$ Report No: RES00588 PROJECT PAPER ON A PROPOSED RESTRUCTURING OF THE ACCELERATING SUSTAINABLE AND CLEAN ENERGY ACCESS TRANSFORMATION PROGRAM USING THE MULTIPHASE PROGRAMMATIC APPROACH APPROVED NOVEMBER 28, 2023 AND A PROPOSED IDA CREDIT IN THE AMOUNT OF EUR 37 MILLION (US$39 MILLION EQUIVALENT) A PROPOSED IBRD LOAN IN THE AMOUNT OF EUR 48 MILLION (US$51 MILLION EQUIVALENT) AND A PROPOSED GRANT IN THE AMOUNT OF US$10 MILLION FROM THE IBRD SURPLUS-FUNDED LIVABLE PLANET FUND TO THE KINGDOM OF ESWATINI AS PHASE 9 OF THE ACCELERATING SUSTAINABLE AND CLEAN ENERGY ACCESS TRANSFORMATION PROGRAM DECEMBER 24, 2024 Energy and Extractives Global Practice Eastern and Southern Africa Region Regional Vice President: Victoria Kwakwa Regional Director: Wendy E. Hughes Country Director: Boutheina Guermazi Practice Manager: Erik Magnus Fernstrom Task Team Leaders: Monali Ranade, Zubair K.M. Sadeque, Dana Rysankova The World Bank Accelerating Sustainable & Clean Energy Access Transformation Program Using the Multiphase Programmatic Approach (P180547) ABBREVIATIONS AND ACRONYMS AfDB African Development Bank AFD Agence française de développement, French Development Agency AFE Eastern and Southern Africa AIIB Asian Infrastructure Investment Bank ASCENT Accelerating Sustainable and Clean Energy Access Transformation BESS Battery Energy Storage System COMESA Common Market for Eastern and Southern Africa CPF Country Partnership Framework DLI Disbursement-linked Indicator D-MRV Digital Monitoring, Reporting, and Verification DRE Distributed Renewable Energy EEC Eswatini Electricity Company EIB European Investment Bank ESMAP Energy Sector Management Assistance Program E&S Environmental and Social ESF Environmental and Social Framework ESP Energy Service Provider EU European Union FY Fiscal Year GAP Gender Action Plan GHG Greenhouse Gas GoKE Government of Kingdom of Eswatini IBRD International Bank for Reconstruction and Development IDA International Development Association IFC International Finance Corporation IPF Investment Project Financing IVA Independent Verification Agent LV Low Voltage M300 Mission 300 M&E Monitoring and Evaluation MIGA Multilateral Investment Guarantee Agency MNRE Ministry of Natural resources and Energy MOF Ministry of Finance MOU Memorandum of Understanding MPA Multiphase Programmatic Approach MRV Monitoring, Reporting and Verification MS Moderately Satisfactory MV Medium Voltage NEP National Energy Policy NES National Electrification Strategy PAD Project Appraisal Document PIM Project Implementation Manual PBC Performance Based Condition The World Bank Accelerating Sustainable & Clean Energy Access Transformation Program Using the Multiphase Programmatic Approach (P180547) PCE Private Capital Enabled PCM Private Capital Mobilized PDO Project Development Objective PforR Program for Results PIU Project Implementation Unit PPF Project Preparation Facility PPSD Project Procurement Strategy for Development PrDO Program Development Objective PV Photovoltaic Q Quarter REA Rural Energy Agency REAFF Regional Energy Access Financing Facility REGIDESO Régie de Production et de Distribution d’eau et d’électricité du Burundi, Burundi Water and Electricity Production and Distribution Authority REF Rural Electrification Fund REP Rural Electrification Program S Satisfactory SHS Solar Home System STEM Science, Technology, Engineering and Mathematics STEP Systematic Tracking of Exchanges in Procurement STP Sao Tome and Principe TA Technical Assistance tCO2e Tons of carbon dioxide equivalent TDB Trade and Development Bank TDF Trade and Development Fund UNDP United Nations Development Program USD United States Dollar WBG World Bank Group The World Bank Accelerating Sustainable & Clean Energy Access Transformation Program Using the Multiphase Programmatic Approach (P180547) @#&OPS~Doctype~OPS^dynamics@restrhybridbasicdata#doctemplate BASIC DATA Product Information Operation ID Operation Name Accelerating Sustainable & Clean Energy Access P180547 Transformation Program Using the Multiphase Programmatic Approach Product/Financing Instrument Geographical Identifier Investment Project Financing (IPF) Eastern and Southern Africa Approval Date Current Closing Date 28-Nov-2023 31-Dec-2030 Environmental and Social Risk Classification (ESRC) Substantial Organizations Borrower Responsible Agency Common Market for Eastern and Southern Africa Common Market for Eastern and Southern Africa (COMESA) (COMESA) Secretariat @#&OPS~Doctype~OPS^dynamics@restrhybridoperationstatus#doctemplate OPERATION STATUS Project Development Objective (DO) Original Development Objective To accelerate access to sustainable, reliable and clean energy in Eastern and Southern Africa Disbursement Summary (in USD million) Source of Funds Net Commitment Disbursed Undisbursed % Disbursed i The World Bank Accelerating Sustainable & Clean Energy Access Transformation Program Using the Multiphase Programmatic Approach (P180547) IBRD -- -- -- 0 IDA 51.04 0.58 50.45 1.14 Grants -- -- -- 0 Policy Waivers Does this restructuring trigger the need for any policy waiver(s)? No @#&OPS~Doctype~OPS^dynamics@restrhybridmpa#doctemplate MULTIPHASE PROGRAMMATIC APPROACH (MPA) Multiphase Programmatic Approach (MPA) Program Development Objective Original MPA Program Development Objective (Approved as part of Approval on 14-Dec-2024) To increase access to sustainable and clean energy in Eastern and Southern Africa Current MPA Program Development Objective To increase access to sustainable and clean energy in Eastern and Southern Africa Proposed MPA Program Development Objective Multiphase Programmatic Approach (MPA) Status (Public Disclosure) Status and Key Decisions (Public Disclosure) The MPA was approved on Nov 28, 2023. @#&OPS~Doctype~OPS^dynamics@restrhybridmpa#doctemplate ii The World Bank Accelerating Sustainable & Clean Energy Access Transformation Program Using the Multiphase Programmatic Approach (P180547) TABLE OF CONTENTS I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING ........................................................................................1 II. DESCRIPTION OF PROPOSED CHANGES ....................................................................................................................3 III. PROPOSED CHANGES ................................................................................................................................................3 IV. DETAILED CHANGE(S) ...............................................................................................................................................4 ANNEX 1. Revised ASCENT MPA Implementation Plan ...................................................................................5 ANNEX 2. Progress Update for ASCENT Phases 1-8.........................................................................................6 ANNEX 3. ASCENT Eswatini (Phase 9, P508960)..............................................................................................9 The World Bank Accelerating Sustainable & Clean Energy Access Transformation Program Using the Multiphase Programmatic Approach (P180547) I. PROJECT STATUS AND RATIONALE FOR RESTRUCTURING A. Program Status Background on ASCENT MPA and Mission 300 1. The Accelerating Sustainable and Clean Energy Access Transformation (ASCENT) Program using the Multiphase Programmatic Approach (MPA) was approved on November 28, 2023, with an IDA financing envelope of US$5 billion. The Program Development Objective (PrDO) is to increase access to sustainable and clean energy in Eastern and Southern Africa (AFE). ASCENT uses a programmatic approach to enhance the pace, scale, and impact of energy access efforts in AFE, aiming to provide electricity to 100 million people across the AFE region, while also supporting productive uses of energy and electrification of public institutions, such as schools and health clinics. Additionally, ASCENT also exploits synergies with the clean cooking sector to deliver clean cooking access to at least 20 million people in AFE. It is designed as a US$15 billion program, with US$5 billion from IDA and an additional US$10 billion expected to be sourced from other public, private, climate and philanthropic partners, and participating governments. The ASCENT MPA is organized into three pillars: Pillar 1 focuses on regional and national platforms to accelerate energy access; Pillar 2 supports expanding grid electrification; and Pillar 3 aims to scale up Distributed Renewable Energy (DRE) and clean cooking solutions. 2. Phases 1-6 of the Program for Rwanda, Sao Tome and Principe, Somalia, Tanzania, and two regional organizations (Common Market for Eastern and Southern Africa – COMESA, and Eastern and Southern African Trade and Development Bank – TDB) with a total IDA amount of US$1.063 billion, were approved concurrently with the overall Program. Subsequently, ASCENT Burundi was approved on June 26, 2024, with Additional Financing to ASCENT Burundi approved on December 19, 2024. ASCENT Malawi was approved on December 20, 2024. (See Table 1). Table 1: Overview of ASCENT’s Approved Phases Phase Operation Country/ Instrument IDA Other Approval Effectiveness Target: ID regional entity (US$ financing date date People millio including provided n) PCM/PCE with (US$ access to million) electricity 1 P180547 COMESA IPF 50 11/28/2023 4/5/2024 2 P180575 Rwanda IPF 300 130.00 11/28/2023 4/12/2024 1,880,000 3 P177099 Sao Tome and IPF 38 8.00 11/28/2023 4/29/2024 43,000 Principe 4 P181341 Somalia IPF 100 11/28/2023 3/14/2024 1,820,000 5 P179631 Tanzania PforR 300 30.00 11/28/2023 12/24/2024 4,000,000 6 P181328 TDB IPF 275 319.00 11/28/2023 4/11/2024 5,000,000 7 P181494 Burundi IPF 100 89.90 6/26/2024 11/11/2024 900,000 Burundi IPF 50 40.00 12/19/2024 NA 300,000 Additional Financing 8 P502464 Malawi IPF 250 39.00 12/20/2024 NA 4,400,000 Total 1,463 655.90 18,343,000 3. The World Bank is committed to accelerating energy access in the AFE region. Following the Board approval of ASCENT MPA in November 2023, the World Bank, the African Development Bank (AfDB), and partners have launched the Page 1 The World Bank Accelerating Sustainable & Clean Energy Access Transformation Program Using the Multiphase Programmatic Approach (P180547) Mission 300 (M300) initiative, stepping up the energy access ambition to provide electricity access to 300 million Africans by 2030. ASCENT is the main vehicle for delivering M300 target in the AFE region. 4. Mission 300 refers to an ambitious effort to scale up energy access in Africa while ensuring that the transition to more diversified and cleaner sources of energy meets growing demand, brings economic growth, and creates jobs. Its core objective is to help provide electricity access to 300 million people in Africa by 2030, of which 250 million are the target for World Bank Group’s (WBG) activities. It is estimated that about half of the Mission 300 target will be most cost- effectively achieved via grid connections and half via mostly private sector-led DRE, including mini grids and stand-alone solar solutions. To reach Mission 300’s target and broader energy sector transformation, the World Bank is also addressing Africa’s wider energy needs. The supply of electricity to new connections relies on the World Banks’ broader support for generation, transmission, regional interconnection, sector reform and crowding in private sector investment to ensure quality, reliability, and affordability of power supply. In addition to residential connections, the World Bank also aims to extend electricity access to businesses and essential services, such as schools and health facilities. Targeting 100 million people with access to electricity, ASCENT will provide critical contributions to achieving Mission 300. 5. Mission 300 will require extensive collaboration among a wide range of stakeholders, including African governments, the World Bank Group and the African Development Bank, the private sector and donors, philanthropies and partners. Working closely with the World Bank Group, AfDB and other partners, African governments are currently preparing National Energy Compacts to drive progress towards the achievement of universal access to energy in a reliable, affordable, and sustainable manner. The Compacts acknowledge the essential role of sectoral reforms in achieving M300 access targets and outline critical measures and actions. The Compacts are expected to be featured at the Africa Energy Summit in Dar es Salaam, Tanzania on January 27-28, 2025, which will bring together African Heads of State, private sector leaders, development partners, and civil society. Currently in AFE, Democratic Republic of Congo, Madagascar, Malawi, Mozambique, Tanzania, and Zambia – all existing or upcoming Phases of ASCENT – are preparing National Energy Compacts. Additional countries, such as Burundi, have also expressed interest to join. This will further enhance effectiveness and impacts of ASCENT operations. Progress for ASCENT approved Phases 1-8 6. ASCENT COMESA (Phase 1), Rwanda (Phase 2), Sao Tome and Principe (Phase 3), Somalia (Phase 4), Tanzania (Phase 5), TDB (Phase 6), and Burundi (Phase 7) are effective and progressing satisfactorily. Phases 1 to 7 are rated Satisfactory or Moderately Satisfactory (in the case of Somalia) in the latest Implementation Status and Results Reports, and all are on track to deliver fully on their respective Project Development Objective (PDO) targets. ASCENT Malawi (Phase 8) was approved on December 20, 2024, and is expected to become effective in the third quarter of FY25. A summary of progress of the approved ASCENT Phases is included in Annex 2. Subject to the Board approval of the MPA restructuring and the ASCENT Eswatini project, ASCENT Eswatini will become Phase 9 (see Section II below). Additional country and regional Phases are under preparation, in close collaboration with IFC and MIGA. 7. The current and upcoming ASCENT country Phases benefit from support provided through the ASCENT Regional Acceleration Platform under COMESA that drives the implementation of MPA Pillar 1 and the Regional Energy Access Financing Platform under TDB, supporting Pillar 3. ASCENT COMESA aims at increasing access to sustainable clean energy in AFE through digitalization, project development, policy advisory support, and capacity building. Key initiatives include advisory support facility for ASCENT countries, including for harmonization of policy and regulatory frameworks, technical assistance to DRE and clean cooking companies to access financing, and support for the digitalization of energy access, including for digital monitoring, reporting, and verification (D-MRV). ASCENT TDB is complementing these efforts by offering financing for DRE companies operating in the region and mobilizing private sector financing. These activities are implemented in close collaboration with IFC and MIGA, which are also offering financing and risk mitigation products to DRE and clean cooking companies. Countries are also benefiting from partnership efforts carried out by ASCENT. Specifically, ASCENT is strengthening collaboration with the existing ASCENT co-financiers, such as AfDB, Asian Page 2 The World Bank Accelerating Sustainable & Clean Energy Access Transformation Program Using the Multiphase Programmatic Approach (P180547) Infrastructure Investment Bank (AIIB), French Development Agency (AFD), European Union (EU)/European Investment Bank (EIB), as well as Energy Sector Management Assistance Program (ESMAP), and exploring co-financing and collaboration with a range of additional multilateral, bilateral, philanthropic and climate partners for the upcoming Phases. 8. ASCENT COMESA is supporting ASCENT to set up a regional D-MRV platform, which will be linked to national D- MRV platforms, aggregating results from individual ASCENT Phases and creating a single database in a harmonized format and, where possible, with real-time data updates. This D-MRV system will revolutionize monitoring and evaluation, providing a feedback loop for planning, project design, regulatory oversights and market intelligence. In addition, it will create unprecedented opportunities for climate and other impact financing mobilization via aggregation, robust verification protocols and reduction of transaction costs. This includes the potential for generating high integrity emission reductions associated with supported energy access and clean cooking investments that can be monetized through carbon markets. II. DESCRIPTION OF PROPOSED CHANGES 9. The ASCENT MPA is being restructured to include Eswatini as a participating country. This is captured in the Annex 1 that outlines the revised ASCENT MPA implementation plan. Based on the request letter from the Government of the Kingdom of Eswatini (GoKE), IDA financing of US$39 million has been reallocated from ASCENT funding allocated for future regional facilities (ASCENT PAD, Report PAD00136, Annex 1). This does not impact the overall IDA financing envelope, which remains US$5 billion. A description of the ASCENT Eswatini project, Phase 9 of ASCENT MPA, is attached as Annex 3 and is submitted for approval with this restructuring paper as a combined package. ASCENT Eswatini is financed by an IDA credit (US$39 million), an IBRD loan (US$51 million), and a grant from the IBRD surplus-funded Livable Planet Fund (US$10 million). @#&OPS~Doctype~OPS^dynamics@restrhybridsummarychanges#doctemplate Summary changes III. PROPOSED CHANGES Operation Information Proposed Changes Operation Information Proposed Changes Development Objective No Loan Closing Date Extension No Summary Description No Loan Cancellations No (Operation Abstract) Legal Operational Policies No Reallocations No MFD/PCE No Financial Management No Results No Procurement No Risks No Institutional Arrangement No Legal Covenants No Implementation Schedule No Conditions No Page 3 The World Bank Accelerating Sustainable & Clean Energy Access Transformation Program Using the Multiphase Programmatic Approach (P180547) 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)? Yes Last approved as part of PAD Data Sheet (Approval) on 28-Nov-2023 Is this project Private Capital Enabling (PCE)? Yes Last approved as part of PAD Data Sheet (Approval) on 28-Nov-2023 LOANS ENVIRONMENTAL & SOCIAL Environmental & Social Assessment According to the E/S Specialist are there changes proposed to the operation’s design that No would impact the Bank’s E&S assessment?” Page 4 The World Bank Accelerating Sustainable & Clean Energy Access Transformation Program Using the Multiphase Programmatic Approach (P180547) ANNEX 1. Revised ASCENT MPA Implementation Plan This is an update to the ASCENT MPA Implementation plan dated November 28, 2023. This update replaces Annex 1 of the Program Appraisal Document for ASCENT MPA (PAD00136, November 2023). The implementation plan in Table A1.1 includes Eswatini and revises the estimated IDA allocation across phases (approved, proposed, or prospective) while maintaining the approved IDA financing envelope of US$5 billion for the ASCENT MPA. The MPA anticipates that up to 21 countries in the Eastern and Southern Africa (AFE) region will participate in ASCENT Program. The estimated amounts for IDA countries, shown in Table 1, are derived from a model developed by the World Bank. These are based on: (i) estimated costs of the electrification needs derived from unelectrified populations; (ii) pace of connections based on recent performance; and (iii) absorption capacity for additional IDA funding for energy access, based on the size and performance of current or recent energy access operations. In addition, IBRD countries with energy access deficits (Botswana, Namibia, and South Africa) may participate in the Program to access climate finance, carbon financing platforms and the private sector dialogue. Table A1.1: Estimated IDA Allocation for All Phases (Approved*, Proposed#, and Prospective) Country US$ million Country US$ million COMESA Platform 50* TDB Regional facility 275* Rwanda 300* Tanzania 300* Somalia 100* Sao Tome and Principe 38* Burundi 100* Burundi AF 50* Malawi 250* Eswatini 39# Comoros 30 Zambia 200 Democratic Republic of Congo 400 Madagascar 320 Ethiopia 500 Mozambique 500 Kenya 450 South Sudan 100 Lesotho 37 Uganda 450 Future Regional Facilities 586 Total Approved and Proposed US$1,502 million Total Prospective US$3,498 million NOTE: The Articles of Agreement of IBRD and IDA (IBRD Article III, Section IV, and IDA Article V, Section 1 (d)) require that before making IBRD/IDA financing, a report of a Statutory Committee (StatCom) be completed. The StatCom must include the signature of a representative of the member country where the project is located. Although the Articles do not require that a StatCom be made available before the EDs approve Bank financing, it has been a long-standing practice that StatComs are obtained before the EDs decide on Bank financing. However, to attain greater agility and efficiency in the processing of this MPA, following the precedent set by the global MPA for the “COVID-19 Strategic Preparedness and Response Program” (P173789), Management proposes to obtain the StatCom from each member state benefiting from this ASCENT MPA financing before the funds are committed by Management (i.e., before the legal agreement is signed) with respect to each such member country. Page 5 The World Bank Accelerating Sustainable & Clean Energy Access Transformation Program Using the Multiphase Programmatic Approach (P180547) ANNEX 2. Progress Update for ASCENT Phases 1-8 Phase ISR rating Progress (PDO/IP) 1 S/S ASCENT COMESA establishes a Regional Energy Access Acceleration Platform, aimed at COMESA increasing access to sustainable clean energy in AFE through digitalization, project P180547 development, policy advisory support, and capacity building. ASCENT COMESA became effective on April 5, 2024. The Project Implementation Unit (PIU) is in place with qualified staff and is functioning well. Further strengthening in new technical areas, including digitalization and carbon finance, is in process. In June 2024, COMESA organized a launch of ASCENT, with participation of 16 existing and prospective ASCENT countries (as per Annex 1), on which basis workstreams on digitalization, climate finance and advisory support to both the governments and the private sector were prioritized. These are all now under implementation. Specifically, COMESA is setting up a platform to support DRE and clean cooking companies with technical assistance aimed at helping companies to access financing, including equity. In addition, COMESA is providing support to countries for ASCENT Phases preparation and implementation, policy and regulatory aspects, as well as digitalization in order to increase efficiency and pace of energy access operations. The regional ASCENT D-MRV platform will allow aggregation of results and relevant data in real time, enabling more efficient M&E processes, increasing transparency, reducing transaction costs, and creating opportunities for additional financing mobilization, including the generation of high integrity emission reductions through carbon markets. 2 S/S ASCENT Rwanda focuses on increasing access to grid electricity, enhancing the reliability Rwanda of electricity services, increasing access to off-grid electricity, clean cooking solutions, P180575 and productive use of energy and technical assistance, institutional capacity building, and implementation support. All disbursement conditions have been met, and initial disbursement of US$10.98 million executed. Procurement is underway under Component 1: Increasing Access to Electricity, and Component 2: Enhancing the Reliability of Electricity Services for US$93 million and bidding documents are in preparation for additional US$38 million. Result-based financing under Component 3: Increasing Access to Off-Grid Electricity, Clean Cooking Solutions, and Productive Use of Energy is about to be launched pending an update based on findings from a market assessment, which has been finalized. An assessment is underway to explore options to develop an Integrated result-based financing (RBF) digital platform, with the possibility to integrate with the ASCENT’s regional D-MRV platform. Co-financing from AIIB in the amount of US$100 million became effective in August 2024. 3 S/S ASCENT Sao Tome and Principe (STP) focuses on on-grid and off-grid electricity Sao Tome expansion towards the goal of universal electricity access, while scaling up solar PV and generation through common infrastructure and strengthening institutional capacity and Principe governance in the energy sector. The project is effective and US$6 million (15.8 percent) P177099 IDA has been disbursed. For on-grid investments under Component 1, the process of contracting an Owner Engineer, and for off-grid investments, the process of contracting United Nations Development Program (UNDP) are underway, both contracts expected to be in place in Q3 FY25. For the solar scale-up under Component 2, an Owner Engineer has been acquired and procurement for the enabling common infrastructure (tenders launched or in advanced stages of preparation) and transaction advisors is ongoing. ASCENT STP has secured co-financing from trust funds of US$9.7 million and AfDB of Page 6 The World Bank Accelerating Sustainable & Clean Energy Access Transformation Program Using the Multiphase Programmatic Approach (P180547) US$13 million and is collaborating with IFC on complementary solar photovoltaic (PV) investments. 4 MS/MS ASCENT Somalia is increasing access to clean energy through private sector participation Somalia in Somalia by scaling up solar PV and battery energy storage systems (BESS) and P181341 rehabilitating and reinforcing electricity distribution networks for the private Energy Service Providers (ESPs) serving Mogadishu and other urban areas, while building energy sector’s institutional capacity. The Government has signed the Memoranda of Understanding (MOUs) with several ESPs and is finalizing feasibility studies for the agreed Solar PV and BESS for Mogadishu area. 5 S/S ASCENT Tanzania Program-for-Results (PforR) builds on lessons learned from the Tanzania ongoing implementation of the Tanzania Rural Electrification Expansion Program P179631 (P153781) and focuses on grid densification activities under the Rural Grid Access Program. In addition, the financing supports operationalization of the Renewable Energy Investment Facility under the Rural Energy Fund to enhance support under the Government Program, as well as the development of the Standard Financing Framework for Small Power Producers. The effectiveness delay will not affect the PforR implementation and results as it has not been caused by PforR-related issues, and the ability to deliver electricity connections under the Program has not been impacted. The Independent Verification Agent (IVA) has reviewed progress over the period 2022-2023 and confirmed approximately 150,000 connections that would contribute towards disbursement-linked indicator (DLI1) under ASCENT Tanzania. Additional some 400,000 connections that would contribute to DLI1 have been reported under the Rural Energy Agency (REA) 2023-2024 Annual Report but are pending verification by the IVA. 6 S/S ASCENT TDB has established the ASCENT Regional Energy Access Financing Platform TDB (ASCENT-REAF) as a key part of ASCENT’s financing infrastructure to scale up DRE and P181328 clean cooking sectors and mobilize private and commercial capital. This is done through: (i) lending to DRE and clean cooking companies, (ii) result-based financing for frontier markets, and (iii) technical assistance, tools, and innovation. An initial pipeline of more than 70 DRE companies and three financial intermediaries has been developed for potential TDB and Trade and Development Fund (TDF) lending under Component 1 of the project. Of these, TDB and TDF are in active discussions with 33 companies, with several potential deals under consideration, and the first transaction expected to be concluded in Q3 FY25. The design of the results-based grant program under Component 2 has been concluded, and TDF is expected to launch RBF in Q3 FY25. TDB is also acquiring a digital management and MRV platform, which will allow it to improve efficiency in managing and monitoring its DRE and clean cooking portfolios. The project has met all disbursement conditions. ASCENT TDB aims to mobilize an additional US$400 million financing, of which US$300 million from the private sector. TDB has secured trust fund co-financing from ESMAP in the amount of US$19 million, which has been declared effective, for proof of concept of regional RBF. Additional RBF are being mobilized, including from GCF. The Norwegian Agency for Development and Cooperation (NORAD) and TDB are working towards a partial risk guarantee for the DRE portfolio. 7 S/S ASCENT Burundi aims at expanding access to electricity for households, enterprises, and Burundi public institutions in Burundi by supporting rehabilitation, reinforcement, and P181494 modernization of the distribution network of Burundi’s national utility REDIGESO, together with its extension and densification of connections, while at the same time supporting a private sector distribution pilot (implemented by Weza Power). It also supports improved governance and institutional capacity of the energy sector. The project was approved in June 2024 and has been effective since November 11, 2024. Progress has been made with both PIUs (REDIGESO and Weza) established and Page 7 The World Bank Accelerating Sustainable & Clean Energy Access Transformation Program Using the Multiphase Programmatic Approach (P180547) procurement initiated. Additional Financing of US$50 million was approved on December 19, 2024, bringing the total IDA financing for Burundi to US$150 million, envisaged under ASCENT MPA (ASCENT MPA PAD, Annex 1). The Additional Financing will further increase the number of connections to 1.2 million through scaling up the private sector approach, while also advancing reinforcement and modernization of the national grid. ASCENT Burundi has secured co-financing from EIB, EU, AFD, and the Government in the amount of US$94.9 million and features close collaboration with IFC and MIGA on the private sector distribution pilot, contributing to private sector mobilization. 8 ASCENT Malawi was approved on December 20, 2024. The project will scale up Malawi electricity through last mile grid connections and off-grid solutions, as well as expanding P502464 access to clean cooking and providing energy access to schools and health facilities. Page 8 The World Bank Accelerating Sustainable & Clean Energy Access Transformation Program Using the Multiphase Programmatic Approach (P180547) ANNEX 3. ASCENT Eswatini (Phase 9, P508960) Task Team Leaders: Miarintsoa Vonjy Rakotondramanana Core Team: Leesle Hong, Aimonchok Tashieva, Bingying Wu, Dana Rysankova, Fowzia Ibrahim Hussein, George Daniel, Jean Owino, Johanna Martina Whitfield, Meskerem Legesse, Monali Ranade, Raima Oyeneyin, Tandile Gugu Zizile Msiwa, Temwanani Karen Phiri, Yvonne Soglo, Nomagugu Goodness Khumalo, Shirmila Bellur, Martin Laplane DATASHEET BASIC INFORMATION Project Operation Name Beneficiary(ies) Eswatini Accelerating Sustainable and Clean Energy Access Transformation in Eswatini (ASCENT Eswatini) Environmental and Social Risk Operation ID Financing Instrument Classification Investment Project P508960 Moderate Financing (IPF) @#&OPS~Doctype~OPS^dynamics@padmpaprocessing#doctemplate Financing & Implementation Modalities [✓] Multiphase Programmatic Approach (MPA) [ ] Contingent Emergency Response Component (CERC) [ ] Series of Projects (SOP) [✓] Fragile State(s) [ ] Performance-Based Conditions (PBCs) [✓] Small State(s) [ ] Financial Intermediaries (FI) [✓] Fragile within a non-fragile Country [ ] Project-Based Guarantee [ ] Conflict [ ] Deferred Drawdown [ ] Responding to Natural or Man-made Disaster [ ] Alternative Procurement Arrangements (APA) [ ] Hands-on Expanded Implementation Support (HEIS) Page 9 The World Bank Accelerating Sustainable & Clean Energy Access Transformation Program Using the Multiphase Programmatic Approach (P180547) Expected Approval Date Expected Closing Date Expected Program Closing Date 28-Nov-2023 31-Dec-2030 31-Dec-2030 Bank/IFC Collaboration Joint Level Yes Complementary or Interdependent project requiring active coordination @#&OPS~Doctype~OPS^dynamics@padmpa#doctemplate MPA Program Development Objective To increase access to sustainable and clean energy in Eastern and Southern Africa MPA FINANCING DATA (US$, Millions) MPA Program Financing Envelope 5,415.00 Components Component Name Cost (US$) Digital Monitoring, Reporting and Verification for Energy Access & Climate 5,000,000.00 Finance Project Preparation Facility 25,000,000.00 Advisory support Facility 10,000,000.00 Knowledge, Skills and Consumer Engagement 5,000,000.00 Project management and capacity building support to COMESA Secretariat 5,000,000.00 Organizations Borrower: Common Market for Eastern and Southern Africa (COMESA) Implementing Agency: Common Market for Eastern and Southern Africa (COMESA) Secretariat MPA FINANCING DETAILS (US$, Millions) Page 10 The World Bank Accelerating Sustainable & Clean Energy Access Transformation Program Using the Multiphase Programmatic Approach (P180547) MPA Program Financing Envelope: 5,415.00 of which Bank Financing (IBRD): 0.00 of which Bank Financing (IDA): 5,000.00 of which Other Financing sources: 415.00 @#&OPS~Doctype~OPS^dynamics@padfinancingsummary#doctemplate PROJECT FINANCING DATA (US$, Millions) Maximizing Finance for Development Is this an MFD-Enabling Project (MFD-EP)? Yes Is this project Private Capital Enabling (PCE)? Yes SUMMARY Total Operation Cost 50.00 Total Financing 50.00 of which IBRD/IDA 50.00 Financing Gap 0.00 DETAILS World Bank Group Financing International Development Association (IDA) 50.00 IDA Grant 50.00 IDA Resources (US$, Millions) Guarantee Credit Amount Grant Amount SML Amount Total Amount Amount Regional 0.00 50.00 0.00 0.00 50.00 Total 0.00 50.00 0.00 0.00 50.00 Page 11 The World Bank Accelerating Sustainable & Clean Energy Access Transformation Program Using the Multiphase Programmatic Approach (P180547) @#&OPS~Doctype~OPS^dynamics@paddisbursementprojection#doctemplate Expected Disbursements (US$, Millions) WB Fiscal Year 2024 2025 2026 2027 2028 2029 2030 2031 Annual 2.00 12.00 18.00 8.00 5.00 2.00 2.00 0.86 Cumulativ e 2.00 14.00 32.00 40.00 45.00 47.00 49.00 49.86 @#&OPS~Doctype~OPS^dynamics@padclimatechange#doctemplate PRACTICE AREA(S) Practice Area (Lead) Contributing Practice Areas Energy & Extractives Climate Change; Finance, Competitiveness and Innovation CLIMATE Climate Change and Disaster Screening Yes, it has been screened and the results are discussed in the Operation Document @#&OPS~Doctype~OPS^dynamics@padrisk#doctemplate SYSTEMATIC OPERATIONS RISK- RATING TOOL (SORT) Risk Category Rating 1. Political and Governance  2. Macroeconomic  3. Sector Strategies and Policies  Page 12 The World Bank Accelerating Sustainable & Clean Energy Access Transformation Program Using the Multiphase Programmatic Approach (P180547) 4. Technical Design of Project or Program  5. Institutional Capacity for Implementation and Sustainability  6. Fiduciary Financial Management Risk rating from Specialist:  Moderate as of 30-Aug-2024 Procurement Risk rating from Specialist: Moderate as of 02-Jun-2024 7. Environment and Social Environment Risk rating from Specialist:  Substantial Substantial as of 25-Apr-2024 Social Risk rating from Specialist: Substantial as of 25-Apr-2024 8. Stakeholders  9. Overall  Overall MPA Program Risk  Moderate @#&OPS~Doctype~OPS^dynamics@padcompliance#doctemplate POLICY COMPLIANCE Policy Does the project depart from the CPF in content or in other significant respects? [ ] Yes [✓] No Does the project require any waivers of Bank policies? [ ] Yes [✓] No ENVIRONMENTAL AND SOCIAL Page 13 The World Bank Accelerating Sustainable & Clean Energy Access Transformation Program Using the Multiphase Programmatic Approach (P180547) Environmental and Social Standards Relevance Given its Context at the Time of Appraisal E & S Standards Relevance ESS 1: Assessment and Management of Environmental and Social Risks and Relevant Impacts ESS 10: Stakeholder Engagement and Information Disclosure Relevant ESS 2: Labor and Working Conditions Relevant ESS 3: Resource Efficiency and Pollution Prevention and Management Relevant ESS 4: Community Health and Safety Relevant ESS 5: Land Acquisition, Restrictions on Land Use and Involuntary Resettlement Relevant ESS 6: Biodiversity Conservation and Sustainable Management of Living Natural Relevant Resources ESS 7: Indigenous Peoples/Sub-Saharan African Historically Underserved Relevant Traditional Local Communities ESS 8: Cultural Heritage Relevant ESS 9: Financial Intermediaries Not Currently Relevant NOTE: For further information regarding the World Bank’s due diligence assessment of the Project’s potential environmental and social risks and impacts, please refer to the Project’s Appraisal Environmental and Social Review Summary (ESRS). @#&OPS~Doctype~OPS^dynamics@padlegalcovenants#doctemplate LEGAL Legal Covenants Sections and Description Section I.A.2(b) of Schedule 2. The Recipient shall not later than one hundred eighty (180) days after the Effective Date of this Agreement, or (i) one hundred eighty 180 (180) days after the Effective Date of STP Financing Agreement, or (ii) one hundred eighty (180) days after the Effective Date of Tanzania Financing Agreement (in each case, whichever shall be the later date), establish a memorandum of understanding with STP, and Tanzania, respectively, outlining the collaboration and coordination arrangements, satisfactory to the Association, that will enable either STP, or Tanzania (as the case may be) to participate in the regional energy access acceleration platform on the same terms as the Recipient’s member states. To this end, it is understood that execution of such memorandum of understanding, in each case, is subject to: (i) the intention of either Tanzania, or STP to enter into said memorandum of understanding with the Recipient; and (ii) fulfilment by: (A) Tanzania of similar obligation under the Tanzania Financing Agreement, or (B) STP of similar obligation under the STP Financing Agreement. Page 14 The World Bank Accelerating Sustainable & Clean Energy Access Transformation Program Using the Multiphase Programmatic Approach (P180547) @#&OPS~Doctype~OPS^dynamics@padconditions#doctemplate Conditions Type Citation Description Financing Source The Recipient has prepared and adopted the Project Effectiveness Section V. 5.01(a) Operations Manual, in form IBRD/IDA and substance satisfactory to the Association. The Recipient has hired to the Project Implementation Unit, an environmental expert, a social expert, and a stakeholder Effectiveness Section V. 5.01(b) engagement/communicatio IBRD/IDA n expert, all with experience, qualifications and terms of reference, satisfactory to the Association. The Recipient has, consistent with the requirements of ESS 10, prepared, disclosed, consulted upon, and Effectiveness Section V. 5.01(c) adopted the Stakeholder IBRD/IDA Engagement Plan and Labor Management Procedures, in form and substance satisfactory to the Association. The Recipient has established the grievance mechanism for the Project, Effectiveness Section V. 5.01(d) IBRD/IDA in form and substance satisfactory to the Association. No withdrawal shall be made under Category (2) Disbursement Section III.B.1 of Schedule 2 unless and until the IBRD/IDA Recipient has: (i) hired a PPF consultant with Page 15 The World Bank Accelerating Sustainable & Clean Energy Access Transformation Program Using the Multiphase Programmatic Approach (P180547) environmental health and safety expertise and other qualifications, experience, and terms of reference, satisfactory to the Association; (ii) designed the Project Preparation Facility consistent with the requirements of ESS1, and (B) issued procedures, acceptable to the Association to embed environmental and social health safety requirements (ESHS) in advisory services provided, all in form and substance satisfactory to the Association; and (ii) included in its planning of the technical assistance under the Project, adequate assessment of environmental and social implications, and has provided in such planning the advice for addressing such implication under the technical assistance consistent with the requirements of the ESF. Page 16 The World Bank Accelerating Sustainable & Clean Energy Access Transformation Program Using the Multiphase Programmatic Approach (P180547) ASCENT Eswatini will be Phase 9 of the ASCENT MPA, with financing from IDA (US$39 million equivalent), IBRD (US$51 million equivalent), and IBRD Surplus-Funded Livable Planet Fund (US$10 million). A. Context 1. The Kingdom of Eswatini (Eswatini) is a small open economy in Southern Africa with a land area of 17,364 km2 and a population of 1.2 million. The country is largely mountainous, bordered by Mozambique and South Africa. Approximately 75 percent of the population live in rural areas. Poverty, inequality and unemployment remain the most stubborn primary development challenges for Eswatini and overcoming these is a top priority for the Government of the Kingdom of Eswatini (GoKE). Poverty levels have remained unchanged over the last five years, with approximately 36 percent of the population estimated to be living under the international US$ 2.15 poverty line. Eswatini is facing multiple climate challenges, including high exposure to floods, wildfire, droughts and to a lesser extent to cyclones. As of 2021, 58 percent of the population in Eswatini was exposed to climate-related hazards. 2. GoKE’s strategies and plans prioritize achieving universal electricity access, including the National Energy Policy 2018 (NEP 2018) and the Energy Master Plan 2050, which also guides the country’s just transition towards net zero goal by 2050. The Ministry of Natural Resources and Energy (MNRE) is responsible for policy development and implementation, while Eswatini Electricity Company (EEC) is a state-owned and vertically integrated utility in charge of electricity generation, transmission, and distribution. EEC’s performance including its financial health, operational efficiency, and a commitment to expanding access to electricity has been strong compared to its peers in Sub-Saharan Africa. The electricity supply industry is regulated by the Eswatini Energy Regulatory Authority (ESERA). 3. Eswatini has a relatively high electricity access rate at 82 percent, but scaling up of investments is needed to achieve universal access by 2030. Eswatini’s 82 percent access rate in 2023 is high by comparison to 51 percent electrification rate overall in Sub-Saharan Africa. This relatively high level of access is in large part due to the success of the Rural Electrification Program (REP). The REP, which is capitalized through a levy on electricity tariffs via the Rural Electrification Fund (REF), has resulted in more than four-fold increase in the household customers of EEC, the national electric utility - from 59,600 customers in 2008 to 249,014 in 2023. There are, however, significant disparities in electrification across Eswatini’s four administrative regions, Shiselweni being the least electrified region with only 48 percent of population with electricity access. Moreover, the pace of electrification has slowed down in recent years, as the connection costs in the last-mile electrification efforts are rising, resulting in a funding gap that REF cannot meet through its financing alone. To achieve the 2030 universal access goal, more concessional financing is needed to reach the increasingly poorer and more remote households, while also ensuring reliability of the service. 4. Investments in expanding electricity access need to be complemented with investments to maintain and increase reliability and quality of electricity service on the grid. Eswatini significantly depends on electricity imports due to insufficient domestic generation. According to EEC, the average imported energy makes up for 60 percent of total energy supplied over 2019-2024, while EEC on average contributed 20 percent to the national energy supply. The dependency on import is further compounded by the inability of EEC’s hydro power stations to provide firm power, due to hydrology and the lack of water storage, resulting in significant variations in annual domestic generation output. The rapid electricity demand also puts a strain on existing grid capacity, due to the lengthy 11 kV distribution networks, contributing to lack of reliability. Eswatini’s high exposure to climate risks, affecting power generation, transmission and distribution, is also threatening progress to provide reliable electricity. 5. GoKE is prioritizing investments in strengthening availability and reliability of electricity service. This includes increasing domestic renewable energy generation with private sector participation namely through solar and biomass Independent Power Producers (with a potential support from IFC), and through expanding hydro generation. These investments will allow Eswatini to continue reaping benefits of regional electricity trade while boosting energy security Page 17 The World Bank Accelerating Sustainable & Clean Energy Access Transformation Program Using the Multiphase Programmatic Approach (P180547) with locally sourced renewable energy generation. Meanwhile, with support from the World Bank-financed Eswatini Network Reinforcement and Expansion Project (NRAP, P160177), EEC has been investing in constructing new 132kV transmission lines and associated substations, which will significantly improve reliability. Further expansion of grid network, however, will require additional grid reinforcements, as identified in EEC’s 2022–2032 network expansion plan. 6. To achieve universal access to electricity by 2030, the GoKE needs to deliver 50,000 new household connections, benefiting about 200,000 people. This is about 10,000 new household connections per year, a 20 percent increase compared to 249,014 in 2023. To deliver on this target, Eswatini needs to (i) maintain the pace of on-grid connections while improving on-grid service reliability, and (ii) scale up the pace of off-grid connections as a least-cost option in short to medium term. Based on 2022 geospatial electrification analysis, this will require 35,000 on-grid and 15,000 off-grid connections. The total investment requirement is estimated at US$100 million. 7. Through the ASCENT Eswatini project, the GoKE is expected to achieve universal access to electricity by 2030. The project is co-financed by a grant from the IBRD Surplus-Funded Livable Planet Fund (LPF1), to enable the government to achieve this goal – by reaching the remaining 18 percent unelectrified population that is also the poorest, vulnerable, and remotely located. The project addresses two of the global public goods themes: (1) Climate Change mitigation and adaptation and (2) Energy Access. The project will leverage ASCENT’s lessons learned and access to its regional platforms, while building on the success and lessons of the ongoing US$40 million World Bank-financed NRAP project (P166170), which is financing grid electrification and reinforcements. The project will leverage synergies with other sectors, including digital – e.g. by promoting the use of dark fiber in the power network run by EEC and by including installation of fiber optical cables during construction of new electrical lines. B. Relevance to Higher-Level Objective 8. The project is aligned with the World Bank Group’s Eswatini Country Partnership Framework (CPF) for FY2024- 2028 (Report No. 175427-SZ), which has the overarching goal of increasing access to electricity services and improving energy security, as well as bridging gaps in services critical to sustainable and inclusive development, especially in rural areas. This project contributes directly to the CPF’s High-Level Outcome 1 by addressing the CPF Objective 3 “increased access to electricity services”. This objective recognizes the importance of diversifying energy sources to ensure energy security, investing in more reliable energy infrastructure, and improving access to electricity, especially in the rural area. 9. The project is aligned with the World Bank’s Evolution priorities, its mission to end extreme poverty and boost shared prosperity on a livable planet, Mission 300 agenda, and the regional priorities of Eastern and Southern Africa. The project will contribute to ASCENT MPA’s target to provide electricity access to 100 million people in AFE, thereby contributing to M300 target of providing new electricity access to 300 million people in Africa. The Project is directly aligned with the World Bank’s Global Challenge Program on Energy Transition and Access. C. Project Description 10. The Project Development Objective (PDO) is to increase access to sustainable and clean energy in Eswatini. It is aligned with the ASCENT MPA PrDO: increase access to sustainable and clean energy in Eastern and Southern Africa. 11. ASCENT Eswatini project will contribute to the following MPA PrDO indicators: • Number of people provided with access to electricity (number, disaggregated by gender and youth); • Greenhouse Gas Emission Reductions (metric tCO2e/year). Page 18 The World Bank Accelerating Sustainable & Clean Energy Access Transformation Program Using the Multiphase Programmatic Approach (P180547) Table A3.1. Results Framework Indicators Baseline End target PDO-level indicator People provided with access to electricity (Number of people) 0 200,000 People provided with access to electricity - Female (Number of people) 0 102,000 People provided with access to electricity - Youth (Number of people) 0 50,000 Greenhouse gas emissions avoided (Metric tons/year) 0 246,029 Intermediate results (IR) indicator System Average Interruption Duration Index (SAIDI) (Minutes) 25,228 17,659 Total length of new medium voltage (MV) and low voltage (LV) lines 0 600 constructed (Kilometers) Substation constructed (Number) 0 2 Substation upgraded (Number) 0 1 System Average Interruption Frequency Index (SAIFI) (Number) 49.7 34.8 Female-headed households provided with access to electricity (Number) 0 20,000 Households provided with access to electricity through grid connections 0 35,000 (Number) Households provided with access to electricity through off-grid solar 0 15,000 connections (Number) Number of households using electricity (Number) 249,014 299,014 Private capital mobilized or enabled for clean energy access (Amount, US$) 0 1,500,000 Digital Monitoring, Reporting, and Monitoring System adopted (Yes/No) No Yes Key sector study to increase energy security completed (Yes/No) No Yes Communication strategy developed (Yes/No) No Yes Communication campaign completed (Yes/No) No Yes Increased number of women with STEM background employed at EEC (Number) 0 30 Sector and project capacity building activities implemented (Number) 0 10 Norm and Standard in the off-grid area developed under the project (Yes/No) No Yes Key study to improve sector financial viability completed (Yes/No) No Yes GRM number of cases/complaints resolved (percentage) 0 90 Contractors have conducted at least one stakeholder meeting in project areas No Yes (Yes/No) Capacity of the electrical contractors selected by EEC to support No Yes implementation of last mile electrification strengthened (Yes/No) Page 19 The World Bank Accelerating Sustainable & Clean Energy Access Transformation Program Using the Multiphase Programmatic Approach (P180547) Efficiency study to improve operational efficiency and effectiveness of EEC No Yes approved (Yes/No) Cost of service study and financial viability assessment completed by EEC and No Yes approved by EEC Board and Eswatini Energy Regulatory Authority (ESERA) (Yes/No) 12. Project’s components and activities described below are fully aligned with the scope of activities under the ASCENT MPA. ASCENT Eswatini is drawing on ASCENT MPA’s menu of options under all of its three pillars: (i) Pillar 1: Regional and National Platforms to accelerate energy access (ASCENT Eswatini, Component 3), (ii) Pillar 2: Expanding grid electrification (ASCENT Eswatini, Component 1 and Subcomponent 2.1), and (iii) Pillar 3: Scaling up Distributed Renewable Energy and Clean Cooking (ASCENT Eswatini, Subcomponent 2.2). In addition, ASCENT Eswatini would benefit from ASCENT regional platforms, including from technical assistance support under ASCENT COMESA, including for digitalization and setting up digital MRV, and from ASCENT TDB to provide complementary financing for off-grid solar companies engaged under Subcomponent 2.2. Component 1: Networks reinforcement (US$43 million, of which US$17 million equivalent IDA; US$26 million equivalent IBRD) 13. This component will support EEC to improve reliability of its networks to support last-mile electrification. Specific activities will include: (a) construction of new substations and feeders; (b) construction of new medium voltage (MV, up to 66 kV) and low voltage (LV) distribution lines; (c) upgrade of existing MV lines and substations; (d) installation of remotely controlled protection equipment (auto-reclosers); (e) installation of transformers, (f) protection scheme, metering, and system operation and control enhancement, and (g) installation of fiber optical cables. All equipment will integrate higher standards to enhance resilience against climate-related hazards, such as floods and higher temperatures. These improvements are part of a comprehensive approach to building a more robust and climate-resilient power infrastructure. This component will also finance the hiring of an Owner’s Engineer to support EEC in the design of network reinforcement activities and supervision of contracts implementation. Component 2: Electricity Access Expansion (US$56 million, of which US$17 million equivalent IDA; US$20 million equivalent IBRD; US$9 million REF; US$10 million LPF1) 14. This component will finance both on-grid and off-grid electrification activities to support the GoKE in achieving universal access to electricity by 2030 by connecting 50,000 households. The component will leverage digital tools/platforms to support implementation. Any personal data collected under the project regarding connection of households to on-grid and off-grid electricity will be done in accordance with the existing laws. Subcomponent 2.1: On-grid peri-urban and rural electrification for the last mile connectivity (US$47 million, of which US$14 million equivalent IDA; US$17 million equivalent IBRD; US$6 million equivalent REF; and US$10 million LPF1) Subcomponent 2.1.1: On-grid last mile connectivity (US$37 million, of which US$14 million equivalent IDA; US$17 million equivalent IBRD; and US$6 million equivalent REF) This subcomponent will finance grid connections for non-electrified households and public facilities in peri-urban and rural areas of Eswatini. Specific activities which will be financed under this subcomponent include: (a) 11 kV lines and low voltage reticulations; (b) supply and installation of ready-boards for households who are unable to afford the cost of household wiring; (c) capacity building for electrical contractors; and (d) conducting a cost-of- service study and financial viability assessment model. The equipment will integrate higher standards to enhance Page 20 The World Bank Accelerating Sustainable & Clean Energy Access Transformation Program Using the Multiphase Programmatic Approach (P180547) resilience against climate-related hazards. It is estimated that about 35,000 new households will be connected at an average cost per connection of US$900 (the estimated cost per connection with and without extension of 11 kV lines are respectively between US$1,000-1,300 and US$350-500). The subcomponent will also finance an Independent Verification Agent (IVA) for the verification of the Performance Based conditions (PBCs) linked to Subcomponent 2.1.2. Subcomponent 2.1.2: On-grid last mile connectivity with PBCs (US$10 million LPF1) This subcomponent will finance the same investments as Subcomponent 2.1.1 but its implementation will be reinforced by PBCs, which will address critical issues that have been slowing down implementation of electrification efforts in Eswatini, including under Network Reinforcement and Access Project (NRAP). This includes: (i) insufficient institutional capacity of electrical contractors that support EEC in last-mile electrification, including in Occupational Health and Safety (OHS) related activities and operations, (ii) inefficiencies in some areas of EEC’s operations, and (iii) absence of EEC’s cost-of-service study and financial viability model. To address these challenges, implementation of specific actions is included as prerequisites for accessing the LPF1 grant funding allocated to the project under this subcomponent. By linking the disbursement of the LPF1 grant funding to these measures, the GoKE aims to ensure that EEC’s operational efficiency and effectiveness and its financial viability are improved and institutional capacity of electrical contractors is strengthened to support implementation of last mile electrification. The PBCs are summarized in Table A3.3. Subcomponent 2.2: Off-grid electrification: (US$9 million, of which US$3 million equivalent IDA; US$3 million equivalent IBRD; US$3 million equivalent REF) Subcomponent 2.2.1: Performance-based grants and catalytic grants (US$7 million, of which US$2.5 million equivalent IDA; US$2 million equivalent IBRD; and US$2.5 million equivalent REF) This subcomponent will finance performance-based grants and catalytic grants to eligible qualified off-grid solar service providers who will provide electricity access to households, businesses, farmers that are not reached by the grid. Performance-based grants will be disbursed against key results and milestones, including the installation of quality-verified off-grid solar system, as well as satisfactory service provision, incentivizing service-oriented models, such as pay-as-you-go and energy-as-a-service. Gender responsive mechanisms will be considered to address affordability gap and needs of female-headed households with low income. Catalytic grants will support additional market development activities, such as customer outreach, setting up of service centers, support for productive uses etc. The payments will be carried out against verified results and milestones. EEC, with support from a Consultant Firm, will prepare detailed Operating Guidelines for the implementation of the grant scheme, which will include eligibility criteria for off-grid solar providers and off-grid solar products including the use of Verasol quality standards, target population, grant amounts, application and approval process, customer service/after-sale support obligations, compliance with Environmental and Social Framework (ESF) requirements, and monitoring, reporting and verification (MRV) procedures. Contracting a Consultant Firm and adoption of Operating Guidelines will be a disbursement condition for Subcomponent 2.2.1. Subcomponent 2.2.2: Off-grid design and implementation support (US$2 million, of which US$0.5 million equivalent IDA; US$1 million equivalent IBRD; and US$0.5 million equivalent REF) This subcomponent will finance technical assistance activities to support the design and implementation of off- grid electrification activities. To support implementation, EEC will contract: (i) a qualified Consultant Firm to support the detailed design and implementation of the grant scheme, (ii) a service provider for establishing a digital MRV (d-MRV) platform (which will be integrated with ASCENT’s regional d-MRV), and (iii) an independent verification agent (IVA) no later than 18 months after effectiveness. Page 21 The World Bank Accelerating Sustainable & Clean Energy Access Transformation Program Using the Multiphase Programmatic Approach (P180547) Component 3: Technical assistance (TA), studies, capacity building, and implementation support (US$10 million, of which US$5 million equivalent IDA and US$5 million equivalent IBRD) 15. This Component will support various TA activities on sector sustainability, project implementation, and capacity building, including: (i) overall improvement of sector climate resilience and sustainability through integration of more renewable energy to achieve universal access to clean energy; (ii) key sector studies to enhance security of supply, network reliability and efficiency, including the methodology framework guiding implementation of a cost-of-service study, as well as the implementation of the cost-of-service study in accordance with the methodology framework; (iii) activities to improve EEC’s operational efficiency and effectiveness and to ensure its financial viability given that the last mile electrification of predominantly low-income households will put financial pressures on EEC. This includes support for development of productive uses and a connection fee policy; (iv) policy and regulatory measures, including norms and quality standards, to incentivize private sector investments in off-grid solar systems while ensuring consumer protections, (v) implementation support for procurement, contract management and supervision, financial management, monitoring and evaluation, environmental and social aspects, citizen engagement and gender, including development and implementation of a communication strategy and campaign, and TA to engage the community on the benefits, safety and commercial aspects of the electricity services and for appropriate handling and disposal of off-grid solar products at their end of life; and (vi) overall capacity building activities of relevant institutions to strengthen sector capacities. Table A3.2. Project Cost and Financing (in US$ million) Components IDA IBRD LPF1 REF TOTAL funding funding Grant (US$ funding (US$ (US$ Funding million) (US$ million) million) using PBC million) (US$ million) 1. Networks reinforcement: construction of new networks and reinforcement of existing 17 26 - - 43 networks 2. Electrification expansion 17 20 10 9 56 a. On-grid peri-urban and rural electrification: last mile connectivity, i. On-grid last mile connectivity 14 17 6 37 ii. On-grid last mile connectivity with 10 10 PBCs b. Off-grid electrification: 3 3 3 9 i. Performance-based grants and catalytic grants 2.5 2.0 2.5 7.0 ii. Off-grid design and implementation support 0.5 1.0 0.5 2.0 3. Technical assistance, studies, capacity building, and implementation support 5 5 - - 10 Total 39 51 10 9 109 Page 22 The World Bank Accelerating Sustainable & Clean Energy Access Transformation Program Using the Multiphase Programmatic Approach (P180547) D. Project Beneficiaries 16. The project will improve reliability of electricity services and increase access to electricity in Eswatini benefitting an estimated 50,000 households (approximately 200,000 people), especially women who will benefit from directed support for electrification of female-headed households, support for developing productive use energy and support for increasing employment opportunities in the energy sector. In addition, the project will target electrification of public facilities, such as schools and health clinics, benefiting surrounding communities with improved delivery of education and health services, supporting human development outcomes. Existing residential, commercial and industrial customers of EEC will also experience an improvement in the quality of service. E. Institutional and Implementation Arrangements 17. The ASCENT Eswatini will build on the NRAP’s implementation arrangements, using existing structures and capacities built under NRAP. EEC will be the Project Implementing Agency and will manage the project via its Project Implementation Unit (PIU) on behalf of GoKE. In this regard, EEC will be responsible for project fiduciary, environmental and social aspects. A Project Steering Committee comprising the Ministry of Finance, Ministry of Economic Planning and Development, MNRE, and EEC will be established no later than one month after effectiveness to ensure adequate coordination and provide overall policy guidance during project implementation. The Ministry of Finance (MOF) will sign a subsidiary agreement with EEC, based on which MOF will on-lend funds for Component 1 to EEC and on-grant funds for Component 2 and Component 3 to EEC. MNRE, being the primary agency responsible for ensuring that the Government ‘s rural electrification goals are met under the REP, will be closely engaged, providing strategic directions and oversight over project’s Component 2 and 3, as per arrangements detailed out in the Project Implementation Manual (PIM) to be adopted not later than one month after effectiveness. Subcomponent 2.2 will follow Operating Guidelines which will be developed with the support of a qualified Consultant Firm, supporting EEC in design and implementation of the off-grid electrification efforts, as this is a new area for EEC. EEC will also be responsible for monitoring the project’s implementation progress outlined in the Results Framework, with progress reports prepared on a quarterly basis. The verifications of PBCs will be conducted by the IVA, to be procured under Subcomponent 2.1.1. PBCs and their monitoring arrangements are described in Table A3.3. Table A3.3: Performance-based conditions PBC 1: Capacity of the electrical contractors selected by EEC to support implementation of last mile electrification strengthened (June 2026) Formula Upon completion, US$3 million from LPF1 will be disbursed Description EEC needs to develop and adopt a capacity building program including OHS with an implementation Plan for the selected electrical contractors and implemented the first training of the Plan Data Source EEC and selected electrical contractors Verification Agent IVA Procedure IVA to verify whether EEC has developed and adopted the capacity building plan including OHS with an implementation plan. IVA to also verify whether local electrical contractors are selected, and whether the first training is conducted PBC 2: Efficiency study to improve operational efficiency and effectiveness of EEC approved (December 2027) Formula Upon completion, US$3 million from LPF1 will be disbursed Page 23 The World Bank Accelerating Sustainable & Clean Energy Access Transformation Program Using the Multiphase Programmatic Approach (P180547) Description EEC needs to complete an efficiency study: the study needs to be approved by EEC Board and ESERA (Regulator) Data Source EEC and ESERA Verification Agent IVA Procedure IVA to verify whether EEC has completed an efficiency study and proof of EEC Board approval and proof of ESERA approval of the efficiency study PBC 3: Cost of service study and financial viability assessment completed by EEC and approved by EEC Board and ESERA (June 2029) Formula Upon completion, US$4 million from LPF1 will be disbursed Description EEC needs to complete and adopt a cost-of-service study in accordance with the methodology recommended by the ESERA (Regulator) and prepare and adopt a financial viability assessment model and operationalize the model by assigning a department to be responsible for running the model. Data Source EEC and ESERA Verification Agent IVA Procedure IVA to verify whether: (1) EEC to provide the cost-of-service study in accordance with ESERA recommended methodology to the IVA for verification, IVA to verify with ESERA on whether the recommended methodology is followed; (2) EEC to provide proof to IVA of the preparation and adoption of the financial viability assessment model; and (3) EEC to provide the proof that the unit responsible for running the model has been assigned and operationalized. F. Appraisal Summary 18. Technical, Economic and Financial. All investments are fully aligned with ASCENT MPA’s activities as described in ASCENT Program menu of options under ASCENT’s three pillars and are fully aligned with the ASCENT Program’s overall technical, economic and financial analysis. All investment activities and equipment under Components 1 and Subcomponent 2.1 are well known in the electricity industry and proven in Eswatini including under the ongoing NRAP. Subcomponent 2.2 focuses on expanding off-grid energy access to households in underserved areas by deploying stand- alone off-grid systems (solar home systems – SHS), which are also widely used in the AFE region. The off-grid investments under the ASCENT Eswatini project will be guided by Operating Guidelines. The SHS will follow Verasol quality standards to ensure quality and reliability. The project demonstrates economic viability, with an Economic Internal Rate of Return (EIRR) of 16.4 percent and an Economic Net Present Value (NPV) of US$33 million before accounting for GHG benefits. The project's financial viability is evaluated by analyzing the net financial benefits of each component against a financial discount rate of 10 percent. The results of the financial analysis reveal that the on-grid investments have a positive NPV of US$5.5 million. However, the grid reinforcement component has a negative NPV of US$6.9 million. In the context of grid electrification, a negative NPV emphasizes the multifaceted nature of public infrastructure investments, where the economic and social benefits created far exceed immediate financial returns. The financial assessment for the off-grid component yields positive outcomes resulting in an NPV of US$3.58 million. Page 24 The World Bank Accelerating Sustainable & Clean Energy Access Transformation Program Using the Multiphase Programmatic Approach (P180547) 19. Greenhouse gas emissions. The project is expected to have a net greenhouse gas (GHG) impact of around 219,809 tCO2e in avoided emissions during its lifetime with the following breakdown: (i) on-grid electrification – 53,452 tCO2e; (ii) grid reinforcement – 155,053 tCO2e, and (iii) off-grid SHS – 11,304 tCO2e. 20. The project aligns with the goals of the Paris Agreement. The project aligns with Eswatini’s Nationally Determined Contributions (NDC) goal aiming at “Climate proof existing infrastructure, particularly critical infrastructure” and help achieve a low carbon and climate resilient development. The project further aligns with the country’s Adaptation Communication to the UNFCCC calling for adaptation in the infrastructure sector. On mitigation, the operation is universally aligned and follows the World Bank’s guidelines on electricity transmission and distribution activities as well as addressing technical losses. Furthermore, the project aligns with the country’s goal of reaching at least 80 percent renewables in its mix in 10 years. On adaptation, and as highlighted by the country’ detailed climate and disaster risk screening, climate change is expected to increase Eswatini’s vulnerability over the next decades, and more particularly its distribution network which could be significantly impacted by floods and cyclones. These multiple climate risks could jeopardize the PDO achievement. This is why the project incorporates climate resilient measures as part of the rehabilitation and reinforcement of existing networks utilizing weather-resistant materials and designing infrastructure to withstand extreme climate hazards. More specifically, under component 1, underground cables will be used for segments of the network prone to outages from strong winds during the summer and rainy seasons. Underground cables are at least four times more expensive to install and this would increase costs for the component by up to 30 percent. Under Component 2, the project will use Aerial Bundled Cables (ABCs) in areas exposed to strong winds. ABCs offer better resistance to winds and flying debris compared with exposed conductors. Activities under Component 1 are expected to reduce technical losses by 2 percent by the time of the project. Combined, these measures reduce material risks from climate hazards to an acceptable level, ensuring these risks will not have a material impact on the operation and its development objective. 21. Climate and disaster risks. The key risks due to climate change impacts are inundation and droughts. The climate change risks in Eswatini were assessed through the World Bank’s Climate and Disaster Risk Screening Tool, and the three main risks identified were inundation due to extreme precipitation and flooding, extreme temperature, and drought. Between 2020 and 2039, monthly mean temperatures will increase by up to 1.23oC in the hottest months, that is, January to March, and between 2040 and 2059 it is expected that temperatures will rise by up to 2.2oC during the same months. The number of extremely hot days (>40oC) in a year is projected to increase by 2.4 days over the 2020-2039 horizon and rising to 4 days over 2040-2059. Precipitation could increase or decrease by 32.8mm and 34.5mm over 2019-2020. Change in annual rainfall for very wet days is also projected to increase by 159 percent or fall by 117 percent while the projected change in annual severe drought likelihood for 2020-2039 could increase by as much as 29 percent. The design of lines and substations will consider the risks of flooding in the design specifications under each component. Changes in heat will increase cooling demand in the region and increase loading on the line. The lines will have adequate capacity to support the additional demand. Droughts would affect generation capacity at the hydro power stations and in the absence of sufficient alternative energy sources lead to load shedding in the project area and in the entire country. The renewal of the Power Purchase Agreement with Eskom will minimize the impact of such extreme events. 22. Financial Management. Overall, the Financial Management arrangements for the project were assessed as satisfactory, and the residual FM risk is assessed as Moderate. The existing Financial Management arrangements for the PIU were validated to evaluate whether the project financial management arrangements will provide reasonable assurance that World Bank-provided funds are used for the intended purposes. The FM system and arrangements at EEC are capable of producing periodic reports for monitoring the financial aspects of the project. EEC’s FM system will be used for the implementation of the project, with the already laid-down oversight arrangements by MNRE and EEC’s Board. This is based on EEC’s acceptable FM system and capability of the system to produce reliable and regular unaudited interim financial reports (IFRs) and other financial reports. The funds will be disbursed from the World Bank into the Pooled Page 25 The World Bank Accelerating Sustainable & Clean Energy Access Transformation Program Using the Multiphase Programmatic Approach (P180547) Account opened by Ministry of Finance at the Central Bank of Eswatini. Disbursements will be made based on a six-month expenditure forecast. The auditing arrangements are also considered acceptable. EEC has received an unqualified audit opinion for the past three financial years (2023, 2022, and 2021). Assurance that World Bank-provided funds will be used for the purposes intended is provided by ensuring that these funds flow through the same public financial management systems that a country uses for the management of its overall budget, provided these are assessed as being sound overall. Eswatini Electricity Company has been given a mandate by the Government to receive the funds through the Pooled Account in the Central Bank. EEC is currently implementing the NRAP since 2019 and has been recording Satisfactory performance in Financial Management. This is due to the adequacy of the EEC budgeting, accounting, financial reporting, and internal controls and its auditing arrangements. 23. The PIM will specify detailed arrangements for project financial management. This will include: the preparation and submission to the World Bank, within 45 days after the end of the quarter, of quarterly unaudited interim financial reports; the preparation of annual financial statements subject to audit by an independent external auditor acceptable to the World Bank, and the submission of these to the World Bank along with a management letter, no later than six months after the end of each fiscal year. 24. Procurement. All procurement to be financed under the project will be carried out in accordance with the “World Bank Procurement Regulations for IPF Borrowers”, dated September 2023 (Procurement Regulations), the ”Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants”, dated October 15, 2006 and revised in January 2011 and as of July 1, 2016 (Anticorruption Guidelines), and the provisions stipulated in the Legal Agreement. Project procurement will be carried out by the Procurement Unit of EEC. A procurement capacity and risk assessment has been carried out by the World Bank for EEC to review the organizational structure for implementing the project and the interaction between the project’s staff responsible for procurement duties and management of the commission. Based on the experience with the implementation of the ongoing World Bank-funded investment operation in the sector, a Moderate rating is assigned for institutional capacity for implementation. Both the MNRE and EEC have recent experience with IBRD-financed activities. EEC has a good track record of preparing and implementing projects— as demonstrated by the list of projects previously completed. A procurement review conducted by the World Bank concludes that EEC’s processes and procedures for engaging consultants and contractors for distribution works and household connections, supply of electrical materials and powerline surveys are adequate. There are competent professionals in EEC, however, capacity will be strengthened through training, knowledge sharing, and awareness raising. 25. An initial Project Procurement Strategy for Development (PPSD) has been developed to determine the approach to market, the selection methods, evaluation options, and sustainability considerations that may need to be included. The PPSD has considered this and other factors in determining the Procurement Plan, including the packaging of procurements. The market analysis revealed that there is adequate capacity, both in terms of numbers and capability, of local contractors for household connections and distribution works. Under the NRAP, EEC set up three-year multi-supplier framework agreements for electrical contractors, powerline surveys and electrical material and equipment. This approach worked successfully and will be used for this project. The transmission lines, distribution works and household connection packages are considered attractive because their values and complexity is within what has been executed before. The size and complexity of the transmission lines and substations packages are sufficient to attract participation from the international market as has been the case with previous similar projects implemented by EEC. The PPSD will be finalized during implementation. The implementing agency has prepared a Procurement Plan for the first 18 months of implementation. The Plan will be uploaded into the World Bank’s Systematic Tracking of Exchanges in Procurement (STEP) system, that will provide data on procurement activities, establish benchmarks, monitor delays, and measure procurement performance. In terms of contract management, substation and electrical material framework agreements will be monitored closely to ensure timely delivery. EEC will develop key performance indicators for the identified Page 26 The World Bank Accelerating Sustainable & Clean Energy Access Transformation Program Using the Multiphase Programmatic Approach (P180547) contracts and the key performance indicators will be monitored during the actual execution of contracts. The World Bank will provide additional due diligence and independent review of the contract performance of such identified procurements. 26. Environmental and Social (E&S). The environmental and social risk classification is Moderate. The project will support activities of similar type as the ones implemented under the existing NRAP. Activities include small scale civil works within modified and degraded existing right of ways and road reserves, household connections and installation of household solar and battery solutions. Anticipated E&S impacts include: (i) impact on communities and worker health and safety including road traffic incidents, electrocution and fires, (ii) soil and water pollution associated with construction activities and generation of hazardous and non-hazardous waste including end of life solar panels and batteries and iv) dust and noise pollution; (iii) small scale land acquisition and easement; and (iv) Gender Based Violence (GBV) / Sexual Exploitation and Abuse (SEA)/Sexual Harassment (SH) risks associated with works. The risk and impact are considered site specific, predictable and temporary and not likely to cause significant adverse environmental impacts and will be mitigated through agreed mitigation measures. The project will be implemented in accordance with the Environmental and Social Commitment Plan (ESCP) dated December 20, 2024. 27. The existing environmental and social management plan and labor management plan prepared under NRAP (P166170) and disclosed in-country and by the World Bank on January 5, 2022, and December 24, 2021, respectively, will be updated, redisclosed and implemented for this project after approval and prior to commencing with civil works. EEC has an ISO certified OHS and environmental management system that will be adopted for the project, to assist with managing environmental, health and safety risks. The World Bank is developing an ESS2 Overview Assessment for Eswatini. Based on the findings of the assessment, the use of borrower framework in part is being proposed for aspects related to management of occupational health and safety and labor and working conditions. Use of borrower framework is also proposed in part for the implementation of requirements for managing E&S risks including the Initial Environmental Evaluation and Comprehensive Mitigation Plan to obtain and environmental compliance certificate and authorization letter, in addition to the existing E&S instruments prepared under the NRAP. 28. The Stakeholder Engagement Plan (SEP) prepared under NRAP has been updated and disclosed on December 6, 2024 on World Bank website and disclosed in-country on December 14, 2024. The project will be implemented by the existing PIU established in EEC under NRAP. The PIU has three dedicated environmental, health and safety staff from EEC to manage environmental, health and safety (EHS) risks and two social development staff who manage compensation for land acquisition and oversee stakeholder engagement. The PIU E&S team is well experienced with EHS risk management and implementation of World Bank-funded projects. In relation to activities financing solar panels under Subcomponent 2.2, there may be a potential risk of forced labor, associated with the global solar panel supply chain. EEC will require the primary supplier of solar panels to identify potential forced labor risks in the supply chain and if forced labor cases are identified, EEC will require the primary supplier to take appropriate steps to remedy them. The project will follow World Bank’s procedures and guidelines on mitigating forced labor risks in line with the WBG Roadmap on Solar PV Supply Chain Issues. Relevant procurement processes will be strengthened by including forced labor bidders’ declarations, qualification requirements and enhanced contractual provisions, and the World Bank will conduct mandatory prior review of all these contracts. 29. Gender. The National Gender Policy of Eswatini provides a framework for gender mainstreaming, ensuring women's full and effective participation in national development. The National Energy Policy 2018 policy includes a gender mainstreaming component aimed at reducing gender inequalities in the energy sector. Despite these supportive frameworks and commitments, gender equality remains a challenge for Eswatini’s energy sector. Women in Eswatini face difficulties in accessing electricity and clean cooking technologies, despite being the primary users and producers of household energy. Preliminary findings from a recently conducted Multi-Tier Framework Energy Access Diagnostic Report indicate that female-headed households are overall less likely to have access to electricity compared to male-headed Page 27 The World Bank Accelerating Sustainable & Clean Energy Access Transformation Program Using the Multiphase Programmatic Approach (P180547) households (76 percent vs. 81 percent). This disparity is more pronounced in rural areas (75 percent vs. 80 percent). Poverty rate among females is 55.5 percent compared to 44.5 percent among males. The disparity makes it harder for them to afford connection costs and electricity bills, compounded by less access to financing options, such as being denied loans or facing higher interest rates. 30. MNRE, under the NRAP, has also made significant efforts to bridge the gender gap in employment within the energy sector. Ongoing gender equality programs include a science, technology, engineering and mathematics (STEM) job shadowing program, a STEM internship program, a STEM boot camp program, and the revision of the primary education curriculum to integrate gender and energy messages. Despite these efforts, the gender gap persists in energy sector institutions such as the EEC, reflecting, among others, absence of systematic gender-responsive planning, reporting, and M&E systems. 31. The project will have ASCENT Eswatini Gender Action Plan (GAP) that complements the ongoing gender equality program under NRAP. The GAP will include four focus areas that are aligned with the ASCENT Gender Technical Note and the respective (umbrella) Action Plan. The focus areas envision to build a strong gender equality system in the energy sector, ensuring an inclusive approach. MNRE in collaboration with EEC will develop the GAP during the first year of project implementation and ensure the GAP is adopted and ready for implementation. The focus areas are: (1) Facilitating clean, affordable, and reliable electricity access for female-headed households through both grid and off-grid solutions; (2) Enhancing Women Employment in the Energy Sector through targeted STEM internship program and strengthening STEM job shadowing program; (3) Energy sector capacity development program to close the gender gap; and (4) creating supportive framework for gender equality (professional development program for women technical staff and women in managerial position, development/revision and adoption of Gender in Energy Policy, gender responsive planning, reporting and M&E framework, revision of EEC Human Resources Policy and development and implementation of Male Engagement Program etc. More details are provided in ASCENT Gender Technical Note. Two gender-related indicators are included in the project Result Framework to track the project’s progress in closing the gender gap in the energy sector. The indicators are: (a) the number of female-headed households provided with electricity access (both grid and off-grid), and (b) the number of females in STEM backgrounds hired in full-time positions in the energy sector (EEC). 32. Citizen engagement. The project will support activities to increase the awareness of citizens on the safe and efficient use of electricity. Communication outreach campaigns including specific gender-sensitive awareness campaigns and information dissemination will be conducted to inform the citizens on the diverse advantages that they could benefit from the electricity service. Events will be implemented by the project in close collaboration with EEC to inform the community about the project and solicit beneficiaries’ feedback. Both newly connected and existing customers will be informed about the role of the call center of the EEC as the formal platform for the customers to provide feedback on the quality of services. The beneficiaries’ feedback will inform any necessary course correction. Additionally, a GRM will be in place no later than 60 days after effectiveness and will be regularly monitored. Through these mechanisms, the project will enhance citizens voice and ensure beneficiaries participation throughout the project lifecycle. Citizen engagement indicator is incorporated in the results framework. G. Key Risks 33. The overall risk of the project is considered Moderate. The risks rated as Substantial or higher and respective mitigation measures are elaborated in the following paragraphs. 34. Political and Governance risk is rated Substantial. Though Eswatini has enjoyed a stable political environment and continuity in Government, the implementation of government initiatives depends on high-level political commitment. Mitigation: A deepened sector dialogue will enable more frequent engagement with GoKE and other stakeholders to keep them updated on project progress and the expected benefits. Page 28 The World Bank Accelerating Sustainable & Clean Energy Access Transformation Program Using the Multiphase Programmatic Approach (P180547) 35. Macroeconomic risk is rated Substantial. Both the macroeconomic current and outlook conditions are improving but remain fragile, in absence of clear policies to address fiscal challenges, which may affect macroeconomic stability, while external environment may contribute to exchange rate and balance of payment pressures, which may lead to higher inflation, making project inputs more expensive. Mitigation: The World Bank continues to maintain a dialogue on the macroeconomic situation that includes policy discussions and advice aimed at improving the overall economic outlook. 36. Grievance Redress. Communities and individuals who believe that they are adversely affected by a project supported by the World Bank may submit complaints to existing project-level grievance mechanisms or the Bank’s Grievance Redress Service (GRS). The GRS ensures that complaints received are promptly reviewed in order to address project-related concerns. Project-affected communities and individuals may submit their complaint to the Bank’s independent Accountability Mechanism (AM). The AM houses the Inspection Panel, which determines whether harm occurred, or could occur, as a result of Bank non-compliance with its policies and procedures, and the Dispute Resolution Service provides communities and borrowers with the opportunity to address complaints through dispute resolution. Complaints may be submitted to the AM at any time after concerns have been brought directly to the attention of Bank Management and after Management has been given an opportunity to respond. Information on submitting complaints to the Bank’s GRS and AM is available at http://www.worldbank.org/GRS and https://accountability.worldbank.org, respectively. Page 29