Sri Lanka - Power Distribution and Transmission Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. 15413 IMPLEMENTATION COMPLETION REPORT SRI LANKA POWER DISTRIBUTION AND TRANSMISSION PROJECT (Credit 1933-CE) March 18, 1996 Energy and Project Finance Division Country Department I South Asia Region 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 = SL Rupees (SLRs) Appraisal year 1988 : US$1 = SLRs 32.0 Intervening year 1991 US$1 = SLRs 40.1 Completion year 1994 US$1 = SLRs 50.4 MEASURES AND EQUIVALENTS 1 kilometer (km) = 0.6214 miles (mi) 1 meter (m) = 39.37 inches (in) 1 kilovolt (kV) = 1,000 volts (v) 1 megawatt (MW) = 1,000 kilowatts (kW) = 1,000,000 watts 1 gigawatt hour (GWh) = 1,000,000 kilowatt hours (kWh) I MVA = 1,000 kilovolt amperes I MVAR = 1,000 kilovolt amperes reactive ABBREVIATIONS AND ACRONYMS CEB - Ceylon Electricity Board EIRR - Economic Internal Rate of Return GOSL - Government of Sri Lanka GTZ - Gesellschaft fuir Technische Zusammenarbeit ICR - Implementation Completion Report IDA - International Development Association KGMP - Kalu Ganga Multipurpose Project LECO - Lanka Electricity Company Limited OECF - Overseas Economic Cooperation Fund of Japan ROR - Rate of Return SAR - Staff Appraisal Report SCADA - Supervisory Control and Data Acquisition UNDP - United Nations Development Programme wtp - willingness to pay FISCAL YEAR January 1 - December 31  FOR OFFICIAL USE ONLY IMPLEMENTATION COMPLETION REPORT SRI LANKA POWER DISTRIBUTION AND TRANSMISSION PROJECT (Credit 1933-CE) Table of Contents Page No. PREFACE EVALUATION SUMMARY . ........................................ i PART I PROJECT IMPLEMENTATION ASSESSMENT .................... 1 Project Identity and Background . ........................................ 1 A. Statement/Evaluation of Objectives. 2 Project Objectives. 2 Project Description. 2 B. Achievement of Objectives. 3 Macroeconomic Policies. 3 Sectoral Policies. 3 Financial Objectives. 4 Institutional Development Objectives. 5 Physical Objectives. 5 Economic Analysis. 5 C. Major Factors Affecting the Project. 5 Factors not generally subject to Government Control. 5 Factors generally subject to Government Control. 6 Factors generally subject to Implementing Agency Control. 6 Project Costs and Financing. 6 Project Implementation. 7 Environentv. 7 D. Project Sustainability ................. 7 E. IDA's Performance. 7 Project Identification. 7 Project Preparation. 8 Project Appraisal. 8 Project Supervision. 8 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.  F. Performance of Borrower and Beneficiary ......... ..................... 9 Project Identification, Preparation and Appraisal .9....... . . . . . . . . . . . . 9 Project Implementation .9.......................... ....... . . 9 G. Assessment of Outcome ..........................................9 H. Future Operation ........................................... 9 I. Key Lessons Learned .......................................... 10 PART II STATISTICAL ANNEXES .. 11 Table 1: Summary of Assessments ................................. 11 Table 2: Related Bank Loan and Credits ................. 12 Table 3: Project Timetable ..................................... 13 Table 4: Credit Disbursements: Cumulative Estimated and Actual .13 Table 5A: Key Indicators for Project Implementation - Distribution Works .14 Table 5B: Key Indicators for Project Implementation - Transmission Works .15 Table 6: Key Indicators for Project Operation .16 Table 7: Studies Included in Project .17 Table 8A: Project Costs .18 Table 8B: Project Financing ..................................... 18 Table 9: Economic Costs and Benefits . ............................. 19 Table 10: Status of Legal Covenants ................................ 20 Table 11: Compliance with Operational Manual Statements ..... ............ 23 Table 12: Bank Resources: Staff Inputs . ............................. 23 Table 13 Bank Resources: Missions ................................ 24 Appendices: A. Missions's Aide Memoire (September 27 - October 13, 1995) with Operational Plan . 25 B. Borrower's Evaluation .................................... 34 C. Ceylon Electricity Board's Financial Statements ......... ................ 44 D. Economic Internal Rate of Return .................................. 47 E. Changes in Project Scope .................................... 48 F. Local Authority Electricity Schemes Taken . ............................ 50 Map IBRD No. 27602  IMPLEMENTATION COMPLETION REPORT SRI LANKA POWER DISTRIBUTION AND TRANSMISSION PROJECT (Credit 1933-CE) Preface This is the Implementation Completion Report (ICR) for the Power Distribution and Transmission Project in Sri Lanka for which Cr. 1933-CE in the amount of SDR 29.2 million (US$40.5 million equivalent) was approved on June 23, 1988. The Credit was closed on December 31, 1994, as originally scheduled. Final disbursement took place on July 6, 1995, at which time a balance of SDR 15.5 million (US$21.5 million equivalent) was cancelled. Cofinancing of US$31.0 million was provided by the Overseas Economic Cooperation Fund of Japan (OECF). The ICR was prepared by Messrs. Somin Mukherji, Financial Analyst, and Mohinder Manrai, Consultant (Power Engineer), Energy and Project Finance Division, Country Department I of the South Asia Regional Office. It has been reviewed by Messrs. Per Ljung, Chief, Energy and Project Finance Division and Fakhruddin Ahmed, Project Adviser, Country Department I. Preparation of this ICR began just before IDA's completion mission (September 27 to October 13, 1995.) It is based on material in the Project file. The Borrower contributed to preparation of the ICR by preparing its own evaluation of the Project's execution; its comments on the draft ICR will be invited. OECF joined the completion mission and although they were invited to comment on the draft ICR, no comments were received to date. However, because the components which OECF financed are now scheduled for completion by July 1997, a separate evaluation for inclusion in this ICR is not expected.   IMPLEMENTATION COMPLETION REPORT SRI LANKA POWER DISTRIBUTION AND TRANSMISSION PROJECT (Credit 1933-CE) Evaluation Summary Introduction The Bank Group's involvement with Sri Lanka's power sub-sector began in 1954 when a loan (Ln. 101-CE) was made to the Government of Sri Lanka (GOSL) for the expansion of an Aberdeen-Laksapana hydroelectric scheme. Since then the Bank Group, through ten additional loans/credits, has been actively involved in providing resources needed for the development of the sub- sector in terms of capacity to meet demand at least cost, to improve the quality and reliability of supply and to encourage institutional reforms. The Project (made effective in 1988) was the tenth in the sector and is followed by one ongoing project. Prior to 1988, the Ceylon Electricity Board (CEB) was responsible for about 75% of the total electricity sales in Sri Lanka; the sale of the balance 25% was carried out by Lanka Electricity Company Limited and 212 licensees (Local Authorities). This fragmentation of responsibility for distribution was recognized as a major impediment to the efficient operation and development of the power sub-sector. Under the Ninth Power Project (Cr. 1736-CE), GOSL/CEB agreed to prepare a master plan for the development of distribution systems; the master plan included both institutional requirements to rehabilitate the systems and appropriate organizational/institutional reforms (para. 7). Consultants were appointed in October 1987, and based on their recommendations, GOSL adopted an action plan to take over all the licensees in a phased manner. In the initial phase, the plan included CEB's taking over 133 licensees, which was financed under this Project, and Lanka Electricity Company Limited taking over 23 licensees, which was financed by the Asian Development Bank (ADB). The remaining 56 licensees are being taken over by CEB under the ongoing Second Power Distribution and Transmission Project (Cr. 2297-CE). Objectives The principal objectives of the Project were to: rationalize the organization of the power distribution system; rehabilitate and expand the distribution systems managed by the licensees; reduce systems losses and improve the quality of electricity supply; implement CEB's least-cost transmission expansion program; strengthen CEB institutionally through the corporate-wide computerization of its billing system; train staff in computerized accounts and engineering; improve CEB's financial performance by reducing accounts receivable from licensees; and assist in the optimal development of the Kalu Ganga basin's land and water resources. The objectives were clear, realistic and consistent with IDA's and GOSL's strategy for the power sub-sector (paras. 3 and 4). Implementation Experience and Results The Project substantially achieved its major objectives and its overall assessment was satisfactory (para. 32). The sectoral (para. 8) and institutional objectives (para. 12) were met adequately and, on completion, the physical objectives will be met satisfactorily as well (para. 13). Through the handing over of licensees' distribution systems to CEB, the organization of the power sector has been  -ii- rationalized. Subsequently, necessary investments were made for rehabilitation and expansion of these distribution systems with adequate focus on reduction of systems losses and improvement in the quality of electricity supply. Additional transmission capacity was provided in accord with CEB's least-cost transmission expansion program. Appropriate consultancy services and training was provided to promote institutional development in certain selected areas on computerized accounts and engineering. However, during restructuring of the Project in November 1993, computerization of CEB's billing systems was taken out of the Project scope as CEB agreed to finance it out of its own resources. The original Project completion period of five years was realistic. However, due to implementation problems primarily arising out of procurement related issues, Project completion has been delayed (para. 20). The financial objective was to ensure CEB's sustainable financial viability through attainment of a satisfactory annual rate of return (ROR), while ensuring adequate cash flow so that debt service coverage is maintained at a minimum level of 1.5. Although during Project implementation (1988-1994) tariffs were increased at an annual average rate of about 16%, most of the increases occurred in FYs 93 and 94 (in aggregate, 48% for the two years). Thus, during most of the Project implementation period, CEB failed to meet the covenanted ROR target of 8%. The achievement of financial objectives was therefore partial (paras. 9-1 1). In spite of IDA's repeated reminders, GOSL/CEB did not demonstrate adequate commitment to meet the covenants satisfactorily; as a consequence, IDA decided to close the Credit without an extension (paras. 2 and 9). The key factors that affected the timely achievement of physical objectives were: (a) security considerations in the Northern Province that resulted in reduction and modification of the transmission works; processing of alternate works took time and delayed the implementation; (b) protracted procurement procedures; (c) limited work force; (d) undue priority granted to rural electrification schemes which diverted manpower resources from the Project; and (e) an exodus of qualified and experienced engineers and accountants to other countries. IDA and CEB jointly prepared the Project which was a part of CEB's least cost expansion and rehabilitation program, and their performance during the identification and preparation stages were satisfactory (paras. 26, 27 and 30). During appraisal, IDA did not fully assess the security risks in the Northern and Eastern Provinces nor the adequacy of CEB's work force to implement work related to the rehabilitation and augmentation of the distribution system. Also, the delays in procurement were not anticipated. All other factors and risks were fully assessed, and mitigating steps were included in the Project design. Overall, appraisal of the Project was satisfactory (para. 28). Satisfactory supervision of the Project was also carried out by IDA on a regular basis (para. 29). CEB's financial performance was unsatisfactory as it could not meet all the financial covenants. Its performance during implementation was therefore deficient (para. 21). The Project's estimated cost at appraisal was US$113.0 million, including contingencies, duties and taxes. Of this, the foreign exchange cost was estimated at US$61.0 million, with financing from IDA (US$36.0 million) and the Overseas Economic Cooperation Fund (US$25.0 million). Local costs, estimated at US$52.0 million were to be financed by IDA (US$4.5 million), OECF (US$6.0 million) and CEB (US$41.5 million). The Project is now expected to be completed by December 1997 compared with the appraisal target of December 1993 for completion, and closure by December 1994. On completion, the Project is estimated to cost US$75.2 million with financing by IDA of US$19.4 million and by OECF of US$20.8 million (para. 22).  -iii- Project Sustainability On completion the Project will be a part of CEB's integrated transmission and distribution system. Apart from IDA, other donors are also assisting CEB in strengthening its transmission and distribution system. Under all these projects, adequate funds for training CEB staff in major operational areas have been provided. Through significant tariff increases in FYs 93, 94 and 96, the financial health of CEB has largely been sustained. Thus, the achievements of the Project will be sustained. To ensure this, CEB has prepared a detailed Operational Plan (Appendix A) indicating how the Project will be managed in the future to maximize the benefits derived, thus ensuring Project sustainability. Summary of Findings. Future Operations, and Key Lessons Learned In this type of Project where major rehabilitation of distribution lines and substations is involved, detailed design and advance procurement actions should be undertaken during the preparation stage of the Project. Efforts should be directed towards the general development of local contractors for the erection and rehabilitation of transmission and distribution works. CEB's autonomy in terms of carrying out procurement should have been carefully evaluated, and prior agreements should have been sought with GOSL/CEB on procurement methodologies. Over the last three years, CEB has not been able to add to its generation capacity. Currently, GOSL is negotiating with independent power producers to set up power plants on a BOO/BOT' basis. In addition, CEB is also negotiating with other donors (ADB, KfW and OECF) to add to its generating capacity. Unless these plants are commissioned soon, load shedding, that has already started, could increase to serious proportions. Since CEB's institutional set up is not adequate to meet the growing demands--both in quantity and quality terms--of a rapidly expanding export industry, future assistance for the sector should be appropriately oriented towards institution building, sector restructuring and enhancing the role of private enterprises in generation and distribution. A monitorable Operational Plan has been agreed with GOSL/CEB and will be reviewed by subsequent IDA missions while supervising the remaining ongoing Project with CEB (Second Power Distribution and Transmission Project, Cr. 2297-CE). Any impact evaluation of the Project should be carried out by the Operations Evaluation Department around mid-1998, when the Project would have completed one year of operation (para. 33). 1/ BOO - Build-Own-Operate BOT - Build-Own-Transfer   IMPLEMENTATION COMPLETION REPORT SRI LANKA POWER DISTRIBUTION AND TRANSMISSION PROJECT (Credit 1933-CE) PART I - PROJECT IMPLEMENTATION ASSESSMENT Eoject Identit Name Power Distribution & Transmission Project Credit 1933-CE RVP Unit South Asia Region Country Sri Lanka Sector Energy Sub-sector Power 1. Ceylon Electricity Board (CEB), a statutory organization established in 1969, is the dominant entity in Sri Lanka's power sub-sector and is responsible for generation and transmission throughout the country and for distribution in areas that are not served by the Lanka Electric Company Limited (LECO) and local authorities (licensees). During Project processing in 1988, CEB was responsible for about 75% of the total electricity sales; the sale of the balance was carried out by LECO and 212 licensees (local authorities). This fragmentation of responsibility for distribution was recognized as a major impediment to the efficient operation and development of the power sub-sector. Under the immediately preceding Credit (Ninth Power Project, Cr. 1736-CE), GOSL/CEB agreed to prepare a master plan for the development of distribution systems, including both institutional requirements to rehabilitate the systems and introduce appropriate organizational/institutional reforms. Consultants were appointed in October 1987, and based on their recommendations, GOSL adopted an action plan to take over all the licensees in a phased manner. The plan included CEB's taking over of 133 licensees, which was financed under this Project, and LECO taking over 23 licensees which was financed by the Asian Development Bank (ADB). The 56 remaining licensees are being taken over by CEB with financial assistance provided under the ongoing Second Power Distribution and Transmission Project (Cr. 2297- CE). 2. The Project covered a five-year time slice of CEB's investment plan. It was appraised in February 1988 and the Credit was approved by IDA's Board in June 1988. The Credit and Project Agreements were signed in August 1988 and declared effective in November 1988. The Project was originally scheduled to be closed by December 31, 1994. Following a mid-term review in October 1993, a two-year extension along with inclusion of a Supervisory Control and Data Acquisition (SCADA) system was approved in November 1993; this was contingent upon GOSL/CEB's compliance with an agreed, dated action plan that included agreed target dates for submission of FY92 audited accounts and various procurement related activities. CEB was also required to demonstrate its commitment to meet the agreed rate of return covenant. GOSL/CEB's failure to adhere to the action plan led to project closure, as originally scheduled, in December 1994 (para. 9). Cofinancing of US$31.0 million equivalent  was provided by the Overseas Economic Cooperation Fund of Japan (OECF) to finance various 1 32-kV transmission works (para. 13). A. Statement/Evaluation of Objectives 3. Project Objectives: The principal objectives of the Project were to: rationalize the organization of the power distribution system; rehabilitate and expand the distribution system managed by the licensees; reduce systems losses and improve the quality of electricity supply; implement CEB's least-cost transmission expansion program; strengthen CEB institutionally through the corporate-wide computerization of its billing system; train staff in computerized accounts and engineering; improve CEB's financial performance by reducing accounts receivable from licensees; and assist in the optimal development of the Kalu Ganga basin's land and water resources. Based on the findings of the mid-term review in October 1993, the Project was restructured and IDA tentatively agreed to finance a SCADA System (para. 2). However, this component never materialized due to procurement delays and closure of the Credit. Also, during the mid-term review mission, CEB agreed to finance from its own resources, instead of from the Credit proceeds, the procurement of a decentralized billing system and cost of local construction contractors; the restructured Project reflected these changes (paras. 22 and 23).2 4. The power distribution component of the Project was complimentary to the Ninth Power Project (Cr. 1736-CE) and in effect extended the geographic coverage of CEB's distribution network. The transmission component was part of CEB's least-cost transmission investment program, while the feasibility study for the Kalu Ganga Multipurpose Project (KGMP) facilitated a change in design from a reservoir type multipurpose project to a run-of-the-river type power project in one of the country's major river basins. The consultancy studies were aimed at institutional building efforts with special emphasis in assisting CEB in the procurement processing for the Project's major investment components. The Project's objectives were clear, realistic and consistent with IDA's strategy for Sri Lanka's power sub-sector. These were also consistent with GOSL's energy strategy which included, inter alia, improving the quality and reliability of electricity supply and efficiency in the operation of the power system. The Project was well designed to meet these objectives and was a part of CEB's least-cost investment program; as such, it was not complex or demanding for CEB. As a condition of Credit effectiveness, GOSL was required to promulgate its legislation that enabled CEB to take over the licensees. There was no other risk perceived that could adversely effect project effectiveness. 5. Project Description: In order to achieve the above objectives, the following components were included under the Project: (a) a five-year time slice of CEB's expenditures to rehabilitate, develop, and expand distribution systems to be taken over from selected licensees; (b) the construction of about 230 km of 132-kV transmission lines, the reconductoring of about 150 km of 132-kV transmission lines, and the construction and augmentation of related substations; 2/ Changes in Project scope are detailed in Appendix E.  - 3 - (c) consulting services to: (i) develop a decentralized, computerized billing system and a management information system (MIS); (ii) assist CEB in the preparation of the detailed specifications and design of the 132-kV transmission systems3 in (b) above and preparation of bidding documents for major transmission contracts; (iii) assist CEB in carrying out a tariff study; (iv) assist in the development of a training program for middle level technical officers; (v) assist in the establishment of a consumer relations unit; and (vi) assist in monitoring the continued implementation of CEB's new organizational structure; and (d) a feasibility study for the KGMP. B. Achievement of Objectives 6. Macroeconomic Policies: The Project design did not envisage any macroeconomic policy improvement measures. However, sectoral policies aimed at overall improvement of the sector were addressed and are discussed below. 7. Sectoral Policies: A major issue that impeded the sector's development and efficient operation was the fragmentation of responsibility for the electricity supply among CEB, LECO and the local authorities (licensees). Most of the licensees were inefficient and faced serious problems including: (a) high systems losses (averaging about 25%), (b) unreliable, poor quality and deteriorating supply, (c) high accounts payable to CEB (averaging about 5.5 months' billing in 1987), (d) long delays in connecting new consumers, and (e) shortages of competent staff.4 This was a major sectoral issue and GOSL was seriously considering the need for rationalization of the power distribution system. The Project addressed this sectoral issue by facilitating the gradual takeover of these licensees (para. 1). In addition, the lack of detailed knowledge of the country's hydropotential and its development was a major hindrance to the development of hydropower in Sri Lanka. This was addressed by carrying out a Master Plan Study in April 1986 from financing made available through the German Agency for Technical Cooperation (GTZ)5. The Master Plan Study was complemented by a pre-feasibility study on the KGMP financed by UNDP and executed by IDA. Thereafter, the feasibility study of the Kukule hydropower project (a component of the KGMP) was carried out through finances made available under the Project; based on the findings of this report, construction of the Kukule hydropower project is now being financed by OECF. The Project also assisted CEB in implementation of its least-cost transmission expansion plan. And, finally, the Project addressed a major issue of CEB's institutional weaknesses through various studies and technical assistance. 8. Overall, the sectoral policy objectives were satisfactorily achieved. With a far more rationalized distribution system in operation now, losses in the past licensees' areas have reduced from an average of 25% in 1988 to an average of 18.3% at the end of 1994. However, the takeover of 3/ The scope of the transmission works was subsequently changed (para. 23) 4/ At the time of project preparation CEB was responsible for about 75% of total electricity sales, while LECO and the licensees were responsible for the balance of 25%. 5/ Gesellschaft fur Technische Zusammenarbeit  -4- licensees distribution resulted in an increase in CEB overall systems losses from 16.4% in FY85 to 17.8% in FY93 and 18.3% in FY94.6 Power generation, though not included within the scope of the Project, continues to be poorly managed while the absence of transparent regulatory and contractual frameworks' has resulted in limited progress in attracting Independent Power Producers. 9. Financial Objectives: The financial objectives were to ensure CEB's continued financial viability through attainment of a satisfactory ROR of 8 % and an adequate cash flow so that debt service coverage ratio was maintained at a minimum level of 1.5. Although during Project implementation (1989-1994) tariffs were increased at an annual average rate of about 16% (from SLRs 1.66/kWh to SLRs 3.44/kWh), most of the increase occurred in FYs 93 and 94 (in aggregate 48 % for the two years). Thus, during most of the project implementation period, CEB failed to meet the covenanted ROR target of 8 %. In short, the major reasons for CEB's non-compliance with the ROR covenant are as follows: (a) inadequate tariff increases; (b) increasing system losses; (c) GOSL's decision in May 1994 to roll back tariffs to the pre-February 1994 levels for the first 0-100 kWh domestic consumption block; this block accounted for about 17% of the overall sales. With this adjustment, the tariff for the above block is only SLRs 1.62/kWh (US$ 0.03/kWh) and is about 47% of the average revenue rate; and (d) abolition of a fuel surcharge in effect from February 1994. Lack of commitment on GOSL/CEB's part to comply with the agreed covenants and with the agreed action plan (para. 2) led to the Credit's closure without further consideration of the two-year extension which had been approved conditionally. More recently, however, CEB's finalized FY94 accounts indicate that its ROR attained at the end of 1994 was close to the agreed target of 8.0%;' in comparison, the RORs attained for FYs 92 and 93 were 4.1 % and 4.6% respectively. In January 1996, CEB implemented another tariff increase of about 10% which should ensure that it continues to meet the 8% ROR target. CEB has generally been in compliance with the debt service coverage ratio covenant. A comparison of CEB's financial statements between appraisal estimates and actuals is provided in Appendix C. 10. As of the end of December 1994, CEB's total receivables were satisfactory and were at SLRs 2,979 million or at a level of 2.6 months of annual electricity sales (against a target level of 3 months). However, the receivables from the low voltage private and government consumers were at a level of 4.5 months and were unsatisfactory. CEB will continue to address this issue and necessary follow-up will be carried out through close monitoring and supervision of the ongoing project (Cr. 2297- CE). 11. CEB was consistently late in submitting its annual audit reports and audited accounts; the audit reports for FYs 92 and 93 were late by eleven months (para. 19). Apart from delays in finalization of CEB's accounts, these delays have also been caused at the Auditor General's (CEB's auditors) office. However, with the submission of the reports for FY94 in January 1996, the situation has improved considerably. Thus, the overall financial objectives were partially met. 6/ These are based on FY93 (audited) and FY94 (pre-audited) statements. More recently, recalculations made (because of faulty meter readings) indicate the actuals to be marginally higher (Part II, Table 6, No. 9). 7/ A study to examine the legal and regulatory framework and policy initiatives required to promote private sector participation in power sector development is in progress now; this is being financed under Japanese Grant Fund No. 21361. 8/ The actual ROR for 1994 was 7.9%.  12. Institutional DeveloRment Objectives: CEB's capability to plan, design, construct and maintain its sub-transmission and distribution system inproved significantly under this Project. The preparation of the distribution 1986 Master Plan (para. 7), helped CEB take over the operations of licensees in a smooth manner. During the takeover of 133 licensees under the Project, more than 2,000 staff of the local authorities were affected. Of this, about 60% were absorbed in CEB after necessary screening/tests and training, and the balance opted to retire with pension benefits under Local Government Pension Schemes. This transition process was carried out smoothly. Thus, the achievement of institutional development objectives was substantial and satisfactory. 13. Physical Objectives: CEB carried out a detailed survey and used a computer aided design package to identify reinforcement and expansion requirements of the licensees' distribution systems. The key indicators for Project implementation on appraisal estimates, detailed survey, design estimates and expected achievements on completion for the distribution components are included in Part II, Table 5A. Based on technical specifications prepared by a U.K. consultant and financed under the Credit, CEB prepared bid documents for the 132-kV transmission works for the IDA-financed components and used the services of a joint venture consultancy from Japan and Germany for the OECF- financed 132-kV transmission works. The key indicators for Project implementation of the transmission components (both IDA and OECF financed) are included in Part II, Table 5B. Overall, the Project on its completion, will achieve its physical objectives satisfactorily--albeit with significant delays. 14. It is noteworthy to mention that both the IDA-financed and the OECF-financed components underwent considerable modifications. GOSL/CEB confirmed that the works as originally appraised could not be implemented due to prevailing security reasons, and alternate works were needed to meet the growing demand; these modifications were agreed by IDA and OECF. 15. Economic Analysis: The Project was a part of CEB's least-cost expansion program, and during appraisal, the economic internal rate of return (EIRR) on CEB's investment program for generation, transmission and distribution for the period 1988-2002 was estimated at 7.7%. With actual data for the period 1988-1994, the EIRR is now estimated at 10.2%, which is higher than the appraisal estimate.9 The assumptions used for calculating the EIRR are shown in Part II, Table 9 and the calculations, in Appendix D. C. Major Factors Affecting the Project 16. Factors not generally subject to Government control: Due to security considerations in the Northern Province, the scope of the transmission works had to be modified and reduced. Processing of alternative works took time and consequently delayed Project implementation. 17. Throughout the implementation period, the exodus of qualified and experienced engineers and accountants to other countries continued. To this end, GOSL/CEB offered various incentives but the impact so far has been minimal. This adversely affected Project implementation. 2/ In addition, the SAR had also calculated the EIRR on the basis of consumer willingness to pay (wtp) for the incremental electricity sales. Because of lack of necessary information on the methodology adopted during appraisal, it was not possible to replicate the process and calculate the EIRR through a comparable assessment of wtp.  - 6 - 18. Factors generally subject to Government control: Although by statute, CEB is an autonomous body, the extent of autonomy and authority vested in CEB is quite limited. CEB enjoys limited authority for procurement of materials and supplies required for carrying out its mandate (efficient generation and supply of electricity) effectively, and currently is entitled to procure materials (or enter into turnkey contract agreements) for a threshold value of only up to SLRs 20 million'0 which is insignificant and totally inadequate for proper functioning of a modern power utility. For amounts above this threshold, various government-appointed committees and agencies are involved, and, in general, the approval process delays the entire implementation process. 19. Throughout most of the implementation period, CEB was not in compliance with a major financial covenant. Tariff increases (that are subject to governmental approval) were inadequate and delayed; this resulted in violation of the ROR covenant during the 1988-93 period. However, following major increases in FYs 93 and 94, CEB is now basically meeting the 8% ROR target. In addition, CEB has consistently failed to submit its audited financial statements in a timely manner; CEB's audits are carried out by the Auditor General's (AG) office and delays in the AG's office have contributed to the overall delays in submission of audit reports (para. 11). These factors have adversely affected compliance with the financial objectives of the Project. More recently, however, the ROR has improved, and with additional staff recruited at the AG's office, delays in submission of audited accounts have also reduced significantly. 20. Factors generallv subiect to implementing agencv control: Implementation of distribution works has been poor; overall implementation has been only 32% as of August 1995 as compared to appraisal estimates of 100% by the end of December 1993. The delays were primarily due to: (a) protracted procurement procedures including delays in preparation of bid documents; (b) poor inventory management; (c) limited construction work force; though efforts were made to engage local contractors, only a few had the necessary equipment and transportation arrangements; (d) priority given by CEB to expansion and erection of rural electrification schemes instead of rehabilitation of existing distribution networks; and (e) resistance from consumers to the unplanned shutdowns enforced by CEB to construct and rehabilitate the lines and substations. Implementation of the transmission works (including construction of eight kIn of 132-kV loop line and the construction of a 132-kV substation at Chilaw) were delayed because of delays in land acquisition. 21. The above factors adversely affected smooth implementation of the Project. 22. Proiect Costs and Financing: Based on early 1988 prices, the Project's estimated cost at appraisal was US$113.0 million, including contingencies, duties and taxes. Of this, the foreign cost was estimated at US$61.0 million, with financing from IDA (US$36.0 million) and OECF (US$25.0 million); and the local cost was estimated at US$52.0 million, with financing from IDA (US$4.5 million equivalent), OECF (US$6.0 million equivalent) and CEB (US$41.5 million equivalent). On completion in December 1997, the total cost of the Project, as revised (para. 3), is now estimated to be US$75.2 million, with the foreign exchange cost being US$37.6 million. The considerable savings generated were primarily due to: (a) appreciation of SDR against US$, and (b) lower bid prices than appraisal estimates. The original and final Project costs and financing plan are shown in Part II, Tables 8A and 8B. 10/ At IDA's persistent request, in July 1994, GOSL enhanced CEB's authority and the threshold was increased from SLRs. 20 million to SLRs. 100 million, i.e., about US$2.0 million equivalent (para. 31).  23. Project Implementation: During negotiations it was agreed that the Project would be completed by December 31, 1993, and the Project Closing Date was established one year later. Due to civil disturbances in the Mannar area, IDA agreed in September 1991 to GOSL/CEB's request to modify the scope of the Project (para. 3). The following modifications were agreed upon: the planned construction of the 132-kV transmission line between Anuradpura-Mannar with a new 132-kV substation at Mannar were replaced by the construction of a new substation at Chilaw (including eight km of loop line) and the augmentation of two substations at Ratmalana and Pannipitiya. Subsequently, following the mid-term review of October 1993, IDA agreed to: (a) restructure the Project by including financing of a SCADA system from expected savings (paras. 3 and 22), and (b) extend the Credit Closing Date by two years (until the end of December 1996). These agreements were however contingent upon GOSL/CEB's strict adherence to a dated action plan as agreed with IDA. Failure on GOSL/CEB's part to comply with the agreed action plan resulted in Project closure on December 31, 1994 (para. 2). The estimated and actual disbursements are shown in Part II, Table 4. Disbursements of SDR 13.7 million (US$19.4 million equivalent) were made until July 6, 1995, and an outstanding balance of SDR 15.5 million (US$21.5 million equivalent) was cancelled. The main reasons for these cancellations were: (a) appreciation of SDR against US$; (b) lower bid prices than appraisal estimates; and (c) GOSL/CEB's inability to adhere to the agreed action plan. 24. Environment: The Project's direct adverse impact was limited to construction of new lines and sub-stations. The ecological impact of the distribution lines was regulated by Sri Lanka's existing laws, including the Electricity Act, the Flora and Fauna Act, and the Forestry Ordinance. These laws adequately regulated any adverse ecological impact from the Project. On the other hand, the Project had a positive impact by providing a higher quality of life by replacing kerosene lamps with electricity, which is efficient, clean and relatively safe compared to kerosene lamps. D. Project Sustainability 25. On completion (expected in July 1997), the Project will be a part of CEB's integrated transmission and distribution system. A follow-up Project" was approved by IDA to strengthen the transmission and distribution system of CEB even further. In addition, other donors are also providing assistance to CEB. Under all these projects, substantial funds for training in all spheres of CEB's operations have been provided. With CEB's improving financial performance and continued focus on providing appropriate training to its staff, the major objectives of the Project will be sustained. The detailed Operational Plan that CEB has prepared will ensure future sustainability of the Project (Annex 1 of Appendix A). E. IDA's Performance 26. Project Identification: The Project was identified in 1987 to complement the Ninth Power Project (Cr. 1736-CE) which addressed energy conservation and resource use efficiency issues through the reduction of systems losses in CEB's distribution system. In addition, the Project provided necessary support to GOSL's reform plans in taking over 133 poorly performing licensees by CEB. This is 11/ Cr. 2297, refer Part II, Table 2.  -8 - consistent with the Bank's and GOSL's strategy for the power sub-sector, and IDA's role in this regard was satisfactory. 27. Project Preparation: IDA assisted CEB in the preparation of the Project and identified distinct components keeping in view GOSL's reform objectives for the sector, CEB's least-cost expansion plan, and IDA's strategy for the sub-sector's development. All technical, financial, economic, institutional and environmental aspects were reviewed carefully and included in the Project scope wherever necessary. The performance of IDA in Project preparation was satisfactory. 28. Project Appraisal: Pre-appraisal and appraisal of the Project was carried out during December 1987 - February 1988 by two economists, a financial analyst, a power engineer and an operations assistant; most of the technical issues were addressed in the earlier stages of Project processing. The time spent on appraisal was appropriate and adequate. In addition to the aspects mentioned above (paras. 26, 27), IDA also reviewed the commitment of GOSL and CEB towards the Project's objectives during appraisal. CEB appointed an experienced transmission engineer as Project Manager in its transmission project unit who was directly responsible for Project implementation. The Project was a part of CEB's least-cost development program and both GOSL and CEB were fully committed to it. With a decentralized management structure that resulted from studies carried out under the sixth Power Project (Cr. 1048-CE), the capacity and capability of CEB in implementing the Project was reviewed and found to be adequate. However, the appraisal mission also concluded that CEB would require technical assistance for preparing detailed design and for training CEB staff in certain critical areas which were considered necessary to ensure Project sustainability. Necessary provisions were made in the Project for financing appropriate training measures. The lending instrument, financial package and the cofinancing arrangements (with OECF) were also appropriate. Based on experience in Sri Lanka and in the region, the implementation schedule was optimistic, especially since advance procurement actions were not taken. Except for the security situation in the Northern and Eastern Provinces, and the adequacy of CEB's work force to implement all work related to the rehabilitation and augmentation of the distribution systems, all other risks were identified during appraisal. Overall, the appraisal of the Project by IDA was satisfactory. 29. Project SuDervision: The Project was regularly supervised by IDA staff with thirteen missions fielded during the life of the Project including an in-depth, mid-term review. The skill mix and duration of the missions were adequate, and recommendations of the missions were reflected in the country implementation reviews. The Bank's Resident Mission in Sri Lanka played a key role during the missions. The supervision missions identified the implementation problems and also recommended appropriate remedial measures. To enforce the compliance with financial covenants (para. 9), remedies were sought by IDA in January 1993 through threatening suspension of disbursement for all ongoing power sector credits to Sri Lanka. As a result, major tariff increases of about 48% in two years were effected in FYs 93 and 94 (para. 9). In responding to the changed security environment in the Northern Province, IDA was flexible in changing the Project scope in September 1991. Subsequently, during the mid-term review, because of the need for a SCADA system and as a result of potential savings being available, IDA agreed to restructure the project and include financing of the SCADA system (para. 23). No significant deviations were made from the Bank's policies and procedures. Overall, Project supervision was carried out in a satisfactory manner.  - 9 - F. Performance of the Borrower and Beneficiary 30. Proiect Identification, Preparation and Appraisal: During Project identification, CEB recognized the importance of planning and design of a power distribution system. It had established a "Loss Reduction Cell" earlier which, in August 1984, was converted to a full-fledged "Distribution Development and Rehabilitation Branch." It also acquired a distribution study software package and prepared a Project Document in April 1985. Further, CEB engaged consultants to rationalize its fragmented distribution system (para. 1). The consultants' draft report formed the basis for IDA to prepare and appraise the Project to which CEB was fully committed. CEB's performance during identification, preparation and appraisal was satisfactory. 31. Project Implementation: During implementation, counterpart funds were provided by CEB in a timely manner. The training component was also properly utilized. CEB appointed competent staff to supervise and monitor the Project. However, there were frequent changes of key Project staff which disrupted Project implementation. Progress reports were prepared in a timely manner and were adequate for IDA to monitor the performance of the Project. CEB fully cooperated with IDA supervision missions. The sectoral policy issues (except in the generation area) were addressed by GOSL/CEB satisfactorily (paras. 7-8). Institutional development objectives were met substantially, and, on completion, the physical objectives will be met substantially as well (paras. 12 and 13). There were protracted delays in the evaluation of bids and award of contracts. These issues were raised repeatedly by IDA supervision missions, and GOSL/CEB was responsive partially and modified the thresholds for procurement approval (para. 18). While CEB has not been in compliance in the past with the major financial covenants (paras. 9 and 19), its performance has, of late, improved. CEB's overall performance in the implementation of the Project was deficient (para. 21). G. Assessment of Outcome 32. The Project substantially achieved its sectoral and institutional objectives. The physical objectives will also be substantially achieved on completion, but the financial objectives could not be achieved satisfactorily. With CEB's improving financial performance and continued focus on overall institutional strengthening by providing appropriate training to its staff, the overall objectives of the Project would be sustainable (para. 25). The actual total Project cost and its foreign component are within the SAR estimates. The EIRR of 10.2% is higher than the appraisal estimate (para. 15). Overall assessment of the Project is satisfactory. H. Future Operation 33. Although during appraisal an operational plan was not agreed with GOSL/CEB, such a monitorable plan was agreed during the implementation completion mission (October 1995). The plan provides for technical inputs from CEB at agreed intervals. It also addresses issues required for satisfactory future financial operation of the Project. Implementation of the plan will be monitored by IDA as a part of its supervision of the ongoing Project (Cr. 2297-CE). An impact evaluation of the Project should be carried out by the Operations Evaluation Department around mid-1998, when one year of operation after full completion of the Project will have been completed.  - 10- I. Key Lessons Learned- 34. Implementation of the Project suffered due to: (a) revisions in Project scope and design; (b) changes in the routes of the sub-transmission lines; (c) poor inventory control of materials; (d) protracted procurement procedures; (e) opposition from consumers against frequent shut-downs; (f) civil unrest initially in the whole country and later in the Northern and Eastern provinces; (g) protests from the landowners for constructing the lines across their land; and (h) delay by the contractors. The following are the key lessons learned: (i) advance procurement actions (e.g., preparation of bid documents, hiring of consultants) should be tied up with various stages of project processing. CEB staff should familiarize themselves with Bank's standard bidding documents; (ii) CEB's financial authority to handle procurement decisions (independent of GOSL's interventions) should be enhanced; (iii) during the initial stages of project preparation, comprehensive training programs with an objective of overall institutional strengthening should be developed and agreed. Thereafter, during implementation, all training activities should be regularly followed up and impact assessment carried out, both on an individual level and corporate wide; (iv) security risks should be properly evaluated and works in security prone areas should not be included in the scope of a future project; (v) efforts should be made by CEB to develop local contractors for the erection of power lines and sub-stations. Because local contractors have limited equipment and vehicles, CEB could rent out their own equipment and vehicles; and (vi) land acquisition and compensation procedures should be simplified. 35. Although, the Bank/IDA has supported GOSL/CEB through 11 power sector operations (of which 10 have been closed), CEB's system losses and accounts receivable continue to remain high and need to be addressed. While tariffs were adjusted periodically (1988, 1990, 1993 and 1994), there has been a reluctance on the part of GOSL/CEB to set the level and structure of tariffs appropriately. In view of the inadequate financial resources available for investments and a looming power crisis, GOSL is now rethinking its power sector development strategy including necessary sector reforms. In addition, GOSL is actively seeking private sector investments for commissioning new generation facilities. Indeed,' the agreements related to the first privately owned, IFC-sponsored 50 MW power plant were signed in January 1996. IDA's strategy for the sector for further assistance to Sri Lanka will be targeted towards facilitating restructuring of the sector and developing an enabling environment for entry of the private sector in power generation.  - 11 - PART n - STATISTICAL ANNEXES Table 1: Summary of A s A. Achievement of Obiectives Substantial Partal Neglitible Not Anplicable Macroeconomic Policies O O 0 (1) Sector Policies O I) 0 0 Financial Objectives O (/) 0 0 Institutional Development (V) O 0 0 Physical Objectives (/) O 0 0 Poverty Reduction 0 0 0 (/) Gender Concerns O O 0 (/) Other Social Objectives O O 0 (1) Environmental Objectives (V) O 0 0 Public Sector Management O O 0 (/) Private Sector Development O O 0 (/) Other (specify) O O 0 (/) B. Proiect Sustainabilitv Like Unlikely Uner (^/) O' 0 C. Bank Performance Sdsrv Satisfactory Defiiejn Identification O (/) 0 Preparation Assistance El (/) 0 Appraisal E (.) E Supervision E (W) El D. Borrower Performance r Satisfactory Deficient Preparation E (/) E Implementation E (/) E Covenant Compliance E E (V) Operation E E (/) (system losses/accounts receivable) E. Assessment of Outcome S ry Satisfactory Unutisfactory U E () E E  - 12 - Table 2: Related Bank Loan and Credits (from June 1980) Credit Title Purpose Year of Approval Status |Preceding Operations Sixth Power Project, Reinforcement and 1980 Closed, 3/88 Credit 1048-CE improvement of power transmission and distribution system l Seventh Power Project, To strengthen the 220-kV and 1982 Closed, 3/88 Credit 1210-CE 132-kV power transmission system Eighth Power Project, To construct an 80 MW diesel 1982 Closed, 3/86 Loan 2187-CE power station Ninth Power Project, To improve the reliability and 1986 Closed, 6/94 Credit 1736-CE quality of power supply l Following Operations l Second Power Distribution and To complete the take over and 1991 Closing date Transmission Project, improvement of distribution scheduled 6/98 Credit 2297-CE systems of 56 licensees and strengthen the high voltage l _______________________________ system  - 13 - Table 3: Project Timetable Steps in Project Cycle | Date Planned | Date Actual/Latest Estimate Identification/Preparation September 20 - October 2, 1987 Pre-appraisal December 7 - 21, 1987 Appraisal October 1985 February 17-29, 1988 Negotiations April 20, 1988 April 20 - 22, 1988 Board Presentation June 28, 1988 June 23, 1988 Signing August 31, 1988 Effectiveness November 23, 1988 Project Completion December 31, 1993 December 31, 1996' Credit Closing December 31, 1994 December 31, 1994 'The components financed by OECF will be completed by December 1997. Following Credit closure by IDA in 12/94, other components under construction are being financed by CEB from its own resources and will be completed by 12/96. Table 4: Credit Disbursements: Cumulative Estimated and Actual (US$ Million) [ |___________ [ FY88 J FY89 | FY90 FY91 [ FY92 J FY93 j FY94 FY95 [ FY96 Appraisal 0.4 1.6 7.7 16.2 24.7 31.2 36.5 40.5 40.5 Estimate Actual 0.0 1.8 1.9 2.5 5.1 7.8 13.5 19.4 19.4 Actual as % 112.1 25.1 15.4 20.8 24.9 37.1 47.8 48.0 of Estimate Date of Final July 6, 1995 Disbursement Cancellation: SDR 15.5 million cancelled (US$21.5 million equivalent) Note: The fiscal years referred to above relate to the period July 1 - June 30  - 14 - Table 5A: Key Indicators for Project Implementation Distribution Works INDICATORS APPRAISAL DESIGN STATUS AS EXPECTED ESTIMATES ESTIMATES OF STATUS ON AUGUST PROJECT 1995 COMPLETION DECEMBER _________ _________ _________ _______ _ _________1996 A. LV Network Improvement & Expansion Construction of New LV Lines 900 km 900 km 590 km 900 km Rehabilitation of LV Lines 1500 km 1000 km 203 km 1000 km Reconductoring of LV Lines 700 km 700 km 173 km 700 km Conversion of LV Lines 500 km 304 km 500 km B. MV Network Expansion & Substations Construction of New MV Lines 600 km 600 km 145 km 600 km Augmentation of Substations 700 Nos. 47 Nos. 700 Nos. Construction of New Substations 650 Nos. 650 Nos. 248 Nos. 650 Nos. C. Service Connection Improvements Rehabilitation of Service Connections 70000 Nos. 70000 Nos. 7394 Nos. 70000 Nos. Replacement of House Service Meters 90000 Nos. 90000 Nos. 11973 Nos. 90000 Nos.  Table SB: Key Indicators for Project Implementation Transmission Works INDICATORS APPRAISAL REVISED INDICATORS STATUS ON SEPTEMBER EXPECTED COMPLETION DATE 1995 COMPLETION DATE IDA FINANCED WORKS i. 72km of 132-kV double circuit line from December 31, 1993 The following works were Anuradapura to Mannar with a new substituted in place of Mannar substation at Mannar works: i. A new 132-kV substation at Commissioned in One transformer at Chilaw with an 8km loop in line September 1 995 Ratmalana was commissioned ii. Augmentation of 132-kV Substation at Pannipitiya December 1 9, 1 995. substations at Pannipitiya and was commissioned in Balance of work on Ratmalana September 1 995 but the bays are expected by substation at Ratmalana the first week of April is still under construction 1996. OECF FINANCED WORKS i. 81km of 1 32-kV double circuit line from December 31, 1993 No change in project Contract for all the lines Originally expected to Anuradapura to Puttalam component. {i-iv) signed with an be commissioned by Indian firm in July 1995. July 1997. After ii. 62km of 1 32-kV double circuit line from - do - Construction period is signing of contract, Embilipitiya to Matara about two years the date will be iii. Loop in & out of existing Polpitiya- - do - December 1997. Anuradhapura 1 32-kV Line through Ukuwela involving 11 km of line iv. Reconductoring 22km of double circuit - do - 132-kV line from Kotugoda to Bolawatta v. 9km of 1 32-kV double circuit line from deleted on account of security Kankasanturai and Chunnakam situation vi. New 132-kV substations at Matara and Substation at Kankasanturai Contract for all the Originally expected to Kankasanturai deleted on account of security substations signed with a be commissioned by situation joint venture of South June 1997. After Korean and Chinese firms signing of the vii. Augmentation of Substations at Augmentation of Kilinochchi in June 1995. The overall contract, the revised Ukuwela, Puttalam, Embilipitiya, substation deleted due to construction period is date will be December Anuradhpura and Kilinochchi security situation about two years. 1997.  Table 6: Key Indicators in Project Operation PERFORMANCE INDICATORS TIMING COMMENTS 1. The Plant and Equipment Register is updated regularly Regularly Regularly updated 2. The Depot System Maintenance Register is updated each quarter Regularly Updated quarterly 3. Regular maintenance work of substations and transformers including scheduled Regularly Regular maintenance carried out replacement of transformer oil is carried out 4. LV and HV breakdowns in the Provinces are monitored Monthly Monitored and monthly reported 5. Training of technical staff are carried out in accordance with an agreed Training Plan As required According to CEB normal programs 6. Procurement and installation of 70, 33-kV and 4, 11 -kV import-export meters Contract already awarded. Meters are expected to be l_______________ installed by September 1996 7. Monitoring of distribution system losses at Provincial level Analysis is expected to start after installation of l______________ Import/Export meters i.e. after September 1996 I ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~0% 8. Monitoring of voltage levels of heavily loaded typical feeders in selected 40 The monitoring work started in October 1995 and will be distribution substations continued for six months and thereafter the results will be analysed before continuing the monitoring. 9. Reduce system losses by at least I % in 1994 and 1995 Annually The losses have been re-calculated by CEB after the review of incorrect meter readings. Based on revised information CEB has calculated losses at 21.46% in FY93, 18.85% in l ___________________________________________________________________ _____________ FY94, and 18.46% in FY95 (until June 1995). 10. Reduce the operations and maintenance cost, expressed as a percentage of Annually By reducing the staff and amalgamating the routine distribution capital cost distribution maintenance and rehabilitation of works, CEB is reducing operation and maintenance cost. The 0 & M cost expressed as a percentage of gross distribution fixed assets were 4.6%, 3.7%, and 3.5% in FYs 92,93 and 94 respectively. 11. Replacing of defective meters of bulk supply consumers There is an ongoing project to identify defective bulk supply meters. It is expected to check all these meters and replace l_____________ them by September 1996. 12. Sealing of metering equipment of buik supply consumers by copper seals All old and new bulk supply meters are expected to be sealed l______________ with new copper seals by September 1996.  - 17 - Table 7: Studies Induded in Project Study Purpose Status Impact Tariff and load To assist CEB in identifying The report was Tariffs were restructured management study. load management measures submitted in and increased by about and reforming its tariff December 1990 30% in July 1993. structure to better reflect the Subsequently, another cost of supplying different tariff increase of about loads. 30% was effected in February 1994. Feasibility study for To assist CEB in carrying out The report was Investment program the KGMP. the optimal development of submitted in March recommended by the plan the land and water (including 1993. is being implemented by hydroelectric) resources of the OECF. Kalu Ganga Basin. Review of CEB's To re-examine CEB's The report was Based on the organization organizational structure, to submitted in May recommendations of the structure. identify necessary changes to 1991. study, CEB reorganized support the decentralization of the unit structures of the the distribution function to the Additional General provincial division level and to Managers and the Deputy strengthen CEB's overall General Managers in April operational and financial 1991. management capacity.  - 18 - Table 8A: Project Costs Appraisal Estimate (US$M) Estimate (US$M) as of Item December 1995 Local | Foreign | Total Local | Foreign | Total _________ Costs J Costs _ Costs Costs _ 1. Distribution Rehabilitation 23.8 17.3 41.1 15.7 9.1 24.8 2. Transmission System Expansion 13.4 24.3 37.7 19.8 23.9 43.7 3. Decentralized Computer Billing 0.2 1.8 2.0 0.0 0.3 0.3 System l 4. Consultancy, Project 3.8 3.4 7.2 0.0 0.9 0.9 Administration and Training l 5. Kalu Ganga Studies 0.6 2.3 2.9 2.0 3.5 5.5 Total Baseline Cost 41.8 49.1 90.9 37.5 37.7 75.2 Physical Contingency 4.2 4.9 9.1 Price Contingency 6.0 7.0 13.0 Total Project Cost 52.1 61.0 113.0 37.5 37.7 75.2 Table 8B: Project Financing Appraisal Estimate (US$M) Estimate (US$M) as of Source December 1995 Local l Foreign | Total Local Foreign Total l Costs | Costs | | Costs Costs IDA 4.5 36.0 40.5 0.5 18.9 19.4 OECF (Japan) 6.0 25.0 31.0 2.2 18.6 20.8 CEB 41.5 0.0 41.5 35.0 0.0 35.0 Total 52.0 61.0 113.0 37.7 37.6 75.2  - 19 - Table 9: Economic Costs and Benefits Assumptions Costs Benefits 1. The Project is a part of CEB's 1. Capital investment costs for 1. Incremental revenue from sale least-cost development program generation, transmission of electricity. Actual benefits and the economic internal rate and distribution of CEB's from 1988 to 1994, which of return was calculated on the overall investment was frozen until 2024. entire investment program of program. CEB for the period 1988-1994. 2. The benefit period of the 2. Incremental operational and 2. According to the methodology program extends from 1988 to maintenance costs of used in the SAR, the 2024, when the equipment CEB's system. Actual willingness to pay (wtp) has provided under the Project is costs from 1988 to 1994, been measured in the expected to have substantially which was frozen until following manner: completed its useful life. 2024. (a) historical consumer tariffs; and 3. All cost and benefit streams have been expressed in 1988 (b) for residential and street prices using IMF deflation lighting consumers: on factors. Foreign costs have weighted average tariff rate been measured using border for incremental consumption prices. Local costs for in the respective categories, materials and equipment have and, for commercial, hotels been expressed in terms of and industrial consumers: in equivalent border prices using terms of incremental operating the standard conversion factor costs of meeting their of 0.75 and unskilled labor demands for electricity using using a factor of 0.80. auto-generators that are displaced by public supply of electricity. 4. No residual value of fixed These two approaches (a) and assets are taken into account. (b) have been adopted to calculate EIRRs. Economic Internal Rate of Return: Appraisal Estimate: 7.7% Actual: 10.2%  Table 10: Status of Legal Covenants Original Revised Covenant Fulfillment Fulfillment Agreement Section Type Status Date Date Description of Covenant Couments Credit 3.04 2 CD 12/31/88 The Borrower shall take or cause to be In compliance from July 1991. taken all measures necessary to ensure that on and after December 31, 1988 totat dues for electricity supplied by the Board shall not exceed three months billing. Credit 3.05 5 CD 10/31/89 The Borrower shall carry out by October The tariff and load management study 31, 1989 a tariff and load management was completed in December 1990 and the study and, thereafter, modify the tariffs were restructured and Board's tariffs taking into account the increased in July 1993. Another recommendations of the above study. increase in tariffs was effected in __ __ _ __ __ _ __ __ _ __ __ _ __ __ _ February 1994. Credit 3.06 2 C The Borrower shall take all necessary The ROR improved from 4.6X as of FY93 actions to enable the Board to effect to 7.9% as of FY94. adjustments in its tariffs to enable it to comply with the rate of return O I_______ covenant of the Project Agreement. Credit 3.07 12 C The Borrower shalt carry out a satisfactory program to redeploy or retire the staff of the local authority distribution systems transferred to the Board. Credit 3.08 12 C The Borrower shalL take measures for the transfer of distribution systems from the local authorities to the Board. Credit 4.01(b)(ii) 1 C The Borrower shall furnish to IDA not later than six months after the end of each fiscal year (i) an audit report on the Special Account, and (ii) a separate opinion by auditors as to whether the statements of expenditure submitted during each fiscaL year can be relied upon to support the related withdrawals. Project 4.01(b)(ii) 1 CD The Board shall submit to IDA not later Unaudited statements for FY94, due than: (a) four months after the end of end-April 95 were submitted to IDA in each year, the unaudited financial mid-May 95. The FY94 audited accounts statements for such year; and (b) ten (due end-October 1995) were submitted months after the end of each year, in January 1996, implying a delay of certified copies of its financial three months. statements.  Original Revised Covenant FulfilIment Fulfillment Agreement Section Type Status Date Date Description of Covenant Comments Project 4.02 2 C The Board shall maintain a debt service For FY94 the coverage was at 2.3. coverage of not less than 1.5. Project 4.03 2 C The Board shall, before the end of each The ROR improved from 4.6% as of FY93 fiscal year, adjust the tariffs to to 7.9% as of FY94. provide sufficient revenue to cover operating expenses including taxes, if any, and straight-line depreciation, and to provide an annual return on current vaLue of its net fixed assets in service of not less than eight percent. l Project Schedule 2 12 C The Board shaLl carry out a program to retrain those staff of the locaL authority distribution systems transferred to the Board. Project Schedule 2 5 CD 12/31/88 The Board shaLL commence by December The Board is developing a system for 31, 1988 the implementation of a decentralized billing in phases. This program for the development of a will be implemented in one province, decentralized computerized billing i.e., North-Western, by February 1996 system and upgrading of its management and in four other provinces _ information system. thereafter. The second stage, comprising five remaining provinces, will be implemented after observing the performance of the five provinces covering the first stage. Project Schedule 2 2 C 12/31/88 The Board shall take all measures As of December 31, 1994, the total necessary to ensure that on and after dues from consumers were equal to 2.5 December 31, 1988, total biLLs due from months of biltings. consumers for electricity supplied by the Board shaLl not exceed three months' billing. l Project Schedule 2 5 C For the purposes of self-insurance of One-tenth of 1% of CEB's revalued its assets, the Board shaLl, within 11 fixed assets are being deposited in months of the end of the fiscal year, the escrow account. deposit its annuaL provision to the insurance reserve in an insurance escrow account with an independent financial institution. Project ScheduLe 2 5 CD The Board shall, by October 31, 1989, The tariff and toad management study carry out a tariff and load management was completed in December 1990 and the study and, thereafter, modify the tariffs were restructured and Board's tariffs taking into account the increased in July 1993. Another recommendations of the above study. increase in tariffs was effected in February 1994.  Cont Tyes: 1. Accounts/audit S. Indigernus People 2. Fincisl perfor_ance/generate revenue froa beneficieries 9. Nnitoring, review, and reporting 3. Ftow and utilization of project funds 10. Project iept mmntation not covered by categories 1-9 4. Counterpart tunding II. Sectoral or cross-sectoral budgetary or other resource allocation 5. Nanagment aspects of the project or executing agency 12. Sectoral or cross-sectoral policy/regulatory/institutional action 6. Enviremnntal covenwnts 13 Other 7. Involuntary resettleement C a covenant complied with CD a cooplied with after delay KC = not coplied with CP = cooplied with partially Question: Is the selection of covenants appropriate? Have any proved to be ineffective or superfluous? Which, if any, additional covenants would have been useful? Answer: Selection of covenants was appropriate. No covenant was superfluous. The receivables covenant (Section 3.04 of OCA) should have provided for separate monitoring of receivables due from the goverrnent departments nd local authorities as was done under Section 3.03 of OCA of Credit 1736-Ci. Ouestion Are there any general problems or issues relating to conpliance with covenants under the project? Answer: Yes. The Audit Report has invariabty been submitted late. This is a countrywide issue. * :o..hal9133 U  - 23 - Table 11: Compliance with Operational Manual Statements There has not been any significant lack of compliance with Bank's Operational Manual statements under this project. Table 12: Bank Resources: Staff Inputs Stage of Project cycle Planned | Actual Weeks US$ Weeks US$ Preparation to appraisal N/A N/A 40.3 69.5 Appraisal N/A N/A 7.0 11.7 Negotiations through N/A N/A 7.6 13.2 Board approval Supervision N/A N/A 61.6 188.1 Completion N/A N/A 5.8 18.6 TOTAL N/A N/A 122.3 301.1 N/A - Not Available  - 24 - Table 13: Bank Resources: Missions Stage of Month/year Number Days in Specialized Performance rating Project cycle of field'" staff skills Types of persons represented Implemen- Develop- problems status impact Identification Sept-Oct 1987 6 13 ECN/EGR/FNA- OPN Pre-Appraisal Dec 1987 5 15 ECN/EGR/FNA OPN Appraisal through Feb 1988 2 13 EGR/FNA - - Board approval_______ Supervision Mar 1989 2 17 EGR/FNA 2 1 PM Sep 1989 2 l1 ECN/FNA 2 2 LC/PR Dec 1989'3 2 8 EGRIEGR - - Mar-Apr 1990 2 31 EGR/FNA 2 2 FP Oct-Nov 1990 2 21 EGR/FNA 2 2 Feb-Mar 1991 2 21 EGRIFNA 2 2 Jul-Aug 1991 2 16 EGR/FNA 2 2 PR/PM Oct-Nov 1991 2 16 EGR/FNA 2 2 May 1992 2 14 EGR/FNA 2 2 PR Dec 1992 1 7 EGR 2 2 LC/FP Oct 1993 2 17 EGR/FNA 3 2 FP/PR/PM Jul-Aug 1994 2 13 EGR/OPN U S FP/LC Apr 1995 2 13 EGR/FNA S S LC/FP/PR Completion Oct 1995 2 18 EGR/FNA Key: EGR : Power Engineer FNA : Financial Analyst ECN : Economist OPN : Operations Assistant LC : Compliance with Legal Covenants FP : Financial Performance PR : Procurement Progress PM : Project Management Performance 12/ Days spent in field are for combined missions and include time spent for other projects as well. 13/ This mission was focussed on following up with GOSL on the principal findings of the KGMP; as such there was no overall Project Supervision and Form 590 was not prepared.  - 25 - Appendix A Page 1 of 6 SRI LANKA Completion Mission, Cr. 1933-CE September 26 - October 13. 1995 Aide Memoire' 1. Introduction. An IDA power sector mission comprising Messrs. Somin Mukherji, Financial Analyst and M.P. Manrai, Power Engineer (Consultant), visited Sri Lanka during the period September 26 to October 13, 1995 to supervise and prepare the Implementation Completion Report (ICR) of Power Distribution and Transmission project, Credit 1933-CE closed on December 31, 1994. 2. The Project was co-financed by Overseas Economic Cooperation Fund of Japan (OECF) (para. 8). The mission would like to thank OECF's Colombo office for providing the mission with an opportunity to discuss various issues pertaining to Project implementation. The mission would also like to thank the officials and staff of the Ministry of Irrigation, Power and Energy (MIP&E), the Ministry of Finance (MOF), Board of Investment (BOI), Lanka Electricity Company (Pvt) Limited (LECO) and the Ceylon Electricity Board (CEB) for all the courtesies and assistance extended to the mission. The aide memoire summarizes the mission's findings and the agreements reached with the Government of Sri Lanka (GOSL) and CEB regarding the above project. The aide memoire is subject to IDA management's review and concurrence. 3. Background. A credit of SDR 29.2 million (equivalent to US$ 40.5 million) was approved by the IDA Board on June 23, 1988, and became effective on November 23, 1988. Following a mid-term review during November 1993, IDA agreed to: (i) a GOSL/CEB request to extend the Credit Closing date by two years (until December 31, 1996), and (ii) incorporate a Supervisory Control and Data Acquisition equipment (SCADA) in the Project scope subject to GOSL/CEB implementing an agreed action plan. Because GOSL/CEB did not show any commitment in implementing the above plan, IDA closed the Credit on December 31, 1994 as originally scheduled. Final disbursement took place on July 6, 1995, at which time a balance of SDR 15.5 million (US$21.5 million) equivalent was cancelled. Project Components 4. The project consisted of the following components: Distribution (Part A of Schedule 2 of the DCA): The rehabilitation and expansion of distribution systems transferred to the Board from local authorities licensees; Transmission (Part B of Schedule 2 of the DCA): The construction of about 226 km of 132-kV transmission lines, the reconductoring of about 22 km of 132-kV transmission lines and the construction and augmentation of related sub-stations; Institution (Part C of Schedule 2 of the DCA): The strengthening of the Board through: (a) the development of a decentralized computerized billing system and upgrading its management information system; 'I/ Modified version  - 26 - Appendix A Page 2 of 6 (b) the training of engineers and other staff; (c) the dissemination of power related information; and (d) improvements in the Board's organization and management. Technical Assistance (Part D of Schedule 2 of the DCA): The provision of technical assistance to the Board in: (a) the review of the detailed specifications and design of the 132-kV transmission system; (b) the review of bidding documents for major transmission contracts; and (c) improving the methodology of tariff studies and carrying out of a tariff study. Study (Part E of Schedule 2 of the DCA): the carrying out of a feasibility study for the Kalu Ganga multipurpose project. 5. Restructuring of the Project. In September 1991, GOSL/CEB requested IDA to substitute the originally appraised 72 km of 132-kV Anuradhapura-Mannar transmission line including two terminal substations with a new 132-kV substation at Chilaw including a 8 km loop transmission line and to augment the existing 132-kV transformer capacities at Ratamalana and Pannipitiya. GOSL explained that it was not possible to implement the works at Mannar due to security reasons and it was necessary to construct the alternative works to meet the growing load demand. IDA agreed to GOSL's request. The cost of the new substituted works was almost equal to the original works. 6. In November 1993, GOSL/CEB requested IDA to extend the Credit Closing date by two years and finance the SCADA equipment estimated at about US$ 11.0 million under the Credit as there were US $ savings due to favorable SDR/US$ exchange rate and also because CEB was able to get cheaper bids for distribution materials compared to the appraisal estimates. As explained above (para 3), the Credit was closed on the original Closing date of December 31, 1994. 7. Project Status Distribution. The fragmentation of responsibility for distribution amongst CEB, LECO and more than 200 licensees was a major impediment to the efficient operation of the power system. Therefore, GOSL decided that either CEB or LECO should take over the licensees in a phased manner. CEB took over all 133 licensees' distribution system as appraised. Necessary legislation for the take over was approved by GOSL in September 1988 through amendment of the Act. After a detailed survey, distribution work components were found slightly different from the appraisal estimate. Their details and indicators for their implementation are included in Annex 1-A.2 All material required for these works has been procured but the progress in physical implementation has been slow and, as of the end of August 2/ Now included in Part II, Table 5A  - 27 - Appendix A Page 3 of 6 1995, it was only 31.5 %. CEB agreed with the mission to reinforce the construction gangs and complete the entire work not later than December 31, 1996. 8. Transmission. IDA financed the construction of a new 132-kV substation at Chilaw and augmentation of 132-kV substations at Ratmalana and Pannipitiya. These works have been implemented through supply and erect type of contracts. IDA also financed the supply of materials for 8 km of 132- kV line, which was constructed by CEB through its force account. Whereas, Pannipitiya substation and 8 km of 132-kV transmission lines were commnissioned and are operational since July and September 1995, respectively, some structure and switch gear erection works are still pending at Ratmalana; in addition, some defects at Chilaw substation needs to be rectified soon. These works are expected to be completed by the end of November 1995. 9. OECF, after deleting some works from its original scope, cofinanced the following transmission works under OECF Loan SL-P21: (i) 81 km of new 132-kV double circuit (DC) line from Anuradhapura to Puttalam; (ii) 62 km of new 132-kV DC line from Embilipitiya to Matara; (iii) loop in and out of the existing 132-kV DC line from Polpitiya to Anuradhapura through Ukuwala (11 km); (iv) reconductoring of 22 km of existing 132-kV DC line between Kotugoda and Bolawatte with a higher size conductor; (v) a new 132-kV substation at Matara; and (vi) augmentation of 132-kV substations at Ukuwala, Puttalam, Embilipitiya and Anuradhapura. 10. Very recently, in June/July 1995, the contracts for the above OECF financed transmission lines have been awarded to an Indian firm (at J Yen 1041 million) and for the substations to a joint venture of firms from South Korea and China (at J Yen 624 million). The construction period for both these works is about 28 months. The implementation of these works is to be supervised by a joint venture consultancy firm from Japan and Germany. The status of implementation of the above is included in Annex 1-B.3 OECF explained that the delays were caused by the late appointment of consultants and the abnormal time taken to design the works, prepare the bidding documents, invite bids, evaluate them and finally award the contracts. OCEF agreed with the mission's view that the procurement procedures in Sri Lanka are now getting more protracted. 11. Institutional strengthening (a) Decentralized computerized billing system: During Project implementation, it was agreed that this work would be financed by CEB from its own resources (instead of being 3/ Now included in Part 1, Table 5B  - 28 - Appendix A Page 4 of 6 financed by IDA) and implemented by CEB. The system is being developed in house by CEB in three stages: I(A), I(B) and II. Under Stage I(A), the billing system will be developed and implemented in the Western-North province. In Stage I(B) this will be extended to four more provinces (Western-South, Colombo city, Central and Southern) and the Head Quarters. Under Stage II, the system will be expanded to include the remaining five provinces. On completion of all these stages, a totally integrated decentralized billing system will be in operation. A contract for Stage I(A) was awarded in October 1995; trial runs are expected by end February 1996. Stage I(B) will be completed by August 1996, CEB has allocated SLRs. 30 million for this purpose. Thereafter Stage II will be completed by June 1997 provided the functioning of Stage I is successful. Recently, CEB has placed the EDP unit under AGM (Planning). The mission was informed that a proposal has been submitted to the Board for strengthening of the Unit. The mission recommends that the proposal should be reviewed by the Board. (b) CEB, with assistance of their consultants BEI (UK), completed a training program of middle level technical officers in January 1990. The duration of the technical assistance was 3 man months at a cost of PD STG 25,800 plus SLRs. 109,500. In addition, 24 engineers and one accountant were deputed to EGAT Bangkok for training in Project Management at a cost of US$37,500. (c) BEI (UK) was retained as consultants for a period of 3 man months to strengthen CEB's consumer education unit. The cost was PD STG 20,802 plus SLRs. 132,537. The consultant's report was made available in May 1989. (d) CEB engaged EDF (France) to review its organization structure. Based on the consultants' recommendations, CEB reorganized the unit structure of AGMs and DGMs in April 1991. The consultancy cost was FF 2,557,521 plus SLRs. 657,000. 12. Technical Assistance (a) CEB engaged the services of Ewbank Preece Ltd (UK) to prepare specifications and bid documents for the 132-kV Anuradhapura-Mannar line at PD. STG. 11,920 plus SLRs. 13,190. Because the substituted Chilaw, Ratmalana, and Pannipitiya substations (para 5) were simpler in design, CEB prepared the specifications and bid documents itself and did not engage consultants. (b) CEB engaged EDF (France) to carry out a tariff study. The study report was completed in August 1990. The consultancy fee was FF 1,498,363 and SLRs.78,000. Kalu Ganga Multi-purpose Basin Study and Kukule Hydropower Project 13. CEB engaged a joint venture comprising Nippon Koei (Japan), Lahmeyer International (Germany) and Electro Watt of Switzerland for preparing a feasibility report and the bidding documents under a UNDP financed and Bank executed project. A Panel of Experts (POE) was also appointed to review the Joint Venture's work. The report and bid documents were completed in March 1993. Subsequently, OECF provided the financing for constructing the project. GOSL recently permitted CEB  - 29 - Appendix A Page 5 of 6 to short list the consultants in accord with the guidelines of OECF. CEB is now inviting proposals from the short-listed consultants. The project completion is now delayed by two years and is expected to be completed by 2002. Disbursement 14. The credit was closed on December 31, 1994. A grace period was provided for the submission of withdrawal applications against eligible expenditures incurred before December 31, 1994. Final disbursement took place on July 5, 1995, at which time an amount of SDR 13.7 million had been disbursed and the balance of SDR 15.5 million was cancelled. Amounts deposited in the special account were adjusted against withdrawal proceeds. CEB Operational Performance 15. The key project operation indicators and monitoring milestones are included in Annex-2.4 The recalculated systems losses in FY94 were 18.85% compared to 21.46% in 1993. These losses are recalculated every year by CEB based on review of complaints filed by the consumers alleging incorrect meter reading and wrong billing. Operation and maintenance cost as a percentage of gross distribution fixed assets were at 4.6%, 3.7% and 3.5% during FYs 92, 93 and 94 respectively, implying a reducing trend. CEB explained that it was trying to reduce them still further. Status of Covenants 16. Audit reports and audited accounts: The mission was handed over CEB's FY93 (due in October 1994) audit report along with its audited accounts; thereby implying a delay of eleven months. Submission of the FY92 audited accounts were also delayed by eleven months. The mission was pleased to note that owing to appropriate strengthening of the Auditor General's office, the draft FY94 audited accounts (due in October 1995) are under review now and are expected to be finalized and forwarded to IDA by end of November 1995; i.e., with a delay of about one month. This would imply a significant improvement over past performance on timely submission of audited accounts. It is expected that in the future i.e., starting in FY95, audit reports would be submitted on time. The FY94 audit report on special accounts and statement of expenditures were submitted in early July 1995, implying a delay of less than a month. 17. Compliance with financial covenants: Rate of Return (ROR): In accord with Sec. 4.03(a) of the Project Agreement, CEB is required to earn a ROR of 8% each year during the entire project implementation period. In FY93, CEB's attained ROR was 4.6%, and for FY94, this is estimated to be at 7.8%; implying non-compliance. Debt Service Coverage (D/S) Ratio: As agreed, CEB's D/S ratio is required to be not less than 1.5 times. CEB has been in compliance with this covenant; the D/S ratio for FY93 was 1.7 times while for FY94, unaudited accounts indicate this ratio to be at 2.3. The FY94 results will be verified after receipt and analysis of the audited accounts when they are made available. 18. Accounts receivable: As agreed, CEB is required to maintain its overall accounts receivable at a level of not exceeding three months' billings. As of December 1994, CEB's total accounts 4/ Now included in Part II, Table 6  - 30 - Appendix A Page 6 of 6 receivable was at 2.6 months of average monthly billings, thereby indicating compliance with the agreed covenant. 19. The status of compliance with covenants is included in Annex-3.5 Operation Plan 20. The mission discussed and agreed with CEB on Operational Plan (Annex-4)6 for the operation phase of the project. Since the distribution and transmission works constructed under the project will be integrated within CEB's overall system, their operation will be subject to normal operation and maintenance work of CEB. Further, since the Project has not been completed, the Operational Plan incorporates the completion dates of the various components and provides indicators for monitoring the Project's operation and its development impacts. Subsequent IDA missions will monitor these indicators. Implementation Completion Report 21. In accord with IDA guidelines, after completion of each project, an Implementation Completion Report (ICR) is required. Very recently, IDA has prepared and circulated a final ICR for the Ninth Power Project (Credit 1736-CE). The mission collected data for the preparation of its section of ICR for this Project. The mission provided necessary advice and support to CEB for preparing its own contribution for the ICR. It was agreed that CEB will forward to IDA, through Department of External Resources, its evaluation report by October 31, 1995. 22. As indicated earlier in para 3, about 53% of the Credit amount (about US$21.5 million) has been cancelled. A table comparing the category wise actual expenditure with SAR estimates is included in Annex-6.7 It will be seen that a major portion of the cancelled amount relates to distribution work component. The savings accrued due to: (i) favorable SDR/US$ exchange rate, (ii) lower than estimated bid prices, (iii) procurement of poles and erection of lines by CEB from their own resources. The delays in implementation took place because CEB's resources were diverted to other priority areas, including rural electrification. In addition, material is not procured on time and even after procurement, it remains in the store for a long time before appropriate usage. As identified by CEB in its reports, the distribution organizational set up requires review and its method to plan, design, procure and implement the works need to be revamped. A typical procurement process generally undergoes inordinate delays on account of reviews by a large number of scrutinizing bodies including Tender Evaluation Committee (TEC), Ministry Tender Board (MTB), Cabinet Appointed Tender Board (CATB) and the Cabinet. Unless GOSL/CEB overcome these self imposed barriers, disbursement and project implementation will continue to remain unsatisfactory. 5/ Now included in Appendix A, pages 7-10 6/ Now included in Appendix A, pages 7-10 7/ Now included in Part 11, Table 4  Appendix A Annex I Page I of 3 POWER DISTRIBUTION & TRANSMISSION PROJECT OPERATION PLAN OPERATIONAL ISSUES STRATEGY PERFORMANCE INDICATORS TIMING Project Completion The Project is incomplete whereas material needed CEB to complete the distribution i. Completion of LV network December 1996 for distribution work has been provided, overall works through force account and to physical erection is only 31.5 % as of August 95. expedite the OECF financed ii. Completion of MV network - do - IDA financed transmission works are almost transmission works through supply & commissioned but OECF financed works are way erect contractors. iii. Completion of service connection work - do - behind schedule. iv. Completion of IDA-financed Energized augmentation of 132-kV substation at December 19, 1995 Ratmalana v. Completion of OECF financed 1 32-kV End December 1997 W transmission works (originally June 1997) Project Operation Facilities constructed under the project should be The works commissioned under the i. The plant & equipment register of the Regularly operated and maintained efficiently. project are being integrated within taken over of distribution systems and CEB's overall system. A comparison 1 32-kV substations is updated regularly. will be made with the licensees' performance to analyze the change in ii. The depot system maintenance register Quarterly quality of supply. is updated each quarter. iii. Maintenance work of substations Regularly including scheduled replacement of transformer oil is carried out regularly. iv. LV and HV breakdowns of taken over Monthly systems are monitored monthly. v. Training of technical staff is carried out As per plan in accord with an approved training plan.  Appendix A Annex I Page 2 of 3 OPERATIONAL ISSUES STRATEGY PERFORMANCE INDICATORS TIMING Project Operation Efficient operation of the system should CEB will monitor the system losses i. Monitoring voltage levels at The monitoring work has started in October 1 995 lead to reduction of distribution system and variation in voltages in the 40 preselected feeders. and will be continued for six months and thereafter losses and restriction in variation of licensees' system taken over. CEB the results will be analysed before continuing the voltages. Further addition of 1 32-kV will select 40 feeders. To monitor monitoring. transformers at the grid substation losses province-wise, CEB will should avoid the overloading. analyze the energy sold with energy imported. CEB will take ii. Install 70 and 4 Nos. Contracts for meters were awarded in October aggressive steps to detect and stop import/export meters at 33 & 1995. pilferage of electrical energy. 1 1-kV respectively for the above analysis. iii. Analyze the losses The analysis will start after import/export meters province-wise. mentioned in para. (ii) are installed (September 1 996). t t.i iv. Reduce system losses by 1 The losses have been re-calculated by CEB after % annually. the review of incorrect meter readings. Based on revised information, CEB has calculated losses in 1993 at 21.46% in 1994 at 18.85% and at 18.46% in 1995 (up to June 1995). v. Reduce operation and By reducing the staff and amalgamating the routine maintenance cost distribution maintenance and rehabilitation of - works, CEB is reducing operation and maintenance cost. The 0 & M cost expressed as a percentage of gross distribution fixed assets was 4.6%, 3.7%, and 3.5% during FYs 92, 93 and 94 respectively. vi. Replace defective meters There is an ongoing project to identify defective of bulk supply consumers. bulk supply meters. It is expected to check all these meters and replace themn by September 1996. vii. CEB will set off a special Unit will be fully operational by early 1996. Also it unit to detect and stop is expected that all old and new bulk supply meters pilferage of electric energy. would ba sealed with new copper seals by September 1996 to prevent tampering and pilferage.  Appendix A Annex I Page 3 of 3 OPERATIONAL ISSUES STRATEGY PERFORMANCE INDICATORS TIMING Compliance with Covenants: CEB should, before the beginning of each fiscal year, For FY96, the anticipated tariff Compliance with the revenue Each year adjust the tariffs so as to ensure that their revenue increase of about 10%, effective covenants projections are sufficient to earn a rate of return of beginning of the year, is expected to 8% on current value of its net fixed assets. CEB enable CEB to meet its revenue also needs to ensure that its debt service coverage covenant. CEB will continue with its ratio is maintained at a minimum of 1.5. CEB's efforts each year and ensure that the audited accounts are required to be submitted within ROR covenant is complied with. ten months of the end of each fiscal year. With additional staff deputed by the Each year AG, audit work of the FY94 accounts Submission of audited accounts are expected to be finalized with a within ten months of the end of delay of one month. each fiscal year wj  - 34 - Appendix B Page 1 of 9 IMPLEMENTATION COMPLETION REPORT Power Distribution & Transmission Project IDA Credit 1933-CE Borrower's Evaluation' 1. BORROWER'S ASSESSMENT A. Introduction In June 1988 an IDA Credit 1933-CE amounting to SDR 29.2 million (about US$40.5 million) was approved by IDA Board for GOSL/CEB to plan, design and implement a Power Distribution Transmission Project. B. Project Obiectives The principal Project objectives were to meet the ever increasing load demand consequent to rapid rural electrification and industrialisation. Also, the life styles of the people were rapidly changing due to free availability of utility electrical appliances for which the supply authority had to cater an adequate supply of power devoid of frequent failures and maintaining the supply voltage at adequate levels, rendering of prompt bills to consumers to ensure prompt revenue collection. Also required were adequate and suitable office accommodation, stores, and warehouse space for areas outside Colombo suburbs due to decentralisation. In addition, it was also necessary for CEB management, technical and support staff to acquire new techniques and skills to manage the rapidly increasing functions due to ever increasing activities within CEB. C. Desimn To achieve the above objectives, the following project components of the project were designed - (i) Transmission Works (IDA) Original proposal was to construct: (a) A double circuit 132-kV line of about 120 km from Anuradhapura to Mannar, and (b) 2x10 MVA 132/33-kV grid substation with IDA financing of US$6.8 million at Mannar. Due to disturbances in the area this proposal was cancelled and in lieu it was proposed to construct a grid substation at Chilaw with 2x31.5 MVA transformers with a short double circuit 132-kV line of about 8.0 km. Further augmentation of the existing Pannipitiya grid substation and augmentation and rehabilitation of Ratmalana grid substation was also planned. The total value of the contract award in 1993 was IJS$6.3 million. GOSL/CEB approached IDA in September 1991 seeking IDA approval for the substitution. IDA agreed to this. The transmission component also provided OECF cofinancing for the following transmission works under Loan SL-P21. This section is the Borrower's contribution and is not attributable to IDA. A copy of the original letter dated is in the Project file.  - 35 - Appendix B Page 2 of 9 The Credit closed on 31st December 1994 before the Chilaw grid substation work was completed and the remaining erection cost (foreign) was met from CEB funds amounting to SLRs 14.0 million. (ii) Transmission Works OECF Construction of approximately 22 km of 132-kV double circuit transmission line using ZEBRA conductors to replace the existing 132-kV double circuit COYOTE line between Kotugoda and Bolawatta. Construction of approximately 81 km of 132-kV double circuit transmission line using LYNX conductors between Anuradhapura and Puttalam. Construction of approximately 62 km of 132-kV double circuit transmission line using LYNX conductors between Matara and Embilipitiya. Construction of approximately 11 km of 132-kV double circuit transmission line using LYNX conductors to make the Polpitiya and Anuradhapura transmission line in-out at Ukuwela. Construction of a new 132/33-kV 2x31.5 MVA grid substation at Matara. Augmentation of the grid substation at Ukuwela to 2x31.5 MVA and making the Polpitiya- Anuradhapura transmission line in-out. Construction of additional 2 Nos. of 132-kV feeder bays together with a bus section circuit breaker on the existing single busbar at Puttalam. Construction of additional 2 Nos. of 132-kV feeder bays at Embilipitiya. (iii) Distribution Local Authorities Systems Studies showed that local authority distribution systems were not maintained in the least and were treated by the local bodies as only a source of revenue irrespective of the quality of supply offered to the long suffering consumers. The distribution systems suffered from heavy voltage drops, frequent failures and large power losses. It was noted that the local authorities were operating a system which was totally non-economic, and they did not have the finances to effect any improvements. In addition these licensees owed CEB large amounts of money accumulated over a long period for energy purchased and CEB was in no position to disconnect the supply as any disconnection would affect a large number of consumers who invariably would have paid the licensees for energy used. Thus CEB was placed in a very tricky situation. The takeover of 133 licensees systems was planned and included under the Power Distribution and Transmission Project in order to provide a satisfactory service to the consumers as well as to take into account new growth in the areas. In general a licensee had a number of 33-kV/LV or I 1-kV/LV substations which were the property of CEB. The supply was metered on the LV side and the distribution lines from the substation remained the property of the licensees. These LV lines were haphazardly loaded with no consideration given to power losses, extended over considerable lengths with no consideration given to stipulated voltage levels at the consumers terminals and were subject to frequent  - 36 - Appendix B Page 3 of 9 interruptions due to bad maintenance and inadequate protection provided on the LV lines. In most cases the protection was non-existent and faults were invariably cleared on the high voltage side isolating the entire substation out of the system. It was decided after taking over to completely rehabilitate the system including adding new substations, upgrading the MV lines from I 1-kV to 33-kV to lower power losses, and transmit more bulks of power, changing practically all line supports and conductors, service connections, cut-outs and where necessary the meters. It cannot be over-emphasised that most of the relevant pieces of equipment mentioned are well over 30 to 40 years old and have surpassed their usual electrical life expectancy. Local Authority Electricity Undertakings were not managed in an economical and logical way. As stated, their prime aim was revenue collection irrespective of the profitability of the system. Adding new loads to existing lines already having high power losses and operated at low levels of supply voltage at the consumers terminals would only result in poor efficiency. The logic of the takeover was to give a satisfactory electricity supply to about 180,000 consumers (installations). Also, it was noted that usually licensees charge more from consumers compared to CEB, and it was thought prudent to have an uniform tariff structure. (iv) Civil Works and Buildings Coming under civil works and buildings, 16 Projects were to be constructed under separate contracts. All these projects were to have helped in the expansion of the electricity distribution facilities providing new area engineers' offices and electrical superintendents depot buildings in different parts of the island. (v) Decentralised Computerised Billing System The CEB billing system was processed on a IBM S/36 mini computer located at the Head Office. The system's capacity was estimated to serve about 500,000 consumers but due to rapid rural electrification and other reasons the number of consumers reached 1,000,000 by the year 1988. Also, the planned drive toward decentralisation was envisaged to afford a better and improved service and demanded billing to be centralised to the provinces. The Project was intended to set- up a Head Office/Provincial/Area Computer Network and install a billing system at the provincial level. Areas could have access to the billing system via the network. Similarly, management information about billing could be fed to the head office computer from the provinces. (vi) Technical Training Also part of this Credit was disbursed for training and used to finance technical assistance for tariff study. In this respect a number of senior engineers and accountants, engineers, electrical superintendents and other staff were sent on various training courses and scholarship studies which were very beneficial in improving and upgrading the technical, accounting and management functions of CEB as a whole. (vii) Kukule Ganga Hvdro Project and Feasibility Study A very important project component was the feasibility study of the Kukule Ganga Electric Power Project. With rapid growth in electricity demand after 1990 (average about 8.5 per cent increase during the past five years), the generating capacity of the system needed to be expanded to meet  - 37 - Appendix B Page 4 of 9 this demand. In this context the Kalu Ganga Multi-purpose Project was selected for a feasibility study in order to investigate comprehensive development of Sri Lanka's major river basin of Kalu Ganga. However, after detailed investigation it was decided to develop this as a run-of-river plant of 70 MW and annual energy generation of 305 MW. D. Detailed Project Implementation (i) Chilaw. Pannipitiva & Ratmalana Grid Substations The transmission Planning Branch of CEB had studied at length the existing and future system requirements and recommended the reinforcement of the system. Accordingly, the design consisted of a 132/33-kV grid substation consisting of 2 132/33-kV 31.5 MVA outdoor transformers, an indoor 33-kV bus-bar with 8 outgoing 33-kV control panels and associated switchgear. The double circuit 132-kV overhead transmission line to bring in power to this substation was a T-off connection from the existing line from Bolawatte to Puttalam and is approximately 8 km in length using a LYNX conductor. At Pannipitiya and Ratmalana one transformer each of 31.5 MVA was added by extending the 132-kV bus-bar and effecting modification/additions to the 33-kV side. (ii) Distribution System For the 133 licensees, the design involved primarily the design of MV line networks to feed the new distribution substations constructed to meet the growing needs. Identification of load centres and the design of new distribution substations and their location accordingly was possible. The reconductoring of LV lines with a thicker conductor, conversion of single phase lines to two phase and three phase as required, and augmentation of distribution and primary substations was planned. A major portion of the design work fo LV and MV lines was carried out using computer software developed by U.S. based consultants. (iii) Civil Works Design for civil works was totally handled by the Civil Works and Buildings Branch of CEB. The tender documents had to receive the approval of the World Bank. The draft tender documents for procurement of civil works were revised from the comments given by the World Bank. (iv) Decentralised Computer Billing System Under the Decentralised Computer Billing Project the exiting billing system was studied and documented comprehensively by the consultants. This system was used as the basic system. It was decided to adopt a decentralised processing approach rather than centralised processing (mainframe) for the proposed system. Further billing software was to run on a Distributed Data Based Management System (DRDBMS). Data Entry and query facilities were to be given to the areas whereas bill processing was to be done at the provincial level. Top management of CEB was to be given summarised information and the ability to query any details when required.  - 38 - Appendix B Page 5 of 9 (v) Kukule Ganga Hydro Project and Feasibility Study The principal design features of the Kukule Ganga Hydro Electric Project are as follows - Type - run of the river Full Supply Level (FSL) - 206 masl. Minimum Operating Level (MOL) - 204 masl. Regulating Capacity of Head Pond - 1.67 MCM Catchment Area - 312 sq.km. Annual Average Inflow - 30.4 M3/Sec. Power Plant Head Race Tunnel D/L - 4.8 M/5,650 m. High Pressure Tunnel D/L - 4.8 M/205 m. Tail Race Tunnel D/L - 4.8 M/1600 m. Power House - Underground. Installed Capacity - 70 MW(2x35 MW). Normal Tail Water Level - 21.0 masl. Performance Peak Power Discharge - 47.5 M3/S. Annual Average Energy Production - 317 GWh. Inundation Effect Total headpond surface area - 88 ha. (including river surface of 69 ha). Population Effected Agricultural Land Submerged - 15 ha. E. Implementation (i) Transmission Chilaw, Pannipitiya and Ratmalana works are handled on a turnkey contract by the Joint Venture of firms from Germany, Sweden/India and Sri Lanka. The construction period was 24 months, and the completion date was fixed at June 1995. 132-kV double circuit line was designed and is wholly handled by the transmission construction units of CEB. The line materials and accessories were supplied by Thai and Indian contractors who are presently executing transmission projects for CEB. Both the Chilaw grid substation and the line along with Pannipitiya grid substation were commissioned in earl September 1995 whereas Ratmalana grid substation is expected to be commissioned by the end of November 1995. (ii) Takeover of 133 Licensees The work implemented and the progress are roughly as follows -  - 39 - Appendix B Page 6 of 9 New MV lines - 142 km (23% of scope) New Substations - 244 Nos. (37% of scope) New LV lines - 586 km (65% of scope) LV Line Rehabilitation - 676 km (31 % of scope) Rehabilitation - 7394 Nos. (10% of scope) The work is expected to be completed by 31st December 1996. The work is handled by the provincial units of CEB, utilising CEB's own work force as well as contractors on a short term basis. CEB's own vehicles and construction equipment procured under other project as well as under this Project have been utilised for the work. The contractors gangs have been using their own vehicles, tools, and construction equipment and as a result of the increase in the number of contractors gangs. It is envisaged to: (a) make available CEB vehicles, tools, and equipment to contractors gangs, and (b) absorb "Labour only" construction gangs to strengthen CEB's work force. The main reasons for the delay are design changes necessary to incorporate the fast developing loads, civil unrest that causes damage to CEB property (transformers and vehicles), delays in ordering and the procurement of materials. Private sector construction units for this type of work were small in number and time was needed for these units to be established and trained. (iii) Civil Works For civil works, tenders were invited for 9 projects, and 5 were awarded by 31st December 1994 (Credit closing date). SLRs. 4,419 million has been paid to the contractors by the Credit closing date. The project performance is as follows - Work is in progress in the construction of 2 area engineer offices, and 3 electrical superintendents depots. All works are scheduled for completion by 31st December 1995. (iv) Decentralised Computer Billing Project was deleted from IDA scope, and CEB decided to implement it from its own resources. (v) Training for personnel was carried out successfully and to the benefit of CEB. (vi) Kukule Ganga Hydro Electric Proiect The contract for the consultancy was made on 24th April 1991 with the Joint Venture team of foreign consultants consisting from Japan, Switzerland, and Germany. The foreign consultants were assisted by counterpart staff comprised of CEB engineers and with local consultants from CEB, etc. A panel of experts was also appointed to review the consultants work during the feasibility study. The date of commencement of engineering services was 5th June 1991. The Project ended on 31st March 1993. (vii) In November 1993 GOSL/CEB requested IDA, during mid term review of the Project, to extend the Credit closing date by another year up to December 1996 and to finance SCADA equipment at an estimated cost of US$11.0 million as there was savings due to a favourable exchange rate of SDR vs. US dollar and distribution material prices were cheaper than appraisal estimate. IDA agreed to GOSL/CEB's request subject to GOSL/CEB adhering to the agreed action plan.  - 40 - Appendix B Page 7 of 9 Because GOSL/CEB did not agree to any tariff increase, an important item of agreed action plan, IDA closed the Credit on December 1994, as scheduled, without any extensions. (viii) The reasons for savings in the project cost are stated in Annex 1. F. Operation Experience (i) At Pannipitiya and Ratmalana the additional transformers will be connected to the existing 33-kV bus-bars and as such the operating experience is an enhancement of the existing ones. The additional transformers at these grid substations will considerably improve the reliability of supply to a large area outside Colombo. In fact the frequency of breakdowns due to overloading will be reduced much and improved substantially. Three large local body areas will directly benefit and at the same time the primary substation at Kirulapone constructed under another project for the Colombo City will also be able to obtain additional power. (ii) The 133 licensees taken over will be integrated with the works in the normal CEB electricity distribution system, and the same organisational set-up will be responsible for carrying out the maintenance and operation works. Nevertheless, the maintenance staff, vehicles, etc. will have to be enhanced proportionally depending on the size of the licensee absorbed into individual maintenance depots. (iii) Civil Works - Operation experience not applicable. (iv) Decentralised Computerised Billing Proiect - Not applicable. (v) Training - Not applicable. (vi) Kukule Ganga Project - Not applicable. G. Evaluation of Borrower's Perfornance (i) Chilaw. Pannipitiya and Ratmalana Grid Substations There was a delay in effecting the mobilisation advance to the contractor by CEB which caused a 45 day delay to the Project. Also, on material procurement contract which was divided into four packages, there were substantial delays due to the contractor disagreeing to supply materials at his originally offered price. At the Chilaw grid substation the outgoing feeders from the indoor 33-kV panel will be via single core 33-kV cables directly connected to overhead lines. Considering the frequent faults due to uncleared trees on the route of the existing 33-kV lines, and frequent and heavy lightning encountered in the area, it is inevitable that the insulation properties of these 33-kV cables will, in the long run, be impaired and weakened. It is not in the best sense of technicality to accept what is offered. In an area like this it would have been ideal to have all 33-kV equipment outdoor, though a large land space would have been required, but the saving in land cannot be compared to a trouble free supply with outdoor 33-kV switchgear.  - 41 - Appendix B Page 8 of 10 (ii) On the subject of taking over 133 licensees, due to non-availability of modern technology and computer design systems, implementation and identification of system changes work was delayed. Also, due to civil unrest in the country, resources were shifted by CEB to other priority activities; thus, implementation was delayed further. Some of the key lessons learned that may be useful in the future are as follows - (a) large projects to be carried out expediently require a change of framework of the present organisational set-up; (b) planning work should be facilitated with modern equipment such as computer systems to enhance and expedite the planning, design and execution process; (c) the training of personnel in modern techniques is necessary; and, (d) the retention of trained personnel requires offering incentives. (iii) On civil works time was taken to revise CEB conditions of tender and contract to suit the World Bank Bidding Documents in procurement of works. (iv) Decentralised Computerised Billing Project The World Bank had recommended to evaluate bids on a two stage bidding process. The evaluation led to problems due to the two stage nature of the bidding and evaluation. When bids were technically evaluated certain outside members of the TEC challenged the marking scheme, which was developed from the World Bank's weightages. The evaluation was unduly delayed as TEC meetings could not be convened due to non-availability of members. There should be a straightforward method of evaluating bids and persons too busy in other fields should not be appointed members of a TEC. In the future, frequent monitoring of a TEC is necessary and a target date should be given to complete evaluation. In this particular case, CEB decided to provide the decentralised computerised billing system from its own resources. (v) Training In this respect, the borrower was able to fully make use of the credit facilities to train a large number of officers in fields useful to CEB. The trainees have shown the benefits of the training received by way of better management of the utility. (vi) Kukule Ganga Hydro Electric Project The appointment of a panel of experts to review the consultants study at various stages has lead to a more robust layout of the power plant thereby saving costs on the overall project. They have also pointed out various technical aspects related to the project which led to a better design. However, in certain instances there were few differences of opinion between the consultants and the panel of experts. The appointment of POE however, was very useful to CEB. It may be advisable to appoint a POE for all major projects that are complex in nature.  - 42 - Appendix B Page 9 of 9 H. Evaluation of Bank Performance There were no cash flow problems to meet contractors' and other bills. CEB is thankful for the credit facilities extended by the Bank and their very strict control over disbursement. The borrower experienced very strict supervision and adhered to rules of the Bank in procurement. One of the key lessons learned in negotiating with the Bank is that communication between banks and the borrower is protracted. Communication should be fast and responses quick for speedy decisions and implementation. For future projects the following suggestions should be taken seriously: (i) the Bank should have a permanent representative in each country of operation for on-going supervision/decision making; (ii) the representative should be responsible for all correspondence and documents; and, (iii) the representative should identify all corrective measures and suggest action while regularly monitoring the project. Plan for Operational Phase of the Project. (i) Installation Arrangements The works and services that are to be completed and commissioned under this Project will be integrated with the works in the normal CEB system and the same organisational set-up will be responsible for carrying out the maintenance and operation of the works. The project components that integrate with the CEB distribution system will be operated using CEB's established set comprising A.G.M. (Distribution & Customer Services), D.G.M. in charge of provinces, Area Engineer and finally to the Depot Level Manager by Electrical Superintendents. The details of all plant and equipment are maintained in a plant and equipment register by each maintenance depot. The components on which regular maintenance has to be carried out are entered in a depot system maintenance register. Work is planned using schedules of tasks, frequencies, standard gang compositions and work standards taking remedial action regarding any deficiencies of staff observed using long established set-up in CEB which has been functioning satisfactorily. Progress of maintenance work and system operations are carefully recorded and maintained; there is an established reporting system to furnish management information reports to all those who are in need of these reports and on which important decision making has to be made. (ii) Performance Indicators It is suggested that performance indicators, such as the reduction in technical power loss in distribution networks, reduction in the variation of voltage between peak and off-peak times, and reduction of system outages per month are established. By monitoring them over a period of 3 years the performance of the project can be assessed.  - 43 - Appendix B Annex 1 Reasons for Savngs in the Project Cost Part A - Distribution The main reasons attributed is due to the slow process of drawing up specification for ordering of materials. Furthermore, there were savings due to the favourable exchange rate of SDR versus US$. Under Civil Works it was advised by the World Bank that only works which could be constructed by the Credit closing date would be financed. Part B - Transmission Systems It is to be noted that under this item originally the Project scope covered a 120km double circuit 132-kV line from Anuradhapura to Mannar with a 2x10 MVA 132/33-kV grid substation. Due to unstable conditions in the area, this project was cancelled and in place it was planned to construct a 2x31.5 MVA 132/33-kV grid substation at Chilaw and a short 8.0km 132-kV double circuit line. Hence, the undisbursed balance is due to change in scope of the work, and not due to any under-utilisation. Under the OECF scope, transmission works located in the Northern province were deleted from the project. Part C - Decentralised Computer Billing The undisbursed balance is due to financing of the project from CEB's own funds instead of IDA funds. Part D - Consultancy. & Training This component consisted of technical assistance through consultancy services for project implementation support, institution development assistance, feasibility studies as well as for training of CEB staff in utility management. The amount was well spent.  -44- SRI LANKA Appendix C CEYLON ELECTRICITY BOARD Page 1 of 3 POWER DISTRIBUTION AND TRANSMISSION PROJECT (CR. 1933-CE) IMPLEMENTATION COMPLETION REPORT Income Statemients SLRS. MILLION FISCAL YEAR ENDING 1987 1088 1989 1990 1991 1992 1993 1994 DECEMBER 31 SAR ACT. SMSAR ACT. S A. S A KWh GENERATED (MILLIONS) 2707 2701 3004 2799 3202 28158 3415 3145 3657 3378 38J0 3539 4204 4204 4535 4363 KVYh SOLD (RMLUONS) Z248 2258 2538 2370 2735 2354 2954 2608 3182 2742 3429 2869 3700 3270 3991 3585 SYSTEM LOSS (%) 17 16 16 1s 14 18 13 17 13 19 12 19 12 22 12 18 AVE. TARIFF/KWh SOLD(CENTS) 1.48 1.47 1.76 1.70 1.97 1.66 2.21 2.15 2.21 2.24 227 2.32 2.43 2.57 2.43 3.44 OPERATING REVENUE SALES OF ELECTRICITY 3327 3319 44e6 4018 5396 3918 6521 5809 7024 6144 7796 66f53 9001 839s 9709 12256 FUELSURCHARGE 841 1259 147 236 360 60 610 24 671 502 442 1727 825 366 1425 958 OTHER OPERATING REVENUES 123 127 129 141 136 263 142 561 15o 1008 157 594 16s 1202 173 859 OTHER REVENUE 2J9 364 133 22 48 143 2e 70 34 64 55 96 146 is 308 549 TOTALOPERATING REVENUES 4580 5069 4875 4824 5941 4384 7299 6264 78t78 7715 8450 9070 10137 9979 11615 14Uf OPERATING EXPENSES FUEL COST 81e 1223 143 229 350 so 592 24 651 479 429 1645 801 349 1383 912 OPERATION MAINTENANCE 501 528 623 724 688 825 770 1274 882 1698 1117 1631 1293 1U82 1366 1989 TURNOVERTAX 124 137 138 128 172 119 213 169 230 199 247 366 294 438 333 6e1 ADMINISTRATION & OTHER 183 351 225 345 248 508 272 529 299 421 329 611 362 741 399 843 DEPRECIATION 1003 802 116 1038 1331 1307 1491 1397 1765 2064 23 2134 258s 2875 2732 332 TOTAL OPERAnNG EXPENSES 2627 3041 2297 2464 2788 2619 3339 3393 38t28 4881 4356 6589 5336 628s 6213 7767 NET OPERATING INCOME 1953 2028 2578 2160 3153 1565 3959 2871 4050 2857 4095 2481 4801 3694 5402 65ss INT.CHARGEDTOOPERATIONS 1026 813 1300 979 1717 640 2173 1200 2487 2457 2545 2111 2507 2345 2540 2741 INCOME 927 1215 1278 1181 1430 925 17Jf6 1671 1583 400 1550 370 2294 1349 2862 4114 LESS: EXP.IN FEAS.STUDIES 1108 0 0 45 30 18 0 1 7 _ _ 0 95 0 85 0 305 NETPROFIT 819 1215 1218 1136 1406 907 17Wt 16s4 15s3 393 1550 275 2294 1264 2t862 3809 RATE OF RETURN ON AV.NET FIXED ASSETS IN OPERATION 8.s 8.7 9.8 7.9 10.7 5.1 12.3 7.7 10.5 6.4 8.o 4.1 8.1 4.e 8.9 7.9 Note: The aoal. for fhI padod FYJ7s63 we taken from ihi ICR for Cr. 1736-CE and updated for FY94.  -45- SRI LANKA Appendix C CEYLON ELECTRICITY BOARD Page 2 of 3 POWER DISTRIBUTION AND TRANSMISSION PROJECT (CR. 1933-CE) IMPLEMENTATION COMPLETION REPORT Balance Sheets SLRS. MILUON FISCAL YEAR ENDED 1987 1988 1989 1990 1991 1992 1993 1994 DECEMBER 31 SAR | ACT. SAR F ACT, S | AC ASSETS FIXED ASSETS GROSS FIXED ASSETS 35937 35884 41940 43220 46n70 49028 52643 65516 65003 72670 83900 106556 88478 122449 93669 133637 LESS: CUM.DEPRECIATION 8830 8789 10661 11367 12831 13789 14754 19312 17109 22737 19941 26645 22786 31622 25814 36950 NET FIXED ASSETS 27107 27095 31279 31853 34139 35239 37889 46204 47894 49933 63959 79911 65692 90827 67855 96687 CONSTRUCTION IN PROGRESS 5545 4996 9744 9534 15823 15030 20419 23134 15395 27773 2571 6120 2989 3832 4277 4919 TOTAL FIXED ASSETS 32652 32091 41023 41387 49962 50269 58308 69338 63289 77706 66530 88031 68681 94659 72132 101605 INVESTMENTS 204 219 271 295 305 325 321 340 331 340 341 347 351 485 361 635 INSURANCE ESCR 141 147 183 181 230 188 282 217 347 271 431 332 520 435 613 553 CURRENT ASSETS CASH 1917 2518 743 1396 227 841 292 428 379 692 724 151 2187 1107 3970 5688 INVENTORIES 1078 1178 1049 1651 1169 2030 1316 2210 1625 2414 2098 2698 2212 2512 2342 3048 ACCOUNTS RECEI 1042 1093 1153 1678 1439 1497 1783 1600 1924 1416 2060 1919 2457 2300 2783 2766 OTHER RECEIVAB 789 2621 909 3435 716 2775 527 2202 580 2201 638 3054 701 1288 772 2234 TOTAL CURRENT ASSETS 4826 7410 3854 8160 3551 7143 3918 6440 4508 6723 5520 7822 7557 7207 9867 13735 TOTAL ASSETS 37823 39867 45331 50023 54048 57926 62829 76335 68475 85040 72822 94532 77109 102786 82973 116528 EQUITY AND LIABILrITES EQUITY EQUITY 7565 7333 7723 8038 8304 8047 8784 8048 9235 84W8 9884 9155 10540 9907 11130 10620 CONSUMERS' CON 2345 2125 2793 2284 3282 3079 3745 3412 4242 4102 4797 4561 5403 5850 6067 6824 REVALUATION SU 10141 10777 12174 158641 14051 18843 15758 29403 17273 33074 18950 37642 19781 44829 20635 51171 RETAINED EARNIN 6081 6472 7299 7623 8706 8513 10492 10152 12074 10532 13824 10808 15918 11598 18779 15381 TOTALEQUITY 26132 26707 29989 33584 34342 38482 38779 51015 42824 56176 47255 62166 51642 72184 56611 83996 LONGTERMDEBT 10234 10834 137sB 13636 18044 16617 22238 20836 23586 24049 23169 24753 22780 25233 23412 25311 CURRENT LIABIluTI 1455 2326 1555 2803 1662 2827 1813 4484 20e4 4814 2397 7613 2685 5369 2948 7220 TOTAL EQUITY AND LIABILITIES 37821 39867 45330 50023 54048 57926 62830 76335 68474 85040 72821 94532 77107 102786 82971 118528 EUrTY AS % OF DEBT+EQUITY 72 71 6s 71 66 71 64 71 64 70 67 72 69 74 71 77 DEBT AS % OF DEBT+EQUITY 28 29 31 29 34 29 36 29 36 30 33 28 31 26 29 21 CURRENT RATIO 3.3 3.2 2.5 2.9 2.1 2.5 2.2 1.4 2.2 1.4 2.3 1.0 2.8 1.3 3.3 1.9  -46- SRI LANKA Appendix C CEYLON ELECTRICITY BOARD Page 3 of 3 POWER DISTRIBUTION AND TRANSMISSION PROJECT (CR. 1933-CE) IMvPLEMENTATION COMPLETION REPORT Sources and Applications of Funds Statements SLRS. MILLION 1987 1988 1989 1990 1991 1992 1993 1994 SA C. SR|ASAR AR |ACT SAR |ACT. SR|AT A C A C. SR|AT SOURCES OF FUNDS INTERNAL SOURCES NET INCOME AVAILABLE 1953 2028 2578 2160 3153 1565 3959 2871 4050 2857 4095 2481 4801 3694 5402 6855 ADD:DEPRECLATION 1003 802 1168 1077 1331 1307 1491 1364 1765 2064 2234 2136 2586 2915 2732 3362 LESS: EXP.IN FEAS.STUDIES 108 0 60 45 30 18 0 17 0 7 0 95 0 85 0 305 INT. FUNDS GENERATED 2848 2830 3686 3192 4454 2554 5450 4218 5815 4914 6329 4522 7387 6524 8134 9912 EQUITY CONTRIBUTIONS 315 82 158 703 507 11 406 1 377 420 575 687 582 751 590 713 OTHER CONTRIBUTIONS 365 145 448 159 489 795 463 332 496 690 555 459 607 1289 663 973 TOTAL BORROWINGS 2260 2694 4125 3165 4842 3354 4779 4597 1917 3620 1262 2144 1334 712 2498 1720 TOTALSOURCES OF FUNDS 5788 5751 8417 7219 10292 7014 11098 9148 8605 9644 8721 7812 9910 9276 11885 13318 APPLICATIONS OF FUNDS CAPITAL INVESTMENTS TOTAL INV. PROGRAM 5236 4119 7508 5470 8318 6988 8057 9872 5156 6760 3725 5891 3831 4326 5328 3967 OTHERINVESTMENTS 10 25 67 76 34 30 16 16 10 0 10 7 10 125 10 150 TOTAL INVESTMENTS 5246 4144 7575 5546 8352 7018 8073 9S88 5166 6760 3735 5898 3841 4451 5338 4117 DEBT SERVICE INTEREST 1026 813 1300 979 1717 640 2173 1200 2467 2457 2545 2111 2507 2345 2540 2741 AMORTIZATION 563 396 574 364 584 373 585 378 569 407 1679 1440 1723 1474 1867 1642 TOTAL DEBT SERVICE 1589 1209 1874 1343 2301 1013 2758 1578 3036 2864 4Z24 3551 4230 3819 4407 4383 INSURANCE ESCROWACCT 36 46 42 57 47 25 53 41 65 67 84 63 88 108 94 144 CH.IN WORKING CAPrTAL CASH INCREASE -1953 -1351 -1174 -1122 -516 -555 65 -413 87 264 345 -541 1463 956 1783 4580 OTHER THAN CASH INC. 870 1702 101 1395 107 -4W8 151 -1947 251 -311 333 -1159 288 -58 263 94 NET INCREASE -1083 351 -1073 273 -409 -1041 216 -2360 338 *47 678 -1700 1751 898 2046 4675 TOTALAPPLICATIONS OF FUNDS 5788 5750 8418 7219 10291 7015 11100 9147 8605 9644 8721 7812 9910 9276 11885 13318 DEBT SERVICE COVERAGE 1.8 2.3 2.0 2.4 1.9 2.8 2.0 2.7 1.9 1.7 1.5 1.3 1.7 1.7 1.8 2.3 Note: During FY93, Rs. 731 million was transferred from Current Liabilities to Long Term Debts.  -47- Appendix D Page 1 of 1 SRI LANKA POWER DISTRIBUTION AND REHABILITATION PROJECT Economic Internal Rate of Return (SL Rs. Million) Capital Operations Benefits Balance Year Cost & Maintenance 1987 0.0 0.0 0.0 0.0 1988 4424.8 126.6 364.4 -4187.0 1989 5101.4 143.2 -121.1 -5365.6 1990 5939.8 328.5 550.5 -5717.7 1991 3747.6 498.3 512.9 -3733.0 1992 2923.9 487.5 479.7 -2931.8 1993 1589.7 409.9 1025.2 -974.4 1994 1600.9 376.4 3199.0 1221.7 1995 736.6 4290.8 3554.2 1996 736.6 4290.8 3554.2 1997 736.6 4290.8 3554.2 1998 736.6 4290.8 3554.2 1999 736.6 4290.8 3554.2 2000 736.6 4290.8 3554.2 2001 736.6 4290.8 3554.2 2002 736.6 4290.8 3554.2 2003 736.6 4290.8 3554.2 2004 736.6 4290.8 3554.2 2005 736.6 4290.8 3554.2 2006 736.6 4290.8 3554.2 2007 736.6 4290.8 3554.2 2008 736.6 4290.8 3554.2 2009 736.6 4290.8 3554.2 2010 736.6 4290.8 3554.2 2011 736.6 4290.8 3554.2 2012 736.6 4290.8 3554.2 2013 736.6 4290.8 3554.2 2014 736.6 4290.8 3554.2 2015 736.6 4290.8 3554.2 2016 736.6 4290.8 3554.2 2017 736.6 4290.8 3554.2 2018 736.6 4290.8 3554.2 2019 736.6 4290.8 3554.2 2020 736.6 4290.8 3554.2 2021 736.6 4290.8 3554.2 2022 736.6 4290.8 3554.2 2023 736.6 4290.8 3554.2 2024 736.6 4290.8 3554.2 Economic Rate of Return: 10.2% Note: Upto FY93, the analysis uses the same inputs as used for the ICR of Cr. 1736-CE and updates for FY94  SRI LANKA Ap iendix E POWER DISTRIBUTION AND TRANSMISSION PROJECT (CR. 1933-CE) Page I of 2 IMPLEMENTATION COMPLETION REPORT Changes in Project Scope Between Credit Effectiveness (1988) anid closure (1994), the scope of the Project (finaniced by the Credit) was chianged several times. The details of these changes are summarized below: Project scope as appraisedl _ Project scope as amenlded in Project scope as restructured Project scope as of Credit closure in December 1994 Septemlber 1991 in October 1993 A. DISTRIBUTION COMPONENT No change No change No change; following Project closure, CEB is carrying out necessary works to comnplete the implementation; these are Investments related to CEB's expenditures in being funded from its own resources. All material required rehabilitating, developing and expanding distribution lor implementatioll has been procured but progress in systems to be taken over from 133 licenseces implementation has been slow and as of the end of August 1995, it was only 31.5%. Detailed status of ongoing distribution works is included in Part 11, Table SA. B. TRANSMISSION COMPONENT Investnents related to CEB's expenditures in: (i) Construction of about 230 km of1 132-kV transmission line as under: (a) in and out of Polipitiya-Anuradhpura 132-kV (a) No change (a) No change (a) No change line at Ukuwela substation (7 km) (b) Anuradhpura-Mannar (72km) (b) dropped (b) dropped (b) dropped (c) Kanikesanithurai-Chunnakam (9 kin) (c) No change (c) No change (c) No change (d) Puttalam-Anuradhpura (80 ksin) (d) No change (d) No change (d) No change (e) Embilipitiya-Matara (62 km) (e) No change (e) No change (e) No change (ii) Reconductoring of 150 km of 132-kV lines (ii) No change (ii) No change (ii) No change (iii) Construction of new 132/33-kV substations at: (a) Mannar (a) dropped (a) droped (a) dropped (b) Kankesanthurai (b) No change (b) No change (b) No change (c) Matara (c) No change (c) No change (c) No change added (d) Chilaw substation with (d) No change (d) No change 8 km of loop line  Appendix E Page 2 of 2 Project scope as appraised Project scope as amenided in Project scope as restructured Project scope as of:Creditclosure iiDeceijber 1994: Ptojct s .op as pprasedSeptemiber 1991 in October 1993 ...... (iv) Augmentationi of existing 132/33-kV substations at: (a) Ukuwela (a) No change (a) No chanige (a) No change (b) Kiliiochiciii (b) No change (b) No change (b) No change (c) Anuradhpura (c) No change (c) No change (c) No change (d) Puttalam (d) No change (d) No change (d) No change added (e) two substations at (e) No change (e) No change Ratmalana and Panripitiya Detailed status of the ongoing transmission works is included in Part 11, Table 5B C. CONSULTING SERVICES TO: (i) develop a decentralized computerized billiig (i) No change (i) dropped; CEB decided to (i) dropped system and a management itifonnationi system carry out this study from their (MIS); own resources (ii) assist CEB in the preparation ol the detaiiled (ii) No change (ii) No change (ii) No change specirications and design ol tlie 132-kV transmission systems of B(i) above and preparation of the bidding documents for the major transmission. contracts; (iii) assist CEB in carrying out a tarilf smudy; (iii) No change (iii) No cliange (iii) No change; study completed in December 1990 (iv) assist in the development of a training program (iv) No chiange (iv) No change (iv) No change; trairning carried out in January 1990. for middle level technical officers; (v) assist in the establishmeint of a consumer relations (v) No change (v) No change (v) No change; constultaits' report finalized in May 1989 unit; and (vi) assist in monitoring the continucd (vi) No change (vi) No changc (vi) No change, study completed in May 1991 iniplementation of CEB's new organizational structure. D. FEASIBILITY STUDY FOR THE KALU No change No change The study was completed in March 1993. GANGA MULTIPURPOSE PROJECT E. Added component to Project closed in December 1994 and, as such, this component finance SCADA equipment could not be financed  -50- Appendix F Page 1 of 4 SRI LANKA POWER DISTRIBUTION AND TRANSMISSION PROJECT LOCAL AUTHORITY ELECTRICITY SCHEMES TAKEN (Ref. May No. IBRD 27602) Local Authority Scheme Takeover Date Total LT Number of Consumers Maximum Line Length Demand (km) (kW) I Madampe 05/17/89 10.80 898 244 2 Wennappuwa 05/24/89 16.30 1490 538 3 Kamalpattu 05/24/89 0.00 390 310 4 Lunuwila 05/24/89 8.47 368 100 5 Dankotuwa 05/24/89 16.99 985 293 6 Bope 06/22/89 23.25 1781 678 7 Lunugala 06/29/89 5.30 382 100 8 Passara 06/29/89 7.6 813 195 9 Ninthavur 08/08/89 23.00 1741 640 10 Yatakalanpattuwa 08/08/89 27.65 1524 366 11 Nattandiya 08/08/89 11.45 614 164 12 Samanthurai 08/15/89 30.23 1867 480 13 Akkaraipattu 10/11/89 38.70 2860 929 14 Andiambalama 10/31/89 24.30 892 241 15 Katana 10/31/89 37.35 1595 541 16 Kochchikade 11/01/89 24.03 1755 383 17 Henerathgoda 11/02/89 23.95 979 227 18 Aluthgamperuwa 11/02/89 36.50 2354 663 19 Habaraduwa 11/07/89 10.12 819 232 20 Ahangama 11/07/89 10.45 819 335 21 Karavaku N. 11/08/89 29.28 1752 507 22 Kalmunai 11/08/89 55.42 4225 1376 23 Karavaku S. 11/08/89 21.98 1944 520 24 Mulleriyawa 11/09/89 13.56 1247 307 25 Kattankudy 11/14/89 46.55 4389 892 26 Devinuwara 11/14/89 10.76 1056 219 27 Addalaichenai 11/15/89 13.40 411 144 28 Kaduwela 11/16/89 48.75 3870 1100 29 Galewela 11/23/89 7.69 553 170 30 Kuruwita 11/30/89 9.00 718 156 31 Homagama 12/07/89 34.56 2513 786 32 Kottawa 12/07/89 12.21 1314 445  -51- Appendix F Page 2 of 4 Local Authority Scheme Takeover Date Total LT Number of Consumers Maximum Line Length Demand (km) (kW) 33 Meegoda 12/07/89 7.58 1105 0 34 Kadugannawa UC 01/16/90 24.90 2142 530 35 Galagedara 01/16/90 8.98 646 180 36 Kalpitiya 01/16/90 28.45 506 165 37 Pelmadulla 02/15/90 24.50 1827 600 38 Polonnaruwa 02/20/90 25.95 1862 976 39 Hingurakgoda 03/06/90 13.06 953 237 40 Kahawatta 04/24/90 9.50 794 305 41 Atakalanpanna 04/24/90 10.00 376 132 42 Rakwana 04/24/90 7.80 618 160 43 Deraniyagala 05/29/90 6.00 449 110 44 Dambadeniya 05/31/90 11.40 612 174 45 Narammala 05/31/90 30.40 1045 411 46 Alawwa 05/31/90 17.45 767 220 47 Dodangaslanda 05/31/90 17.65 281 80 48 Egodapotha-Nittambuwa 06/28/90 61.15 2023 763 49 Kalagedihena 06/28/90 16.93 855 322 50 Bemmulla 06/28/90 24.54 594 170 51 Veyangoda 06/28/90 32.81 1934 599 52 Mudunakade 07/26/90 10.85 417 116 53 Moragolla 07/26/90 6.64 534 79 54 Polgahawela 07/26/90 16.60 1487 403 55 Pothuhera 07/26/90 8.60 467 180 56 Udugaha 07/26/90 37.75 805 340 57 Mirigama 07/26/90 32.15 1509 446 58 Hanwella Udugahapattu 07/26/90 10.73 601 233 59 Hanwella Peruwa 07/26/90 6.86 1105 260 60 Padukka 07/26/90 19.72 1209 374 61 Tangalle UC 07/30/90 18.30 1606 330 62 Badulla MC 08/15/90 78.91 6438 2410 63 Dimbula-Kotagala 08/30/90 14.11 1425 458 64 Kandapola 08/30/90 28.22 723 210 65 Chilaw UC 08/30/90 33.40 4247 1567 66 Elpitiya 08/30/90 34.20 1573 429 67 Galigamuwa 08/30/90 3.90 208 67 68 Otharagandolaha Dewalagama 08/30/90 16.20 338 118  -52- Appendix F Page 3 of 4 Local Authority Scheme Takeover Date Total LT Number of Consumers Maximum Line Length Demand (km) (kM) 69 Piliyandala 08/30/90 31.15 3686 1282 70 Dodangoda 08/30/90 33.70 1243 354 71 Beliatta 08/31/90 22.14 814 232 72 Bentota 09/11/90 21.98 1206 502 73 Adhikaripattu-Bandaragama 09/25/90 60.70 2995 845 74 Thalpitibadda-Panadura 09/25/90 33.70 1690 528 75 Ambagamuwa N. Ginigathhena 09/27/90 9.03 1039 248 76 Ambagamuwa S. Maskeliya 09/27/90 6.97 731 213 77 Yatiyantota 10/09/90 7.71 455 148 78 Dummalasurity 10/23/90 24.35 677 195 79 Udabowala 10/30/90 12.00 260 135 80 Ampitiya Gandahaya 10/30/90 35.84 2145 742 81 Kuliyapitiya UC 10/30/90 28.45 2038 717 82 Akuressa 10/30/90 16.44 1048 296 83 Kandepella Haldummulla 10/30/90 4.32 386 90 84 Koslanda 10/30/90 5.75 265 60 85 Divulapitiya 10/30/90 25.85 1165 826 86 Raigam Udugahapattu 10/30/90 16.30 637 232 87 Trincomalee UC 11/15/90 47.60 3900 2290 88 Matugama 11/27/90 43.21 1977 547 89 Putuhapuwa Teldeniya 11/29/90 1.92 104 45 90 Ragala halganoya-Udapussellawa 11/29/90 4.45 745 230 91 Puttalam UC 11/29/90 44.80 4459 1420 92 Wellawa 11/29/90 10.40 694 237 93 Boyagane-Thiranaganddahaya 11/29/90 7.85 194 80 94 Tissamaharama 11/29/90 22.16 949 512 95 Warakapola 11/29/90 16.50 1014 410 96 Agalawatte 11/29/90 10.46 589 96 97 Ganaihala-Meetalawa 12/18/90 7.30 260 96 98 Rattota 12/20/90 5.19 501 139 99 Maho 12/20/90 9.55 602 175 100 Madurawala-Anguruwatota 12/20/90 11.62 556 153 101 Diyatilaka 12/28/90 17.75 865 217 102 Pussellawa 01/24/91 7.63 710 188  -53 &Apendix F Page 4 of 4 Local Authority Scheme Takeover Date Total LT Number of Consumera Maximum Line Length Demand (km) (kO) 103 Seethawakapura UC 01/24/91 27.73 1405 527 104 Kegalle UC 01/29/91 54.00 3132 939 105 Wariyapola 01/30/91 64.73 798 301 106 Nikaweratiya 02/26/91 17.30 776 352 107 Baddegama 02/26/91 19.18 683 206 108 Niwithigala 02/27/91 15.10 582 200 109 Alawatugoda 02/28/91 46.08 2743 980 110 Ukuwela-Matale 03/26/91 14.85 822 353 111 Arambekade-Harispattuwa 03/28/91 15.17 733 185 112 Barigama-Werellagama 03/28/91 9.71 767 530 113 Ibbagamuwa 03/28/91 14.52 660 173 114 Deniyaya 03/28/91 5.09 520 116 115 Dehiowita 03/28/91 11.02 787 239 116 Batugoda 04/30/91 27.00 1505 840 117 Mawathagama-Pilassa 04/30/91 18.70 829 229 118 Hamangalla-Giriulla 04/30/91 32.67 857 225 119 Markandura-Gonawila 04/30/91 30.05 872 259 120 Pannala 04/30/91 20.75 629 210 121 Ambalantota 04/30/91 39.50 1403 524 122 Welimada 05/02/91 29.24 1114 443 123 Pundaluoya 05/29/91 5.30 475 128 124 Menikhinna 05/30/91 13.07 1708 340 125 Kundasale 05/31/91 13.57 910 200 126 Hali-Ela 06/18/91 9.74 696 212 127 Kekirawa 06/27/91 43.68 260 258 128 Horana UC 06/27/91 27.50 2499 761 129 Anuradhapura UC 07/15/91 158.64 6848 3624 130 Vavuniya UC 11/06/91 50.80 3055 1620 131 Eravur-Town 12/06/91 10.98 2670 600 132 Ruwanwella 01/28/92 18.87 966 325 133 Mawanella 03/24/92 42.09 2627 884 Totals 3,017.19 177,929 59,698   MAP SECTION   IBRD 27602 -Tu 8bo 9v81