Sudan - Second Power Project

Doumnat or The Worid Bank FOR OmCIAL USE ONLY ReputN.6 5388 PROJECT COKPLETION REPORT SUDAN SECOND POWER PROJECT (Credit 564-SU) December 28, 1984 Energy Division Eastern Africa Regional Office -bb docummut has a restricted in-buth ad my be ued by redupleu omy i the perfonriace of I . ffiaEd judes. Its csteut unay not therwie be dised withou Wod Bak athor o.  FOR OMCIL USE ONLY SUDAN SECOND POWER PROJECT (Credit 564-SU) PROJECT COKPLETION REPORT Table of Contents Page No. PREFACE ................. BASIC DATA SHEET .. _.---. . ..-. . HIGHLIGHTS ................................................. v I. INTRODUCTION 1 II. PROJECr PREPARATION AND APPRAISAL 2 Origin, Preparation, Appraisal and Negotiations .......2 Project Description ... . ......... 2 Project Objectives .. 3 III. IMPLEMENTATION Credit Effectiveness..... 4 Project Execution. .... 4 Reporting ..... 6 Procurement ...... 6 Project Costs. ... 6 Disbursements .... 7 Performance of Consultants, Contractors and Suppliers. 7 IV. OPERATING PERFORMANCE 7 V. FINANCIAL ASPECTS 8 Introduction .. 8 Financial Results ........................ 8 Billing and Collection ..................................... 10 Accouniting and Audit .......................................... 11 VI. INSTITUTIONAL PERFORMANCE 11 Management and Organization Effectiveness ................... 11 Staff and Training ........... ............... , 12 VII. PROJECT JUSTIFICATION 12 VIII. IDA PERFORMANCE 13 IX. CONCLUSIONS 14 Dverall Achievements ......... & ............................. 14 Lessons Learned ......................................... 14 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may nDt otherwise be disclosed without World Bank authorization.  ANNEXES 1 Compliance with Hain Covenants of Legal Documents ........* 16 2 Awarded Contracts for Equipment and iorks .................. 18 3 Project Cost Estimate .............. .... 20 4 Schedule of Disbursements .......* ....*.... . ..... ......... 21 5 PEWC - Actual and Estimated Income Statements - Consolidated 22 6 PEWC - Actual and Estimated Income Statements - Electricity . 23 7 PEwC - Actual and Estimated conDolidated Cash Flows ......... 24 8 PEMC - Actual and Estimated Consolidated Balance Sheet ***** 25 9 Return on Investment ............. ......... ........ 26 APPEIDIX A - Comments from the Government of Sudan .............. 27  PROJECT COINPLETON REPORT SUDAN SECOND POWE PROJECT (Credit 546-SU) PREFACE The Project constituted part of the power development program of the Public Electricity and Water Corporation (PEWC) of Sudan in the period 1977-1981 and included the installation of a 42-NW generating unit at Roseires hydroelectric power station, addition of diesel generating capacities at Burri and Juba, extension of transmission and distribution networks, long-term planning studies, and management consultancy services. The IDA assisted in this with Credit 564-SU of US$23 m11lion, which was signed on June 25, 1975 and made effective on October 29, 1975. Of the credit amount $22.03 million was disbursed by November 30, 1981 and the balance (US$0.97 million) was cancelled on that date. The Project Completion Report (PCR) was prepared by the Eastern Africa Regional Office based on the staff appraisal report, supervision missions' reports and other documents available in the IDA files, as well as findings of a project completion mission which visited Sudan in October 1983. The PCR summarizes the main points of particular interest. It shows difficulties in achieving financial and institution-building objectives in the Sudanese power supply industry and in carrying out project works in remote areas where local conditions have adverse impact on the pace of project execution. The PCR also notes the problems of excessive siltation of water reservoirs and inefficiency of power supply in Sudan where power losses are excessively high and outages and shortages are common. In accordance with the revised procedures for project performance audit reporting, this PCR was read by the Operations Evaluation Department (OED) but the project was not audited by OED staff. A draft copy of this report was sent to the Borrower (Government of Sudan) for its comments. Those comments which were received have been taken into account in finalizing the report, and are attached to the report as Appendix A.  :-; , - .:' f -*. . --:ii SUDAN SECOND POWER PROJECT (Credit 564-SU) Key Project Data Appraisal Actual or Item Expectation Current Estimate Total Project CoD< (US$ million) 39.97 55.26 Overrun (Z) a/ - 38 Credit Amount (USS million) 23 23 b/ Disbursed 23 22 Cancelled - 1 Date of Completion of Physical Components 12/78 2/81 c/ Proportion of Time Overrun (Z) 0 110 Internal Rate of Return on the Project (IRR) 20 & 10% d/ 14Z e/ Financial Performance 8% 1.5%-22.0Z f/ Institutional Performance mixed g/ Cumulative Estimate and Actual Disbursements (US$ million) Nov. 30 As of June 30: 1976 1977 1978 1979 1980 1981 1981 (i) Appraisal Estimate 3.0 11.5 20.5 23.0 23.0 23.0 23.0 (ii) Actual 1.4 5.5 17.1 21.3 21.6 22.0 22.0 (ii) as Z of (i) 47 48 83 93 94 94 94 a/ Excluding Juba, the cost overrun is US$11.39 million or 32X. '5/ Co-financed by OPEC Special Fund (US$9.5 million in 1979). c/ Except Juba diesel station (expected in 1984). If/ Roseires 20%, Juba 10%. e/ Roseires only. t/ Return on net fixed electricity assets. g/ Although satisfactory institutional/operational performance has not been achieved, some improvements were made.  - $ii - OTHER PROJECT DATA Item Original Revisions Actual First Mentioned 1969 Government's Application 1972 Negotiations 10174 Board Approval 5/22/75 Credit Agreement Date 6/25/75 Effectiveness Date 9/26/75 10/29/75 Closing Date 12/31/79 12/31/80 6/30/81 a/ Borrower: The Democratic Republic of Sudan Executing Agency: The Public Electricity and Water Corporation (PEWC) Fiscal Year of the Executing Agency: July 1 - June 30 Follow-on Project Name: Third Power Project (Credit 1006-SU) a/ Final disbursement was made on February 22, 1982.  Mission Data Month/ No. of No. of Man- Year Weeks Persons weeks Date of Report Appraisal 2/74 3 3 9 04/25/75 Supervision I 11/75 3.4 3 10.1 12/10/75 II 7/76 3 2 8.4 08/07/76 III 2/77 1.5 4 6 03/02/77 IV 10/77 3.2 3 9.6 01/27/78 V 2/78 1.8 3 5.4 03/20/78 VI 8/78 5.7 2 11.4 09/27/78 VII 6/79 1.4 2 2.8 08/03/79 VIII 3/80 2 1 2 05/08/80 IX 11/80 1.8 1 1.8 12/19/80 X 4/81 1.4 1 1.4 06/12/81 xXI 9/81 2 2 4 12/29/81 XII 5/82 3 2 6 08/10/82 xIII 12/82 3 2 6 01/20/83 xIV 10/83 2 1 2 12/15/83 Total 35.2 76.9 Currency Exchange Data Appraisal US$1