Burundi - Power Transmission and Distribution Project

Document of The World Bank FOR OmCIAL USE ONLY Report No. 11495 PROJECT COMPLETION REPORT BURUNDI TRANSMISSION AND DISTRIBUTION PROJECT (CREDIT 1593-BU) DECEMBER 28, 1992 Industry and Energy Operations Division South-Central and Indian Ocean Department Africa Regional Office This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EOUIVALENTS 1985 US$1 = BuF 120.7 1986 US$1 = BuF 114.2 1987 US$l = BuF 123.6 1988 US$1 = BuF 140.4 1989 US$l = BuF 158.7 1990 US$1 - BuF 171.3 1991 US$1 = BuF 181.5 MEASUREMENTS GWh gigawatt hour 1,000,000 kilowatt hours kV kilovolt 1,000 volts kVa kilovolt amperes 1,000 volt ampere kW kilowatt 1,000 watts kWh kilowatt hour 1,000 watt hours MW megawatt 1,000 kilowatts MWh megawatt hour 1,000 kilowatt hours kgoe kilo of oil equivalent 10,500 kilocalories ABBREVIATIONS AND ACRONYMS CCCE Caisse Centrale de Coop6ration Economique (French aid agency) DUB D6partement Urbain de Bujumbura (Bujumbura Urban Department) ESRP Energy Sector Rehabilitation Project GtZ Deutsche Gesellschaft fUr Technische Zusammenarbeit (German aid agency) MPWEM Ministry of Public Works, Energy and Mines ONATOUR Office National de la Tourbe (Burundian peat development bureau) PPF Project Preparation Facility REGIDESO Regie de distribution d'eau et d'6lectricite (Burundian national electricity and water utility) SCEP Service Charg6 des Entreprises Publiques (Burundian national service for public enterprises) SNEL Societ6 Nationale d'Electricit6 (Zairian national power company) FISCAL YEAR January 1 - December 31  FOR OFFICIAL USE ONLY THE WORLD BANK Washington, D.C. 20433 U.S.A. Office of the Director-General Operations Evaluation December 28, 1992 MEMIORANDUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT SUBJECT: Project Completion Report on Burundi Transmission and Distribution Prolect (Credit 1593-BU) Attached is a copy of the report entitled "Project Completion Report on Burundi - Transmission and Distribution Project (Credit 1593-BU) ", prepared by the Africa Regional Office with Part II contributed by the Borrower. The project achieved its physical objectives albeit 12 to 18 months late. Institutional and financial goals were only partly reached. In particular, the separation of the financial accounts for water and electricity of REGIDESO, the national water and electricity utility, did not take place and the company fell short of meeting the revenue covenant agreed with IDA. However, the project and the IDA-supported structural adjustment program laid the ground for the recent reduction of REGIDESO's staff by one third and, hopefully, for further institutional progress. Views on the energy conservation part of the project are in part contradictory, IDA considering the outcome a success, in sharp contrast to REGIDESO. The envisaged audit of the project will clarify this point. At this point, the project outcome is rated as satisfactory and the benefits from the operation as sustainable. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.   FOR OFFICIAL USE ONLY PROJECT COMPLETION REPORT BURUNDI TRANSMISSION AND DISTRIBUTION PROJECT (CREDIT 1593-BU) TABLE OF CONTENTS Page No. PREFACE . . . . . . . . . . . . . . . . . . . . . . . . . . . . i EVALUATION SUMMARY .................. l i PART 1: PROJECT REVIEW FROM THE BANK'S PERSPECTIVE 1. Project Identity . . . . . . . . . . . . . . . . . . . . 2. Background . 3. Project Objectives and Description . . . . . . . . . . . 4. Project Design and Organization . . . . . . . . . . . . . 2 5. Project Implementation. 3 6. Project Results . . . . . . . . . . . . . . . . . . . . . 7 7. Project Sustainability . . . . . . . . . . . . . . . . . 8 8. Bank Performance .9 9. Borrower's Performance . . . . . . . . . . . . . . . . . 9 10. Project Relationships . . . . . . . . . . . . . . . . . . 10 11. Consultant Services . . . . . . . . . . . . . . . . . . . 10 12. Project Documentation and Data . . . . . . . . . . . . . 10 PART II: PROJECT REVIEW FROM THE BORROWER'S PERSPECTIVE . . . . . 11 PART III: STATISTICAL INFORMATION . . . . . . . . . . . . . . . . . 14 1. Related IDA Credits .14 2. Project Timetable .14 3. Credit Disbursements .15 4. Project Implementation .15 5. Project Cost and Financing . . . . . . . . . . . . . . . 17 6. Project Results . . . . . . . . . . . . . . . . . . . . . 18 7. Status of Covenants .19 8. Use of Bank Resources . . . . . . . . . . . . . . . . . . 21 9. Mission Data .21 ANNEX Annex 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.   i PROJECT COMPLETION REPORT BURUNDI TRANSMISSION AND DISTRIBUTION PROJECT (Credit 1593-BU) PREFACE This is the Project Completion Report (PCR) for the Burundi Transmission and Distribution Project for which a Credit of SDR 12.9 million to the Republic of Burundi was approved on April 9, 1985. The Credit was closed on December 31, 1991, two years after the original closing date. The last disbursement was made on August 28, 1991; the remaining balance from the Credit account as of May 30, 1992, is SDR4,289,214.62. This does not include proceeds from the Special Account for which a portion would need to be refunded. Once this is done, the remaining balance will be cancelled. The PCR was jointly prepared by the Industry and Energy Operations Division of Country Department III of the Africa Regional Office (Preface, Evaluation Summary, Parts I and III) and the Regie de Distribution d'Eau et d'Electricit6 tREGIDESO), the country' electricity and water company, executing agency for the project (Part III). The project review from the Borrower's perspective is given in Part II. The Caisse Centrale de Coop6ration Economique (CCCE) also provided comments. Preparation of this PCR is based on information contained in the Staff Appraisal Report, the Credit and Project Agreements, supervision reports, consultants' progress and final reports, correspondence in the project files and data furnished by REGIDESO.   ii PROJECT COMPLETION REPORT BURUNDI TRANSMISSION AND DISTRIBUTION PROJECT (CREDIT 1593-BU) EVALUATION SUMMARY Proiect Obiectives and Description 1. The main objective of the project was to augment and improve the reliability of supply of electricity to the capital city, Bujumbura, and its surrounding areas, by providing transmission and distribution facilities to receive power from the newly constructed Ruzizi II regional hydroelectric plant. Service would be extended to additional consumers in order to sustain and increase the economic growth expected in industrial and commercial activities and in the domestic sector. Extension of the distribution network to low income districts of Bujumbura was to substitute electricity for kerosene used in lighting, thus contributing to the reduction of the petroleum import bill while improving the standard of living of those people served. Extension of the subtransmission and distribution facilities to seven regional towns to the northwest of the capital aimed at further substitution of hydropower for kerosene and at replacement of autoproducers' diesel generation by hydroelectricity. Finally, the provision of technical assistance to REGIDESO (the national water and electricity company), and the training of its staff, were designed to improve the quality of services and its financial performance. 2. The project consisted of a 110 kV transmission line (83 km) from the Ruzizi II power plant (jointly owned by Burundi, Rwanda and Zaire) to Bubanza; construction of 110/30 kV substations in Bubanza and Cibitoke, two 30 kV subtransmission lines (42 km) to supply the regional towns of Rugombo, Mparambo, Mpanda and Muzinda and a 15 kV feeder to Katumba and distribution networks in these towns; construction of distribution networks to consumers in six low- income districts of Bujumbura; rehabilitation of the Ruzizi I - Bujumbura 70 kV line (owned by SNEL-Zaire) and Bujumbura substation; construction and equipping of a training center for REGIDESO; engineering and consultant services for management assistance to REGIDESO and training of its staff; follow up of a program to disseminate improved charcoal stoves and advise on petroleum matters. Implementation Exoerience 3. In general, works were completed several months after the original estimated date owing to delays in Credit effectiveness and late tendering. The completion of the training center was delayed by three years due to unduly long bid document preparation and problems of contract award (para. 5.04). 4. BurundiIs inability to rehabilitate the 70kV transmission line linking Zaire's Ruzizi I power plant to Bujumbura and the Bujumbura substation is now creating a bottleneck to new supply (para. 5.10). These installations are an important link in the supply of power to Burundi's network, but are owned by SNEL, the Zairian national power company. Discussions are now in progress between SNEL and REGIDESO to transfer the Bujumbura substation to REGIDESO so as to enable it to execute the required work. 5. The technical assistance had little impact on general or financial management of the company (paras. 5.11-5.14). 6. Government sponsored cookstove production took off slowly, but the technology has proven to be sound as evidenced by private sector artisans copying the design and by consumer use of stoves, which far exceeds the number of stoves produced by the official dissemination program (para. 5.15). Results  iii 7 The project was successful in meeting its primary objectives of augmenting and improving reliability of electricity supply to Bujumbura and its environs, of providing transmission and distribution facilities to receive additional power from Ruzizi II and serving additional consumer. Except for the rehabilitation of the 70 KV transmission line linking Ruzizi I power plant to Bujumbura and the Bujumbura substation, for which discussions are in progress to transfer it to REGIDESO, physical components were completed with delays but within cost estimates. However, objectives related to improving REGIDESO's financial performance were for the most part not met, although substantial improvements have been obtained within the follow-up Energy Sector Rehabilitation Credit. Use of improved charcoal stoves has yielded energy savings as both private sector stove manufacturers and consumers have adopted the new technology. REGIDESO staff received some limited training due to delays in constructing the training center. a. REGIDESOIs financial performance with regard to electricity operations could not be determined as separate accounts for electricity and water operations were not prepared up to 1991. Little progress was made at the beginning in establishing a sound pricing policy for electricity, until the issue was linked to the dialogue with IDA on general economic policy and management in the context of Structural Adjustment Credits. At the present time, tariffs are equal to marginal cost for medium voltage consumers and slightly lower for low voltage consumers. Sustainabil itY 9. In order to sustain the benefits of the project, REGIDESO and the Government should continue to focus on institutional development which will improve and expand utility services and implement sound commercial and financial policies. The benefits of the improved cookstove dissemination program have been increased through training of more private sector artisans and establishment of an appropriate commercialization process. All of the above actions are being supported by the follow-up Energy Sector Rehabilitation Project (ESRP, CR 2230-BU) which is currently under execution. Lessons Learned 10. Project design was sound, with the exception of the rehabilitation of the 70 KV transmission line and Bujumbura substation as mentioned earlier. Successful achievement of objectives required identification of issues and related corrective actions, including institutional strengthening and policy measures, to take place before or early in the execution period. Lessons learned pertain therefore to the need to ensure that actions are taken in a timely and effective manner. The transfer of SNEL-owned installations, whose rehabilitation in key to Burundi's power supply, might have been easier to complete if the issue had been raised and addressed in the context of regional cooperation at the time of construction of the Ruzizi II regional hydroelectric plant which, in fact, took place before project execution. With regard to the low-cost connection policy, more effort should have been made by both the Bank and REGIDESO to ensure that the policy was formulated and implemented early in the project execution period as originally envisaged. This however is now being done under the ESRP where connection costs were reduced by about 40 % and a comprehensive connection policy and program is being executed. Deterioration of REGIDESO's financial situation might have been avoided had commitment been greater to implement a sound tariff policy and eliminate accounting deficiencies. Where energy pricing is a politically sensitive issue, it may be more effective to link conditionality to up-front measures and, if necessary, to the economic policy dialogue, than to leverage investment operations where incentives to perform tend to diminish once the major components are implemented. 11. In cases of multi-product companies, the monitoring of only part of a company's operations may lead to incomplete solutions to problems and create an artificial view of financial soundness. Measures to achieve financial  iv soundness and improve financial management are more effective if they treat the company as a whole. REGIDESO has now separate accounts for electricity and water, but overall performance of the company should be stressed. The last lesson concerns the appropriate roles for Government and the private sector in the introduction of an energy saving technology. In the case of the improved cookstove dissemination program, the project has been successful in replacing a government-managed production process with more private sector involvement. Government intervention have been limited to creating incentives for adoption of the new technology by private manufacturers and consumers. Stove manufacturing is now carried out by private artisans.   PROJECT COMPLETION REPORT BURUNDI TRANSMISSION AND DISTRIBUTION PROJECT (CREDIT 1593-BU) PART I: REVIEW FROM THE BANK'S PERSPECTIVE 1. Proiect Identity Project Name : Transmission and Distribution Project Credit Number: 1593-BU RVP Unit Africa Region Country Department III Country : Burundi Sector Energy Subsector Power 2. Background 2.01 Burundi is a small landlocked country of 27,820 km2 with a population estimated at about 5.3 million (1991). Per capita consumption of non traditional energy (petroleum products and electricity) is only 12 kgoe, one of the lowest in Africa. Consumption of these fuels grew faster than population and GDP in the last two decades, averaging 9% per year during the 1973-80 period and 6% per year from 1980-88. 2.02 Burundi is rich in potential hydropower resources. However, exploitation of these resources has been constrained not by the resource base, but by the economic and financial problems of expanding the electrical network to consumers. Up to the early 1980s, Burundi relied almost exclusively on Ruzizi I, a power plant owned by SNEL-Zaire, for its electricity supply. Burundi participated jointly with Rwanda and Zaire in the construction of Ruzizi II1/, a project supported by IDA which started operation in 1989. 2.03 The main objective of the energy sector development strategy of the Government of Burundi at the time of the appraisal of the Transmission and Distribution Project was to reduce its dependency on foreign sources for the supply of electricity. Electricity was regarded as being vital to the economy and security of the country. Other elements of the strategy included improving the access of the population to electricity and creating a sound and efficient power utility. The Power Transmission and Distribution Project was intended to address all of these objectives. 3. Project Obiectives and Description 3.01 Prolect Oblectives. The main objective of the project was to augment and improve the reliability of supply of electricity to Bujumbura and its environs, by providing transmission and distribution facilities to receive power from the newly constructed Ruzizi II regional hydroelectric plant. This would extend service to additional consumers in order to sustain and increase the economic growth of industrial and commercial I/ Credits 1419-BU, 1420-RW, 1421-ZR of April 4, 1984 in the amount of SDR 13 million each. A PCR for this operation was issued on April 26, 1992.  - 2 - activities and the domestic sector. Extension of the distribution network to low income districts of Bujumbura was to substitute electricity for kerosene used in lighting, thus contributing to the reduction of the petroleum import bill while improving the lives of those people served. Extension of the subtransmission and distribution facilities to seven regional towns to the northwest of the capital aimed at further substitution of hydropower for kerosene and at replacement of autoproducers' diesel generation by hydroelectricity. In addition, the provision of technical assistance to REGIDESO and the training of REGIDESO staff helped improve the quality of its services and its financial performance. 3.02 Prolect Description. The project consisted of the following: (1) Extension of the Power Transmission and Distribution System (a) a 110 KV transmission (83 km) from the Ruzizi II power plant to Bubanza; (b) construction of 110/30 KV substations in Bubanza and Cibitoke, two 30 KV subtransmission lines (42 km) to supply the regional towns of Rugombo, Mparambo, Mpanda and Muzinda and a 15 KV feeder to Katumba, and distribution networks in these towns; (c) construction of distribution networks to consumers in six low-income districts of Bujumbura; and (d) rehabilitation of the Ruzizi I - Bujumbura 70 KV line and Bujumbura substation. (2) Training (a) construction and equipping of a training center; and (b) technical assistance for design and execution of a program to train REGIDESO staff. (3) Consultant Services (a) engineering services; and (b) technical assistance to REGIDESO for accounting and stock management. (4) Technical Assistance to the Ministry of Public Works, Energy and Mines for: (a) follow up of a program to disseminate improved charcoal stoves in Bujumbura2/; and (b) advice on petroleum matters. 4. Proiect Design and Oraanization 4.01 Initially, the Ruzizi II Regional Hydroelectric Project was to include, in addition to construction of a 27 MW hydropower plant, transmission and distribution facilities for the three participating countries (Burundi, Rwanda, Zaire). However, except for the regional 2/ The program was initiated under the IDA-supported Urban Development Project (Credit 1409-BU).  dispatching station, the preparation of this project between 1974 and 1981 did not consider the specifics of transmission and distribution within each national network. Because the requirements of the transmission and distribution networks vary from country to country, it was necessary to separate the transmission and distribution components from the Ruzizi II project, and to impiement them as separate projects, one of which was the Burundi Transmission and Distribution Project. For Rwanda and Zaire, there was no need to add an electricity transmission network to transport power from Ruzizi II to their consumption centers, as the high voltage (HV) lines from Ruzizi I and Mururu I station (all located near the Mururu II dispatching station) were suffiently sized to handle such transmission. For Burundi, however, there was a need for such a network as the 70 kv Bukavu-Bujumbura line is not only owned by SNEL but was not well sized to transport more than 10 MW. 4.02 The scope and timing of the transmission and distribution components can be deemed appropriate as they represent the logical follow- on to the Ruzizi II project. Project design also took into account the main recommendations of an Energy Sector Assessment carried out in early 1981. Thus, components for dissemination of improved charcoal stoves, funding of a petroleum advisor to the Ministry of Public Works Energy and Mines (MPWEM) and preparation of a long-term power master plan were included to (1) alleviate depletion of woodfuels, (2) reduce the cost of importing oil products and (3) reinforce energy planning capability at the subsector level. 4.03 Feasibility studies for a transmission line connecting the Ruzizi II plant to the Burundian power network, for supply of electricity to the provincial cities of Cibitoke, Rugombo, Mparambo, Bubanza, Mpanda, Muzinda and Katumba and for extension of the Bujumbura distribution network to six low-income districts, as well as studies for management improvements and an appropriate rate structure, were financed by an advance of US$400,000 from the Project Preparation Facility granted on May 10, 1983. The low-income districts were chosen to complement infrastructure development under urban projects supported by IDA (CR 1409- BU) and the UNDP. 4.04 During project preparation, the issue of a power rate increase arose. REGIDESO's previous increase had been in 1980, and low revenues contributed to an unacceptable rate of return on fixed power assets of 2%. At the Decision Meeting, it was agreed that a 25% increase, which would raise the company's return to 8%, would be a condition of Credit negotiation. This was later postponed to a condition of Board presentation and adjusted to a 30% increase to take into account the lapse of time. 5. Proiect ImDlementation 5.01 Overview. The Credit became effective on July 15, 1986, after four postponements of the limit date. The effectiveness delay was mainly due to the requirement for adequate assurances from Rwanda and Zaire concerning free access for the construction, operation and maintenance of the 110 kV line connecting the Burundi network to the Ruzizi II plant. In the end, the Bank accepted, based on previous positive experience with a parallel transmission line from Ruzizi I, legal texts which were less precise than it had originally requested. No issues related to free access arose during the construction period through the present. 5.02 Four contracts were let for works and four for services, with IDA financing those for the HV transmission line, substations, construction of a training center, engineering, management assistance, asset revaluation and a planning study. The Caisse Centrale de Coop6ration Economique (CCCE) financed the extension of the distribution network to six districts in Bujumbura and to the center of Katumba, as  -4- well as electrification of the Bubanza and Cibitoke regions. The CCCE financing was also used to pay for engineering services and assistance to the two projects. Finally, the CCCE financed regional electrification studies for the southeastern region of Burundi and for the 30 kv lines of Muyinga-Cankuzo and Cibitoke-Buhoro, and the construction of the latter for connection with a tea-processing plant. The German aid agency, Deutsche Geselluchaft fur Technische Zusammenarbeit (GTZ), provided a grant for the services of experts to design a training program and the Bank financed the construction of the training center, including bid document preparation. In general, works were completed several months after the original estimated date owing to delays in Credit effectiveness which resulted in late tendering. The training center, however, was completed with a three-year delay due to unduly long bid document preparation and problems of contract awards. Planned and actual dates for procurement and execution of works are compared in Table 4 of Part III. 5.03 Procurement. With the exception of construction of the training center, tendering and contract awards were carried out effectively and in accordance with the Bank's Guidelines. The threshold for prior review of bid documents was established at US$100,000. Nonetheless, the bidding process for the training center was initiated without such a review, leading the Bank to suspend the process in September 1988. After assuring itself that the bidding took place on the basis of adequate publicity, that a sufficient number of bidders had responded and that project and bid documents conformed to the Bank's requirements, the Bank advised REGIDESO in December 1988 that the comparison of offers could proceed. However, a contract was not awarded until January 1990 owing to the Burundi Government's decision to investigate a complaint submitted by another firm which had bid for the contract but not been selected. These delays required several extensions of the validity date of the offers and resulted in an increase in the bid price of the winning firm due to application of the price revision clause. 5.04 On several other occasions REGIDESO did not submit to the Bank for review, various documents related to procurement of consultant services and extension of contracts. During the March 1990 supervision mission, this problem was the subject of extensive discussions resulting in understandings which, though occurring too late to have an impact on the execution of the Transmission and Distribution Project, are likely to improve procurement practices under the follow-up ESRP (CR. 2230-BU). 5.05 Project Costs. The estimated cost of the Transmission and Distribution Project at the time of appraisal was about US$21.8 million. The final cost is about US$17.07 million as shown in Table 5A of Part III. The underrun of about 22% occurred because (1) two project components were not implemented: rehabilitation of the Ruzizi I - Bujumbura transmission line and Bujumbura substation (para. 5.10), and employment of a petroleum advisor to the MPWEM (para. 5.16)) and (2) the rate of exchange of contract currencies to the dollar favored the latter during the period of the major works. 5.06 Disbursements. The estimated and actual disbursements of Credit 1593-BU are given in Table 3 of Part III. The lag in disbursements was due to the delay in Credit effectiveness and the non-implementation of two components already indicated (para 5.05). The original closing date was December 29, 1989. The Credit was closed on December 31, 1991 after four extensions due to delay in the completion of the Training Center. Disbursements against commitments were made until August 28, 1991. As of May 30, 1992, there was an outstanding balance of SDR4,289,214.62 which does not include refunding of a portion of the Special Account. The Government did not want to cancel the unused funds early on as recommended by the Bank, but suggested it be used to finance household connections and computers. However, this never materialized. Once the portion of the Special Account is refunded, the remaining balance will be cancelled.  - 5 - 5.07 The Credit Agreement was modified in December 1987 to increase the percentage of foreign exchange expenditures for construction and erection of the transmission line and substation and to permit disbursement of Credit funds for local expenditures for the stove dissemination program. 5.08 Low-Cost Connection Policy. Feasibility studies for distribution extension carried out during project preparation, showed that high capital costs and upfront connection charges were a bottleneck to adding new electricity consumers. This was even more of a problem in the target districts of the project where the incomes of the population were below average. Thus, for the project to achieve the targeted number of new consumers, a policy reducing both the cost of a household connection and spreading payments over time was needed. A study with recommendations for a low-cost connection policy was completed by REGIDESO in 1986 to fulfill the condition set forth in the Project Agreement, but the Bank did not find the recommendations appropriate. REGIDESO undertook to revise the study, and issued a new version in 1988. Following implementation of the policy in mid-1988, new connections rose considerably. From an annual average of 779 connections in 1987-88, the figure jumped to an average of 1,717 connections in 1989 and 2,200 connections in 1990. Given the importance of a low-cost connection policy to the success and sustainability of the project, more effort should have been made to formulate and implement the policy early in the project execution period. Under the ongoing ESRP, a new policy is being adopted that will result in a further reduction of about 40 % for connection cost and will boost the connection program. 5.09 SNEL Transmission Line and Substation. An issue arose with regard to rehabilitation of the 70 kV line linking Zaire's Ruzizi I power plant to Bujumbura and the Bujumbura substation. For historical reasons, these installations are owned and operated by the Soci6t6 Nationale d'Electricit6 (SNEL), the Zaire national power company although they are mainly located in Burundi's territory. At the time of project preparation, there was an agreement in principle between REGIDESO and SNEL on the transfer of rights for the line and substation to REGIDESO, which has the greater interest in their effective operation and maintenance. A condition of disbursement of funds for this component was that REGIDESO obtain the necessary legal rights to protect its interests. In 1988, SNEL withdrew its agreement to the transfer and proposed instead to finance the rehabilitation works using funds from the IDA supported Power II Project in Zaire (Credit 1712-ZR). This did not materialize either due to overcommitment of the IDA Credit. The line and substation are now in such poor condition that they represent a bottleneck for reliable supply to Bujumbura and to other centers supplied through the capital. In the absence of a transfer agreement with the Zairian authorities, a new substation will need to be built, at a higher cost than rehabilitation of the existing one. Given the critical role the line and substation play in supplying power to Burundi's major population centers, more attention should have been given to a satisfactory solution before project approval. This issue was recently brought again to the attention of SNEL management. As a result, discussions are now underway for the transfer of rights to take place with Bank assistance. 5.10 Strengthening of REGIDESO. The diagnostic study for the formulation of a program to reinforce REGIDESO's management practices was not completed prior to project appraisal. Selection of a consulting firm took longer than anticipated, and the study did not begin until after project appraisal. Given that delay, the Bank's internal review of the project recommended that a plan of action for management improvement be agreed at Credit negotiations, in order for institutional reform to begin early in the project execution period. However, at negotiations, the limit date for agreement on an Action Plan was further delayed to Credit effectiveness.  5.11 The Plan was completed in mid-1985. To implement it, REGIDESO decided to maintain the consulting firm which had undertaken the diagnostic study through sole source negotiation. One year later, REGIDESO requested that assistance be extended to ensure that the new procedures which had been defined would be implemented. For this extension, REGIDESO proposed that two experts from the consulting firm be given individual contracts to continue their work in the areas of finance/administration and inventory management. REGIDESO cited cost savings as the main reason for choosing individual contracts over extension of the original firm, and confirmed that the two experts would hold line management positions. The Bank did not object to the new arrangement which came into effect in mid-1986. 5.12 By mid-1987, little progress had been made in attaining the objectives of the management improvement program. In spite of a focus on improving inventory and financial management, REGIDESO was still unable to carry out an acceptable inventory at year-end or to produce financial accounts which could be audited on time. It is not clear whether the two experts exercised their authority ineffectively, or whether their authority was merely titular and their services were not fully utilized by REGIDESO. In September 1987, the Bank requested an evaluation of the services of the two experts and supported a proposal from REGIDESO to reorient the work of the finance/administration expert away from day-to- day tasks to resolution of commercial issues. 5.13 While there is little record of the subsequent activities carried out, it is clear that the technical assistance program did not have a significant impact on general or financial management of the company. As a result, in mid-1988, the Government agreed to include REGIDESO as one of the enterprises to be rehabilitated and strengthened under the Economic and Public Enterprise Management Project (Credit 1795- BU). A new diagnostic study was undertaken which addressed broader issues such as REGIDESO's autonomy, financial restructuring, staffing requirements and the reciprocal Government-REGIDESO obligations to be outlined in a performance contract. In April 1989, the Bank and REGIDESO's principal donors outlined a second reform program and agreed upon joint support for its implementation. The Bank has provided funding for a Management Assistance Partnership Program under the ongoing ESRP which paired REGIDESO with an international power utility. A detailed performance contract was signed in July 1989 and its effective implementation is monitored by a committee of various representatives of key ministries and the Public Enterprise Bureau (SCEP). Early results of the new approach have been positive. REGIDESO and the Government have acted decisively to adjust power rates (para. 6.06), reduce staff and implement new commercial policies (para. 5.08), indicating their commitment to reform of the company. 5.14 Stove Dissemination Proaram. The project was to provide limited funding to ensure continuity in the marketing of improved cookstoves developed under the Urban Development Project (Cr. 1049-BU), which was scheduled to be completed at end-1986. The program advanced slowly. First, it was attached administratively to several different Government agencies including the Direction Urbaine de Bujumbura (DUB), and the National Peat Bureau (ONATOUR). The DUB and ONATOUR felt little ownership of the program as it was not directly relevant to their main operations. This arrangement created little incentive to produce improved stoves and fewer stoves were manufactured under the program than forecast. Nonetheless, the program did have successful aspects. Numerous artisans learned the new technologies and the population became well acquainted with the stoves because of the effective publicity campaigns. Consumer stove use in Bujumbura, as determined by surveys, far exceeds the number of stoves produced by the stove dissemination program itself. Under these circumstances, direct assistance to and earlier involvement of the private sector, as is being done in the ESRP, could have made the program more effective.  -7- 5.15 Petroleum Adviser. In December 1986, the Bank was notified that a firm had been selected to supply an adviser to the MPWEM, however, negotiations with the firm were never concluded owing to a change in Government. A study of least-cost supply of petroleum products was completed under the joint UNDP/World Bank Energy Sector Management Program3/, complemented by an independent consultant's study on pricing policy. These recommendations are being implemented in the ESRP. 6. Prolect Results. 6.01 The project was successful in meeting its primary objectives of augmenting and improving reliability of electricity supply to Bujumbura and its environs, by providing transmission and distribution facilities to receive additional power from Ruzizi II and serving additional consumers. Most physical components were completed with delays but within cost estimates. Objectives related to REGIDESO improving its management and financial performance were largely unmet: implementation experience has shown little early evidence of the Government and REGIDESO's commitment to these goals. This however has now changed, and the Government has shown greater commitment to structural adjustment and public enterprise reform. The Government and REGIDESO signed a Performance Contract in 1989, which is being successfully implemented. A financial restructuring package for the utility is also being put in place and implemented under the ESRP. Use of improved charcoal cooking stoves have yielded energy savings as both private sector stove manufacturers and consumers have adopted the new technology. REGIDESO staff received limited training due to delays in constructing the training center, but technical operations have been satisfactory. 6.02 Physical Results. The additional HV transmission capaicity and extension of the power network into unserved areas were to be complemented by adding about 2,500 new connections in Bujumbura in 1986 and 1987 for a total estimated annual consumption of 8.2 GWh. The 30KV extensions in the Cibitoke and Bubanza regions were to satisfy demand estimated in 1988 at 5.0 GWh. While data exist for REGIDESO's annual overall new connections and power consumption, none are available for the project area, making it impossible to determine whether the specific targets cited above were achieved. It is certain that the objective of 2,500 new connections was not met in 1986-87, since total new electricity connections for those years were only 1,558. This was in part due to late implementation of the low-cost connection policy (para. 5.08) which was to increase affordability in the lower income areas of the project. 6.03 Economic and Financial Impact. The SAR calculated the economic rates of return for (1) the Bubanza and Cibitoke Substations and transmission/ distribution for regional towns at: Cibitoke group 11%, Bubanza group 10%, Gatumba group 9%; and (2) low-income districts of Bujumbura 6%, excluding consumer surplus and the savings on imported diesel oil and kerosene. Data to enable estimates of the actual economic rates of return are not available. Financial rates of return, as provided by REGIDESO and found acceptable by the Bank, are of 9.84% and 22.14% for Ruzizi II - Bubanza transmission line and low-income districts of Bujumbura respectively, (see Part III, para. 6.A. for underlying assumptions). Since these calculations exclude consumer surplus and the substitution of kerosene, economic rates of return should be higher. 6.04 Financial Performance of REGIDESO. The project provided for monitoring of financial performance of the electricity operations of REGIDESO and to this end, required that REGIDESO prepare separate accounts 3/ Issues and Options in the Energy Sector, Report No. 9215-BU dated January 1992.  for water and electricity operations. However, REGIDESO did not prepare separate accounts, so that data is not available to calculate ratios for cash generation and debt. The reason given for this was the lack of an analytical accounting system. In cases of multi-product companies, the monitoring of only part of a company's operations may lead to incomplete solutions to problems and create an untrue view of financial soundness. Measures to achieve financial soundness and improve financial management are more effective if they treat the company as a whole. This approach has been adopted for the follow-up Energy Sector Rehabilitation Project. REGIDESO is currently providing separate accounts for water and electricity activity. Summary financial statements for the project execution period as well as projected statements for electricity operations prepared for the SAR are given in ANNEX 1. 6.05 REGIDESO's accounting system and controls were determined at the time of project preparation to be deficient and gave rise to the recommendation for financial management and accounting system reform as the highest priority under the management strengthening component. In spite of assistance to improve the reliability of accounting data (para. 5.12) and a proposal that REGIDESO's auditors intervene in mid-1987 to improve accounting controls, the auditors have been unable to issue an opinion on the accounts from 1986 to 1990, as data was deemed unreliable due to lack of rigor, imprecision in the definition and application of certain accounting principles and the inability to reconcile data for the capital works account, inventory, revenues and expenses. Under the ESRP, REGIDESO has taken steps to correct the above sistuation. A sound accounting system is now in place. 6.06 Electricity Pricina. As noted in paragraph 4.03, increases in electricity rates were considered key to improving REGIDESO's financial performance. The rate increase of 30% recommended as a condition of Board presentation wae only partially implemented (20% increase, February 1985). REGIDESO requested, and the Bank agreed, that an additional increase would be put into effect when the study to revise the structure of electricity rates was completed. This study was completed in June 1985, but REGIDESO did not accept the resulte and therefore did not adjust its rates. Adjustments were proposed by the Bank for 1986-89 (30%, 25%, 25%, 30% respectively) based primarily on the rate of return covenant for the project. Increases were approved by the Government in mid-1986, 1988 and 1989 (26%, 12.5%, 11% LV/8% MV respectively), but these were considerably less than the increases needed to meet financial performance objectives. Inadequate rate increases coupled with rising operating costs and debt service led to deterioration in REGIDESO's financial situation. At end- 1989, a satisfactory study of the power rate structure was finally completed by an independent consultant. Rate adjustments were incorporated into the dialogue on enterprise reform and improved macro- economic management. In mid-1990, the Government adjusted the medium voltage rate in line with its long-run marginal cost and increased low voltage rates by 19.4%. The next rate increase which would bring LV rates in line with LRMC is expected to be approved before the end of 1992. Placing the electricity issue in the broader economic arena has thus been very effective. Where energy pricing is a politically sensitive issue, it may be more effective to link conditionality to up-front measures and if necessary, to the economic policy dialogue. In investment operations incentives to perform tend to diminish once the major components are implemented. 7. Sustainability. 7.01 Lack of progress in the early stages of the project were corrected later and and formed the basis for the preparation of the ESRP. Substantial project benefits have resulted from consumers' increased access to electricity in regional towns and six districts in Bujumbura and from the new household connection policy. The project has also  -9- contributed to reduced consumption of'charcoal and therefore to slower destruction of forests. Progress is now well underway in the areas of strengthening REGIDESO management and financial performance through the ESRP. 7.02 In order to sustain the benefits, REGIDESO and the Government should continue to monitor institutional development, with the objective of improving and expanding utility services and implementing sound commercial and financial policies. The benefits of the improved cookstove dissemination program will be increased through provision of training to more private sector artisans and establishment of a more effective commercialization process. This is also supported by the ongoing ESRP. 8. Bank Performance. 8.01 The Bank performed well on the construction aspects of the project. The Bank also demonstrated flexibility in accepting to modify the Credit in line with the actual developments, although some of the additional amendments to use undisbursed funds, were not finalized. However, the Bank should have insisted on up-front measures for improving REGIDESO's management and invoked the appropriate remedies when pricing and financial covenants were not met. The Bank should have also helped Burundi and Zaire solve the issue related to SNEL's ownership of the 70 kv transmission line before project implementation. 8.02 The Bank should have paid greater attention in the design of the project to the connection policies needed to realize the benefits of the network extensions. Given the importance of a low-cost connection policy to the success and sustainability of the project, more effort should have been made to ensure that the policy was formulated and implemented early in the project execution period, as originally envisaged. 8.03 In spite of agreed objectives for establishing the level and structure of electricity rates, concerns other than REGIDESO's financial soundness were determining electricity prices. The Bank should have applied the remedies at its disposal when agreed conditions pertaining to pricing and financial performance were not fulfilled. 9. Borrower's Performance. 9.01 REGIDESO was the project's implementing agency for the Borrower (Government of Burundi) responsible for execution of the electricity components of the project. REGIDESO's performed well with regard to the construction aspects of the project. With regard to improved management, particularly in the area of finance and accounting, the commitment to the objectives was weak and during project implementation, REGIDESO's performance deteriorated significantly. Energy losses climbed from about 10% to about 20%. Receivables on Government's accounts increased from 6.3 months of sales in 1985 to 17.8 in 1989. The Government resisted raising electricity tariffs and, as the only shareholder, accepted unsatisfactory accounting and management practices. This situation changed in later stages of the project and REGIDESO and the Government are fully committed to implement the objectives of the new ESRP. 9.02 REGIDESO was responsible for managing the consultants it employed and while their performance was not fully satisfied, their contract was renewed. REGIDESO terminated their employment only under strong pressure from the Bank. Given the commercial value of a sound connection policy and its importance for meeting the Government's objective of greater access to electricity, REGIDESO should have made a  - 10 - greater effort to devise the low cost-connection policy early in the project execution period. 9.03 Rehabilitation of the SNEL-owned transmission line and Bujumbura substation in order to ensure reliable supply to Burundi was a well-known issue at the time the Ruzizi II project was evaluated. Had the issue been raised at that time, it might have been settled in the context of regional cooperation, with the assistance of the Bank. Given the critical role the line and substation play in supplying power to Burundi's major population centers, more attention should have been given to a satisfactory solution early in the project preparation period, rather than during project execution. 9.04 The Government had an effective role in the technological development and the dissemination of improved cookstoves, but direct employment of artisans was not an appropriate approach. In the early stages, the Government could have provided the incentives and/or seek capital to encourage more involvement of the private sector and funded only the promotional campaign to encourage consumer use. Once the stove technology was determined to be sound and attractive to consumers, the private sector should have taken over. 10. Prolect RelationshiDs. 10.01 The relationship between REGIDESO and the Bank was characterized in the early stages by delays in submitting to the Bank various documents related to procurements of consultant services and extension of contracts. However, it improved later and at the end of the implementation period both parties reached understandings that are likely to improve procurement practices under the ESRP. 10.02 Following the failure of the first management improvement program, the Bank took the lead in obtaining a consensus among REGIDESO's main donors on needed institutional reforms and their implementation. This gave rise to the REGIDESO Rehabilitation Program, which is supported by the Energy Sector Rehabilitation Project. Joint missions were undertaken with the CCCE which is the other main donor in the power sector in Burundi, and agreed approaches have been implemented. 11. Consultina Services. 11.01 The project was prepared by an international engineering firm with extensive experience in the region, which also supervised construction. Performance was satisfactory. The same firm also carried out studies on the power rate structure and a long-term development plan. Recommendations of the first study were not accepted by REGIDESO. The Bank did not accept the recommendations of either studies and no final payments were made in accordance with the contracts. 11.02 Performance of consultants for management assistance was mixed, but this was more related to how REGIDESO employed them rather than to their competency. 12. Proiect Documentation and Data. 12.01 The Staff Appraisal Report provided a useful framework for the construction aspects of the project, but could have been more explicit on the objectives of management strengthening for REGIDESO. 12.02 Information pertaining to the early stages of project preparation and some key internal documents were lacking in the Bank's archives. Audit reports were received with delays throughout the project implementation.  - 11 - PROJECT COMPLETION REPORT BURUNDI TRANSMISSION AND DISTRIBUTION PROJECT (CREDIT 1593-BU) PART I I PROJECT RESVIEW FROM THE BORROWER' S PERSPECTIVE 1. Prolect Oblectives and DescriDtion 1.01 Project objectives The main objective of the project was to improve electricity supply to the Bujumbura region and extend the network into areas not yet electrified. Project works will augment the supply of energy (greater reliability), and expand access to electricity for consumers either in districts of Bujumbura with low electricity coverage or in rural areas not yet electrified (Bubanza, Cibitoke, Muzinda, Mpanda, Katumba, etc.). The program will help reduce consumption of kerosene and to a less extent charcoal. After completion of the electrification program for the outlying districts of Bujumbura, REGIDESO offered its new clients inexpensive portable electric stoves (two burners) (FBu 7,070 each). The expansion of the distribution network in rural areas made it possible to reduce consumption of diesel oil and gasoline used to generate production of electricity by the communities (schools, hospitals, churches, etc.), and the permanent availability of a sure source of energy made possible the establishment of several workshops in those areas (electric-powered mills, carpentry and welding workshops, in particular). In addition, the provision of technical assistance to REGIDESO, construction of a training center and training of REGIDESO staff were designed to improve its financial results of operation and the services rendered the company. 1.02 Project description The description of the project in Part I is correct, although a 15-kV line was not built for Katumba (1.b) because the line already existed to supply the Zairian city of Uvira from Bujumbura. REGIDESO merely built a distribution network in the village of Katumba by installing MV/LV stations as well as the LV distribution network. In addition, under consultant services, the Credit financed two institutional studies, namely: - an electricity pricing study - a study of the Burundi master electrification plan. 2. Proiect Execution 2.01 SNEL transmission line and substation The Credit provided US$320,000 for the rehabilitation of the 70-kV line and the 70/6.6-kV station. The Bank and REGIDESO agreed that utilization of such an amount would require the agreement of SNEL. For various reasons, in particular the frequent turnover in SNEL senior staff, no agreement was reached between the parties. Now that SNEL plans to build a 70/30-kV station near Gihungwa 30 km from Bujumbura to supply Kiliba and Uvira, REGIDESO would like to rehabilitate the section of line between Gihungwe and Bujumbura as well as the receiving station in Bujumbura, in agreement with SNEL. It is still understood that SNEL is not to renege on its previous obligations vis-a-vis REGIDESO and the  - 12 - Government of Burundi, which include proper maintenance of SNEL equipment to supply electricity to Bujumbura. 2.02 Strengthening of REGIDESO The selection of a consultant war not easy for REGIDESO because it had very little expertise in the matter at the time. The consultant selected did therefore not receive adequate support and its first reports were not satisfactory. The diagnostic study submitted by the PA Conseil consultants in April 1985 contained several gaps and inconsistencies. The study was widely disseminated among REGIDESO higher-level staff and their comments submitted to the consultant, but they do not seem to have been taken into account. ostensibly seeking to increase its effectiveness, the coneultant asked that its experts be brought into high-level positions in the REGIDESO hierarchy in order to monitor the implementation of its plan. The result was not any more conclusive. This failure is apparently due to the inadequate capabilities of the experts sent by the consultant. 2.03 Stove dissemination program The program was misdirected from the outset. Because it was partially subsidized by the Government, in particular as regards the collection of raw materials, the transfer of the program to the artisans could not continue becauee of the relatively high cost of each stove in comparison to the traditional model used in the towns. 3. Proiect Outcomes 3.01 The project succeeded in achieving its primary objectives, in particular the commissioning of the new facilities on schedule. The delays experienced during contract effectiveness were sometimes resolved. As for the objectives involving an improvement in REGIDESO electricity services, it is fair to say that they were nevertheless largely achieved. In point of fact, the inhabitants of the outlying districts of Bujumbura, who had complained of a chronic lack of electricity, were satisfied and the cost per subscriber connection was reduced by some 40% by eliminating expenditures for network expansion. As regards an improvement in financial results, the objective was not achieved because at the time REGIDESO had little expertise in that area. Moreover, it did not receive the necessary support from the government or the donors involved in the program. Fortunately, a new program was launched in 1989 and the initial results are satisfactory. 3.02 Physical outcomes Data on the new connections in newly electrified districts and centers are available from REGIDESO's Commercial Directorate. However, the target of 2,500 new connections in 1986/1987 could not be achieved because the physical infrastructure (distribution networks) was not completed until 1988.  - 13 - 3.03 Electricity pricing REGIDESO did its utmost to honor its commitments as regards increasing electricity tariffs, but these had to be approved by the Government, which was reluctant to make closely spaced rate increases because of the anticipated negative reaction this would have caused among the public at large. In addition, the Bank's view that major rate increases were the sole way to put REGIDESO on sound financial footing was not realistic. The current approach based on economic and financial analysis of projects and negotiation with the Government to write off the debt for projects that are not viable propositions seems more appropriate to us. 4. Bank Performance The Government and REGIDESO appreciated the flexibility demonstrated by the World Bank in agreeing to modify the disbursement conditions in response to actual needs regarding foreign exchange. In general, the conditions of 90% financing by the Bank and 10% by the Borrower did not always take into account the invoicing by contractors and their needs for foreign exchange and local currency. When necessary, the Bank and Borrower should reconcile disbursement conditions, as was done in this case. Nevertheless, it is not necessary to take drastic steps such as suspension of the credit in the event of non-compliance with certain points in the agreements. Rather, arrangements satisfactory to all parties should be sought together with the Borrower, in the interests of smooth project development. Above all, the Bank must promote dialogue with the Borrower and not necessarily trust the various consultants, who are not generally bound by satisfactory results. 5. Borrower Performance The Government and REGIDESO had a strong interest in improving management, but as stressed earlier, the consultant's experts were not up to their tasks and REGIDESO did not have personnel with the appropriate expertise to monitor the performance of the experts. We would also stress that the Bank should have given REGIDESO greater support in directing the work of the consultant and ensuring monitoring.  -14- PART III: STATISTICAL INFORMATION 1. Rotated IDA Credits Credit Project Title Approval Purpose Status Number Date 1049-BU Urban Development Project 06/24/80 Correction of urgent deficiencies in Coepleted the capital city and establishing a basis for more efficient future growth through basic infrastructure nd housing loans to 7 Bujumbura neighborhoods, constructfon of 3 primary schools, improvements to sotid Haste collection and promotion of artisans including metalworkers who were introduced to new techniques for producing more efficient charcoal-burning stoves. 1419-gU Ruzizi II Regionat Hydroelectric 12/06/83 Construction of the Ruzizi II facilities Compteted - Project with initial installed capacity of 27 MW Project Completion and creation of the multinational public Report issued enterprise, the Societd Internationala in April 26, 1992 d'ELectricit6 des Pays des Grands Lacs to construct and operate the plant. 1795-BU Economic and Pub ic Enterprise 05/14/87 Technical assistance to (1) launch Under operations of the MationaL Service in execution; charge of public enterprises, (2) develop closing date planning and project appraisal capacity December 31, and (3) strengthen capacity to prepare the 1992. pubtic investment program. 2230-BU Energy Sector Rehabilitation Project 04/25/91 Promotion of rational energy policies and Credit declared strengthening management of energy sector effective on resources through services for institution December 4, 1991 buiLding (REGIDESO and DGHER), biomass and household energy program, a rural electrifi- cation Master Plan and through doubling of the 110 kV transmission line from Bubanza to Bujumbura and an intensive program of new connections. 2. Project Timetable Planned Actual Identification 1/ 6/00/82 - 8/00/82 Pre-Appraisal Mission 00/00/00 7/26/83 - 7/30/83 Appraisal Mission 06/84 - 7/84 6/24/84 - 7/14/84 Post-Appraisal Mission - 11/20/84 - 11/23/84 Credit Negotiation 01/00/85 4/11/85 Board Approval 04/00/85 5/09/85 Credit Signature 06/00/85 6/14/85 Credit Effectiveness 09/14/85 7/11/86 1/ Identification and preparation took place under the Ruzizi IX Regional Hydroelectric Project which initially included the complementary works in Burundi, Rwanda and Zaire that gave rise to the Burundi Transmission and Distribution Project, the Rwanda Power Project (CR. 1495-RW) and the Zaire Power II Project (CR. 1712-ZR).  - 15 - Project Completion 06/30/89 08/31/91 Credit Closing 12/31/89 12/31/91 3. Credit Disbursements (USs millions) Bank FY 1986 1987 1988 1989 1990 1991 1992 Appraisal Estimates 2.0 8.0 10.3 11.9 12.3 12.3 12.3 Actual 0.0 2.7 6.9 10.1 10.7 10.8 Actual as % of Est. 0% 34% 67% 85% 87% 88% 1/ Date of Final Disbursement: 1/ As of May 30, 1992, there is an outstanding balance of SDR4,289,214.62 which does not include refunding of a portion of the Special Account. 4. Project Implementation A. Project Monitoring Planned Actual Ruzizi II - Bubanza Transmission Line Issue of Tender Documents 6/30/85 04/10/86 Receipt of Tenders NA 06/18/86 Contract Award 12/31/85 11/26/86 Commissioning 6/30/87 9/88 Bubanza and Cibitoke Substations Issue of Tender Documents 06/30/85 04/10/00 Receipt of Tenders NA 06/18/86 Contract Award 12/31/85 11/26/86 Works in Progress 12/86-6/88 12/86 - 10/88 Connections in Bujumbura and Gatumba Issue of Tender Documents 06/30/85 04/10/86 Receipt of Tenders NA 06/18/86 Contract Award 12/31/85 11/26/86 Works in Progress 12/85-12/88 11/86 - 12/88 Training Center Construction Issue of Tender Documents 06/30/85 00/00/00 Receipt of Tenders NA 08/26/88 Contract Award 12/31/85 05/17/90 Works in Progress 12/85-12/91 12/91  B. Performance Targets 1985 1986 1987 1988 1989 1990 Target Actual Tarset Actual Target Actual Target Actual Target Actual Target Actual Losses (X) 16 10.6 15 10.8 14 14.4 13 15.6 - 20.9 - 19.5 Connections per Employee 18 19 20 17 23 18 25 20 - 22 - 23 Receivables (months of sales) Govt. - 6.3 "' 6 6.3 4 8.3 4 19.8 4 17.8 4 8.9 Non-govt. 4 4/3 2' 4 8.8 4 10.6 4 Rate of Return - - 4 -0.1 4 1.4 4.5 -1.3 6.5 1.0 8 -0.3 Working Ratio2' .58 .98 .46 1.01 .42 .87 .37 1.15 - 1.14 - 1.06 Debt Service - - 1.5 NA 1.5 NA 1.5 1.37 1.5 -1.12 1.5 1.17 co Sources: Staff Appraisal Reports 5312-BU, 9068-BU; Project Agreement; REGIDESO Audited Accounts Note: SAR 5312-BU and the Project Agreement for Credit 1593-EU express financial targets in terms of electricity operations only. AS REGIDESO did not prepare separate accounts for water and electricity operations, the actual indicators are calculated for joint water and electrically operations. 1/ Separate data for government and non-goverrment billings and arrears were only available for 1988 and 1989. 2/ Four months' billing for clients billed on a bi-monthly basis and 3 months' billing for clients billed every month. 3/ The ratio of operating expenses before depreciation to operating revenues. This was erroneously titled "operating ratio" in SAR 5312-BU.  - 17 - 5. Project Costs and Financing A. Project Costs (USS millions) Appraisal Estimate Actual Local For.Ex. Total Local For.Ex. Total rnCItC rir@tc rnct r-tcw r-tc rnct Transmission and Distribution 110 kV Line 0.90 3.70 4.60 0.22 2.22 2.44 Bubanza Station 0.65 1.1 1.75 0.76 3.42 4.18 Cibitoke Station 0.4 0.5 0.95 0.30 1.00 1.30 30kV Sub-trans. line 0.3 1.0 1.30 Dist. networks for 7 towns 0.15 0.55 0.70 0.15 0.55 1.30 Dist. in 6 Bujumbura neighborhoods 0.78 3.10 3.88 0.50 3.19 3.69 Engineering. TA. Training Engineering Services 0.16 0.90 1.06 - 1.11 1.11 Management Assistance 0.18 1.00 1.18 0.18 1.00 1.18 Studies 0.02 0.20 0.22 0.02 0.20 0.22 Train'ing 0.23 1.40 1.63 0.23 1.40 1.63 Petroleum Adviser 0.01 0.10 0.11 0.01 0.10 0.11 Stove Dissem. Program 0.07 0.10 0.17 0.07 0.10 0.17 Base Costs 3.80 13.75 17.55 2.44 14.29 16.73 Contingencies 0.95 3.30 4.25 0.33 2.46 2.79 TOTAL COSTS 4.75 17.05 21.80 2.77 16.75 19.52 Sources: Staff Appraisal Report No. 5312-BU REGIDESO B. Financing Plan (USS miLlions) Appraisal Estimate Actual Local Foreign Total Local Foreign Total IDA 1.85 10.45 12.30 1.09 10.89 11.98 Belgium .30 1.20 1.50 - - - CCCE .40 4.60 5.00 0.50 6.18 6.68 GTZ - .80 .80 - - - REGIDESO 2.15 - 2.15 2.26 - 2.26 Goverrunent .50 .50 1.00 1.14 - 1.14 Total 4.75 17.05 21.80 4.99 17.07 22.06  - 18 - 6. Project ResuLts A. Economic liract Data to enable us to calculate the actual economic rates of return are not available. Financial rates of return, as provided by REGIDESO and found acceptable by the Bank, are of 9.84% and 22.14% for Ruzizi 11 - Bubanza transmission tine and Low-income districts of Bujumbura respectively. Since these calculations exclude consumer surplus and the substitution of kerosene, economic rates of return should be higher. The underlying assumptions are: (a) The caLculations are based on 1988 prices which have been updated to 1991 prices using the unit values of exports of manufactured goods from developed countries. (b) The energy losses are estimated at 2% for high voltage (NV) and 10% for low voltage (LV) for Ruzizi Il-Bubanza line. (c) The total investment cost is estimated at FBu 1,341,034,000 for Ruzizi Il-Bubanza line and FBu 367,502,963 for the LIDB. (d) An average tariff of FBu 16,60 has been used throughout year 2015 for Ruzizi Il-Bubanza while a 15% increase every 2 years has been assumed for tariff to be applied to the LIDB. (e) Depreciation rate for 3% and 1.14% have been assumed for the LIDB and Ruzizi II-Bubanza line respectively. B. Financial Impact Financial projections prepared for Staff Appraisal Report No. 5312-BU yielded the following outcome for REGIDESO electricity operations. Projections were based on rate increases to produce an increasing rate of return and increasing internal cash generation adequate to support financing for REGIDESO's projected investment program. 1985 1986 1987 1988 1989 % rate increase 20 33 23 15 15 Operating revenues 833.1 1386.6 1787.3 2264.1 3006.9 (BuF million) ROR on revalued assets (X) 3.8 4.5 4.0 4.8 6.6 Contribution to Construction (%) 3.9 16.7 37.8 70.0 36.7 Debt Service Coverage 1.5 2.5 2.4 2.6 2.0 Debt/Debit & Equity 59.2 57.7 56.1 55.3 51.5 yOperating Ratio 87 70 70 70 65 Current Ratio 1.4 1.1 1.8 1.9 2.1 Actual rate increases and operating revenue were as follows: 1985 1986 1987 1988 1989 % rate increaseY' 20 26 - 12.5 MV 11 LV 8 Operating Revenues 1077 1287 1542 1590 1812 (BuF million) Unless otherwise indicated, adjustments represent average rate increases. CalcuLation of a rate of return on fixed assets and other financial ratios pertaining to eLectricity operations is not possible since REGIDESO did not prepare the required separate accounts for electricity and water operations. Actual financial indicators for the company as a whole appear in Table 4B of Part III.  - 19 - 7. Status of Covenants Covenant AppLicable Remarks Section The Government would ensure that REGIDESO would be CA 4.01 ComPlied. REGIDESO did provided with funds necessary to meet construction obtain Govermnent funds for costs of the Project; such funds to be repaid by conistruction under the REGIDESO within 4 years. Project Employment by 12/31/85 of an advisor to the CA 4.02 Non-compliance. No advisor minister responsible for energy to assist in was selected. formulating strategies for importing petroleum products at least cost, to develop sound pricing policies for the domestic marketing of such products and to train staff of the Ministry; advisor and TOR to be acceptable to IDA. Standard clauses relating to procurement, PA 2.02, PA CompLied. insurance, record keeping, and exchange of views 2.03 with IDA. PA 2.05 REGIDESO to perform all its obligations under the PA 2.04 Non-comoliance: As per our Subsidiary Loan Agreement. review in June 1992 this is, however, being taken care of in the financial restructuring package currently under preparation. REGIDESO to employ engineering consultants to PA 2.06 ComPlied. assist in carrying out Part A of the Project. REGIDESO to employ by 12/31/85, a management PA 2.07 Comglied. assistance team to carry out Part 9.1 of the Project and the plan of action described in Section 6.01 (b) of the Credit Agreement. REGIDESO to employ by 10/1/85 a Training Manager PA 2.08 Complied: Training and 3 training specialists with counterparts, all Specialists and Managers are with TOR satisfactory to IDA. A training program being currently used by for electricity department, financiaL and Regideso at the Training achinistrative personnel satisfactory to IDA was Center. to be initiated by 9/1/86. REGIDESO to complete a connection study by 6/30/86 PA 2.09 ComPlied: The study was and, 3 months after its completion, exchange views completed and a low-cost with the Goverrnent and IDA on recommendations of connection policy is being the study followed by implementation of the implemented as of June 1992. recommendations. REGIDESO to maintain records and accounts in PA 4.01(b) Partial-ComPliance accordance with sound accounting practices and Reports were received with submit audited financial statements to IDA 6 delays beginning in 1986, months after the end of each financiaL year however, the audit firm has beginning in 1986. issued a denial of opinion through 1990. In 1991, the Auditors recommendations were impLemented for 1990 audited accounts. For expenditures with respect to withdrawals PA 4.01(c) ComPlied. REGIDESO does not requested on the basis of statements of employ statements of expenditure, REGIDESO would maintain separate expenditure accounts for such expenditures, retain all documentation for one year after the Credit closing date and ensure that the accounts were the subject of a separate opinion by its auditor.  - 20 - REGIDESO to maintain a separate account for its PA 4.02 Partial-compIliance. Accounts electricity and water operations incorporating are now maintened separately anruaL revaluation of its fixed assets in service for electricity and water. at the end of each fiscal year in accordance with However, incorporation of sound and consistently applied methods of revalued assets could be valuation satisfactory to IDA. delayed for a few years until Regideso reaches full financial recovery, as the revaLuation offsets benefits of the restructuring measures. REGIDESO to establish by 6/30/86, a ten-year PA 4.03(a) Comnlied: In April, 1992. Least-cost development program of capital investments in the electricity sector and exchange views with IDA. REGIDESO will consult with IDA on investments over PA 4.03(b) Partial compliance. An USS5 million and ensure that every investment in Energy Sector PIP for 1993- the electricity sector be economicalLy and 1995 was agreed upon with the financially justified. Bank in June 1992. Economic justification will sent to the Bank by end of December 1992. REGIDESO to establish and make effective by PA 4.04 Conmliance. Tariffs were 1/1/86, a new tariff structure for eLectricity increased as agreed upon; new taking into account marginaL costs, cross- tariff structure was subsidization and extension of services to lower impplemented. Tariffs will income groups; new structure to be satisfactory to again be increased by July IDA. 31, 1992. REGIDESO to take all measures necessary to achieve PA 4.05(a) Non-Comnliance. However, rates of return on fixed assets in operation of 4% under the financiaL in 1986-87, 4.5% in 1988, 6.5% in 1989 and 8% for restructuring package to be 1990 and thereafter. adopted, Regideso will comply with this. Before September 30 of each fiscal year, REGIDESO PA 4.05(b) Partial coavLiance. Results to review the adequacy of its tariffs to achieve were furnished to IDA in the rate or return required under 4.05(a) and March 1992, the Goverrvnent furnish the results to IDA. has informed that it will be implemented by July 31, 1992. In respect of its water operations, REGIDESO to PA 4.06(a) Comnliance. In June 1992. take all measures necessary to produce funds to make a reasonabLe contribution to the average of its capital expenditures for the proceeding, current and forthcoming years. Before September 30 of each year, REGIDESO to PA 4.06(b) ConyLied. As per our review review the adequacy of its tariffs to achieve the of Regideso accounts in June contribution to capital expenditures required 1992. under 4.06(a) and furnish the review to IDA. REGIDESO not to incur debt unless its internal PA 4.07 Comnlied. As per our review cash generation is equal to or exceeds 1.5 times of Rejideso accounts in June the estimated maximum debt service requirement for 1992. any succeeding fiscal year. REGIDESO to Limit its receivables for electricity PA 4.08 Non-comoliance. The services except those from Goverrment and Goverrnent was abLe to reduce municipalities: (a) to 4 months' billings, by the its receivables to a level of end of 1985, (b) for clients billed each month, to 6 month billings through 3 months' billings, and those billed every two 1986, but made payments months, to 4 months billings at the end of 1986 irregularly thereafter. and thereafter. Receivables from Goverrnment and municipalities to be reduced to 6 months' billings by the end of 1986 and 4 months' billings by the end of 1987 and thereafter.  -21- 8. Use of Bank Resources FY82 FY83 FY84 FY85 FY86 FY87 FY88 FY89 FY90 FY91 FY92 Preappraisal NA NA 5.9 Appraisal 4.6 56.3 Negotiations 3.0 Supervision 0.1 9.0 6.6 14.2 13.3 8.3 2.1 Project Conpletion Report Total -- tI 59.4 9.0 6.6 W: WI 2 9. Mission Data Stages of Month/ No. of Days in Specialization Performance Types of Project CycLe Year Persons FieLd Represented/a Rating Status/b Problems/c Through Aowraisat Identification 10/82 NA NA NA NA NA Preparation 7/83 2 5 FA,EC NA NA Pre-Appraisal 10/83 2 3 FA, CON NA NA Appraisal 6-7/84 5 17 PE,FA,CON NA NA Post-Appraisal 11/84 2 4 PE NA NA Supervision Supervision 1 7/85 2 3 PE,FA 1 F,h Supervision 2 7/86 3 3 PE,FA,EC 1 F,M Supervision 3 8/87 1 2 PE 2 F,M,T Supervision 4 10/87 1 11 FA 2 F,M,T Supervision 5 2/88 1 7 PE 2 F,M,T Supervision 6 3/88 1 5 FA 2 F,N Supervision 7 5/88 1 10 EC 2 F,M,T Supervision 8 11/88 1 8 PE 2 F,M,T Supervision 9 4-5/89 1 16 EC 2 F,M,T Supervision 10 10/89 2 8 EC,FA 2 F,M,T Supervision 11 2-3/90 3 21 EC,FA,PE 2 F,M,T Supervision 11 4/90 1 2 HE NA T Supervision 12 6/91 1 NA EC,FA,HE 2 d/ F,M,T /a PE = Power Engineer; FA = Financial Analyst; EC * Economist; HE = HousehoLd Energy Specialist; CON Consultant /b 1 Minor or no problems; 2 = Moderate problems; 32 Major problems /c F = Financial problems; T * Technical problems; M Managerial problems /_ as reported in the Form 590 from the supervision missions.  - 22 - 4N NEX 1 *Paze 1 of 6 REGIE DE DISTRIBUTION D'EAU ET D'ELECTRICITE AUDITED BALANCE SHEET 1985, 1986, 1987, 1988, 1989, 1990 (BuF MILLIONS) 1985 1986 1987 1988 1989 1990 ASSETS Fixed Assets Electricity 5408 8085 8532 11325 12115 12299 Water 1075 2088 3207 3670 3813 3987 Cowmmn 499 4919 6460 6830 7443 8511 Cumulative DepreciatIon -1332 -1747 -2413 -3203 -4145 -5234 Net Fixed Assets 5650 13345 15786 18622 19226 19563 Work in Progress 7251 2000 1811 528 314 3977 Other L/T Assets 242 287 304 315 905 991 Short-Term Assets Receivables 569 675 1061 1533 1355 1663 Inventory 308 380 458 605 972 1009 Cash and Banks 311 480 584 839 1448 1629 Other 70 44 2511 5050 8340 5084 Total S/T Assets 1258 1579 4614 8027 12115 9385 TOTAL ASSETS 14401 17211 22515 27492 32560 33916 LIABILITIES Equity Capital 303 4940 4940 4982 6623 7407 Reserves 905 0 0 0 0 932 Retained Earnings -969 -111 -2872 -6233 -9536 -7240 Total Equity 239 4829 2068 -1251 -2913 1099 Equipment Subsidies 1236 0 193 384 866 1542 Provisions 85 99 2532 5039 7868 4685 Other L/T Liabilities 0 0 2513 5027 7853 4679 Long-Term Debt 12112 11069 13823 15672 16480 17878 Short Term Liabilities Accounts Payable 37 173 159 505 365 1035 State 586 887 1152 2030 1717 2806 Other S/T Assets 106 153 75 86 324 192 Total S/T Liabilities 729 1213 1386 2621 2406 4033 TOTAL LIABILITIES 14401 1 7210 22515 27492 32560 33916  - 23 - ANNEX 1 Page 2 of 6 REGIE DE DISTRIBUTION D'EAU ET D'ELECTRICITE AUDITED OPERATING ACCOUNT (1985-1990) (BuF MILLIONS) 1985 1986 1987 1988 1989 1990 REVENUES Electric & Water 1077 1287 1542 1590 1812 2250 Revenues Government Subsidy 0 9 1 0 141 247 Internal Works 110 177 210 122 410 237 Other 129 355 146 271 546 3755 Total Revenue 1316 1828 1899 1983 2909 6489 EXPENSES SaLaries 309 372 433 467 507 597 Consumed Goods & 442 530 378 387 596 910 Services Taxes 10 16 5 6 22 27 Other Expenses 55 149 49 310 89 172 Depreciation 342 415 665 791 963 1095 TotaL Expenses 1158 1482 1530 1961 2177 2801 Operating Income 158 346 369 22 732 3688 Interest and 380 425 658 861 937 895 Commissions Provisions 3 19 27 2506 3075 478 Net Income -225 -98 -316 -3345 -3280 2315 Profit Tax 11 13 15 16 19 23 Income after Taxes -236 -111 -331 -3361 -3299 2292  PROJECT COMPLETION REPORT BURUNDI TRANSMISSION AND DISTRIBUTION PROJECT (CREDIT 1593-BU) RECIDESO Forecast Income Stateeents 3984 - 3993 for Electricity Operation. 1984 1985 1986 1987 1988 1989 1990 1991 1992 soles (Gih) - 67.1 74.6 82.8 92.1 104.3 116*2 128.9 141.9 156.3 Electricity tariff -average - BuF/kVb 7.8 9.3 12.4 15.2 17.5 20.1 21.8 25.0 28.5 RVENUES lRvenoe from soles 523.4 679.9 1026.7 1399.9 1825.2 2335.6 2810.0 3547.5 4454.6 H ters, connections. works 127.0 185.2 341.9 387.4 438.9 671.3 760.6 861.8 1031.6 TOTAL REVENUE 650.4 833.1 1368.6 1787.3 2264.1 3006.9 3570.6 4409.3 5486.2 EXPENSss Salartes 126.6 132.9 146.2 157.9 170.5 184.1 198.8 214.7 231.9 Purchas of electricity - 8.1 24.0 70.2 78.4 83.5 87.9 309.9 632.5 Hat rial'd 298.9 371.8 438.8 509.1 595.9 691.9 801.6 925.2 1067.9 Other expenses 21.2 25.1 28.0 30.9 34.0 37.4 41.1 45.2 49.7 Depreciation 138.0 170.3 323.3 478.9 597.5 724.6 794.0 938.3 1085.2 TOTAL EXPENSES .7 722.2 959.5 1247.0 1476.3 1721.5 1923.4 2433.3 3067.: OPERATINC INCOME 65.7 174.9 409.1 540.3 787.8 1285.4 1647.2 1976.0 2419.0 Interest Charges 162.3 228.5 267.4 409.3 409.5 613.8 367.5 341.8 449.1 NET INCOME (96.6) (53.6) 141.7 131.0 378.3 671.6 1279.7 1634.2 1969.3 PATE Of RETURN X 1.7 3.8 4.5 4.' 4.8 6.6 8.0 8.3 8.9 OPERATING RATIO 2 90 87 70 70 65 57 54 55 56 REVENUEICROsS PLANT 2 14.2 14.5 9.8 11.6 10.6 13.0 14.0 13.8 35.6 DZPRECIATION/A"ERACE CROSS PLANT 3.3 3.3 3.3 3.3 3.3 3.3 3.3 3.3 3.3 0 Itd ch  PROJECT COMPLETION REPORT BURUNDI TRANSMISSIONt AND DISTRIBUTION PROJECT (CREDIT 1593-BU) RECTDESO Forecast funds Flow Stetement. 19Sf - 1993 for tlectricty 0Oprations Fert I - Source of Fund. uy Mtillton 1994 1985 1986 1987 1988 1989 1990 1991 1992 1915/89 SOUItCQS Of FUND Cenereted from tevstltone Operatrng Income 65.7 174.9 409.1 540., 787.6 1285.4 1647.2 1976.0 2419.0 3197.5 Iepreciatton 138.0 170.3 323.3 476.9 597.5 724.6 794.0 938.3 1085.2 2294.6 TOTAL 203.7 345.2 732.4 1019.2 1385.3 2010.0 2441.2 2914.3 3504.2 S492.1 ietuburssennt of Long-Term Investment 23.5 23.5 21.5 23.5 23.5 23.5 23.5 23.5 23.5 117.5 Consumers' Contributions 2.2 2.6 2.3 2.6 2.7 2.8 3.0 3.2 3.3 13.0 Covernuent Funding 250.0 407.6 668.2 -10.1 -143.1 -42^. -499.0 - - 499.0 fWV Suju bure IfV Cttegs Kf Ntuneutnya rfWV Haying* IfV KInado KtfV lwgura 90.9 131.6 :131;6 SAD Iwegura 440.0 452.0 80.0 532.0 Kuwait Fund Iwegure 420.0 415.4 80.0 515.4 Catese C-ntrale Lwegure 428.3 527.0 488.4 105.2 111.8 1232.4 FTED Rwegure 460.7 591.2 230.4 32.0 32.7 33.3 34.0 34.7 35.4 919.6 IDA Proposed Project 62.0 589.6 579.6 197.4 216.0 1644.6 Coflnancters Proposed Project 41.S 289.4 465.1 155.1 48.9 1000.0 Other 141.0 720.0 1058.0 780.0 724.0 861.0 TOTAL 1839.9 2240.7 1757.8 1181.9 638.0 1018.2 1092.0 814.7 759.4 68136.6 TOTAL SOutRCES 239.3 3019.6 3184.2 2217.1 1906.2 2631.2 3060.7 3755.7 4290.4 129S8.3 I-. 0%  PROJECT COMPLETION REPORT BURUNDI TRANSMISSION AND DISTRIBUTION PROJECT (CREDIT 1593-BU) RECIDCSO forecast Funds Flov Statements 1984 - 1998 for Electricity Operations Part 2 - Applic.l'.n of Fund. SuP . } 1984 1985 1986 1987 MO88 1989 1990 1991 1992 1985/89 APPLICATION OF FUIDS Conscructior gxpendttures Proposed Project 265.3 1069.6 1310.0 i61.0 2909.9 Rwvgura Hydrofacilitles 1133.8 8 1045.3 968.2 281S.5 Kirunds Hydrofectittste 57.4 11.3 11.3 Hupinga lydrofactiities 33.3 Buract-Rumongs Hydrotecilities 9.2 119.6 250.9 18.7 71.1 460.3 Rumonge-Nyones Lee. Thermal t 67.7 5.0 5.0 Rvegura-Iujumburs line 110 kV 641.7 211.7 77.5 289.2 Rwegura-"gast Ine 30 kV 70.0 61.0 26.0 67.0 8uji-ly-Totr-NU-Kih line 30 tV 162.0 70.0 70.0 Nymmi-ururrl-luo"g4 1. 30 kV 78.9 101.4 180.3 Muranmla-Ters-8uksye 1. 30 kV 20.0 23.9 23.9 Kerangara-Vurund4 1. 30 kV 471.3 38.4 35.4 Kayonat-"uyinge 1. 10 kV 25.1 _ SuboneeC-tegs 1. 110 kV 180.0 180.0 180.0 360.0 Other 100.0 00.0 1200.0 1500.0 1500.0 1700.0 1050.0 InterGet during construction 39.0 82.7 164.8 132.1 198.4 40.1 111.2 .184.8 109.9 618.1 TOTAL 2306.5 2813,1 2658.4 15.0.8 1214.5 1470.1 1791 .2 161 .8 I t Pugsti It Hydrotecltittts Contribution to SINELAC 50.0 50.0 150.0 100.0 59.5 359.5* Debt Service Repayment 6.9 20.4 20.4 122.3 394.6 478.8 549.7 549.7 564.6 Interest 167.3 228.5 261.4 409.3 409.5 613.8 367.5 341.8 449.7 1928.5 162.3 235.4 287.8 429.7 531.6 1008.4 646.3 891.5 999.4 2493.1 Increase In Vorbtng Capital -199.5 -78.9 88.0 M2A.6 100.4 152.7 423.2 1179.4 1481.1 388.8 TOTAL APPLICATIONS 2319.3 3019.6 3114.2 221i.1 1906.2 2631.2 306007 3755.7 4290.4 12958.1 Delt Serveo *oato 1.3 1.5 2.5 2.4 2.6 2.0 2.9 2.5 2.4 2 Contribution to Construction Cxendtturse 1.8 3.9 16.7 31.8 70.0 36.? 89.0 120.0 131.0 LaI,  CICIBESO Ferceec melsec. Sh..t 954 - 9943 for *1E. 1 trlctc OrtI.ns Bu rilion 1964 196$ 16 19 loll 196 1989 990 1991 1992 Aoete. Flied Assets Plant in OperatIon 4581.0 57U4.1 11939.2 15193.2 21279.9 23119.) 25485.4 31845.6 35162.5 Laos I. .la. *14.6 636.6 102t.9 1605.5 2355.5 126S.1 4342.4 5627.1 7161.6 Not Ptant 49 .32 5105. 12910.3 137t1 192N 4 It33 . 1141.0 26211.1 20M.4 U.xk-tn-?Pe~r-tr 4470.0 6760.5 1971.2 3498.9 327.2 1197.1 3048.5 169.9 1)40.4 Long-Tsre Investmwnts 217.5 214.0 190.5 167.0 143.5 120.0 96.5 71.0 49.5 Current Assets Cash/lenks 24.2 54.5 9.9 11.2 9.6 35.2 107.6 1155.0 1268.5 Accounts IeoleobIe 379.4 312.9 344.1 446.6 566.0 751.0 934.0 1159.0 1500.0 Inventorfes 240.1 211.6 2172.) 31S.0 367.4 425.4 491.6 566.1 652.0 Other Current Assets 11.9 14.1 16.3 16.6 60.0 20.4 65.1 61.4 91.1 TOTAL Trt- 6173.1 7102.6 671.6 10212. 1212.0 1719.2 2966.3 4531 6 TOTAL ASSETS 9569.3 12751.1 15179.6 18325.3 20416.1 22982.5 26007.2 29629.5 33922.4 Capitol end Liabilities %gutty Capital 257.1 257.1 251.1 257.1 257.1 257.1 257.1 257.1 257.1 Ketalned Earnlngs 291.1 236.1 319.8 510.6 689.1 1560.1 2640.4 4414.6 6441.9 Crant. 2414.6 26A2.2 3550.4 3540.) 3l91.0 2S13.1 2414.1 2414.1 2414.6 t.&v.lStlan Beservo 1149.6 1666.6:4 I2222 0 III0., I1l..) 6262.2 1926.0 9576.2 11604.6 TOTAL UO S 77if 9271;S 1115231 1496.2 10712.6 2 11040 Lonl-term Debt 4915.7 714S.5 8666.9 10045.4 13564.1 11187.7 11800.9 12065.9 1I").' Caneueer. ContrIbtion 47.0 4.S6 51,9 54.5 57.2 60.0 61.0 64.2 69.i Current Labililties Accounts toyable 266.8 297.7 211.4 270.0 314.9 364.6 421.3 46S.2 533.6 Other Current Liabilities 186.0 192.3 19.1 204.1 n10.2 216.s 223. 229.6 238.3 TOTAL 453.6 490.0 431.5 414.1 523.9 S81.1 -. 1 14.r 7`T Total Cap. 6 LiabilIclte 95)9.1 12153.1 15779.0 10125.1 2041C.1 22962.5 26007.2 29U29.5 33922.4 Debt/Debt and EquIty I 54.1 36.S 50.1 56.5 55,5 52.2 46.1 43.6 19.0 Curr*et Rail* 1.6 1.4 1.6 1.0 3.6 1.8 1.2 S.S 7.0 .vs.1hblem -i nths 7 4.5 3 3 3 5 3 1 Arwoel revaluation t 11.4 12.9 10.. 9.5 8./ 8.0 8.0 6.0 OQ 0 I-.