Uganda - Second Power Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. 15194 PROJECT COMPLETION REPORT UGANDA SECOND POWER PROJECT (CREDIT 1560-UG) DECEMBER 26, 1995 Energy and Infrastructure Operations Division Eastern Africa 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 Equivalents Currency Unit = Ugandan Shilling (USh) US$ to USh Appraisal year (1984): 5.2 Actual (yearly average) 1985 6.7 1986 14.0 1987 42.8 1988 106.1 1989 223.1 1990 428.9 1991 734.0 1992 1,133.8 1993 1,195.0 Currency Unit = SDR USh to SDR (end of year) 1985 15.4 1987 85.1 1989 486.2 1991 1,308.8 1993 1,552.3 USS to SDR (yearly average) 1985 1.0984 1987 1.2931 1989 1.2818 1991 1.3682 1993 1.3963 Abbreviations AfJDB African Development Bank CDC Commonwealth Development Corporation CIDA Canadian International Develop ment Agency ESMAP Joint UNDP/World Bank Energy Sector Management Assistance Program GSMD Geological Survey and Mines Department, Ministry of Lands, Mineral and Water Resources GWh Giga Watt hour (million kWh) IBRD International Bank for Reconstruction and Development ICB International Competitive Bidding IDA International Development Association IRR Internal Rate of Return JICA Japanese International Cooperation Agency kW Kilo Watt kWh Kilo Watt hour LRMC Long Run Marginal Cost MPPT Ministry of Power, Posts and Telecommunications MNR Ministry of Natural Resources MW Mega Watt (thousand kW) NDF Nordic Development Fund NORAD Norwegian Agency for Development Cooperation ODA Overseas Development Administration (UK) PCR Project Completion Report PLC Power Line Carrier SCADA System Control and Data Acquisition SDR Special Drawing Rights UEB Uganda Electricity Board Fiscal Year January 1- December 31  FOR OFFICIAL USE ONLY THE WORLD BANK Washington, D.C. 20433 U.S.A. Office of Director-General Operations Evaluation December 26, 1995 MEMORANDUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT SUBJECT: Project Completion Report on Uganda Second Power Project (Credit 1560-UG) Attached is the Project Completion Report (PCR) on the UJganda: Second Power project (Credit 1560-UG, approved in FY85), prepared by the Africa Regional Office. The Borrower provided Part 11. Comments by the co-financiers were considered in the PCR. The project's main objective was to assist Uganda's economic recovery initiated in the early 1980s by improving electricity supply from the Uganda Electricity Board (UEB). Sector objectives were to rehabilitate UEB's power system and strengthen its operational capability and the government's energy planning capacity. The project rehabilitated part of the Owen Falls hydroelectric plant and refurbished the transmission and distribution network. In Kampala, the rehabilitation works went beyond the original project design. It also helped the Energy Department plan for a forest plantation inventory (later done by the Ministry of Agriculture) and conduct a household energy survey. Studies on tariffs, billing, generation and distribution planning were carried out and part of their recommendationis implemented. UEB was reorganized, its staff trained, and tariffs increased. But poor collection of bills, overstaffing and low productivity still mar its performance. The project cost is estimated at US$I 13.4 million, including rehabilitation works to be completed by 1997 with financing from the Overseas Development Administration. IDA financed US$40.2 million and succeeded in mobilizing US$68.3 million from four co-financiers and suppliers credits. IDA's performance was satisfactory: frequent supervision missions, acceptance ofjustified clhaiges to project scope, and reallocation of credit funds helped project execution. Borrower's perfornance was marginally satisfactory, best towards the end of the project, when UEB implemented most of the physical components-not as good all along in the areas of power sales and financial management. The project outcome is rated as satisfactory mainly because of its physical achievements. Its sustainability is rated as likely because UEB already initiated measures to commercialize its operations under the IDA Third Power project. Its institutional development is rated as moderate. The PCR presents a satisfactory account of project implementation and results. No audit is planned. Attachment 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  FOR OFFICIAL USE ONLY I Contents Preface.3 Evaluation Summary.5 PART 1: PROJECT EVALUATION FROM THE BANK'S PERSPECTIVE.9 Project Background.9 Project Design and Implementation.11 Project Objectives and Description.13 Project Implementation.15 Disbursements.19 Procurement.21 Project Results.23 Project Sustainability.27 Bank and Borrower Performance.29 Project Relationship.31 Project Reporting.33 Lessons Learned.35 PART II: PROJECT EVALUATION FROM TIlE BORROWER'S PERSPECTIVE.39 Annex 1: Other UEB contracts Under Second Power Project.49 Annex 2: Uganda Electricity Board Units Generated.51 Annex 3 Project Cost at Completion as of 30 June 1994.53 PART III: STATISTICAL AND OTHER PROJECT INFORMATION.59 Table 1: Related Bank Group Loans and Credits..61 Table 2: Project Timetable..62 Table 3: Credit Disbursements..63 Table 4: Project Implementation..64 4.1 Contract Completion Dates.64 4.2 Studies.65 4.3 Comparison of UEB's Selected Indicators.66 Table 5: Project Costs and Financing..67 5.1 Project Costs: Comparison of SAR Estimates and Actual Costs.67 5.2 Project Financing.67 5.3 IDA Disbursements.68 Table 6: Economic Impact..69 Table 7: Status of Compliance with Major Covenants..70 Table 8: Use of Bank Resources.72 8.1 Bank Resources: Staff Inputs.72 8.2 Bank Resources: Missions.73 Table 9: UEB's Balance Sheet..75 Table 10: UEB's Income Statement..76 Table 11: UEB's Funds Flow Statements..77 document has a restricted distribution and may be used by recipients only in the performance of their I official duties. Its contents may not otherwise be disclosed wiihout World Bank authorization. I   3 Preface This is the Project Completion Report for the Second Power Project in Uganda, for which Credit No. 1560-UG in the amount of SDR 29.5 million (US$ 40.2 million equivalent) was approved on March 19, 1985 and made effective on June 26, 1986. The Credit was closed on December 31, 1993, compared with the original closing date of June 30, 1990. The Credit was fully disbursed and the last disbursement took place on April 20, 1994. Co-financing for the project was provided in the form of a CDC loan to UEB of Pound Sterling 9.6 million, and an ODA grant of Pound Sterling 9.34 million. ODA later increased the grant to about Pound Sterling 30 million to cover additional rehabilitation costs at the Owen Falls hydropower station. Parts I and III of the PCR were prepared by the Energy and Infrastructure Operations Division of the Eastern Africa Department. Part II was prepared by the Borrower (the Uganda Electricity Board and the Ministry of Natural Resources). Preparation of the PCR was begun during the Bank's final supervision/completion mission on June 21-28, 1994. It is based, inter alia, on the Staff Appraisal Report, the Development Credit and Project Agreements, supervision reports, correspondence between the Bank and the Borrower, and internal Bank memoranda. The Borrower submitted its first draft of Part II in June, 1994, and the final report in November 1994. Parts I and III were sent to the Borrower and the cofinanciers for comments on March 2, 1995. Comments were received from the Borrower on March 21,1995, and from ODA on Mach 16, 1995. CDC communicated its response on March 17, 1995.   5 Evaluation Summary Introduction The Second Power Project was the Bank's first operation in Uganda's energy sector in more than twenty years. The operation was preceded by an energy sector review carried out by the Joint UNDP/World Bank Energy Sector Management Assistance Programme (ESMAP). It provided much of the underpinnings for the project, while detailed project design was based on an engineering study by independent consultants. At the time of appraisal, the political situation in Uganda was unstable, and power sector facilities were in a very poor condition owing to neglected maintenance during the preceding years of unrest. The Second Power Project was designed to support the Government's recovery program, which had as its basic objective the rehabilitation of the productive sectors and the improvement of existing productive capacities. Project Objectives and Description The primary objective of the project was to prevent the development of a bottleneck in power supplies that would hinder economic recovery in the medium term, through the upgrade and rehabilitation of existing generation, transmission and distribution facilities. The project also aimed at strengthening UEB's operational capability, and the energy sector planning capability of the ministry in charge of energy (currently the Ministry of Natural Resources). The project included the following three main components: Part A: Rehabilitation and uprating of ten turbo generator units and their associated gates, structural repairs to the power house, dam and dam gates at the Owen Falls hydro power station; Part B: Transmission and distribution rehabilitation, provision of ancillary items and studies; and Part C: Technical assistance to the Ministry's Energy Department Project objectives were ambitious and addressed the priority needs of the energy sector. However, as a result of the escalation of project costs and new requirements in the transmission and distribution networks in and around Uganda's capital city, Kampala, the scope of Part B was later modified to focus on the rehabilitation of the Kampala networks. Implementation Experience Implementation. Project implementation was at first very slow, but improved towards the end of the project. It took eight and a half years from Credit signing to Credit closure compared to the SAR estimate of five years. The major delays were a result of the following three factors: First, the continued unstable security situation at the outset of the project focused the attention of the implementation agencies more on ensuring the day-to-day operation of the power system than on project implementation. Second, the need to modify the scope of Part B as a result of underestimation of the extent of the rehabilitation works, cost-overruns and the delayed project start-up. Third, the need to re-arrange the rehabilitation plan for the turbo generators at the Owen Falls hydroplant and more work than originally envisaged. The generators are expected to be fully rehabilitated and uprated in 1997, seven years behind  6 schedule. Implementation of the transmission and distribution components improved with the gradual improvement in the security situation, and with the implementing agencies' increasing familiarity with the Bank's procedures, in particular, international competitive bidding (ICB). The training provided helped implementation as well. Project Cost. As of end-1994, total project cost was about US$113 million, compared to the SAR estimate of US$73.4 million. The actual costs of both the rehabilitation of the Own Falls generators, and the transmission and distribution networks significantly exceeded the SAR estimates, largely due to the underestimation of the scope of the rehabilitation, the unforeseen requirements of the Kampala system, and delay in implementation. Bank and Borrower Performance. The Bank's performance was generally satisfactory. The Bank's 17 supervision missions had a substantial impact on improving project implementation. At the preparatory stage, the Bank should have paid more attention to project costs and scope to avoid cost over-runs and delays. With regard to the financial management of UEB, the Bank should have been more decisive in enforcing compliance with the financial covenants, especially the covenant requiring UEB to maintain the agreed relationship between accounts receivable and its annual operating revenues. The borrower's performance in implementing the physical components of the project improved over time, but its commitment to improving UEB's commercial and financial management was weak. The borrower did not comply with the rate of return covenant nor the accounts receivable covenant. Results and Sustainability Since the project has not been completed, its results cannot be fully assessed at this time. However, based on the results so far, the project achieved its primary objective to prevent the development of a bottleneck in power supplies, but was not successful in improving the financial management of UEB. The Internal Economic Rate of Return of UEB's investment program was re-estimated at about 14 percent. This is a reduction compared to the SAR estimates of between 16.7 and 21.6 percent, but is acceptable and justifies the investments made. The IRR should be re-calculated when final data on costs and benefits are available in 1997. The sustainability of the project depends on UEB's ability to improve its financial management and operational efficiency, without which it will not be able to cover the cost of adequate operation and maintenance of the facilities. To this end, measures have been initiated under the ongoing Third Power project. Structural Repairs to the Owen Falls Power House and Dam. The Project achieved its objective to repair structural damages in the power house and dam, and to re-waterproof the roof of the power house. Rehabilitation and Upgrading of Owen Falls Generators. By the end of 1993, the capacity at Owen Falls had been re-instated and the installed capacity of the plant had been increased from 150 MW in 1988, to 168 MW in 1993, mainly by rewinding the alternators of the generators using modern insulating materials. It is estimated that the rehabilitation and upgrading of the remaining units will be completed in 1997, by which time the total installed capacity will have been increased to 180 MW. Distribution and Transmission Rehabilitation. The project achieved its objective to rehabilitate priority transmission and distribution systems albeit behind schedule. The increased  7 and improved transmission and distribution capacity has made it possible for UEB to connect new customers to the system and meet the growing demand for electricity by the economy. Studies. Many of the recommendations of the studies carried out under the project were implemented, for instance, electricity tariffs were increased in line with the recommendations of the tariff study. Much of the underpinning for the ongoing Third Power Project results from the studies under the Project. On the other hand, the Billing and Revenue Collection Study did little to improve UEB's collection performance, largely because more emphasis was placed on the installation of a new computer system than on ensuring that appropriate measures to improve customer management were in place. Technical Assistance to the Ministry of Natural Resources. The project contributed to the establishment of the Energy Department which has come to play a more prominent role in Uganda's energy scene, especially through its household and renewable energy projects. Financial and Operational. The project did not achieve its objective to improve UEB's financial performance and operational efficiency. Despite several tariff increases, UEB continues to face severe financial difficulties. The main reason is UEB's poor collection performance. The number of staff employed by UEB doubled during project implementation and staff productivity, measured as the number of connections per staff employed, remained significantly below the SAR targets. Under the ongoing Third Power Project, UEB has agreed to implement a number of measures to address the above problems. For instance, the emergency action plan to improve billing and collection procedures includes managerial and organizational changes, and the investigation of options for improving customer management through possible privatization of the billing and collection function. Key Lessons Learned (1) Project implementation could have been expedited had project scope and cost estimates been prepared more accurately. However, given that the project was the first Bank operation in Uganda's energy sector in more than 20 years and that the country had hardly recovered from an emergency situation, the task of obtaining fully accurate data was difficult; (2) The Bank's flexibility in modifying the project scope based on new information of investment priorities and costs was important for achieving project objectives; (3) In spite of the constrained economic and security situation and the fact that UEB had not undertaken major construction in several years prior to project appraisal, its implementation capacity was judged to be strong enough to undertake the project in a relatively tight timetable. In retrospect it is evident that the project timetable, particularly with regard to start-up was too optimistic. Specifically, slow award of contracts led to delays; (4) The Bank should have been more decisive in enforcing compliance with the financial Credit agreements, especially the covenant requiring UEB to maintain an agreed relationship between accounts receivable and its annual operating revenues; and  8 (5) The project has shown that measures to improve institutional and financial performance have to be initiated up-front and be more comprehensive than those included in the project. The project should have addressed weaknesses in power sector management including the lack of autonomy and commercial orientation of UEB's operations. These issues are now being ddressed under the ongoing Third Power Project, including the possible privatization of the billing and collection function.  9 Part I: Project Evaluation from the Bank's Perspective P21.=2crFC DF\1rrY Name: Second Power Project Credit Nuiber: 1560 - UG RVP Unit: Africa Region Country: Uganda cector: Infrastructure Sub - Sector: Power 1. Project Background 1.1 In 1981 the Government of Uganda made a dramatic break with the past and, with the support from the IMF, the Bank, and other donors, introduced a series of financial and other policy reforms. As a result, economic performance improved despite the negative impact of internal security problems and adverse world economic conditions. The Government's recovery program had as its basic objective the rehabilitation of the productive sectors and the improvement of existing productive capacities. The Second Power Project was designed to support this program. 1.2 At project appraisal Uganda's power system was in a very poor condition as a result of the prevailing civil unrest in the country. Four out of the ten 15 MW generating units (commissioned between 1954 and 1968) at Uganda's main power generating plant, the Owen Falls hydro station, were out of service, there were cracks in the power house, and the 20 to 30 years old transmission and distribution systems needed rehabilitation and reinforcement. Indeed, the need for spares, vehicles, and communication equipment was so acute that financing for these;.items was provided under the Second Reconstruction Credit (Cr. 1252-UG) as a preparatory measure. 1.3 Years of political insecurity and wars had taken a heavy toll on the Government owned Uganda Electricity Board (UEB), which is responsible for all power generation and distribution in Uganda. Yet, at appraisal, UEB was assessed to be more efficient than most other Ugandan parastatals. The emergency situation that had prevailed in Uganda over the 10 to 15 years prior to appraisal, had constrained UEB to concentrate only on keeping the system operating. The SAR noted that planning and keeping abreast of development and new technologies had been neglected. The electricity supply system had continued to be operated at a technology level that was 20-30 years old. UEB had difficulty in providing sufficient funds to meet the costs of imported spares and materials for routine maintenance and had been unable to generate any significant contribution toward capital development. The SAR also noted that UEB had experienced considerable difficulties in customer billing and account collection due to security problems, lack of transport and periodic computer failure. Other reasons quoted comprised inefficiencies of the Uganda postal system, and the non-payment of Government agencies.   I1 2. Project Design and Organization 2.1 The project was prepared by the Uganda Electricity Board (UEB) and the Ministry of Power Posts and Telecommunications (MPPT) with the assistance of international consultants, IDA and ODA. It was designed to support the Government of Uganda's rehabilitation strategy. The ESMAP energy sector review, carried out in 1982, concluded that the rehabilitation of the existing generating, transmission and distribution facilities was a top priority for the development of Uganda's power sub-sector.' This study provided much of the underpinning for the project, while detailed design was based on the ODA-financed feasibility and engineering study by international consultants.2 2.2 The project also included several components to address UEB's financial and institutional problems. A new computer would make billings more timely and accurate, the additional transport would improve the effectiveness of the meter reading, bill delivery and collection efforts, and availability of connection materials would improve UEB's responsiveness to customer demand and decrease illegal connections. To address UEB's organizational and training needs, the project included studies of the organizational, manpower, and training requirements. 2.3 The ESMAP study recommended that an inventory of wood sources and a study on wood consumption be carried out. Both activities were included in the Project. The identified energy conservation options were not picked up by the Project, as further ESMAP work in this area was planned. Another ESMAP study entitled: "Institutional Strengthening in the Energy Sector" was the basis for the TA to strengthen the Energy Department of the MPPT, which during project implementation was reorganized and energy matters were brought under the Ministry of Natural Resources (MNR). 2.4 It was realized at the early implementation stage that project costs were underestimated, and that inadequate provision had been made for the rehabilitation of the Kampala network. The project scope was therefore modified to effectively address the requirements of Uganda's power system, for instance some contracts were let on a full turn-key basis. 1. 'Uganda - Issues and Options in the Energy Sector", Report No. 4453-UG, July 1983 2. "Rehabilitation and Uprating of the Uganda Electricity System", June 1984.   13 3. Project Objectives and Description 3.1 Objectives: The primary objective of the project was to prevent the development of a bottleneck in power supplies that would hinder economic recovery in the mnedium term, through the upgrade and rehabilitation of existing generation, transmission and distribution facilities. In addition, the project aimed at strengthening UEB's operational capability, and the energy sector planning capability of the ministry in charge of energy, currently the Ministry of Natural Resources. 3.2 The objectives of the project were ambitious, and were in line with the country's priority needs in the energy sector. Given the demanding economic conditions and continued civil strife, the implementation of the project stretched the capabilities of the implementing agencies to their limits. Description: The project included the following components: Part A: Rehabilitation and uprating of ten turbo generator units, structural repairs to the power house and dam at the Owen Falls hydro power station: 1. Rehabilitation and uprating of ten turbo generator units; 2. Civil works for structural repairs to the Owen Falls dam and power house; 3. Rehabilitation and replacement of electrical and mechanical equipment such as main cables, switchgear, control equipment, auxiliaries, intake and draft tube equipment, and service gates; and 4. Workshop refurbishment and provision of tools and equipment for maintenance. Part B: Rehabilitation of transmission and distribution networks and provision of ancillary items and studies: 1. Substation equipment - provision of transmission transformers of 132 kV and 33 kV and control and switch gear equipment; 2. Transmission and distribution lines - supply conductors, hardware, wood poles, transmission towers, distribution transformers, underground line material and consumer connecting material; 3. (a) Kampala-Owen Falls line: uprating of the existing 66 kV transmission line to 132 kV (Transferred to Power III); 3. (b) Kampala-Nkenda and Tororo-Lira lines - strengthening of the existing 132 kV lines (Dropped due to funds limitation); 4. Communication and control - provision of new power line carrier and system control and data acquisition facility (SCADA), telephone and radio equipment (dropped due to funds limitation but funds were provided later by bilateral agencies); 5. Vehicles and tools - provision of about 30 new vehicles, forklifts, cranes and the supply of tools and workshop equipment for UEB transmission and distribution crew members and to the existing electrical, mechanical, communication, metering and protection workshops in Kampala; 6. Supply of billing computer to UEB;  14 7. Reconstruction of the Jinja training school, provision of education equipment, and the reconstruction of hostel facilities (hostel facilities' reconstruction was dropped); 8. Reconstruction of district offices at Mbarara and Masaka, civil works repair for operational and residential buildings (dropped, but later undertaken by UEB using its own funds); 9. Provision of engineering services and consulting services including supervision of construction; and 10. Provision of the following studies:l (i) Prioritization study (added) (ii) Tariff study (iii) Billing and collection study (iv) Accounting study (added) (v) Rehabilitation of the Kampala network (added) (vi) Feasibility study to supply electrical power to Western Uganda (added) (vii) Feasibility study of an extension to the Owen Falls hydroelectric station (viii) SCADA study (added) Part C: Technical assistance to the Ministry's Energy Department 1. Provision of TA for the operation of the Energy Department 2. Provision of TA for carrying out: (i) a forest and plantation inventory (implemented by the Ministry of Agriculture and Forestry under another project); (ii) national fuelwood marketing survey; and (iii) household energy survey in the major towns of Uganda. 3. Additional studies were financed by ODA, AfDB, CIDA, and by the Second Technical Assistance Credit, Cr. 1434-UG. Cr 1434-UG: An Assessment of management, organization, manpower and training requirements of UEB, and a selective staff development study and training manual. ODA: A Study to Review Stores and Workshop Facilities and Procedures. AfDB: a Distribution System Rehabilitation and Loss Reduction Study, and a National Electrification Planning Study. CIDA: A study to investigate the feasibility of developing hydroelectric capacity at the Bujagali site.  15 4. Project Implementation 4.1 Overview. It took eight and a half years from Credit signing to Credit closure, compared to the SAR estimate of five years. Nevertheless, the project was not completed at the Credit closing date. The IDA/CDC-financed components were completed by mid-1994, while the ODA financed rehabilitation of the turbo generators at the Owen Falls hydro plant are expected to be completed only in 1997. The Credit became effective on June 26, 1986, thirteen months after credit signing. The main reasons holding up effectiveness were the long time it took to obtain the legal opinion on the IDA lending documents from the Uganda Attorney General, and the cross effectiveness of the CDC loan. Because of the continued political instability in Uganda after Credit signing, project start-up was postponed further. UEB's main concern at that time was to keep the system in operation, and consequently project implementation was given lower priority. The slow contracting of the supervising consultants for both the Owen Falls rehabilitation and for the transmission and distribution rehabilitation components also delayed implementation. Additionally, the discovery that the project was under-funded and that the original scope no longer effectively addressed the priority needs of the system contributed to increasing implementation time as new studies had to be undertaken and some tendering repeated. Slow payments of contractors, which was primarily caused by the long issuance time of letters of credit by Bank of Uganda, also frustrated project implementation. This situation improved when the special account was transferred from Bank of Uganda to a local commercial bank. The appointment of a new General Manager and Board of Directors for UEB in mid-1987 proved to be a turning point in strengthening project implementation. Moreover, the improved security situation and the implementing agencies' increased familiarity with the Bank's procedures, including ICB, contributed to a qualitative change in the implementation of the physical components of the project 4.2 Structural Repairs to the Owen Falls Power House and Dam. The IDA Credit and the CDC loan financed repairs to the power house and the dam. These works included the insertion of 85 massive steel-wire anchors through the structure of the 30 year-old power station structure into the bed-rock beneath, to prevent further cracking of the foundations4. This work was completed in mid- 1990. The re-waterproofing of the power house's roof was completed in 1988. The Credit also financed repairs to the dam and dam gates. Further work to investigate the need for dam strengthening is currently underway under the Third Power project. 4.3 Rehabilitation and uTpgrading of the Owen Falls Generators. Thc implementation of this component, which was fully financed by ODA, was significantly delayed. The last generator is expected to be rehabilitated and uprated by early 1997. The delay was caused partly by the fact that the rehabilitation requirements varied from one generator to another and it was apparently not possible to define them until the generators were opened up, and partly because UEB requested that the generators be dismantled and rehabilitated in series instead of under a program of overlapping outages as originally planned. UEB requested this re-arrangement because it was concerned that it would not be able to meet the demand for electricity with several units out of commission simultaneously. Coupled with the need for more work than originally envisaged, the new rehabilitation program significantly extended the rehabilitation time and increased project costs. As of end-]994, when the rehabilitation of the eighth unit (of 10) was 4. The SAR discussed several causes for the cracking of the foundations ana concluded that regardless of the cause, the only remedial action that will prevent further deterioration was Ihe installatior, of the anchors.  16 on-going, the costs had already exceeded US$28 million compared to the SAR estimate to completion of US$9.8 million. 4.4 Transmission and Distribution Rehabilitation. Under this component, IDA and CDC financed more than 20 supply and turn-key contracts for substations, transformers, overhead line equipment, vehicles, poles, office equipment, hard and software for UEB's billing system, etc. An intemational consulting firm assisted UEB's project coordinator in bid preparation and evaluation, procurement and in the supervision of contractors. This component was originally intended to rehabilitate the major transmission and distribution systems country wide. When the project implementation finally started, more than two years behind schedule, it was realized that the scope of the rehabilitation works was under-estimated partly because of the delay which had led to additional deterioration, and partly because of the need to strengthen implementation by letting major contracts on a turn-key basis instead of a supply basis as intended at appraisal. The project also was under-funded and UEB was not able to provide the agreed contribution to project financing. In addition, the rapid load growth in the Kampala area had put its distribution system under pressure with frequent interruptions as a result. Consequently, the Bank agreed to two additional studies: the first study was to examine the rehabilitation needs of the Kampala system, and the second study was to prioritize between the several rehabilitation needs in the country wide system. Based on the recommendations of these studies, the project scope was modified to focus on the rehabilitation and upgrading of the networks in the Kampala area. Due to the 'iigher cost of the project, four originally planned components could not be funded from the Credit as planned: (i) communication and control - provision of new power line carrier and SCADA, telephone and radio equipment; (ii) reconstruction of district offices at Mbarara and Masaka, civil works repair for operational and residential buildings; (iii) Kampala-Owen Falls line: uprating of the existing 66 kV transmission line to 132 kV; and (iv) Kampala-Nkenda and Tororo-Lira transmission lines - strengthening of the existing 132 kV lines. Of these (i) was later financed by NDF and NORAD, (ii) was undertaken by UEB by its own funds, and (iii) is being carried out under the ongoing Third Power Project. 4.5 The supply and installation contracts under this project component were substantially completed by mid-1994, compared to the SAR target year of 1987. At UEB's request, parts of the transmission and distribution rehabilitation works were carried out by UEB staff using the materials procured under the Credit. This contributed to improving UEB staff skills in transmission and distribution system rehabilitation. 4.6 Studies. A total of 8 studies were carried out by international consultants. The initiation of the studies was slow, due to, at least partly, the limited staff resources at both UEB and the MNR at the initial stages of project implementation. The studies were completed by 1991 as opposed to the SAR target year of 1988. Some of the studies were deferred at IDA's request. The Accounting Study was added to the project scope at UEB's request as a response to IDA's repeated remainders that UEB was not complying with the financial covenants of the project. 4.7 Technical Assistance to the Ministry of Natural Resources. The Credit financed a petroleum adviser, a senior energy adviser, and a biogas expert, a Household Energy Planning Program, training, vehicles and office equipment. Continued financing for the services of the senior energy adviser and the biogas expert is currently provided under the Third Power Project. The planned Forest and Plantation Inventory was not carried out because it was more appropriately carried out by the Ministry of Agriculture and Forestry and for which financing from other sources was obtained. The Fuelwood Marketing Survey and the Urban Household  17 Energy Survey were combined into the Household Energy Planning Program. It was completed in 1990, and recommended a US$6.5 million investment program mainly aimed at improving the efficiency of charcoal production and use. Although this study was comprehensive, neither the Bank nor the Government considered its recommendations adequately justified, and it thus failed to provide the basis for a household energy strategy as envisioned. In 1992, the Ministry agreed to re-allocate about US$2 million to UEB to finance the repair of damages caused by fire at Owen Falls. 4.8 Project Cost. The estimated cost of the project at the time of appraisal was about US$73.4 million. Actual project cost was about US$113 million in December 1994, as shown in Table 5.1 in Part III. The costs of both the rehabilitation of the Owen Falls and the transmission and distribution systems were substantially higher than estimated in the SAR as a result of implementation delays and also because the scope of the rehabilitation was under estimated. Final cost data will be available when the Owen Falls rehabilitation has been completed in early 1997. 4.9 Project Risks. The major risk considered during appraisal was the ability of the Government of Uganda to maintain public security and secure working conditions for project implementation and subsequent maintenance. It was especially expected that the rehabilitation work on the transmission and distribution systems could be delayed because of security reasons, but the Owen Falls site would not be affected. In retrospect, it can be noted that at least three additional risk factors should have been identified and addressed in a greater detail: the weak initial implementation capacity of UEB and MPPT; the weak financial management of UEB given that the appraisal team were unable to obtain up-to date financial data, and that UEB's financial position was judged to be weak; and technical risks in regard to the rehabilitation works.   19 5. Disbursements 5.1 A total of US$40.2 million (SDR 29.5 million) was disbursed. The Credit was fully disbursed, but the disbursements were much slower than expected in the SAR mainly because of the delayed start-up of the project. Disbursements were completed over a period of seven and a half years compared to the appraisal estimate of five years. Because of the appreciation of the exchange rate for the SDR, the disbursed amount was higher than the SAR estimate of US$28.8 million. At appraisal the disbursements were scheduled at a quicker rate than the standard profile for power projects in the Eastern Africa Region because the project did not include the construction of new facilities. In hindsight, this assessment was too optimistic.   21 6. Procurement 6.1 Schedule I of the Project Agreement (PA) stipulated that goods and works shall be procured under contracts awarded in accordance with the "Guidelines for Procurement under IBRD Loans and IDA Credits " published by the Bank in August 1984, except for civil works for the Training Center and for the reconstruction of local offices at Mbarara and Masaka which could be procured through local competitive bidding. Minor civil works on transmission installation could be carried out by UEB staff. The PA further stated that consultants shall be selected based on the Bank's guidelines for the use of consultants, published in August 1981. The Bank agreed that UEB procure some urgently needed materials for the Owen Falls and the transmission and distribution systems through international shopping. CDC followed the Bank's procurement guidelines, whereas ODA applied its own rules. 6.2 Progress on procurement was reported to have been good during the final project years. At the outset, the borrower and the implementing agencies were unfamiliar with ICB leading to delayed procurement decisions.   23 7. Project Results 7.1 Even though the project is not fully completed, project results so far show that the project contributed substantially to improving the quantity and quality of electricity supply and in improving UEB's technical capabilities. The project was less successful in improving UEB's financial management and operational efficiency and in improving the energy planning capabilities of the Energy Department. The project was successful in establishing the basis for a rational electricity pricing policy. 7.2 Structural Repairs to the Owe Falls Power House and Dam. The project achieved its objective to repair structural damages in the power house, dam and dam gates, and to re- waterproof the roof of the power house. These works helped to preserve UEB's key generation asset. 7.3 Rehabilitation and Upgrading of Owen Falls Generators. At the time of the preparation of the PCR, this project component had achieved about 70 percent of its objective. By mid- 1994, seven of the planned 10 hydro generators had been commissioned, and work had begun on the eighth. The installed capacity has increased from 150 MW in 1988 to 168 MW in 1993, as a result of the rewinding the alternators of the generators by modem insulating materials. Over the same period, the generation output of the plant has increased from some 570 GWh to 980 GWh. Once the remaining units have been rehabilitated and uprated, the total capacity will increase to 180 MW, and the reliability of the supply will improve further. 7.4 Distribution and Transmission Rehabilitation. The project achieved its objective to rehabilitate priority transmission and distribution systems albeit with delays. The increased and improved transmission and distribution capacity has made it possible for UEB to connect new customers to the system and meet the growing demand for electricity by the economy; the number of customers has increased by about 44 percent between 1988 and 1993, and sales have almost doubled during the same period. In addition, the supply is more reliable. Based on interviews with a limited number of industrial and commercial sector consumers in Kampala in mid 1994, there has been a noticeable improvement in supply reliability recently. The continued rehabilitation work under the ongoing Third Power project will further improve the networks. System losses, which accounted for about 34 percent of Uganda supply in 1993, are, however, unacceptably high and were not reduced during project implementation. UEB intends to initiate a loss reduction project based on the Loss Reduction Study financed by AfDB. This key project should be initiated as soon as possible. 7.5 Studies. Several important studies were successfully completed under the project and many of the recommendations were carried out. Following the recommendations of the Tariff Study, completed in 1990, UEB established the Long Run Marginal Cost of Supply (LRMC) as the basis for tariff setting and its recommendations were fully implemented by July 1993, as a condition of effectiveness of the credit for the Third Power project. The Study to assess the management, organization, manpower and training needs of UEB, which was financed outside of the Project by ODA, laid the foundations for the reorganization of UEB, and as a result, a staff development scheme was carried out under which several senior managers received training in Europe. The Billing and Revenue Collection Study recommended the purchase of computer equipment and various improvements in UEB's procedures and practices. A new computer system was installed albeit with delays. While the new computer offered increased efficiency in  24 billing procedures, UEB failed to improve its revenue collection performance largely because greater emphasis was placed on the installation of the computer system than on ensuring that appropriate measures to improve customer management were in place. Moreover, the important issue of the quality and accuracy of UEB's customer data base was not adequately tackled. Based on the recommendations of the Accounting Study, UEB computerized parts of its accounting and reorganized its Finance Department. Even though UEB currently is able to produce more reliable financial data than before, the lack of highly qualified accountants hampered the full implementation of the recommendations of the Accounting Study. 7.6 In addition, much of the underpinning for the ongoing Third Power Project results from the studies under the project. For instance, the feasibility and detailed design for the 102 MW Owen Falls Extension, currently being constructed, was financed under the project. 7.7 Technical Assistance to the Ministry of Natural Resources. The project contributed to the establishment of the Energy Department which has come to play a more prominent role in Uganda's energy scene, especially through its household and renewable energy projects. A major disappointment was that the Household Energy Planning Program did not produce results that could have been implemented to develop a household energy development plan as envisaged. Currently, the Third Power Project is providing follow-up financing for the senior energy adviser and for the biogas promotion project. Continued support will depend on the ongoing review of past achievements. There is also a need to strengthen the Department's activities in new areas, and the ongoing Third Power Project is providing TA to assist the Department to review legal aspects of private sector participation in the power sub-sector. An additional area where the Department would need strengthening is the monitoring of the recently liberalized petroleum products prices to ensure least-cost supplies to consumers. 7.8 UEB's Financial and Operational Performance. The project did not achieve its objective to improve UEB's financial and operational performance, and follow-up actions are being carried out under the ongoing Third Power project. At project appraisal, in 1984, UEB's financial performance was unsatisfactory. UEB was not able to produce reliable financial information. Its accounts receivable were estimated to be equivalent to at least 5 months of billings. It was unable to cover the cost of routine maintenance and contribute towards capital development. Despite an increase of 400% in the average tariff yield, the average revenue per kWh was equivalent to about US cents 1.5 per kWh, while the supply cost was broadly estimated by the ESMAP study to some US cents 5 per kWh. In addition, the monitoring of UEB's performance in accordance with the Credit agreements, was judged by the appraisal team to put a heavy burden on UEB's accounting systems. The SAR also was concerned whether UEB's organizational structure and operational performance would be adequate to administer a major project. Adding to these concerns were the low staff morale and attendance resulting from the eroded purchasing power of staff salaries due to high inflation. 7.9 At Credit closing UEB's financial performance and its operational efficiency were still unsatisfactory, despite the training and studies provided by IDA, ODA and AfDB- . UEB was not able to reach the 8 percent rate of return on its fixed assets as covenanted in the legal agreements for the Credit. This was partly due to the revaluation of UEB's assets and the low bulk tariff for electricity exports to Kenya (sales to Kenya were priced at about US cents 0.3 per 5. ODA and AfDB financed expatriate executive officers for UEB's Finance, Stores, Training, Corporate Planning, Commercial Operations and MIS Departments. Most of these staff have recently been replaced by UEB staff members. In addition, the British Council provided scholarships for graduate studies in Europe. Continued institutional support is expected from the above sources  25 kWh in 1993), as well as the low domestic tariff which prevailed until mid-1993. Operational inefficiencies, including high staffing levels, also contributed to the problem; the number of staff employed by UEB doubled between 1986 and 1993 and staff productivity, measured as the number of connections per staff, was low - 34 in 1993 - and below the SAR targets. In spite of the increase in the average tariff to some US cents 7.3 per kWh in July 1993, UEB posted a loss in 1993, and was not able to fully service its debt obligations for 1993 nor for 1994 . 7.10 UEB's financial difficulties stem mainly from its inability to collect revenue; in 1993, 7 receivables stood at more than 9 months of sales, compared to the covenanted 3 months7. Private consumers accounted for about two thirds of UEB's hilling arrears, as public sector billing arrears were covered by an annual debt swap arrangement between UEB and the Government. The root causes of UEB's commercial difficulties are the unreliable customer data base and systematic problems with inadequate organizational arrangements and management control systems, ranging through meter reading, staff collusion with customers, and cash collection. To remedy the situation, UEB has initiated an intensified program to disconnect delinquent customers, carried out a customer census in Kampala to update its consumer data base, and has agreed under the ongoing Third Power Project to implement an emergency action plan to bring receivables down to 3 months of sales by the end of 1995. This plan includes managerial and organizational changes, replacement of meters and investigating options for improving customer management including possible privatization of billing and collection. 7.11 Economic Impact. The SAR reports two alternative IRR estimates: 16.7 percent and 21.6 percent. The difference between these two estimates is the value of incremental sales in Uganda made possible by the investments; in the first case the SAR uses the average 1985 tariff yield as the value, and in the other case the projected average annual tariff yield during project implementation. The SAR correctly noted that the IRR estimates were financial rates of return adjusted for price inflation and excluding duties and taxes, and did not take account of consumer surplus. Based on the SAR methodology, adjusted for implementation delays, the IRR for UEB's investment program was re-estimated at about 14 percent. This is a reduction compared to the SAR estimates, but the IRR is acceptable and justifies the investments made. Despite the substantial escalation in investment costs, the reduction in the IRR is not significant because the investments were spread out over a longer period and because domestic tariffs were higher than assumed in the SAR. As was the case with the SAR estimate, the re-estimated IRR did not take account of consumer surplus; it thus underestimates the economic benefits of the project. Details of the calculation are shown in Table 6 in Part III. Because the final data on project costs and benefits will be available only in 1997, it is recommended that the IRR be re-estimated at that time in conjunction with the supervision for the Third Power Project. 6. By mid-1994, the average tariff yield from domestic sales had increased to around US cents 10 per kWh, as a result of the appreciation of the Uganda Shilling vis-a-vis the US dollar. 7. UEB's accounts receivable position worsened during 1993 and 1994, as a result of substantial tariff increases implemented in July 1993 and August 1994.   27 8. Project Sustainability 8.1 The sustainability of the project is likely, provided that UEB improve its financial management and operational efficiency, without which it will not be able to finance adequate operation and maintenance of the facilities. With Bank support, under the ongoing Third Power project, UEB has already initiated measures to improve its commercial operations and financial management. In addition, the Government is intent to improve the efficiency of the sub-sector, manifested by its current process to review development options for the energy sector and to 8 prepare an energy sector strategy in connection with the ongoing ESMAP study . 8. Issues and options in the Energy Sector. Draft report April 1994.   29 9. Bank and Borrower Performance 9.1 The Bank's performance was generally satisfactory. At the preparation stage, the Bank should have paid greater attention to project costs and scope, though the difficult economic and security situation in Uganda before and at the time of project appraisal posed limitations. The Bank's 15 supervision missions had a substantial impact on improving the implementation of the physical components of the project, and the Bank was flexible in accepting changes in project scope and in reallocating funds when it became evident that the project was underfunded and required refocusing. With regard to the financial management of UEB, the Bank should have been more decisive in enforcing compliance with the financial covenants, especially the covenant requiring UEB to maintain an agreed relationship - specified in a supplemental letter - between accounts receivable and its annual operating revenucs (PA 4.01). 9.2 The borrower's performance in regard to the construction aspects of the project improved towards the end of the project. While country circumstances beyond the implementing agencies' control were a major impediment to project implementation initially, the borrower's slow procurement decisions contributed to delays. In regard to improving UEB's commercial and financial management, the borrower's commitment to project objectives was weak. The borrower did not comply with all the financial covenants of the project, submission of audits was often delayed, and UEB was unable to provide the agreed contribution to project financing. On the positive side, the borrower increased power tariffs to the level of LRMC, identified the need for the accounting study to improve financial information, initiated institutional improvements and staff training programs, and submitted its completion report as requested.   31 10. Project Relationship 10.1 IDA maintained a good working relationship and adequate communication with the Borrower, UEB, the Ministry of Natural Resources, and the co-financiers during project preparation and supervision. Coordination with other donors was also good.   33 11. Project Reporting 11.1 The documents in the project file were adequate to prepare this PCR. The Bank's supervision reports were comprehensive. They discussed the progress of the several contracts and studies, reported on UEB's financial situation, and the progress on the technical assistance component. The Borrower's quarterly project progress reports were detailed and of high quality and provided a good account of implementation progress but they did not discuss the institutional and financial aspects of the project. Reporting on the technical assistance to the MNR was limited from the side of the borrower.   35 12. Lessons Learned (1) Project implementation could have been expedited had project scope and cost estimates been prepared more accurately. However, given that the project was the first Bank operation in Uganda's energy sector in more than 20 years and that the country had hardly recovered from an emergency situation, the task of obtaining fully accurate data was difficult; (2) The Bank's flexibility to modify the scope of the project based on new information of investment priorities and costs was important for achieving project objectives; (3) In spite of the constrained economic and security situation and the fact that Uganda had not undertaken major construction in several years prior to project appraisal, its implementation capacity was judged to be strong enough to undertake the project in a relatively tight timetable. In retrospect it is evident that the project timetable, particularly with regard to start-up was too optimistic; (4) The Bank should have been more decisive in enforcing compliance with the financial covenants of the Credit; and (5) The project has shown that measures to improve institutional and financial performance have to be initiated up-front and have a more comprehensive approach than what was included in the project. The project should have addressed the weaknesses in power sector management including the lack of autonomy and commercial orientation of UEB's operations. These issues are now being addressed under the ongoing Third Power Project, including the possible privatization of the billing and collection function.   37 PROJECT COMPLETION REPORT UGANDA SECOND POWER PROJECT (CREDIT 1560-UG) PART II: PROJECT EVALUATION FROM THE BORROWER'S PERSPECTIVE   39 UGANDA ELECTRICITY BOARD SECOND POWER PROJECT PROJECT COMPLETION REPORT PART II 1. INTRODUCTION During the 1970s the Owen Falls Power Station suffered from a lack of regular maintenance due to the political and economic situation in the country. By early 1980s it was clear that the forecast growth in the Uganda system could not be met by a new hydroelectric scheme without serious shortfalls in generating capacity in the interim. Kennedy & Donkin in association with Sir Alexander Gibb & Partners in 1983 proposal to uprate and rehabilitate the existing Owen Falls Power Station from 15MW to 18MW (for each of the 10 units) and the transmission and distribution system was accepted by UEB. The study was funded by ODA. In 1985 IDA, CDC and ODA extended various credits for the rehabilitation project. The initial project cost estimate was US$ 72 Million but at completion the project cost was approximately US$ 115 Million. 2. PROJECT START-UP The start-up of the project was delayed about two and a half years by several constraints including country-wide strife. The original project cost estimates were therefore inapplicable. The network had further deteriorated, prices had escalated during that period. Meanwhile the Board decided on supply and install contracts rather than mere supply contracts in order to secure suppliers' warranty conditions. Due to limited funding a prioritisation study was undertaken in 1989 to review the scope of the work and also to determine a new project implementation schedule. The following major items were left out of the new scope of work: - uprating of the existing 66kV transmission line between Kampala to 132 kV  40 strengthening of 132 kV transmission lines, Kampala -Nkenda, Tororo - Lira. communication and control provision of new power line carrier SCADA, telephone and radio equipment. [later financed by NDF and NORAD respectively] reconstruction of district offices, Mbarara, Masaka and Civil Works repair for operational and residential buildings. [UEB has undertaken using own funds]. Additional funding shown in Annex 1 was, secured to finance some of the items left out by the prioritisation study. 3.1 Rehabilitation and Uprating of Owen Falls Power Station and Dam. The works were supervised by ODA financed consultants Kennedy & Donkin in partnership with Sir Alexander Gibb and Partners. The electrical/mechanical component was financed by funds from Overseas Development Administration (ODA) and a civil component financed jointly by International Development Association (IDA) and Commonwealth Development Corporation (CDC). The rehabilitation of the Owen Falls Power Station involved the repair and renovation of the following civil works: Contract 001: Underwater inspection/repairs Contract 002: Power Station repairs Contract 003: Re-water proofing Power house Contract 021: Dam gate equipment Contract 028: Consultants' houses as well as the following supply contracts: Contract 024: Transformers,anc. equipment Contract 025: Cables and Accessories Contract 026: Switchgear equipment Contract 029: Consultants' vehicles The key features of the refurbishment were: to include new and uprated stator windings modernisation of the excitation system for the entire 1O generating sets refurbishment or replacement of virtually all mechanical moving parts modemisation of the electrical and control equipment.  41 The programme of refurbishing and rewinding the turbines and generators was still in progress by the Credit closing date of 31 December, 1993 and was expected to be completed by 1997. The causes of this delayed implementation are discussed in paragraph 6. 3.2 Transmission, Distribution and Communications Component This was under supervision of consultants Lahmeyer International of West Germany and contracts relating to these works were mainly for supply and installation of electrical equipment. The work involved the rehabilitation of the system including the strengthening of the lines and major substations between Owen Falls Power Station and Kampala, Kampala and Mbarara and between Tororo and Mbale, also the replacement of communication equipment linking some substations, District Offices and vehicles. 3.3. Awarded supply contracts A major part of the funds were used for emergency material to enable UEB to repair the existing network to install new distribution transformers and connect additional customers. The entire UEB organisation had to be restructured and provided with logistics like vehicles, office material and working tools. The following supply contracts have been placed and material received: 3.3.1 UEB A 1864 to A 1870 emergency items A 1864 Distribution transformers A 1866 Radio Transceiver sets A 1867 Photocopy machine A 1868 Air conditioners A 1869 Various items A 1870 Office equipment 3.3.2 Supply Contracts UEB 104 Radio Communication systems UEB 201 Power Transformers HV/mv UEB 202 Distribution Transformers UEB 203 Cables and Accessories UEB 204 Overhead line equipment UEB 205 Distribution Pillars UEB 206 Tools and equipment  42 UEB 207 Workshop Tools and equipment UEB 208 Specialised vehicles UEB 209 Transformer Repair material UEB 231 Circuit breakers UEB 235 Billing Computer 3.3.3 Supply & Installation Contracts UEB 302 HV and MV overhead lines UEB 401 132/33/11kV substations. 4. INSTITUTIONAL AND MANAGERIAL CHANGES. A major institutional change supported by the World Bank was financed by the African Development Bank. This was the Institutional Support Project under which expatriate staffs were recruited to head the departments of Finance, Commercial, Management Information System (MIS) and a newly created Corporate Planning Department. 5. Further Studies. In addition to the prioritisation study, various studies were undertaken by consultants to improve and develop electricity supply in Uganda in the lifetime of the Project. 5.1 Extension of Owen Falls Power Station Study. This was a feasibility study and engineering design for the next hydro site to be developed in Uganda's least cost power development plan and was complemented with site subterranean investigations financed by CIDA, Canada. 5.2 Training Studies. There were two studies related to training and management reorganisation "Assessment of Management, Organisation, Manpower and Training Requirements of UEB", study and "Selective Staff Development Study" and training manual. The consultants recommended the re-establishment of the Niger Training Center, and a structural reorganisation of the Board. As a result a staff development scheme was undertaken in which several UEB Senior Managers received training in the U.K. 5.3 Finance and Accounting.  43 The consultants assisted UEB to set up a project accounting manual for Second Power Project. As a variation to the contract allowed the consultants to join hands with UEB staff in finalising the accounts for 1988 - 1989 which were in arrears. Their recommendations have formed the basis for computerising the accounting and reorganisation within the Finance Department. 5.4 Billing and Revenue Collection Study. Following the final breakdown of the KL 1902A computer in 1986 the billing and collection system was then converted to run on third party equipment on a bureau basis In 1987 Consultants who carried out a study of current practices in the areas of billing and revenue collection recommended the purchase of new computer equipment as well as proposing improved procedures and practices. Implementation was not satisfactory. It took a long time to supply all the equipment and problems were encountered in running an outdated software programme. The accuracy of the consumer standing data was also over estimated. 5.5 National Electrification Planning Study Related to the study mentioned at para 5.1 was the National Electrification Planning study undertaken under African Development Bank funding. The objective of the study was to examine the technical, financial and economic feasibility of a programme for providing electricity to a substantial number of areas in Uganda during the next 20 years. 5.6 Loss Reduction Study The Loss Reduction Study was funded by ADB and was meant to close the gap in overall system planning and system reliability improvements. 5.7 Tariff Study. At the inception of the Project it was evident that the Board lacked finances for capital development, debt service and a reasonable rate of return. Therefore, Consultants were engaged in 1990 to carry out a tariff study. The study established the Long Run Marginal Cost (LRMC) as the basis for setting tariffs. Recommendations about tariff structures and new tariff levels have been implemented since 1991. 5.8 Other studies  44 The following studies were also undertaken and completed. - Review of stores and vehicle workshop facilities and procedures. - Feasibility study to supply electrical power to Western Uganda. - Rehabilitation of the Kampala Network. - Household Energy Planning Programme. - Rehabilitation and uprating of Uganda electricity system including 10 amendments. 6. PROJECT IMPLEMENTATION CONSTRAINTS 6.1 Rehabilitation and Uprating of Owen Falls Power Station and Dam In retrospect the causes of delays in implementation have been:- 6.1.1 Technical problems differed from unit to unit and this could not have been reasonably foreseen. 6.1.2 Funding constraints experienced influenced and prolonged the implementation schedule. 6.1.3 The base load in 1971/1972 before the expulsion of the Asians and which represented suppressed demand may not have been properly taken into account in the load forecasting. With revived economic activity it was not possible to hand over the machines to the contractors as envisaged in the schedule of implementation. 6.1.4 The change of supervising consultants from the study consultants could have contributed to the delay in implementation as the former needed time to familiarise. 6.1.5 The consultants were paid directly by the funding agency with little indulgence by the employer and the influence of the employer over the consultants was diluted somewhat. 6.2 Other Constraints At the inception of the project the Special Account was held at Bank of Uganda and because of the then existing exchange controls in the country clearance had to be obtained from Bank of Uganda for most of procurement matters. Long delays in disbursing to suppliers and contractors were experienced. The situation improved when the Special Account was transferred to a local Commercial bank. Liberalisation of exchange controls further improved project implementation.  45 Joint financing of the generation component between IDA and CDC in the ratio of 70/30 caused some difficulties at the beginning. This was sorted out when IDA agreed to exhaust own funds before utilising CDC funding though maintaining the overall ratios. 7. COST OVERRUNS 7.1 Despite reduction in scope of the works (para 2), cost overruns beyond the budget cost estimates for Credit 1560 were experienced and are discussed below. 7.2 The World Bank agreed that cost overruns on UEB-401 contract which is a major contract to improve to several main substations throughout the network could be disbursed from the Third Power Project (Credit 2268-UG). In addition to DM 15,756,543 paid out of Credit 1560, extra US$ 10 Million will be disbursed from Credit 2268. The costs for the supervising consultant amounting to about US$ 2,306,000 will also be paid from Credit 2268. 7.3 Costs (including five variations) for the design Consultants for Owen Falls Extension beyond the provisions of Credit 1560 were also agreed to be disbursed from the Third Power Project Credit in the approximate amount of Canadian Dollars 4.5 million. 7.4 Also to be paid from Credit 2268 are some minor costs for the expatriate staff in the MIS department totaling to US$350,000. 8. TECHNICAL ASSISTANCE TO THE MINISTRY OF ENERGY 8.1 Establishment of the Energy Department. The energy department has been successfully created and is currently staffed with well qualified professionals who have been trained under the Second Power Project at both short and long courses and have also gained considerable experience in the energy sector over the years. The Department has benefited from provisions of computer hardware and software as well as motor vehicles. It must be noted however that just as well qualified professional staff are in place, they are not in sufficient numbers and indeed a number of established posts in the various divisions of the energy department are not filled. This has been mostly due to the prevailing high salary and wage disparities.  46 8.2 Assistance for carrying out a forest and plantation inventory This project was not undertaken by the Ministry of Energy because it constituted a component of another project, under the Ministry of Agriculture and Forestry. The National Biomass Study, financed by sources outside the Second Power Project. The National Biomass Study has been completed. 8.3 Assistance for a fuelwood marketing survey as well as an urban household energy survey in the major towns of Uganda A fuelwood marketing survey was not undertaken but an urban household energy survey was undertaken and completed by September 1990 under what w'1s called the "Household Energy Planning Program (HEPP)". The study was fairly exhaustive but has now been overtaken by events and needs to be revised to adapt it to present day circumstances. 9. OUTAGES AND LOSSES 9.1 Maximum system demand has shown a steady increase as the units in Owen Falls Power Station have been rehabilitated. Not only has the system demand increased (136.2 MW in 1991, 151.0 MW in 1992 and 157.2 MW in 1993) but the maximum load sent to Kenya has also shown an upward trend, although in 1993 there was a decrease from 1992 because of the increased Ugandan demand. 9.2 The availability of energy has improved markedly during the last 12 months. During the 7 month period June to December 1993, there was an average of 163 hours per month of load shedding due to distribution shortfalls and 89 hours per month due to generation outages at Owen Falls Power Station (a total of 202 hours/month). The average monthly energy loss was 690 MWh. This situation did not change markedly during the first months of 1994, but in the quarter April to June 1994 there were NO loadsheds due to distribution deficiencies (and this coincides with the commissioning of the Mutundwe, Port Bell and Gaba Waterworks Substations) and only an average of 43 hours per month loadshedding due to faults at Owen Falls Power Station. During this period the energy loss was only 155 MWh/month and was as low as 65 MWh in June when there was a total of only 15 hours of load shedding. Note that hours of loadshedding do not indicate that the whole of the system was off power for that period; it is the sum of the hours lost on the 12 1 1kV feeders and six 33 kV feeders from Kampala. 9.3 Technical losses are caused in particular by over loaded transmission lines and transformers as the maximum demand increases. Other causes are the dilapidated LV  47 distribution network. The poor system voltages are largely due to haphazard growth of distribution and connections. 9.4 Future action to reduce the high technical losses will depend on the implementation of the ADF funded Urban Power Rehabilitation Project. 10. PROJECT ROLE IN LONG TERM UEB PLAN The Project has provided relative improvements to power system reliability and efficiency by restoring generating capacity at Owen Falls. The rehabilitation of Owen Falls Power Station will result into uprating of capacity by 20% (30MW). However, the firm capacity of the station after rehabilitation (with nine units in service and one unit under maintenance) will be 162MW. - Strengthening UEB's Management by provision of training, improved work incentives through annual salary/wage increase and a rationalised organisation structure. - Promoting rational pricing policies based on long run marginal cost principles. The downside of the tariff policy which has been targeting the LRMC has been an increase in receivables. - Least cost options for timely development of generation capacity, namely, the Owen Falls Extension was identified. - The numerous studies have provided UEB with useful management data base.   Annex 1 OTHER UEB CONTRACTS UNDER SECOND POWER PROJECT contract 9V. 'Description | Funding Contractor Cureniy I M40ount | ate tEq|iv. VSS UEB 91-402 SCADA Equipment NDF ABB Sweden SEK 29,904,000.00 5.93 5,040,684.00 UEB 91-403 PLC and Communication NORAD EB-NERA NOK 16,500,000.00 9.01 1,831,542.00 Equipment UEB 92-404 Supply & Installation of Mbarara EIB GTA & DM 4,514,992.00 1.71 2,639,728.72 132/33 Kv Substation UEB SAD USH 32,779,000.00 1,140.00 28,753.51 UEB 92-405 Supply of Steel Towers EIB Siemens AG DM 5,794,469.00 1.71 3,387,785.90 Masaka-Mbarara UEB USH 143,060,400.00 1,140.00 125,491.58 UEB 92-406 Supply of ACSR Conductors EIB Siemens DM 2,394,212.00 1.71 1,399.796.54 Amd. No. I ACSR 120/20 EIB Siemens DM 1,083,500.00 1.71 633,477.55 UEB 92-407 Supply of Insulator chains, strings EIB Siemens DM 849,440.00 1.71 496.632.37 and fittings _ _ Amd. No. I 33 KV equipment EIB Siemens DM 1,550,824.00 1.71 906,702.53 UEB 92-408 Survey Works EIB Lahmeyer DM 1,011,840.00 1.71 591,580.92 UEB 92-409 Supervision Works EIB Lahmeyer DM 959,850.00 1.71 561,184.52 UEB 92-410A Supply of 2WD General EIB Toyota DM 228,320.00 1.71 133,489.24 Cargo Lorries UEB 92-410C Supply of 4WD Double Carbin EIB Marubeni DM 155,216.00 1.71 90,748.36 Pickups . . UEB 93-411A Supply of Untreated Wooden EIB SIPI lnt. USH 109,000,000.00 1,140.00 95,614.04 Poles UEB 93-411B Supply of Untreated Wooden EIB IPI Ltd. USH 32,000,000.00 1,140.00 28,070.18 Poles UEB 93-412 Supply of Coal Tar Creosote EIB EXIMP Agency DM 120,000.00 1.71 70,159.03 Rehabilitation of Queensway and Japanese JICA Jap-Yen 910,864,000.00 123.10 7,399.382.62 Motor Mat Substations, Kampala Grant Institutional Support Project ADB FUA 5,255,300.00 1.15 6,033,031.85 Loss Reduction Study IDB IVO FUA 854,800.00 1.15 981,301.85 I___ 32,475,157.28   Annex 2 UGANDA ELECTRICITY BOARD UNITS GENERATED, LOSSES AND SALES (GWh) & MAX DEMAND (MW) 1985-1993. 1985 1986 1987 1988 1989 1990 1991 1992 1993 January 55.3 46.2 56.9 49.7 41.5 62.2 56.2 82.6 82.5 February 53.4 47.5 45.3 49.9 45.5 52.7 50.5 75.9 77.3 March 59.0 57.2 51.0 53.0 56.4 54.6 55.6 82.8 81.7 April 53.9 55.7 49.3 50.7 54.0 66.0 51.6 85.4 77.4 May 50.3 46.6 50.3 48.8 52.5 66.4 53.2 77.1 83.1 June 47.8 44.4 51.9 4Z0 55.8 63.8 66.2 72.5 76.0 July 53.2 5Z5 54.6 48.7 577 62.7 73.1 87.5 83.9 August 53.3 54.5 53.4 49.3 57.2 62.6 74.6 8ZI 83.0 September 50.3 56.7 54.0 49.3 56.8 66.2 66.2 78.0 79.8 October 50.3 58.9 56.4 470 58.4 6Z7 77.6 877 83.2 November 49.2 54.1 49.0 35.8 60.8 574 76.0 86.8 82.1 H December 48.7 56.1 45.7 36.8 62.9 55.0 80.8 89.9 8Z3 I Hydro Electric (GWh) 624.7 635.4 617.8 566.0 659.5 736.7 781.6 993.3 977.3 2 Diesel 1.7 1.7 1.3 1.5 1.4 1.5 1.2 1.9 1.8 3 Total Generated 626.4 63ZI 619.1 5675 660.9 738.2 782.8 995.2 979.1 4 Works Units 1.0 1.0 1.0 1.0 1.1 1.4 1.5 0.64 0.59 5 Units Sent Out 625.4 636.1 618.1 566.5 659.8 736.8 781.3 994.6 978.51 6 Uganda Sales 244.1 249.1 344.1 262.7 279.0 406.5 500.0 485.0 472.6 7 Kenya Sales 215.0 281.0 170.2 110.0 157.0 166.5 150.0 289.1 258.4 8 Total Sales 459.1 530.1 514.3 372.7 436 573 650 774.1 730.98 9 Supply to Uganda 411.4 356.1 448.9 457.5 503.9 571.7 632.8 706.1 720.7 10 Losses (GIWh) 166.3 106.0 103.8 193.8 223.8 163.8 131.3 220.5 247.5 Losses (%) 27 17 17 34 34 22 17 22 25 12 Maximum Demand (MW) 110.6 IOZ4 103.6 94.6 110.8 122.8 136.2 151 15Z2 13 Load Factor 64.5% 6Z5% 68.1% 68.3% 67.9% 68.5% 65.5% 75.1% 71.0%   53 Annex 3 PROJECT COST AS OF JUNE 30, 1994 FC LC Total US$ US$ US$ OWEN FALLS POWER STATION A) civil works Underwater inspection & repairs (001) 5,906,434 245,036 6,151,470 Power station repairs (002) 2,585,996 216,027 2,802,023 Re-waterproofing of station roofs (003) 524,058 11,567 535,625 Sub-Total 9,016,488 472,630 9,489,118 B) equipment Dam gate equipment (021) 1,434,528 7,940 1,442,468 Transformers & ancillary equipment(024) 245,645 0 245,645 Cables & accessories (025) 1,402,280 1,306 1,403,586 Switchgear & substation equipment(026) 511,197 80,193 591,390 Intake & draft tube gates (027) 2,117,464 0 2,117,464 Inspection for rehab of transformers(030) 31,579 0 31,579 Consultants' houses (028) 237,485 0 237,485 Consultants' vehicles (029) 122,651 1,765 124,416 Sub-total 6,102,829 91,204 6,194,033 Owen Falls turbines & generators (023) 22,857,194 0 22,857,194 Supervising consultants (055) 2,357,900 0 2,357,900 Total Owen Falls Rehabilitation IDAfCDC/ODA 40,334,411 563,834 40,898,245  54 Annex 3 TRANSMISSION & DISTR. EQUIP. FC US$ LC US$ Total US$ Radio communication equipment(l04) 631,524 9,913 641,438 Power transformers (201) 1,147,905 0 1,147,905 Distribution transformers (202) 2,419,353 0 2,419,353 Cables & accessories (203) 1,586,986 0 1,586,986 Overhead line equipment (204) 510,032 0 510,032 Distribution pillars (205) 1,664,542 0 1,664,542 Tools and test equipment (206) 703,758 0 703,758 Automotive Workshop tools & equip(207) 146,231 0 146,231 Transformer repair materials (209) 16,826 0 16,826 Distribution transformers (230 A 1864) 292,708 0 292,708 Radio transceiver sets (230 A 1866) 39,415 0 39,415 Circuit breakers (231) 157,587 0 157,587 HV & LV overhead lines (236) 1,687,533 48,923 1,736,456 Landrover repairs (208B) 118,352 0 118,352 pecialized vehicles (208C) 1,908,713 28,750 1,937,463 Specialized vehicles (208D) 304,640 0 304,640 Specialized vehicles (208E) 114,692 0 114,692 Suzuki vehicles (208A) 89,121 971 90,092 Substations and accessories (401) 10,491,433 0 10,491,433 Pole Plant Refurbishment (238) 60,026 0 60,026 Exchange Difference Gain (406) 0 0 0 GEC Meters 52,930 0 52,930 Sub-Total 24,144,307 88,557 24,232,864 OFFICE EQUIP & BILLING COMPUTER Photocopy machine (230 A 1867) 11,014 0 11,014 Airconditioners(230A 1868) 13,036 0 13,036 Emergency items (230 A 1869) 1,720,077 0 1,720,077 Office equipment (230 A 1870) 262,189 0 262,189 Billing Computer (235) 663,912 0 663,912 Sub Total 2,670,228 0 2,670,228  55 Annex 3 ENGINEERING & SUPERVISION T & D Consultant main contact (041) 1,221,661 0 1,221,661 emergency items (042) 107,030 0 107,030 Tender docs revision (043) 83,242 0 83,242 civil works attachment (044) 36,270 0 36,270 additional services SCL (045) 99,320 0 99,320 supervision substations (049) 2,009,379 0 2,009,379 additional services (050) 245,058 0 245,058 supervision SCADA (051) 384,572 0 384,572 additional services amendment no. 8 243,592 0 243,592 Sub-Total 4,430,124 0 4,430,124 STUDIES FC US $ LC US $ Total US $ Kampala rehabilitation study (046) 285,818 0 285,818 Priortization study (047) 89,491 0 89,491 Western line study (048) 536,617 0 536,617 Accounting study (056) 111,262 0 111,262 Man power study (057) 150,435 0 150,435 Billing and collection study (058) 186,029 0 186,029 Tariff study (061) 190,663 0 190,663 National electrification study (062) 505,764 0 505,764 Consulting Services/Amendment 8 (053) 112,312 0 112,312 System analyst salary 247,466 0 247,466 Passages for Experts 38,131 0 38,131 Sub-Total 2,453,988 0 2,453,988 STAFF TRAINING (237) 982,294 0 982,294 POWER III PREPARATION Owen Falls extension study (060) 3,494,391 0 3,494,391 Power III Preliminary Expenses 165,756 2,034 167,790 Sub-Total 3,660,147 2,034 3,662,181 UEB Staff salaries & wages, stationery etc. 0 1,440,967 1,440,967 Interest during construction 18,287,843 0 18,287,843 TOTAL UEB COMPONENTS 96,963,342 2,095,392 99,058,734 TECHNICAL ASSISTANCE TO MINISTRY 2,953,218 0 2,953,218 POWER II IDA/CDC/UEB/ODA 99,916,560 2,095,392 102,011,952  56 Annex 3 OTHER COMPONENTS UP TO DEC. 1993: SCADA (239) (NDF) 5,040,684 4,779 5,045,463 PLC (403) (NORAD) 1,831,542 0 1,831,542 TOTAL POWER II 106,788,786 2,100,171 108,888,957  57 Annex 3 UGANDA ELECTRICITY BOARD POWER II PROJECT STATEMENT OF DISBURSEMENT OF FUNDS AS AT 30 JUNE, 1994 SOURCE OF FUNDS CONTRIBUTORS Total Budget Note 1994 1992 ('000) US$ '000 US$ '000 International Development Association (IDA) SDR 29,500 US$ 868 40,168 32,478 Commonwealth Development Corporation (CDC) GBP 9,601 16,277 16,157 CDC Interest Income 2 Overseas Development Administration (ODA) GBP 16,460 27,156 23,369 Uganda Electricity Board US$ 17,200 4,156 2,508 Nordic Development Fund (NDF) SDR 4,000 5,041 4,105 Norwegian Agency for Development Cooperation (NORAD) NOK 16,500 1,832 1,832 Total Contribution 1 94,632 80,449 OTHER SOURCES: Creditors 2 14,256 20,049 Total Funds Disbursed 108,888 100,498 EXPENDITURE Work-in-progress expenditure 3 108,888 98,498 LOAN REPAYMENT - Commonwealth Development Corporation Total Expenditure 108,888 98,498 Balance at Bank 4 143 2,000  58 Annex 3 UGANDA ELECTRICITY BOARD - POWER II PROJECT STATEMENT OF DISBURSEMENT OF FUNDS AS AT 30 JUNE, 1994 NOTES TO THE STATEMENT - 30 JUNE, 1994 2. CREDITORS 1994 1992 US$ '000 US$ '000 CDC - accrued commitment, legal and negotiation fees 1,798 261 Uganda Govemment - loan interest accrued (IDA) 12,458 9,468 Overseas suppliers (letters of credit) - 10,314 Sundry creditors - 6 Sub-Total 14,256 20,049 3. WORK-IN-PROGRESS EXPENDITURE Owen Falls Dam 38,541 33,576 Transmission and distribution 33,780 35,276 Engineering and supervision 3,580 3,580 Studies and training 9,853 8,318 Technical assistance to Ministry of Energy 2,953 2,853 Commitment fees (CDC) 623 621 Negotiation and legal fees (CDC) 38 38 Interest - IDA Uganda Electricity Board 7,013 5,945 - Ministry of Energy 1,139 752 Interest - CDC 5,081 3,547 Interest - ODA 3,898 2,599 Bank charges - IDA Special Account 67 54 Bank charges - Barclays Bank 21 21 Power III preliminary expenses 168 167 Stationery and sundry expenses 123 118 Rehabilitation allowance 459 303 Medical expenses 49 34 Senior Staff salaries 152 100 Wages (Junior and Intermediate staff) 657 424 Loan charges NDF 44 44 Interest NDF 363 128 Experts Salaries 248 0 Experts Passages 38 0 Sub-Total 108,888 98,498 4. BALANCE AT BANK Citibank New York (IDA Account) 0 (53) Barclays Bank PLC, London (CDC Account) 0 410 Standard Chartered Bank Uganda Limited (CDC) 143 1,643 Sub-Total 143 2,000  PROJECT COMPLETION REPORT UGANDA SECOND POWER PROJECT (CREDIT 1560-UG) PART III: STATISTICAL AND OTHER PROJECT INFORMATION   61 UGANDA SECOND POWER PROJECT CREDIT 1560-UG PART III: STATISTICAL AND OTHER PROJECT INFORMATION Table 1. Related Bank Group Loans and Credits Amount Loanl (VS$ Tear of Credit Tftfe miflion) SPurpose Approvaf Status Expansion and improvement of Loan 0279-UG 8.4 transmission and distribution 1961 Closed to UEB system and construction of small hydroelectric and diesel plants. To finance the importation of Credit 1252-UG agricultural inputs, spare parts (Second 70 and raw materials for industry 1982 Closed Reconstruction and transport and other largely Program Project) non-capital needs of high economic priority Credit 1434-UG To assist the Government to (Second Technical 15.0 address some of the major 1984 Closed Assistance) weaknesses in its capacity to manage and rehabilitate the economy Credit 1561-UG To assist in the promotion of (Petroleum 5.1 hydrocarbon exploration by the 1985 Closed Exploration oil industry; and strengthen Promotion) GSMD in the administration and supervision of exploration promotion and development of petroleum resources To continue with the program of Credit 2268-IJG rehabilitation of the power (Third Power 125 system begun under the Second 1991 Ongoing Project)) Power Project, develop Uganda's hydro resources, and expand the transmission and distribution system to provide reliable and least-cost supplies of electricity.  62 Table 2. Project Timetable Steps In Pro0 fr7 ~ct Cyc q'(a 0t nnecf4vate Ac 0Sltua(:(Date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . :. . .:::::::::: Date of first presentation to Obtober 1982 IDA Preparation mission January 1984 Appraisal Mission January 1984 July 1984 Credit Negotiation October 1984 February 1985 Board Approval December 1984 March 19, 1985 Signing May, 30, 1985 Effectiveness March 1985 June 26, 1986 Project Completion December31, 1989 19971J Credit Closing June 30, 1990 December 31, 1993 1/ The IDA-financed transmission and distribution rehabilitation is expected to be completed in March 1995, while the ODA-financed Owen Falls Rehabilitation is expected to be completed in early 1997.  63 Table 3. Credit Disbursements Cumulative Estimated and Actual IOA fisca(Tear andSemester Cumu(ative Cumurative A ctua( as Percent Dis6ursements Dis6ursements ofAlppraisaf lAppraisafEstimate lctuaIs {Estimate VS$ 'VEm((ion) VS$ EQ(mifrton) FY86 December 31, 1985 3.5 0 0 June 30, 1986 8.5 0 0 FY87 December 31, 1986 16.5 0 0 June 30, 1987 23.5 2.6 11 % FY88 December 31, 1987 25.5 2.8 11% June 30, 1988 27.5 3.3 12 % FY89 December 31, 1988 28.0 3.9 14 % June 30, 1989 28.4 5.7 20 % FY90 December 31, 1989 28.7 8.3 29% June 30, 1990 28.8 11.6 40 % FY91 December 31, 1990 0 19.4 67 % June 30, 1991 0 24.0 83 % FY92 December 31, 1991 0 29.9 104 % June 30, 1992 0 30.8 107 % FY93 December 31, 1992 0 31.7 110 % June 30, 1993 0 36.2 126 % FY94 December 31, 1993 0 39.5 137 % June 30, 1994 0 40.2 140 % Note: The last disbursement took place on April 20, 1994.  64 4. Project Implementation Table 4.1 Contract Completion Dates OWEN FALLS POWER STATION A) Civil works Underwater inspection & repairs (001) Sept 1990 Power station repairs (002) June 1990 Re-waterproofing of station roofs (003) Sept 1988 B) Equipment Dam gate equipment (021) Oct 1992 Transformers & ancilliary equipment (024) Aug 1993 Cables & accessories (025) Not yet fully completed Switchgear & substation equipment (026) Not yet fully completed Inspection for rehab of transformers (030) Apr 1991 Intake and Draft Tube gates (027) Consultants' houses (028) 1989 Consultants' vehicles (029) 1989 C) Turbine & generator rehab & uprating (023) 1st Unit June 1991 2nd Unit July 1991 3rd Unit Sep 1991 4th Unit Apr 1992 5th Unit Feb 1993 6th Unit Nov 1993 7th Unit Jul 1994 8th Unit Jan 1995 9th Unit Jul 1995 10th Unit Jan 1996 Upgrade of 2 units Jan 1997 TRANSMISSION & DISTRIBUTION EQUIPMENT Radio conumunication equipment (104) May 1991 Power transformers (201) May 1992 Distribution transformers (202) May 1992 MV & LV cables & accessories (203) Oct 1990 Overhead line equipment (204) Mar 1992 Distribution pillars (205) Oct 1990 Tools and test equipment (206) Not Completed Automotive Workshop tools & equipment (207) Oct 1990 Transformer repair materials (209) Jun 1993 Distribution transformers (230 A 1864) Oct 1990 Radio tranceiver sets (230 A 1866) Oct 1990 Circuit breakers (231) 1990 HV & LV overhead lines Kampala (302) Oct 1993 Landrover spares (208B) 1991 Specialized vechicles (208C) 1991 Specialized vechicles (208D) 1991 Specialized vechicles (208E) 1991 Suzuki vechicles (208A) 1991 Substations and accessories (401) Sept 1994 SCADA & PLC end 1994 Photocopy machine (230 A 1867) May 1990 Air conditioners (230 A 1868) Sep 1990 Emergency items distribution (230 A 1869) Feb 1990 Office equipment (230 A 1870) Jun 1990 Billing computer (235) May 1990 Source: UEB  65 Table 4.2. Studies Project Component/Contract Compretion (Date Kampala network rehabilitation study (046) Nov 1990 Prioritization study (047) Aug 1989 Western line study (048) Dec 1991 Accounting study (056) Oct 1990 Billing and collection study (058) 1987 Stores & workshop study 1987 Man power study (060) 1990 Tariff study (061) Aug 1990 National electrification study (062) Feb 1993 SCADA study Dec 1992 Owen Falls extension study (060) 1992 Source: UEB  Table 4.3. Comparison of UEB's Selected Indicators 11986 198788 1989 990 199 1991993 ______ _::_:_::_S__ Actual SAP.1 AetUaI :S SAA Actl : SAR ' ACual4 SAR ActUal SAR ' ACtu:l ACtu : AtUal... Installed capaC;tY at OWen Falls hydroplant (MW)1' 156 150 162 150 168 150 174 150 180 150 180 159 162 168 Peak Demand (MW) I --I 133 107 136 104 1481 95 156 111 164 123 1741 136 151 157 Net Generation I I I (Gwh) 660 636 692 618 766 566 818 660 873 737 926 781 995 978 Sales (GWh) 597 626 514 6931 373 7391 436 788 572 83-5 1 648 774 731 Transmission and I I t I I distribution lossCsi' (% of I I I UgandaSupply) 14 1 30 12 1 24 11 1 43 10 1 45 n/a 29 n/a 1 21 31 34 Number of connections IT ('000) 92.8 80.8 + 95.8 1 103.9 1 114.8 110.8 116.9 Number of employees 1 I('