IMPLEMENTATION PROGRESS AND RESULTS

REPORT (IPR)

A. Report summary and proposed actions

Report Data

Project name: URBAN DISTRIBUTION REHABILITATION & TRANSMISSION EXPANSION PROJECT

Project code: P-LS-FA0-003
Country Lesotho
Sector: Electricity
Environmental categorization 2-Category 2
Mission: DESK SUPERVISION 0004
Report type: Date of report: 11.12.2024
From: 02.12.2024 To: 06.12.2024
Task Manager: Division Manager :
Prepared by Alternate Task Manager :
Seaga Abram MOLEPO KANONDA Farai Epiphanius ( PESD5 )

Project Data

PROJECT FINANCING in ( UAC )

Financing source/instrument Foreign currency Local currency Total
A.D.F. Project 7,780,000.00 742,116.00 8,522,116.00
BENEFICIARY Project 2,910,455.00 1,101,053.00 4,011,508.00
TOTAL 10,690,455.00 1,843,169.00 12,533,624.00
PROCESSING MILESTONES (bank approved financing only)
Date Date Date of entry into Date effective for first Disbursement
Loan Number
approved signed force disbursement deadline
2100150036558 14.12.2016 17.02.2017 26.05.2017 18.07.2017 31.12.2025
LOAN AMOUNT (in UAC)
Loan Number Net loan Approved (UAC) Signed (UAC) Cancelled (UAC) Net Loan (UAC)
2100150036558 7,780,000.00 7,780,000.00 7,780,000.00 0.00 7,780,000.00
TOTAL 7,780,000.00 7,780,000.00 0.00 7,780,000.00
DISBURSMENT STATUS at supervision date (in UAC)
Disbursed to Disbursed to date % Disbursed to Undisbursed to date (in % Undisbursed to
Loan Number
date (UAC) date UAC) date
2100150036558 5,070,608.69 5,070,608.69 65.17% 2,709,391.31 34.83%
TOTAL 5,070,608.69 65.17% 2,709,391.31 34.83%
Executing and Implementation agencies
Borrower GOVERNMENT OF LESOTHO MINISTRY OF FINANCE
Guarantor GOVERNMENT OF LESOTHO MINISTRY OF FINANCE
Executing Agency MINISTRY OF FINANCE

Performance status

Progress towards development objective

Performance rating Summary of key findings
Rating on Current Previous Development objectives have been achieved. None of the outcomes are
Development impacted by the
Objective (DO) highly highly delayed upgrade of Khukhune substation. The tender for Khukhune
satisfactory satisfactory substation upgrade was
 relaunched in June 2023 and the bid submission date was extended to 19
October 2023.
The tender is currently in evaluation and contract award expected in Q1
2025 after approval
of the Additional Financing operation for financing the funding shortfall
for Khukhune
substation upgrade.
Implementation progress
Performance rating Summary of key findings
Current Previous Project implementation is on track for completion by revised project
closing date of December 2025. The only component still in procurement
Rating on is the Upgrade of Khukhune substation. The Khukhune substation
Implementation upgrade contract is yet to be awarded and the bid evaluation report has
Progress (IP) satisfactory satisfactory been submitted to the Bank for review and clearance. The clearance will
be made subject to approval of the request from the Government for
additional financing. The Board date for considering the proposal is
scheduled for September 2024.
Overall project performance classification
Performance rating Summary of key findings
Current Previous Overall project performance is satisfactory. All committed contracts have
Overall Project fully disbursed, with a disbursement rate of 65% out of a commitment
Performance (PP, Non Potentialy Non Potentialy rate of 69%. The only outstanding outputs are those associated with
PPP or NPPP) Problematic Problematic Khukhune substation upgrade. The Government has subm itted a request
Project Project for additional financing. The proposal is scheduled for Board presentation
in Q1 2025.

Issues, risks and actions for management consideration

Issues affecting project implementation

Key issues Corrective actions Responsible Deadline Status

Shortfall of financing to fund Khukhune

Government and LEC
substation upgrade, which resulted when LEC
to confirm availability Government
and the Government recommended a change of 31.03.2022/N/A Completed
of funds to finance and LEC
technology discussed and agreed between
the shortfall.
LEC/Government and the Bank in May/June
2019.

Shortfall of financing to fund Khukhune

Government to
substation upgrade, which resulted when LEC 30.04.2024/Request
submit a request to Government
and the Government recommended a change of submittied to Bank in Completed
the Bank for and LEC
technology discussed and agreed between Feb 2024
Additional Financing.
LEC/Government and the Bank in May/June
2019.
Government to
indicate readiness to
Not yet
Negotiations for the Additional Financing negotiate the Government 31.01.2025/N/A
Implemented
operation Additional Financing
loan.
Main risks and mitigation
Risks Mitigation measures applied or proposed Responsible Deadline
Disbursement closing date
LEC and the Government should submit to the Bank
a request to extend the Project Closing date to
The Project Closing date of 31 December 2025 will Government 31.03.2025
align with the closing date of the Additional
have to be extended to align with the
Financing.
implementation period of the Additional
Financing.
B. Results reporting and assessment

Progress towards development objective (project purpose)

State the project development objective (usually the project purpose as set out in the Results-based Logframe) and assess
progress
Improve reliability and availability of electrical supply to existing customers.

Outcome reporting

Outcome indicators (as per Baseline Most recent Progress toward

End target Assesment
RLF) value value endtarget (%)
Increased availability and reliability of electricity supply
Achieved/Likely to be achieved
Distribution network
90.000 95.000 95.000 100.00%
availability (per)
The scope of work is complete and
the target achieved.
Achieved/Likely to be achieved
Level of technical losses at
9.800 7.500 8.000 127.78%
switching stations (per)
The scope of work is complete and
the target achieved.
Improved efficiency of the electricity system
Achieved/Likely to be achieved
Available energy for
0.000 34,416.000 11,697.000 294.23%
consumption (mwh)
The scope of work is complete and
the target achieved.
Outcome rating
Performance
Summary of key findings
rating
Current Previous Development objectives have been achieved. None of the outcomes are impacted
by the
delayed upgrade of Khukhune substation. The tender for Khukhune substation
upgrade was
Rating on project
outcomes relaunched in June 2023 and the bid submission date was extended to 19 October
2023.
4 4 The tender is currently in evaluation and contract award expected in Q1 2025
after approval
of the Additional Financing operation for financing the funding shortfall for
Khukhune
substation upgrade.

Output reporting

Progress Progress
Most
Annual End towards towards end
Output indicators recent Assessment
target target annual of project
value
target (%) target (%)
Switching stations rehabilitated
On track
Number of
switching gears 13.000 13.00 13.000 100.00% 100.00%
(num)
completed.
Distribution line rehabilitated.
 On track

Original scope of work completed. The

kms of 33kV line
136.000 188.00 188.000 72.34% 72.34% refurbishment work on Mazenod-Thaba Tseka
(km)
33kV line reduced from 149km to 97km. The
balance of 52km was refurbished by others and
was therefore reduced from the Bank scope of
works.
Substation upgraded
On track

Development objectives have been achieved. None

of the outcomes are impacted by the
delayed upgrade of Khukhune substation. The
Number of
0.000 1.00 1.000 0.00% 0.00% tender for Khukhune substation upgrade was
substations (num)
relaunched in June 2023 and the bid submission
date was extended to 19 October 2023.
The tender is currently in evaluation and
completion scheduled for end September 2025.
The Project Closing date is scheduled for end
December 2025.
New transmission line constructed
On track

Development objectives have been achieved. None

of the outcomes are impacted by the
delayed upgrade of Khukhune substation. The
kms of 132kV line
0.000 8.00 8.000 0.00% 0.00% tender for Khukhune substation upgrade was
(km)
relaunched in June 2023 and the bid submission
date was extended to 19 October 2023.
The tender is currently in evaluation and
completion scheduled for end September 2025.
The Project Closing date is scheduled for end
December 2025.
Studies completed
On track

Number of studies
1.000 2.00 2.000 50.00% 50.00% Completed. The other study was removed from
(num)
scope since the Department of Energy was
undertaking a similar study with support from the
Italian Government.
Employment created
On track
Number of direct
jobs on the project 173.000 140.00 140.000 123.57% 123.57%
(num) The number of jobs created will be assessed at
completion.
On track
Number of direct
jobs on the project
13.290 10.00 10.000 132.90% 132.90%
- of which women
The number of jobs created will be assessed at
(per)
completion.
Output rating
Rating on project Performance
Summary of key findings
outputs rating
 Current Previous All outputs except those associated with Khukhune substation upgrade have been
completed. The delayed outputs require additional financing and the Government
has
4 4 submitted a request to the Bank for additional financing in February 2024. The
additional
financing operation is likely to be considered by the Board in Q1 of 2025.

Development objective (DO) rating

Progress towards development objective

Performance rating Summary of key findings
Current Previous Development objectives have been achieved. None of the
outcomes are impacted by the
delayed upgrade of Khukhune substation. The tender for
Khukhune substation upgrade was
Rating on Development relaunched in June 2023 and the bid submission date was
Objective (DO) highly highly extended to 19 October 2023.
satisfactory satisfactory The tender is currently in evaluation and contract award
expected in Q1 2025 after approval
of the Additional Financing operation for financing the funding
shortfall for Khukhune
substation upgrade.

Additional and/or unanticipated outcomes/outputs (optional)

Indicator Baseline End target Most recent value

11.12.2024-06:34:55-PRD