial gap in Burkina due to expired AFD financial agreements, and to extend the end date of the financial agreements. , 17. Also, in its recent meeting, the Joint Meeting of the Steering Committee for the North Core Interconnector (composed of the four Ministers of Energy) recommended that the participating governments and WAPP submit requests for the above modifications. The request letters were respectively received on August 28, 2024, for Burkina Faso, August 28, 2024, for Niger, July 30, 2024, for Benin September 17, 2024 for Nigeria , and July 30, 2024 for WAPP. 18. Time extension. Following a review of the project planning with stakeholder, governments requested a time extension. For Benin (IDA-63400 & IDA-D3930), the government requested 15 months extension, but, since works will finish shortly, the team recommends a 9-month extension. 12 months was requested from Nigeria (IDA-63420), 15 months was requested from WAPP, Niger (IDA-63410 & IDA-D3940) and Burkina (IDA-63390 & IDA-D3920) in order to ensure full completion of the work, commissioning and transfer to the transmission service organizations (TSO). Once the time extension is processed, EPC contract extensions will be processed accordingly. Note that the extension request is mostly due to accumulated delays caused by COVID-19 and three OP 7.30 suspensions. We also want to mention the uncertainty surrounding lot 4A-TL (006/W-TL/WAPP-NC/2021) due to the worsening of security in the region. 19. Financing AFD lots in Burkina Faso. Financing of the North Core Project by the AFD was set up through Credit Agreement No. CBF 1301 01 U signed on March 12, 2019, between the Government of Burkina Faso and the AFD, and EU/AFD grant set up on the same date for the rural electrification component. Today, the commitments of the North Core Project within the framework of AFD financing are as follows: Regional Component Page 5 The World Bank North Core/Dorsale Nord Regional Power Interconnector Project (P162933) Titles Procurem Contracted Amendme Total Cumulative Balance Balance ent Plan Amount nts amount Disbursement € US$ € € € € € Lot 4-SS / 21,870,000 14,719,186 4,310,104 19,029,290 2,928,185 16 101 104 17,389,193 Ouagadougou South- East Post Lot 5-TL 7,380,000 5,460,276 543,882 6,004,158 1,794,702 4,209,456 4,546,213 Total 29,250,000 20,179,462 4,853,987 25,033,449 4,725,887 20,310,561 21,935,406 Rural Electrification Titles Procureme Contracted Amendment Total Cumulative Balance nt Plan Amount s amount in Disbursement US$ US$ US$ US$ US$ US$ Lot 1 ER 5,188,708 4,174,675 0 4,174,675 2,839,304 1,335,371 Lot 3 ER 5,188,708 3,848,026 0 3,848,026 622,890 3,225,136 Lot 8 ER 5,188,708 4,420,400 0 4,420,400 905 157 3,515,243 Communication 216,937 216,937 0 216,937 0 216,937 Social Audit 216,937 Not contracted 0 216,937 0 216,937 Total 16,000,000 12,660,038 0 12,876,975 4,367,351 8,509,624 *These tables represent the current contractual situation and does not include future provisions or financial analysis. For future provisions and financial analysis, see next table. 20. Overall, the Burkina Faso government decided not to extend AFD FAs on the North Core project. The AFD financing for Burkina Faso stopped disbursing since December 27, 2023, for the rural electrification component and March 12, 2024, for the regional component and. The situation exposes the overall Project to possible litigation, additional delays, and additional costs. As of June 2024, there is no overdue invoices for the regional component and overdue invoices for the rural electrification component included: LOT 3 1. 20/TELNIA/2024 from 05/02/2024 47 471 702 FCFA (paid by SONABEL in June 2024) 2. 15/TELNIA/2024 from 22/01/2024 89 310 800 FCFA (paid by SONABEL in June 2024) 3. 21/TELNIA/2024 from 29/02/2024 209 532 748 FCFA LOT 8 1. 001/FACT/BKF/2023 from 12/12/2023 115 745 155 FCFA 2. 001/FACT/BKF/2024 from 27/02/2024 101 831 538 FCFA 21. On the regional component, especially SINOHYDRO in charge of AFD financed lot 4-SS, the PIU and the Owner Engineer (OE) perceive that EPCs are hesitant to commit significant work resources and equipment even if they have not stopped construction. For AFD rural electrification investments, contractors for lot 3 and lot 8 EPCs have demobilized. For lot 1, the company is close to the completion of works, , has no pending invoices, and consequently, continues working. 22. The situation described above causes challenges to the project and a letter from the government of Burkina Faso requesting the WB to finance the above lots was received on June 7, 2024. In order to avoid EPC demobilization, on May 9, 2024, the SONABEL Board of Directors approved the temporary payment of outstanding invoices. It was agreed during the May 2024 mission that the SONABEL might be reimbursed by the World Bank for the invoices paid after completion of the project restructuring. Page 6 The World Bank North Core/Dorsale Nord Regional Power Interconnector Project (P162933) 23. Thanks to saving made on IDA funded contracts, due to low bidding prices than budgeted, the WB has the necessary funds to cover 4 out of 5 contracts. Consequently, we cannot finance the rural electrification lot 3 as of today. For lot 3, the WB remain open to find a solution with stakeholders and reevaluate the project financial situation in the future. With the current restructuring, a remaining balance of US$ 2.3 million will be left as a buffer in case of unexpected changes. Provision for Balance on Category in Balance to be disbursed on Provision for FX Surplus/(Deficit) Works CAT Contracts Balance of PVs other risks FA at 30.04.2024 Contracts net of PVs to date Changes Funds on Category without PVs $ $ $ $ $ $ BF 1 Goods, Services & Resettlement (Expired) 13,145 BF 2 Rural electricifcation 3,926,243 4,539,053 226,953 196,312 - 1,036,075 BF 3A Lots 4ATL & 4BTL 63,908,576 32,841,021 3,344,487 4,275,249 3,195,429 20,252,390 BF 3B Lots 2,4,5,6,9 24,209,135 15,892,515 1,210,457 7,106,164 BF 5 RAPs & FPMU 12,401,508 9,193,674 620,075 2,587,759 104,458,608 62,466,263 3,344,487 4,502,202 5,222,273 28,910,238 3A Lot 5-TL (AFD) 4,236,965 -4,236,965 3A 4-SS (AFD) - 16,990,253 -16,990,253 3B Lot 1 Rural Electrification (AFD) 1,335,371 66,769 -1,402,140 AFD Lots 3B Lot 3 Rural Electrification (US$3,225,136) 0 3B Lot 8 Rural Electrification (AFD) 3,515,243 175,762 -3,691,005 5 Communication 216,937 10,847 -227,784 5 RAP (not financing since not needed) 0 0 88,761,031 3,344,487 4,755,580 5,222,273 2,362,091 24. In terms of procurement, the Project Procurement Plan will be updated as direct selection contracts. The contract will require an amendment to change the financing origin from AFD to WB, add WB fraud and anti-corruption clauses, and the provisions concerning Sexual Exploitation and Abuse ( SEA) and Sexual Harassment (SH). Direct selection method is justified by the fact that these are existing contracts concluded within the framework of an acceptable competitive process. 25. In terms of environmental and social safeguards, as indicated in the financing agreement, the WB's policies applied to all AFD lots in Burkina Faso and therefore to the 5 AFD financed contracts . From 2014 to 2018, an ESIA accompanied by an ESMP as well as a RAP were completed in Burkina Faso. Following these reports, WB safeguards policies were applied including: environmental licenses, environmental monitoring by national environmental protection agencies (EPA), National Monitoring Committees, Grievance resolution committees, the grievance redress mechanism (GRM) updating of land inventories and the census of PAPs, the Environmental and Social Management Plan for Construction (ESMP-C), the Biodiversity Action Plan and supervision of the RAP resettlement process. As of March 2024, the RAP for the regional 5TL lot was approved by the WB and the RAP compensation report on a section of the 5-TL has just obtained the NO of the BM on April 9, 2024. For AFD lot 4SS, the land belonged to SONABEL, and no RAP was required. For the rural electrification lots, the RAP was also approved by the WB a year ago and the compensation reports for the three lots were completed. Similarly, the applicable ESIA and RAP were prepared, cleared and approved for the Nigeria section of the project. Following the delay in RAP implementation occasioned by the passage of time, the RAP was revised and implemented in 3 batches with RAP implementation completion report prepared and finalized. The project is also operationalizing its GRM with 88 RAP related grievances recorded, 83 resolved while 5 is pending resolution. 26. Additional PIU Functioning Cost. At the time of appraisal of the project, PIU costs were expected to be covered under the financing provided to WAPP. Since they were determined in 2018, inflation and delays in project implementation caused significant increase in the cost of running the PIU. Consequently, the WAPP grant has now been fully utilized and the PIU will not have enough funds to cover its operation cost until the new proposed closing date of the project. In light of the s funding, PIU cost of US$ 7 million was added as an eligible expenditure to WB Financing Agreements (FAs) in the 2023 restructuring. Due to lower-than-expected PIU cost, the PIU agrees that they have sufficient fund to Page 7 The World Bank North Core/Dorsale Nord Regional Power Interconnector Project (P162933) last until mid-2026, which provide sufficient provision in case the project extends further. Note that the project is expected to close Nigeria and Benin satellite office in early2025, and this will provide further savings. 27. On the Owner Engineer side, 71 percent of the cost is covered by the AfDB, and no change is therefore needed. 28. Reallocation Between Categories. A project analysis concluded that certain categories would have insufficient funds. For Burkina Faso, the funding of the additional five contracts from AFD require category fund changes. For Benin, the South Core line (component 5 of the project) is now completed, and unused fund will be reallocated. For WAPP, since the PPA did not disburse under this project, we are moving all funds to one category. 29. PPA Covenant. In 2021, disbursement conditions related to the signing of PPAs between the North Core countries were removed and replaced by dated covenants requiring that respective PPAs for Niger and Burkina be executed before December 5, 2022 (originally), then pushed to June 15, 2024, in the 2023 restructuring. Due to this new extension, the dated covenants will have to be extended with this restructuring to ensure international commercial contracting standards are met. PPAs are central to the project success and to ensure the financed transmission line is supported by power generation exporting electricity from Nigeria. The PPA dated covenants appearing in the Financing Agreements of Burkina and Niger will be amended to reflect an extension of the date by which the PPAs should be signed at a date 2 months prior to the new closing date of the project. 30. General Risks and Mitigation. The overall risk for the project is rated Substantial; the proposed restructuring will not affect this risk. The proposed approach increases the likelihood of achieving PDO in time, and also includes mitigation measures including dated covenants to reduce specific risks that may arise from this approach. Given the high environmental, social, security and political risk of developing transmission interconnections in the region, the project is closely monitoring the situation. 31. Risk of noncompliance with dated covenant on the signing of PPAs. Since the signature of PPAs has been removed as a disbursement condition in the 2020 restructuring, there is continued risk that the participating countries will not comply with the amended dated covenant. Remedial proposals to address the current non-compliant status of the Recipients to the dated covenant are: (i) a revised dated covenant for the signing of PPAs; (ii) a separate disbursement category for "works" and a reallocation of funds across the categories; and (iii) the revision of the result framework. 32. The proposed approach also includes several mitigation measures against the risk that PPAs will not be concluded before the transmission line enters operation, or that it will be concluded but will be based on contracts not conductive to efficient and sustainable trade. While signature of commercial contracts to trade electricity is ultimately a decision of buyers and sellers, the proposed strategy gives all parties sufficient time to prepare this first commercial transaction, which is complex. It also provides significant TA to all parties involved through the Regional Integration and Technical Assistance (RITA) grant (IDA funds to the WAPP under the Regional Emergency Solar Power Intervention [RESPITE] Project P179267) and, through the 2023 restructuring that included US$1.6 million for consultants to support the process. As originally planned in the PAD, it gives clear responsibilities to the Central North Core PIU to be actively involved in the preparation process and monitor results. To maximize the likelihood of success of this transaction, the selection process of the generator will be designed based on good industry practices and will incorporate lessons learned from the sector inside and outside the region. Equally important, to be acceptable to the Bank the commercial contracts would have to adhere to the ECOWAS directive for efficient regional energy trade in the sub-regions, and to the model PPAs and their application Guide developed by the regional electricity regulator (ERERA). All these elements mitigate the risks that the process will not be completed in an efficient and sustainable manner. Page 8 The World Bank North Core/Dorsale Nord Regional Power Interconnector Project (P162933) 33. On January 28, 2024, Niger and Burkina Faso sent a letter to ECOWAS indicating that they are exiting the organization. According to the ECOWAS regulation, this would indicate that the two countries would formally exit on January 28, 2025. Due to North Core subsidiary agreements whereas the WAPP, an ECOWAS institution, is managing the financial agreement on behalf of the two countries, the exit risk and consequence was analyzed in detail with the WB legal team. It was concluded that, due to the existence of WAPP managed Financial Agreements for non-ECOWAS members (WAPP working with the Mauritania even if it is not a WAPP member is an example), the impact on the project would be minimal and should not be considered in this restructuring. II. DESCRIPTION OF PROPOSED CHANGES 34. This Restructuring Paper seeks management approval to introduce changes to the WAPP- North Core/Dorsale Nord Regional Power Interconnector Project (North Core Project, P162933) to advance and complete the construction of the interconnector, while also building the commercial readiness of the countries to benefit from the project in line with the project development objective (PDO). These changes would: (a) reallocate funds to cover the financial gap in Burkina Faso due to expired AFD’s financial agreements; (b) extend the financial agreements end dates currently ending on December 15, 2024; (c) revise power purchase agreements (PPA) dated covenants for works in Burkina Faso and Niger for a signature two months prior to the new Closing Dates of the Project; (d) add expenditures provision of Regional Project Implementation Unit (PIU) and Owner engineer; (d) reallocate funds between disbursements categories to meet project emerging needs; and (e) revise the Results Framework to better reflect implementation of the project. The proposed restructuring would not change any other aspects of the project, including the PDO and the implementation arrangements. 35. This restructuring will not lead to any change on the FM’s arrangements. The FM’s performance has been rated satisfactory for each implementing agency and moderately satisfactory for the overall rating. The FM’s risk remains moderate. 36. The proposed changes to the project structure will affect: (A) Nigeria; (B) Benin; (C) Burkina Faso; (D) Niger; (E) WAPP; (F) PPA Dated Covenants and Result Framework. A. Nigeria 37. The requested change to the FA (credit 6342-NG) changes is a one-year extension of the closing date (Dec 15, 2025). B. Benin 38. As part of this restructuring, the following changes are proposed: (i) 9-month extension of the closing date (Sept 15, 2025); (ii) reallocation of funds due to the completion of the South Core (categories 3 and 4) and the completion of the RAP compensation. For Grant IDA 393-BJ, reallocation of an amount of 64,139 and 28,491 Special Drawing Rights (SDR) from categories 2 and 4 respectively to compensate for the deficits recorded in category 5. For Credit IDA 6340- BJ, reallocation of sums of 564,083 Euros, 105,896 Euros and 105,534 Euros to be taken from categories 2, 3 and 4 respectively to compensate for the total deficit of 776,781 Euros recorded on category 5. Page 9 The World Bank North Core/Dorsale Nord Regional Power Interconnector Project (P162933) PROPOS INITIAL ORIGINAL PROPOSED ED ALLOCATI PERCENTA REVISED CATEGORIES ALLOCATION PERCEN INITIAL CATEGORIES ON (SDR) GE (SDR) TAGE IDA Grant No. D393 - BJ 10,900,000 10,900,000 (Benin) (1) Goods, Non-Consulting (1) Goods, Non-Consulting Services, Services, Consulting Services and Consulting Services and Resettlement Resettlement Costs related to 729,526 100% Costs related to components 729,526 100% components 1A6,1B1,1C2,3A,3B2,4A2 1A6,1B1,1C2,3A,3B2,4A2 (2) Works, Goods, Non- (2) Works, Goods, Non-Consulting Consulting Services, Consulting Services, Consulting Services, Services, Workshops, Training, 7,307,767 100% Workshops, Training, Operation, 7,243,628 100% Operation, Related to Part I of the Related to Part I of the Project Project (3) Works, Goods, Non- (3) Works, Goods, Non-Consulting Consulting Services, Consulting Services, Consulting Services Related 2,237,560 100% 2,237,560 100% Services Related to Part 5.A of the to Part 5.A of the Project Project (4) Goods, Non-Consulting (4) Goods, Non-Consulting Services, Services, Consulting Services 237,873 100% Consulting Services Related to Part 209,383 100% Related to Part 5.B of the Project 5.B of the Project (5) Goods, Non-Consulting (5) Goods, Non-Consulting Services, Services, Consulting Services, Consulting Services, training, training, workshops, operational workshops, operational costs, and 387,274 479,903 100% costs, and Resettlement Costs Resettlement Costs related to related to components components 1A6,1B1,1C2,3A,3B1,3B2,4A2 1A6,1B1,1C2,3A,3B1,3B2,4A2 INITIAL ORIGINAL PROPOSED PROPOSED INITIAL CATEGORIES ALLOCATI PERCENTA REVISED CATEGORIES ALLOCATION PERCENTA ON (Euro) GE (Euro) GE Credit IDA 6340 - BJ (Benin) 13,100,000 13,100,000 (1) Goods, Non-Consulting (1) Goods, Non-Consulting Services, Services, Consulting Services and Consulting Services and Resettlement Costs related to 0 100% Resettlement Costs related to 0 100% components components 1A6,1B1,1C2,3A,3B2,4A2 1A6,1B1,1C2,3A,3B2,4A2 Page 10 The World Bank North Core/Dorsale Nord Regional Power Interconnector Project (P162933) (2) Works, Goods, Non- (2) Works, Goods, Non-Consulting Consulting Services, Consulting Services, Consulting Services, Services, Workshops, Training, 10,584,039 100% Workshops, Training, Operation, 10,019,956 100% Operation, Related to Part I of the Related to Part I of the Project Project (3) Works, Goods, Non- (3) Works, Goods, Non-Consulting Consulting Services, Consulting Services, Consulting Services Related 1,779,453 100% 1,673,557 100% Services Related to Part 5.A of the to Part 5.A of the Project Project (4) Goods, non-consulting 100% (4) Goods, non-consulting services, services, consulting services under 228,209 consulting services under Part 5.B of 122,675 100% Part 5.B of the Project the Project (5) Goods, Non-Consulting (5) Goods, Non-Consulting Services, Services, Consulting Services, Consulting Services, training, training, workshops, operational workshops, operational costs, and 508,299 1,283,812 100% costs, and Resettlement Costs Resettlement Costs related to related to components components 1A6,1B1,1C2,3A,3B1,3B2,4A2 1A6,1B1,1C2,3A,3B1,3B2,4A2 C. Burkina Faso As part of this restructuring, it is important to mention that Component 1 already includes WB and AFD cofinancing of substation 4SS and the Ouagadougou line 5-TL, and Component 2 already includes the rural electrification lots financed by AFD. Consequently, no changes, related to the AFD additional lots, to the components are necessary. The following changes are proposed: (i) 15-month extension of the closing date (March 15, 2026); (ii) In terms of categories, IDA Grant No. D392 – BF reallocation of an amount of 9,976 Special Drawing Rights (SDR) from category 1 to category 5 is proposed and for IDA Credit No. 6339 – BF, we propose the reallocation of an amount of €0.5 million from category 3b to Category 2 and €2.1 million from category 5 to Category 3a. PROPOSE INITIAL INITIAL PROPOSED D INITIAL CATEGORIES ALLOCATI PERCENTA REVISED CATEGORIES ALLOCATI PERCENTA ON (SDR) GE ON (SDR) GE IDA Grant No. D392 – BF 48,700,000 48,700,000 (1) Goods, Non-Consulting Services, (1) Goods, Non-Consulting Services, Consulting Services, training, Consulting Services, training, workshops, workshops, operational costs, and operational costs, and Relocation Costs 1,068,571.16 100% 1,058,965 100% Relocation Costs related to parts related to parts 1A7,1A9,1B2,1B3, 1A7,1A9,1B2,1B3, IC1,2,3A,3B2 and IC1,2,3A,3B2 and 4A2 of the Project 4A2 of the Project Page 11 The World Bank North Core/Dorsale Nord Regional Power Interconnector Project (P162933) (2) Goods, Non-*Consulting (2) Goods, Non-*Consulting Services, Services, Consulting Services and Consulting Services and Relocation 1,700,000 100% 1,700,000 100% Relocation Costs Related to Part 2 Costs Related to Part 2 of the Project of the Project (3a) Work relating to Part I of the (3a) Work relating to Part I of the 28,706,209 100% 28,706,209 100% Project* Project* (3b) Work relating to Part 2 of the (3b) Work relating to Part 2 of the 11,000,000 100% 11,000,000 100% Project Project (4) Reimbursement of Project (4) Reimbursement of Project 457 100% 457 100% Preparation Advance Preparation Advance (5) Goods, Non-Consulting Services, (5) Goods, Non-Consulting Services, Consulting Services, training, Consulting Services, training, workshops, workshops, operational costs, and operational costs, and Relocation Costs 6,224,762.84 6,234,369 100% Relocation Costs related to parts related to parts 1A7,1A9,1B2,1B3, 1A7,1A9,1B2,1B3, IC1,2,3A,3B1,3B2 IC1,2,3A,3B1,3B2 and 4A2 of the Project and 4A2 of the Project PROPOSE INITIAL INITIAL PROPOSED D INITIAL CATEGORIES ALLOCATI PERCENTA REVISED CATEGORIES ALLOCATI PERCENTA ON (€) GE ON (€) GE Credit IDA N°6339 – BF 117,500,000 117,500,000 (1) Goods, Non-Consulting Services, (1) Goods, Non-Consulting Services, Consulting Services, training, Consulting Services, training, workshops, workshops, operational costs, and operational costs, and Relocation Costs 0 100% 0 100% Relocation Costs related to parts related to parts 1A7,1A9,1B2,1B3, 1A7,1A9,1B2,1B3, IC1,2,3A,3B2 and IC1,2,3A,3B2 and 4A2 of the Project 4A2 of the Project (2) Goods, Non-Consulting Services, (2) Goods, Non-Consulting Services, Services and Relocation Costs related to 6,026,800 100% Services and Relocation Costs 6,526,800 100% Part 2 of the Project related to Part 2 of the Project (3a) Work relating to Part I of the (3a) Work relating to Part I of the 79,609,368 100% 81,772,849 100% Project* Project* (3b) Work relating to Part 2 of the (3b) Work relating to Part 2 of the 24,573,200 100% 24,073,200 100% Project * Project * (4) Reimbursement of Project (4) Reimbursement of Project 0 Preparation Advance Preparation Advance Page 12 The World Bank North Core/Dorsale Nord Regional Power Interconnector Project (P162933) (5) Goods, Non-Consulting Services, (5) Goods, Non-Consulting Services, Consulting Services, training, workshops, Consulting Services, training, operational costs, and Relocation Costs workshops, operational costs, and 7,290,632 5,127,151 related to parts 1A7,1A9,1B2,1B3, Relocation Costs related to parts IC1,2,3A,3B1,3B2 and 4A2 of the Project 1A7,1A9,1B2,1B3, IC1,2,3A,3B1,3B2 and 4A2 of the Project D. Niger 39. The requested change to the FA by the government is a 15-month extension of the closing date (March 15, 2026). E. WAPP 40. The requested change to the FA by the WAPP is a 15-month extension of the closing date (March 15, 2026). Since the PPA did not disburse under this project, Cat 1 is currently overdrawn by 125%. We are therefore moving all the funds to Cat 1. PROPOSE INITIAL INITIAL PROPOSED D INITIAL CATEGORIES ALLOCATI PERCENTA REVISED CATEGORIES ALLOCATI PERCENTA ON (SDR) GE ON (SDR) GE Grant IDA N°D3910 7,200,000 7,200,000 (1)Gds,Ncs,Cs,Tr,Wrks,ST,OC,prt3B1,4 (1)Gds,Ncs,Cs,Tr,Wrks,ST,OC,prt3 3,200,000 100% 7,200,000 100% A1 B1,4A1 (2) PPF REFINANCING 4,000,000 100% (2) PPF REFINANCING 0 100% F. Results Framework and Covenants 41. The previous dated covenant related to PPAs will be amended. The amendment will change the due date of the PPAs to 2 months prior to the end of the project. 42. Also, the project's Results Framework related to PPAs (PPA signature before June 15, 2024) will be replaced by the following intermediate outcome indicator: PPA signature 2 months prior to end of project. This will indicate the key milestones in the process to complete the first commercial transaction to trade electricity through the North Core with export of Electricity from Nigerian generators to the national utilities of Niger, Burkina Faso and Benin. More specifically, section I.E of Schedule 2 (Implementation Arrangements) is hereby revised to read as set forth: “The Recipient shall ensure that the activities under Part 1 of the Project are carried out in accordance with the Action Plan, as further detailed in the PIM, all under terms and conditions satisfactory to the Association and to the Participating Countries and, to this end, unless the Association shall otherwise agree, the Recipient shall ensure that, than 2 months prior to the end of the project, the Power Purchase Agreement is signed and executed under terms and conditions satisfactory to the Association.” Page 13 The World Bank North Core/Dorsale Nord Regional Power Interconnector Project (P162933) 43. Due to security challenges and to AFD’s financing time lapse, Burkina Faso decided to cancel lot 7 in the rural electrification component and lot 3 rural electrification financing remains uncertain. This cancellation and uncertainty are affecting the People provided with new or improved electricity service (custom, Number) and the People provided with new or improved electricity service - Female (custom, Number) PDO indicators. Moreover, given the transition to the new World Bank Scorecard and new corporate indicators and the retrofitting of the new indicator “People provided with access to electricity (CRI)” the proposal is to drop the custom indicator and revise the targets of the CRI as per the table below (resulting from removing localities lot 7 and 3). Both custom indicator and the new CRI track new connections only. Initial target Revised target Nb of localities 179 135 Nb of households 92,286 56,320 Nb of connections 76,049 28,982 People provided with direct access to electricity through 575,000 350,900 new connections (CRI, Number) People provided with access to electricity – Female 287,500 175,500 (Number of people) People provided with access to electricity – Youth 66,671 (Number of people) 16-24* *Source: 19% of affected people was used from “5iem Recensement General de la Population et de l’Habitation du Burkina”, June 2022 44. Due to new construction of substations in Benin during the recent year, the Malanville substation SCADA will need to be updated by CEB/SBEE and we can no longer achieve the SCADA completion PDO indicator. Consequently, we are proposing to remove the SCADA PDO indicator, SCADA installed and operational in Benin, from the financing. 45. Overall, the task team has assessed the above changes, and once these changes are in effect, the restructuring will lead to a viable implementation of the Project towards the achievement of its objectives. @#&OPS~Doctype~OPS^dynamics@restrhybridsummarychanges#doctemplate Summary changes III. PROPOSED CHANGES Operation Information Proposed Changes Operation Information Proposed Changes Page 14 The World Bank North Core/Dorsale Nord Regional Power Interconnector Project (P162933) Results Yes Loan Closing Date Extension Yes Development Objective No Reallocations Yes Safeguard Policies Triggered No Implementation Schedule Yes ISDS No Loan Cancellations No MFD/PCE No Financial Management No Risks No Procurement No Legal Covenants No Institutional Arrangement No Conditions No Implementation Modalities No Disbursements Estimates No Disbursements Arrangements No DDO No Clients No Appraisal Summary No Components No @#&OPS~Doctype~OPS^dynamics@restrhybriddetailedchanges-disclose#doctemplate IV. DETAILED CHANGE(S) COSTS & FINANCING Private Capital Facilitation Is this an MFD-Enabling Project (MFD-EP)? Is this project Private Capital Enabling (PCE)? LOANS Loan Closing Original Revised Proposed Proposed Deadline Loan/Credit/Trust Status Closing Closing(s) Closing for Withdrawal Fund Applications IDA-63390-001 Effective 15-Dec-2024 15-Dec-2024 15-Mar-2026 15-Jul-2026 Page 15 The World Bank North Core/Dorsale Nord Regional Power Interconnector Project (P162933) IDA-63400-001 Effective 15-Dec-2024 15-Dec-2024 15-Sep-2025 15-Jan-2026 IDA-63410-001 Effective 15-Dec-2024 15-Dec-2024 15-Mar-2026 15-Jul-2026 IDA-63420-001 Effective 15-Dec-2024 15-Dec-2024 15-Dec-2025 15-Apr-2026 IDA-D3910-001 Effective 15-Dec-2024 15-Dec-2024 15-Mar-2026 15-Jul-2026 IDA-D3920-001 Effective 15-Dec-2024 15-Dec-2024 15-Mar-2026 15-Jul-2026 IDA-D3930-001 Effective 15-Dec-2024 15-Dec-2024 15-Sep-2025 15-Jan-2026 IDA-D3940-001 Effective 15-Dec-2024 15-Dec-2024 15-Mar-2026 15-Jul-2026 Reallocations IDA-63390-001 Cancellations (if any): New Allocation: Currency: EUR 0.00 0.00 Financing % (Type Total) Category Expenditure Current Actuals + Proposed No. Category Allocation Committed Allocation Current Proposed 1 G,NCS,CS,RC Prts - 0.00 0.00 0.00 100.00 100.00 see FA; 2 G,NCS,CS,RC Pt 2; 6,026,800.00 4,350,352.21 6,526,800.00 100.00 100.00 3A WORKS - Pt 1; 79,609,368.00 23,571,473.00 81,772,849.00 100.00 100.00 3B WORKS - Pt 2; 24,573,200.00 12,499,723.03 24,073,200.00 100.00 100.00 5 G,NCS,CS,TR,RC Prts - 7,290,632.00 9,732.17 5,127,151.00 100.00 100.00 see FA; Total 117,500,000.0 117,500,000.0 0 0 IDA-63400-001 Cancellations (if any): New Allocation: Currency: EUR 0.00 0.00 Financing % (Type Total) Category Expenditure Current Actuals + Proposed No. Category Allocation Committed Allocation Current Proposed 1 G,NCS,CS,RC 0.00 0.00 0.00 100.00 100.00 Pt1A6,1B1,C2,3A,3B2 ,4A2; 2 W,N/CS,TRN,OC,WSH 10,584,039.00 4,182,785.53 10,019,956.00 100.00 100.00 P Prt 1; 3 Goods, works, non- 1,779,453.00 1,673,556.84 1,673,557.00 100.00 100.00 consulting services, consulting services Pt 5.A; Page 16 The World Bank North Core/Dorsale Nord Regional Power Interconnector Project (P162933) 4 Goods, non- 228,209.00 122,674.53 122,675.00 100.00 100.00 consulting services, consulting services under Pt 5.B; 5 G,NCS,CS,TRN,OC,WS 508,299.00 285,440.50 1,283,812.00 100.00 100.00 ,RC - Cfr FA; Total 13,100,000.00 13,100,000.00 IDA-63410-001 Cancellations (if any): New Allocation: Currency: EUR 0.00 0.00 Financing % (Type Total) Category Expenditure Current Actuals + Proposed No. Category Allocation Committed Allocation Current Proposed 1 G,NCS,CS,RC Prts - 74,941.98 74,941.98 74,941.98 100.00 100.00 see FA; 2 WRKS Prt 1; 77,200,000.00 0.00 77,200,000.00 100.00 100.00 3 G,NCS,CS,TR,WS,OC, 5,525,058.02 0.00 5,525,058.02 100.00 100.00 RC Prts - see FA; Total 82,800,000.00 82,800,000.00 IDA-63420-001 Cancellations (if any): New Allocation: Currency: USD 0.00 0.00 Financing % (Type Total) Category Expenditure Current Actuals + Proposed No. Category Allocation Committed Allocation Current Proposed 1 GD,NCS,CS 1,253,139.05 1,253,009.97 1,253,139.05 100.00 100.00 prt1.A.1,3.A,3.B.2,4.A .2; 2 WORKS PART 1; 18,353,978.00 12,747,669.78 18,353,978.00 100.00 100.00 3 G,NCS,CS,TR,WS,OC, 7,792,882.95 2,048,133.21 7,792,882.95 100.00 100.00 RC - Cfr FA; Total 27,400,000.00 27,400,000.00 IDA-D3910-001 Cancellations (if any): New Allocation: Currency: XDR 0.00 0.00 Financing % (Type Total) Category Expenditure Current Actuals + Proposed No. Category Allocation Committed Allocation Current Proposed Page 17 The World Bank North Core/Dorsale Nord Regional Power Interconnector Project (P162933) 1 Gds,Ncs,Cs,Tr,Wrks,S 3,200,000.00 6,635,188.50 7,200,000.00 100.00 100.00 T,OC,prt3B1,4A1; 2 PPF REFINANCING; 4,000,000.00 0.00 0.00 0.00 100.00 Total 7,200,000.00 7,200,000.00 IDA-D3920-001 Cancellations (if any): New Allocation: Currency: XDR 0.00 0.00 Financing % (Type Total) Category Expenditure Current Actuals + Proposed No. Category Allocation Committed Allocation Current Proposed 1 G,NCS,CS,RC Prts - 1,068,940.82 1,058,964.21 1,058,965.00 100.00 100.00 see FA; 2 G,NCS,CS,RC Pt 2; 1,700,000.00 48,515.52 1,700,000.00 100.00 100.00 3A WORKS - Pt 1; 28,706,209.00 28,706,208.48 28,706,209.00 100.00 100.00 3B WORKS - Pt 2; 11,000,000.00 2,274,672.09 11,000,000.00 100.00 100.00 4 PPF REFINANCING; 457.00 456.43 457.00 0.00 0.00 5 G,NCS,CS,TR,RC Prts - 6,224,393.18 489,528.23 6,234,369.00 100.00 100.00 see FA; Total 48,700,000.00 48,700,000.00 IDA-D3930-001 Cancellations (if any): New Allocation: Currency: XDR 0.00 0.00 Financing % (Type Total) Category Expenditure Current Actuals + Proposed No. Category Allocation Committed Allocation Current Proposed 1 G,NCS,CS,RC 729,525.71 729,525.71 729,526.00 100.00 100.00 Pt1A6,1B1,C2,3A,3B2 ,4A2; 2 W,NCS,CS,TRN,OC,W 7,307,767.00 7,167,004.34 7,243,628.00 100.00 100.00 SHP Pt 1; 3 Goods, works, non- 2,237,560.00 2,237,559.22 2,237,560.00 100.00 100.00 consulting services, consulting services under Pt 5.A; 4 Goods, non- 237,873.00 209,382.05 209,383.00 100.00 100.00 consulting services, consulting services under Pt 5.B; Page 18 The World Bank North Core/Dorsale Nord Regional Power Interconnector Project (P162933) 5 G,NCS,CS,TR,OC,WS, 387,274.29 300,819.05 479,903.00 100.00 100.00 RC - Cfr FA; Total 10,900,000.00 10,900,000.00 IDA-D3940-001 Cancellations (if any): New Allocation: Currency: XDR 0.00 0.00 Financing % (Type Total) Category Expenditure Current Actuals + Proposed No. Category Allocation Committed Allocation Current Proposed 1 G,NCS,CS,RC Prts - 1,163,341.57 1,163,341.57 1,163,341.57 100.00 100.00 see FA; 2 WRKS Prt 1; 60,201,318.00 45,885,111.17 60,201,318.00 100.00 100.00 3 G,NCS,CS,TR,WS,OC, 7,135,340.43 484,256.39 7,135,340.43 100.00 100.00 RC Prts - see FA; Total 68,500,000.00 68,500,000.00 Page 19 The World Bank North Core/Dorsale Nord Regional Power Interconnector Project (P162933) RESULTS COUNTRY: Benin, Burkina Faso, Niger, Nigeria North Core/Dorsale Nord Regional Power Interconnector Project Note to Task Team: The following sections are system generated and can only be edited online in the Portal. Delete this note when finalizing the document. @#&OPS~Doctype~OPS^dynamics@restrannexpolicyandresult#doctemplate PDO Indicators by PDO Outcomes The Project Development Objectives are: (i) to increase the capacity to trade electricity between Ni Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year 0.00 Sep/2018 0.00 07-Jun-2024 0.00 07-Jun-2024 270.00 Dec/2024 Comments on achieving targets Nigeria works include a 66.2 km line between Kalgo (Nigeria) and the border with Niger. The Niger side includes two substations (Gorou Banda and Zabori) and two transmission line contracts (lots 1TLB and 2TL). On the Increase in 330KV transmission Nigeria side, line construction started in late October 2023 and about 40% of works was performed. The team capacity Nigeria-Benin (Megawatt) reviewed the status of this contract during the end of May 2024 mission and it is planned to be completed with 6-7 months of delay. On the Niger side, construction of the substations started in March 2023 but its progress was halted following the OP 7.30 event. Since OP7.30 was lifted in May 2024, works resumed and 24% of works was performed. Likewise, construction of the Niger line started in March 2023 and 33% of works was performed. Assets are planned to be completed with 12-15 months of delay. 0.00 Sep/2018 0.00 07-Jun-2024 0.00 07-Jun-2024 60.00 Dec/2024 Increase in transmission capacity Comments on achieving targets Two assets are to be built for the North Core in Benin: (i) the Malanville substation; and (ii) a 12km section of Nigeria-Benin (Megawatt) the line. Construction of the Malanville substation started in September 2023 and reached 46% of works performed. For the 12km line, works started in January 2023 and have reached 32% completion. Progress observed on the ground show 3-5 months of delay. 0.00 Sep/2018 0.00 07-Jun-2024 0.00 07-Jun-2024 275.00 Dec/2024 Increase in transmission capacity Comments on achieving targets Burkina Faso works include construction of two line contracts (lots 4ATL and 4BTL). Most material for lot 4ATL Niger-Burkina Faso (Megawatt) and 4BTL have been delivered. Construction of lot 4BTL started early 2024 and work has reached 31% completion. Assets are planned to be completed with 15 months of delay. Page 20 The World Bank North Core/Dorsale Nord Regional Power Interconnector Project (P162933) Difference to NIGELEC between the 34 US cents/kWh Sep/2018 34 US cents/kwh 07-Jun-2024 34 US cents/kwh 07-Jun-2024 11 US cents/kWh Dec/2024 annual weighted average cost of Comments on achieving targets This will be achieved once the Nigeria-Niger section of the project is completed (which is electricity imported through the North Core and the annual weighted undergoing now). average cost of other sources (Text) Difference to CEB between the 27 US cents/kWh Sep/2018 27 US cents/kwh 07-Jun-2024 27 US cents/kwh 07-Jun-2024 11 US cents/kWh Dec/2024 annual weighted average cost of Comments on achieving targets This will be achieved once the Nigeria-Niger and Niger-Benin sections of the project are electricity imported through the North Core line and the annual completed (which is undergoing now). weighted average cost of other sources (Text) Difference to SONABEL between the 26 US cents/kWh Sep/2018 26 US cents/kwh 07-Jun-2024 26 US cents/kwh 07-Jun-2024 11 US cents/kWh Dec/2024 annual weighted average cost of Comments on achieving targets This will be achieved once the Nigeria-Niger and Niger-Burkina Faso sections of the project electricity imported through the North Core line and the annual are completed (which is undergoing now). weighted average cost of other sources (Text) Intermediate Results Indicators by Components Power Interconnection between Niger, Nigeria, Benin and Burkina Faso Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year Revise People provided with access to 0 Jan/2018 0 17-Sep-2024 350,900 Mar/2026 electricity (Number of people) CRI People provided with access 0 Jan/2018 0 17-Sep-2024 6,6671 Mar/2026 to electricity – Youth (Number of people) CRI People provided with access 0 Jan/2018 0 17-Sep-2024 175,500 Mar/2026 to electricity – Female (Number of people) CRI Page 21 The World Bank North Core/Dorsale Nord Regional Power Interconnector Project (P162933) New People provided with 0 Jan/2018 0 17-Sep-2024 350,900 Mar/2026 direct access to electricity through new connections (Number) 0.00 Sep/2018 28 07-Jun-2024 28 07-Jun-2024 875.00 Dec/2024 Transmission lines constructed-330 Comments on achieving targets Construction for the Nigeria, Benin, and Burkina Faso section of the lines is progressing, and kV (Kilometers) Niger construction restarted in May 2024 after OP 7.30 was lifted 0.00 Sep/2018 10 07-Jun-2024 10 07-Jun-2024 24.00 Dec/2024 Transmission lines constructed-225 kV (Kilometers) Comments on achieving targets (See above indicator). Construction for the Burkina Faso section of the lines is progressing. 0.00 Sep/2018 1 07-Jun-2024 1 07-Jun-2024 5.00 Dec/2024 Comments on achieving targets Construction of all 5 substations have started. -The Benin Malanville substation is progressing with the foundations and ground level Number of substations constructed. It will be completed by the project's closing date. constructed/extended under the -The two Niger substations (at Gorou Band and Zabori) had started construction in March project (Number) 2023. Their progress has stopped since the July 26th 2023, but is resuming shortly due to the end of Niger OP 7.30 -Two substations in Burkina Faso (financed by AFD and AFDB) have started construction in October 2023 (foundations have been done). No Sep/2018 No 07-Jun-2024 No 07-Jun-2024 Yes Dec/2024 SCADA installed and operational in Burkina Faso (Text) Comments on achieving targets The Burkina Faso SCADA will be completed during the substation construction No Sep/2018 No 07-Jun-2024 No 07-Jun-2024 Yes Dec/2024 Fiber optic cable installed (Text) Comments on achieving targets Fiber optic was successfully installed in Benin (for the South Core). For the regional project, the telecom equipment will be installed during the construction of the line. Utility. WAPP secretariat staff and 0.00 Sep/2018 120.00 07-Jun-2024 120.00 07-Jun-2024 120.00 Dec/2024 other stakeholders trained for Comments on achieving targets Training has been successfully completed Regional Power Trade and Fiber Optics Commercialization (Number) Page 22 The World Bank North Core/Dorsale Nord Regional Power Interconnector Project (P162933) Project related grievances registered 0.00 Sep/2018 100.00 07-Jun-2024 100.00 07-Jun-2024 100.00 Dec/2024 under the project grievance redress Comments on achieving targets All project related grievances registered under the project grievance redress mechanism mechanism (GRM) and addressed (percentage) (Percentage) (GRM) are addressed Institutional Framework and Project Oversight Indicator Name Baseline Actual (Previous) Actual (Current) Closing Period Result Month/Year Result Date Result Date Result Month/Year No Sep/2018 No 07-Jun-2024 No 07-Jun-2024 Yes Dec/2024 Construction/rehabilitation dispatch Comments on achieving targets Dispatch center in Niger is under construction. The civil works are well engaged, and will center Niger (Yes/No) continue as soon as activities resume in Niger. Note to Task Team: End of system generated content, document is editable from here. Delete this note when finalizing the document. Page 23