Indonesia - Java-Bali Power Sector Restructuring and Strengthening Project : P063913 - Implementation Status Results Report : Sequence 15

The World Bank Report No: ISR812 Implementation Status & Results Indonesia Public Disclosure Copy Java-Bali Power Sector Restructuring and Strengthening Project (P063913) Operation Name: Java-Bali Power Sector Restructuring and Strengthening Project Stage: Implementation Seq.No: 15 Status: ARCHIVED Last Modified Date: 28-Mar-2011 Project (P063913) Country: Indonesia Approval FY: 2003 Product Line: IBRD/IDA Region: EAST ASIA AND PACIFIC Lending Instrument: Specific Investment Loan Implementing Agency(ies): Perusahaan Listrik Negara (Persero), PGN Key Dates Board Approval Date 26-Jun-2003 Original Closing Date 31-Dec-2008 Planned Mid Term Review Date Last Archived ISR Date 27-Feb-2010 Effectiveness Date 07-Jul-2004 Revised Closing Date 31-Dec-2013 Actual Mid Term Review Date Project Development Objectives Project Development Objective (from Project Appraisal Document) The objective of the project is to improve the reliability and efficiency of the power system in Java-Bali, and strengthen PLN and PGN management capabilities. Has the Project Development Objective been changed since Board Approval of the Project? Yes No Component(s) Component Name Component Cost 500KV AND 150KV TRANSMISSION SYSTEM 107.30 PLN'S ERP SYSTEM 24.54 TA TO PLN 1.75 TA TO PGN 6.00 Public Disclosure Copy Overall Ratings Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Moderately Satisfactory Overall Risk Rating Implementation Status Overview The project has made good progress towards achieving its development objectives. Most of the investments to improve the reliability and efficiency of the Java-Bali transmission network are completed, while those that are pending are expected to be completed by end 2011, provided PLN is able to obtain clearances to finish construction for the outstanding transmission lines. The Enterprise Resource Planning (ERP) system deployed under the project has substantially improved the management of finances, materials, and human Page 1 of 7  The World Bank Report No: ISR812 resources of the Indonesian state power utility PLN's business units in Java and Bali and additional resources have been approved to expand the system to Sumatra and Sulawesi. Technical studies have provided valuable inputs for improving energy markets and institutions, including a feasibility study for the proposed Upper Cisokan Pumped Storage Public Disclosure Copy hydropower plant, which would increase peak generating capacity in Java. Results Project Development Objective Indicators Indicator Baseline Current End Target Indicator Name Value Value Value Natural Gas Pricing and PGN's restructuring and partial privatization Natural Gas Pricing and PGN's Natural Gas Pricing and PGN's Natural Gas Pricing and PGN's studies completed restructuring and partial restructuring and partial restructuring and partial privatization have not be en privatization studies completed privatization studies com pleted undertaken Date Date Type Unit of Measure Date 19-Nov-2008 31-Dec-2009 Custom Indicator Text 04-Jun-2003 Comment Comment Comment Public Disclosure Copy Page 2 of 7  The World Bank Report No: ISR812 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Increased dispatch capability of generation units in East Java Around 2000 MW of dispatch Component under implementation Additional 2000 MW of dispatch capability in 2002 Date capability by project closing date Date 29-Oct-2010 Date Type Unit of Measure 04-Jun-2003 Comment 31-Dec-2011 Custom Indicator Text Comment Project substations in new Kediri Comment and Ungaran and a 150 kV line completed under the project has increased the dispatch capability of generation units in east Java. However, the main benefit of the increased dispatch from the Grati steam plant to South Surabaya S/S (and corresponding reduction of the oil fired generation at Gresik) has not materialized yet due to the delay in the construction of the transmission line from Grati to South Surabaya (funded under JICA) although the substation at South Surabaya has been completed (barring some items borrowed for other sites as they are unused at present in South Surabaya) Public Disclosure Copy Page 3 of 7  The World Bank Report No: ISR812 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Reduced substation loadings at key Java-Bali 500kV and 150kV The majority of substations have Component under implementation The majority of substations have substations loadings at 80% of the capacity or loadings at 50%-60% of the Date more in 2002 capacity 29-Oct-2010 Date Date Type Unit of Measure Comment 04-Jun-2003 31-Dec-2011 Custom Indicator Text Substation loadings considerably Comment reduced by commissioning of four Comment 500/150 kV inter-bus transformers and a majority of the twenty 150/ MV transformers. One 500/150 kV ITB transformer was used to meet a system emergency caused by the failure of a transformer at NewCilegon thus averting major system outages in this area. Indicator Baseline Current End Target Indicator Name Value Value Value Improved voltages at key 150kV substations in southeastern Java The majority of key 150kV Component under implementation The majority of key 150kV substations voltages are operating Date substations voltages are operating at 90% of capacity, or at 135kV in at 100% ofcapacity 2002 29-Oct-2010 Date Type Unit of Measure Date Comment 31-Dec-2011 Custom Indicator Text 04-Jun-2003 System voltages in project areas have improved. More precise Comment Comment quantitative information is being collected. Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value PLN issues reconciled financial statements for the Java-Bali System 90 days when performed manually ERP deployment to entire Java- 45 days when ERP fully deployed within 45 days upon the completion of the fiscal year Bali System is complete. in Java-Bali System Date Reconciled financial statements Date 19-Jun-2008 produced in less than 45 days. Type Unit of Measure Comment 31-Dec-2009 Date Custom Indicator Text Comment 16-Oct-2009 Comment Intermediate Results Indicators Page 4 of 7  The World Bank Report No: ISR812 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value Implementation milestones and the commissioning dates of 500kV component not begun Substation under construction Completed by project closing date substation expansions Date Date Date 04-Jun-2003 29-Oct-2010 31-Dec-2011 Type Unit of Measure Comment Comment Comment Custom Indicator Text The four west Java and Jakarta substations are now completed as required (except for some repairs needed for one transformer purchased for Balaraja) and the South Surabaya substation is virtually ready although the transmission line for its energization (funded under a JICA project) has not been completed. Indicator Baseline Current End Target Indicator Name Value Value Value Implementation milestones and the commissioning dates of 150kV Upgrade not begun Substations and line uprating Completed by project closing date substation expansions and uprated lines underway. Date Date 04-Jun-2003 Date 31-Dec-2011 Type Unit of Measure Comment 29-Oct-2010 Comment Custom Indicator Text Comment Most of the substation expansions have been accomplished and the 150 kV line in East Java has been completed. However, the upratingof lines in Central and Public Disclosure Copy West Java are delayed due to land acquisition and contract problems. Contract problems relate to the demandfor price escalation requests by contractors caused due to delays in processing the contracts by PLN. Page 5 of 7  The World Bank Report No: ISR812 Indicator Baseline Current End Target Public Disclosure Copy Indicator Name Value Value Value ERP system deployed to entire Java-Bali System after completing PLN does not employ ERP system Rollout completed and "go-live" ERP succesfully completed initial pilot roll-out targets met. Date Date 04-Jun-2003 Date 31-Dec-2009 Type Unit of Measure Comment 19-Nov-2008 Comment Custom Indicator Text Comment Indicator Baseline Current End Target Indicator Name Value Value Value Progress report on PLN TA - Supplemental Study on Upper Cisokan TA has not begun Supplemental Study on Upper TA completed Pump Storage Project Cisokan completed, leading to Date Date separate investment preparation 04-Jun-2003 31-Dec-2009 Date Type Unit of Measure Comment Comment 01-Jun-2007 Custom Indicator Text Comment Indicator Baseline Current End Target Indicator Name Value Value Value Progress on TA studies for PGN TA studies not begun TA studies completed in FY06-07 TA studies completed by project Date Date closing date 04-Jun-2003 01-Nov-2006 Date Type Unit of Measure Comment Comment 31-Dec-2008 Custom Indicator Text PGN has also completed training Comment activities and have requested that the remaining unused loan balance Public Disclosure Copy be cancelled. Data on Financial Performance (as of 07-Jan-2011) Financial Agreement(s) Key Dates Project Loan No. Status Approval Date Signing Date Effectiveness Date Closing Date P063913 IBRD-47120 Effective 26-Jun-2003 01-Oct-2003 07-Jul-2004 31-Dec-2011 P063913 IBRD-77580 Effective 06-Jul-2009 06-Jul-2009 06-Jul-2009 31-Dec-2011 P063913 IBRD-79050 Not Effective 08-Jun-2010 23-Jun-2010 31-Dec-2013 Disbursements (in Millions) Page 6 of 7  The World Bank Report No: ISR812 Project Loan No. Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P063913 IBRD-47120 Effective USD 141.00 141.00 0.00 8.29 0.00 6.00 Public Disclosure Copy P063913 IBRD-77580 Effective USD 132.72 129.14 3.57 117.47 11.67 91.00 P063913 IBRD-79050 Not Effective USD 30.00 30.00 0.00 0.00 30.00 0.00 Disbursement Graph Key Decisions Regarding Implementation The next mission is planned for September - October 2011. Public Disclosure Copy Restructuring History Board Approved on 19-Jun-2008, Level two Approved on 22-Dec-2009, Level two Approved on 15-Jul-2010 Related Projects P116853-Additional Financing for ERP Expansion beyond Java-Bali Project, P116855-The Extended Deployment of an Enterprise Resource Planning System Page 7 of 7