POWER INDABA CONFERENCE

Transcription

1 POWER INDABA CONFERENCE FEBRUARY 2010, DURBAN, SOUTH AFRICA Case Study: Ghana Energy Development and Access Project- Rehabilitation of Networks and World Bank Funding Presented by Ing. A.T. Barfour, FGhIE Project Coordinator, GEDAP Ministry of Energy, Ghana February, 2010

2 Overview of Ghana - Land Area: km2 - Population: 18,845,265 (2000 Census) -Electricity Access: 67.5% -Consumption/Capita: 386kwh - Av. GDP Growth Rate: 6.0% Major Export: Cocoa, Gold, Timber, Bauxite, Oil & Gas?

3 GHANA ENERGY DEVELOPMENT AND ACCESS PROJECT (GEDAP) Overall Project Goal: Improve the operational efficiency of the power distribution system and increase the population s access to electricity. Main Component Objectives A. Sector & Institutional Development - (US$15.80 million) B. Distribution System Improvement - (US$76.20 million) C. Electricity Access Expansion and Renewable Energy Development - (US$99.50million) D. Power System Reinforcement - (US$ million) Implementation Phase: 5 Years (Nov 2007-Nov 2012) Total Project Cost US$ million 3

4 Key Sector Issues and Strategies Lack of an adequate, reliable power supply necessary for accelerated economic growth inadequate performance incentives weaknesses in financial operations deficiencies in electricity supply Large disparities in electricity service provision between urban and rural areas constraining opportunities to reduce income disparities Overall electrification rate is 54% (2005) Rural electrification Access 15% (2005) Urban Access 77% (2005)

5 Source of Funding Financing Plan-GEDAP (US$million) Local US$ m Foreign US$ m Total US$ million IDA GEF ACGF AfDB GPOBA SECO Private Sector/Consumers ECG GOG TOTAL

6 Sources of Funding for GEDAP (Percentage of Total) Private Sector/Consumers, 3.3% SECO, 5.1% ECG, 8.8% GOG, 0.5% GPOBA, 1.8% IDA, 38.3% AfDB, 18.6% ACGF, 21.3% GEF, 2.3% IDA GEF ACGF AfDB GPOBA SECO Private Sector/Consumers ECG GOG

7 Institutional & Implementation Arrangements TECHNICAL COMMITTEE STEERING COMMITTEE MoE PROJECT COORDINATION TEAM (PCT) PPMED (M & E) INTERIM ACCESS SECRETARIAT / REA VRA/NED ECG APEX BANK Grid Extensions Access through Intensification Corporate Strengthening Program Solar-PV Access Financing Renewables & Mini Grids Distribution System Upgrade Capacity Building Commercial & Tech Capacity Upgrade Access through Intensification

8 Component A - Sector & Institutional Development (US$15.80m). Sub-Components A1- Regulatory Capacity Strengthening for PURC Technical and operational reviews of VRA and ECG Electricity cost of service and tariff study Public education, communication campaigns, Training and workshops Develop renewable energy tariff methodology and scheme, and standardize Power Purchase Agreement A2 - Corporate Strengthening Program for ECG Institutional Development and Capacity Building, Management Support Service Agreement (MSSA) for ECG A3 - Sector Policy and Strategy Development Overall power sector development; Renewable energy development; and Project management and related studies A4 - Environmental, Social and Project Management Project coordination; environmental monitoring; monitoring and evaluation of project outcomes; operation of the interim Access Secretariat; and project studies.

9 Component B - Distribution System Improvement (US$76.2 m; IDA, 40.5 m; ACGF, US$15m; ECG, US$20.7m). Sub-Component B1 - Electricity Distribution System Improvement (US$68.9 million) Upgrading and construction of 33/11 kv substations, overhead lines and switchgear in selected areas improving the technical aspects of the sub-transmission and distribution system; Rehabilitation of Low-Voltage lines in selected areas B2 - Commercial and Technical Capacity Upgrade (US$25.5 million) Establishment of new ECG customer service centers and district offices. Replacement of faulty meters in the entire coverage area of ECG Secondary substation metering and provision of summation current transformers. Development of secondary automation and supervisory control and data acquisition (SCADA) systems for rural networks Training and capacity building for ECG operational personnel.

10 Component C - Electricity Access and Renewable Energy Development - US$99.5m IDA, US$42.5m; ACGF, US$35m; SECO, US$5m; GPOBA, US$4.35m; GEF, US$4.75m; and private equity/loans (consumers, rural banks), US$7.75m). C1 - Intensified use of existing distribution systems (US$24.6m) Support distribution network improvement in existing grid connected rural communities within ECG and VRA/NED operational areas C2 Rural Electrification through Grid Extensions (US$50.4 m) Extension of electricity power line to 530 communities in 26 Districts in ECG and VRA/NED operational areas C3 Mini-Grids and Grid-Connected Renewable Energy (US$9.1m). Provide grants and capital subsidies for development of 7-10 mini-grids and 2-3 grid connected renewable energy systems. Support solar PV systems for public institutions such as school, health facilities and security outposts.

11 C4 Off-Grid Electrification with Solar-PV systems (US$10.9 m) Provide solar PV systems ( Wp) for lightning in 15,000 homes away from power lines. Line of credit facility to provide long term liquidity for financing consumer loans. The IDA line of credit will provide 80% through ARB Apex Bank for consumer loans and the rural banks will contribute 20% of the loans. Solar PV grant to provide partial subsidies of up to 50% to consumers to make solar home systems (SHS) affordable and ensure adequate demand. C5 -- Capacity Building (US$6.2m) Technical assistance to Access Secretariat Support to MOE to carry out renewable energy feasibility studies Support to private sector for the development of Renewable Energy projects. Support to ARB Apex Bank and participating Rural Banks Monitoring and Verification services for Inspection Agents to check solar equipment installed.

12 Component D - Transmission and Distribution System Reinforcement-(US$43.78m) D1 - Support investments in transmission system infrastructure and upgrades-($25.58m). Establish new 161/33kV substation in Kumasi Rehabilitate existing 161/33kV primary substation Transmission and Generation Master Plan upgrade Load management studies D2 - Distribution System Reinforcement-($18.2m) Establish two new 33/11kV primary substations Construct 33 and 11kV networks

13 Project Outcomes Project Outcome Indicators Baseline YR5 Responsibility ECG Performance Verification 68.9% 75% ECG Project Manager Index (PVI) Household electrification rate 54% 75% ECG Project Manager Tons of CO 2 emissions avoided under the project ECG annual accounts receivables ECG annual bill collection efficiency Annual ratio of ECG revenues over its cost Distribution losses in ECG system (% of energy sent out) Average annual hours of unplanned power line outage per consumer in ECG system Number of new consumers connected to grid electricity 0 240,000 MoE Project Coordinator 150 days 90 days ECG Finance Manager 85% 90% ECG Finance Manager Below 1 > 1 ECG Finance Manager 26% 21% ECG Project Manager >200 hours <100 hours ECG Project Manager 0 134,300 -ECG Rural Electrification Project Manager Number of new consumers connected to renewable energy off-grid electricity and -NED Project Manager 0 30,000 The ARB Apex bank MoE Project Coordinator

14 KEY ACHIEVEMENTS (as at December 2009) In general Procurement processes almost completed Most project studies finished Capacity building ongoing Components A A1- Regulatory Capacity Strengthening for PURC RFP for Cost of Service and Tariff Study submitted to WB TORs for Technical Audit of the Electric Utilities, Development of Regulatory Accounting Framework for the Utilities Survey on Compound Houses Electrical Consumption Pattern A2 - Corporate Strengthening Program for ECG Draft TOR for regional and commercial loss study for ECG & VRA-NED being finalised after review by SECO ECG & SECO have reviewed and revised the TOR for the MSSA. A3 - Sector Policy and Strategy Development Final Report of the Power Sector Financial Restructuring and Recovery Programme submitted to the Ministry Renewable Energy Law submitted to the Ministry of Energy TOR for Wind Assessment completed. GEDAP/GSB signed contract on development of standards for solar lanterns and balance of system components 14

15 KEY ACHIEVEMENTS Continue A4 - Environmental, Social and Project Management Preliminary survey of beneficiary health institutions for the Solar Project undertaken. Project affected persons under ECG Component identified and proposal for compensation is 90 % completed Training for personnel of the P.P.M.E Unit and the GEDAP secretariat is on-going.

16 KEY ACHIEVEMENTS Continue Component B B1 - Electricity Distribution System Improvement (US$68.9 million) 100% of goods procured have been delivered Load profile and harmonic content studies for all sites completed. Contracts for the supply and Installation of HVDS in Accra and Supply and Installation of 33kV & 11kV Transformers Upgrade awarded Contracts for Substation and Network Upgrade Projects signed.

17 KEY ACHIEVEMENTS Continue Component B B2 - Commercial and Technical Capacity Upgrade (US$25.5 million) Contracts for the award of SCADA systems in Takoradi and Kumasi signed. All Eleven (11) lots of civil works contracts for construction of modern district offices and customer service centres signed and work progressing as scheduled. Evaluation of shortlisted Consultants for Network construction supervision works underway

18 Component C KEY ACHIEVEMENTS Continue C1 Intensification of existing distribution systems Contract for supply & installation Upgrade of HV & LV Distribution network for 129 communities (Central & Western) signed. Contract for the supply & installation Upgrade of HV & LV Distribution network for 159 communities (Greater Accra, Volta and Eastern) signed. Contract for the supply & installation Upgrade of HV & LV Distribution network for 132 communities (Ashanti) signed. 18

19 Component C KEY ACHIEVEMENTS Continue C2 Rural Electrification through Grid Extensions (US$50.4 m) Distribution network designs for 441 communities and 4 bidding documents completed by GECE Contract for the supply & installation Upgrade of HV & LV Distribution network for 81 towns(central Region) and 139 towns (Western) signed Bids for the supply & installation Upgrade of HV & LV Distribution network for 104 towns(ashanti Region) - Evaluation of Bids completed, awaiting ECG s Boards approval Supply & installation Upgrade of HV & LV Distribution network for 125 towns(greater Accra, Volta and Eastern) Contract signed 19

20 KEY ACHIEVEMENTS Continue C3 Mini-Grids and Grid- Connected Renewable Energy (US$9.1m). The Operational Manual for managing the matching grants for Business Development Services (BDS) to the private sector discussed and finalised with the BDS Manager and World Bank Installation works for the supply and installation of solar PV systems in 75 remote rural health facilities contract has been completed.

21 KEY ACHIEVEMENTS Continue C4 Off-Grid Electrification with Solar-PV systems (US$10.9 m) Market survey undertaken and eligible off-grid communities selected from 8 districts for pilot phase. Project Manager engaged at ARB Apex Bank to manage project implementation. Installation and maintenance manual prepared, C5 -- Capacity Building (US$6.2m) Capacity building for rural bank staff and solar companies undertaken Beneficiary districts have been sensitized (i.e. Builsa, Sisala East & West, West Mamprusi,West & Central Gonja, Krachi East & West) Solar PV inspection agents hired and trained. 451 Solar Lanterns & SHS installed in pilot phase

22 KEY ACHIEVEMENTS Continue Component D - Transmission System Reinforcement Three packages for procurement of transmission system improvement materials for GRIDCO have been contracted Three packages (contracts) for procurement of materials for ECG sub-transmission systems have been contracted. No disbursements has been made to date. ECG is to pay compensation to Project Affected Persons (PAPs) as a condition for disbursement but this has delayed.

23 ALLOCATION OF FUNDS TO BENEFICIARY AGENCIES US$ million ECG VRA /NED ACCESS ARB APEX PURC GRIDCo TOTAL IDA GEF ACGF AfDB GPOBA SECO Private Sect /Consumers ECG GOG Total

24 ALLOCATION OF FUNDS TO BENEFICIARY AGENCIES (US$m) PURC, 2.55, 1% ARB APEX, 9.85, 4% GRIDCo, 25.58, 11% ECG GRIDCo PURC ARB APEX ACCESS VRA /NED ACCESS, 60.34, 26% ECG, , 54% VRA /NED ACCESS ARB APEX PURC GRIDCo ECG - VRA /NED, 10.00, 4%

25 Summary of Disbursements vrs Funds Allocation Implementing Agency Funds Funds Percentage Allocated Disbursed Disbursed ($ 000) ($ 000) (%) Access (PCT) 60, , P.U.R.C 2, ARB Apex Bank 9, VRA/NED 10, ECG 126, , GRIDCo 25,

26 Summary of Disbursements vrs Funds Allocation 160, , , , , , , , , Funds Disbursed ($ 000) Funds Allocated ($ 000) 40, , , , Access (PCT) P.U.R.C ARB Apex Bank , , , VRA/NED ECG GRIDCo

27 Challenges: Some of the Donors opted out of the joint supervision. The institutional demands and processes from AfDB SECO s conditionality Difficulty in securing No-Objection from the World Bank The bureaucracy of some of the beneficiary agencies Most of the dated covenants could not be met 27

28 Conclusion Almost all procurement processes completed Physical implementation to be accelerated New realistic dated covenant set after Mid Term Review Overall the project is proceeding well

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