Power Grid Improvement (PGI) Project Project Stage...

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Aide Memoire – September 2017 1 Project: Power Grid Improvement (PGI) Project Project Stage: Implementation Team Leader(s): Leopold Sedogo Country: Lao PDR Project Development Objective The project development objective is to help improve efficiency and reliability of power distribution in the selected load areas served by EDL. Key Project Data Project Number P149599 Approval Date 23 June 2015 Effectiveness Date 31 December 2015 IDA Credit Amount US$30 million IDA Disbursement US$9.8 mil (32.22%) Closing Date 31 March 2020 PDO Rating Satisfactory IP Rating Satisfactory . Introduction 1. A World Bank Group Mission 1 visited Lao PDR, from September 12-15, 2017 to carry out implementation support for the Power Grid Improvement Project (PGI). The mission would like to express its gratitude for the hospitality provided by the Ministry of Energy and Mines, the Ministry of Finance and the implementing agency, Electricite du Laos (EDL). This aide memoire summarizes key findings in addition to those from August 12-14, 2017 mission. As part of the World Bank’s Access to Information policy, the team sought guidance from the implementing agencies as to whether the aide-memoire would be publicly disclosed. It was agreed that it would be disclosed. Key Findings 2. Progress towards achieving the PDO is Satisfactory. Procurement of major goods and technical assistance packages have been completed and under implementation to help improve efficiency and reliability of power distribution in the Xaythany District. The last major goods package (electric meters) is now at an advanced stage of procurement and expect contract award by the end of this year. Various training sessions were carried out to strengthen EDL institutional capacity to utilize new technologies in addressing distribution losses and improving power grid efficiency. 3. Disbursement. Disbursement has increased by 24% from February 2017. As of September 15, 2017, the project has disbursed US$9.8 million (about 32.22% of the credit amount) and most of the funds have been committed. 4. Mid-Term Review (MTR) Mission is planned for February 2018. The MTR mission aims to review and confirm that project design objectives and result indicators remain relevant and achievable by project closure, and if required, based on identified challenges, propose adjustments to PDO and 1 Leopold Sedogo (Sr. Energy Specialist, Task Team Leader); Rome Chavapricha (Sr. Energy Specialist), Khamphet Chanvongnaraz (Procurement Specialist), Siriphone Vanitsaveth (Sr. Financial Management Specialist), Waraporn Hirunwatsiri (Sr. Environmental Specialist); Vilayvanh Phonepraseuth (Operations Analyst); Kingfa (Financial Management Consultant) Thongkham Chanthavong (Program Assistant). Phongsavanh Phomkong (IFC Head of Vientiane Office) and Helen Han (IFC Senior Investment Officer) also participated in the mission to follow up on EDL financial covenant under IFC direct loan to EDL for $15 million for a Rural Electrification project that closed in 2015.

Transcript of Power Grid Improvement (PGI) Project Project Stage...

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Aide Memoire – September 2017

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Project: Power Grid Improvement (PGI) Project Project Stage: Implementation

Team

Leader(s): Leopold Sedogo

Country: Lao PDR

Project Development Objective

The project development objective is to help improve efficiency and reliability of power distribution in the selected load areas

served by EDL.

Key Project Data

Project Number P149599 Approval Date 23 June 2015 Effectiveness Date 31 December

2015

IDA Credit Amount US$30 million IDA Disbursement US$9.8 mil (32.22%)

Closing Date 31 March 2020

PDO Rating Satisfactory IP Rating Satisfactory .

Introduction

1. A World Bank Group Mission 1 visited Lao PDR, from September 12-15, 2017 to carry out

implementation support for the Power Grid Improvement Project (PGI). The mission would like to

express its gratitude for the hospitality provided by the Ministry of Energy and Mines, the Ministry

of Finance and the implementing agency, Electricite du Laos (EDL). This aide memoire summarizes

key findings in addition to those from August 12-14, 2017 mission. As part of the World Bank’s

Access to Information policy, the team sought guidance from the implementing agencies as to

whether the aide-memoire would be publicly disclosed. It was agreed that it would be disclosed.

Key Findings

2. Progress towards achieving the PDO is Satisfactory. Procurement of major goods and technical

assistance packages have been completed and under implementation to help improve efficiency and

reliability of power distribution in the Xaythany District. The last major goods package (electric

meters) is now at an advanced stage of procurement and expect contract award by the end of this

year. Various training sessions were carried out to strengthen EDL institutional capacity to utilize

new technologies in addressing distribution losses and improving power grid efficiency.

3. Disbursement. Disbursement has increased by 24% from February 2017. As of September 15, 2017,

the project has disbursed US$9.8 million (about 32.22% of the credit amount) and most of the funds

have been committed.

4. Mid-Term Review (MTR) Mission is planned for February 2018. The MTR mission aims to review

and confirm that project design objectives and result indicators remain relevant and achievable by

project closure, and if required, based on identified challenges, propose adjustments to PDO and

1 Leopold Sedogo (Sr. Energy Specialist, Task Team Leader); Rome Chavapricha (Sr. Energy Specialist), Khamphet

Chanvongnaraz (Procurement Specialist), Siriphone Vanitsaveth (Sr. Financial Management Specialist), Waraporn

Hirunwatsiri (Sr. Environmental Specialist); Vilayvanh Phonepraseuth (Operations Analyst); Kingfa (Financial Management

Consultant) Thongkham Chanthavong (Program Assistant). Phongsavanh Phomkong (IFC Head of Vientiane Office) and Helen

Han (IFC Senior Investment Officer) also participated in the mission to follow up on EDL financial covenant under IFC direct

loan to EDL for $15 million for a Rural Electrification project that closed in 2015.

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result indicators. The mission will also assess the issues and challenges faced during the previous

years of the project implementation and agree on an action plan to ensure the achievement of the

PDO and successful completion of the project.

Detailed Project Status

Component 1: Smart metering, distribution improvement and distribution losses:

5. Supply and installation of distribution improvement and automation equipment. Hunan

Machinery & Equipment Imp. & Exp. Corp. is the contractor for the supply and installation of the

work and equipment related to the distribution improvement and loss reduction. The contract was

signed in January 2017 and comprised the delivery of Concrete Poles, Cross Arms, MV and LV

Conductors, Capacitors Bank, Reclosers, Load Break Switches and Transformers and associated

installation works.

6. The contract is progressing well in accordance with the agreed planning: (i) the order of service has

been issued on June 1, 2017; (ii) delivery of equipment is effective with the 1st and the 2nd shipments

completed and the last shipment expected in October 2017; (iii) the camp site is operational and a

warehouse has been erected in a military camp and offers security features; (iv) survey and design

have commenced and expected to be completed by September 20, 2017.

7. The Bank team met with EDL and the contractor on site to discuss implementation related questions

of component 1; visits were also conducted on the warehouse and the camp sites. The level of

readiness is adequate as evidenced by the equipment (transformers, cables, cross arms) in the

warehouse and the contractor’s personnel on the ground. EDL is to provide feedback no later than

two weeks after the survey and design are completed and transmitted.

8. The meeting provided the opportunity to meet with EDL’s and the contractor’s teams and discuss

details of the implementation planning and main next steps. The Bank has reiterated the

recommendation to ensure a sound coordination during the implementation phase; indeed, EDL has

committed to supervise the works and both teams must anticipate on coordination to make sure that

issues do not arise to compromise quality and generate unnecessary delays. EDL and the contractor

have highlighted an issue related to a few poles that are leaning and therefore need to be fixed; even

though this work is not initially included in the scope of work the bank if favorable to EDL

negotiating with the contractor to undertake these works, estimated at around US$60,000, at the

same time. Work is expected to commence on the ground around November 2017 (end of rainy

season).

9. Advanced Metering Infrastructure (AMI) technology and digital meters. The main consultancy

works (Advanced Meters Infrastructure & implementation support) has now completed to inform

the design of advanced meter infrastructure, meters specification and roll out plan, and support for

distribution improvement and automation. The tender for the supply and installation of advanced

meter infrastructure system (under ICB Package G-02) was processed successfully with 49

companies purchasing the bid documents and 15 that submitted a bid. The estimated budget for this

activity is US$8.5 million.

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10. The Bank had expected to receive the bid evaluation report (BER) a week ahead of the mission but

EDL could not meet this request because of internal clearance procedures; nonetheless the mission

collected copies of the bids during the mission, in anticipation of its review to save time. EDL

transmitted the BER to the Bank on September 15, 2017: the Bank is currently conducting its review

and will soon share its comments and recommendations.

Component 2: Electric utility information system:

11. Corporate Financial Management Information System. The project has successfully procured

SAP-based financial management information system under ICB Package G-05. The contract was

signed with FPT Information System Corporation Vietnam for the amount of US$4.37 million in

December 2016. The work in currently under implementation with the support of the Corporate

Solution Consultant.

Component 3: Institutional capacity building and project implementation support

12. Procurement of the power distribution equipment testers and consultancy support for Component 1

& 2, including environment and social safeguards aspects have all commenced. Various technical

training and other capacity building activities have been carried out to strengthen EDL institutional

capacity to utilize new technologies in addressing distribution losses and improving power grid

efficiency and support project implementation. See details on the training activities in the Annex 4.

PGI Procurement

13. Procurement Performance: Overall, procurement performance of the project is considered

“Highly Satisfactory”. Most of procurement of goods and consulting services packages have been

completed; only one Goods G-02 package is pending at the bid evaluation stage which is ahead of

schedule.

14. Procurement Plan (PP): EDL is advised to update the procurement plan to reflect the current

implementation status of all procurement packages and to add new packages if there is any.

15. Post Review: Procurement post review will be conducted during the next mission.

Environmental and Social Safeguards

16. The environment and social safeguard performance of the project to date is “Satisfactory”. From

the discussion with EDL Environmental Officers and contractors on the Bank comments on

Contractor proposed plan and from the site visit to contractor office, warehouses and workers camp

sites, the mission findings are as follows:

17. Communication Strategy and GRM – The mission referred to the Bank’s comment on

communication strategy that it should be in place. This will ensure that affected communities will

receive information about the project work schedule in advance. With the support from EDL to

communicate with district authority and traffic police and community, this will provide smooth

access to contractor to conduct their work. EDL will inform and communicate with affected

community as well as district authority before the electric shut down. EDL agreed to distribute

project description and GRM procedure leaflet to affected community prior to commencement of

construction and installation activities. This should be included in the check-list of the contractor to

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be completed before starting of project construction and installation activities. EDL will also provide

the organization chart of the communication flow to contractor by end September 2017.

18. Quality Assurance through Workers Training- From the project implementation plan, there will

be several contractors team i.e. i) Installing Pole 8, 10, 12 m.; ii) Changing conductor 22 kv; iii)

Changing Conductor 0.4 kv; iv) Installation of new Transformer; v) Upgrading Transformer; vi)

Installing Load Break Switch; and vii) Installing Recloser. The contractor team leader will provide

training and guidance every morning before working. During the mission, the contractor informed

EDL and the mission that there will be several trainings including hands-on training by experts

provided by the suppliers of specific equipment (at least one time for each team). The mission

requested key contractor officers attend the hands-on training to ensure the effective supervision and

provide guidance to workers during the day-to-day training. The mission also recommended to

contractor that the workers will not switch or rotate to work on the task that they have not been

trained. Training will be provided to the new workers prior to commencement work. The mission

also was informed that safety officers will provide safety training and installation techniques to all

workers on September 17, 2017.

19. Project Implementation Plan – The project organization chart looks good. The contractor team

includes a Construction works & Safety Supervisor, an E&S Specialist & Monitoring and a

Construction Safety Guard that will play a key role to minimize risk related to safety issues. The

E&S Specialist and Monitoring will be responsible for: i) pre-construction survey on the

environmental and social impacts (location of new pole installation, number of tree to be trimmed,

agreement from the land owners as per voluntary land donation protocol (need to keep filing of all

agreements made), high risk area to workers and community due to infrastructure around the

electricity poles, etc.); ii) design work plan and site assessing plan to minimize the impact to the local

environment and social (the mission suggested to include the minimization of impact of workers

safety); iii) monitoring the construction whether meet the requirement of GoL, World Bank, ESMP

and ECOP; iv) responsible for communicating with GoL, World Bank, EDL team and local people

on environmental and social management; and v) coordinate the relationship between the

construction team and the local people. From the role and responsibilities of this E&S Specialist and

Monitoring, the mission suggested to have a support team as the E&S Specialist and Monitoring is

not a full-time staff but MoNRE permanent officer. The contractor agreed to allocate more staff to

support the work under responsibility of this E&S Specialist and Monitoring. The contractor also

informed the mission that monthly report on environmental and social impact has been prepared to

be submitted to EDL by end September 2017. The voluntary land donation protocol has been applied.

EDL received agreement from all land owners that about 100 additional electricity poles will be

installed in their lands. EDL also received endorsement to install those additional electricity poles

from district governor.

20. Camp Management Plan – The Bank commented on the worker camp that has only one toilet for

15-20 workers. The Bank recommended to increase number of toilet to be sufficient for the workers.

In addition, as the camp site has no car park area, most of the cars were parked along the road outside

the worker camp of which will increase traffic congestion in that area. The contractor informed EDL

and the mission that they have moved the camp site to the place nearer to the project area. From the

site visit to the new two camp sites, the mission found that two rented houses provided more space

for 15-20 workers. One camp site located along the main road with a proper fence. It has two toilets

and two more toilets are under construction. There is space for car park, and temporary stored-area

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for construction/installation materials. There is an organization chart board and safety regulation

(both in English and Lao) on the wall at every morning briefing area. This camp is close to the river,

the mission suggested proper garbage management in this campsite not to the impact the river. The

other camp site is opposite to the first camp site. It is a two story-house with one toilet. No fence

around the house. The mission suggested not to store the construction materials at this camp site.

Both camp sites need to ensure no noise pollution from workers and loaded and unloaded of

equipment disturb the neighborhood. Overall condition of camp sites is better than the previous one.

21. Warehouse management – The mission visited four warehouses all of which are in good condition.

Those warehouses are covered with roof and have proper fence and lock. The mission was informed

that water trucks are available in case of fire. The mission suggested the organization chart and

contact number provided at the warehouses should include the contact number of fire fighter and

nearby hospital in case of emergency occurred.

22. Minimum Workers Health Requirement – The contractor informed the mission that minimum

health requirements for project execution and worker health and safety management plan will be

applied. All workers need to go through medical check-up and pass the minimum health requirement.

23. Project report Forms – The mission suggested to include number of accident occurred and

mitigation actions to mitigate those risks as well as complaint (from affected communities,

passengers of the affected road, and workers) record into the form. EDL suggested to add responsible

person into the form and request safety officer and E&S specialist to attend the meeting during the

next mission.

24. E&S Safeguard Plan – The E&S plan has been translated into Lao and put on the wall. The mission

suggested and the contractor agreed that ESNP-Appendix 1 II. Environmental and Social Impact

Assessment table should add one more column on the mitigation measures.

PGI Financial Management

25. The Financial Management performance of the project remains “Moderately Satisfactory”.

However, the rating may be downgraded should certain actions not taken as agreed.

26. Submission of IFR: The IFR covering the period from January to June 2017 has been overdue for

one month. Past IFRs also did not report on expenditure by project components. The mission urged

the project to submit the IFR in the agreed format as soon as possible. The IFR was subsequently

received by the Bank.

27. Audit: Although the audit opinion on the project’s financial statements for FY16 was unqualified

(clean), the submission of audit report was delayed for 11 days after the due date of June 30, 2017

and management letter was not submitted together with the audit report. The management letter was

subsequently submitted after multiple follow ups and more than two months after the due date. The

project is urged to ensure that the subsequent audit report is submitted timely and the management

or letter of confirmation from auditor in the event of no issue of the audit reports is submitted with

audit report in future. Timely submission of the IFR and project audit report and management letter

is a requirement of Financing Agreement. Delay submission indicates non-compliance.

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28. The next audit report for FY2017 will be due on 30 June 2018. The project is also required as a

condition of financing to disclose the project audit report on EDL website. However, none of the

project audit reports for FY15 & FY16 has been disclosed on EDL’s website. We would like to

request the project to disclose them on EDL’s website in an accessible manner as soon as possible.

29. Transaction Review: The mission team also reviewed some key internal controls and selected

transactions as reported in the Withdrawal Applications #7 to 15. Result of the review indicated that

some key controls were not fully in place such as bank reconciliation not regularly performed and

fixed asset register not compiled. There were also some questionable expenditure requiring further

discussion and supporting documents. The mission team will follow up with the project’s finance

and admin teams.

30. Disbursement: As of 15 September 2017, the total disbursement rate is at approximately 32.2% or

approximately USD 9.8 million of the allocation. The disbursed amount comprises advance to the

Designated Account, direct payment, reimbursement, and special commitments. We strongly

encourage the project to continue reporting expenditure regularly. Total fund available was USD

16.37 million equivalent at SDR/USD rate of exchange on that day. As the financing is denominated

in Special Drawing Rights (SDR), the project should check client connection regularly to ensure

correct funds availability. The project should also consider any commitments and undocumented

expenditure to arrive at the best estimated available funds.

EDL Group Financial Situation

31. As indicated in the February 2017 mission aide memoire, fiscal year 2015 was financially difficult

for EDL Group primarily due to large capital investments, large debt borrowings (debt/equity > 3),

and subsidies in electricity tariffs (domestic tariffs 13% below cost of supply on average). The

mission met with EDL Managing Director, Deputy Managing Director of Finance, and Assistant

Managing Director of Business Department. The key points discussed were:

• EDL is experiencing cash flow liquidity constraint. EDL expressed interested to address this

constraint, including through refinancing some maturing loans. The mission described the First

Programmatic Green Growth Development Policy Operation (“GGDPO”), approved for Laos

in May 2017, as a policy-lending instrument not tied to a specific project or asset. This Green

Growth DPO targets a reduction in Lao public debt to 65 percent of GDP by 2020 (baseline of

68 percent in 2016). As EDL debt totaled 21 percent of GDP in 2015 (mostly with government

guarantee), reducing EDL debt either through equity injections or other means could help

Government achieve GGDPO debt target.

• EDL Group has discontinued signing PPA for new generation projects. EDL Group may

consider spinning off large generation projects completely to another entity without EDL

Group’s shareholding. New investment in power transmission can be selectively done on

BOT basis. Investment in distribution will be more selective. Less critical investments will be

postponed.

• To alleviate financial pressure on EDL Group, one practical option is to separate the

transmission function completely away. A new corporate entity can be established, with

Government and possibly other investors as shareholders. Transmission assets and debts would

be transferred to the new entity. Transmission charge mechanism could be put in place, and to

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be eventually charged to end-customers. EDL Group would maintain generation and

distribution business. EDL MD confirms that the strategy to separate the transmission function

was envisaged in the past, and could be revisited again.

• EDL export business is currently loss-making. In 2015 the average export tariff was below

the cost of supply by almost 30%. Under HMTA, the Government is working to increase export

profitability. It could be financially beneficial to clearly separate the export business from the

domestic business. This export separation could be further assessed together with the option on

separating the transmission function mentioned above.

• Government, through MOF as shareholder in EDL, has not injected new equity to EDL for

many years. MOF has been on-lending loans to EDL, resulting in EDL debt stock of ~ 21

trillion kips by FY2015 compared to equity of only ~6 trillion kips. It is critical for new equity

to be made available to better support the large debt stock. If possible, some MOF loans could

be converted into equity instead.

• Raising new external equity such as through a capital increase of EDL-Gen is possible.

However, Government’s share in EDL-Gen (currently 75 percent) may be diluted should

Government decided not to subscribe to new shares.

• The consultant PWC—appointed by MEM under the Technical Assistance for Capacity

Building on Hydropower and Mining Sector Project (HMTA)—has completed the study on

financial improvement plan for EDL and the power sector, and a new electricity tariff design

for 2018 and beyond. The mission requested MEM, MOF and EDL to consult internally and

submit the Third Financial Action Plan for Sustainability of EDL and the Power Sector as

agreed under the Power Grid Improvement Project during this year 2017. PWC could help

facilitate the consultation and prepare the action plan.

• It was discussed that EDL needs to add senior financial experts to the finance team. These

experts could be qualified Laotians or expatriates. If necessary, EDL may appoint an executive

search firm to help identify candidate and assist with the recruitment process.

Next Steps and Actions

Overall Project Implementation Actions Responsibility Date Status

Submit the 2nd PGIP progress report to the World Bank EDL 22 Sep 2017 Received

Third Financial Action Plan for Sustainability of EDL and the

Power Sector

MEM/MOF/EDL December 2017 Work in

progress

Procurement Actions

Submission of bid evaluation report for G-02 to the WB EDL 22 Sep 2017 Received

Update procurement plan to reflect changes EDL 30 Sep 2017

Financial Management Actions

Submission of IFR for the quarter ended June 30 2017, with reporting

on expenditure by project component and related budget for the

quarter. A formal transmission letter from the project manager will

be required

Accounting and

Finance

Department of

EDL/ PGI FM

team

Not later than

20 September

2017

Received

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Submission of PGI IFR for the quarter ended September 30, 2017 Accounting and

Finance

Department of

EDL/ PGI FM

team

No later than

November 30,

2017

Provide a copy of the updated project Fixed Asset Register Accounting and

Finance

Department of

EDL/ PGI FM

team

Not later than

30 September

2017

Received

Provide a copy of summary of all project commitments to date PGI team Not later than

30 September

2017

Received

Provide copies of updated contract monitoring sheets for consultants Accounting and

Finance Dept. of

EDL/ PGI FM

team

Not later than

20 September

2017

Received

Publish Audit Reports for PGI project for FY15 and 16 on EDL

Website

PGI Team Immediately

but Not Later

than 30

September

2017

In process

Transaction Reviews

Provide additional supporting documentation for the following

transactions. Type of documentation required have been discussed

with the PGI staff.

- Study Tour in Singapore 7-8 July 2017 amount USD 7,717

- Meeting in Vietnam 9-13 November 2016 amount

USD9,743.67

PGI team

No later than

30 September

2017

In process

Social and Environmental Safeguards

Prepare communication chart and GRM procedure EDL End September

2017

In progress

Distribute project description and GRM procedure leaflet EDL In progress

Safety Training to workers Construction works

& Safety

Supervisor of

contractor

By October

2017

In progress

Hand-on Training for each contractor teams Suppliers of each

equipment

Early October

2017 Prior to

construction

and installation

activities

In progress

Submission of monthly report on E&S safeguard Contractor End September

2017

In progress

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Annex 1: List of People Met

Name Institution Position

Mr. Boun Oum Syvanhpheng EDL Managing Director

Mr. Bounma Manivong EDL Deputy Managing Director

Dr. Daovong Phonekeo MEM Permanent Secretary, Head of Cabinet Office

Mme. Khamphiou Phounsavat EDL Assistant to Managing Director

Mr. Siprasith Boupha EDL Project Manager

Mr. Khannousone Phoumkeo EDL Deputy Project Manager

Mr. Seune Keosihoun EDL Deputy Project Manager

Mr. Latsamee Inthavong EDL Deputy Project Manager

Mr. Silikhan Chanthavong EDL Manager of Procurement Office

Mr. Kanthaneth Saysompheng EDL Manager of Project Loan Accounting Office

Mr. Vongvilay Sisoulath EDL Deputy Manager of Environmental Office

Ms. Khamthiemphet Inthirath EDL Technical Officer, Environmental Office

Mr. Phankham Douangsavanh EDL Deputy Head of Division

Mr. Khamphanh Gnabandith EDL Technical Officer

Mr. Jitendra Jadon EDL Procurement Consultant

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Annex 2: Mission Objective

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Annex 3: Result Framework .

Project Name: Power Grid Improvement Project (P149599) .

.

Project Development Objectives .

PDO Statement

The project development objective is to help improve efficiency and reliability of power distribution in the selected load areas served by EDL.

These results are at Project Level .

Project Development Objective Indicators

Baseline

Progress to date

(September 2017)

Cumulative Target Values

Indicator Name 2016 2017 2018 2019 2020

1. Average

interruption

frequency per

year in the project

area

(Number) -

(Core)

Not Available Not available Not available Not available

Baseline to be

determined upon

implementation

Baseline to be

determined upon

implementation

10% or more

improvement of

the baseline

Customers served

in the project area

(Number - Sub-

Type:

Supplemental) -

(Core)

47,060 59,804 52,000 57,000 62,000 67,000 67,500

2. Electricity

losses per year in

the project area

24.00 23 24.00 <=24.00 <=20.00 <=16.00 <=14.00

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(Percentage) -

(Core)

Total net injected

generation

(Megawatt

hour(MWh) -

Sub-Type:

Supplemental) -

(Core)

239,100 203,972 MWh Not applicable Not applicable Not applicable Not applicable 335,500

3. Direct project

beneficiaries

(Number) -

(Core)

207,0002 260,509 229,500 252,000 274,500 297,000 297,000

Female

beneficiaries

(Percentage -

Sub-Type:

Supplemental) -

(Core)

50.00 50 50.00 50.00 50.00 50.00 50.00

.

Intermediate Results Indicators

Baseline

Progress to date

(September 2017)

Cumulative Target Values

Indicator Name YR1 YR2 YR3 YR4 End Target

Residential

electric meters

installed

(Number)

0.00

Procurement of electric

meters is underway, based on

inputs from Advanced

Metering Infrastructure

(AMI) consultancy

1,000 5,000 9,000 14,000 15,000

2 46,000 residential household customer’s times assumed average 4.5 persons per household. Plus 1,060 non-residential customers.

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Non-residential

electric meters

installed

(Number)

0.00

Procurement of electric

meters is underway, based on

inputs from Advanced

Metering Infrastructure

(AMI) consultancy

200 600 1,000 1,400 1,500

Distribution lines

rehabilitated

under the project

(Kilometers)

0.00

Procurement of goods is now

completed. Implementation

just started.

0.00 100 200 300 300

Fiber optic cables

(Kilometers) 0.00

Procurement of fiber optic

cables will be informed by

AMI consultancy.

0.00 0.00 50 100 100

Average duration

of outages in the

project area

(Hours)

Not Available Not available Not available Not available

Baseline to be

determined upon

implementation

Baseline to be

determined upon

implementation

10% or more

improvement of

the Baseline

Number of

months to issue

audited financial

statements

(Number)

9

12 (for EDL audited

financial statements FY15.

Audit report for FY16 will

be delayed for the

submission due to the issues

of financial statement from

the previous year. However,

number of issues has been

eliminated and the

outstanding ones are listed

below:

9 9 6 4 4

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• Confirmation a of AR

and AP from the others

loan provider (IFC and

MOF) and the

subsidiary.

• Working Trial Balance

from sub-loan to the

subsidiary i.e. EDL-GEN

Updated financial

action plan for

financial

sustainability

(Number)

0 Not yet due 0 1 1 1 1

Number of staff

undergo training

(Number)

0 100 0 20 40 50 50

EDL publishing

summary reports

of impacted

household

feedback received

during project

implementation

(Yes/No)

No Yes (included in the annual

project progress report) No Yes Yes Yes Yes

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EDL publishing

reports on

grievance redress

mechanism and

how issues were

resolved

(Yes/No)

No Yes (included in the annual

project progress report) No Yes Yes Yes Yes

.

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Annex 4: Training Activities under PGIP (implemented from April 2016 to August 2017):

Training of EDL staff on procurement and STEP:

The EDL staff trained on procurement methods and newly adopted Systematic Tracking Of Exchanges

In Procurement (STEP) the training includes formal and on the job trainings.

Training on office management:

On the job, formal trainings on office management also conducted time to time to enhance the capacity of

project staff to deal with daily operations. In which total 7 staff members were trained.

Training on GPS

On 23rd August 2016, total 25 participants from EDL trained on using GPS equipment.

Training on AMIS

EDL conducted consultation and information sharing workshop on AMIS on for the EDL staff. The

workshop attended by 37 representatives from Branches and EDL HQ.

The team of consultants trained EDL representatives on Advanced Meter Infrastructure and Power

Distribution Improvement. Experience on site visits of similar projects of AMIS was also shared with

EDL representatives.

The communication infrastructure alternatives and comparison was thoroughly discussed and consulted

with EDL staff. Main topics covered in the report are as follows

• AMIS evaluation criterion

• Briefing on Site visits (Xaythany, Bokeo and Bolikhamxay)

• Advanced Metering Infrastructure

• Architecture

• Components – Smart Meters, DCUs, AMI Servers

• Smart meter specifications

• Communication Infrastructure – Alternatives and Comparison

• AMI Applications and associated sub-systems

• Standards

• Inputs from Telecom officials

• Power Distribution Improvement

• Reliability Assessment and Improvement Criterion

• Energy Auditing

• Consumer Indexing – for AMI based Energy Audit

• AMIS reports

Training of EDL staff on Procurement with World Bank

The EDL team has also received training from the World Bank on procurement and contract negotiation.

Total 6 staff members including 1 female from EDL-PGI attended trainings with the World Bank.

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Training on Transformer testing equipment

Between 29 May 2017 to 2 June 2017, Total 12 Participants were trained on

• Turn ration and vector group verification test and accessories

• Insulation resistance and accessories

• Withstand test at elevated voltage up to 120 kV DC and accessories

• Withstand test at elevated voltage up to 100 kV DC and accessories

• DC winding resistance/ tap changer test and accessories

• Short circuit impedance and accessories

• Moisture-in-cellulose assessment and accessories-RVM 5462

• Oil breakdown test and accessories

Training Workshop on FMIS

In coordination with FPT Corporation Vietnam EDL conducted FMIS awareness generation workshop,

which was attended by representatives from all branches of EDL.

The topics covered in the 5-day workshop are as follows:

Module covered Number of

Participants

Project and SAP overview 59

SAP General Ledger 83

SAP Controlling and Consolidation 79

SAP Account payables 79

SAP Account receivables 71

SAP Cash management 71

SAP Fixed assets 69

SAP Purchasing 69

SAP inventory 60

SAP project system and fund

management

60

Training on NE PLAN

EDL in coordination with the supplier has conducted training on energy balance software NEPLAN,

between 18 May 2017 to 25 May 2017, the training attended by 62 Participants from EDL head office and

different branches. The supplier also transferred all data from CYMDIST software to NEPLAN and

provides interface option to transfer data from old CYMDIST software to the new software. Which

enabled EDL to transfer data easily in future.