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DB on Aid Activities in Cambodia

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[World Bank] Rural Electrification And Transmission Project
Author Admin Date 2015.08.06 Views 994
Aid View
General Information Project/Program Project
Project Name Rural Electrification And Transmission Project
Duration Approval Date:2003-12-16, Closing Date:2012-01-31
Donor World Bank
Implementiong Organization Electricity Authority of Cambodia (EAC), Electricite du Cambodge (EDC), Rural Electrification Fund (REF)
Sector and/or Subsector Classification Energy and Mining
Region N.A.
Financing US$131.6 million
Analytical Information Stakeholders N.A.
Cross-cutting Issue Environment
Gender
Impact Analysis The ex-post Economic Rate of Return (ERR) was 28.9% compared with 19.8% at appraisal. The ICR notes that the higher ex-post ERR is mainly due to the higher consumer willingness-to-pay based on the actual weighted average tariff off-grid households paid in the project area in 2008. At appraisal, the willingness-to-pay estimate was based on the average cost of off-grid supply in 2003 when fuel prices were substantially lower.
The relevance of project objectives and design is rated high. Project efficacy is rated substantial. The project improved the power sector efficiency and reliability and expanded electricity coverage in rural areas which is expected to improve standards of living and foster economic growth. However, the reduction in EDC's cost of power supply was not achieved. Project efficiency is rated modest. Overall, outcome is rated moderately satisfactory.
Effectiveness Ownership/Partnership Evaluation The economic and financial analysis for transmission components, which at appraisal accounted for more than half of the total project cost, was not conducted, although analysis for 220kV transmission line was conducted at appraisal. The ICR states that this will be carried out by the Asian Development Bank. As the ICR did not contain project cost of each component, the relative weight of each project component in efficiency at project closure is unclear. The project was delayed by 2.5 years.
Rating 3/5
Policy Coherence/Harmonization Evaluation The project objectives remained consistent with the most recent Country Assistance Strategy (April 18 2005) which among other things focussed on improving rural livelihood sand creation of an enabling environment for private sector investment. In the energy sector, the Bank strategy was to support the updating of the national power development master plan; facilitate improvement of sector governance and increase competition for private participation in power supply; as well as continue assistance to rural electrification.
The project design, which brought together the transmission line extension and reinforcement component, a rural electrification component, the piloting of a REF to deliver electricity access to remote and off-grid areas, accompanied by technical assistance and capacity building for key entities in the sector, was clear and internally consistent. These components are logically expected to contribute to the achievement of project objectives.
Rating 5/5
Evaluation Framework Evaluation No information regarding Evaluation Framwork in this report
Rating N.A.
Alignment/Composition of Finance Evaluation The Financial Management rating was downgraded to unsatisfactory. Following actions were taken to correct the situation: (i) appointment of a new finance manager to replace the old one who was asked to resign; (ii) appointment of a senior accountant; (iii) appointment of an internal auditor; and (iv) reconstruction of the books of accounts and reconciliation of each source of funds (IDA, GEF, and counterpart funds); (v) refunding of the ineligible and un-reconciled amounts found; and (vi) completion of the external audit of the project’s reconstructed books of accounts for the fiscal years 2007 and 2008. Clean audits were received after 2009.
A procurement plan was prepared as part of the Project Implementation Plan including procurement packaging, procurement methods, contract types, schedules, etc. More than 95% of the procurement of goods was to be carried out through ICB procedures and subject to IDA prior review. EDC experienced delays in contracting the National Control Center component due to complaints lodged by a bidder. The case was resolved and the component was completed in January 31, 2012, about 44 months behind schedule.
Rating 4/5
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