Document of The World Bank

FOR OFFICIAL USE ONLY

Report No: 89594-AFR

INTERNATIONAL DEVELOPMENT ASSOCIATION

PROJECT APPRAISAL DOCUMENT

ON A PROPOSED CREDIT IN THE AMOUNT OF SDR 33.4 MILLION (US$47 MILLION EQUIVALENT) TO THE REPUBLIC OF THE GAMBIA

A PROPOSED CREDIT IN THE AMOUNT OF SDR 21.4 MILLION (US$30 MILLION

EQUIVALENT) TO THE REPUBLIC OF GUINEA

A PROPOSED CREDIT IN THE AMOUNT OF SDR 55.5 MILLION (US$78 MILLION EQUIVALENT) TO THE REPUBLIC OF GUINEA-BISSAU

A PROPOSED CREDIT IN THE AMOUNT OF SDR 32 MILLION (US$45 MILLION

EQUIVALENT) TO THE REPUBLIC OF SENEGAL

FOR THE

OMVG INTERCONNECTION PROJECT

April 6, 2015

Energy and Extractives Global Practice Africa Region

This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

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CURRENCY EQUIVALENTS

(Exchange Rate Effective February 28, 2015)

Currency Unit = US$ EUR 0.88 = US$1

US$1 = SDR 0.7105351

FISCAL YEAR January 1 December 31

ABBREVIATIONS AND ACRONYMS

AfDB African Development Bank AFD Agence Franaise de dveloppement (French Development Agency) AMA Asset Management Agency (Agence de gestion des Ouvrages communs de

lOMVG) ATMO Assistance Technique la Matrise dOuvrage dlgue CESMP Contractor Environmental and Social Management Plan CLSG Cote dIvoire - Liberia - Sierra Leone - Guinea interconnector CQS Consultants Qualifications CRSE Commission de Rgulation du Secteur de lElectricit (Electricity Sector

Regulatory Commission) DSE Environmental and Social Management Department ECOWAS Economic Community Of West African States EDG Electricit de Guine (Electricity of Guinea) EEP ECOWAS Energy Protocol EHS Environmental, Health and Safety EIB European Investment Bank EIRR Economic Internal Rate of Return ESIA Environmental and Social Impact Analysis ESMP Environmental and Social Management Plan FIRR Financial Internal Rate of Return FM Financial Management Genco Generation Company GDP Gross Domestic Product CGFO Ground wires containing optic fibers GHG Greenhouse Gas GRS Grievance Redress Service GW Giga Watt GWh Giga Watt hour HFO Heavy Fuel Oil HV High Voltage IBRD International Bank for Reconstruction and Development ICB International Competitive Bidding IDA International Development Agency

IFR Interim Financial Report IPP Independent Power Producer ISDB Islamic Development Bank KF The Kuwait Fund KfW Kreditanstalt fr Wiederaufbau (Reconstruction Credit Institute, Germany) kV Kilo Volt KVA Kilovolt Ampere kWh Kilo Watt Hour LMCC Local Monitoring and Coordination Committee M&E Monitoring and Evaluation MW Mega Watt NGO Non-Government Organization NCB National Competitive Bidding NMC National Monitoring Committee NPV Net Present Value OMVG Organisation pour la Mise en Valeur du fleuve Gambie (The Gambia River

Basin Development Organization) OMVS Organisation pour la Mise en Valeur du fleuve Sngal (Senegal River Basin

Development Organization) O&M Operations and Maintenance PAP Project Affected Persons PMU Project Management Unit PPA Power Purchase Agreement PPP Public Private Partnership PRG Partial Risk Guarantee QCBS Quality and Cost-Based Selection RAP Resettlement Action Plan REIs Requests for Expressions of Interest RFP Request for Proposals RPF Resettlement Policy Framework SBD Standard Bidding Documents SEC Special Establishment Convention (Convention portant cration de lAgence des

Ouvrages communs de lOMVG) SSA Sub-Saharan Africa TA Technical Assistance TSA Transmission Service Agreement RoW Right of Way WADB West African Development Bank WAPP West African Power Pool

Vice President: Makhtar Diop Country Director: Colin Bruce

Senior Global Practice Director: Anita Marangoly George Practice Manager: Meike van Ginneken

Task Team Leaders: Pedro E. Sanchez and Chris Trimble

AFRICA OMVG INTERCONNECTION PROJECT

TABLE OF CONTENTS

Page

I. STRATEGIC CONTEXT ...............................................................................................13 A. Regional and Country Context.................................................................................... 14

B. Sector Context ............................................................................................................. 15

C. Higher Level Objectives to which the Project Contributes ........................................ 20

II. PROJECT DEVELOPMENT OBJECTIVES ..............................................................21 A. PDO............................................................................................................................. 21

Project Beneficiaries ......................................................................................................... 21

PDO Level Results Indicators ........................................................................................... 21

III. PROJECT DESCRIPTION ............................................................................................22 A. Project Components .................................................................................................... 22

B. Project Financing ........................................................................................................ 24

C. Lessons Learned and Reflected in the Project Design ................................................ 25

IV. IMPLEMENTATION .....................................................................................................28 A. Institutional and Implementation Arrangements ........................................................ 28

B. Results Monitoring and Evaluation ............................................................................ 31

C. Sustainability............................................................................................................... 32

V. KEY RISKS AND MITIGATION MEASURES ..........................................................32 A. Overall Risk Rating and Explanation of Key Risks.................................................... 32

VI. APPRAISAL SUMMARY ..............................................................................................34 A. Economic and Financial Analysis ............................................................................... 34

B. Technical ..................................................................................................................... 36

C. Financial Management ................................................................................................ 36

D. Procurement ................................................................................................................ 37

E. Social and Environmental (including Safeguards) ..................................................... 37

Annex 1: Results Framework .....................................................................................................40

Annex 2: Detailed Project Description .......................................................................................45

Annex 3: Implementation Arrangements ..................................................................................52

Annex 4: Implementation Support Plan ....................................................................................70

Annex 5: Economic and Financial Analysis ..............................................................................72

Annex 5: Africa Map ...................................................................................................................91

. PAD DATA SHEET

Africa OMVG Interconnection Project

PROJECT APPRAISAL DOCUMENT .

AFRICA

Report No.: 89594-AFR

Basic Information Project ID EA Category Team Leader P146830 B - Partial Assessment Pedro E. Sanchez & Chris Trimble Lending Instrument Fragile and/or Capacity Constraints [ ] Investment Project Financing Financial Intermediaries [ ] Series of Projects [ ] Project Implementation Start Date Project Implementation End Date 30-Apr-2015 30-Jun-2022 Expected Effectiveness Date Expected Closing Date 30-Aug-2015 31-Dec-2022 Joint International Finance Corporation (IFC)

No

Practice Manager/Manager Senior Global Practice Director Country Director Regional Vice President

Meike van Ginneken Anita Marangoly George Colin Bruce Makhtar Diop

The Republic of The Gambia, The Republic of Guinea, The Republic of Guinea-Bissau, The Republic of

Senegal Responsible Agency: OMVG Contact: Justino Vieira Title: Executive Secretary Telephone No.: +221338895101 Email: jvanaksa@omvg.sn

Project Financing Data(in USD Million) [ ] Loan [ ] IDA Grant [ ] Guarantee

mailto:jvanaksa@omvg.sn

[ X ] Credit [ ] Grant [ ] Other Total Project Cost: 696.00 Total Bank Financing: 200.00 Financing Gap: 0.00

Financing Source Amount BORROWER/RECIPIENT 16.00 International Development Association (IDA) 200.00 African Development Bank 134.00 European Investment Bank 106.00 France Government. of [Ministry of Foreign Affairs (MOFA) and Agence Franaise de Dveloppement (AFD) (C2D)]

51.80

Islamic Development Ba