Somalia - Power Rehabilitation and Energy Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. 6834-SO STAFF APPRAISAL REPORT SOMALIA POWER REHABILITATION AND ENERGY PROJECT September 29, 1987 Energy and Industry Operations Division Africa Country Department II This document has a restricted distribution and may be used by recipients only in the perfonnance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency Unit = Somali Shilling (SoSh) US$1.0 - SoSh 120 (as of January 1987) WEIGHTS AND MEASURES 1 kilometer (km) t 0.621 miles 1 square kilometer (km2) = 0.386 square miles 1 kilovolt (kV) 1,000 volts 1 megawatt (MW) = 1,000 kilowatts 1 megavolt ampere (IVA) 1,000 kilovolt amperes 1 gigawatt hour (GWh) 1 million kilowatt hours I ton of oil equivalent (toe) 10,500,000 kilocalories bbl = barrel MJ = megajoule cm = centimeter Mm3 = million cubic meters GW gigawatt m3 = cubic meter ha = hectare MWh = megawatt hour ktoe = kilotonnes of oil equiv. od = oven dry kW, kWh = kilowatt, kilowatt hour sv = solid volume LPG = liquified petroleum gas t = tonne M = million TCF = trillion cubic feet mcwb = moisture content tpa, tpy = tonnes per annum, per year wet basis twe = tonnes of wood equivalent GLOSSARY OF ABBREVIATIONS ADB African Development Bank DANIDA Danish International Development Agency ECU European Currency Unit EIB European Investment Bank ENEE Somalia National Electricity Corporation ENEL Italian Electric Utility EPD Energy Planning Department EPU Energy Planning Unit FINNIDA Finnish International Development Agency FUA Fund Unit of Account GOS Government of Somalia IRAQSOMA National Refinery ISKIASH National Cooperative MNP Ministry of National Planning MJVD Ministry of Juba Valley Development NPA National Petroleum Agency NRA National Range Agency NWP National Woodatove Project ODA Overseas Development Administration RIP Reference Investment Program USAID United States Agency for International Development UNDP United Nations Development Program GOVERNMENT OF SOMALIA FISCAL YEAR = CALENDAR YEAR  SOMALIA FOR OFFICIL USE ONLY POWER REHABILITATION AND ENERGY PROJECT Credit and Project Summary Borrower: Government of Somalia (GOS) Amount: SDR 9.7 million (US$ 12.5 million equivalent) Beneficiaries: Ihe Somalia National Electric Corporation (ENEE), the Ministrv of National Planning (MNP), the National Woodstove Project (NWP). Terms: 40 years 1/ Project The project's principal objective is to improve the Objectives: efficiency and reliability of power supply and distribution and to meet some of the unserved demand in Mogadishu, Somalia's main economi. area. To sustain physical rehabilitation lmprovementb, it woulid also assist ENEE in strengthening its performance in key technical, financial, and managerial areas. The project would further help the GOS to develop its capabilities for sound energy planning and policy formulation, with particular attention being given to identifying least cost supply and distribution options for petroleum products. Finally the project would promote conser.ation of woodfuels thro-igh dissemination of improved cooking stoves for higher cooking efficiency. Project The proposed project would (i) rehabilitate, replace, and Description: extend ENEE's generating, transmission, and distribution facilities in Mogadishu; (ii) provide comprehensive advisory services, operational support including line managers, and training to ENEE for three years in a1. key corporate areas; (iii) provide technical assistance and logistical back-up resources to the MNP to strengthen energy planning, carry out subsector investment analyses and least cost petroleum procurement and distribution study, and develop 'oujsehold energy supply and demand management policies, anid (iv) provide technical assistance and logistical back-up resources to the NWP to promote cooking efficiency improvements. Project Risks: The main risk would be delays in implementation and non-sustainability of improvements. This risk will be minimized by the project's operational and management support and systems improvement component and regular monitoring of ENEE's financial performance. Map: IBRD 20526 1/ Onlending terms are 7.76% repayment period of 15 years after grace period of 5 years. 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.  (ii) Project Cost: Foreign Local Total - (US$ million)- Generation Rehabilitation 11.73 0.47 12.00 Expansion 25.11 3.35 28.46 Transmist.on and Distribution Rehabilitation 9.55 0.95 10.50 E;tpansion 15.07 1.40 16.47 General Plant 4.12 0.26 4.38 Project Management, Technical Assistance and Training 5.82 1.22 7.04 Energy Sector Planning and Studies 0.70 0.10 0.80 Household Energy Demand Management 0.08 0.24 0.33 ENEE System Developtment Study 0.28 0.09 0.37 Project Preparatiott Facility 1.50 - 1.50 Base Costs 73.76 8.08 81.85 Physical Contingencies 7.23 0.81 8.03 Price Contingencies 3.69 0.46 4.15 Total Project Costs 84.67 9.35 94.02 Note: The project would be exempt from duties and taxes. Financing Plan: Foreign Local Total