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AFRICAN DEVELOPMENT BANK
COTE D’IVOIRE
POWER TRANSMISSION AND DISTRIBUTION NETWORKS REINFORCEMENT
PROJECT (PRETD)
APPRAISAL REPORT
ONEC DEPARTMENT
November 2016
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TABLE OF CONTENTS
PROJECT OVERVIEW ......................................................................................................................... ii
I. IPROJECT PRESENTATION, ALIGNMENT AND BENEFICIARIES ..................................... 1
A. Project Context, Development Objectives and Specific Objectives ....................................... 1
B. Expected Project Outcomes and Impacts ............................................................................... 1
C. Project Outputs ....................................................................................................................... 2
D. Project Rationale..................................................................................................................... 2
E. Project’s Alignment with National Development Goals ........................................................ 2
F. Project Alignment on Bank Strategies and Policies ............................................................... 3
G. Integration of Requirements Set Out Under Presidential Directive No. 02/2005 ................... 3
H. Consultation Process and Ownership by the Country ............................................................ 3
I. Project Target Areas, Beneficiaries and Selection Criteria ........................................................ 4
II. PROJECT COST AND FINANCING........................................................................................ 5
A. Estimated Project Cost and Financing Arrangements ............................................................ 5
B. Coordination of Joint Project Donors ..................................................................................... 5
III. PROJECT FEASIBILITY .......................................................................................................... 5
A. Project Economic and Financial Performance ........................................................................ 5
B. Sensitivity of Project’s Financial and Economic Performance .............................................. 6
C. Environmental and Social Impact ........................................................................................... 6
D. Climate Change ...................................................................................................................... 7
E. Gender .................................................................................................................................... 7
IV. PROJECT IMPLEMENTATION AND MANAGEMENT ....................................................... 7
A. Governance ............................................................................................................................. 7
B. Implementation Schedule ....................................................................................................... 8
C. Procurement Strategy and Plan ............................................................................................... 8
D. Financial Management ........................................................................................................... 9
E. Monitoring and Evaluation ..................................................................................................... 9
F. Sustainability .......................................................................................................................... 9
G. Risk Management ................................................................................................................. 10
V. LEGAL INSTRUMENTS AND AUTHORITY ...................................................................... 10
A. Legal Instrument ................................................................................................................... 10
B. Conditions Associated with Bank’s Intervention ................................................................. 10
40. The Bank’s financing is subject to the following conditions: .............................................. 10
VI. RECOMMENDATIONS .......................................................................................................... 11
Annex 1: Web Links
Annex 2: Map of Project Area
Annex 3: Project Implementation Schedule
Annex 4: Procurement Systems
Annex 5: Justification of Level of Côte d’Ivoire’s Project Counterpart Funding
CURRENCY EQUIVALENTS August 2016
1 Unit of Account = 822.4586 XOF
1 Unit of Account = 1.2529 EUR
1 Unit of Account = 1.3934 USD
1 January to 31 December
WEIGHTS AND MEASURES
1 kilometre (km) = 1 000 m
1 km² = 1 000 000 m²
1 hectare (ha) = 10 000 m²
1 tonne = 1 000 kg
1 kilojoule (kJ) = 1 000 Joules (J)
1 kilovolt (kV) = 1 000 Volts (V)
1 kilovolt-ampere (kVA) = 1 000 Volt – ampere (VA)
1 kilowatt (kW) = 1 000 Watts
1 Megawatt (MW) = 1 000 000 W = 1 000 kW
1 Gigawatt (GW) = 1 000 000 kW = 1 000 MW
1 kilowatt-hour (kWh) = 1 000 Watt-hours = 3 600 000 Joules (J)
1 Megawatt hour (MWh) = 1 000 000 Wh = 1 000 kWh
1 Gigawatt hour (GWh) = 1 000 000 kWh = 1 000 MWh
1 tonne of oil equivalent (Toe) = 41 868 Joules = 11 630 kWh
1 million tonnes of oil equivalent (MToe) = 1 000 000 Toe
i
ACRONYMS AND ABBREVIATION ADF
: African Development Fund
BD : Bidding Documents
CIE : Compagnie Ivoirienne d’Electricité
CI-ENERGIES : Société des Energies de Côte d’Ivoire
CIPREL : Compagnie Ivoirienne de Production de l’Energie Electrique
CLSG : Côte d’Ivoire, Liberia, Sierra Leone and Guinea Interconnection Project
CSP : Country Strategy Paper
DC : Direct Contracting
EIB : European Investment Bank
ERR : Economic Rate of Return
ESIA : Environmental and Social Impact Assessment
ESMP : Environmental and Social Management Plan
GDP : Gross Domestic Product
HV : High Voltage
ICB : International Competitive Bidding LCB : Limited Competitive Bidding LV : Low Voltage
MDG : Millennium Development Goals
MOT : Mean Outage Time
MV : Medium Voltage
NA : Not available
NCB : National Competitive Bidding NDE : Non-distributed energy
OCB : Open Competitive Bidding PAP : Project Affected People
PAR : Project Appraisal Report
PEPT : Electricity for All Programme
PIA Project Impact Area
PIU : Project Implementation Unit
PND National Development Programme
PRONER : National Rural Electrification Programme
PSV : People in Situations of Vulnerability
QCBS : Quality- and Cost-Based Selection
RAP : Resettlement Action Plan
RO : Regional Operations
SDG : Sustainable Development Goals
SP : Simplified Procedures
TFP : Technical and Financial Partners
UA : Unit of Account
ii
PROJECT OVERVIEW
Identification
Project Name Power Transmission and Distribution Networks
Reinforcement (PRETD)
Country Côte d’Ivoire
Project SAP Code P-CI-FA0-014
Geographic Location Districts: Abidjan, Montagnes and Bas Sassandra
Sector Energy
Sub-Sector Electricity
Name and Telephone
of Project Task
Manager
Olivier KOFFI
Tel.: (225) 20 20 61 71
Description
Overall Objective
Acceleration of the economy’s structural transformation
through industrialization and improvement of the
people’s living conditions
Specific Objectives
Improve grid performance in order to provide consumers
with high quality energy and increase the electricity access
rate
Outputs
Transmission lines and sub-stations, distribution lines and
sub-stations, project studies and management, mitigation
of environmental and social impacts
Outcomes Reduction of technical losses, NDE and MOT
Improved access rates
Impacts
Improvement of the people’s quality of life
Job creation
Increased GDP growth rate
Strategic
Thrust
Country Strategy
/Objective aligned on
The 2016-2020 PND and the Energy Sector Strategic Plan
The Bank’s strategy
aligned on
The Bank’s Ten-Year Strategy, High 5s and the New Deal
for Energy in Africa
CSP Pillars aligned
on
Pillar II (2013-2017 CSP).
Beneficiaries
Population 1 400 000
Women (%) 51
Minorities (%) NA
Environmental
and Social
Impacts
Score or Yes/No/N.A.
Environmental Category 1
Does an ESIA exist? YES
Does an ESMP exist? YES
Does an RAP exist? YES
Safeguards
required
Climate change resilience YES
Involuntary resettlement NO
Gender inequalities YES
Governance issues NO
Project
Management
Executing Agency’s Name and
Address
CI-ENERGIES
01 B.P. 1345 Abidjan 01
Procurement strategies adopted National system, Bank’s system and
United Nations system
Implementation Period 36 months
iii
Project
Readiness
Yes/No/N.A.
Have the key executing agency staff assumed duty? YES
Has the executing agency opened a bank account? NO
Have the project counterpart funds been disbursed? NO
Does a Detailed Project Implementation Plan (DPIP) exist? YES
Does a detailed financial plan exist? YES
Does a detailed procurement plan exist? YES
Does a Results Monitoring and Evaluation Framework exist? YES
Estimated Loan/Grant Signature Date 24 October 2016
Cost and
Financing
Amount
(in UA million)
% of total cost
Total cost 162.14 100
ADB loan 137.82 85
Government/Sponsor 24.32 15
Financial
Information
Lending currency Euro (EUR) or any other convertible currency
Loan type Fully Flexible Loan
Tenor To be determined (not exceeding 25 years)
Grace period To be determined (not exceeding 8 years)
Weighted average maturity1 To be determined (depending on the depreciation
profile)
Repayments Semi-annual payments after the grace period
Interest rate
Base rate + Funding margin +Lending spread +
Maturity premium
This interest rate must be above or equal to zero.
Base rate Floating (6-month EURIBOR resets on 1 February
and 1 August or any other acceptable rate)
A free-fixing option is offered to fix the base rate
Funding margin
Bank’s funding margin resets on 1 January and 1
July and applied on 1 February and 1 August with
the base rate.
Lending spread 80 basis points (0.8%).
Maturity premium
To be determined:
- 0% if the average weighted maturity <= 12.75
years
- 0.10% if average weighted maturity<=15
- 0.20% if average weighted maturity >15 years
Front-end fee 0.25% of the loan amount to be paid latest on the
loan signature date.
Commitment fee:
0.25% per year on the undisbursed amount. It starts
to accrue 60 days after loan signature and is payable
on interest payment dates.
Base rate conversion option 2 :
In addition to the free-fixing option for fixing the
base rate, the Borrower is now offered the possibility
of returning to the floating rate or re-fixing all or part
1 An average weighted maturity calculator is available at this website
2 The conversion options and transaction fees are governed by the Bank’s Guidelines for Loan Terms at this website
iv
of the disbursed amount of its loan.
Transaction fees are payable.
Interest rate cap or collar
option 3 :
The Borrower is offered the possibility of
establishing base rate caps or collars for all or part of
the disbursed amount of its loan.
Transaction fees are payable.
Lending currency
Conversion option 4:
The Borrower is offered the possibility of converting
the lending currency for all or part of its disbursed or
undisbursed loan into another Bank-approved
lending currency.
Transaction fees are payable.
3 Idem 2 4 Idem 2
v
RESULTS-BASED LOGICAL FRAMEWORK
Country and Project Name: Côte d’Ivoire- Power Transmission and Distribution Networks Reinforcement
Project Objective: Accelerated transformation of the economy through industrialization and improvement of the people’s living conditions.
RESULTS CHAIN
PERFORMANCE INDICATORS
Means of Verification RISKS/MITIGATION MEASURES
Indicators 2015 Baseline
Situation 2019 Targets
IMP
AC
T
Economic development of
the region and
improvement of the
people’s quality of life
- Jobs created
- GSP growth
- National access rate
-
-
- 80 %
- 3020 jobs, of
which 32% for
women
- +1.5 %
- 81.24 %
Project Completion Reports of:
- Ministry of Planning and
Development
- Ministries of Oil and Energy
- CI-ENERGIES
- CIE
Risk:
- Failure to connect rural households in the event of non-
availability of counterpart funds.
Mitigation measure
- Central government commitment to facilitate the people’s
access to electricity under PEPT.
OU
TC
OM
ES
Enhanced quality of
service, energy efficiency
and improved coverage
- Reduction in Riviera II sub-station load rate
- Improvement of Bingerville voltage plan
- Reduction of NDE in Bingerville
- Reduction in Man sub-station load rate
- Reduction of NDE at Man sub-station
- Reduction of MOT at Man sub-station
- Improved Duékoué voltage plan
- Ensure continuity of service in San Pedro
- Improvement of coverage rate in Tonkpi
- Improvement of coverage rate in Guémon
- Improvement of coverage rate in Cavally
- Reduction in the number of localities supplied by
isolated diesel generators
- 82 %
- 14 kV
- 460 MWh
- 75 %
- 321 MWh
- 36 h
- 30 kV
- N-1 safety
requirements not
met
- 41.24 %
- 57.14 %
- 58.58 %
- 5
- 60 %
- 20 kV
- 153 MWh
- 51 %
- 100 MWh
- 10 h
- 33 kV
- N- 1 requirements
met
- 62.77%
- 87.96 %
- 96.31%
- 0
Reports of
- Ministries of Energy
- CI-ENERGIES
- CIE
Risks:
- Weak capacity of CI-ENERGIES to implement a large-scale
project
- Poor performance of contractors to complete project
- Administrative red tape in granting exemptions
Mitigation measures:
- Recruitment of a control mission to assist CI-ENERGIES in
implementing the project
- Qualification criteria raised to exclude contractors without
relevant references
- Existence of a Tax Unit at CI-ENERGIES responsible for
monitoring exemptions within the different tax administrations
vi
OU
TP
UT
S
HVB lines constructed
HVA lines constructed
HVB/HVA sub-stations
established
MV/LV sub-stations
established
LV lines constructed
Public lighting installed
Connections made
Studies for future
projects
Employees trained
Support to people in
situations of
vulnerability
- Length of 225 kV lines
- Length of 33 kV lines
- Length of LV lines
- Number of HVB/HVA sub-stations constructed/
reinforced
- Number of HVA/LV sub-stations constructed
- Number of public lighting units installed
- Number of connections made
- Number of studies conducted on future projects
- Number of CI-ENERGIES employees trained
- Number of groups of people in situations of
vulnerability assisted
-
-
-
-
-
-
-
-
-
-
-
205 km
1356 km
1445 km
5
351
6568
20 000
4
85
12
Project appraisal reports, reports of
the consulting engineer, quarterly,
supervision, audit, monitoring-
evaluation, completion and DGE
activity reports.
Consulting engineer’s report
Audit reports
KE
Y A
CT
IVIT
IES
COMPONENTS INPUTS
1. Infrastructure: (i) Construction of 205 km of 225 kV lines, 1 356 km of 33 kV lines; (ii) Construction of 2 x 225/33 kV sub-stations, one
225/20 kV sub-station and extension of 2x225/33 kV sub-stations; (iii) Installation of 351x 50kVA pole-mounted sub-stations, 1445 km of
LVA lines; and (v) installation of 6568 public lighting units and completion of 20,000 connections.
2. Project Management: (i) control and supervision of network restructuring and extension work; (ii) external auditing of project accounts;
(iii) procurement of nine works supervision vehicles; (iv) procurement of IT equipment and office furniture; (v) unit’s operating costs; and
(vi) various training courses
3. Environmental and Social Mitigation: (i) Compensation of project affected persons; (ii) support to vulnerable groups; and (iii) project
environmental management.
Resources
ADB : EUR 137.82 million
Government : EUR 24.32 million
Application
Component 1 : EUR 141.56 million
Component 2 : EUR 11.45 million
Component 3 : EUR 9.13 million
1
MEMORANDUM AND RECOMMENDATION OF BANK GROUP’S MANAGEMENT TO
THE BOARDS OF DIRECTORS CONCERNING A PROPOSAL TO GRANT AN ADB LOAN
OF EUR 137.82 MILLION TO THE REPUBLIC OF COTE D’IVOIRE TO FINANCE THE
POWER TRANSMISSION AND DISTRIBUTION NETWORKS REINFORCEMENT
PROJECT
Management hereby submits this Memorandum and recommendations concerning a EUR 137.82 ADB
loan proposal to contribute to finance the Power Transmission and Distribution Networks
Reinforcement Project (PRETD)
I. PROJECT PRESENTATION, ALIGNMENT AND BENEFICIARIES
A. Project Context, Development Objectives and Specific Objectives
1. Between 2012 and 2015, Côte d’Ivoire posted sustained economic growth at an average rate
of 9.4% due to the recovery of the main growth-bearing sectors of the national economy: agriculture,
mining and services. In the electricity sub-sector, this economic growth has led to an annual increase in
power demand of about 12%, which could settle at 6% in the medium and long term. Côte d’Ivoire’s
existing electricity system is unable to meet demand despite the entry into service, in 2015, of additional
capacity of 253 MW, i.e. 17%, following the reinforcement of the AZITO and CIPREL plants. The
Soubré plant, with a capacity of 275 MW, is expected to come on stream in 2017. The study on the
Power Generation and Transmission Master Plan (PDPT), conducted in 2014, highlighted the
dilapidated state and saturation of power networks as one of the major constraints preventing the
electricity sub-sector from playing its role as a driver of the country’s development.
2. The project’s development goal is to accelerate the structural transformation of the economy
through industrialization and the development of infrastructure evenly distributed throughout the
national territory, and environmental conservation. The project’s implementation will contribute to the
launching of mining and cocoa processing projects in the San-Pedro region (these projects await the
availability of electricity). More specifically, the project aims to reduce non-distributed energy and the
total mean outage time as a result of the limited capacity of some structures of the national
interconnected grid. It also aims to restructure distribution networks with a view to relaunching
connections for new customers in the towns of San Pedro, Bingerville, Duékoué and Zagné, and ensure
the rural electrification of 252 rural localities in Montagnes District.
B. Expected Project Outcomes and Impacts
3. The near-to-medium term outcomes are a reduction of the mean outage time (MOT) of the
entire interconnected grid from 44.6 hours to 42 hours, optimal grid utilization, increase in access to
electricity from 80 to 81.24 % at national level, creation of direct jobs during the project phase and
availability of qualified human resources to set up and manage projects at CI-ENERGIES. The project’s
main impacts will be industrial development and the economic opening up of rural areas. The pipeline
of industrial, mining and agri-business projects in the western region of the country has the potential to
create about 3020 direct jobs, of which 32% for women, and their implementation due to the availability
of electricity as a result of the project’s implementation will contribute to the country’s economic and
social development, and to GDP growth. The expected impacts of the electrification of 252 localities
are the reduction of insecurity as a result of public lighting and adequate telecommunication resources,
the rapid dissemination of information by audio-visual equipment, women’s empowerment and gender
equality in rural, urban and peri-urban areas. Indeed, the project will help to reduce the drudgery of
daily chores, allow the development of women’s potential in disadvantaged environments and the
expansion of petty trades in the formal and informal sectors, sources of new jobs for the population,
especially people in situations of vulnerability (youth, women and the unemployed). A negative impact
that could occur would be that the opening up to the outside world through audio-visual media and the
internet could be a source of social unrest
2
C. Project Outputs
4. On completion, the expected project outputs will be: (i) the electricity infrastructure comprising
the Bingerville 225/20 kV sub-station, the Duékoué and Zagné 225/33 kV sub-stations; the extension
of the Soubré and San Pedro sub-stations; Soubré - San Pedro (128 km) and Duékoué-Zagné (77 km)
225 kV lines, the HVA networks in Bingerville, Duékoué, Zagné and Taï, the distribution networks in
42 localities in Cavally Region, 82 localities in Guémon Region and 128 localities in Tonkpi Region;
(ii) Support for people in situations of vulnerability; and (iii) intangible outputs including the
information, education and communication campaign, the project’s environmental and social
management, the audit of project accounts, works control and supervision missions, feasibility studies
on future projects and the training of CI-ENERGIES personnel.
D. Project Rationale
5. The project addresses the sector’s main problems, namely the dilapidated state and saturation
of the networks, which affects the electricity sub-sector’s performance and are the causes of the
suspension of new connections of industrial and household customers in certain regions, especially in
the West of the country. Therefore, the project’s implementation will result in the launching of industrial
and mining projects such as those related to the Feketero, Ouélé and Mahapleu gold mines, the
Touleupleu iron ore mines, the Sampleu nickel mines and the San Pedro iron ore and manganese plant.
The total estimated capacity of these projects by 2018 is 70 MW. The project will also allow wood
processing industries in Montagnes District, currently using their own energy sources (diesel generators
with a total capacity of 3.3 MW) to make significant savings as a result of their connection to the grid,
the cost of which is CFAF 77 per kWh compared to CFAF 117 for the generators, i.e. a 34% saving. As
a result of the project, Compagnie Ivoirienne d’Electricité (CIE) (the power utility company) will close
down eight isolated thermal plants operating in Montagnes District (in Tinhou, Diboke, Medibli, Taï,
Sakre, Zeregbo, Koreahinou and Ouallo-Kouloukoro localities), with a total capacity of 1.3 MW and an
average generation cost of CFAF 169/kWh compared to an average generation cost on CFAF 77 for all
the country’s power generating facilities. CIE will make annual fuel savings of about CFAF 800 million
based on 2014 data. The closure of plants operated by CIE and wood processing industries will avoid
annual CO2 emissions of about 3600 tonnes. Lastly, the project’s implementation will result in the
electrification of 252 rural localities and the connection of 7000 new customers in the town of San Pedro
and efficient power supply to the towns of San Pedro, Bingerville, Duékoué, Zagné and Taï.
E. Project’s Alignment with National Development Goals
6. The reference document for the country’s development goals is the 2016-2020 National
Development Programme (PND 2016-2020), the overall objective of which is to make Côte d’Ivoire an
emerging country by 2020, with a sound industrial base. PND 2016-2020 is focused on the following
five strategic thrusts: (i) enhancement of the quality of institutions and governance; (ii) acceleration of
human capital development and social well-being; (iii) acceleration of the economy’s structural
transformation through industrialization; (iv) development of infrastructure evenly distributed
throughout the national territory and environmental conservation; and (v) strengthening of regional
integration and international cooperation. For the energy sector, PND 2016-2020 aims to develop high
quality power facilities through the following four outputs: (i) strengthening governance in the
electricity and oil and gas sub-sectors; (ii) increasing oil and gas production, storage and transportation
facilities; (iii) increasing power generation, transmission and distribution facilities; and (iv) adopting a
power saving and efficiency policy.
7. The project is in keeping with the country’s development goals and sector objectives. It is
aligned on strategic thrusts (ii), (iii) and (iv) of PND 2016-2020 and its outputs are consistent with
output (iii) of the PND 2016-2020 for the energy sector. By 2020, the targeted objectives for the
electricity sub-sector will be to increase the amount of energy supplied to the transmission and
distribution networks from 8 251 GWh (2015) to 12 662 GWh, scale up power supplied to the mining
3
sector from a peak of 1 260 to 3090 MW and increase the rural population’s electricity access rate from
80 % in 2015 to 81.24 % by 2020. In this regard, the electricity sub-sector 2015-2030 Investment
Programme provides for the construction of 3 025 km of transmission lines and 23 related sub-stations,
and the electrification of 1076 rural localities over the 2015-2030 period,. The project will contribute to
the achievement of these objectives by the construction of 205 km of transmission lines, five sub-
stations and the electrification of 252 rural localities.
F. Project Alignment on Bank Strategies and Policies
8. The Bank’s 2013-2022 Ten-Year Strategy targets inclusive growth and the development of
sustainable infrastructure to more effectively safeguard energy. Approved in 2012, the Bank’s energy
sector strategy aims to increase the modern energy services access rate and to promote cleaner energy
that will protect the environment. The project will contribute to the implementation of these strategies
by providing the country with high quality transmission and distribution infrastructure, and by
increasing the population’s electricity access rate. The project will also contribute to the implementation
of the Bank’s High 5s and the different programmes of the New Energy Deal for Africa, in particular
the “access programme for the bottom of the pyramid” through the connection of 20 000 rural
households, the programme to improve the performance of power utilities by training 85 CI-ENERGIES
employees, the programme to increase the number of bankable projects by conducting feasibility studies
on four future projects, the energy efficiency programme by constructing 205 km of 225 kV lines and
five related sub-stations that will reduce energy losses and outage times.
G. Integration of Requirements Set Out Under Presidential Directive No. 02/2005
9. The project is in line with Presidential Directive No. 02/12015 Concerning the Design,
Implementation and Cancellation of Bank Group Sovereign Operations. The project design is based on
detailed technical studies conducted between 2013 and 2015 using Government resources. The
availability of these studies facilitated project appraisal and the preparation of bidding documents.
Therefore, this is an operation with a satisfactory maturation level. On this basis, the Government
requested and obtained the Bank’s consent to use the Advanced Contracting (AC) procedure, thanks to
which bids were invited from June 2016. As of 30 September 2016, all bids for rural electrification
works were received and appraised, and contracts will be signed as soon as the project is approved. The
initial disbursements could be made in the first quarter of 2017. For works on the transmission lines and
stations, bids will be received in November 2016. Negotiations on the financing agreement were held
on 12 October 2016. The Ivorian party approved the loan conditions proposed by the Bank. The
Government has set up organs charged with implementing the project as set out in paragraphs 26 to 29
of this memorandum. Concerning ongoing operations, it is worth noting that the energy sector project
portfolio in Côte d’Ivoire comprises three operations amounting to UA 96.13 million: two national
private sector operations (the CIPREL Plant Extension Project and the AZITO Plant Extension Project),
and one regional public sector project (the Côte d’Ivoire-Liberia-Sierra Leone-Guinea Interconnection
Project). The two private sector operations were approved in July 2013 with disbursement rates at 74%
and 100%, respectively. The facilities financed are already operational. The public sector project was
approved on 6 November 2013 and the financing agreement signed on 23 November of the same year.
The regional project is behind schedule mostly due to the Ebola epidemic that affected the other three
countries concerned. The disbursement rate for the national component stands at 37%. It is expected
that works will be completed during the first half of 2017.
H. Consultation Process and Ownership by the Country
10. The Government initiated a consultation process with communities living in the project areas,
allowing them to express their main concerns, the most important of which were taken into account in
the project design. These mainly related to their financial difficulties in paying connection charges, their
fear of seeing the project being implemented without compensation for affected persons, fear of
accidents occurring as a result of the mishandling of electricity and the need for financial support to
4
create income-generating activities through the use of electricity. To address these concerns, the project
will finance: (i) household connections by using the payment mechanisms provided for under the
Electricity-for-All Programme (PEPT); (ii) support to people in situations of vulnerability who are
members of women’s and youth associations in their agricultural production, agricultural product
processing and fish-farming revival activities; and (iii) an information, education and communications
(IEC) campaign to provide the population with the necessary information for the efficient use of
electricity. Concerning compensation, works on any given zone cannot be undertaken without prior
recompense of affected persons in the zone.
11. Project ownership by the Ivorian party is highlighted by its inclusion in the National
Development Plan (PND 2016-2020), the Public Investment Programme (PIP 2015-2020), the
Electricity Production – Transmission Master Plan and the 2017 National Budget. The country has
mobilized the necessary resources to prepare the feasibility studies, environmental and social impact
assessments and detailed designs of the main project components, and for the acquisition of land for the
construction of the Duékoué, Zagné and Bingerville sub-stations. Lastly, the project sponsor, CI-
ENERGIES, has formed a project preparation team at its Equipment and Development Department. The
team comprises the Head of the Transmission Division, Head of the Distribution Division, two
employees from the Markets and Logistics Department, an employee of the Finance and Accounting
Department and an employee of the Studies and Planning Department. This team supervised the above-
mentioned feasibility studies and prepared the requests for proposals for the recruitment of contractors
and service providers.
Project Target Areas, Beneficiaries and Selection Criteria
12. The project concerns three of the countries districts: the Autonomous District of Abidjan for
the Bingerville sub-station, the Montagnes District for the Duékoué-Zagné line and related sub-stations
as well as the electrification of 252 rural localities, and the Bas-Sassandra District for the Soubré-San
Pedro line and related sub-stations. The 252 localities are located in Cavally (42), Guémon (82) and
Tonkpi (128) regions. Project sites were selected in compliance with the National Investment Plan,
which anticipates the entry into service of sub-stations and lines planned under the project in 2017. The
Soubré-San Pedro line meets the need to increase transmission capacity to San Pedro to meet the ever
increasing demand and safeguard the town’s power supply. Currently, San Pedro is supplied by a 225kV
line from Soubré (operated at 90 kV) and without back-up supply if it were to be out of service for
scheduled or unpredicted reasons. The construction of the Duékoué and Zagné sub-stations is justified
by the need to offload the Man sub-station which supplies them by long overloaded medium-voltage
lines subject to significant voltage drops. Such occurrence affect the quality of service in these towns
and their hinterland. The projected real estate development and population growth in Bingerville
captured as part of the Abidjan District Development and Expansion Plan, requires high quality supply.
The Rivera sub-station which currently supplies Bingerville is saturated. As regards rural
electrification, the localities to be electrified were selected based on the criteria for the national rural
electrification programme which targets localities with over 500 inhabitants. The Bank’s dialogue with
the country led to consideration of rural localities located in the low access area concerned by the
transmission network reinforcement works. This resulted in the selection of the three regions of
Montagnes District.
13. The direct beneficiaries of the rural electrification component are the inhabitants of 252
localities estimated at 245,000 people comprising 54.1% men and 45.9% women; persons aged under
15 account for 41.8% of the beneficiaries5. The other project beneficiaries are economic operators whose
activities could be launched or increased as a result of the availability of electricity as well as urban
communities whose quality of life will improve thanks to the infrastructure created by the project. Basic
social facilities in rural localities, in particular schools and health centres, will benefit from electricity,
thus improving the quality of service delivery to the population. Other direct beneficiaries will be CI-
5 Results of the 2014 General Population and Housing Census
5
ENERGIES and CIE due to higher turnover as a result of increased quantities of electricity sold and the
reduction of losses.
II PROJECT COST AND FINANCING
A. Estimated Project Cost and Financing Arrangements
14. The total project cost is EUR 162.14 million. The Bank’s contribution to the project’s financing
is estimated at EUR137.82 million, i.e. 85% of the total cost. The remainder, i.e. EUR24.32 million,
will come from the counterpart funding. The Bank’s contribution will be through a Bank Group ADB
sovereign window loan. Use of this financing instrument is justified by the depletion of the ADF
allocation for Côte d’Ivoire when the Government’s request was received and the opportunity provided
by the country’s eligibility for the ADB window. The detailed project cost tables (costs by expenditure
category and by sources of financing) are presented in Annex 2.
B. Coordination of Joint Project Donors
15. The project is financed by the Bank and the Government, with no other donor as co-financier.
However, this project is part of a vast programme which is financed by several technical and financial
partners (TFP), in particular Chinese Cooperation, the European Union and the World Bank. This
programme covering the 2014-2020 period, concerns the rehabilitation and reinforcement of
transmission networks as well as the extension of distribution networks to improve the electricity access
rates of rural and peri-urban communities. Chinese Cooperation (EXIM BANK CHINA), through the
project to construct the SOUBRE hydro-power plant evacuation system, is currently financing to the
tune of EUR 80.7 million (ongoing works) the Soubré – Taabo and Taabo - Yopougon 2 (Abidjan)
transmission lines as well as the necessary works for the Soubré, Taabo and Yopougon sub-stations.
Through the Project to Upgrade and Rehabilitate Côte d’Ivoire’s Electricity Network, the same Chinese
Cooperation (EXIM BANK OF CHINA) is financing to the tune of USD 818.6 million, the construction
of 13 new high voltage sub-stations, the rehabilitation and extension of 12 former ones, the construction
of 1 681 km of high voltage lines and the electrification of 500 rural localities. The World Bank is
preparing its Electricity Transmission, Distribution and Access Project for USD 250 million. This
project concerns the construction of 56 km of 225 kV lines, the construction of 2 x 225kV lines, the
upgrade to 225kV of 3 stations from 90kV, the supply and installation of transformers in the 5 sub-
stations, the reinforcement of 10 x 90kV sub-stations, the extension and reinforcement of distribution
networks in 10 regional administrative headquarters, the underground installation of 400 km of
Abidjan’s overhead HVA grid, and rural electrification of 200 rural localities.
16. The TFPs operating in the energy sector have a consultative framework chaired by the
European Union Delegation. This framework allows discussion on each partner’s activities with a view
to creating synergy among their respective operations and preventing the duplication of efforts. The
appraisal mission coincided with the World Bank’s preparation mission. In collaboration with CI-
ENERGIES, the two teams agreed on the scope of their respective interventions.
III. PROJECT FEASIBILITY
A. Project Economic and Financial Performance
17. The project submitted for Bank financing is a project to reinforce transformer sub-stations and
construct transmission lines in order to connect households and wood and agricultural product
processing industries. The immediate unfulfilled power needs of industries are estimated at 70 MW,
representing annual consumption of 360 GWh. In addition to industrial customers, the project will
connect about 20 000 households in rural areas, 7 000 in the town of San Pedro (awaiting connections
as a result of the saturation of the town’s existing sub-station) and 1 000 new customers in Bingerville.
In addition, the improved quality of service delivery and availability of energy will create 350 new
household subscribers in the towns of Duékoué, Zagné and Guiglo. Based on these scenarios, the
6
project’s financial rate of return will be 11.12%, significantly above the average cost of resources which
is below 5%. The project economic analysis was carried out on the basis of the economic rate of return
(ERR). The ERR calculation is based on the economic costs (investment, operating and maintenance
costs adjusted by conversion factors) and the expected economic benefits of the project, in particular,
those from the sale of electricity to new customers (households and industries), reduction of losses from
saturated lines and sub-stations, and valuation of the reduction in the level of non-distributed energy
following the rehabilitation of transformer sub-stations and construction of transmission lines. The ERR
will be 25.01% and exceeds the economic cost of capital estimated at 10% in April 2016.
B. Sensitivity of Project’s Financial and Economic Performance
18. The sensitivity of the project’s economic and financial performance was analysed in relation
to: (i) a 10% increase in investment costs; (ii) a 10% increase in the cost price of electricity and operating
costs; and (iii) a 10% reduction in the average selling price of electricity. This analysis shows that the
financial rate of return exceeds 5% in every case and that the economic rate of return, while more
sensitive to a drop in the average selling price of electricity than the other factors, remains above the
economic cost of capital estimated at 10%, thus confirming the project’s economic and financial
viability.
C. Environmental and Social Impact
19. The project has been classified in Environmental Category 1. The country has carried out the
project environmental and social assessments, which have been disclosed at national level. The project
has obtained certificates of acceptability issued by the National Environmental Agency. The summary
of these documents were published on the Bank’s website on 15 April 2016 and are accessible by
clicking on the following link:
http://baobab.afdb.org/oivpdept/ONEC/_layouts/15/WopiFrame2.aspx?sourcedoc=/oivpdept/ON
EC/Shared%20Documents/CI%20PRETD_resume%20EIES%20_FR.docx&action=default and
http://baobab.afdb.org/oivpdept/ONEC/_layouts/15/WopiFrame2.aspx?sourcedoc=/oivpdept/ON
EC/Shared%20Documents/CI%20PRETD_%20resume%20PCR_FR.docx&action=default
20. The project’s main negative impacts relate to removal of all obstacles from the corridor (crops
and trees), which will require the clearing of 12 ha of degraded secondary forests, 1 ha of rubber and
cocoa plantations, and 269 ha of fallow land and crops. These impacts on the human environment
concern 2 158 affected assets, the temporary loss of seasonal harvests, health risk, especially an increase
in the prevalence of STD, an increase in the risk of accidents to the population and labour, and the
deterioration of living conditions during the works phase. The most significant positive impact is the
rural electrification of 252 localities that will reduce pressure on forests - currently the main source of
energy.
21. The 2,158 properties include 1,100 built structures (1,068 for the 128-km long Soubré-San Pedro
corridor and 32 for the 78-km long Duékoué-Zagné corridor), 57 uncultivated plots and 986 cultivated
plots (717 for the Soubré-San Pedro corridor and 284 for the Duékoué-Zagné corridor). The
compensation measures are as follows: (i) for built structures, housing and/or facilities located along
the line, compensation based on the replacement value of the property, including the cost of land; (ii)
for lessees of housing located along the line, rehousing assistance; (iii) for land owners affected by the
installation of pylons, payment of customary rights on the area appropriated; (iv) for farmers,
compensation for loss of crops incurred during the construction of the line, including loss of crops not
tolerated during the operations phase because they could present a danger to equipment operators (tall
crops); (iv) for owners of parcelled land who can no longer build without consent from the network
operator to pursue construction, compensation based on the value of the land; and (v) for all land owners,
compensation for overhang to compensate for restrictions linked to the line’s right-of-way. The
population impacted will not relocate from their villages. Public consultation and studies have concurred
on the availability of customary land in the villages concerned.
7
22. The compensation and mitigation measures for the negative impacts and optimization measures
for the positive impacts have been implemented and an ESMP prepared. The cost of compensation is
UA 6.9 million and represents almost 5.3% of the project cost. Evidence of the payment of
compensation as the works progress will be a loan condition. In any event, prior to any start-up of works
in a given area, evidence of the compensation of project affected persons in that area in compliance with
the Resettlement Action Plan (RAP), the Environmental and Social Management Plan (ESMP), and the
Bank’s related Rules and Procedures, in particular its Involuntary Resettlement Policy and its Integrated
Safeguards System, will be a pre-requisite.
D. Climate Change
23. The project’s main positive impacts on climate change are the reduction of 1 200 tonnes of
CO2 following the closure of diesel-fired plants and access to electricity for the population. The project
will provide a less-polluting alternative to the use of wood fuels (fuelwood and charcoal) and kerosene
lamps, which currently represent the main source of energy and lighting. The risks of climate change
on the project were examined and could concern flooding as well as erosion and landslides in the area
where the structures, sub-stations and transmission line pylons will be constructed. However, the lines
and sub-station sites were selected so as to avoid flood-prone areas. Furthermore, the project areas
present a gradual relief, which considerably mitigates the risk of landslides.
E. Gender
24. The project's rural areas are experiencing a situation of gender-based inequality reflected, on
the one hand, by women’s difficulties in accessing electricity and, on the other hand, by the fact that
women are not usually considered household heads and normally do not have access to land legally;
this can undermine the ability to be compensated even when their livelihoods are affected by the project.
Indeed, limited access to electricity is not only due to the unavailability of electricity but also to the lack
of financial resources of households to be connected and to pay the utility bills. For this project, the
issue of subscription is addressed by use of the PEPT mechanism which will cover the subscription
costs estimated at CFAF 150,000 with households paying only CFAF 1,000 francs at subscription. The
balance will be paid over ten years through the utility bills.
25. To enable women cope with the electricity consumption costs, the project will assist (especially
women) groups in processing and trade in farm products in the cassava, rice and fish sub-sectors in the
Montagnes District through the procurement of modern electrical instead of diesel machines. The
project will finance the rehabilitation of the Dompleu hatchery in the Man Department to ensure the
availability of fingerlings and fish feed for fish farming cooperatives made up mostly of women and
youth. This activity will employ 600 women in fish production and marketing. FAO/Côte d'Ivoire,
which will be responsible for providing assistance to associative groups, will propose an individual and
community coaching programme on managing small production units to be provided in order to sustain
the outcomes of the proposed support.
IV. PROJECT IMPLEMENTATION AND MANAGEMENT
A. Governance
26. Société des Energies de Côte d’Ivoire (CI-ENERGIES) will be the project’s executing agency
under the authority of the Ministry of Energy. CI-ENERGIES is a State-owned company responsible
for planning and implementing public investment projects in the electricity sector. It will establish a
Steering Committee (SC) and a Project Implementation Unit (PIU). A Steering Committee (SC), a
Monitoring Committee and a Project Implementation Unit (PIU) will be established. The Steering
Committee and the Monitoring Committee will be established by Inter-ministerial Order of the Minister
in charge of Energy and the Minister of Planning and Development. Members of the Project
Implementation Unit will be appointed by the General Manager of CI-ENERGIES from among in-house
staff depending on their competence.
8
27. The Steering Committee will be composed of the Chiefs of Staff of the following Ministries or
their representatives: Ministry of Petroleum and Energy who will be the chair, Ministry of Planning and
Development (Vice-Chair), Ministry attached to the Prime Minister’s Office in charge of the Economy
and Finance, Ministry attached to the Prime Minister’s Office in charge of the Budget and State
Portfolio, Ministry of Agriculture and Rural Development and the Ministry of the Environment and
Sustainable Development and the General Manager of CI-ENERGIES, which will provide secretariat
services. This Committee will be responsible for approving strategic changes to the project; removing
administrative obstacles the project may face, including the mobilization and disbursement of
counterpart resources and lifting constraints to the exemption process.
28 The Monitoring Committee will be composed of directors of the Directorate General of Energy,
CI-ENERGIES and CIE, the Directorate General of Budget and Finance, the Directorate of Public Debt
and the Directorate of Public Investment Programmes. The Director of Equipment and Development at
CI-ENERGIES will be Chair.
29. Based in Abidjan, the Project Implementation Unit will be responsible for routine, technical,
administrative and financial management, and comprises the following experts: a coordinator, a
procurement expert, a sub-station engineer, a transmission line engineer, a rural electrification engineer,
an engineer responsible for studies, a monitoring/evaluation expert, an environmentalist, an
administrative and financial officer, a driver, an assistant and a representative of the Man District
Regional Agricultural Department to be responsible for monitoring PSV support actions. The Project
Implementation Unit will report to the Steering Committee through reports such as minutes of meetings,
status reports, mid-term review reports, final evaluation reports and the project risk assessment report.
The PIU Coordinator will make a presentation at the quarterly meetings of the Steering Committee or
at any other meeting the Steering Committee may consider useful to organize to review the project’s
progress. The Steering Committee will report regularly to the CEO of CI-ENERGIES on the project
status.
B. Implementation Schedule
30. The project will be implemented over a 36-month period. The project implementation activities
began in June 2016 with the issuing of invitations to bid for works and submit expressions of interest
for the recruitment of the works control mission. The project uses the advance contracting procedure.
The detailed project implementation schedule is presented in Annex 3.
C. Procurement Strategy and Plan
31. Procurement of goods, works, supplies and consultancy services will be made in accordance
with the Bank’s new Procurement Policy approved on 14 October 2015 and effective since 1 January
2016.
32. The national procurement system, the capacity of local firms operating in the electricity sector
as well as the procurement experience and capacity of CI-ENERGIES were assessed. This triple
assessment showed that CI-ENERGIES has the required capacity to carry out the project’s planned
procurement activities and that there were sufficient local or regional enterprises capable of
implementing the low and medium voltage works. However, there were not enough of such enterprises
to guarantee healthy competition for the high voltage works.
- The Bank’s procurement system will be used for the procurement of works for the high
voltage lines and sub-stations, consulting engineering and auditing services. For the
procurement of other works and consulting services, the AfDB system will be used in
compliance with the Procurement Policy for Bank Group Funded Operations dated 14
October 2015.
9
- The National Procurement System will be used for all procurements (except for those for
people in situations of vulnerability); rural electrification work and connections, HVA
grid works, tele-control and telecommunications equipment; services of consultants to
carry out feasibility studies on four future projects, capacity building as well as
information, education and communication.
- Agencies of the United Nations System, in this case FAO, for the procurement of goods
and small works in favour of vulnerable individuals in accordance with paragraph 5.3 (e)
of the Bank’s Procurement Policy approved in October 2015.
The Table in Annex 4 shows the proposed procurement system and method for each procurement. A
procurement plan has been prepared and can be accessed using the following link:
http://baobab.afdb.org/oivpdept/ONEC/_layouts/15/WopiFrame2.aspx?sourcedoc=/oivpdept/ONEC/S
hared%20Documents/Projet%20PRETD_Plan%20de%20passation%20de%20march%C3%A9s%20(0
04).pdf&action=default
33. The country sought and obtained the Bank’s agreement to use the Advance Contracting
procedures. Invitations to bid for the procurement of rural electrification works and to submit proposals
for the works control and supervision mission were published in June of this year, bids and proposals
have been received and their evaluation is nearing completion. Invitations to bid for transmission
network reinforcement works were published in August of this year.
D. Financial Management
34. CI-ENERGIES, the project executing agency, will be responsible for managing the project
funds. An independent auditing firm will be recruited for the annual auditing of the project accounts
based on the Bank’s standard terms of reference. The audit costs will be financed from the loan
resources. In addition, the Internal Audit Unit of CI-ENERGIES will perform the project account audit
as part of its duties. This unit issues an annual audit plan, which includes both the operation of CI-
ENERGIES and the projects implemented by the company. It is worth noting that the different reports
(portfolio review and 2013-2017 CSP Mid-Term Review) show that to-date, there have been no cases
among Bank Group funded projects of non-compliance with the Bank Group’s financial management
rules and procedures. The project’s detailed financial schedule was prepared and can be accessed via
the link in Annex 1.
E. Monitoring and Evaluation
35. The monitoring and evaluation plan was prepared by CI-ENERGIES and approved by the Bank
Group. It will be implemented by the PIU with the support of CI-ENERGIES’ Monitoring and
Evaluation Division. At project start-up, the PIU will update the values of the project indictors set out
in the results-based logical framework. Upon completion, the project’s final evaluation will be carried
out by a firm on a contractual basis.
F. Sustainability
36. The sustainability of the infrastructure established under the project will be guaranteed by the
resources generated by power sales. This infrastructure will form part of the entire state-owned
electricity assets, currently managed by CIE under a 15-year lease contract signed in 1990 and renewed
in 2005 for the same duration. Under this contract, CIE is responsible for all the operating, routine
maintenance and management costs as well as implementation of maintenance work. CIE has the
necessary skills to operate the project facilities efficiently. Furthermore, for a power utility, CIE’s main
efficiency indicators such as energy sold/employee (0.52 GWh/employee), installed capacity per
employee (2.61 MW/employee), number of customers per employee (3.24 customers/ employee) and
the recovery rate (93%) exceed the averages for Africa. The reinforcement and extension of the grids
10
will increase maintenance costs but the project aims to minimize them by procuring equipment that is
similar to or compatible with that currently used on the Ivorian network, thereby reducing spare part
stocks.
G. Risk Management
37. Risks linked to the achievement of project outputs and outcomes: The significant volume
of work at CI-ENERGIES following the simultaneous implementation of several large-scale projects,
namely: the Soubré Hydropower Plant, the Project for the Development and Rehabilitation of Côte
d’Ivoire’s Power Network financed by the Exim Bank of China for USD 800 million and World Bank’s
Electricity Access, Transmission and Distribution Project for USD 250 million). Plans have been made
to recruit a control mission to support CI-ENERGIES and use young professionals, counterparts of the
control mission experts, who will be paid from the project’s counterpart funds for project monitoring in
support of CI-ENERGIES teams. Moreover, the weak performance of contractors in works
implementation and administrative red tape in granting authorizations for exemptions from customs
duties and other tax charges on project equipment and materials could delay project implementation.
These risks will be mitigated by the qualification criteria for firms designed to eliminate those without
the required expertise, and also by the establishment of a tax unit charged with monitoring exemption
documents at the CI-ENERGIES Markets and Logistics Department.
38. Impact-related risks: The failure to connect rural households in the event of the unavailability
of counterpart funding to finance that activity and unequal access to electricity linked to gender or
situations of vulnerability. As a result of the central government’s commitment to provide the population
with access to electricity under the PEPT and from government funds, 90 000 rural households were
connected to the power grid between March 2014 and December 2015. The project will also finance the
income-generating activities of associations in situations of vulnerability to help provide them with the
necessary resources to cover their electricity costs.
V. LEGAL INSTRUMENTS AND AUTHORITY
A. Legal Instrument
39. The Bank and Côte d’Ivoire will sign a loan agreement in line with the conditions of the Bank
Group’s ADB sovereign window.
B. Conditions Associated with Bank’s Intervention
40. The Bank’s financing is subject to the following conditions:
Conditions precedent to Board presentation: the project’s presentation to the Board shall be subject to
the Borrower’s fulfilment of the following conditions, to the Bank’s satisfaction: (i) provide evidence
of the appointment of members of the Project Implementation Unit; and (ii) provide evidence of the
opening of the two bank accounts for the payment of counterpart resources and loan resources meant
for training;
Conditions precedent to loan effectiveness: effectiveness of the loan agreement shall be subject to the
Borrower’s fulfilment of conditions stipulated in Section 12.01 of the General Conditions Applicable
to Bank Loan Agreements and Guarantee Agreements.
Conditions precedent to first loan disbursement: in addition to effectiveness of the loan agreement, the
first loan disbursement shall be subject to fulfilment by the Borrower of the following condition: (i)
provide a copy of the loan resources on-lending agreement signed between the Republic of Côte d’Ivoire
and CI-ENERGIES.
11
Other conditions: the Borrower shall also fulfil, to the Bank’s satisfaction, the following condition: (i)
provide as the works progress, and no later than works start-up in the area concerned, evidence of the
compensation of project affected persons in that area in accordance with the Resettlement Action Plan
(RAP), the Environmental and Social Management Plan (ESMP), and the Bank’s relevant Rules and
Procedures, especially its Involuntary Resettlement Policy and its Integrated Safeguards System; and (ii)
provide, no later than six (6) months after the first disbursement, evidence of establishment of the Project
Steering Committee and the Project Monitoring Committee, as well as evidence of appointment of their
members.
Undertakings: the Borrower shall, to the Bank’s satisfaction, undertake to: (i) implement the Project,
the RAP and the ESMP, and have them implemented by the Executing Agency and its contractors in
accordance with: (a) the Bank’s rules and procedures; (b) national law; and (c) the recommendations,
specifications and procedures contained in the RAP and the ESMP; (ii) not start up any work on specific
areas without ensuring that project affected persons have been fully compensated; and (iii) provide the
Bank with half-yearly RAP and ESMP implementation reports, including, if necessary, weaknesses and
remedial actions taken or to be taken.
VI. RECOMMENDATIONS
41. Management recommends that the Board of Directors approve the proposal for an ADB
sovereign loan of EUR 137.82 million (UA 110 million) to the Republic of Côte d’Ivoire to finance the
Transmission and Distribution Networks Reinforcement Project on the terms and conditions set forth in
this Memorandum and its annexes.
I
Annex 1: Web Links to Annexes
a) Link to the Country Strategy Paper (2013-2017 CSP) :
http://baobab.afdb.org/oivpdept/ONEC/_layouts/15/WopiFrame.aspx?sourcedoc=/oivpdept
/ONEC/Shared%20Documents/RCI%20-%20DSP%202013-
17%20%20RPP%20(2).pdf&action=default
b) Link to the Project Due Diligence Report:
http://baobab.afdb.org/oivpdept/ONEC/_layouts/15/WopiFrame.aspx?sourcedoc=/oivpdept
/ONEC/Shared%20Documents/Rapport%20de%20v%C3%A9rifications%20pr%C3%A9al
ables%20_rev%20az.docx&action=default
c) Link to the Detailed Project Implementation Plan (PDEP), which has been prepared:
http://baobab.afdb.org/oivpdept/ONEC/_layouts/15/WopiFrame.aspx?sourcedoc=/oivpdept
/ONEC/Shared%20Documents/PDEP-
du%20PRETD%20Version%20du%2008%2006%202016-V2%20(1).docx&action=default
d) Link to the Procurement Plan, which has been prepared:
http://baobab.afdb.org/oivpdept/ONEC/_layouts/15/WopiFrame.aspx?sourcedoc=/oivpdept
/ONEC/Shared%20Documents/PRETD%20PLAN%20DE%20PASSATION%20DE%20M
ARCHE.xlsx&action=default
e) Link to the Full Resettlement Plan Summary (English): http://www.afdb.org/fileadmin/uploads/afdb/Documents/Environmental-and-Social-
Assessments/Cote_d%E2%80%99Ivoire_-
_Grid_reinforcement_and_rural_electrification_project_-_Summary_RAP_-_04_2016.pdf
f) Link to the Environmental and Social Impact Assessment Summary (English) :
http://www.afdb.org/fileadmin/uploads/afdb/Documents/Environmental-and-Social-
Assessments/Cote_d%E2%80%99Ivoire_-
_Grid_reinforcement_and_rural_electrification_project_-_Summary_ESIA_-_04_2016.pdf
g) Link to the Environmental and Social Impact Assessment Summary (French):
http://www.afdb.org/fileadmin/uploads/afdb/Documents/Environmental-and-Social-
Assessments/Cote_d%E2%80%99Ivoire_-
_Projet_de_renforcement_du_r%C3%A9seau_de_transport_et_d%E2%80%99%C3%A9le
ctrification_rurale_-_R%C3%A9sum%C3%A9_EIES_-_04_2016.pdf
h) Link to the Full Resettlement Plan Summary (French):
http://www.afdb.org/fileadmin/uploads/afdb/Documents/Environmental-and-Social-
Assessments/Cote_Ivoire-
Projet_de_renforcement_du_r%C3%A9seau_de_transport_et_d%C3%A9lectrification_rur
ale-Resume_PCR.pdf
II
Annex 2 :Map of Project Area
The perimeters framed by a dashed line represent the project area
III
Annex 3: Detailed Project Costs
Project Cost by Expenditure Category
Expenditure Categories
EUR Million
% F.E. F.E. L.C. Total
Works 117.96 13.11 131.06 90%
Goods 0.00 0.90 0.90 0%
Services 6.32 2.71 9.02 70%
Operation 1.12 0.48 1.58 70%
Compensation of PAPs 0.00 7.56 7.56
Total Base Cost 125.39 24.75 150.12 84%
Provision for Contingencies 6.27 1.24 7.51 84%
Provision for Price Escalation 3.76 0.74 4.51 84%
Total Project Cost 135.41 26.73 162.14 84%
Project Sources of Financing
Sources of Financing
EUR Million
% Total F.E. L.C. Total
ADB 121.11 16.70 137.82 85%
GOVERNMENT 14.30 10.01 24.32 15%
Total Project Cost 135.41 26.73 162.14 100%
Project Cost by Expenditure Category and Source of Financing
Expenditure Categories EUR Million
ADB GVT Total
Works 118.03 13.03 131.06
Goods 0.09 0.00 0.90
Services 8.68 0.34 9.02
Operation 0.00 1.58 1.58
PAP Compensation 0.00 7.56 7.56
Total Base Cost 127.62 22.52 150.12
Provision for Physical Contingencies 6.38 1.13 7.51
Provision for Price Escalation 3.83 0.68 4.51
Total Project Cost 137.82 24.32 162.14
IV
Expenditure Schedule/Source of Financing
OUTPUTS 2017 2018 2019 TOTAL
AfDB Gov. Total AfDB Gov. Total AfDB Gov. Total AfDB Gov. TOTAL
Works 53.11 5.86 58.98 41.31 4.56 45.87 23.61 2.61 26.21 118.03 13.03 131.06
Goods 0.35 0.00 0.35 0 .34 0.00 0.34 0.21 0.00 0.21 0.90 0.00 0.90
Services 3.36 0.12 3.48 3.06 0.12 3.18 2.26 0.10 2.36 8.68 0.34 9.02
Operation 0.00 0.71 0.71 0.00 0.47 0.47 0.00 0.40 0.40 0.00 1.58 1.58
Compensation of
PAPs 0.00 3.40 3.40 0.00 2.27 2.27 0.00 1.89 1.89 0.00 7.56 7.56
Total base cost) 56.82 10.09 66.91 44.71 7.42 52.13 26.08 5.00 31.07 127.61 22.51 150.12
Physical
contingencies
(5%) 2.84 0.50 3.35 2.24 0.37 2.61 1.30 0.25 1.55 6.38 1.13 7.51
Price escalation
(3%) 1.70 0.30 2.01 1.31 0.22 1.56 0.78 0.15 0.93 3.83 0.68 4.51
TOTAL 61.37 10.89 72.27 48.29 8.01 56.30 28.16 5.40 33.56 137.82 24.32 162.14
V
Annex 4: Project Implementation Schedule
Project Activities 2016 2017 2018 2019
J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A J J
Approval and Effectiveness
Approval by BD
Loan Agreement Signature
Loan Agreement Effectiveness
Electricity Infrastructure
Bingerville Sub-Station
Recruitment of Contractors
Works Implementation
Duékoué-Zagné Line and Sub-
Stations
Recruitment of Contractors
Works Implementation
Duékoué and Zagné Telecoms
Recruitment of Contractors
Works Implementation
Soubré-San Pedro Line and Sub-
Stations
Recruitment of Contractors
Works Implementation
Soubré and San Pedro Telecoms
Recruitment of Contractors
Works Implementation
Restructuring of HVA networks
Recruitment of Contractors
Works Implementation
Cavally Rural Electrification
Recruitment of Contractors
Works Implementation
Guémon Rural Electrification
Recruitment of Contractors
Works Implementation
Tonkpi Rural Electrification
Recruitment of contractors
Recruitment of consultant
Works Control Mission
Recruitment of mission
Control and supervision
Studies on Future Projects
Recruitment of Consultant
Conduct of Studies
Support to PSV
Signature of Agreement
Service Delivery
Training
Recruitment of Training Firms
Conduct of training
Project Management
VI
Annex 5: Procurement Systems and Methods
Note: figures in parenthesis […] in the table refer to non-AfDB resources
No. Expenditure
Category Description
Lot Cost
(EUR
million)
Procurement
System
Procurement
Method
Works
Establishment of
Bingerville Source Sub-
Station 1
Installation of 3
225/20 kV 50
MVA
transformer bays
8.29 AfDB OCB6
Construction of Duékoué-
Zagné 225 kV line 3
Lot 1:
Construction of
225/33 kV 2x40
MVA sub-station
in Duékoué
10.24 AfDB OCB
Lot 2:
Construction of
Duékoué- Zagné
225 kV line (77
km) and looped
connection to the
Duékoué sub-
station on the
Buyo-Man line
12.36 AfDB OCB
Lot 3:
Construction of
the Zagné 225/33
kV 2x24 MVA
sub-station
9.20 AfDB OCB
Doubling of Soubré-San
Pedro line
3
Lot 1: Extension
of Soubré Sub-
Station
1.57 AfDB OCB
Lot2: San Pedro -
Soubré 225 kV
line (128 km)
19.09 AfDB OCB
Extension and
reinforcement of
225/90 kV sub-
stations,
including 2x
225/90 kV 100
MVA
transformers in
San Pedro
10.55 AfDB OCB
Delivery and assembly of
tele-control and
telecommunications
equipment
2
Duékoué and
Zagné sub-
stations
1.14 ADB ICB7
Soubré and San
Pedro sub-station 0.82 ADB ICB
Restructuring of HVA
networks
2
Lot 1: Bingerville
HVA networks 4.71 ADB NCB8
Telecommunications
equipment for Soubré and
San Pedro sub-stations
Lot 2: Duékoué.
Zagné and Taï
HVA networks
1.96 COUNTRY NCB
Electrification of 42
localities in Cavally
6 Cavally 1
(Blolequin) 1.20 COUNTRY NCB
Cavally 2
(Toulepleu)
[1.71] COUNTRY NCB
Cavally 3 COUNTRY NCB
6 OCB: Open Competitive Bidding 7 ICB: International Competitive Bidding 8 NCB: National Competitive Bidding
VII
(Guiglo 1) 1.26
Cavally 4
(Guiglo 2)
1.35 COUNTRY NCB
Cavally 5 (Taï 1)
[1.11] COUNTRY NCB
Cavally 6 (Taï 2)
1.09 COUNTRY NCB
Electrification of 82
localities in Guémon 11
Guémon 1
(Bangolo 1)
[1.73] COUNTRY NCB
Guémon 2
(Bangolo 2)
1.21 COUNTRY NCB
Guémon 3
(Bangolo 3)
1.95 COUNTRY NCB
Guémon 4
(Bangolo 4)
1.67 COUNTRY NCB
Guémon 5
(Douékoué)
1.96 COUNTRY NCB
Guémon 6
(Facobly 1)
0.75 COUNTRY NCB
Guémon 7
(Facobly 2)
1.47 COUNTRY NCB
Guémon 8
(Kouibly 1 1.09 COUNTRY NCB
Guémon 8
(Kouibly 2
1.47 COUNTRY NCB
Guémon 9
(Kouibly 3
1.10 COUNTRY NCB
Guémon 10
(Kouibly 4
[1.19] COUNTRY NCB
Guémon 11
(Kouibly 5)
[1.25] COUNTRY NCB
Electrification of 128
localities in Tonkpi
13
Tonkpi 1
(Biankouma 1)
1.83 COUNTRY NCB
Tonkpi 2
(Biankouma 2)
1.62 COUNTRY NCB
Tonkpi
3(Biankouma 3)
1.47 COUNTRY NCB
Tonkpi 4
(Sipilou)
1.67 COUNTRY NCB
Tonkpi 5
(Danane 1) 1.85 COUNTRY NCB
Tonkpi 6
(Danane 2)
2.13 COUNTRY NCB
Tonkpi 7(Danane
3)
1.85 COUNTRY NCB
Tonkpi 8
(Danane 4)
1.60 COUNTRY NCB
Tonkpi 9 (Man 1)
[1.86] COUNTRY NCB
Tonkpi 10 (Man
2)
1.37 COUNTRY NCB
Tonkpi 11(Zouan
Hounien 1)
1.14 COUNTRY NCB
Tonkpi 12(Zouan
Hounien 2)
1.16 COUNTRY NCB
Tonkpi 13(Zouan
Hounien 3)
[1.73] COUNTRY NCB
Household connections 1 The 252 localities [4.54] COUNTRY NCB
Rehabilitation of the
Dompleu fry stocking
station and of 20 fish
farms
0.14
United Nations
VIII
2 Services
Consulting Engineering
services for transmission
grid rehabilitation works
-
5.86 ADB QCBS9
Auditing of Accounts 0.09 ADB LCS10
Misc. Training 0.41 COUNTRY QCBS
Information, Education
Communication
[0.33]
COUNTRY QCBS
Preliminary studies on the
Anyama 225/33 kV sub-
station construction
project
0.56
COUNTRY QCBS
Preliminary studies on the
Project to Double the
Abidjan 225 kV loop
COUNTRY QCBS
Preliminary studies on the
construction of the
Tengrela 225/33 kV sub-
station and the Korhogo-
M’bengué – Tengrela –
Boundiali 225 kV high
voltage transmission line
0.56 COUNTRY QCBS
Preliminary studies on the
Project to Construct the
Bouake 3 sub-station and
double the Taabo –
Kossou – Bouaké 2 –
Bouaké 3 225kV line
0.56 COUNTRY QCBS11
3 Goods
Vehicles for PIU (9
vehicles)
[0.25]
COUNTRY NCB
Measurement testing
equipment
[0.10]
COUNTRY SP12
Office supplies [0.10] COUNTRY SB13
Procurement of office
furniture
[0.10]
COUNTRY SP
Vehicle maintenance [0.10] COUNTRY SP
Fuel [0.40] COUNTRY RCB14
Equipment for processing
cassava into attiéke (4)
0.22 United Nations SB15
Equipment for processing
cassava into flour (1)
0.12 United Nations SB
Rice processing
equipment (2)
0.18
United Nations SB
Fish smoking equipment 0.06 United Nations SB
Cold room 0.08 United Nations SB
9 QCBS: Quality and Cost-Based Selection 10 LCS: Least Cost Selection 11 QCBS: Quality-and Cost-Based Selection 12 SP: Simplified Procedures 13 SB: Sealed Bidding 14 LCB: Limited Competitive Bidding 14 SB: Sealed Bidding
15 SB: Sealed Bidding
IX
Annex 5: Justification of Level of Côte d’Ivoire’s Project Counterpart Funding
The proposed project will be jointly financed by the Bank and the Government of Côte d’Ivoire. The Bank’s
contribution covers 85% of the total cost, net of taxes and customs duties, through an ADB loan of EUR
137.82 million (UA 110 million). The estimated counterpart funds are EUR 24.32 million ( UA 19.40
million), i.e. 15% of the project cost. The level of counterpart funding was mutually determined with the
Government based on the following three criteria, in compliance with Section 4.2.2 of the Policy on
Expenditure Eligible for Bank Group Financing (Revised version of 10 December 2014):
i) Country’s Commitment to Implement its Development Programme
Following the implementation of the first National Development Plan (2012-2015 PND) which aimed to lay
the foundations for emergence in the wake of the 2011 post-electoral crisis, Côte d’Ivoire has recently
adopted its second National Development Plan (2016-2020 PND) whose main objective is to lead it towards
emergence by 2020 through a pro-active strategy. The 2016-2020 focuses on the following strategic thrusts:
(i) enhancement of the quality of institutions and governance; (ii) acceleration of human capital development
and social well-being; (iii) acceleration of the economy’s structural transformation through industrialization;
(iv) development of infrastructure evenly distributed nationwide and environmental conservation; and (v)
strengthening of regional integration and international cooperation. The estimated cost of the 2016-2020
PND is CFAF 30,000 billion. Energy sector actions implemented under the 2012-2015 PND raised
generation capacity from 1 391 MW in 2011 to 1 772 MW in 2015, i.e. a 28% increase, helped to rehabilitate
the transmission and distribution networks, and increase the population’s electricity access rate from 77 to
80%.
ii) Financing Allocated by the Country to the Target Sector by Bank Assistance
The estimated cost of the 2016-2020 PND is CFAF 30,000 billion, CFAF 4 589 billion (i.e. 15%) of which
will be allocated to the energy sector. Achievement of the outcomes of strategic thrust (iii) of the 2016-2020
PND and the Government’s determination to provide access to electricity for all by 2020 will require
increased generation capacity and extension of the transmission and distribution networks. According to
Ministry of Petroleum and Energy forecasts, power requirements are expected to reach about 3 000 MW in
2020, up by 69 % on 2015. Given the inherent uncertainty of gas exploration activities, the Government
intends to develop alternative sources, in particular the country’s hydropower potential estimated at 2 500
MW, which will reduce dependency on fossil fuels and the cost of generation. The ongoing construction of
the Soubré plant falls within the framework of this increase in generating capacity and diversification of
energy sources, and will be followed by three others also to be located on the Sassandra River, the ongoing
studies on which are being financed by the Bank.
iii) The Country’s Fiscal Situation and Debt Level
The fiscal policy set out in a medium-term expenditure framework is based on an increase in the expenditure
required to finance infrastructure and other development needs in a post-conflict context. For the past two
years, primary balance equilibrium has been virtually achieved while the overall deficit has been about 3%
of GDP, financed by recourse to regional and international financial markets. The country’s post-conflict
context with vast (re)construction and social and economic (re)insertion needs, coupled with the objective
of accelerated development as set out in the 2016-2020 PND, will continue to weigh heavily on government
finances.
The estimated tax ratio at the end of 2015 was 15.3% of GDP and, according to estimates, is expected to
improve in 2016. Eighty per cent (80%) of the 2016 budget represents domestic resources and 19.7%
external resources; 69.8% of the external resources, estimated at CFAF 988.5 billion, comprises project
loans and 30.2% budget support operations.
Debt restructuring under the HIPC initiative helped to maintain the public debt/GDP ratio at 45.6% in 2015,
with external public debt service representing 12% of central government revenue. Debt remains sustainable
X
according to both the sustainability analysis carried out by IMF services in 2015 and the country risk
assessment undertaken by AfDB services in the same year. The Medium-Term Debt Strategy (MTDS) for
2015-2019, adopted in 2014, will help to maintain this sustainability even if the future accumulation of
external debt, in particular non-concessional debt, must take into account the need to avoid the concentration
of maturities in the mid-2020s, and explore solutions to mitigate the refinancing risk.
iv) Country Financing Parameters
The country's financing parameters (CFP) regarding project cost sharing between the Bank and the Republic
of Côte d'Ivoire is being prepared. While waiting for the Bank to define its own financing parameters, the
still-valid analysis conducted by the World Bank for the Côte d’Ivoire in 2008 can be used. For the World
Bank, financing can attain 100% of the total project cost (including taxes). These parameters have not
changed despite Côte d’Ivoire’s access this year to the “Scale Up Facility” (an intermediate status between
IDA countries and IBRD countries).
In conclusion, based on the foregoing, and at the behest of Government, it is proposed that the national
contribution be fixed at 15% of the total cost excluding taxes for the Project. The contribution of the
Government of Côte d'Ivoire (EUR 24.32 million) for the Project will be used to partially finance the works,
the full cost of expropriations and operation fees of the implementing agency and the tax expenditure
associated with this project related to exemptions from customs duties and other taxes.