World Bank Documentdocuments.worldbank.org/curated/en/173831468014373996/pdf/ICR26760ICR0... · Document of The World Bank Report No: ICR00002676 IMPLEMENTATION COMPLETION AND RESULTS

Document of

The World Bank

Report No: ICR00002676

IMPLEMENTATION COMPLETION AND RESULTS REPORT

(IDA-39510, IDA-44920)

ON A

CREDIT

IN THE AMOUNT OF SDR 31.1 MILLION

(US$45 MILLION EQUIVALENT)

AND

AN ADDITIONAL FINANCING IN THE AMOUNT OF SDR 4.3 MILLION

(US$7 MILLION EQUIVALENT)

TO THE

REPUBLIC OF BENIN

FOR AN

ENERGY SERVICE DELIVERY PROJECT

IN SUPPORT OF THE FIRST PHASE OF THE

ENERGY SERVICES DELIVERY PROGRAM

September 30, 2013

Energy Practice 2

Sustainable Development Department

Country DepartmentAFCF2

Africa Region

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CURRENCY EQUIVALENTS

Exchange Rate Effective August, 13, 2013

Currency Unit= CFAF

US$1.00 = 493CFAF

US$ 1.00= SDR 0.66

FISCAL YEAR

January 1 – December 31

ABBREVIATIONS AND ACRONYMS

ABE Agence Béninoise pour l'Environnement (Benin Environmental

Agency)

AFIC Agence Forestière Inter-Communale (Inter-Communal Agency for

Forest Resource Management)

AfDB

APL

African Development Bank

Adaptable Program Lending

BOAD Banque Ouest Africaine de Développement

CAA Caisse Autonome d’Amortissement

CAS Country Assistance Strategy

CPS Country partnership Strategy

CDM Clean Development Mechanism

CEB Communauté Electrique du Bénin (Benin-Togo Generation and

Transmission Power Company)

CENATEL Centre National de Télédétection et de Surveillance du Couvert

Forestier (National Forest Remote Monitoring Center) CIE Compagnie Ivoirienne d’Electricité

CNCD Commission Nationale des Combustibles Domestiques (National Forest

Cover Remote and Monitoring Center COFORMO Communauté Forestière de la Région du Moyen Ouémé

DGE Direction Générale de l'Energie (Directorate of Energy)

DGFRN Direction de Gestion des Forêts et des Ressources Naturelles

(Directorate of Forests and Natural Resources) ECOWAS Economic Community of West African States

EIB European Investment Bank

ESDP Energy Services Delivery Project

ERR Economic Rate of Return

FCFA Franc de la Communauté Financière d’Afrique (Local Currency)

GEF

GoB

Global Environment Facility

Government of Benin

GWh Giga Watt Hour

HV High Voltage

IAME Increased Access to Modern Energy

IDA

IP

International Development Association

Implementation Progress

iii

kWh Kilo Watt hour

LPG Liquified Petroleum Gas

MDG Millennium Development Goal

MERPMEDER Ministère de l’Energie, des Recherches Pétrolières et Minières, de

l’Eau et du Développement des Energies Renouvelables)

MW MegaWatt

NDF Nordic Development Fund

NEPA Nigerian Electric Power Authority

NGO Non-Governmental Organization

NPV Net Present Value

PDO Project Development Objective

PRSP Poverty Reduction Strategy Paper

SBEE Société Béninoise d’Energie Eléctrique (Benin Distribution

Power Utility)

SDR Special Drawing Rights

SIEF Système d’Information Ecologique et Forestière

SIEP Système d’Information et d’Evaluation Permanente

SIGFIP Système Intégré de Gestion des Finances Publiques (Finance and

Accounting System for Public Finance)

SME Small Medium Enterprise

SSA Sub-Saharan Africa

WAGP West African Gas Pipeline

WAPP West African Power Pool

Vice President: Makhtar Diop

Country Director: Madani M. Tall

Sector Manager: Meike van Ginneken

Project Team Leader: Franklin Koffi S.W. Gbedey

ICR Team Leader: Vonjy M. Rakotondramanana

iv

v

BENIN

ENERGY SERVICE DELIVERY PROJECT

CONTENTS

Data Sheet

A. Basic Information

B. Key Dates

C. Ratings Summary

D. Sector and Theme Codes

E. Bank Staff

F. Results Framework Analysis

G. Ratings of Project Performance in ISRs

H. Restructuring (if any)

I. Disbursement Profile

1. Project Context, Development Objectives and Design ............................................................... 1

2. Key Factors Affecting Implementation and Outcomes .............................................................. 8

3. Assessment of Outcomes .......................................................................................................... 14

4. Assessment of Risk to Development Outcome ......................................................................... 21

5. Assessment of Bank and Borrower Performance ..................................................................... 22

6. Lessons Learned........................................................................................................................ 25

7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners........................... 26

Annex 1. Project Costs and Financing .......................................................................................... 27

Annex 2. Outputs by Component.................................................................................................. 28

Annex 3. Economic and Financial Analysis ................................................................................. 33

Annex 4. Bank Lending and Implementation Support/Supervision Processes ............................. 37

Annex 5. Summary of Borrower's ICR and/or Comments on Draft ICR ..................................... 39

Annex 6. List of Supporting Documents ...................................................................................... 60

vi

Data Sheet

A. Basic Information

Country: Benin Project Name: BJ-Energy Service

Delivery APL (FY05)

Project ID: P079633 L/C/TF Number(s): IDA-39510,IDA-44920

ICR Date: 09/30/2013 ICR Type: Core ICR

Lending Instrument: APL Borrower: GOVERNMENT OF

BENIN

Original Total

Commitment: XDR 31.10M Disbursed Amount: XDR 29.61M

Revised Amount: XDR 35.40M

Environmental Category: B

Implementing Agencies:

Communauté Electrique du Bénin (CEB)

Société Béninoise d’Energie Electrique (SBEE)

Ministère de l'Energie, des Recherches Pétrolières et Minières et de l'Eau

Cofinanciers and Other External Partners: Government of Benin

West African Development Bank (WADB)

Nordic Development Fund

Société de Gestion Intérimaire

B. Key Dates

Process Date Process Original Date Revised / Actual

Date(s)

Concept Review: 10/08/2002 Effectiveness: 04/25/2005 04/25/2005

Appraisal: 02/23/2004 Restructuring(s):

06/02/2008

06/28/2010

12/30/2011

Approval: 07/06/2004 Mid-term Review: 07/01/2007

Closing: 12/31/2008 12/31/2012

C. Ratings Summary

C.1 Performance Rating by ICR

Outcomes: Moderately Unsatisfactory

Risk to Development Outcome: Moderate

Bank Performance: Moderately Satisfactory

Borrower Performance: Moderately Satisfactory

vii

C.2 Detailed Ratings of Bank and Borrower Performance (by ICR)

Bank Ratings Borrower Ratings

Quality at Entry: Moderately

Unsatisfactory Government: Moderately Satisfactory

Quality of Supervision: Moderately Satisfactory Implementing

Agency/Agencies: Moderately Satisfactory

Overall Bank

Performance: Moderately Satisfactory

Overall Borrower

Performance: Moderately Satisfactory

C.3 Quality at Entry and Implementation Performance Indicators

Implementation

Performance Indicators

QAG Assessments (if

any) Rating

Potential Problem

Project at any time

(Yes/No):

Yes Quality at Entry

(QEA): None

Problem Project at any

time (Yes/No): Yes

Quality of Supervision

(QSA): None

DO rating before

Closing/Inactive status: Satisfactory

D. Sector and Theme Codes

Original Actual

Sector Code (as % of total Bank financing)

Central government administration 24 24

Sub-national government administration 12 11

Transmission and Distribution of Electricity 64 64

Theme Code (as % of total Bank financing)

Infrastructure services for private sector development 20 20

Land administration and management 20 20

Regulation and competition policy 20 20

Rural services and infrastructure 20 20

Urban services and housing for the poor 20 20

viii

E. Bank Staff

Positions At ICR At Approval

Vice President: Makhtar Diop Callisto E. Madavo

Country Director: Madani M. Tall Pedro Alba

Sector Manager: Meike van Ginneken Yusupha B. Crookes

Project Team Leader: Franklin Koffi S.W. Gbedey Said R. Mikhail

ICR Team Leader: Vonjy M. Rakotondramanana

ICR Primary Author: Vonjy M. Rakotondramanana

F. Results Framework Analysis

Project Development Objectives (from Project Appraisal Document)

The development objectives are to: (a) accelerate, in a commercially viable manner, the use of

electricity for economic growth and social services and thus improve the quality of life in un-

served and underserved areas (peri-urban and rural); (b) improve governance and ensure the

financial sustainability of the sector, through the involvement of the private sector in partnership

with the public sector; (c) reduce deforestation and increase access and diversify choice to

renewable and cleaner fuels to the household and SME sectors; and (d) promote regional

cooperation while protecting the environment in a sustainable manner.

Revised Project Development Objectives (as approved by original approving authority)

The PDOs were not revised throughout the project implementation.

(a) PDO Indicator(s)

**NB. In the table below, the indicators which have been monitored throughout the life of the

project have been disaggregated to better reflect the results for the purposes of the analysis.

Although the data is the same, the presentation below differs from the manner in which the

results have been captured in implementation status reports.

Indicator Baseline Value

Original Target

Values (from

approval

documents)

Formally Revised

Target Values

Actual Value

Achieved at

Completion or

Target Years

Indicator 1 : Reliable electricity supply available for northern Benin through the interconnected grid

from the South.

Value

(quantitative or

qualitative)

Limited power

availability in northern

Benin through diesel

power plant at Parakou

and Djougou which is

often not able to operate

due to lack of diesel.

0GWh supplied from the

Reliable electricity

supply available

for northern Benin

through the

interconnected

grid from the

South.

Reliable power

supplied to northern

Benin through the

interconnected grid

as measured in

GWh supplied from

southern grid and

through higher

89GWh supplied from

the South to northern

Benin through the

newly interconnected

grid.

ix

southern grid. stability of overall

grid as southern

transmission loop

can be fully

operated.

Date achieved 07/31/2004 07/31/2004 06/30/2008 12/31/2012

Comments

(incl. %

achievement)

This target has been achieved.

Indicator 2 : The number of outages in Parakou and Djougou shall amount to an average of no more

than two per month/two hours per outage.

Value

quantitative or

Qualitative)

Inability to manage

southern transmission

loop leading to frequent

outages and under supply

of electricity as power

cannot be jointly

imported from Ghana,

Côte d’Ivoire, and

Nigeria.

Reliable electricity

supply available

for northern Benin

through the

interconnected

grid from the

South.

Reliable power

supplied to northern

Benin through the

interconnected grid

as measured in

GWh supplied from

southern grid and

through higher

stability of overall

grid as southern

transmission loop

can be fully

operated.

Southern transmission

loop fully operated but

the average of less

than two per

month/two hours per

outage in Parakou and

in Djougou has not

been achieved due to

CEB supply capacity

constraint.

Date achieved 07/31/2004 07/31/2004 06/30/2008 12/31/2012

Comments

(incl. %

achievement)

This outcome has not been achieved, although the more loosely defined corresponding

target has been reached.

Indicator 3 : Off-grid strategy completed and approved by MMEH and SBEE concession agreement

signed and implemented.

Value

quantitative or

Qualitative)

SBEE fully publicly

owned and low financial

and technical

performance. No studies

available to expand the

electricity system. No

strategy or policy for off-

grid electrification

Off-grid strategy

completed and

approved by

MMEH and SBEE

concession

agreement signed

and implemented.

Strategy for off-

grid developed and

policy plan for

implementation

endorsed. SBEE

outsources key

areas and its

financial and

technical

performance

improved. Higher

reliability of power

supply in Cotonou

and Porto Novo.

Key feasibility

studies completed

to facilitate closing

the generation/

transmission gap.

Off-grid strategy

developed and

endorsed. SBEE

technical and financial

performance has

improved. Higher

power supply

reliability established

in Cotonou and Porto

Novo as per voltage

fluctuations and power

outage records.

Economic Viability

Study for Adjarala

hydro plant completed.

The update of the

ESIA/RAP is ongoing.

The panel of experts

has been recruited.

Date achieved 07/31/2004 07/31/2004 06/30/2008 12/31/2012

x

Comments

(incl. %

achievement)

This target was partially achieved. The off-grid electrification strategy was completed by

the Government outside of the project and has been implemented. In addition, SBEE

situation has improved. Most planned studies and Adjarala preparatory work were

completed. Nevertheless, SBEE’s financial performance has not improved as much as

initially planned, such that privatization was not pursued and the utility has failed to

outsource significant areas of operation to the private sector. In addition, some studies

were only partly completed under the project before being dropped or financed directly

by the Government at project closing.

Indicator 4 : Power provided to northern Benin through the Togolese power grid, as measured in GWh

supplied

Value

quantitative or

Qualitative)

No power provided to

northern Benin through

the Togolese power grid

The construction

of the transmission

line in Bénin and

in Togo will be

completed and

operational

Power provided to

northern Benin

through the

Togolese power

grid, as measured in

GWh supplied

In 2012, 89GWh was

supplied to the

Northern Benin from

the Togolese power

grid

Date achieved 07/31/2004 07/31/2004 06/30/2008 12/31/2012

Comments

(incl. %

achievement)


Indicator 5 : Establishment and effective functioning of the CNCD

Value

quantitative or

Qualitative)

No institutional

frameworks exists

CNCD established

and effective.

CNCD established and

effective.

Date achieved 07/31/2004 07/31/2004 12/31/2012

Comments

(incl. %

achievement)


Indicator 6 : Establishment and effective functioning of the AFIC

Value

quantitative or

Qualitative)

No institutional

frameworks exists

Inter-Communal

Agency for natural

resource

management

established and

effective

Inter Communal

Agency for natural

resource management

(AFIC) established

and effective.

Date achieved 07/31/2004 07/31/2004 12/31/2012

Comments

(incl. %

achievement)

This target has been partially achieved. AFIC has been established but was only

intermittently effective under the project.

Indicator 7 : Natural resource management rights effectively devolved to rural communities

Value

quantitative or

Qualitative)

No institutional

frameworks exists

Natural resource

management rights

effectively

devolved to rural

communities

Natural resource

management rights

effectively devolved.

Date achieved 07/31/2004 07/31/2004 12/31/2012

Comments

(incl. %

achievement)


xi

(b) Intermediate Outcome Indicator(s)

Indicator Baseline Value

Original Target

Values (from

approval

documents)

Formally

Revised Target

Values

Actual Value

Achieved at

Completion or

Target Years

Indicator 1 : Power sector reform completed

Value

(quantitative

or qualitative)

No private sector

engagement in SBEE. No

regulatory agency

intervening. No

communication activity or

strategy in place.

There is a private

sector partner in

SBEE business. A

regulatory

framework is

established.

The Benin public is

well informed about

the power sector

reform restructuring.

SBEE

outsources key

areas of

operation. The

regulatory

agency is set

up. Public well

informed about

GoB energy

policy.

Regulatory agency

has been established

by decree.

Communication and

PR activity on sector

reform has been

completed. SBEE has

opened the

manufacturing and

supply of utility poles

to the private sector.

Date achieved 07/31/2004 07/31/2004 06/30/2008 07/31/2012

Comments

(incl. %

achievement)

This intermediate outcome has been partially achieved. While some reforms have taken

place, significant outsourcing of operations has not yet been achieved and the originally

anticipated private sector participation in SBEE is still under discussion.

Indicator 2 : Engineering studies completed

Value

(quantitative

or Qualitative)

No technical information or

feasibility studies available

on key energy infrastructure

to be developed.

All studies are

launched within the

first year of project

implementation.

The following

studies

completed:

Onigbolo-

Parakou

transmission

line (TL);

Sakete-Porto

Novo TL; Load

management

and energy

efficiency for

government

buildings;

preparatory

studies for

Adjarala; study

for Maria Gléta

as site for

regional power

plant.

The following have

been completed:

Feasibility and

safeguard studies for

Onigbolo-Parakou

and Sakete-Porto

Novo; load

management and

energy efficiency

study for government

buildings; economic

analysis of the

Adjarala hydro

generation project;

terms of reference for

Adjarala engineering

consultant; study for

Maria Gléta site.

Date achieved 07/31/2004 07/31/2004 06/30/2008 12/31/2012

Comments

(incl. %

achievement)

This intermediate outcome has been partially achieved. The preparation of standard

bidding documents for IPPs initially envisaged under the project was started under the

project but dropped at closing, while the establishment of a panel of experts and hiring

of an engineering consultant for Adjarala is still underway, now financed directly by

CEB.

xii

Indicator 3 : Investment component (Transmission and distribution system expanded)

Value

(quantitative

or qualitative)

No 161kV transmission

system in place. Southern

transmission ring cannot be

operated leading to frequent

outages. Voltage

fluctuations above +/- 7%

leading to frequent tripping

of LV network

161kV transmission

system completed

by end 2006. The

Benin Gas turbine

ready to run on

WAGP. Voltage

fluctuations are

within +/- 7%

161kV

transmission

link in place

and fully

operational.

Southern

transmission

ring can be

fully operated

leading to

higher

reliability and

lower frequency

of outages.

Voltage

fluctuations

below +/-7% at

5 substations in

Cotonou and

Porto Novo.

Additional

Financing

allows for the

rehabilitation of

1 sub-station in

addition to the 4

targeted under

the original

project.

161kV transmission

link constructed and

fully operational.

Southern

transmission ring

fully operational with

higher reliability and

lower frequency of

outages. Operator

logs showed voltage

fluctuations were

below +/-7% at 5

substations in

Cotonou and Porto

Novo

Date achieved 07/31/2004 07/31/2004 06/30/2008 12/31/2012

Comments

(incl. %

achievement)

This intermediate outcome has been achieved.

Indicator 4 :

Environmental and social component: populations affected by the transmission line are

compensated and environmental audit is carried out

Value

(quantitative

or Qualitative)

Affected population not

compensated. No

environment audit report for

SBEE. No environmental

audit report for Sèmè Oil

field.

Affected

populations are

satisfied.

environmental audit

report for SBEE is

prepared

Affected

populations are

satisfied.

Environmental

audit report for

SBEE is

prepared.

Environmental

audit for Sèmè

Oil field is

prepared

Compensation has

been completed and

the affected

populations are

satisfied.

Environmental audits

for SBEE and Sèmè

Oil field were

incomplete at project

close.

xiii

Date achieved 07/31/2004 07/31/2004 06/30/2008 12/31/2012

Comments

(incl. %

achievement)

This intermediate outcome has been partially achieved. While affected populations were

satisfied with compensation, the environmental audit for SBEE was dropped at project

closing that of the Sèmè Oil Field remains unfinished.

Indicator 5 : Institutional strengthening and capacity building improved

Value

(quantitative

or Qualitative)

Staff at CEB and Ministry

of Energy is lacking key

technical skills needed to

plan, maintain, and operate

a power system. The

Ministry of energy is

lacking staff in core

competency areas.

Minimum number

of trained staff.

Vacant positions are

filled up.

Minimum

number of

trained staff in

core technical,

planning and

maintenance

areas. Ministry

of energy

disposes of staff

in key areas of

competence

160 trained staff in

core technical,

planning and

maintenance areas.

Ministry of energy

has adequate staff in

key areas of

competence

Date achieved 07/31/2004 07/31/2004 06/30/2008 12/31/2012

Comments

(incl. %

achievement)

This intermediate outcome has been achieved.

Indicator 6 : Biomass and inter-fuel substitution management : effective sound management of the

domestic combustible sub-sector

Value

(quantitative

or Qualitative)

No institutional framework

is in place

CNCD effective by

June 2004.Effective

sub-sector reform by

mid-term. SIEP is

set-up and operates

by year 2. AFIC is

created and operates

within 4 months.

DFRN capacity to

regulate is effective

by year 1.SIEP is

set-up by end of

year1 and operates

by year2

CNCD

effective.

Effective sub-

sector reform.

SIEP is set up

and fully

operational.

AFIC is

established and

operates

effectively.

DFRN capacity

to regulate

private and

public forest

resources

management is

effective.

CNCD setup under

project and now

effective with support

from Bank-financed

IAME project. Sub-

sector reform was

successful by virtue

of the devolution of

forest management to

rural communities.

SIEP tools have been

developed. AFIC is

established and

operates effectively.

Date achieved 07/31/2004 07/31/2004 06/30/2008 12/31/2012

Comments

(incl. %

achievement)

This intermediate outcome has been partially achieved. While CNCD was setup under

the project, the body was only able to stay effective with financing from the IAME

project. Furthermore, capacity development for DFRN commenced under the project

but not completed.

Indicator 7 :

Biomass and inter-fuel substitution management : improved biomass energy production

and supply and effective sustainable community based natural resources management in

the Moyen Ouémé region

xiv

Value

(quantitative

or Qualitative)

No community based

management of forests in

place. Non-classified forest

not managed sustainably,

and 0% of household

demand for fuel wood

produced in a sustainable

manner

AFIC effective by

June 2004.Effective

transfer of

unclassified forests

management to local

government in the

Moyen Ouémé by

June 2004.

300,000ha of forests

under community

based by end of

implementation.

30% of current

household demand

for fuel wood

produced

sustainably.

AFIC effective;

effective

transfer of

unclassified

forests

management to

local

government in

the Moyen

Ouémé;

300,000ha of

forests under

community

based

sustainable

management;

30% of current

household

demand for fuel

wood produced

sustainably.

AFIC established;

effective transfer of

unclassified forests

management to local

government in the

Moyen Ouémé; A

management plan for

295,295 ha of forest

was developed under

the project.

Date achieved 07/31/2004 07/31/2004 06/30/2008 12/31/2012

Comments

(incl. %

achievement)

This intermediate outcome has been partially achieved. AFIC was established but not

always effective under the project. The management plan for the transfer of 295,295 ha

of forest land to community based sustainable management was agreed under the

project and implemented. The production of sustainably produced woodfuel has not yet

begun.

Indicator 8 : Biomass and inter-fuel substitution management : Private sector /NGO based energy

end-use efficiency (stoves) and inter fuel substitution options are effectively introduced

Value

(quantitative

or Qualitative)

Private sector not

significantly involved in

distribution of substitution

equipment for fuel wood;

no private sector

engagement in production

of cashew nut shells and

charcoal briquettes

Private partner in

distribution of

substitution

domestic energy and

equipment;4,800

LPG stoves, 18,000

kerosene stoves, and

30,000 improved

fuel wood stoves

produced and

marketed by end of

project; Feasibility

studies successfully

completed; Private

sector investments

by 2006

Private partner

in distribution

of substitution

domestic

energy and

equipment;

4,800 LPG

stoves, 18,000

kerosene stoves,

and 30,000

improved fuel

wood stoves

produced and

marketed;

Feasibility

studies

successfully

completed;

Private sector

investments in

production and

The procurement of

4,800 LPG stoves

was launched and

30,000 improved

cookstoves have been

purchased. However,

the stoves were not

distributed to

households before

project closing. The

study for the

promotion of the use

of biofuel was

completed. Private

sector has invested in

LPG and fuel wood

stoves.

xv

marketing of

charcoal

briquettes (caju

shells) and

ethanol (caju

apples)

Date achieved 07/31/2004 07/31/2004 06/30/2008 12/31/2012

Comments

(incl. %

achievement)

This intermediate outcome has been partially achieved. The procurement of 4,800 gas

stoves remains to be completed, and the distribution of 30,000 improved cookstoves

procured under the project has yet to occur.

G. Ratings of Project Performance in ISRs

No. Date ISR

Archived DO IP

Actual Disbursements

(US$ millions)

1 06/13/2005 Satisfactory Moderately Unsatisfactory 1.46

2 12/21/2005 Satisfactory Moderately Unsatisfactory 1.57

3 06/30/2006 Satisfactory Moderately Satisfactory 3.56


5 06/28/2007 Moderately Satisfactory Moderately Unsatisfactory 5.81

6 12/14/2007 Moderately Satisfactory Moderately Satisfactory 7.83

7 06/24/2008 Satisfactory Satisfactory 11.67

8 12/22/2008 Moderately Satisfactory Moderately Satisfactory 22.24







H. Restructuring (if any)

Restructuring

Date(s)

Board

Approved PDO

Change

ISR Ratings at

Restructuring

Amount

Disbursed at

Restructuring

in US$ millions

Reason for Restructuring & Key

Changes Made DO IP

06/02/2008 N MS MS 11.67

Provide Additional Financing

credit of SDR 4.3 million (US$ 7

million equivalent), revise the

results framework, and extend the

closing date from December 31,

2008 to June 30, 2010

06/28/2010 N S MS 35.34 Extend the closing date from June,

30 2010 to December 31, 2011

12/30/2011 N S MS 40.23

Extend the closing date from

December 31, 2011 to December

31, 2012

xvi

I. Disbursement Profile

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1. Project Context, Development Objectives and Design

1.1 Context at Appraisal

1. The 2002 census estimated Benin’s population to be 6.6 million with a per capita income

of US$ 380. Agriculture contributed over one third of Gross Domestic Product (GDP) and

employed two-thirds of the active population. Although lower than expected, real GDP growth

was substantial in 2001 and 2002 (5.0 percent and 5.8 percent, respectively). With the

increasing population and GDP, the Government of Benin (GoB) recognized that stimulating

private sector development would be essential to sustain economic growth. However, limited

competitiveness due to inadequate infrastructure, increased transaction costs, and an insufficient

supply of skilled workers hampered private sector development.

2. The GoB acknowledged that energy services would play a crucial role in strengthening

economic competitiveness and improving the economic and social indicators. At the time of

project preparation, the Benin energy sector faced the following key challenges:

Low electricity access rate: Although slightly above the Sub-Saharan Africa (SSA)

average, the electricity access rate in Benin was low at only 24 percent nationwide and

much lower in rural as compared with urban areas.

Limited generation capacity and dependence on imports: The electricity generation

capacity in Benin was low and the supply system weak. Benin largely depended on

imports from a single transmission line from Ghana which had limited available capacity.

To address this issue, the GoB planned to reinforce the transmission line between Togo

and Benin, and initiate several generation projects in cooperation with neighboring

countries such as the Adjarala Hydropower plant, the West African Gas Pipeline and the

construction of the NEPA/CEB transmission line between Nigeria and Benin.

Poor performance and financial management of CEB (responsible for generation and

transmission) and SBEE (responsible for distribution): CEB’s financial situation

deteriorated mainly due to the non-payment of electricity bills by both Benin’s and

Togo’s state owned companies and foreign exchange losses associated with foreign debt.

CEB was unable to make timely payments to its electricity suppliers. The situation

worsened during rainfall shortage, which strongly influenced the hydropower generation

supply in Benin from the Nangbeto Hydroelectric plant and the importation from the

Volta River Authority (VRA) in Ghana. SBEE’s poor technical and financial

performance was due to: (i) high operating cost and poor quality of services, particularly

in the northern part of the country which used diesel generation; (ii) inefficiency of the

networks due to high level of system losses; (iii) inappropriate tariff regime and

accumulated government arrears; and (iv) inadequate accounting system.

High dependence on traditional biomass fuels: Traditional biomass energy constituted

90% of total national energy consumption and more than 95% of aggregate household

energy consumption. Households depended on fuel wood (charcoal) for cooking and

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deforestation trends were observed, particularly in the Moyen Ouémé region of Benin.

The country did not have a sustainable system for the management of natural resources,

such as ensuring a sustainable supply of wood fuels.

Poor sector governance and weak institutions: The sector’s critical institutions,

including the Ministry of Mines, Energy and Hydraulics (MMEH), lacked capacity to

implement a reform and investment program. The legal framework was not sufficiently

robust to promote private sector participation in the energy sector.

3. Against this backdrop, the GoB adopted strategies to address energy sector challenges. In

its Letter of Sector Policy (2001-2002), the GoB outlined the following approaches: (i)

diversifying generation sources, e.g. interconnect Benin and Nigeria; (ii) increasing electricity

service coverage in the north of Benin by extending the transmission line from the southern

system already connected to Ghana, Côte d'Ivoire, and Nigeria; and (iii) extending the

distribution network to supply peri-urban and rural areas as well as all villages and towns in the

proximity of the transmission system. In addition, the GoB approved the following measures:

(a) the separation of the water activities from the electricity activities of SBEE in order to

develop each sector independently; (b) the establishment of an energy sector regulatory agency

to oversee and ensure equity among all stakeholders; (c) the opening of the electricity sector for

private sector participation, preferably through a long term concession with a qualified investor;

and (d) the creation of a rural electrification agency to promote and supervise rural

electrification activities.

4. Given the high dependence on biomass, the GoB planned to take the following steps to

better oversee the use of the country’s bio-energy: (i) establish a National Household Energy

Commission (CNCD) to coordinate the development of the household biomass energy sectors;

(ii) establish a permanent sectorial information and monitoring system (SIEP); (iii) transfer the

management responsibilities over the existing protected forests to the rural communities; (iv)

establish an Inter-communal Agency for the Management of Natural Resources (AIC-GRN); (v)

introduce energy demand management and inter-fuel substitution options for the household and

small and medium enterprise (SME) sectors; and, (vi) identify and evaluate the existing bio-

energy potential in the country.

Rationale for Bank assistance:

5. At the time of appraisal, the GoB adopted a Poverty Reduction Strategy Paper (PRSP)

based on strategic objectives that included private sector led-growth, improved access to quality

basic services, and improved governance. To achieve these objectives, the GoB planned to

accelerate private sector involvement in the energy sector and to implement rural electrification

strategy. The planned reforms aimed at (i) increasing sector efficiency; (ii) enhancing the

sector’s regulatory framework and institutions; and (iii) fostering private sector participation

particularly in electricity generation as well as distribution. It was acknowledged that a strong

power sector in Benin would strengthen the development of the West Africa Power Market and

thereby promote the Millennium Development Goal (MDG) of strengthening the global

partnership for development, given Benin's geographical location between Nigeria and the rest

of West Africa.

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6. The 2003 Country Assistance Strategy (CAS) for Benin supported the implementation of

the PRSP and envisaged an eight year Adaptable Program Loan, the Energy Service Delivery

Program (ESDP). The Energy Services Delivery Project (APL1) would support: investments

needed to increase electricity service coverage in the North of Benin by extending the Southern

transmission system, which is interconnected with Ghana, Côte d'Ivoire, and Nigeria; power

sector reform through technical assistance and capacity building to improve sector governance

and encourage private sector participation; and a combination of investments and technical

assistance to rationalize the use of biomass energy and promote effective inter-fuel substitution.

1.2 Original Project Development Objectives (PDO) and Key Indicators (as approved)

7. The original development objectives of the Energy Services Delivery Project (APL1)

were to: (a) accelerate the use of electricity for economic growth and social services in a

commercially viable way to improve the quality of life in un-served and underserved areas

(peri-urban and rural); (b) improve governance and ensure the financial sustainability of the

sector through the involvement of the private sector in partnership with the public sector; (c)

reduce deforestation, and diversify as well increase access to renewable and cleaner fuels for the

household and SME sectors; and (d) promote regional cooperation while protecting the

environment in a sustainable manner.

8. The key outcome indicators of the first phase of the program (APL1) were:

Reliable electricity supply is available for northern Benin through the interconnected grid

from the south;

In the first year of service of the transmission line (2007), the number of power outages

in Parakou and Djougou shall amount to an average of no more than two per month with

an average duration of no more than two hours per outage;

By midterm review, the study to prepare for the off-grid electrification will be completed,

as well as the bidding process for the selection of a private sector operator for SBEE will

be launched. By the end of the Project, the off-grid electrification strategy shall be

completed and approved by MMEH, and the SBEE concession agreement shall be signed

and the private sector operator shall be operating the electricity distribution system;

By midterm review, the construction of the transmission line in Togo will be completed

and by January 2007, the construction of the transmission line in Benin will be completed

and operational;

Establishment and effective functioning of CNCD and coordination of domestic energy

sub-sector by June 2004;

Establishment and effective functioning of Inter-Communal Agency for Natural Resource

Management by December 2004;

Effective devolution of natural resource management rights to rural communities.

1.3 Revised PDO (as approved by original approving authority) and Key Indicators, and

reasons/justification

9. The PDOs were not revised during the project. However, during the processing of the

Additional Financing, units of measure were introduced for some and other results indicators

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were refined to improve PDO measurement capacity and to reflect the expected results of the

Additional Financing.

10. The results indicators were revised as follows:

Reliable power supplied to northern Benin through the interconnected grid as measured

in GWh from the southern grid and through higher stability of overall grid;

Strategy for off-grid electrification and policy plan for implementation endorsed;

SBEE outsources key areas and financial and technical performance of the power utility

improved as a result.

Higher reliability of power supply through SBEE in Cotonou and Porto Novo;

Key feasibility/safeguard studies prepared and project planning completed to facilitate

closing the generation/transmission gap;

Power provided to northern Benin through the Togolese power grid, as measured in GWh

supplied;

CNCD established and functioning effectively;

AFIC established and functioning effectively;

Natural resource management rights effectively devolved.

1.4 Main Beneficiaries

11. The beneficiaries of the project were:

Urban and rural households and businesses;

Isolated rural households and businesses not yet connected to the grid along the right-of-

way of the transmission lines;

The population at large with the improved economic conditions in Benin;

Individuals providing and receiving services at rural health facilities in 93 towns and

communities provided with electricity under the project;

Individuals providing and receiving services at rural schools in 93 towns and

communities provided with electricity under the project;

Rural communities in the Moyen Ouémé region, with an emphasis on women; and

Urban and peri-urban fuel wood consuming households due to receive improved cook

stoves under the project.

12. The direct benefits of the project include: a) the access by Northern Benin to the

interconnected transmission grid which will provide a considerably more reliable supply at a

reduced cost, compared with the operation of diesel plants, with limited capacity, in a number of

households and businesses of towns to be connected to the grid; and b) the reinforcement of

Benin-Togo cooperation in the power sector, as the power to Northern Benin will be supplied

through the Togo grid which would support the development of the West Africa Power Market

(WAPM).

13. The indirect benefits include: a) improved social development through the growth of

industrial and commercial activity, through the extension of the existing distribution systems in

urban and rural areas to increase electricity access; b) significant new employment and income

generation opportunities for the participating rural communities, through the proposed

community-based sustainable fuel wood supply management systems, together with the rural

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development support activities and the inter-fuel substitution activities of the project; and c)

positive impact on gender development, given that women contribute significantly to fuel wood

production process in the country, through the implementation of the proposed community-

based sustainable fuel wood supply management systems; and d) the empowerment of local

communities by transferring to them responsibility for wood fuel resources management,

thereby helping them to increase their income and ensuring the environmental sustainability of

the forest resources; e) the enhancement of the relationship between local communities and the

central government and among themselves by the establishment of community based natural

resource management systems.

1.5 Original Components

14. The project, which was co-financed by the West African Development Bank (BOAD)

and Nordic Development Fund (NDF), comprised the following six components:

15. Component 1: Power Sector Reform (US$ 5.40 million, of which IDA US$ 5 million):

This component was to support the improvement of the governance and financial sustainability

of the sector through the involvement of the private sector. This component consisted of three

parts: (i) encouraging private sector participation in the electricity activities of SBEE, the

distribution power company; (ii) setting-up a regulatory authority for the power sector and a

training program for its staff; and (iii) dissemination to the public, through the media, of the

power sector reform agenda for education and information.

16. Component 2: Engineering Studies (US$ 2.80 million, of which IDA US$ 2.55 million):

This component was to support the strengthening of the technical performance of the electricity

system and to assist the GoB in determining future investments for the development of the sector.

This component comprised five engineering studies as follows: (i) a study to define the strategy

for off-grid electrification; (ii) a feasibility study for the Sakété-Parakou 161 kV transmission

line; (iii) a load management and energy efficiency study of the administration buildings; (iv)

detailed engineering studies including preparation of bidding documents for the rehabilitation,

reinforcement and expansion of the distribution system; and (v) an environmental assessment, an

engineering study and the preparation of bidding documents for the construction of the 161 kV

transmission line between Sakété and Porto-Novo.

17. Component 3: Investment Component (US$ 71.70 million, of which IDA US$ 26

million): The activities under this component were designed to expand the transmission and

distribution system. The component was financed jointly with CEB, BOAD and NDF, with the

Bank financing construction supervision. This component comprised two sub-components: (i) a

transmission sub-component (North Togo-North Benin interconnection); and (ii) a distribution

sub-component. The project co-financiers participated mainly in financing the transmission

subcomponent.

(i) North Togo- North Benin Transmission Line

This sub-component consisted of extending the southern 161 kV grid to the North of

Benin in order to provide the North with reliable and lower cost electricity. At the time of

appraisal, the North was supplied through isolated small diesel generating units. The

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transmission line consisted of about 436 km of 161 kV connecting Atakpamé in Togo

with Parakou in Benin, and passing by Kara in Togo and Djougou in Benin; and the two

lateral transmission lines in Benin connecting Djougou to Natitingou, 76 km, and

Parakou to Bembereke, 106 km.

(ii) Distribution

The distribution sub-component included: (i) supply and erection of the equipment

needed for energy efficiency improvement in the administrative buildings; and (ii) supply

of goods and execution of urgent works needed to maintain the distribution system

functioning until a private sector partner took its place.

18. Component 4: Environmental and Social Component (US$ 3.50 million, of which IDA

US$ 1.75 million): This component was designed to address all the environmental impacts that

were identified in the Environmental Assessment (EA) for the project. This component

comprised: (i) the Environmental Assessment for the relocation of the existing 20Mw gas turbine

from Cotonou to a new site outside Cotonou; (ii) the compensation scheme for the high voltage

transmission line; and (iii) an environmental audit of SBEE.

19. Component 5: Institutional Strengthening and Capacity Building (US$ 6.10 million,

of which IDA US$ 4 million): This component aimed at strengthening the electricity institutions

under the Ministry of Mines Energy and Hydraulics (MMEH), and helping the

establishment/operationalization of their role and function in the sector. This component

consisted of: capacity building activities at the Ministry of Energy, the Directorate of Energy and

the CEB; the purchase of vehicles and office equipment for the PCU and the implementation of

an Information Technology (IT) strategy for DGE and SBEE; and the purchase measuring

equipment for CEB substations.

20. Component 6: Biomass Energy and Inter-fuel Substitution (US$ 6.20 million, of

which IDA US$ 5.70 million): This component aimed to rationalize the biomass energy sector

and to promote effective inter-fuel substitution options for the household and SME sectors,

including endogenous renewable fuels. The component entailed four complementary and cross-

supporting sub-components: (i) Institutional Development; (ii) Community-based Sustainable

Wood Fuel Supply; (iii) Biomass Energy Efficiency and Inter-fuel Substitution; and (iv) Rural

Community Development Support.

1.6 Revised Components

21. Project components did not change. However, the Additional Financing processed in

June 2008 supported additional activities under components two, three, four, and five of the

original project as detailed below.

22. Component 2: Engineering Studies (US$ 1 million): Under this Component, the

following additional studies were financed: a feasibility study for Maria Gléta (400MW thermal

power plant) as a site for WAPP Regional Power Plant and preparatory studies for Adjarala

Hydro-electric Plant.

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23. Component 3: Transmission and Distribution System Expansion (US$4.5 million):

Under this component the following works and additional equipment were financed: SBEE’s

rehabilitation of switchgear and protection equipment at the substation of Akpakpa power plant;

SBEE’s construction of a distribution line in Cotonou; CEB’s installation of protection

equipment at substations to allow for operation of the southern transmission ring in Benin;

CEB’s provision of cable potheads to link up the Djougou and Parakou substations with the

Medium Voltage (MV) lines and related communication equipment; and extension of the

supervision contracts to accommodate additional tasks above.

24. Component 4: Environmental and Social Component (US$ 0.50 million): financed the

Environmental Audit of Sèmè Oil Field.

25. Component 5: Institutional Strengthening and Capacity Building (US$ 0.50 million):

financed technical assistance on financial management and training for SBEE.

Table: Original IDA Allocation and Additional Financing

Category Initial IDA

Allocation

(SDR million)

Initial IDA

Allocation

(US$ million) [1]

Additional

Financing

(US$ million) [1]

(1) Goods and Works for supply

and erection contracts

13.4 19.39 4.00

(2) Goods and Vehicles 2.35 3.40 -

(3) Consultants’ services 9.35 13.53 2.30

(4) Training 2.15 3.10 0.20

(5) Operating costs 0.60 0.87 -

(6) Refunding of project

preparation advance

0.55 0.80 -

(7) Unallocated 2.70 3.91 0.50

Total project costs (including

unallocated)

31.10 45.00 7.00

[1] Figures based on the Table 1 of the Additional Financing project paper

1.7 Other significant changes

26. The ESDP project, in the amount of SDR 33.10 million (US$45 million equivalent) was

approved on July 06, 2004. The Credit became effective on April 25, 2005. The project benefited

from an additional IDA credit in the amount of SDR 4.30 million (US$7 million equivalent)

which was approved on June 26, 2008 and became effective on May 4, 2009. The closing date of

the original project was extended during the processing of the Additional Financing from

December, 31 2008 to June, 30 2010. The project was extended for an additional 30 months

cumulatively (see paragraph 2.2 for more details) as a result of two additional restructurings in

June 2010 and December 2011 respectively, resulting in December 31, 2012 being the final

closing date of the project. The Additional Financing and project restructurings did not change

the project development objectives or the original components of the project. However, during

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the processing of the Additional Financing, new activities were added under the existing

components of the original project as described in section 1.6.

2. Key Factors Affecting Implementation and Outcomes

2.1 Project Preparation, Design and Quality at Entry:

27. Project preparation: Project preparation benefited from a number of studies and broad

consultations with power sector stakeholders to take stock of the main sector issues and the

government strategies as well as policies. The preparation of the project was undertaken by the

Bank team jointly with: (i) the Directorate of Energy (Direction Générale de l'Energie, DGE)

within the Ministry of Energy, the policy making body of the energy sector; (ii) the distribution

utility, SBEE, and the generation and transmission company, CEB; (iii) the Ministry of

Environment; and (iv) local communities in the Moyen Ouémé region, particularly on the

biomass aspect.

28. A project preparation facility advance was used to finance preparatory work and

background analysis on legal frameworks, distribution networks, and environmental impact

assessment. The GoB showed strong commitment during project preparation and effectively

coordinated with commercial financial institutions and development partners to secure the

financing of priority investments of the sector and reform agenda. A reflection of the

Government’s commitment to power sector reform was that it took upon itself the financing of

the institutional studies that led to the decision taken by the Council of Ministers, in 2001, to

approve the privatization of SBEE. At the time of preparation, several donors indicated their

interest in financing the power sector expansion to meet economic demand in rural and peri-

urban areas in Benin, especially in the northern part of Benin.

29. The project was prepared over 24 months between FY03 and FY04. At that time, the

West African Gas Pipeline was expected to be operational in 2006, bringing online sufficient

additional thermal generation capacity to stabilize Benin’s power supply while lowering costs.

This in turn was expected to lead to an improvement in the utilities’ financial condition and

appeal to private sector investors at a time when private sector participation was a common

theme across the region. Many utilities in neighboring countries had been/were in the process of

being privatized with apparent gains in management efficiency.

30. Project design: The Project Development Objectives and activities responded to the

needs of the country and supported the Government’s strategy, outlined in its Letter of Sector

Policy of 2001-2002, to address existing sector issues. Additionally, the PAD delineated the

lessons learned that were reflected in the program design. The project included six components

supporting a variety of interventions, including investments, capacity-building, technical

assistance, and policy formulation to bring about sector reform. There was also a multiplicity of

actors involved, particularly on the government side. In hindsight, the project design was

complicated, which led to delays and complications during project implementation. Specifically,

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the project attempted to tackle an ambitious agenda of complex issues without fully defining

them, while the outcome indicators remained mostly qualitative.

31. Assessment of risks: The overall risk rating of the project was moderate at the time of

appraisal. Of the risk factors assessed, the following risks materialized:

Government's commitment to implement the necessary measures could weaken: Although

the Government had issued the Letter of Sector Policy and established the legal and

regulatory framework necessary for private sector participation in the sector, it neglected

to take other steps necessary to carry out the privatization process, such as hiring a

transaction advisor and initiating the bidding process. There was a lack of private sector

interest in participating in distribution utilities. Further where privatization of distribution

utilities had been tried, for e.g. in Guinea, Togo, Senegal, and Mali, concessionaires were

not investing as promised and governments were reluctant to raise tariffs as required by

the concessionaires. These factors discouraged the GoB from actively pursuing the

privatization agenda further.

Inability to implement the project within budget and in accordance with schedule: This

risk was assessed low during the preparation of the project due to the fact that some of

the involved agencies had experience implementing similar projects either with IDA or

other donor-financed projects. The CEB’s implementation of the Nangbeto Hydroelectric

Project (Cr. 1507-BEN and Cr. 1508-TG) was rated highly satisfactory as the project was

commissioned below cost and on schedule. However, the hiring of consulting engineers

was still identified as a mitigation measure. The ESDP was implemented within the

budget (about 88.38% of the project proceeds was disbursed) but it was not completed in

accordance with schedule, despite a cumulative 4 year extension from the original closing

date. The inability to implement the project in accordance with the schedule was mainly

due to the design of the biomass component (component 6), where the length of time

needed to complete key activities was underestimated, for example the establishment of

the forestry agencies (AFIC and COFORMO) took more than four years.

Heavy reliance on electricity imports from neighboring countries: This risk was rated as

substantial at the time of the preparation of the Additional Financing and the preparation

of the projects for the development of the Adjarala Hydropower Plant as well as the

Regional Power Plant at Maria Gléta were identified as mitigation measures. Since 2012,

reliance on electricity imports from neighboring countries has significantly increased.

The ESDP has financed feasibility studies for both plants which, once operational, should

reduce Benin’s high dependency on imports.

Weak financial management capacity at SBEE: This risk was rated substantial at the time

of the preparation of the Additional Financing. The recruitment of a high level financial

expert to assist SBEE to improve its financial management was identified as a mitigation

measure. At the end of the project, the billing and accounting systems were not

integrated, the control environment was still weak, and timely recording of transactions

was lacking.

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32. The PAD identifies the following “controversial aspects”, as distinct from “critical risks”

which for the purpose of this exercise, are analyzed as additional risk factors and which both

materialized: (i) unsuccessful participation of the private sector in SBEE, and (ii) problem of

availability of power import from neighboring countries. The participation of the private sector

in SBEE was not completed during the implementation of the project and the availability of

power for importation by CEB from neighboring countries was reduced, given the capacity

constraints faced by its suppliers. Both of these had implications on the economic return of the

project which has been revised downward. However, despite this the project remains profitable

from an economic point of view.

2.2 Implementation

33. Project implementation had a slow start. Due to the late fulfillment by the Government of

Benin of the effectiveness conditions, the project became effective approximately 10 months

after Board approval. While the large quantity of conditions (ten) was a factor, the delay was

primarily attributable to the ratification of the subsidiary agreement at the parliament level. After

effectiveness, disbursement was initially slow, reaching only 26% four years after Board

approval.

34. Project implementation encountered challenges at a number of levels due to factors that

were often outside of the project’s control and sometimes hard to predict. Unanticipated delays

in the construction of the West-Africa Gas Pipeline led to waning enthusiasm for distribution

utilities in the sub-region. At the time of project preparation, the WAGP was under construction,

the price of gas stood at US$10 cent per mmbtu, and most of the associated and non-associated

gas in Nigeria was being flared. The completion of the construction of the pipeline was

scheduled in 2006 with the expectation that Benin would close its power generation/demand gap

using gas-powered generation using gas from Nigeria. This low costs power generation capacity

would reduce costs and improve utility financial performance – making it more attractive for

private sector participation. The completion of the WAGP was delayed. In addition, the

incentives for Nigerian gas producers to export gas decreased as the demand for gas in Nigeria

increased. As a result, foundation volumes of gas have yet to become available. In 2012, the gas

pipeline was damaged in an attack in Cote d’Ivoire and gas supply was suspended for a year.

35. Shortcomings in the gas supply were not the only reason for generation costs staying high.

The volatility in the price of oil as well as the unreliability of power imports from neighboring

countries also pushed generation cost upwards. As a consequence, and despite some

improvements in SBEE’s technical performance, the utility’s financial performance did not

improve as hoped. While private sector interest in the distribution utility concession decreased

tariffs lagged cost increases and as the global financial crisis reduced foreign direct investment.

Most of the distribution concession contracts across the sub-region were also terminated at this

time because of an inability to attract private sector investment as governments refused to

increase tariffs to meet cost recovery. In Benin, the Government’s focus shifted to solving the

generation deficit in a worsening power crisis.

36. Implementation of the biomass component was slow to start, as the Ministry in charge of

forest management and many of the local authorities concerned were not involved in the project

preparation process which was led by MMEH. In addition, the legal and institutional frameworks

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supporting the devolution of responsibility for various biomass activities and resource

management were too weak to enable coordination between MMEH and stakeholders concerned.

As a result, establishing the biomass and resource management agencies took more than four

years.

37. However, not all the delays are due to external factors that were not under the control of

the government of Benin. Frequent changes in public administration resulted in change of

interlocutors at the ministry levels. Limited quantity and quality of handovers between

administrations, along with lack of ownership of the project by new officials, slowed the

implementation of the project. The procedure for approval of counterpart funding was very

cumbersome and had to be repeated for each and every contract approved, leading to significant

delays in project implementation. After the restructuring of the project, this procedure was

addressed whereby SBEE and CEB provided funding instead of the government.

38. The processing of contracts with Government co-financing by the Ministry of Finance

was slow and the national integrated system for the management of public contracts was used

intermittently. This situation created important delays in terms of providing approval to

procurement documents including bidding documents, bid evaluation reports, and contracts.

39. The mid-term review of the project was conducted in October 2007 to assess the overall

status of project implementation. The review revealed that while the project development

objectives remained relevant and achievable, the overall implementation of the project -

particularly the biomass component - was significantly delayed. The level of disbursement at the

mid-term review was only about 15.3%. But there were reasons to expect that disbursement

would pick up, as about 60% of the financing was committed. The mid-term review

recommended actions to allow for the improvement of progress including (i) the acceleration of

the hiring of technical staff to work on the biomass component, (ii) the restructuring of the

project which included: extension of the closing date, reallocation of funding, revision of the

results framework and disbursement forecast.

40. In early 2008, it was decided that the APL structure as originally designed was no longer

applicable to the changed context. The project was the first phase of an eight year Adaptable

Program Loan (APL) divided in two phases; the second phase was to be triggered if the reforms

planned in the first phase, particularly measures to improve power sector performance, were

adequately implemented. However, in the context of serious power supply shortages in Benin

since early 2007, a focus on further network extensions without regard to the source of the

required power supply, as foreseen under APL-2, was not feasible. Secondly, analysis conducted

under APL-1 indicated that there was no private sector interest in SBEE, and therefore

privatization, which was considered an important sector reform, could not proceed.

41. In June 2008, an additional financing of USD 7 million equivalent was approved to scale-

up project activities. Activities were added under components two, three, four, and five, the

closing date was extended by 18 months, and the results framework was revised. The decision

was formalized not to pursue the second phase of the APL. The project development objectives

remained the same.

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42. Despite the restructuring in 2008, delays continued. The project implementation was

steady though slow and two additional restructurings occurred in June 2010 and December 2011

to extend the closing date for an additional cumulative 30 months in order to complete critical

project activities.

2.3 Monitoring and Evaluation (M&E) Design, Implementation and Utilization

43. The original M&E framework was overly complex, reflecting the high number

components and actors involved in the project’s implementation. The resulting outcomes were

not well defined and the indicators were largely qualitative, making it hard to track and measure

results. In addition, some of the indicators were not matched by effective collection methods or

available baseline to monitor progress. At the time of approval of the Additional Financing, the

original outcome indicators in some of the project components were revised to better capture the

expected results. Target values and units of measurement were still not introduced in all cases.

Appropriate indicators to measure the impact of the project on economic growth in accelerating

the use of electricity were still absent.

44. The project used quarterly reports based on the results framework included in the PAD

and Financing Agreement to monitor progress. In addition, a comprehensive assessment of

project’s achievements was carried out at the mid-term review. The M&E specialist within the

Project Coordination Unit gathered data and calculated figures for indicators.

2.4 Safeguard and Fiduciary Compliance

Environmental and social safeguards

45. The safeguard category of the project was B (partial assessment). The project triggered

the Bank policy on environmental assessment (OP/BP4.01) and involuntary resettlement (OP/BP

4.12). No major environmental risks were identified during the preparation of the project. The

project included an Environmental and Social Component which financed activities aimed at

addressing all the environmental impacts that were identified in the Environmental Assessment

(EA). This component included financing for an environmental audit for the relocation of the

existing Gas Turbine in a substation at Cotonou to a new site where gas from the West Africa

Gas Pipeline would be delivered in Benin. However, the gas pipeline was ultimately not

relocated rendering the audit unnecessary.

46. An Environment and Social Management Framework (ESMF) and a Resettlement Policy

Framework (RPF) were prepared and disclosed on February 3, 2004 before project appraisal.

The preparation of the Additional Financing did not change the safeguard category of the project,

nor did it trigger additional safeguard policies. The ESMF and RPF were updated, reviewed and

approved by the Bank. Both updated ESMF and RPF were re-disclosed in-country and in the

Info Shop on May 20, 2008.

47. The project financed the compensation provided to persons affected by the

implementation of some of project’s components, particularly the building of access roads and

right-of-way for the North Togo – North Benin transmission lines. A comprehensive

13

Resettlement Action Plan (RAP) was developed and implemented, and the compensation issues

were successfully addressed.

Procurement and Financial Management

48. An assessment of the procurement capacity and systems of CEB and SBEE was

undertaken in accordance with IDA procedures during project preparation. Both CEB and SBEE

had already implemented IDA-funded projects in the past and had carried out procurement using

World Bank guidelines and procedures. The Ministry of Energy handled consultancy contracts

under the project and was responsible for all the procurement activities of the Biomass Energy

and Inter-fuel Substitution component (goods and services, civil works and equipment).The

Ministry of Energy had adequate number of qualified staff to handle its limited procurement

responsibility, which was further supported by a qualified consulting firm in major procurement

matters.

49. Procurement performance was rated Satisfactory or Moderately Satisfactory in ISRs

during project implementation. Thirty three contracts (works, goods, and consultancy services)

were procured using competitive bidding procedures during project implementation. Substantial

progress was made with respect to pre- and post-procurement procedures, record keeping, and

quality of bidding documentation and evaluation reports. All the activities of the project were

implemented following the Bank’s procurement guidelines for goods, works, and consultancy

services.

50. Financial Management (FM) performance was also rated Satisfactory or Moderately

Satisfactory in ISRs and the related FM risk was rated Moderate during the implementation of

the project. The client had adequate staffing throughout the implementation of the project. In

addition, proper bookkeeping and supporting documents for the justification of all

expenditures were maintained and most of the audits were submitted on time and reviewed.

The interim un-audited financial reports were submitted in a timely manner and the quality of

those reports improved over the years of implementation. FM requirements were met in

budget planning and expenditure tracking, accounting, reporting, auditing, and disbursement.

Moreover, recommendations of supervision missions and of audit reports were mostly taken into

account.

2.5 Post-completion Operation/Next Phase

51. Post-completion operation and maintenance of investments financed by this project,

including transmission and distribution lines and substations, are under the responsibility of the

two utilities – CEB and SBEE. While both these institutions have qualified staff to carry out the

maintenance and operation of newly installed infrastructures, securing adequate financial

resources remains an issue that requires attention. On the distribution side, SBEE has improved

its financial situation following the two tariff increases that were implemented between 2010 and

2011 which allowed the utility to secure budget in order to undertake the maintenance of

distribution lines and substations. However, SBEE could still do more to: (i) improve its

commercial performance, particularly improving billings and collection rates to reduce the non-

technical losses, and (ii) increase its collection rate. The financial viability of SBEE could be

14

maintained through the application of the tariff indexation mechanism. In addition, SBEE could

certain aspects of its operations to the private sector, including the billing and collection to

increase its performance. On the transmission side, and despite continuing poor performance,

CEB should be able to secure the budget necessary for the maintenance and operation of

transmission lines and substations.

52. To sustain the achieved outcomes under the biomass component of the project, the newly

established AFIC and COFORMO would need to be permanently functioning to supervise the

maintenance and operation of installations which were handed over to local communities and to

ensure the management of natural resources in the long run. Capacity strengthening activities for

COFORMO and AFIC was initially funded by the ESDP and thereafter by the ongoing IAME

project. The agencies are changing their status to permit them to function autonomously in the

future. In addition, to support the maintenance and operation of infrastructure related to the

production of honey, local communities have considered the allocation of part of their revenue.

53. Next phase/follow up operation: Initially, phase two (APL2) of the program (APL) was

supposed to be prepared in order to continue and sustain the results achieved in the phase one

(APL1). By 2008, it was clear that the triggers for the preparation of the phase two of the APL

were not going to be met because of change of sector context and environment, in particular the

lack of interest from the private sector to participate in the privatization of SBEE. In its stead, the

Government and the Bank agreed in 2008 to prepare a free standing follow-on investment

operation. The Increased Access to Modern Energy Project (P110075) was approved in 2009.

The IAME project provides supports to the two utilities CEB and SBEE and to the two

institutions AFIC and COFORMO.

3. Assessment of Outcomes

3.1 Relevance of Objectives, Design and Implementation

54. Overall, the project development objectives, design and implementation remain relevant

to the current sector priorities of the country and support high level priorities, including MDGs.

The development objectives of the project remain highly relevant, while specific aspects of the

design and implementation turned out to be no longer fully relevant.

55. The development objectives of the project, though broadly defined, are in line with the

current Country Partnership Strategy and remain highly relevant to the development priorities of

Benin. The 2011-2015 poverty reduction strategy is based on five strategic pillars which are: (i)

acceleration of growth; (ii) development of infrastructure; (iii) human capital building; (iv)

promotion of good governance; and (v) and balanced and sustainable regional development. The

Government of Benin recognizes infrastructure’s contribution to growth and the improvement of

living conditions by: linking economic agents to markets, reducing factor costs, improving the

competitiveness of the economy, and also offering essential services to the public which

determine the quality of life. The Government has identified energy as a priority area in the

infrastructure sector. Further, the achievements under this project contribute to the realization of

the objectives of the Benin Country Partnership Strategy (CPS) FY13-17 on the increased access

15

to and quality of electricity services under the pillar: “Increasing Sustainable Growth,

Competitiveness and Employment”.

56. The installation and commissioning of the transmission lines financed under the project

in the northern part of Benin has facilitated the electrification of more than one hundred and

twenty villages in rural areas. In this way, the project supported the Government’s effort toward

the achievement of MDGs on the reduction of child mortality and improvement of maternal

health, through the increased coverage of electricity to rural health facilities; and the

achievement of universal primary education through the provision of electricity to rural schools

which would enable evening classes to take place and improve the living conditions of teachers,

thus reducing turnover. Moreover, the use of grid electricity from interconnected transmission

lines to substitute for electricity produced by small- and medium-sized diesel power plants

helped to support environmental sustainability.

57. As it concerns the project’s design, the transmission and distribution system expansion

support component that financed the rehabilitation and expansion of electricity infrastructures

(generation, transmission, and distribution) is still highly relevant to the sector context in Benin.

It also remains relevant to include a power sector reform component given the financial

challenging situation of the utility as a result of a high investment gap, commensurately high

system losses, and chronic non-technical losses. At the outset, however, the project was very

focused on private sector participation. This approach – which was common at the time of

project appraisal - is no longer relevant in a changing sector landscape. Also, the project failed to

appropriately assess the risks of construction delays of the WAGP. While relevant to the

country’s priorities, the biomass also diluted the focus of the project and would have been better

suited in a multi-sectoral community development operation. The Monitoring and Evaluation of

the project design is not up to the current more stringent standards.

58. Bank assistance was responsive to the Government’s changing needs, particularly on the

need to develop additional generation capacity as the import of gas was not as reliable as

expected. The feasibility study of the Adjarala hydropower plant was included in the project’s

activities under the component “Engineering Studies” during the preparation of the additional

financing and the study were completed under the project. As a result, the Adjarala hydropower

generation is under preparation and is expected to be financed by the Bank and other donors. In

addition, the feasibility study for the development of the regional power plant Maria Gléta

(400MW gas power plant) was completed under the project. This study aimed at closing an

important gap in the understanding of power sector planning in Benin.

3.2 Achievement of Project Development Objectives

Rating: Moderately Unsatisfactory

59. The achievement of the PDOs is overall rated as Moderately Unsatisfactory given that

the not all PDO indicators were achieved, despite the fact that many of their targets were.

Persistent disconnect between PDOs and targets in the results framework has complicated the

ICR analysis. See Annex 2 for a description of outputs by project component.

16

60. The achievement of the first project development objective, namely to “accelerate, in a

commercially viable manner, the use of electricity for economic growth and social services and

thus improve the quality of life in un-served and underserved areas (peri-urban and rural)” is

rated as Moderately Unsatisfactory. Both of the targets set out in the results framework were

achieved, but the project was not able to sustainably achieve one of its initial indicators, namely

the reduction of power outages to an average of less than two outages per month and two hours

per outage. Nevertheless, the energy supplied in the North reached 89 GWh by the end of 2012

and has increased since project closing. The power supply is more stable and reliable. The

southern loop became fully operational, while the upgrade of distribution transformers in urban

and peri-urban areas in Cotonou and Porto Novo increased supply capacity across the

distribution system (50 MW additional transformer capacity added). The availability of

electricity supply in the northern part of Benin has significantly increased from 5-6h/24h to an

average of more than 18h/24h. The utility was consequently able to terminate costly power rental

agreements. Furthermore, the Transmission and Distribution System Expansion component was

highly successful and engineering studies were completed.

61. Increased electricity supply has augmented the energy consumption in target

communities and villages in the northern part of the country. This has contributed to the quality

of life in these peri-urban and rural areas. The substations of Djougou and Parakou installed

under the ESDP powered the electrification of twelve villages and ten communes in rural areas

that was completed in 2009 under other projects. Similarly, the electrification of an additional

one hundred and five villages under the Energy Facility of the European Union is ongoing and

will be completed in 2013 and these villages will also be supplied by the transmission lines built

under the ESDP. The completion of the distribution works in Cotonou and Porto Novo, including

the installation of substations and underground cables and lines, has also increased the capacity

of the networks and reduced the frequency of unplanned interruptions. Since both Cotonou and

Porto Novo are industrial and commercial zones, these improvements have led to enhanced

productivity of industrial and commercial customers.

62. The achievement of the second objective which is “to improve governance and ensure

the financial sustainability of the sector, through the involvement of the private sector in

partnership with the public sector” is considered as Moderately Unsatisfactory. The Electricity

Regulatory Authority was established and the recruitment of its staff is ongoing by the

Government. The functioning of the entity is an important step for strengthening the governance

of the sector and promoting public private partnership. Although the Government established the

legal and regulatory framework necessary for private sector participation in the sector, given the

lack of interest from private sector and the unsuccessful attempts at privatization of power

utilities of countries in the region including Guinea, Togo, Senegal, and Mali, the Government

did not actively pursue the privatization agenda further. Despite the fact that the introduction of

private sector participation in SBEE was not successful, the Government was able to implement

two tariff increases between 2010 and 2011 which has improved the financial situation of SBEE.

Prior to 2011, SBEE encountered financial losses but the utility has since turned a profit by

rehabilitating distribution infrastructure and implementing tariff adjustments to cover costs. The

current Government has again shown a willingness to pursue privatization of SBEE and has

recently sent terms of reference to the Bank on the establishment of a “Société de Patrimoine”

that would allow SBEE to have autonomous management and access to financial markets. The

17

Government is also considering collaborating with the private sector on certain aspects of

SBEE’s operations including the billing and collection, and electrification of undeserved peri-

urban areas.

63. The achievement of the third PDO, to “reduce deforestation and increase access and

diversify choice to renewable and cleaner fuels to the household and SME sectors”, is rated

Moderately Satisfactory. The three indicators of this PDO were achieved or partially achieved

despite the slow start up of the implementation of the biomass component: the CNCD was

established, the AFIC was set in place and functioning, and forest management of 295,295 ha

was effectively devolved to rural communities. Nevertheless, some of the planned activities in

support of this PDO remain unfinished. The procurement of 4,800 gas stoves was begun under

the ESDP but not completed, while 30,000 cookstoves have been purchased but these have yet to

be distributed.

64. On the reduction of deforestation, the project started with the establishment of legal

framework and the setting in place of key institutions, the COFORMO and the AFIC, to ensure

the sustainable management of forest in the region of Moyen Ouémé. COFORMO developed an

action plan for 2008-2012 and approved it in 2009. The AFIC was established in 2010 and the

institution became well-functioning in August 2011. Under the project, the government approved

a development plan for the sustainable management and production of woodfuel on 295,295 ha

of forest which was devolved to communities.

65. The strategy for the promotion of gas and biofuel in Benin was adopted. In addition, the

recruitment of an NGO was completed in 2011 to undertake a social intermediation. The

establishment of legal framework related to the promotion of biofuel was prepared but was not

adopted during the implementation of the ESDP project.

66. The strategy for the promotion of gas and biofuel in Benin was adopted. In addition, the

recruitment of an NGO was completed in 2011 to undertake social intermediation. Moreover,

due to delays in finalizing the contract, the purchasing of gas stoves was launched but not

completed, while cookstoves were purchased but not distributed by project closing. The

establishment of legal framework related to the promotion of biofuel was prepared but was not

adopted during the implementation of the ESDP project.

67. Regarding rural community development support, the project supported 120 apiarists in

12 villages who have established 840 hives. Twelve facilities for the processing of honey were

constructed and twelve water drilling systems were constructed and commissioned in January

2011 in Dassa, Save, and Tchaourou districts.

68. The achievement of the project development objective of promoting regional cooperation

while protecting the environment in a sustainable manner is rated Moderately Satisfactory. The

project achieved most but not all of its targets in support of this PDO. The project clearly

promoted regional integration although this is an ongoing process. The completion of the North

Togo – North Benin transmission line has enhanced cooperation between Togo and Benin. This

interconnection has also facilitated power exchange with Ghana, as it connects further to the

BOAD financed transmission line from Nangbeto hydropower plant to northern Togo. Benin’s

18

power imports from Ghana have therefore increased and the interconnectivity will continue to

enhance regional power trade. The commissioning of the Togo-Benin transmission line has

enabled the Government to shut down all thermal plants that previously supplied the North of the

country, which has reduced generation costs and limited negative environmental impacts. The

ESDP also improved regional cooperation through the feasibility study for the Adjarala

hydropower site. This has enabled Togo and Benin to jointly prepare for the development of a

site that will facilitate renewable energy development and augment the constrained capacity of

electricity suppliers throughout the region. The unreliability of the gas and power imports are a

testimony that regional integration in the energy sector remains a challenge, despite the

important contributions of the project.

69. To ensure that the environmental impact of the planned development for the sector was

mitigated and adequate protections implemented going forward, the environmental was designed

to provide compensation to residents displaced to accommodate the right of way from the high

voltage transmission lines, as well as to carry out a number of environmental studies and audits.

While the component financed a resettlement action plan (RAP) and successfully compensated

the affected population, it has only disbursed approximately 25% at project close as

environmental audits for SBEE and the Sèmè Oil Field were not implemented. The

environmental assessment for the relocation of a 20MW gas turbine outside of Cotonou was also

not implemented as the gas turbine was no longer being relocated.

3.3 Efficiency

70. Efficiency is rated Substantial due to the efficiency gain of the transmission line North

Togo - North Benin as compared to the alternative of expensive isolated thermal power plants.

The cost of decentralized thermal power generation would have been increased because of

steadily climbing oil prices, particularly since mid-2009.

71. Beyond the savings made by avoiding the costs related to isolated thermal generation, the

project helped to improve SBEE’s efficiency at three levels: (i) the transmission lines financed

under the project resulted in the decreased thermal generation for Atacora and Borgou plants

from 65.1 GWh in 2008 to 6.6 GWh in 2012, resulting in an average savings of US$ 10 million

per year in diesel fuel and lubricating oil costs; (ii) the grid upgrades financed under the project

have allowed SBEE to save US$ 1 million per year in power rental costs; (iii) energy efficiency

improvement measures included the installation of capacitor banks in 14 buildings for power

factor improvement, and installation of energy efficient equipment in 80 buildings. However, the

impact of improvements resulting from the project’s activities was mitigated by factors outside

of the project’s control. Specifically, unforeseen delays in the completion of the WAPG led to a

continued reliance on thermal generation in the South, compounded by increasing oil prices

previously noted. Therefore, while the project successfully met many of its output targets and led

to efficiency gains on specific segments of the utility, it did not fully achieve the desired

outcome overall as SBEE’s overall financial condition has not improved to the extent initially

planned to enable privatization.

72. Economic analysis for the North Togo - North Benin Transmission Line (161kV). An

economic analysis was carried out comparing the economic benefits of the North Togo/North

19

Benin Transmission line, to the alternative solution based on isolated diesel power plants. The

economic return of the project is 19% while net present value dropped US$ 16 million. This is

considerably below the projected rate of economic return of 35% and the NPV of US$ 65 million

in the project appraisal document. This decrease in economic returns is explained in large part by

the halving of the actual energy supplied by the project to Benin’s northern region in comparison

with was projected at appraisal stage. Despite this lower demand, the project is still considered to

be beneficial from an economic standpoint. The details of the economic and financial analysis

can be found in Annex 3.

73. Financial analysis of CEB and SBEE. At appraisal, CEB had very little margin for

maneuvering in an environment of rising costs. Losses in 2001 were 11.1 billion FCFA. In April

2002, CEB was allowed to raise tariffs; as a result the situation improved. CEB’s financial

projections for the period 2004-2010 were based on decreasing power generation cost driven by

the supply of cheaper gas from Nigeria through a gas pipeline as of 2005 and the operation of

hydropower plant at Adjarala as of 2008. However, the construction of the Adjarala plant has

been delayed and is now expected to be commissioned by 2017/2018. Furthermore, the gas

supply from Nigeria only began in 2011 and is more expensive than expected (US$ 9/mmbtu).

The contractual gas volumes are not usually met and the supply has been erratic. In 2012, the gas

pipeline was damaged in a terrorist attach and services were suspended for a year. For all of

these reasons, the expected drop in generation cost did not materialize, at least not at the

magnitude projected. Hence, CEB remains in a difficult financial situation. While it had a

positive net result in 2009 and 2010 (US$ 4.4 million and US$ 3.8 million), the situation

deteriorated in 2011 (deficit of US$ 6.2 million) and CEB now forecasts a large deficit for 2012

(US$ 49 million) and 2013 (US$ 34 million).

74. On the other hand, SBEE’s financial situation has improved following the 10 FCFA/kWh

April 2010 tariff increase. SBEE losses have decreased relative to the period from 2007 to 2009.

After a 1.4 FCFA billion loss in 2010, SBEE has a profit of 2.6 FCFA billion for 2011 and

forecasts 3.3 FCFA billion for 2012. The average tariff is now slightly higher than the average

operating cost. The reduction in SBEE’s own expensive thermal generation also explains the

improving financial situation. In 2011, SBEE imported 99% of the energy supplied from CEB

against 91% in 2010. This higher demand is the result of new connections in previously isolated

areas and the end of contracts with Aggreko and MR International in August 2010.

75. Compliance of CEB and SBEE with financial covenants. Overall, CEB and SBEE

complied with the project’s financial covenants. CEB gradually reduced its accounts receivable

from electricity sales to an average amount equivalent to two months of electricity sale by

January 1, 2006. The Government also ensured that its arrears due to SBEE for electricity

consumption as well as all cross debts between SBEE, CEB and CAA as of December 31, 2003,

were fully settled by September 30, 2004 through cash payments or through offsetting the arrears

against SBEE’s and CEB’s indebtedness to CAA.

3.4 Justification of Overall Outcome Rating


76. The overall outcome is rated Moderately Unsatisfactory for following reasons: (i) the

project development objective were relevant, though the design was not always so; (ii) the

20

overall rating of the achievement of development objectives is moderately unsatisfactory; and

(iii) there were substantial efficiency gains derived from investments made under the project

components, but not to the extent expected during project preparation.

3.5 Overarching Themes, Other Outcomes and Impacts

(a) Poverty Impacts, Gender Aspects, and Social Development

77. In view of the relationship between electricity and economic development as recognized

in the PDO, the project contributed to poverty reduction through the increase in the supply of

electricity. In addition, increased availability of the supply and improved reliability of electricity,

positively influenced productivity and income generation. Moreover, the completion of the

transmission lines and substations has triggered the boom of rural electrification in the northern

part of the country. Thus, the improvement of distribution networks in Cotonou and Porto Novo

in terms of capacity and reliability would increase the productivity of industrial and commercial

customers in those areas. Moreover, the biomass component of the project supported income

generating activities including the production of honey which reduced deforestation and

alleviated poverty in rural communities. The project supported 120 apiarists in 12 villages who

have established 840 hives. Twelve facilities for the processing of honey were constructed in

Dassa, Save, and Tchaourou districts and twelve water drilling systems were constructed and

commissioned in January 2011 in the same areas.

78. The project also contributed to social development through the construction of five

substations and establishment of COFORMO, a collective decision-making platform. Increased

energy availability through the substations financed under ESDP enabled other projects to

finance grid extensions for the electrification of rural villages, including health facilities and

schools, thereby directly improving quality of life in those areas. The creation of COFORMO

enabled the promotion of collective decision-making at the community level for the management

of forest lands. This participatory approach fostered the empowerment and self-confidence of

beneficiary communities in managing their own development while providing them with an

opportunity to have their views heard at regional and national levels.

(b) Institutional Change/Strengthening

79. The project supported activities to strengthen the institutional capacity of various actors

involved in the sector, including the General Directorate of Energy within the Ministry; the

utilities, CEB and SBEE; and the Directorate of Forests and Natural Resources in the areas of

corporate planning, renewable energy, administration and regulation, environmental

management and control. The project also supported the establishment of: (i) the Electricity

Regulatory Authority, that is expected to contribute to the promotion of public private

partnership; (ii) the COFORMO and the AFIC, for decentralizing the sustainable management of

natural resources; (iii) the CNCD, for the promotion of gas and biofuel for increasing the access

to cleaner fuels for households and SME sectors; and (iv) an environmental unit within CEB.

80. In the biomass sub-sector, the SIEF and SIEP management tools were developed under

the project to help municipalities and community associations improve the management of

21

natural resources particularly to monitor the implementation of the management plan related to

the 300,000 hectares under sustainable woodfuel management in order to reduce deforestation.

81. The task of implementing the project itself enhanced the project management and

fiduciary as well as safeguards operational capacity of the institutions involved. This will likely

positively impact the preparation and implementation of future projects. Lastly, public

institutions were among the beneficiaries of energy efficiency training programs, and awareness

campaigns that are expected to yield long-term behavioral change toward the rational use of

energy.

(c) Other Unintended Outcomes and Impacts (positive or negative)

82. Not applicable

3.6 Summary of Findings of Beneficiary Survey and/or Stakeholder Workshops

83. Not applicable

4. Assessment of Risk to Development Outcome

Rating: Moderate

84. In light of the identified risks and available mitigation measures, the sustainability of the

ESDP’s development outcomes depends primarily on three factors: (i) inability to maintain the

electricity infrastructures properly due to insufficient budget resulting from a poor financial

situation and/or lack of ownership; (ii) inability to sustain the functioning of the newly created

institutions including the CNCD, COFORMO, and AFIC; and (iii) reduction of imported

generation. The risk to the development outcome is rated Moderate. Adequate measures to

mitigate the identified risks have been put in place, as explained below. However uncertainty

remains as to whether SBEE and CEB will be able to continuously maintain the transmission

lines and substations, the COFORMO and AFIC would be functioning autonomously, and the

generation from suppliers would not be decreased significantly, in the near future.

85. On distribution, SBEE has improved its financial situation following the two tariff

increases that were implemented between 2010 and 2011 which would allow the utility to secure

budget to undertake the maintenance of distribution lines and substations. However, SBEE

would need to: (i) improve its commercial performance particularly the billing system to reduce

the non-technical losses, and (ii) implement measures to increase the collection rate. On the other

hand, the utility CEB has shown during past years its ability to operate and maintain transmission

lines and substations. Despite its projected growing deficit, CEB should be able to allocate

budget for the maintenance and operation of transmission lines and substations in the future.

86. The project did not address the risks to imported generation. Given the country’s reliance

on importing increasingly expensive oil for domestic generation, any reduction in power imports

would likely have significant negative impacts the financial performances of both CEB and

SBEE. To mitigate this risk, CEB and SBEE are actively seeking foreign sources from which to

22

import electricity, though they remain highly dependent on Ghana. Both CEB and VRA, the

Ghanaian utility, are exposed to erratic and unreliable gas supplies that are subject to frequent

disruption or even temporary shut-downs due to pipeline ruptures in Benin and Togo, or

sabotage in neighboring Nigeria. Though the pipeline’s daily capacity now stands at 470mmbtu,

foundation volumes under the contract are a mere 133mmbtu (of which Benin’s share is only

5mmbtu) and only 70% of foundation volumes are being supplied. Although Benin is in

negotiations with Nigeria to increase gas and energy imports, the country faces a worsening

power crisis and is developing more expensive liquid fuel generation solutions to close the

generation gap.

5. Assessment of Bank and Borrower Performance

5.1 Bank Performance

(a) Bank Performance in Ensuring Quality at Entry


87. The performance of the Bank during the identification, preparation, and appraisal of the

project is rated Moderately Unsatisfactory. The Bank facilitated a participatory process in the

sector, bringing knowledge and tools that could be adapted to the Benin context. This included

leveraging Bank safeguards policies in the dialogue to improve resettlement processes. In

addition, the project was consistent with the development priorities of the country and was

designed based on the lessons learned from other projects in Sub Saharan Africa. Moreover, the

project design was informed by previous projects such as the Nangbeto Hydroelectric Project

and the Power Rehabilitation and Extension Project. Regular stakeholder consultations ensured

that there were agreements on project design, scope, and activities.

88. However, outcomes show that there were also significant shortcomings in the scope and

design of the project. The project was overly ambitious on institutional development, and

specifically private sector participation. The formulation of the PDO was overly broad and

included higher level objectives that could not easily be attributed to project outputs, making

assessment of the project’s impact difficult. In addition, the design of the M&E framework

suffered a number of deficiencies. Indicators, target values and units of measurements could

have been better defined.

89. In hindsight, risks were not properly identified. The project design did not sufficiently

recognize the dependency of its success on other segments in the energy value chain, such as

delays to the WAPG on generation costs. This undermined the PSP strategy.

90. The design of the biomass energy and inter-fuel substitution component and institutional

strengthening and capacity building component also underestimated the time required to build

institutions. The ministry in charge of forest management was insufficiently consulted during

project preparation. This led to substantial delays in implementation and only partial

achievement of those objectives.

23

(b) Quality of Supervision

Rating: Moderately Satisfactory

91. The Bank performance during supervision is rated Moderately Satisfactory. After initial

delays on project effectiveness and implementation, the Bank stepped up supervision which

helped to speed implementation and the achievement of project outcomes. The move to a task

team leader based in Cotonou further increased the implementation support and reactiveness of

the Bank, including additional technical missions on an ad-hoc basis. Fiduciary and safeguards

supervision missions were conducted to regularly review compliance and ensured that

recommended actions were properly implemented. Field-based fiduciary and safeguards

specialists also proactively contributed to mitigating risks, as reflected by the project’s good

performance in financial management and administering the resettlement compensation

mechanism. During the initial years of project implementation, the Bank team did not include a

specialist to support the implementation of the biomass component which led to delays in

responses to client requests and contributed to slow implementation progress.

92. Throughout the project, the Bank team remained flexible. As the operating environment

evolved, the team collaborated closely with the Government and Project Coordination Unit to

revise work plans, add or drop activities in line with emerging needs and priorities, and focus on

problematic segments such as the protracted delays in the implementation of Component 6,

where additional resources eventually led to an acceleration in implementation of key activities

and the achievement of most targets. This flexibility was also reflected in the design of the

Additional Financing, including added activities supporting the preparation of the Adjarala

hydropower site in response to power crisis, and two other extensions to the project.

93. While the M&E framework was modified during the restructuring/additional financing of

June 2008, the changes made were not sufficient to properly monitor the progress towards

achievement of the PDOs.

(c) Justification of Rating for Overall Bank Performance


94. The overall Bank performance is rated as Moderately Satisfactory. The Bank team

worked closely and continuously with the client throughout preparation and implementation,

ensuring that the project responded to changing client needs. Three task team leaders led the

project from identification to evaluation. Confronted with unexpected delays in the WAPG and

lack of interest in SBEE from the private sector, the Bank worked with the Government to adjust

the focus of the project mid-implementation from one that aimed at utility privatization to one

that aimed at closing a growing power generation gap. This was accommodated under the same

broad PDO.As the WAGP’s gas supply did not become as dependable as foreseen, integration of

other activities (such as the Adjarala preparatory studies) has helped to speed the Government’s

progress in developing alternative generation options to sustainable address the power crisis.

24

5.2 Borrower Performance

(a) Government Performance


95. The government performance is assessed based on the performance of central

government including: the Ministry of Energy and Petroleum; the Ministry responsible for

Forestry and of Environment, and the Ministry of Finance as borrower on behalf of the

Government of Benin. The Government effectively coordinated with stakeholders involved in

the sector on the design and implementation of the project. Additionally, the Government of

Benin displayed strong committed to the development objectives of the project including the

introduction of private sector participation in SBEE before and during the project preparation.

However, project effectiveness was delayed because of the GoB’s slowness in fulfilling

effectiveness conditions, for example ratification of the subsidiary agreement by the Parliament

took 10 months. The government procedures for approving counterpart funding were

cumbersome, causing delays during the implementation of the project. However, this challenge

was handled adequately after the restructuring of the project, in which SBEE and CEB were able

to provide funding in lieu of the Government. Government approval of documents faced delays.

Although the Government took the necessary steps to implement the legal and regulatory

framework for private sector participation in the sector to improve governance and the financial

viability of the sector, ultimately it did not actively pursue the privatization agenda due to lack of

interest and the difficulties experienced by neighboring countries attempting to make the same

reform.

(b) Implementing Agency or Agencies Performance


96. The implementing agencies which were involved in the implementation of the project

included the Project Coordination Unit within the General Directorate of Energy; the distribution

utility, SBEE and the generation and transmission company, CEB. The overall performance of

the coordinating and implementing agencies is rated Moderately Satisfactory. Despite problems

encountered at the beginning of the project and challenges faced during implementation such as

the lack of flow of information between the Project Coordination Unit and other key players of

the ESDP which caused delays, the implementation of the project was successfully managed

throughout the lifetime of the project. In addition, the project was fully compliant with fiduciary

and safeguards policies throughout implementation. Progress reports, audits, and financial

reports were submitted to the Bank in a timely manner.

(c) Justification of Rating for Overall Borrower Performance


97. In light of the performance of the Government and of implementing agencies, the overall

performance of the Borrower is rated as Moderately Satisfactory. After a slow start, the pace of

25

implementation improved as the Government and the implementation agencies found solutions

to identified bottlenecks. The Borrower also showed flexibility in reacting to changing

circumstances.

6. Lessons Learned

98. Despite many competing needs in the energy sector, projects should remain selective in

their objectives and simple in their design. The combination of power sector reforms,

transmission/distribution investments, and biomass energy activities reflected an overly

ambitious and diffuse approach that could have benefited from further reflection on sector

priorities and risks. This led to implementation delays and to divided attentions both in the

Implementation Agencies and the Bank. Especially the relatively small biomass component

resulted in high transaction costs.

99. Expectations for Private Sector Participation need to be realistic and necessary pre-

conditions should be clearly identified and achievable. Private participation in SBEE was

unsuccessful due to the fact that there was no interest from private sector to undertake the

management of the utility SBEE mainly due to the following reasons: poor technical and

financial performances of the utility; insufficient customer base; and inadequate legal

framework. Similar gaps between expected and realized PSP emerged across the region during

the 1990s and early 2000s as multilaterals and Governments overestimated sector readiness

levels and private sector risk appetites. Privatization could eventually be successful though the

following conditions would need to be satisfied: improved legal framework, particularly as it

concerns concessionary terms; full-fledged and effective regulatory entity in place; suitable size

and financial and technical condition of the utility to attract target investors; sound investment

plan in place for the rehabilitation and/or expansion of networks and for the development of

medium/long term energy infrastructures; adequate tariffs to enable cost recovery; and a

transparent bidding process. It is important to note that the privatization of a state owned

electricity utility, such as SBEE, should therefore be based on its specific condition rather than

on a structural liberalization or privatization program.

100. Project objectives and targets should account for endogenous and exogenous risks

potentially impacting outcomes and recognize inherent interdependency in the value chain. The

project achieved many of its targets, including the completion of the North Togo – North Benin

transmission line and stabilization of the southern distribution loop. Nevertheless, delays in the

completion of the WAGP and pervasive supply constraints from neighboring countries (Ghana,

and Nigeria) impacted the volumes of power being transmitted through these connections. The

project could – and future project should – sufficiently take into account the interdependency

inherent in the value chain to assess risks to project outcomes that may not be under the control

of the project. Where necessary, the project could then put in place a contingency plan to respond

to exogenous shocks in a timely and adequate manner.

101. Institutional development is a transaction-intensive and time-consuming process and

such activities should be advanced as much as possible during project preparation while being

given sufficient priority in project design and implementation. During the implementation of the

ESDP project, it was acknowledged that the setting in place of the AFIC and the COFORMO

26

took more time than anticipated and significantly delayed the implementation of the biomass

component. The project could not have achieved these targets within the initial timeframe

envisaged. In addition, the establishment of the Electricity Regulatory Agency under the reform

component of the project was completed within the project timeframe but the agency was not

effective at project closing due to the fact that key staff remains yet to be appointed. The lengthy

process to complete the appointment of key members of the Project Coordination Unit also

underscores the challenges in setting up national institutions.

7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners

(a) Borrower/implementing agencies

102. The Bank received the Borrower’s Final Draft Completion Report (in French). The

Borrower undertook an evaluation of: the project design and its relevance, the outputs of the

project per component, and the Bank’s and the Borrower’s performance. In addition, the

Borrower highlighted measures for the sustainability of the achieved outcomes and lessons

learned relative to the biomass component. The report did not provide ratings. See Annex 7 for

the summary of the report.

103. Consultations with stakeholders were conducted during the ICR preparation mission, and

the Implementing Agencies noted that the Bank was slow in providing No Objections to

procurement documents during the first years of implementation. However, they confirmed that

delays were reduced since the appointment of a field-based Task Team Leader.

(b) Co-financiers

There were no issues raised by Co-financiers.

(c) Other partners and stakeholders

Not applicable

27

Annex 1. Project Costs and Financing

(a) Project Cost by Component (in US$ Million equivalent)

Components Appraisal Estimate

(US$ millions)

Actual/Latest

Estimate

(US$ millions)

Percentage of

Appraisal

Power sector reform 5.00 5.50 110.00%

Studies 2.60 1.44 55.38%

Investment 66.40 66.70 100.45%

Environmental and social 3.20 0.08 2.50%

Institutional strengthening and

capacity building 5.64 5.66

100.35%

Biomass energy and inter-fuel

substitution 5.75 5.41

94.09%

Total Baseline Cost 88.59 84.79 95.71%

Physical Contingencies 3.55

Price Contingencies 3.56

Total Project Costs 95.70

Total Financing Required 95.70

(b) Financing

Source of Funds Type of

Co-financing

Appraisal

Estimate

(US$ millions)

Actual/Latest

Estimate

(US$ millions)

Percentage of

Appraisal

Borrowing Agency 0.50

Borrower 1.80

International Development

Association (IDA) – Original

credit

45.00 42.6

94.67%

International Development

Association (IDA) – Additional

Financing

7.00 3.22

46.00%

Nordic Development Fund (NDF) 12.00 18.79 156.58%

Société de Gestion Intermédiaire 28.00

Sub-borrower(s) 0.40

West African Development Bank 8.00 8.44 105.50%

28

Annex 2. Outputs by Component

Component 1: Power Sector Reform

Sub-component Outputs

Private sector participation in SBEE Private participation in SBEE was not achieved

due to the fact that no private sector was

interested in the management of SBEE. The

feasibility study for the establishment of a

“Société de Patrimoine” is ongoing.

Regulatory capacity set up and training The Regulatory Agency was set up. Training was

not completed within the project timeframe due to

delays in hiring of key staff, which resulted from

an unsuccessful hiring process through a

recruitment firm.

Media communications and PR activities This activity was completed.

Component 2: Engineering Studies


Strategy for off-grid electrification This study was not completed under the ESDP

project but was completed by the GoB outside the

project.

Feasibility study for Onigbolo-Parakou

transmission line

This study was completed. It was included in the

feasibility study for the construction of the 161kV

Onigbolo-Parakou and Sakété-Porto Novo

transmission line.

Load management & energy efficiency in

administrative buildings

This study was completed. Energy efficiency

improvement measures for administrative

buildings successfully enabled the sensitization of

consumers on the efficient use of energy,

upgrading of the RESUCIEL software for the

monitoring of energy consumption, installation of

capacitor banks in 14 buildings for power factor

improvement, and enhancement of the wirings

and installation of equipment for the efficient use

of energy in 80 buildings.

Studies for distribution expansion,

reinforcement and rehabilitation

This study was started under the ESDP and was

completed after project closing in March 2013.

EA, engineering & preparation of bidding

documents for Sakété - Porto Novo

transmission line

Two studies were completed. The first study was

the feasibility and preparation of bidding

document for the construction of the 161kV

Onigbolo-Parakou and Sakété-Porto Novo

transmission line. The second study concerned

the environmental assessment related to the

construction of the 161kV Onigbolo-Parakou and

29

Sakété-Porto Novo transmission line.

Update the CEB tariff study The update was completed.

Preparation of standard bidding document

for IPPs

This study was started under the ESDP but was

not completed.

Additional Financing Outputs

Economic analysis of the Adjarala hydro

generation project

This study was completed in October 2012.

Panel of experts in the context of

preparation of the Adjarala hydro

generation project

The setting in place of the panel of experts

commenced but was not completed under the

ESDP project.

Hiring of an Engineering Consultant for the

preparation of the Adjarala hydro

generation project

Terms of Reference were elaborated under the

ESDP project. This activity is now financed by

CEB.

Component 3: Transmission and Distribution System Expansion


North Togo-North Benin Transmission

Line:

Lot 1b Substation in Djougou-Parakou

(Benin);

Lot 3 161 kV line from the Togo-Benin

border to Djougou Parakou;

Lot 4 63 kV lines to Natitingou and

Bembèrèkè.

The three activities were completed as follows:

The two transmission substations at Parakou and

at Djougou were constructed and commissioned

in April 2011. 163km of 161kV lines between

Natitingou and Djougou and 106km of 161kV

lines between Bembèrèkè and Parakou were

constructed and commissioned.

Energy Efficiency in administrative

buildings

This sub-component was fully implemented. The

following activities were completed: sensitization

of consumers on the efficient use of energy in

administrative buildings; upgrading of the

RESUCIEL software for the monitoring of

energy consumption in administrative buildings;

installation of capacitor banks in 14

administrative buildings to improve the power

factor; enhancement of the wirings and

installation of equipment for the efficient use of

energy in 80 administrative buildings; purchase

of materials and equipment for the undertaking of

energy audit.

Urgent distribution work This sub-component was completed. The 5MVA

distribution substation at Sèmè and the extension

of the Akpakpa, Gbégamey, and Ouando existing

substations were completed in December 2011. In

addition, the installation of 15kV underground

cables and the construction of distribution

stations were commissioned in October 2010.

30


SBEE Rehabilitation of switchgear and

protection equipment at the substation of

Akpakpa power plant

This activity was completed in September 2012.

SBEE Construction of a distribution line in

Cotonou

The installations of distribution cables and of a

distribution station in Cotonou were completed in

September 2012.

CEB Installation of protection equipment at

substations to allow for operation of the

southern transmission ring in Benin

Bidding documents were prepared but the

installation of protection equipment at CEB

substations was not completed under the project.

CEB Provision of cable potheads to link up

the Djougou and Parakou substations with

the Medium Voltage (MV) lines and

related communication equipment

This activity was completed.

Extension of the supervision contracts to

accommodate additional tasks above

The implementation of this activity progressed

but was not completed under the ESDP project.

Component 4: Environmental and Social Component


Environmental Assessment for relocation

of Gas turbine of 20MW to a site outside of

Cotonou.

This activity was dropped because the GoB

decided to not relocate the Gas turbine.

Compensation scheme for the HV lines

The compensation scheme was established. The

environmental management plan and the

resettlement of populations were fully

implemented.

Environmental audit for SBEE The audit was not completed.

Environmental study of the Adjarala hydro

generation project

The study was not completed. The procurement

process started under the ESDP project.


Environment Audit of Sèmè Oil Field

The audit was not completed.

Component 5: Institutional Strengthening and Capacity Building


Capacity building at the Ministry, and DGE

This sub-component was completed. The

institutional diagnostic of the Ministry of Energy,

the training of its key staff and of staff from the

Project Coordination Unit were undertaken.

Capacity building at CEB

The implementation of this activity was done.

Training of CEB staff on planning, financial

management, and environment was conducted.

31

Vehicles and office equipment

The purchase of vehicles and office equipment

was completed.

Measuring equipment at CEB substations Measuring equipment including energy meters

were installed at CEB substations.

CEB human resource management audit The audit was not completed.

SBEE human resource management audit The audit progressed under the ESDP project.


Technical Assistance on Financial

Management for SBEE

Technical assistance was started under the project

but not completed.

Training for SBEE A hundred staff from SBEE received training.

Component 6: Biomass Energy and Inter-fuel Substitution (US$6.20 million, IDA:

US$5.70million)


Establishment of the National Household

Energy Commission (CNCD);

Establishment of the Permanent Sectorial

Information and Monitoring System

(SIEP); Establishment of the Ecological

and Forestry Information System (SIEF);

Rural Community Capacity Development

in Moyen Ouèmè region; and Capacity

building at General Directorate of Forest

and Natural Resources

The achieved outputs of this sub-component are

as follows: The National Household energy

Commission (CNCD) was established and is

functioning; the Ecological and Forestry

Information System (SIEF) was set up and is

functioning; the CoForMo(Communauté

Forestière du Moyen Ouèmè) and the AFIC

(Agence Forestiere Inter-Communale) were

established and are functioning. Capacity

building for the General Directorate of Forests

and Natural Resources commenced under the

ESDP project and was partially completed.

Support to Community-based forest

management and strengthening of Forestry

Service

A forest management covering 295,295 ha was

developed under the project. The procurement

process of a technical assistance for the

promotion of improved carbonization systems to

maximize wood to charcoal conversion efficiency

has started under the project but was not

completed. The transfer of unclassified forests

management to local government in the Moyen

Ouémé is effective and 295,295 ha of forests are

under community based sustainable management;

The production of sustainable woodfuel has not

yet started.

Biomass Energy Efficiency and Inter-fuel

substitution

The procurement process for the purchase of

4,800 gas stoves was launched but not completed.

The purchase of 30,000 improved cook stoves

was completed under the project. In addition, the

study for the promotion of the use of biofuel was

completed.

32

The promotion of private sector based LPG and

kerosene inter-fuel substitution programs, and

identification and evaluation of the potential to

produce and market other renewable biomass

fuels started under the project but was not

completed.

Rural community development support

The project promoted 120 apiarists in 12 villages

who have established 840 hives. 12 facilities for

the processing of honey were constructed in

Dassa, Save, and Tchaourou districts. In addition,

12 water drilling systems were constructed and

commissioned in January 2011in the same areas.

33

Annex 3. Economic and Financial Analysis

Economic Analysis

1. During appraisal, the task team carried out an economic assessment of the

interconnection North Togo / North Benin by means of a comparative analysis in which the

transmission line solution is measured against an alternative solution based on isolated diesel

power plants. The net economic benefits thus expressed the benefits gained of choosing the

interconnection over the alternative. Economic rate of return was then estimated at 35% while

net present value reached US$ 65 million.

2. The updated assessment of this ICR replicates the same methodology while using actual

values instead of expected values for the period 2004-2012. The main data modified are: supply

in Northern Benin1; breakdown of capital expenditure for the transmission line over the period

2005-2011; bulk energy charge; diesel charge and exchange rate.

Original PAD Updated

Bulk Energy Charge 37.5 FCFA /kWh 50 FCFA /kWh

Diesel Charge 13 US cents /kWh 20 US cents /kWh

Cost of power failure 1US$/kWh 1 US$ /kWh

Exchange rate 550 FCFA/US$ 493 FCFA/US$

Discount Rate 10% 10%

Supply shortage % under

Interconnection Scenario

1.5% 1.5%

Supply shortage % under

Isolated Plants Scenario

4.5% 4.5%

3. Investments for isolated diesel plants in the Isolated Plants Scenario were cut by half.

The underlying rationale to this assumption is that actual energy supplied to CEB northern region

is almost half what was projected at appraisal stage; hence the need for investments in isolated

diesel plants would have been also cut in half (while transmission investment is unchanged).

This has significant implications on the economic return of the project which was revised

downwards from 35% down to 19%. Net Present Value dropped from US$ 65 million down to

US$ 16 million. However, the project remains profitable from an economic point of view despite

serving a lower demand.

4. Economic cost of supply in interconnection scenario is 24 US$ cents per kWh versus 28

US$ cents per kWh in isolated plants scenario. Again, had the demand been higher, the spread

between the two costs would have been larger than 4 US$ cents per kWh

1 Demand is expected to grow at 8% per annum as of 2013.

34

Energy Supply to the northEnergy Demand - GWh NPV 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

CEB Northern Region 384.8 0.0 0.0 0.0 20.7 44.2 52.1 53.2 60.0 63.0 68.0 73.4 79.3 85.7 92.5 99.9 107.9 116.5

Supply Shortage - GWh

interconnection 5.8 0.0 0.0 0.0 0.3 0.7 0.8 0.8 0.9 0.9 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7

isolated power stations 17.3 0.0 0.0 0.0 0.9 2.0 2.3 2.4 2.7 2.8 3.1 3.3 3.6 3.9 4.2 4.5 4.9 5.2

interconnection linecosts in MUSD NPV 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

total investment transmission lines $45.47 0 7.9 14.4 18.6 20.3 1.5 1.1 3 0 0 0 0 0 0 0 0 0

total energy charge from the grid $35.48 0.0 0.0 0.0 2.1 4.5 5.3 5.4 6.1 6.4 6.9 7.4 8.0 8.7 9.4 10.1 10.9 11.8

total O&M $7.06 0.0 0.0 0.0 0.2 0.6 1.0 1.5 1.6 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7

economic cost of energy supplied 23 US cents per kWh

Economic costs of TL power failure $5.25 0.0 0.0 0.0 0.3 0.7 0.8 0.8 0.9 0.9 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7

economic cost of energy supplied inc. shortage 24 US cents per kWh

isolated power stations in northern towns2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

total investment power plants $23.86 0 0.5 20 2.5 0 3.5 0 0 3 0 2.5 0 3.5 0 1 2.5 4

total O&M $69.96 0.0 0.0 0.0 4.1 8.8 10.4 10.6 12.0 12.6 13.6 14.7 15.9 17.1 18.5 20.0 21.6 23.3

economic cost of energy supplied 24 US cents per kWh

Economic costs of TL power failure $15.74 0.0 0.0 0.0 0.9 2.0 2.3 2.4 2.7 2.8 3.1 3.3 3.6 3.9 4.2 4.5 4.9 5.2

economic cost of energy supplied inc. shortage 28 US cents per kWh

Cost Difference excl. shortage $5.82 $0.00 ($7.40) $5.60 ($14.26) ($16.50) $6.11 $2.62 $1.35 $7.54 $5.03 $8.07 $6.15 $10.27 $7.45 $9.18 $11.47 $13.82

ERR excl. cost of shortage 14%

Cost Difference incl. shortage $16.31 $0.00 ($7.40) $5.60 ($13.64) ($15.18) $7.67 $4.21 $3.15 $9.43 $7.07 $10.27 $8.53 $12.84 $10.23 $12.18 $14.70 $17.31

ERR including incl. cost of shortage 19%

35

Financial Situation of CEB

5. The appraisal team had found that CEB had very little margin for maneuvering in an

environment of rising costs and continuous deterioration of CEB’s financial position. Losses in

2011 had reached 11.1 billion FCFA. In April 2002, CEB was allowed to raise tariffs and this

improved the situation. As a result, the rate of return on average net fixed assets increased from a

negative 11% in 2001 up to a positive 9% in 2002.

6. CEB’s financial projections by the team for the period 2004-2010 were based on the drop

in power generation cost driven by the supply of cheaper gas from Nigeria through a gas pipeline

as of 2005 and the operation of hydropower plant at Adjarala as of 2008. Nevertheless, Adjarala

plant has been delayed and now expected to be commissioned by 2017/2018. Furthermore, the

gas supply from Nigeria began in 2011 and is more expensive than expected. (9 US$ /mmbtu).

The contractual gas volumes are not usually met and the supply has been erratic (one year

suspension from 2012 to 2013). For all of these reasons, the expected drop in generation cost did

not materialize; at least not at the magnitude projected.

7. However, CEB was still able to navigate through this environment posting positive results

up until 2010 (except for 2005 where net income was -2.2 billion FCFA). Tariff has gradually

increased during this period from 50 FCFA /kWh in 2004 up to 56 FCFA in 2010.

8. CEB is today in a difficult financial situation. While it had a positive net result in 2009

and 2010 (respectively 4.4 and 3.8 US$ million), the situation deteriorated in 2011 (deficit of 6.2

US$ million) and CEB now forecasts a large deficit for 2012 (49 US$ million) and 2013 (34

US$ million).

9. The reason for this degradation is that CEB’s average cost is increasing while the average

tariff is stable (see graph below). The main reason for this evolution is the lack of gas supply

from the WAPCo pipeline since a loss of pressure incident in August and temporary shutdown.

As a consequence CEB has to buy expensive HFO based power from Contour Global, an IPP

which was originally developed to run on natural gas. Demand growth also has an impact albeit

smaller in the short term. As demand grows, CEB has to increasingly resort to energies with high

marginal cost.

36

Figure 1: CEB’s Average Tariff, Average Cost (FCFA), and Net Result (FCFA billion)

Source: CEB financial statements and forecasts

10. While the key problem lies with the increase in average cost of generation, the efficiency

of the CEB and its 488 staff should be increased, CEB’s productivity increased in 2012 (from 3.8

to 4.4 GWh sold/staff) but it is way below other similar companies such as Ghana’s GRIDCo

(14.0 GWh sold/staff) and French’s RTE (59.9 GWh sold/staff).

11. As a result of the financial difficulties, CEB and the governments of Togo and Benin

agreed on an increase from the current CEB tariff from 56 FCFA/kWh to 58 FCFA/kWh (less

than what CEB asked for). CEB also asked for an annual automatic adjustment (upwards or

downwards) instead of the 5 year average cost methodology that cannot take into account

unexpected changes (the governments have not agreed on this yet).

1.5 3.0 2.2 1.9

(3.1)

(24.6)(17.0)

51 51 58 56 54

54 56

40 41

51 50 52

63 67

(40.0)

(20.0)

-

20.0

40.0

60.0

80.0

2007 2008 2009 2010 2011 2012 2013

FCFA

/kW

h f

or

aver

age

cost

/rev

enu

esFC

FA b

illio

n f

or

net

res

ult

an

d s

ub

sid

ies

Net result

Average tariff

Average operating cost

37

Annex 4. Bank Lending and Implementation Support/Supervision Processes

(a) Task Team members

Names Title Unit Responsibility/

Specialty

Lending

Supervision/ICR

Sylvain Adokpo Migan Sr Water & Sanitation Spec. TWIAF

Hugues Agossou Sr Auditor IADVP

Itchi Gnon Ayindo Senior Procurement Specialist AFTPW

Mohamed Arbi Ben-Achour Consultant AFTN2

Manuel Berlengiero Energy Specialist AFTG2

Jean-Charles De Daruvar Senior Counsel LEGAM

Rahmoune Essalhi Procurement Assistant AFTG1

Stephan Claude Frederic

Garnier Sector Leader AFTSN

Franklin Koffi S.W. Gbedey Energy Specialist AFTG2

Daria Goldstein Senior Counsel LEGLE

Thanh Lu Ha Senior Program Assistant AFTG2

Alain Hinkati Sr Financial Management Specia AFTMW

Helena Mamle Kofi Consultant AFTG1

Astrid Manroth Senior Energy Specialist ECSEG

Said R. Mikhail Consultant AFTG1

Fanny Kathinka Missfeldt-

Ringius Senior Energy Economist MNSSD

Pepita Hortense C. Olympio Program Assistant AFMBJ

F. Alain Onibon Agric. Economist AFTA1

Alain Ouedraogo Energy Specialist SEGES

Robert A. Robelus Consultant AFTN2

Cheikh A. T. Sagna Senior Social Development Spec AFTCS

Awa Seck Senior Economist AFTG2

Abdoul-Wahab Seyni Senior Social Development Spec AFTCS

Katherine Deaton Steel Energy Specialist AFTG2

Tjaarda P. Storm Van

Leeuwen Consultant AFTG1

Sylvie Charlotte Ida do Rego Program Assistant AFMBJ

38

(b) Staff Time and Cost

Stage of Project Cycle

Staff Time and Cost (Bank Budget Only)

No. of staff weeks US$ Thousands (including

travel and consultant costs)

Lending

FY03 150.68

FY04 181.78

FY05 36.11

FY06 0.00

FY07 0.00

FY08 0.00

Total: 368.57

Supervision/ICR

FY03 0.00

FY04 0.00

FY05 147.64

FY06 101.17

FY07 112.20

FY08 181.36

Total: 542.37

39

Annex 5. Summary of Borrower's ICR and/or Comments on Draft ICR

(Full text in French)

Dans le souci de mettre en place un meilleur environnement pour les activités économiques,

culturelles et sociales; le Gouvernement a engagé une série de réformes notamment la fourniture

de services énergétiques de qualité et le développement des réseaux de distribution. C’est dans

cette logique que le Projet de Fourniture de Services d'Energie (PFSE, projet d'envergure

nationale a été initié suite à plusieurs constats. Il s’agit entre autres de la mauvaise qualité des

services énergétiques, de l'utilisation à grande échelle de la bioénergie traditionnelle, de l'abandon

de l’ancien projet d'interconnexion du réseau électrique du Nord-Benin et du Nord-Togo pour

faute de financement, de la nécessité de réaliser des travaux urgents sur les réseaux électriques de

Cotonou, Porto-Novo et Abomey Calavi pour améliorer la qualité et la disponibilité de l'énergie

électrique, du besoin de formation des cadres du secteur de l'énergie dans certains domaines. Pour

apporter des solutions à ces différents problèmes et proposer aux entreprises et aux ménages des

services énergétiques de bonne qualité et à un coût réduit et de favoriser la production et

l'utilisation de biocombustibles modernes, le Gouvernement du Bénin a négocié avec les

partenaires au développement le financement du projet pour un coût initial de52, 635 milliards

de francs CFA sur une durée de quatre ans. En 2008, le projet a bénéficié d’un crédit additionnel

d’un montant de 3,5 milliards de francs CFA (soit 4 300 000 DTS), portant ainsi le coût total du

projet à56, 135 milliards de francs CFA.

L'objectif principal du projet est d'élargir l’accès des zones urbaines, périurbaines et rurales à

l'énergie moderne et ce faisant d'améliorer la qualité de vie des communautés concernées.

Description et démarrage du projet

Historique

La politique économique adoptée par le Bénin vise à terme le rétablissement des équilibres

macro-économiques et une meilleure efficacité dans tous les secteurs de l’économie nationale.

Avec l’avènement du renouveau démocratique, le Bénin est passé d’une économie planifiée à une

économie libérale dont la croissance économique a été en 2002 environ de 6,4%. Mieux avec le

développement du commerce international et la mondialisation de l’économie, le Bénin se doit

tenir compte des règles et normes établies par une économie internationale de plus en plus

concurrentielle. Dans une stratégie de développement durable où la lutte contre la pauvreté sera

une priorité, le secteur de l’énergie occupera une place de choix pour le développement socio-

économique de la Nation.

L’économie béninoise est extrêmement sensible aux problèmes énergétiques au regard de la

facture énergétique contraignante, de la faiblesse de la compétitivité des entreprises de production

liée entre autres à des problèmes de disponibilité de l’énergie électrique de qualité et au coût

relativement élevé de l’électricité, de l’importance de la consommation de la biomasse énergie

(67% de la consommation totale d’énergie en 2002) par rapport aux autres formes d’énergie et de

la faible efficacité énergétique entraînant un impact considérable sur l’environnement

(déforestation, pollution de l’air, etc.).

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C’est face à ces contraintes, que le Projet de Fourniture de Services d'Energie, est initié en vue

d’apporter des solutions urgentes devant impulser l’économie Nationale, offrir de meilleures

conditions de vie au sein des ménages et préserver l’environnement.

Objectifs du projet

L'objectif principal du projet est d'élargir l’accès des zones urbaines, périurbaines et rurales à

l'énergie moderne et ce faisant de contribuer à l’amélioration de la qualité de vie des

communautés concernées.

A cet effet, quatre objectifs de développement ont été définis pour le projet à savoir :

1. Accélérer de manière commercialement soutenable, l'utilisation de l'électricité pour la

croissance économique et les services sociaux afin d'améliorer la qualité de vie dans les

zones non desservies ou mal desservies (périurbaines et rurales) ;

2. Renforcer la capacité du Bénin à étendre ses services énergétiques ;

3. Promouvoir la cooperation régionale ;

4. Améliorer la gouvernance du sous-secteur de la biomasse-énergie et renforcer les

capacités des institutions intervenant dans la gestion du sous-secteur.

Composantes du projet

Le projet comprend six composantes à savoir, (i) la Réforme du secteur de l’énergie, (ii) les

Etudes d’ingénierie, (iii) les Investissements, (iv) les Aspects environnementaux, (v) le

Renforcement institutionnel et développement des capacités et (vi) la Biomasse-énergie et

énergies de substitution.

Objectifs par composante

La composante « Réforme du secteur de l’énergie » vise à assurer l’assistance conseil à la

SBEE pour la création d’un partenariat public-privé pour la distribution de l’électricité, et

l’aide à l’établissement d’un système réglementaire et d’un Organe de régulation du secteur

de l’électricité.

La composante « Etudes d’ingénierie »vise la réalisation des études d’ingénierie dans le

but de renforcer la distribution électrique au Bénin dans les zones rurales et urbaines.

La composante « Investissements » est la plus importante du projet. Elle comprenddeux

sous-composantes à savoir : (i)Sous-composante Transport: Interconnexion Nord-Togo

et Nord-Bénin dont le but est de permettre aux villes du nord du Bénin d’être connectées

au réseau de la CEB et de bénéficier d’une électricité dont le coût de revient est inférieur à

celui des groupes diesels isolés actuels ; (ii)Sous-composante Distribution pour d’une

part la fourniture et la pose d’équipements nécessaires pour améliorer l’efficacité

énergétique des bâtiments administratifs et d’autre part pour la réalisation des travaux de

renforcement et d’extension des réseaux électriques de Cotonou, Porto-Novo et Sèmè

pour le bon fonctionnement du système de distribution.

La composante« Aspects environnementaux » vise à prendre en compte les aspects

environnementaux et sociaux du projet.

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La composante « Renforcement institutionnel et développement des capacités » vise à

renforcer les capacités des structures intervenant dans le secteur de l’énergie, sous tutelle

du Ministère en charge de l’énergie et les aider à établir et à opérationnaliser leurs rôles et

fonctions dans le secteur.

La composante « Biomasse-énergie et énergies de substitution » vise la rationalisation

du sous-secteur de la biomasse énergie et la promotion des énergies alternatives efficaces

de substitution au bois-énergie pour le secteur des ménages et les PME, y compris des

combustibles endogènes renouvelables.

Le PFSE a bénéficié, en 2008, d’un Fonds Additionnel d’une valeur de sept (07) millions de

dollars soit environ trois milliards cinq cent millions (3 500 000) de francs CFA. Ce Fonds est

destiné à financer les activités étendues du projet qui ont augmenté proportionnellement le

programme du projet en vue d’améliorer l'impact de développement du projet de façon rentable.

Organisation et réalisation du projet au sein du Ministère de tutelle, des autres ministères et

des agences partenaires dans l’exécution du projet

Les organes de mise en œuvre

Le PFSE est placé sous l’autorité du Ministère de l’Energie, des Recherches Pétrolières et

Minières, de l’Eau et du Développement des Energies Renouvelables (MERPMEDER) et sous la

responsabilité de la Direction Générale de l’Energie (DGE).

La Coordination Générale du projet est assurée par une Unité de Coordination du Projet (UCP)

logée à la DGE. Plusieurs structures sont impliquées dans la mise en œuvre des différentes

composantes du projet. Il s’agitde :

la Direction Générale de l'Energie (DGE) ;

la Communauté Electrique du Bénin (CEB) ;

la Société Béninoise d'Energie Electrique (SBEE);

la Direction Générale des Forêts et des Ressources Naturelles (DGFRN);

le Centre National de Télédétection et de surveillance du couvert végétal (CENATEL);

la Communauté Forestière du Moyen-Ouémé regroupant les Communes de Dassa-Zoumé,

de Savè, de Ouèssè, de Glazoué et de Tchaourou.

Le système de suivi-évaluation

Pour la mise en œuvre du projet, il est prévu selon le manuel de procédure, un cadre logique par

composante et un système d’information qui sous-tend les rapports trimestriels, semestriels et

annuels.

Système de gestion des risques

Il est à noter que dans le cadre du présent projet, plusieurs outils ont été élaborés notamment le

manuel d’exécution du PFSE. Seulement, parmi ces outils, il n’est apparu à aucun niveau l’outil

relatif au tableau des risques.

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Conception, exécution, réalisation et impact du projet

Evaluation de la conception et de la pertinence du projet

L’évaluation de la pertinence vise deux priorités. Il s’agit de porter un jugement sur la mesure

dans laquelle les objectifs du PFSE :

(i) s’inscrivent dans le cadre de la politique globale et de la stratégie de développement

du secteur de l’énergie au Bénin (cohérence externe) ;

(ii) correspondent aux besoins et aux priorités des bénéficiaires (cohérence interne).

L’évaluation de la pertinence s’intéresse également à la quantité et à la qualité des ressources

(humaines et financières) allouées au programme pour la réalisation de ses activités ainsi qu’à la

pertinence des stratégies et des procédures de mise en œuvre (cohérence interne).

Le projet, de par son organisation à travers la conception des six composantes, est bien pensé. En

effet, de l’analyse des informations recueillies auprès des acteurs du projet, il ressort que la

Banque Mondiale (BM), avant le démarrage, a procédé à une pré-évaluation des agences

d’exécution, notamment en ce qui concerne leur capacité technique, leur capacité en matière de

gestion financière et en matière de passation des marchés. Sur cette base le projet a, par exemple,

dévolu la responsabilité de la passation des marchés à chaque agence d’exécution à savoir la

SBEE et la CEB.

Au niveau de l’UCP, l’équipe complète n’était pas en place au démarrage, c’est au cours de la

mise en œuvre que la nécessité de mettre en place telle ou telle équipe s’est fait sentir.

Par ailleurs, certaines composantes du projet ont fait l’objet de critique de par leurs insuffisances

au plan structurel et ayant freiné la mise en œuvre. Il s’agit du caractère complexe de la

composante Biomasse qui a été souligné avec pour corollaire plusieurs difficultés de mise en

œuvre de certaines activités de cette composante.

Il est également noté que dans la structuration du projet, le positionnement de la cellule

« Efficacité Energétique » n’a pas facilité l’exécution des activités parce que noyé dans les

composantes, ingénierie et investissement. Elle ne dispose pas d’une autonomie fonctionnelle lui

permettant de mettre en œuvre convenablement son plan de travail.

La Composante « Aspects environnementaux », bien que prévue, il manquait un responsable

chargé d’exécuter le travail de façon formelle car le cadre de gestion environnementale et sociale

du projet a été tardivement mis en place.

Dans l’ensemble, la conception du projet est satisfaisante dans la mesure où elle a permis :

la fourniture d’énergie électrique fiable (à plein temps) provenant du réseau interconnecté

du Nord du Togo pour les localités du Nord-Bénin, suite à la réalisation des travaux

d’interconnexion électrique du Nord-Bénin et du Nord-Togo;

la promotion de l’efficacité énergétique au niveau de l’administration publique ;

le renforcement des réseaux de distribution de la SBEE dans les villes de Cotonou, Sèmè

et Porto-Novo ;

la promotion des conditions favorables à la substitution énergétique dans le sens d'une

meilleure efficacité énergétique ;

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le développement des capacités techniques de gestion durable des ressources forestières

du domaine protégé de l’espace CoForMO pour la production du bois-énergie basée sur

des plans d’aménagements ;

le renforcement des capacités des acteurs du secteur énergie.

Principaux résultats obtenus par composante du projet

Au 31 décembre 2012, le PFSE a atteint un niveau d’exécution physique des activités satisfaisant.

Par composante, les détails sur le niveau d’exécution montrent ce qui suit :

Composante« Réforme du secteur de l’énergie »

Les résultats obtenus au niveau de cette composante sont structurés en trois points :

Mise en œuvre d’un plan de redressement technique, financier commercial et

organisationnel de la SBEE sur décision du Gouvernement. Ce qui a permis (i) la

diminution de la production thermique (arrêt des locations de groupes, diminution de

combustibles utilisés) à la faveur du développement des interconnexions ; (ii) le relèvement

des tarifs (en 2009 et en 2010) qui ont mis fin à la vente à perte du produit ; (iii)

l’actualisation de la formule d’indexation tarifaire en vue de son application et (iv) la prise

en charge par l’ABERME des investissements relatifs à l’électrification des zones rurales

(qui ne sont pas rentables).

Elaboration et mise en œuvre par le Cabinet TROPIC COMMUNICATION des plans de

communication sur les composantes du projet PFSE.

Composante « Etudes d’ingénierie »

Au niveau de cette composante, les résultats obtenus se résument comme suit :

Réalisation des études pour l’efficacité énergétique et la gestion de la puissance appelée

dans les bâtiments administratifs : il s’agit des audits énergétiques réalisées sur 44 sites

administratifs, d’une étude relative à l’élaboration de la stratégie d’économie d’énergie dans

le secteur public, d’une étude relative au code d’efficacité énergétique dans les bâtiments :

Normes relatives aux bâtiments administratifs, ainsi qu’une étude relative à l’évaluation des

projets pilotes d’économie d’énergie réalisés sur 5 sites administratifs ;

Réalisation de l’étude de faisabilité pour les lignes d’interconnexion 161 kV Onigbolo-

Parakou et Sakété-Porto/Novo ;

Réalisation de l’évaluation environnementale relative à la construction des lignes

d’interconnexion 161 kV Onigbolo-Parakou et Sakété-Porto/Novo ;

Composante « Investissements » .Les résultats obtenus se présentent comme suit par sous-

composante :

Sous-composante Transport, avec la réalisation de l’interconnexion du réseau de transport de

l’énergie électrique du Nord-Togo à celui du Nord-Bénin par la construction des six grands

ouvrages ci-après : (i) 254 km de ligne 161 kV entre la frontière du Togo jusqu’à Parakou en

passant par Djougou (ii) deux (02) postes de transformation HT/MT (Djougou et à Parakou), (ii)

deux (02) lignes parallèles de 20 kV reliant le nouveau poste de Parakou à la centrale thermique

et au poste de 20 kV existant, (iv) 76 km de ligne 33 kV raccordant Natitingou à Djougou, (v)

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106 km de ligne 33 kV raccordant Bembèrèkè à Parakou, (vi) deux (02) postes de transformateurs

HT/MT à Natitingou et Bembèrèkè.

Sous-composante Distribution : les résultats suivants au niveau du volet Efficacité Energétique

sont obtenus :

o Des matériels et supports de sensibilisation à l’utilisation rationnelle de l’énergie (dépliants,

affiches, étrennes, panneaux, autocollants, spots, films audio-visuels) ont été conçus,

réalisés et diffusés dans les structures administratives (ministères et institutions de l’Etat)

ainsi qu'au niveau des différentes chaînes de télévision et de radio (ils ont également servi à

l’organisation des campagnes de sensibilisation à l’utilisation rationnelle de l’énergie) ;

o Quatorze (14) armoires de batteries de condensateurs à compensation automatique, de

capacité totale 770 KVAr, ont été acquises et posées au niveau de 14 abonnés de la

moyenne Tension de l’administration publique pour corriger les mauvais facteurs de

puissance précédemment diagnostiqués au niveau des installations électriques intérieures.

Ainsi par la suppression des pénalités antérieurement facturées, une économie financière

annuelle de 36 millions de F CFA au moins a été réalisée pour un investissement de 46

millions F CFA environ ;

o Des dispositifs de limitation de la durée de fonctionnement des équipements électriques en

absence des usagers dénommés « économiseurs d’énergie » sont acquis et posés à titre

expérimental dans quatre-vingt (80) bureaux administratifs : 20 à 40% d’économies

d’énergie sur les consommations d’électricité de ces bureaux sont attendues ;

o Des travaux d’implantation de projets pilotes en efficacité énergétique ont été réalisés sur

cinq sites administratifs. D’après l’évaluation justifiée faite par la firme canadienne

Econoler, une économie annuelle d’énergie de plus de 382 MWh, soit un gain financier de

plus de 41 millions de F CFA par an est réalisé sur les dépenses liées aux consommations

d’électricité de l’administration publique suite aux mesures mises en œuvre et qui peuvent

se généraliser sur les autres bâtiments administratifs ;

o Au niveau du volet Renforcement du réseau de distribution, les résultats ont porté sur la

réalisation de travaux d’amélioration de réseau de distribution d’électricité dans les villes de

Cotonou, Porto-Novo et Sèmè avec notamment : (i) la construction dans la Zone Franche

Industrielle de Sèmè d’un poste de transformation 63/15 KV de capacité 5MVA, (ii)

l’extension de plusieurs sous-stations existantes (Akpakpa et Gbégamey à Cotonou,

Ouando à Porto-Novo), (iii) le renforcement de la liaison 63 KV entre les postes de Vèdoko

et de Gbégamey par la pose de 4,6 km de câbles souterrains, (iv) le renforcement de réseau

de distribution à Cotonou et Porto-Novo par la construction de 18,4 km de ligne MT et de

postes de transformation.

Composante « Aspects environnementaux ». Au niveau de cette composante, deux (2)

principaux résultats sont à retenir : (i) le dédommagement des populations touchées le long de la

zone d’emprise de la ligne d’interconnexion Nord-Togo Nord-Bénin, (ii) la réalisation du schéma

de compensation pour la ligne d’interconnexion électrique Onigbolo-Parakou et Sakété-

Porto/Novo.

Composante« Renforcement institutionnel et développement des capacités ».A ce niveau six

(6) principaux résultats : (i)réalisation de l’étude relative au diagnostic institutionnel du Ministère

en charge de l’Energie, (ii) formation des membres de l’Unité de Coordination du PFSE et de

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certains cadres du secteur de l’énergie et de l’Administration centrale du Ministère, (iii)

formation des cadres de la CEB dans les domaines de planification, de la gestion financière et

environnementale, (iv) acquisition des équipements de mesure pour les sous-stations de la CEB

en vue d’améliorer la facturation et le développement d’une structure tarifaire plus efficace, (v)

réalisation en cours de l’audit de gestion des ressources humaines de la CEB, (vi) démarrage de la

réalisation par le consultant GECA Prospective de l’audit de gestion des ressources humaines de

la SBEE. Les activités qui n’ont pu être achevées ont été transférées au projet DAEM.

Composante « Biomasse-énergie et énergies de substitution ». Les résultats obtenus se

présentent comme suit par sous-composante :

Sous-composante Développement des capacités institutionnelles du sous-secteur de la

biomasse-énergie avec : (i) la création et la mise en place de la Commission Nationale des

Combustibles Domestiques (CNCD) qui a démarré ses activités le mardi 07 juillet 2009, (ii) la

conception et la mise en place à la Direction Générale de l’Energie (DGE) du Système

d’Information pour l’Evaluation Permanente des combustibles domestiques (SIEP), (iii) la mise

en place à la DGE d’un Système d’Information Géographique (SIG), (iv) la conception et la mise

en place au CENATEL du Système d’Information Ecologique et Forestier (SIEF), (v) la

construction de quatre postes forestiers dans le cadre de l’appui du projet à l’administration

forestière pour une surveillance plus efficace des activités de production du bois-énergie dans la

région du Moyen-Ouémé, (vi) l’appui technique et financier à cinq (05) communes des

départements des Collines et du Borgou (Dassa, Glazoué, Ouèssè, Savè et Tchaourou) pour la

création d’une Association dénommée la Communauté Forestière du Moyen Ouémé (CoForMO)

en vue de mettre en place des systèmes de gestion planifiée et écologiquement soutenable des

ressources forestières exploitables pour la production du bois-énergie (bois de feu et charbon de

bois). Le processus de mutation de la CoForMO en un Etablissement Public de Coopération

Intercommunale (EPCI) est en cours. La CoForMO est dotée d’une structure technique

dénommée Agence Forestière Inter-Communale (AFIC). Avec l’appui du projet, le personnel de

cette agence a été mis en place le 27 janvier 2011 et a intégré en août 2011 les locaux de ladite

agence construite sur financement du projet, (vii) la conception d’un cadre d’assistance de l’Etat

aux communes de la CoForMO par l’élaboration d’un Contrat-plan entre l’Etat et la CoForMO.

Toutefois, suite aux dispositions prévues par la loi N°2009-17 du 13 août 2009, portant modalité

de l’intercommunalité en République du Bénin, qui prévoie que l’association entre communes en

République du Bénin ne peut se faire que dans le cadre d’un Etablissement Public de Coopération

Inter-commune EPCI, le PFSE a appuyé la CoForMO à entreprendre le processus de sa mutation

en un EPCI.

Sous-composante Appui à la gestion communautaire du domaine protégé du Moyen Ouémé.

Cette sous-composante a permis de réaliser en décembre 2012 les études socio-économiques et

d’élaborer cinq plans d’aménagement sur 300.000 ha de massifs forestiers du domaine protégé de

la zone du Moyen-Ouémé, de lancer le processus de sélection de consultant devant former les

paysans aux techniques améliorées de carbonisation et de bûcheronnage. Cette formation a été

reprogrammée dans le projet DAEM.

Sous-composante Appui au développement des communautés rurales. Ici, trois points

essentiels sont à retenir : (i) les activités de promotion apicole et fruitière ont déjà permis de

promouvoir 120 apiculteurs, dans 12 villages, qui ont implanté 600 ruches et 240 ruchettes, et ont

planté 120 ha d’anacarde, (ii) la construction de douze mielleries dans les communes de Dassa,

Savè et Tchaourou dans le cadre de l’appui du projet aux communautés rurales présentes dans

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l’espace CoForMO, (iii) la construction par l’entreprise FORAG de 12 forages d'eau dans quatre

villages de chacune des communes de Dassa, Savè et Tchaourou. Deux forages se sont révélés

négatifs. Ces deux ouvrages négatifs seront repris dans le cadre des travaux de construction de

forages planifiés sur le projet DAEM.

Le fonds additionnel au crédit initial du PFSE, a permis d’obtenir les résultats suivants : (i) la

réalisation de l’étude d’analyse économique dans le cadre de la préparation de la centrale hydro-

électrique d’Adjarala, (ii) le recrutement du Panel d’experts sur l’énergie hydraulique dans le

cadre de la préparation de la centrale hydro-électrique d’Adjarala, (iii) la réhabilitation des

organes de coupures et de protection de la sous station de la centrale d'Akpakpa, (iv) la

construction d'un câble d’énergie dans la ville de Cotonou et d’un poste d’étoilement, (v)

renforcement des capacités du personnel de la SBEE.

Au regard de toutes ces activités développées, comment est organisée la coordination et la gestion

du projet.

Coordination et gestion du projet

Les responsabilités de la Coordination Générale du projet et des représentants sectoriels

concernés

L’Unité de Coordination du Projet (UCP) est chargée de l’exécution et du suivi des activités

quotidiennes du projet y compris la passation des marchés, les décaissements, la gestion

administrative, comptable et financière du projet. L’UCP comprend : un Coordonnateur Général

du Projet, un Directeur Administratif et Financier, un Spécialiste en Passation des Marchés, un

Responsable Suivi-Evaluation, un Responsable chargé des aspects environnementaux et sociaux,

un Coordonnateur de la composante Biomasse, un Responsable du volet Efficacité Energétique,

un Coordonnateur du volet mis en œuvre par la CEB et un Coordonnateur du volet mis en œuvre

par la SBEE.

Les agences d’exécution des différentes composantes du projet, sont représentées par la Direction

Générale de l'Energie qui s’occupe de la mise en œuvre de la composante Biomasse et du volet

Efficacité Energétique, la Communauté Electrique du Bénin et la Société Béninoise de l'Energie

Electrique. Les équipes de coordination des agences d’exécution (SBEE, CEB) sont composées

d’un coordonnateur, assisté d’un spécialiste en gestion financière, d’un spécialiste en passation

des marchés et d’un spécialiste aux aspects environnementaux et sociaux. Il y a également la

Direction Générale des Forêts et des Ressources Naturelles qui apporte son appui au projet dans

le cadre de la mise en œuvre des activités de la composante Biomasse-énergie et énergie de

substitution, le Centre National de Télédétection chargé d’animer le Système d’Information

Ecologique et Forestier et les Communes de Dassa-Zoumé, de Savè, de Ouèssè, de Glazoué et de

Tchaourou qui interviennent au niveau du projet dans la sous-composante appui à la gestion

communautaire du domaine protégé du Moyen Ouémé de la composante Biomasse-énergie et

énergies de substitution.

Relation entre le comité de suivi et les décideurs politiques

Les relations de l’Unité de Coordination du Projet avec le Ministère en charge du Développement

et le Ministère de l’Economie et des Finances à travers leurs structures techniques sont souvent

bonnes. Toutefois, la mise en œuvre du projet a souffert des retards dans le traitement des

dossiers soumis aux structures du Ministère de l’Economie et des Finances (DNCMP, DGB, CF).

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Relations entre le comité de suivi et les responsables sectoriels des composantes

Bien que l’exhaustivité de l’équipe de l’Unité de Coordination du Projet n’a été effective que

trois (3) ans après le démarrage du projet, elle est parvenue à fonctionner de manière satisfaisante

selon les acteurs avec les équipes de gestion au niveau des agences d’exécution des composantes.

Les relations entre les différentes composantes et l’unité de gestion du projet ont été des relations

fonctionnelles en ce sens que chaque structure technique du projet dispose de compétences

avérées pour la mise en œuvre des actions prévues dans un but commun à savoir les objectifs du

projet. Tandis que la partie administrative, financière et suivi-évaluation est gérée par l’unité de

gestion.

Principalesleçons à tirer

Nécessité d’accorder des facilités dans le processus de passation de marchés en vue d’accélérer

l’exécution des activités programmées dans le cadre des financements extérieurs de la Banque

Mondiale.

Eviter une contrepartie béninoise dans la définition des coûts des contrats de marchés signés avec

des prestataires car la définition d’une contrepartie béninoise à imputer au coût du marché

rallonge la durée du processus d’attribution du marché.

Analyse critique de l’action de la Banque mondiale, du Gouvernement et de l’assistance

technique

Appréciation de l’action de la Banque Mondiale au cours de l’exécution du projet

L’action de la Banque est appréciée à travers les principales décisions ayant contribué à

l’exécution du projet, celles ayant freiné son évolution et la stratégie de suivi mise en place pour

veiller au bon déroulement du projet.

Principales décisions ayant favorisé l’exécution du projet

Prorogation de la durée d’exécution du projet. Cette autorisation a permis au projet d’avoir un

meilleur niveau de décaissement avant sa clôture.

Principales décisions ayant freiné l’exécution du projet

Autorisation en mai 2010 du chargé du projet à la Banque relative à la reprise du processus de

constitution de la liste restreinte des consultants pour la réalisation de l’étude pour le

renforcement du réseau de distribution de la SBEE suite à la demande de la Direction Générale de

la société. Cette décision a retardé la réalisation de l’activité pour laquelle le processus de

sélection était déjà très avancé. Au total, la réalisation de cette étude dans le cadre du projet PFSE

a accusé plus de 15 mois de retard. La conséquence de cette situation dans le cadre du projet

DAEM est le grand retard accusé dans le démarrage du processus de passation de marché pour le

recrutement des entreprises qui auront à réaliser les travaux de renforcement des réseaux. Cette

situation est en partie à la base des difficultés de décaissements au niveau du volet A du projet

DAEM.

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La leçon à tirer de cette situation est que certaines interventions des Autorités

hiérarchiques, à divers niveaux, dans la gestion quotidienne des projets peuvent créer des

préjudices aux projets.

Suivi du projet par la Banque Mondiale :

o Organisation des missions de supervision du projet par l’équipe de la Banque

Mondiale deux fois par an;

o Organisation des vidéo/audio conférences entre l’UCP, les équipes de gestion des

composantes et l’équipe de supervision du projet au niveau de la Banque ;

o Echanges réguliers entre le Coordonnateur général du projet et le Chargé du projet

à la Banque.

Principalesleçons à tirer:

o En cours d’exécution d’un projet d’envergure nationale, les décisions positives ou

négatives doivent tenir compte des documents de base du projet et de l’avis d’un

certain nombre d’acteurs clés (Coordonnateurs des composantes, Responsables de

structures bénéficiaires, structure de financement);

o la mise en place d’un espace de concertation périodique de tous les acteurs du

projet pour d’éventuels réajustements techniques en vue d’une bonne exécution

des activités ;

o le plan de suivi et de celui de gestion des risques apparaissent comme des éléments

essentiels au démarrage d’un projet pour une gestion efficace et efficiente ;

Appréciation de l’action du Gouvernement au cours de l’exécution du projet

L’appréciation de l’action du gouvernement est évaluée à travers trois données : les principales

décisions ayant contribué à l’exécution du projet, celles ayant freiné sont évolution et la stratégie

de suivi mis en place pour veiller au bon déroulement du projet.

Principales décisions ayant favorisé l’exécution du projet :

o Désignation en 2012 des points focaux des structures du Ministère de l’Economie

et des Finances (DNCMP, DGB, SI, CF, DGTCP) pour le compte du

MERPMEDER pour un meilleur suivi des dossiers du ministère au niveau de ces

structures.

Principales décisions ayant freiné l’exécution du projet :

o L’ouverture et la fermeture intermittentes du Système Intégré de Gestion des

Finances Publiques (SIGFiP) surtout pour les ressources du Budget National ;

o Le chargement en 2009 à hauteur de 40% au plus des crédits de la contrepartie à

cause des difficultés de trésorerie qu’a connu le pays au cours de cette année ;

o L’abattement en 2010 des crédits de la contrepartie du projet à cause des

difficultés de trésorerie qu’a connu le pays au cours de cette année ;

o La mutation des cadres à la tête des structures impliquées perturbe la gestion. Le

fait que la coordination du volet exécuté par la SBEE n’a pas eu une coordination

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stable, a été une difficulté dans la gestion du projet et dans la passation des

marchés.

o La nomination en décembre 2006 du Coordonnateur du projet au Poste de

Conseiller Technique à l’Energie du Ministre en charge de l’Energie et la tentation

de le remplacer par le Directeur Général de l’Energie d’alors a constitué une

nouvelle contrainte dans la gestion du projet.

Suivi du projet au niveau des Ministère de l’Energie, des Recherches Pétrolières et

Minières, de l’Eau et du Développement des Energies Renouvelables et du Ministère du

Développement, de l’Analyse Economique et de la Prospective

D’une manière générale pour le suivi de la mise en œuvre des activités des projets, il y a :

o L’organisation au niveau du MERPMEDER des revues trimestrielles des PTA de

tous les projets du ministère ;

o L’organisation de la revue annuelle conjointe Gouvernement–Banque Mondiale du

portefeuille de la Banque ;

o L’organisation chaque deux mois et depuis le 12 décembre 2011 sous la

présidence du Ministre en charge du Développement et en présence du

Représentant Résident de la Banque Mondiale de la revue des projets financés par

la Banque Mondiale au Bénin.

o Principales leçons à tirer : deux principales leçons à tirer (i) l’implication effective et la

mobilisation générale de tous les acteurs du projet ont été déterminantes pour l’atteinte des

objectifs fixés, (ii) la présence régulière sur le terrain du bailleur de fonds permet de réaliser

un suivi régulier des activités et à identifier avec la coordination du projet, les responsables

des volets CEB et SBEE les problèmes qui se posent et les solutions pour les surmonter.

Evaluation de l’efficacité et de la qualité des relations entre la Banque mondiale et le

Gouvernement durant l’exécution du projet

Les relations entre la Banque mondiale et le Gouvernement durant la durée du projet sont

globalement bonnes. Les actions de la Banque mondiale au cours de l’exécution du projet

concernent : a) Le décaissement des ressources IDA, b) l’émission des avis de non objection, c) la

réalisation des missions de supervision et d’appui de la Banque Mondiale

La Banque a régulièrement effectué les décaissements de fonds selon les procédures et émis les

avis dans les délais relativement requis. Il faut souligner néanmoins que jusqu’en 2010 le projet a

souffert des retards significatifs dans l’émission des avis de non objection.

Sur le plan des missions de supervision, deux missions s’effectuaient par an et le suivi et la mise

en œuvre des recommandations qui en découlent ont été régulièrement assurés par la Banque

Mondiale et la partie béninoise.

Les performances du Gouvernement concernent essentiellement : a) la coordination du projet à

travers la mise en place et le fonctionnement de l’UCP, b) la mise en place des fonds de

contrepartie et c) les procédures de passation des marchés.

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Pour la coordination, l’UCP mise en place par le Gouvernement a su coordonner l’exécution du

projet, suivre les activités quotidiennes du projet y compris la passation des marchés, les

décaissements, la gestion comptable et financière du projet.

Toutefois, le bon fonctionnement est entaché par deux difficultés majeures : il y a d’une part la

mobilisation des fonds de contrepartie sur des projets de financement extérieur. Au démarrage du

projet, il y avait déjà une difficulté majeure concernant l’accord du crédit où il était prévu que le

Bénin mette en place une avance initiale de 150 000 000 qui devait servir de contrepartie pour le

financement du projet qui était la conditionnalité de mise en vigueur du projet n’était pas inscrit

au PIP. Les deux principaux bénéficiaires du projet (la SBEE et la CEB) ont été sollicités pour

mettre en place respectivement cinquante (50) millions et cent (100) millions chacun pour

satisfaire à la conditionnalité de mise en vigueur. D’autre part, il y a les problèmes d’ordre

systémiques de passation des marchés. Ces problèmes concernent les délais relativement longs

pour le traitement des dossiers par les structures du MEF plus particulièrement la DNCMP, le

délai relativement long pour l’approbation des contrats par le MEF et surtout les grèves des

agents du MEF pendant huit mois environs au cours de l’année 2010.

Evaluation des performances des différentes institutions, bureaux d’études et leurs effets

L’évaluation des performances des structures impliquées dans la mise en œuvre du projet

concernera essentiellement la DGE (à travers l’équipe Biomasse et l’équipe Efficacité

Energétique), la SBEE, la CEB, la DGFRN, le CENATEL, l’AFIC et certains bureaux d’études

ayant offert des prestations de service dans le cadre de ce projet.

Performance de l’équipe Biomasse-énergie et combustibles de substitution

Cette équipe est chargée de la mise en œuvre de la composante Biomasse. Malgré son caractère

complexe et le retard observé dans la mise en place de l’équipe (2008), le développement des

activités prévues dans cette composante a été relativement satisfaisant car trois des quatre

composantes prévues ont été entièrement mises en œuvre, la quatrième partiellement.

En termes d’effet, au niveau du CENATEL l’installation du SIEF, le Système d’Information

Ecologique et Forestier permet de mesurer la dynamique de la végétation notamment sur le

couvert végétal concerné par le projet. Il y a également la CoForMO, l’association des communes

du Moyen-Ouémé pour la gestion durable des ressources forestières qui est doté d’un organe

technique appelé AFIC, intervient de façon opérationnelle sur le terrain. Par ailleurs, des activités

génératrices de revenu sont introduites au niveau des communes bénéficiaires du projet à travers

la formation, l’encadrement des apiculteurs dans douze villages. Ces apiculteurs ont bénéficié

d’équipements appropriés pour la production et la commercialisation de miel. Un impact

économique est insufflé dans ces villages.

Il faut cependant faire observer qu’en raison de certaines contraintes, quelques activités n’ont pas

pu être achevées par l’équipe Biomasse-Energie dans le délai d’exécution du projet. Il

s’agitprincipalementde:

la prise de certains documents de base pour la CoForMO (Contrat Etat-CoForMO,

Convention de partenariat entre la DGFRN et la CoForMO) dont le processus n’a pas pu

être conduit à terme ;

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la promotion de 4000 équipements de cuisson à gaz et de 20 000 foyers améliorés dans les

communes de Cotonou, Porto-Novo, Abomey-Calavi et Parakou.

Performance de l’équipe Efficacité Energétique et effets induits

Bien que noyé dans les composantes, ingénierie et investissement et le retard dans la mise en

place de l’équipe de gestion, les objectifs qui étaient poursuivis par ce volet ont été largement

atteints à la fin du projet, même si cela a été possible après le prolongement du projet. Ainsi, les

résultats obtenus notamment la suppression des mauvais facteurs de puissance et les autres

mesures d’économie d’énergie au niveau des administrations ayant bénéficié des actions du

projet, permettent aujourd’hui d’envisager la nécessité de développer ces genres d’activités à

grande échelle sur l’ensemble des administrations publiques en République du Bénin. Les actions

de communication menées par l’équipe ont amené l’Etat (principal bénéficiaire de ce volet) à

prendre conscience de la nécessité de gérer efficacement l’énergie en officialisant les comités de

gestion de l’énergie mis en place dans tous les Ministères par le projet.

Performance de l’équipe de gestion du volet CEB et des effets induits

Cette équipe a géré les plus gros investissements du projet. Les principales activités ont été

réalisées avec succès, notamment l’interconnexion du Nord du Bénin au réseau Nord du Togo. Le

projet des dix communes à travers lequel beaucoup de localités ont été connectées grâce à cette

interconnexion Nord Togo- Nord Bénin, aussi, le nombre des abonnés au niveau de la SBEE, a

augmenté. Ces différentes connexions électriques (construction de réseaux interconnectés) ont

permis d’arrêter l’exploitation des Centrales du Nord. Jusqu’en 2012, la CEB a fourni à la SBEE

sur le Nord environ 230 mégawatts. L’interconnexion a également permis de gagner non

seulement une fiabilité du réseau et de son renforcement au nord, mais aussi le coût de production

d’électricité a été considérablement réduit. Il y a par ailleurs le renforcement des capacités au

niveau des ressources humaines de la CEB, grâce à un important appui financier du projet pour la

formation des agents.

Performance de l’équipe de gestion du volet SBEE et des effets induits

Le projet PFSE s’est aussi occupé dans le cadre de ses interventions du réseau de distribution

d’électricité. Ses actions ont permis d’abord de rendre relativement fiable le réseau et aussi la

qualité des services à la population.

En ce qui concerne les activités prévues au niveau des travaux sur le réseau de distribution de la

SBEE, elles ont été réalisées, à la satisfaction de la société. Une seule activité, celle relative à

l’audit des ressources humaines n’a pu être menée à bout, mais sera poursuivie dans le cadre du

projet DAEM.

En termes d’effet, le projet PFSE pour la SBEE a été d’un très grand apport car avant le projet

toutes les sous stations étaient sollicitées à leurs puissances maximales, les transformateurs

étaient surchargés, ce qui entraînait des cas fréquents de délestage, non pas parce que la SBEE

manquait de disponibilité d’énergie mais parce qu’il manquait des équipements appropriés pour

écouler l’énergie vers les populations. A la fin des travaux, le premier gros effet obtenu fut l’arrêt

de la location des groupes AGREKKO et MRI par la rupture du contrat qui liait la SBEE à ces

deux structures. Cela a permis d’annuler non seulement les frais de location, mais aussi les coûts

d’investissement pour l’approvisionnement en carburant pour les groupes. Cela a également

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permis d’amoindrir les cas de coupure et de supprimer la baisse de tension à Akpakpa vers les

abonnés.

Un autre effet positif c’est l’installation d’une sous-station (poste de transformation) dans la zone

franche industrielle car avant le projet ; il n’y avait pas d’électricité dans la zone franche

industrielle. Ce projet a permis une meilleure souplesse d’exploitation et une meilleure

évacuation de l’énergie.

A côté de ses bons résultats, l’exécution du projet au niveau de la SBEE a toutefois enregistré une

contre-performance majeure. Il s’agit de la non réalisation dans le délai programmé de l’étude

relative à la réhabilitation et au renforcement du réseau de distribution d’électricité ; une situation

découlant du grand retard connu au niveau du processus de sélection du consultant.

Performance du CENATEL et des effets induits

Le CENATEL n’a pas été une Agence d’exécution dans le projet, mais il est désigné comme la

structure qui devait suivre la conception et la mise en place du Système d’Information Ecologique

et Forestier (SIEF). Cet outil qui était l’élément de base qui conditionne la réalisation des

activités touchant à la gestion durable des ressources forestières par les communes membres de la

CoForMO a pu être mise en place en 2009 malgré les difficultés technique (conditions

climatiques pour la prise des photos aériennes) et administrative (procédures administratives).

Cela a permis de développer les autres activités prévues (élaboration des plans d’aménagement

pour la gestion communautaire des ressources forestières etc.).

Performance de la DGFRN et des effets induits

La DGFRN a accompagné au plan technique tout le processus de création de la CoForMO pour

ce qui concerne l’élaboration de l’ensemble des documents techniques devant favoriser son

installation et son bon fonctionnement. Par ailleurs, la DGFRN a apporté son appui technique à

l’AFIC notamment en ce qui concerne le suivi des études socio-économiques et l’élaboration des

Plans d’Aménagement Participatifs Forestiers.

Performance de l’AFIC

L’AFIC bien que installée seulement en 2011, a largement contribué à la mise en œuvre des

actions de terrain notamment : (i) l’appui au développement des activités génératrices de revenus

et (ii) le suivi et l’appropriation du processus d’élaboration des plans d’aménagement.

A ce jour, cinq (5) plans d’aménagement sur 300 000 ha ont été élaborés bien que tous les

accompagnements prévus ne soient pas réalisés. Par ailleurs, on peut noter l’appui du projet aux

communautés rurales pour le développement des activités de l’apiculture et de plantations

d’anacarde qui accompagnent l’apiculture.

Performance des prestataires du projet

Plusieurs prestataires ont été impliqués dans la mise en œuvre des activités du PFSE. Quelques-

uns parmi eux ont été rencontrés pour apprécier les actions menées dans le cadre de leur contrat.

Il ressort des échanges que les différents marchés gagnés ont été tous exécutés avec succès.

Cependant, il est apparu qu’entre la date de soumission et le démarrage des travaux sur le terrain

on observe des périodes mortes qui ont duré jusqu’à deux années dans certains cas. Cette

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situation n’est pas toujours de nature à garantir des résultats optimaux surtout qu’aucun avenant

n’est intervenu et le coût des équipements ne sont pas toujours stables.

Niveau d’implication et de satisfaction des bénéficiaires

Deux catégories de bénéficiaires sont identifiées dans le projet PFSE : il s’agit des bénéficiaires

acteurs (CEB, SBEE, DGE, DGRNP, CENATEL) et les bénéficiaires non acteurs. En ce qui

concerne la première catégorie d’acteurs rencontrés, ils étaient tous impliqués dans l’exécution du

projet et maîtrisent parfaitement leur domaine d’intervention. Au regard des actions menées et

des résultats obtenus, la plupart des acteurs ont exprimé leur satisfaction tout en espérant une

amélioration de certaines actions avec la réalisation du DAEM. La deuxième catégorie des

bénéficiaires n’est pas directement impliquée dans la mise en œuvre, mais ont apprécié

favorablement les actions prévues et menées à leur profit. Compte tenu des acquis du projet, ils

apprécient unanimement l’initiative du Gouvernement à travers le PFSE et ont exprimé leur

sentiment de satisfaction.

Perspectives futures pour la pérennisation des acquis

Elles se présentent comme suit :

Sous-composante Développement des capacités institutionnelles du sous-secteur de la

biomasse. Il s’agit ici de Poursuite des actions de renforcement de capacités

institutionnelles du sous-secteur de la biomasse qui passe par :

o Le fonctionnement de l’Agence Forestière Intercommunale (AFIC) ;

o Le fonctionnement de la CNCD ;

o L’actualisation des données et le suivi du Système d’Information et d’Evaluation

Permanente des combustibles domestiques (SIEP) ;

o La poursuite du processus de mutation de la CoForMO en un Etablissement Public

de Coopération Intercommunale (EPCI).

Sous-Composante Appui à la gestion communautaire du domaine protégé du Moyen

Ouémé

o Existence et l’exploitation judicieuse des résultats de l’étude d’impact

environnemental et social ;

o Existence de tous les organes prévus dans la gestion des domaines protégés par la

communauté ;

o Mettre en place un système qui favorise le fonctionnement de ces organes et de

leur pérennisation ;

o Définir le mécanisme par lequel le fonctionnement et l’investissement de ces

organes seront une réalité ;

o Mettre en œuvre le mécanisme qui permet la recherche et la mobilisation des

ressources financières humaines et matérielles pour la capitalisation des acquis du

projet et la pérennisation des organes de gestion et d’exécution ;

Sous-Composante Efficacité de la biomasse et substitution énergétique

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o Régularisation du secteur par une loi sur la base des résultats de l’étude de

faisabilité sur la production, la commercialisation et l’utilisation des biocarburants,

ainsi que l’élaboration du plan de développement des filières de biocarburants ;

o Structuration des circuits de production, de commercialisation de foyers améliorés

et la labellisation/normalisation des foyers améliorés commercialisés au Bénin.

Sous-composante Appui au développement des communautés rurales

o Poursuite et extension des actions de promotion des activités génératrices de

revenus alternatives à l’exploitation des ressources forestières ;

o Renforcement des capacités des acteurs mobilisés pour la protection des

ressources forestières ;

Actions de pérennisation des acquis SBEE. Elle devra :

o investir dans la reconfiguration de son réseau moyenne tension pour respecter les

zones d’influence des postes ainsi renforcés ;

o instaurer au niveau de chaque poste un manuel de suivi des interventions ;

o investir dans la réhabilitation de son réseau de distribution assez vieillissant pour

évacuer l’énergie vers le consommateur final ;

o mettre un accent sur la maintenance et la formation des agents à l’exploitation des

postes.

Actions de pérennisation des acquis CEB. Elle devra :

o poursuivre le développement du réseau de transport d’énergie électrique pour la

construction des lignes : (i) d’Onigbolo-Parakou en 161 kV, (ii) de Sakété-Porto-Novo en

161 kV, (iii) de Natitingou-Tanguiéta-Porga en 161 kV, (iv) de Kandi-Benbèrèkè-

Malanville en 161 kV et de (v) Natitingou-Péhunco-Kérou-Banikoara-Kandi en 161 kV.

o mettre en place des équipements de protection et de mesure dans les sous stations pour

permettre le fonctionnement en bouclage du réseau sud de la CEB.

o Actions de pérennisation des acquis de la Cellule d’efficacité énergétique. La Cellule

d’efficacité énergétique devra : promouvoir l’efficacité énergétique dans les autres

secteurs d’activité (ménages et industries) ;

o promouvoir l’audit énergétique obligatoire dans les édifices gros consommateurs

d’énergie électrique ;

o poursuivre l’assainissement du parc de compteurs d’électricité de l’administration

publique et le redressement de la facturation par la pose des bactéries de condensateurs au

niveau des abonnés ayant un mauvais facteur de puissance ;

o adopter et vulgariser des normes relatives au code d’efficacité énergétique dans les

bâtiments.

Conclusion

L’évaluation du PFSE a permis d’aborder et d’examiner un certain nombre d’axes importants

entre autres : la durée réelle du projet par rapport à la durée prévue ; l’implication de beaucoup

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d’acteurs dans la gestion du projet ; l’atteinte des objectifs fixés ; le ratio résultats obtenus et

activités prévues ; la satisfaction des bénéficiaires et la capitalisation des acquis du projet compte

tenu des dispositifs mis en place ou en cours.

L’essentiel de ce qu’il faut retenir après la visite des chantiers et les échanges avec les acteurs

clés (gestionnaires et bénéficiaires) du projet, se résume comme suit : (i) le Projet de Fourniture

de Services d’Energie (PFSE) prévu pour durer cinq ans a connu une prorogation de ses activités

pour trois années supplémentaires. Il s’agit d’une prorogation du délai d’exécution avec ajout de

nouvelles activités et un fonds additionnel. Finalement cette prorogation n’a pas n’a pas permis

d’aller jusqu’au bout du planning des activités. Les activités qui n’ont pas pu être réalisées ont été

reporté sur le projet DAEM ; (ii) le niveau d’implication de la plupart des acteurs a permis une

gestion appréciable du projet avec des produits ayant induit des effets positifs auprès des

bénéficiaires ; (iii) au terme de l’exécution du projet l’objectif principal qui est l’accès à l’énergie

à moindre coût et de qualité n’est pas perceptible par les bénéficiaires non acteurs alors qu’il

parait être atteint par les acteurs bénéficiaires compte tenu des effets induits dans les réseaux de

transport et de distribution ; (iv) il ressort de la revue documentaire que le projet a atteint un

niveau d’exécution physique satisfaisant (90%) ; (v) dans l’ensemble, les bénéficiaires ont noté

une amélioration appréciable comparativement à leur situation antérieure tout en notant que la

satisfaction ne pourra être total qu’avec l’avènement d’une solution liée à la maîtrise et à la

disponibilité de la ressource énergétique ; (vi) au regard de la motivation des acteurs et des

intérêts suscités par les produits obtenus au cours de l’exécution de ce projet, tous les acteurs ont

exprimé l’engagement non seulement de mettre en place des mécanismes et systèmes permettant

de sécuriser les acquis, mais aussi de veiller à la réalisation de nouvelles activités afin de

renforcer celles déjà réalisées.

57

Annexes

Tableau des Indicateurs de performance des résultats du projet

Le point de ces indicateurs se présente comme suit :

Indicateurs Objectifs et valeurs Libellé des indicateurs

Indicateur 1

Objectif de

Développement du

Projet

Accélérer de manière commercialement

soutenable, l'utilisation de l'électricité pour la

croissance économique et les services

sociaux afin d'améliorer la qualité de vie

dans les zones non desservies ou mal

desservies (périurbaines et rurales)

Valeur de référence

Disponibilité limitée de l'énergie dans le

Nord-Bénin à cause de la production de

l'électricité à partir des générateurs (groupes

thermiques) fonctionnant au diesel et qui

subissent souvent des pannes fréquentes. La

fiabilité du service est faible à cause de l'état

des générateurs.

Valeur réalisée

Les travaux d'interconnexion Nord-Togo

Nord-Bénin sont achevés et les ouvrages sont

mis en service.

Valeur cible

Fourniture d'énergie électrique fiable pour le

Nord-Bénin provenant du réseau

interconnecté passant par le Nord du Togo.

Indicateur 2

Objectif de

Développement du

Projet

Renforcer la capacité du Bénin à étendre ses

services énergétiques


La SBEE, une société entièrement publique

avec une faible performance technique et

financière. Pas d'études pour l'extension du

réseau de distribution de l'électricité. Et

l’absence de politique ou de stratégie pour

l'extension des zones de desserte.

Valeur réalisée

Un plan de redressement technique financier

commercial et organisationnel de la SBEE

est mis en œuvre depuis quelques temps sur

décision du Gouvernement.

Dans le domaine de l'électrification rurale,

les modalités d’octroi de concessions pour

l’électrification rurale au Bénin sont définies,

et l'ABERME a bénéficié de l'assistance d'un

consultant pour l'élaboration du manuel du

Fonds d'Electrification Rurale (FER).

Valeur cible Un partenaire privé pour la distribution de

l'électricité est choisi dans le cadre de la mise

58

Indicateurs Objectifs et valeurs Libellé des indicateurs

en concession de la SBEE. La stratégie pour

l'électrification décentraliséeest développée

et soutenue.

Indicateur 3

Objectif de

Développement du

Projet

Promou voir la cooperation régionale


Pas d'énergie fournie au Nord-Bénin à partir

du réseau interconnecté de la CEB passant

par le Nord du Togo

Valeur réalisée

Les travaux d'interconnexion Nord-Togo

Nord-Bénin sont achevés et les ouvrages sont

mis en service.

Valeur cible

L'énergie électrique importée est fournie au

Nord-Bénin à travers le réseau électrique

togolais

Indicateur 4

Objectif de

Développement du

Projet

Améliorer la gouvernance du sous-secteur de

la biomasse-énergie et renforcer les capacités

des institutions intervenant dans la gestion du

sous-secteur


Inexistence de cadre institutionnel adéquat à

la bonne gestion du sous-secteur de la

biomasse-énergie

Valeur réalisée

La CNCD est créée et a démarré ses

activités. La Communauté Forestière du

Moyen-Ouémé (CoForMO) est créée. Son

organe technique l'AFIC est mis en place le

27 janvier 2011 (mise en place du personnel).

Des infrastructures de surveillance et de

gestion des ressources forestières sont mises

en place (postes de contrôle forestier). Le

Contrat Plan Etat-CoForMO est adopté par le

Conseil National de l’Aménagement du

Territoire (CNAT). Les dispositions finales

sont en cours pour la transformation de la

CoForMO en Etablissement Public de

Coopération Intercommunale (EPCI).

Valeur cible

Création et fonctionnement effectif de la

CNCD ; Création et fonctionnement effectif

de l'AFIC et Transfert de compétences aux

communes de la CoForMO pour la gestion

communautaire des ressources forestières de

leur espace.

59

Sigles et abréviations

ABERME : Agence Béninoise d’Electrification Rurale et de Maîtrise d’Energie

AFIC : Agence Forestière Intercommunale

BN : Budget National

CEB : Communauté Electrique du Bénin

CENATEL : Centre National de Télédétection et de surveillance du couvert végétal

CF : Contrôle Financier

CNAT : Conseil National de l’Aménagement du Territoire

CNCD : Commission Nationale des Combustibles Domestiques

CoForMO : Communauté Forestière du Moyen-Ouémé

DAEM : Développement de l’Accès à l’Energie Moderne

DAT : Délégation à l’Aménagement du Territoire

DGB : Direction Générale du Budget

DGE : Direction Générale de l’Energie

DGFRN : Direction Générale des Forêts et des Ressources Naturelles

DGTCP : Direction Générale du Trésor et de la Comptabilité Publique

DNCMP : Direction Nationale du Contrôle des Marchés Publics

EPCI : Etablissement Public de Coopération Inter-commune

FER : Fonds d'Electrification Rurale

IGM : Inspection Générale du Ministère

MERPMEDER : Ministère de l’Energie, des Recherches Pétrolières et Minières, de l’Eau et du

Développement des Energies Renouvelables

OMD : Objectifs du Millénaire pour le Développement

PAPF : Plans d’Aménagements Participatifs Forestiers

PFSE : Projet de Fourniture de Services d’Energie

PIP : Programme d’Investissement Public

PME : Petites et Moyennes Entreprises

PTA : Plan de Travail Annuel

SBEE : Société Béninoise d’Energie Electrique

SIEF : Système d’Information Ecologique et Forestier

SIEP : Système d’Information pour l’Evaluation Permanente des combustibles domestiques

SIG : Système d’Information Géographique

SIGFiP : Système Intégré de Gestion des Finances Publiques

UCP : Unité de Coordination du Projet

60

Annex 6. List of Supporting Documents

Project Appraisal Document of the original project

Project Paper of the Additional Financing

Mid-term Review

Project Legal Agreements

WB Implementation Status Reports

Aide Memoires

WB Memos

Progress Reports submitted by Borrower

Annual reports of SBEE submitted by Borrower

Annual reports of CEB submitted by Borrower

Final Completion Report submitted by the Borrower

This map was produced by theMap Design Unit of The World Bank.The boundaries, colors, denominationsand any other information shown onthis map do not imply, on the part ofThe World Bank Group, any judgmenton the legal status of any territory, orany endorsement or acceptance ofsuch boundaries.

TRANSMISSION LINES:

161 kV (PLANNED)

161 kV (PROJECTED)

63 & 66 kV

33 kV

20 kV

HYDRO POWER PLANTS

THERMAL POWER PLANTS

NATIONAL CAPITALS

INTERNATIONAL BOUNDARIES

Niger

Niger

Mék

rou

Pendjari

Ouém

é

Okp

ara

Zou Oué

mé

Kouffo

B i g h t o f B e n i n

Oti

Koumongou

Kara

Ogo

u

Mon

o

Mo

Anié

Mono

Volta

Lak

e

Vo

l ta

G u l f o f G u i n e a

4°3°2°

4°3°2°1°

11°

10°

7°

12°

11°

10°

9°

8°

7°

PORTO NOVO

N I G E R I A

B U R K I N A

F A S O

N I G E R

GHANA

1°LOMÉ

CÔ

TED

'IV

OIR

E

G H A N A

TOG

O

BURKINA FASO

BENIN

Porto Novo

M A L I

N I G E R I A

N I G E R

LoméAccra

Ouagadougou

Abuja

Niamey

9°

8°

Avakpa

CotonouMomehagou

TabligboLokossa

AdjaralaNotseKpalimé

Atakpamé

Nangbeto

Elavagnon

Blitta

Sotouboua

TchambaSokodé

Bassar

Kabou

Bafilo

Kara

Pya

PagoudaNiamtougou

Kandé

Natitingou

Djougou

Parakou

Savé

Savalou

Dassazouné

BohiconAbomayOnigbolo

Pobé

Sakété

Kétou

Bembéréké

0 20 40 60 80 100

KILOMETERS

BENINELECTRIC POWER SYSTEMS

EXISTING FUTURE

Akosombo

Avetonou

Kévé Tsévié

AnéhoAnfoin

Amlamé

Cinkassé

Bawku

Dapaong

Mango

IBRD 29502

MAY 1998